FC O'Gara June 2020.qxp_FC December 06 19/05/2020 12:51 Page 1
Volume 24 Issue 6
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ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
THIS MONTH Jets Comparison: Gulfstream G550 vs Global 6000 vs Falcon 8X Buying High Time Jets: Value or a Risk? Cabin Connectivity: Getting it Right First Time www.AVBUYER.com
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OF FOSTERING CONFIDENCE
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AIRBUS A318 ELITE 2010 (DELIVERED 2011) / SN 4211
DASSAULT FALCON 2000LX 2010 / SN 196
AIRBUS A319 VIP 2008 (DELIVERED 2011) / SN 3542
GULFSTREAM 650ER 2014 / SN 6100
BOEING BBJ 2 2018 / SN 42510 ASKING PRICE / USD $75.00M
GULFSTREAM 650 2014 / SN 6095
DASSAULT FALCON 7X 2014 / SN 251
GULFSTREAM 550 2016
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BOMBARDIER GLOBAL XRS 2008 / SN 9252
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Editor Welcome.qxp_JMesingerNov06 19/05/2020 15:36 Page 1
Guest Editor’s VIEWPOINT
Kurt Edwards
Restarting Global Business Aviation Travel usiness aircraft have continued to operate around the world during the pandemic, although in significantly reduced numbers and to contribute to the socio-economic fabric of society. The International Business Aviation Council (IBAC) and its member associations around the world are focused on efforts to facilitate current operations and to prepare for the recovery of air transport operations as soon as practicable. At the moment, most business aircraft missions include transportation of medical personnel and essential medical supplies, emergency medical flights, and repatriation flights. To facilitate and expand these operations, IBAC and its members have called on governments around the world to be more flexible with travel restrictions, transparent and consistent in their published entry and exit requirements, and willing to suspend travel bans if flights meet World Health Organization (WHO) requirements. We also recognize the need for alleviation of license, certificate, and approval validities, given that socialdistancing and travel restrictions make training and in-person meetings, and visits required for renewals and continued approvals, difficult. IBAC has urged the International Civil Aviation Organization (ICAO) to urgently develop recommendations for such alleviations at the global level, and to encourage their mutual acceptance by Member States.
B
Framework to Resume Operations Efforts at ICAO to develop a framework for the resumption of air transport operations in a post-pandemic world have begun. IBAC believes that the restart of aviation operations should be done collaboratively and not at the cost of any aviation sector. Recognizing that all participants in the air transport sector should be able to start operations at soon as practical is fundamental to the system being able to function in as robust a manner as possible, and to restart commerce around the world. In Business Aviation, this includes the operators, airports (large commercial, regional and local), Fixed-Base Operators and ground handlers, maintenance organizations, fuel suppliers, manufacturers, caterers, and other service providers.
6 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Business Aviation will likely be the first sector to start flying again in meaningful numbers, directly connecting remote locations and helping to restart international commerce. The relatively small size of business aircraft allows for quick, thorough cleanings; low-passenger density aboard allows for easier social distancing; and these aircraft can undertake technical stops with minimal interaction, again allowing for social distancing between those on board and those on the ground.
New Protective Measures To restart the system, we are going to see new measures put in place to protect the health of passengers, crew, and ground staff. Any new measures should be supported by data, science, and appropriate risk assessments. The measures should be performance-based or outcome-driven and proportional to scale and complexity, allowing for flexible implementation around the world. We have an opportunity to build a more resilient, postpandemic aviation system in the longer term. The global air transport system is comprised of a diverse range of sectors, all working toward the same objective—safe, secure, sustainable air transport around the world—albeit from different niches. In this regard, IBAC is focused on advancing Business Aviation and its unique point of view regarding effectively managing the safe, secure, and sustainable transport of passengers and goods. At IBAC, our vision is to keep business flying around the world, accelerating economic growth, development, and environmental sustainability across all regions. Together we will restart our industry and see it grow stronger than ever before. More information from www.ibac.org ❙
As Director General of the International Business Aviation Council (IBAC), Kurt Edwards advocates for Business Aviation at the International Civil Aviation Organization, a specialized agency of the UN, and through IBAC’s 14 Business Aviation member associations, located across six continents. He is assisted by a team of experienced aviation professionals that promote and manage the industry-leading global codes of best safety practices: IS-BAO and IS-BAH.
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Contents June.qxp 22/05/2020 08:27 Page 1
EDITORIAL Commissioning Editor Matthew Harris +44 (0)20 8939 7722 editorial@avbuyer.com
Consulting Editor Sean O’Farrell +44 (0)20 8255 4000 sean@avbuyer.com
13
Guest Editor
Vol.24 Issue 6
Kurt Edwards, IBAC
Market Indicators
Trends and observations from the leading analysts…
Market Insights
38
Where Could BizAv Opportunities Lie for Private Equity Firms?
42
ADVERTISING Steve Champness - Publisher Americas 770 769 6872 Steve@avbuyer.com
Where Will the BizAv Market Return First? (Janine Iannarelli Interview)
48
How to Read the International Sales & Charter Markets (Edward Queffelec Interview)
Lee McLoughlin - Account Director US Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 lee@avbuyer.com
54 58
Getting Value from a COVID-19 Affected BizJet Market
Matt Chappell - Account Manager US & Canada Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 MattC@avbuyer.com
60
OGARAJETS Anniversary Profile
Lise Margin - Account Manager US Aircraft Sales +1- 703 818 1024 lise@avbuyer.com Maria Brabec - Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com UK Head Office +44 (0)208 549 9508 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0)20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 sue@avbuyer.com AVBUYER.COM Jayne Jackson jayne@avbuyer.com Emma Davey emma@avbuyer.com MANAGING DIRECTOR John Brennan +44 (0)20 8255 4229 john@avbuyer.com
64 72 76 84
Buying & Selling
Buying High Time Jets: Value or a Risk?
Finance
Buying a Jet: What are the Financing Sources Available?
Jet Comparision
Gulfstream G550 vs Global 6000 vs Falcon 8X
Aircraft Price Guide
Medium Jet Aircraft Values
Flight Department Management
How to Keep a Flight Department’s Value in Difficult Times
88
Trip Planning: What Else to Consider With COVID-19
92
Avionics What’s the Latest on Surveillance in Aviation?
100
Connectivity Cabin Connectivity: Getting it Right First Time!
106
What’s Next for Business Aircraft Cabin Connectivity?
112
What are the Costs of Your Cabin Connectivity?
116
How to Keep Cabin Connectivity Affordable
122
OEM News and Industry Appointments
Community News
125
Products & Services
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Showcases
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Advertisers Index
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Aircraft for Sale Index
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2020
Contents
Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com
6
Next Month
• Aircraft Financing: What’s in the Small Print? • Tips for Buying High-Time Jets • BizAv Engine Focus AVBUYER MAGAZINE R Vol 24 Issue 6 2020 R
7
GLOBAL XRS
GLOBAL EXPRESS
SN 9391
S N 9093
GULFSTREAM G550
S N 53 7 1
GULFSTREAM G200
SN 226
GULFSTREAM G200 S N
GULFSTREAM G200
SN 066
GULFSTREAM IVSP
GULFSTREAM IVSP
S N 13 7 9
GULFSTREAM G550
FALCON 8X
S N 5 1 45
2 03
S N 1 42 0
S N 406
INFO@AVPROJETS.COM WWW.AVPROJETS.COM 900 Bestgate Road, Ste. 412 l Annapolis, MD 21401 l (410) 573-1515
FALCON 7X
FALCON 900EXy
FALCON 50EX
FALCON 50
FALCON 900EXy
S N 19 2
S N 18 1
SN 309
S N 159
CHALLENGER 300
S N 2 0 2 49
SN 135
FALCON 2000
S N 098
FALCON 50 S N
1 87
CHALLENGER 350
S N 2 05 2 2
CHALLENGER 300
S N 2 01 1 9
INFO@AVPROJETS.COM WWW.AVPROJETS.COM 900 Bestgate Road, Ste. 412 l Annapolis, MD 21401 l (410) 573-1515
CHALLENGER 300
S N 2 0 10 2
CHALLENGER 300
S N 2 002 9
CHALLENGER 605
S N 58 6 0
CHALLENGER 604
S N 5 5 04
CHALLENGER 601-3A
S N 5116
HAWKER 900XP S N
H A -65
HAWKER 800XPi
S N 2 58 6 9 9
HAWKER 800XP
S N 2 5 8672
HAWKER 800XP
S N 2 58 57 8
HAWKER 800XP
S N 2 5 85 7 2
INFO@AVPROJETS.COM WWW.AVPROJETS.COM 900 Bestgate Road, Ste. 412 l Annapolis, MD 21401 l (410) 573-1515
CITATION SOVEREIGN
CITATION X
LEARJET 45
S N 2 55
CITATION SOVEREIGN
S N 16 1
LEARJET 45XR
S N 3 87
S N 10 4
LEARJET 60 S N
1 78
S N 03 1
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Testimonial February front section.qxp_Layout 1 22/01/2020 16:05 Page 1
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MARKET INDICATORS
Business Aviation Market Overview What are the latest developments in the Business Aviation market? Are there any signs for hope amid the COVID-19 fall-out? Rollie Vincent, editor, Market Indicators explores the industry’s landscape… s an industry, Business Aviation has its fair share of optimists; people who can see both the forest and the trees and recognize that this might be a good place to carve out a runway, build an FBO or MRO facility, and hammer an ‘Open for Business’ sign into the newly planted lawn. Enter the COVID-19 crisis, which has slammed all forms of air transport and travel in a way that challenges even the most optimistic people to reach out for an ice-cold beer (or something a little stronger). With the first waves of the pandemic now passing, the impacts on commercial air transport are particularly staggering. Two of Europe and the world’s largest hubs, at London Heathrow (LHR) and Frankfurt (FRA), reported that May 2020 passenger traffic was down 97% Year-over-Year (YoY).
A
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The only good thing about that level of disruption is that it can only get about 3% worse. Looking for some good news amongst the destruction, air cargo tonnage at FRA was down only 21% YoY in April 2020, mostly due to the dramatic reduction in belly freight capacity on allpassenger airliners. Businesses and individuals with a need to ship goods continue to rely on air transport as a vital lifeline to sustain their operations and move time-sensitive equipment and materials.
What’s Good on This Spacecraft?
Fifty years ago, when hope was at a low point and the status of the Apollo 13 moonshot mission was at extreme risk of catastrophic failure, Flight Director Gene Kranz said, “What do we got on the spacecraft that’s good?”
page 16
AVBUYER MAGAZINE Vol 24 Issue 6 2020
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O'GaraJets June.qxp_Layout 1 18/05/2020 12:48 Page 1
AIRCRAFT FOR SALE
GULFSTREAM G550 SERIAL NUMBER 5028 ARCS Premium Completed Fresh 96/192 Month Insp. in June 2020 CB 190 Horizontal Stab Insp. in June 2020 JSSI 100% Engine & APU Coverage Enhanced Navigation & Synthethic Vision 14 Passenger Cabin Paint Slot Reserved & Design Customizable
GULFSTREAM G550 SN 5199 Excellent Two Owner, U.S. Pedigree RollsRoyce Corporate Care Engine Coverage Triple FMS w/ WAAS/LPV
GULFSTREAM G280 SN 2028 Aircell GoGo Biz WiFi CabinView Cabin System w/ Dual Monitors Honeywell MSP Engines & APU
FA LCO N 2 0 0 0 E Xy S N 2 7 Pro Line 21 w/ Synthetic Vision System FANS 1A+ / CPDLC / ADS-B Out 1C Insp & Landing Gear Overhaul June 2016
CHALLENGER 601 SN 5005 Fresh Pre-Purchase Inspection - March 2020 GE OnPoint Engines / Honeywell MSP APU WAAS / LPV / ADS-B Out
O'GaraJets June.qxp_Layout 1 18/05/2020 12:48 Page 2
HAWKER 900XP SN HA-151 MSP Gold Engines & APU CASP Avionics Plan Flightdocs Maintenance Tracking
HAWKER 800XPi SN 258732 Low Total Time Since New ADS-B Out Compliant Like New Paint - 2016 by Textron
PHENOM 100EV SN 408 Manufacturer Warranties Remaining One U.S. Owner Since New Less than 200 Hours Since New
PHENOM 100 SN 151 10-Year Inspections Completed Fresh Landing Gear Overhaul ADS-B Out Compliant
C I TAT I O N J E T S N 5 2 5 - 0 2 78 Jet Performance At Turboprop Costs Two U.S. Ownership Since New Engines On Tap Elite
C I TAT I O N E XC E L S N 5 6 0 - 5 1 3 9 Two U.S. Ownership Since New ESP Gold Lite Engines Honeywell MSP APU Coverage
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MarketIndicators JUNE20.qxp_Layout 1 20/05/2020 08:03 Page 2
MARKET INDICATORS
He was, of course, referring to the cacophony of divergent indicators and opinions on the status of a crippled spaceship that had suffered an explosion and was venting life-sustaining oxygen into the vacuum of space. While the COVID-19 crisis is not as life-threatening to many, and pales (at least so far) in comparison to the impact to the Spanish flu pandemic of 1918-19, it is the most alarming health – and now economic crisis that modern society has faced. So, what’s good on this spacecraft? What resources and indicators do we have access to that provide some light to navigate by? We have access to the internet, desktop computing, and mobile devices that enable us to be connected, share experiences, data, and insights, and stay informed. Even if we can’t immediately collaborate and conduct work as we did before, we can at least develop workarounds to stay connected and do as much business as we can. While pre-buy inspections, face-to-face sales meetings, and aircraft delivery acceptances have become next to impossible, there is evidence that at least some elements of the market are rebounding, if only slowly. Near real-time data on business aircraft flight activity, while down sharply in April 2020 YoY, actually began to show signs of an increase after a disastrous period from mid-March through mid-April (see ARGUS and WingX Advance reports on p20). With many international borders in clamp-down mode, domestic traffic and Turboprop/Light Jet flight activity have been holding up the best, in what is some muchneeded good news for segments of the market that were not as buoyant in the industry’s long recovery from the 2007-2008 downturn and global financial crisis.
No Rush for the Exit
So far in 2020, there’s no evidence of aircraft owners rushing for the exits, with the ‘for-sale’ business aircraft up only modestly so far to ~10.3% of the fleet, according to AMSTAT (see Brian Foley’s report on p24). Aircraft transaction activity for both new and pre-owned aircraft has been stymied, of course, as sellers and buyers can no longer easily meet. Demonstration flights are 16 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
AVBUYER.com
contributing near-zero emissions (and burning little fuel), and many parties simply have more important priorities to manage, including balancing demand and supply in their businesses, keeping people employed, and ensuring that the lights stay on to the best extent possible. Impressive levels of government intervention across vast stretches of the world are providing many businesses and their employees with lifelines to navigate the darkest days of this pandemic (and the lockdown/social distancing policies necessary to curb its most lethal impacts). Pre-owned business jet inventory climbed from 11.1% of the in-service fleet at the end of October 2007 to 14.9% one year later (at the end of September and in the immediate aftermath of the failure of Lehman Brothers), according to JETNET databases. Inventory then peaked six months later near 18.6%, staying at this elevated level through mid-2009 before beginning a long, slow decline over the next nine years. Pre-owned jet inventory climbed 2%, from 14.3% to 16.3%, over a 60-day period from the end of August 2008 through the end of October. Yet over the 60-day period from the end of February to the end of April 2020, there is no evidence of such a sharp market reaction to COVID-19, with overall pre-owned jet inventory climbing just 0.4%. Perhaps most importantly, the amount of young inventory – aircraft delivered within the past 10 years – has remained virtually unchanged. Although these are still early days in the COVID-19 battle – and we remain vigilant – this is indeed some good news from the market! MI www.navigating360.com page 20
With 35+ years in the aviation industry, Rolland Vincent, president, Rolland Vincent Associates (RVA) has served as a trusted consultant at Textron, Bombardier and ICAO in various roles in strategy, marketing, business development, aviation economics and aviation statistics. Identifying a need for enhanced insights into the state of the business aviation marketplace, Rolland Vincent Associates partnered with JETNET in 2010 to create JETNET iQ. Mr Vincent is chair of the Transportation Research Board’s Standing Committee on Light Commercial and General Aviation, and is president, RVA, a consultancy focused on aviation market research, strategy, and forecasting. Contact him via rvincent@rollandvincent.com
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MARKET INDICATORS
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Flight Activity – North America COVID-19 “crushed” North American Business Aviation activity in April, according to ARGUS TRAQPak’s latest report. Activity for the entire month fell short of the single worst day for all of 2019. TRAQPak’s review of Year-over-Year (YoY) flight activity (April 2020 vs. April 2019) indicates that April 2020 recorded a historic decline of 71.5%. By operational category, unsurprisingly all were red with Fractional activity posting the largest yearly decrease, compared to April 2019. Part 91 activity saw a monthly drop more in line with the industry average, while Part 135 flight activity recorded the smallest (but still substantial) decline. The aircraft categories were also red for the month, with large jets recording the largest yearly drop.
APRIL 2020 vs APRIL 2019 North America Flight Activity
PART 91
PART 135
TURBOPROP
-66.1%
-54.9%
-80.9%
-62.1%
LIGHT JET
-69.1%
-68.5%
-78.1%
-70.1%
MID-SIZE JET
-79.5%
-73.5%
-80.4%
-77.8%
LARGE CABIN JET
ALL
Month-Over-Month
-80.1% -72.3%
-79.7%
FRACTIONAL
-84.4%
-66.9%
-80.3%
ALL
-80.3% -71.5%
APRIL 2020 vs MARCH 2020
April’s Business Aviation flight activity also posted a substantial Month-over-Month decrease to finish down 59% compared to March 2020. Results by operational category were all negative for the month, with Fractional flight activity posting the largest monthly decrease. The aircraft categories were also red for the month, with large jets posting the largest monthly decline.
May Forecast
North America Flight Activity
PART 91
PART 135
TURBOPROP
-45.8%
-43.6%
-65.5%
-45.3%
LIGHT JET
-55.3%
-59.7%
-70.6%
-58.9%
MID-SIZE JET
-65.6%
-66.7%
-72.9%
-68.0%
LARGE CABIN JET
-67.0%
-71.7%
-77.5%
-69.8%
ALL
-56.2%
-57.7%
-72.3%
-59.0%
Looking ahead, TRAQPak analysts estimate there will be a 43.9% decrease in overall flight activity YoY in May 2020. MI www.argus.aero
FRACTIONAL
ALL
Flight Activity – Worldwide According to WingX Advance, global BizAv activity was down by 68% for the period April 1 through May 5. The key North American and European markets declined by 69% and 70% respectively, compared to the same dates in 2019. Here’s the bigger picture... The picture was slightly better for Asia, which WingX notes was 67% below normal for the period, while flight activity out of South America was 64% down. Flights to, from and within the Oceania region were at 48% of normal activity.
Encouraging Signs
The moving seven-day average activity has steadily improved on a global basis since mid-April, from a low point of 3,600 flights per day to 5,200 flights a day in May (or a more than 40% improvement). This recovery in Business Aviation activity is far more perceptible than in scheduled airline activity. Whereas Business Aviation activity comprised about 15% of scheduled sectors at the start of March, it now represents around 33%. The North America region is contributing most to the recovery trend in Business Aviation, but Europe is still very flat.
flights down by 63% (by comparison France and the UK are down by ~75%). Other than flights between the US and Canada, almost all activity is domestic. “Continued improvement in the seven-day moving average activity since mid-April is encouraging, even if activity trends are still running at least 60% below normal in May so far,” summarized WingX’s managing director, Richard Koe. “It’s also clear that the current momentum in traffic is being operated by the Turboprop market, with some increment in Light Jet flying but with most of the Large Cabin fleet inactive. “With Tromsø ranking as the third busiest airport for Business Aviation in Europe, we are clearly a long way from being a normal market at present.” page 24 MI www.wingx-advance.com
Business Aviation Flight Activity – Busiest Countries
After the US and Canada, the third busiest country is Australia, where flight activity, mainly turboprop, is only 37% below normal. Germany is the busiest European market, with 20 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
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Freestream June.qxp 18/05/2020 12:49 Page 1
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2006 Gulfstream G450 SN 4049
2005 Gulfstream G550 SN 5072
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Brian Foley: Why Owners Aren’t Dumping Their Jets This time, the situation is markedly different. “The economy was going strong prior to the pandemic; lending standards were stricter; the stock market hasn’t been in continual freefall; and there isn’t the fear of a banking collapse,” Foley says. “This has given owners the fortitude to stand pat and look beyond the current environment to a presumably brighter financial future, at least so far. But that’s not their only reason for not selling…” So far, you can’t pry private jets from owners’ hands despite crazy economic gyrations that would normally spook them into selling, says aviation analyst Brian Foley. The bizjet fleet has essentially been sitting idle, awaiting lockdown orders to be lifted… What we’re seeing today is in stunning contrast to the financial crisis of 20072008 when business aircraft owners “stampeded for the exits”, notes Foley. Before that, 10-12% of the fleet was typically for sale at any given time. As the floor of the financial markets fell out, it quickly ballooned to 18%, meaning that nearly 1 in 5 of all the world’s business jets was ‘for sale’. Not so this time around. “Thus far, despite stock markets again plunging due to the worldwide pandemic, the number of business jets on the used market has remained remarkably steady,” Foley notes. According to AMSTAT, roughly 9.8% of the world fleet was for sale pre-virus. “Today, after more than a month of
economic whipsawing and uncertainty, that number has blipped up to just 10.3% - effectively unchanged and still on the low end of used aircraft supply even in normal times,” he adds. This stark contrast comes with a few plausible explanations, Foley says. •
•
•
•
First, the 2007-08 dip revealed a fragile financial system that sent irreparable shockwaves through markets, corporate balance sheets and personal portfolios. This was coupled with loose lending terms allowing aircraft to be purchased by those without solid finances to keep making payments. The infamous event of the auto executives flying their private jets to Washington, cap in hand for a bailout, had others running for PR cover. Add to that an economy that was already on a downward trajectory and owners could no longer afford or justify keeping their corporate jet.
The Safety Bonus of BizJets
As air travel begins to resume, those who can afford to avoid the public airport crowds and fly privately will do so. “One typically travels on a private jet, at most, with a couple of people they know, handily beating the alternative of being trapped for hours in an airliner with hundreds of strangers of unknown health pedigrees.” For this reason, Foley argues, it’s assumed that the Business Aviation industry will recover more quickly than the airlines. And while new business jet sales aren’t expected to surge due to the large capital commitment, “it is likely that charter and other non-ownership business models will see an uptick from well-heeled newcomers willing to pay a premium to avoid the airliner petri dish experience”, Foley predicts. “While many will eventually return to the scheduled airlines once the hysteria subsides, a few will remain in the folds of private aviation having sampled the wares,” he concludes. MI www.brifo.com
JETNET Q1 2020 Pre-Owned Aircraft Sales Analysis Comparing Q1 2020 to Q1 2019, inventories of aircraft for sale were mostly up across the board, but only slightly, increasing from 5.5% last year to 5.6% across the business aircraft, helicopter and commercial airline sectors… Total sale transactions for business aircraft, helicopters and commercial airlines were down 337 units (15.4%) for all the markets reported in Q1 2020 versus Q1 2019. Specifically: •
The fleet ‘for sale’ percentage for business jets was 9.9% for Q1 2020, an increase from 9.3% in Q1 2019. Business jet full
24 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
• •
sale transactions showed a 5.8% decrease and were taking, on average, 13 days longer to sell in Q1 2020. By comparison, business turboprops recorded a decrease of 13.8% in terms of sale transactions, but were selling in less time (51 days), compared to Q1 2019. Turbine helicopters saw a large decrease in sale transactions in the Q1 comparisons (-34.5%). However, they took 31 fewer days to sell in Q1 2020.
MI www.jetnet.com
page 28
www.AVBUYER.com
Hatt & Associates June.qxp_Layout 1 18/05/2020 12:50 Page 1
2007 Falcon 2000EX EASy II
S/N: N331HA Reg: 117 5,458.4 hours since new 3,223 landings Engines enrolled on ESP Gold, APU enrolled on MSP Gold Next Gen Avionics FANS 1/A,
CPDLC, ADSB-Out, TCAS 7.1 Interior Refurb completed by West Star - Grand Junction March 2019 Fresh Paint completed by Stevens Aviation - April 2020
Make Offer
E, F, and G Insp. Completed in September2016 by Standard Aero Teflon Coating completed in 2017
Unique in Experience, Global in Scope. 2016 King Air 350i S/N: FL-1040 Asking Price: Make Offer 992.9 hours since new ADS-B Out Aircell ATG-5000 WiFi Pre-Buy Assurance Program completed April 2019 by Textron - Tampa
2009 Hawker 4000 S/N: RC-24. Reg: N308HQ Asking Price: Make Offer 1,930.4 hours since new Engines enrolled on ESP Gold and APU enrolled on MSP Gold Next Gen Avionics ADS-B Out, TCAS 7.1 Delivered with fresh Pre-Buy from MCAS in Wichita, KS Paint touch-up January 2020
1-(303) 790-1050 hattaviation.com
2017 Gulfstream G280 S/N: 2107. Reg: N280FR 472.1 Hours since New Engines Enrolled on MSP Planeview280 Cockpit FANS / CPDLC / ADSB Out Aircraft will be delivered with Fresh Gulfstream ARCS Pre-Buy Aircraft will be delivered with Paint Stripes from Steven Aviation
Hatt & Associates: Global Aviation Sales Acquisitions
Brokerages
Consulting
Pre-Buy Management
Contract/Legal Services
Scottsdale | Denver | Breckenridge | Wichita | Dubai | Calgary | Miami
+41 22 787 08 77
AIRBUS A380-800
TRADING.GENEVA@SPARFELL.AERO
Two A380-800s, Ready for Head-of-State VVIP Conversion.
TRADING.USA@SPARFELL.AERO
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WWW.SPARFELL.AERO
2010 GULFSTREAM G550 S/N 5303
2012 LINEAGE 1000 S/N 317
2’300 TT, Engines & APU on Programs, 2017 Paint & Interior, Recent 96 Months.
1’840 TT, Engines on GE Onpoint Program, WiFi, 19 Passengers Configuration.
Make Offer
Make Offer
DEAL PENDING
2003 HAWKER 800XP S/N 258612
2007 LEGACY 600 S/N 995
3’995 TT, Engines on MSP Gold, 8 Pax + Belt Lav., G-Check + ADS-B Completed in January 2020.
4’779 TT, Recent 144 Mths/LDG OVH/ ADS-B/Cabin Touch-up, EASA, EEC, RRCC Engines Program, Wi-Fi, 13 Pax.
Make Offer
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2014 CITATION CJ4 OFF-MARKET
2014 GLOBAL 6000 OFF-MARKET
3’103 TT, ADS-B Out v2, T-CAS 7.1, Airframe & Engines on Programs,EASA, 9 Pax, WAAS, LPV, One Owner since New.
1’430 TT, T-CAS 7.1, Airframe & Engines on Programs, EASA, 13 Pax, WAAS, LPV, High-Speed Internet, One Owner Since New
Make Offer
Make Offer
CHARTER - MANAGEMENT - SALES & ACQUISITIONS - LEASING - DEFENCE - DESIGN
NEW HELICOPTER ON THE MARKET
2008 A109E POWER S/N 11728 Engines on JSSI 100%, Only 295 Hours TT, Recent Paint, EASA Compliant, 6+1 Passengers Configuration, VIP Interior Make Offer
2010 A109S GRAND S/N 22162 1’735 TT, New int. & paint 2018, 5+1 Passengers Configuration, Single Pilot IFR Approved, Strobe Lights, Aft Cabin Mini Bar, SB109S-085 Compliant Make Offer
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MarketIndicators JUNE20.qxp_Layout 1 19/05/2020 17:46 Page 5
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MARKET INDICATORS
In-Service Aircraft Values & Maintenance Condition The number of aircraft transactions decreased substantially during April due to the COVID-19 Pandemic, concurrently resulting in an increase of assets listed for sale. Here’s Asset Insight’s analysis for the month… Asset Insight’s April 30, 2020 market analysis of 134 fixed-wing models uncovered a 4.1% inventory fleet increase over March, and a year-to-date (YTD) increase to the global tracked fleet of 5.8%. All four groups once again contributed to the increase, with Medium Jets leading the way through a 5.9% rise, followed by Turboprops (5.0%), Large Jets (4.1%), and Small Jets (1.7%).
Tracked Aircraft Values
Average Ask Price for aircraft in Asset Insight’s tracked fleet decreased 1.6% in March, fueled by price decreases in the Large Jet and Turboprop categories (3.8% and 2.5%, respectively). Medium Jets posted a 5.1% price increase in April, while the Small Jet ask price increased 3.3%.
Inventory Fleet Maintenance Condition
The ‘for sale’ fleet posted a 12-month best (highest) asset quality rating for a second consecutive month in April, with near-term maintenance costs running slightly below the 12-month average. Asset Insight’s tracked inventory registered the following figures: • Quality Rating: The ‘for sale’ fleet’s Quality Rating has remained within the ‘Excellent’ range this year and, during April, set a 12month high (best) figure of 5.311 (comparing to March’s 5.297) on Asset Insight’s scale of -2.5 to 10. • Maintenance Exposure: Following a spike during March, Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) decreased (improved) 1.5% to $1.378m. This means upcoming maintenance for the current fleet mix would be a little less expensive to complete. April’s figure was also lower (better) than the $1.39m 12-month average.
Maintenance Exposure to Ask Price (ETP) Ratio
The ETP Ratio is a useful indicator of an aircraft’s marketability. It’s computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During Q1 2020, assets whose ETP Ratios were 40% or more were listed for sale nearly 68% longer (on average) than aircraft whose Ratio was below 40% (246 versus 413 Days on Market). Asset Insight’s April analytics revealed nearly 51% of the tracked models, and almost 55% of the tracked fleet, posted an ETP Ratio greater than 40%. April’s fleet ETP Ratio improved (decreased) to 69.8% from March’s 71.1%, placing the figure about half-way between the worst (highest) 12-month figure and the 12-month average Rating. •
Turboprops worsened in April but, for the fifth consecutive month, registered the lowest ETP Ratio at 43.2% (only slightly page 32 higher than the group’s 12-month lowest/best figure).
28 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Table A
Fleet Maintenance Condition 5.35
$ Million 5.311
5.25
$1.50 $1.45
$1.40 $1.38
5.15 M
J
J
Quality Rating
A
S
O
N
D
Maintenance Exposure
J
F
M
$1.35 $1.30
A
Quality Rating Trendline
Table B KingAir 350 - Pre-2001 41.4% Phenom 100 41.4% Embraer Legacy 600 42.3% Citation Excel 560XL 42.6% F900 44.5% Hawker 750 45.9% G200 48.1% KingAir B-200 - Pre-2001 51.5% CL-604 53.3% Premier 1A 54.4% Hawker 400XP 54.6% KingAir 300 54.6% Global Express 56.1% G400 57.3% TBM 700A 57.6% Citation Bravo 57.8% GIV-SP (MSG3) 59.6% Citation CJ1 60.8% Learjet 40XR 62.2% Learjet 40 65.7% Citation V Ultra 71.2% Learjet 45 w/APU 71.7% GIV-SP 72.5% F2000 72.7% Hawker Beechjet 400A 73.4% Premier 1 84.4% Learjet 60 88.2% Citation VII 88.4% Learjet 45 89.0% Hawker 800XP 89.4% Citation V 560 91.6% Learjet 55C 103.8% Hawker Beechjet 400 108.8% Citation VI 117.2% Hawker 1000A 118.5% KingAir C90 120.9% Piaggio P-180 125.0% CL-601-3R 128.7% Citation ISP 129.5% G100 129.9% Falcon 50 130.2% Learjet 31A 130.3% Citation II 135.8% Learjet 36A 154.0% Hawker 800A 160.3% Learjet 55 179.5% Citation III 180.9% GIV 183.7% Learjet 31 194.3% CL-601-3A 205.8% Citation I 240.2% Hawker 125-700A 254.6% Learjet 35A 277.0% F20-5 294.8% CL-601-1A 330.4% GIII 607.6% Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of April 30 2020
G650ER G650 CL-650 F2000LXS Global 6000 Citation CJ3+ CL-350 Legacy 500 G280 F7X Citation Sovereign + Citation X+ Boeing BBJ Legacy 650 Citation CJ4 525C F900EX EASy King Air 350i Phenom 300 F900DX Citation Encore + CL-605 Piper Meridian Citation Sovereign 680 TBM 850 Pilatus PC-12 G450 G150 Hawker 900XP Citation CJ3 Caravan 208-675 G550 Nextant 400XTi Caravan 208 Phenom 100E Global XRS GV F900EX Citation Encore CL-300 Learjet 45XR Citation CJ2+ 525A KingAir 350 - Post-2000 Caravan Grand 208B Global 5000 Citation Mustang 510 Hawker 4000 F900B F50EX Learjet 60XR Citation CJ1+ KingAir B-200 - Post-2000 Piaggio P-180 II Citation CJ2 Hawker 850XP
3.9% 4.8% 5.2% 5.4% 5.5% 7.4% 7.5% 7.9% 9.2% 9.3% 10.1% 10.2% 11.3% 12.1% 13.9% 14.5% 14.6% 15.2% 16.6% 16.9% 17.5% 19.7% 20.3% 20.7% 21.0% 21.4% 22.8% 22.9% 23.4% 24.6% 24.9% 25.0% 25.7% 26.1% 26.5% 28.5% 29.0% 29.5% 29.8% 30.4% 31.4% 31.6% 33.5% 36.1% 36.2% 36.4% 36.9% 37.4% 37.5% 37.6% 37.9% 38.2% 38.3% 38.9%
Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
www.AVBUYER.com
The Private Jet Company June.qxp_Layout 1 19/05/2020 12:41 Page 1
For Immediate Sale
2016 Lear 70 S/N 2129
2002 Citation Excel S/N 5233
1,720 Hours, MSP, Smart Parts, ADSB-Out, WiFi, Make Offer
5,490 Hours, ALL Programs, 2016 New Paint & Interior, Wifi, Make Offer
2004 Citation CJ3 S/N 10
2002 Gulfstream GIV-SP S/N 1484
3,540 Hours, Tap Elite, ADS-B Out, WiFi, 2016 Interior, 2017 Paint, Make Offer
2,900 Hours only, 2016 New Paint & Interior, WiFi, High Pedigree, Asking $5.5m
2008 Hawker 850XP S/N 258915
1997 Hawker 800XP S/N 258344
2,434 Hours, MSP Gold, Fresh 12 Year & Gear OH, SVS - WAAS/LPV, Asking $3.2m
+1.561.691.3545
5,185 Hours, MSP Gold, 2019 Interior, 2018 Interior, Asking $845,000
Info@ThePrivateJetCompany.com
EXCLUSIVELY REPRESENTED BY
2006 DASSAULT FALCON 2000EX EASy SERIAL NUMBER 093
FRESH 3B & ENGINE MINOR INSPECTIONS, 2C CHECK C/W JULY 2018, DESIRABLE NINE SEAT CONFIGURATION, ONLY TWO OWNERS SINCE NEW, CAMP MAINTENANCE TRACKING, ENGINES ON PRATT & WHITNEY ESP GOLD, APU ON HONEYWELL MSP GOLD, RVSM, PBN
2010 BOMBARDIER GLOBAL EXPRESS XRS SERIAL NUMBER 9371
IN SERVICE DECEMBER 2010, AIRFRAME ON SMART PARTS PLUS, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, ONE OWNER SINCE NEW, BATCH 3.3, FANS 1/A, CPDLC, TCAS 7.1, ENHANCED VISION SYSTEM (EVS), HEAD-UP DISPLAY (HUD), INMARSAT SWIFTBROADBAND & INMARSAT SWIFT 64
2009 BOMBARDIER CHALLENGER 605 SERIAL NUMBER 5765
ONE OWNER SINCE NEW, 96 MONTH INSPECTION COMPLIED WITH JULY 2017, PROLINE 21 ADVANCED UPGRADE, AIRFRAME ON SMART PARTS PLUS, ENGINES ON GE ONPOINT, APU ON HONEYWELL MSP GOLD
2011 BEECHCRAFT KING AIR 350i
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2008 GULFSTREAM G550 SERIAL NUMBER 5174
WILL DELIVER WITH FRESH 144 MONTH INSPECTION, FOURTEEN PASSENGER EXECUTIVE CONFIGURATION, ENGINES ON ROLLS ROYCE CORPORATE CARE, TCAS 2000 WITH CHANGE 7.1, GULFSTREAM PLANEVIEW CERT. FOXTROT, NEW EXTERIOR PAINT, LED UPWASH LIGHTING, HONEYWELL MCS-7120/HD-710 PHASE IV STAND-ALONE SATCOM WITH HIGH SPEED DATA UNIT, SATCOM DIRECT ROUTER FOR 3G DATA ACTIVITY ON GROUND, DIPLEXER (DLNA) FOR INMARSAT SWIFT BROAD BAND (SBB) OPERATION, ASC 84D ENHANCED NAVIGATION, FANS-1/A, CPDLC, ETC., ASC 105C ADS-B OUT
2005 GULFSTREAM G550 SERIAL NUMBER 5058 – REGISTRATION N2480H
ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, CUSTOM 14 PASSENGER FLOORPLAN BY GULFSTREAM SAVANNAH IN 2009, AFT GALLEY & FORWARD CREW REST, U.S. REGISTERED / FAA PART 135, ADS-B OUT, FANS-1/A, CPDLC, BROAD BAND MULTI-LINK (BBML) HIGH SPEED DATA WITH GEN 2.5 SERVER (YONDER SERVICE), SWIFT BROADBAND, 12 MONTH / 500 HOURS INSPECTION C/W FEBRUARY 2020
1997 GULFSTREAM G-V SERIAL NUMBER 506 – REGISTRATION M-FISH
LOW TIME, ENGINES ON ROLLS ROYCE CORPORATE CARE, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, MECHANICAL PARTS ON HONEYWELL MECHANICAL PROTECTION PLAN, NO DAMAGE HISTORY, OPERATED PRIVATELY – NOT FOR CHARTER, FAA COMPLIANT – PART 91, FORWARD GALLEY & CREW REST, NEW EXTERIOR PAINT & INTERIOR IN 2015, SPACIOUS 8+1 PASSENGER CONFIGURATION FEATURING AFT PRIVATE MASTER BEDROOM WITH FIXED FULL SIZED BED
2005 DASSAULT FALCON 900EX EASy
SERIAL NUMBER 145 – REGISTRATION CS-EME EASy II BASELINE WITH ADS-B OUT, ENGINES & APU ON HONEYWELL MSP GOLD, DRY BAY MOD C/W SB 329, 2C INSPECTIONS & GEAR OVERHAULS C/W MAY 2017
25 Park Lane, London W1K 1RA EU +44 (0) 203 603 0000 | US +1 917 414 1995 sales@thejetbusiness.com | www.thejetbusiness.com
MarketIndicators JUNE20.qxp_Layout 1 19/05/2020 17:46 Page 6
MARKET INDICATORS
AVBUYER.com
Large Jets Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
$14.0
$3.60 $12.5
$13.0
Large Jets improved slightly, but at 64.4%, continued to place a distant second. Medium Jets registered a 12-month best (low) figure at 72.3%. Small Jets improved, but their 87.8% figure was only marginally better (lower) than the group’s 12-month worst figure.
Market Summary
10.7% of the tracked fleet was listed for sale in April (versus 10.3% in March). The lowest (best) figure was again captured by Turboprops at 7.2%. Large Jets were next at 9.7%, followed by Small Jets and Medium Jest (11.6% and 12.1%, respectively). Large Jets: The tracked inventory of Large Jets increased by 19 assets in April, with these additions raising (improving) the group’s Quality Rating to a record high 5.733 over March’s 5.589, and moved the group further into ‘Outstanding’ territory.
Ask Price vs. Maintenance Exposure
Scale -2.500 to 10.000
5.273
5.300
$1.30
$3.00
Apr-20
Asset Quality Rating
$1.35
$3.25
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Medium Jets: Little movement was uncovered in both the Medium Jet group’s Quality Rating and Maintenance Exposure during April, with the former decreasing for the third consecutive month, but still managing to remain within the ‘Excellent’ range. The latter worsened 0.2%, although it still bettered the 12-month average. All this resulted from a 37 unit increase to inventory that, surprisingly, resulted in a 5.1% increase to an Ask Price figure just below the group’s 12-month high. That price increase helped lower the ETP Ratio to a 12-month low. Nevertheless, it is difficult to believe that, with 12.1% of the
Medium Jets
$3.41
$3.50
5.200 5.100
32 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
5.000 Sep-19
$1.25
Jun-19
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
$1.27
May-19
$2.75 $2.50
Oct-19
Maintenance Exposure also improved (decreased) 3.8%, to post a figure only slightly higher than the group’s 12-month best. With Ask Price decreasing 3.8%, there are great values to be had for prospective buyers. At the same time, buyers must do their homework, since the group’s ETP Ratio of 64.4% indicates that some low-priced assets may not offer good value for money.
$ Millions
$3.75
Sep-19
5.500
Aug-19
$2.80
5.600
Jul-19
$3.00
Jun-19
Apr-20
Feb-20
Mar-20
Jan-20
Dec-19
Oct-19
Nov-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
$3.00
Aug-19
•
5.700
Jul-19
•
5.733
$3.20
$11.0
•
$3.40
5.800
May-19
$12.0
$10.0
Scale -2.500 to 10.000
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MarketIndicators JUNE20.qxp_Layout 1 20/05/2020 08:09 Page 7
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MARKET INDICATORS Tony Kioussis is president of Asset Insight. The company provides audit and valuation services and has developed a standardized Asset Grading System scale that evaluates an aircraft’s maintenance condition.
Small Jets
Ask Price vs. Maintenance Exposure $ Millions
$1.95
Asset Quality Rating Scale -2.500 to 10.000
$0.90
$0.88
$1.85
5.300
5.245
5.200
$0.80
tracked fleet listed ‘for sale’, the higher Ask Price will hold, thereby worsening the ETP Ratio and placing buyers in the driver’s seat. Small Jets: Inventory increased by another 12 units in April (60 assets YTD), and with 11.6% of the active fleet listed for sale, knowledgeable buyers hold the better hand here too. Asset Quality improved 0.64% during April, for Small Jets to approach the top end of the ‘Very Good’ range. While Maintenance Exposure increased 0.1% to post a 12-month high (worst) figure, Ask Price increased 3.3% to a 12-month best figure, lowering the ETP Ratio from March’s 12-month worst (highest) figure. Pricing may not hold and, as we reported of (www.assetinsight.com) March, the spread Asset Insight analytics between Ask Price and actual Transaction Value should widen assuming owners are serious about selling their aircraft.
Asset Insight analytics (www.assetinsight.com)
Turboprops: Inventory increased by 22 units in March, which didn’t create positive statistics for the group. Asset Quality
Outstanding Excellent 5.500 5.250 or to Greater 5.499
Turboprops
www.AVBUYER.com
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
5.010
5.050
Apr-20
Mar-20
Feb-20
Jan-20
4.750 Dec-19
$0.50
Nov-19
4.850 Oct-19
$0.55
Sep-19
4.950
Jul-19
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
$1.40
May-19
$0.56
5.150
Jun-19
$0.70
$0.60 $1.50
Below Average Average 4.500 Less to than 4.749 4.500
Good 4.750 to 4.999
Scale -2.500 to 10.000
$0.65
$1.60
Very Good 5.000 to 5.249
Asset Quality Rating
May-19
$1.61
Sep-19
Asset Quality Rating Key
$ Millions
$1.70
Aug-19
Jul-19
worsened by 2.4% and Maintenance Exposure worsened by 1.6%. The group’s Quality Rating did manage to remain within the ‘Very Good’ region, but both Ask Price and the ETP Ratio worsened (the former by 2.5% and the latter through an increase to 43.2% over March’s 42.1%). The silver lining here is that only 7.2% of the active fleet is listed ‘for sale’, creating sufficient selection for buyers while providing transaction opportunities for sellers at a price just below the group’s 12-month high figure. MI www.assetinsight.com T
Aug-19
Ask Price vs. Maintenance Exposure
5.000
Jun-19
$0.70
Apr-20
Feb-20
Mar-20
Jan-20
Dec-19
Oct-19
Nov-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
$1.65
5.100
$1.85
May-19
$1.75
AVBUYER MAGAZINE Vol 24 Issue 6 2020
33
2 0 0 4 G u l f s t re a m G 4 0 0 s /n 1 5 3 0
NEW LISTING
AIRCRAFT SALES & ACQUISITIONS
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Acquisitions In Search Of Citation XLS Citation V Legacy 650 (2010 or newer) Legacy 600 Phenom 300 (2015 or newer) Falcon 2000LXS Challenger 604 Gulfstream GIV-SP Hawker 800XP
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One U.S. Owner Since New. ADS-B. Wi-Fi ATG-4000. MSP Engine & APU. Servie Center Maintained.
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Duncan Aviation has been assisting companies around the world with the sales and acquisition of aircraft for 60 years.
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A LONG-TIME DUNCAN AVIATION MAINTENANCE CUSTOMER HIRED OUR AIRCRAFT SALES AND ACQUISITIONS TEAM TO PERFORM MARKET RESEARCH AND FIND A LATE-MODEL AIRCRAFT WITH LOW FLIGHT TIME AND A CABIN THAT HAD PLENTY OF SHOULDER ROOM.
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MARKET INSIGHTS
Where Could BizAv Opportunities Lie for Private Equity Firms? Which sectors of Business Aviation might appear particularly attractive to private equity firms if the fallout from coronavirus creates bargains? Gerrard Cowan provides an overview from the analysts… hile the coronavirus-induced lockdown has had an unprecedented toll on Business Aviation, there could yet be opportunities for private equity in a sector that still has a promising longterm future, according to industry analysts. Such investors are likely to move with caution, however. Any deals that were in progress pre-virus are now likely to have been put on hold, aviation analyst and consultant Brian Foley notes. Investors will want to reassess company valuations and reopen discussions on any agreements, which could be a lengthy process. “It will be difficult to
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forecast any company’s revenues for the rest of this year and next year,” Foley says. Before the virus there was “pretty robust” interest from private equity and other investors in Business Aviation-focused companies, including “what would have been fairly high-profile transactions, had they gone forward”, he reflects. These covered various aspects of Business Aviation, from manufacturers to Fixed-Base Operators (FBOs) and Maintenance, Repair and Overhaul (MRO) specialists. When the coronavirus and the subsequent lockdowns sparked a rout in global stock markets, www.AVBUYER.com
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Foley expected this private equity interest to simply vanish. So, he was surprised to find that while “a few of them are putting out brushfires in their own portfolios, attending to their own emergencies”, the investors in general remained open to potential deals. Foley has even had one company come to him during lockdown and ask for his help in finding a buyer, “and we can still do that, because investors are still interested”. That’s not to say the picture is rosy, Foley stresses. “Most things are paused right now as people recalibrate the valuation of companies in the future.”
The Dust is Still Settling
The overall picture remains unclear. Sales of new aircraft – which are closely tied to overall economic activity – are likely to face a highly challenging 2020, says Adam Cowburn, managing director of Alton Aviation Consultancy. In the pre-owned market, his company is hearing of increased interest from cash-rich buyers, but it is unclear whether this is a sustainable or substantial trend. “Similarly on the MRO side, there has been a short-term burst of activity as operators take advantage of downtime to address maintenance items,” he adds. “If the economic recovery comes slowly, aircraft replacement cycles may also slow down, which could keep older business aircraft in service and support MRO demand.” Prior to the pandemic, private equity firms were particularly interested in such companies, along with FBOs, aerospace suppliers to the Business Aviation OEMs, aircraft financiers and other niche service providers, Cowburn continues. These sectors presented acquisition opportunities with strong and predictable cashflows, favourable growth prospects, and a defensible competitive position. These positives remain in place, he notes. “We expect those same sectors of the market that were attractive prior to COVID-19 will again be attractive now – private equity firms are hoping that the universe of receptive targets will expand, and seller valuation expectations will reset to more palatable levels.”
Internal Markets, Then International Business
The global lockdown is unchartered territory for business as a whole, not just Business Aviation. It is impossible to know what long-term impact it will have on the sector down the line, and this could make it difficult for private equity investors to arrive at valuations of particular companies. The picture is likely to become clearer in internal markets ahead of the international business, says Bob Mann, president of R.W. Mann & Company, an aviation consultancy. Internal markets – such as the domestic US – will have a common strategy for relaxing stay-at-home orders. www.AVBUYER.com
International activity will depend on concurrence between bilateral parties and in some cases multilateral agreements on travel by foreign nationals, over such matters as demands for quarantine. This could have implications for private equity investors, Mann adds, as “a lot of the value is in the longer-haul journeys”. While Business Aviation has clearly been significantly impacted by the lockdowns, Mann believes there are still long-term reasons for optimism, which is likely to keep investors interested in the sector. There has been a shift over more than a decade of premium-class travel from the Scheduled Airlines to Business Aviation, providing significant time savings for executives and other users. Mann believes that Business Aviation will provide more opportunity for private equity investors in the long run, thanks to the appeal to high net worth individuals of a more point-to-point system, rather than a hub-and-spoke approach. “One thing you can never do in the [hub-andspoke] model is get people’s time back,” he said. “In the long term, Business Aviation – whether piloted as it is today or even autonomous as it may be decades from now – is a space that’s going to be highly valuable.”
‘Conviction’ – The Recurring Theme
Cowburn says there is one recurring theme in all of the conversations his company is having with private equity clients: conviction. No one has any degree of confidence in where the market is going, when it might hit the bottom, or how it could climb out from there. Until investors see a clear and sustainable trajectory out of the current situation – which will likely rely on political and epidemiological outcomes rather than economics – most private equity firms are likely to study the market cautiously from the side-lines for the next several months. “Traditional private equity firms are not in the business of ‘catching a falling knife’”, he concludes. “They would rather wait until there is a clear bottom of the market – even if that means missing out on some early upside – rather than mistime their entry into the market and watch an investment plummet in value in its early days.” T
Gerrard Cowan is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan
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MARKET INSIGHTS
Where Will the BizAv Market Return First, Post COVID-19? In the midst of the global COVID-19 pandemic, and with various global political factors ahead in 2020, it’s a difficult time to read the Business Aviation marketplace without expertise. Rebecca Applegarth asks Janine Iannarelli for her perspectives… anine Iannarelli has been in the aviation industry for 37 years, and specifically business/private aircraft sales for 35 of those. As president and founder of Par Avion Ltd., Ms. Iannarelli has represented a number of private individuals and corporations internationally in the purchasing and sales of business aircraft. Having established Par Avion Ltd. in January 1997, she’s seen lots of ups and downs in the marketplace, including some truly unique challenges. Iannarelli is therefore well qualified to discuss the uncharted territory of today’s COVID-19 pandemic and its potential impact on aircraft sales.
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AvBuyer: You put out a strong, re-assuring statement regarding coronavirus on your website recently. Having seen and navigated market downturns in the past, how do you see the coronavirus pandemic impacting the market and how are you preparing? 42 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Iannarelli: The viewpoint of the trade seems to be split into two different groups of people: Those who hold a more negative outlook, and those who say we have to wait it out a bit and see what unfolds – a more optimistic outlook that I associate with. Par Avion Ltd is prepared for the onslaught that we feel will come on the back-side of this pandemic. By preparing, we are investing heavily in our information gathering and emphasizing a refinement of our ‘primary research’ of the market. I have instructed each of the people working together at Par Avion to make sure our market reports and analyses are perfect – not just good, but perfect. Additionally, we are further developing our consulting services, including a service that we offer to aircraft owners that provides them with the opportunity to stay abreast of changes in the market for their specific make/model of aircraft. Regular reporting on the market helps to keep www.AVBUYER.com
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Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.
them apprised of the value of their airplane asset. This is a product that has always been available, but until now was not a mainstay of the business. With the recent addition of David Wyndham to the team it is logical that we encourage this service and deploy his expertise in operational and performance analysis. We are constantly combing through data, be it first-hand information we gather, or via secondary information sources which we make extensive use of. We’re in constant communication with others in the trade, too, and remain so with our clients. This is a moment we can all take to tidy up any loose ends in our work. AvBuyer: Tell us about the markets you're focused on at Par Avion Ltd. What were they looking like before the pandemic, and what are they looking like now? Iannarelli: Even before COVID-19, our expectation was that 2020 would not be as robust a year as the previous few in light of the fact it is a Presidential election year in America, which typically makes for cautious business activity in general. People are hesitant to make huge investments without knowing what the future might hold. Continuity in a government is good because at least you know what you have to work with, whether good or bad. www.AVBUYER.com
Over the past two years discussions of ‘us’ being due for a recession have been ongoing and the only question was, would it be mild or severe? Prices had started a downward trend in 2019, though not dramatically. Some markets were simply exhibiting what would be regarded as a normal depreciation schedule, as was seen prior to 2008; a 3-4% per annum reduction off of the declining balance. COVID-19, while a serious threat to our global economy (and certainly the aircraft marketplace is vulnerable), for me is a little different than the downturn we faced after the economic meltdown of 2008 – and there are several reasons, liquidity being one of them. In 2008 the banks themselves were at great risk and had no money to lend. Today there are funds available, though admittedly the financial institutions are reluctant to lend at the moment, and the US Government is taking a huge step in helping all through this crisis by injecting a trillion dollars into businesses. That is a huge difference as compared to 12 years ago. In addition, the buyers who existed pre-COVID19 have not necessarily gone away. They have ‘paused’ their investing, but are fully expected to resume once we ‘open up’ a little bit. (By ‘open up’, I mean that at least the US restrictions on internal travel need to be relaxed and allow unfettered movement between States.)
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We also expect an uptick in interest in travel by private aircraft for reasons such as dimished airline routes and flight availability, and a desire to reduce contact vis-à-vis large terminals and the cabins of commercial airliners. On the market front, there are far fewer late production, pre-owned airplanes available [for sale] today, as compared to ten years ago. The supply of new or nearly-new aircraft has in fact been declining due to the OEMs having cut production since the last downturn. There are more buyers than were perhaps realized who view ten years of age as ‘old’ in our sector of the aviation marketplace. Since 2008 financial institutions have preferred younger aircraft at the end-of-term, further limiting supply of what a percentage of the market consider suitable. One final thing I think many people haven’t considered is that for all the OEMs, the supply chains have been disrupted. To what extent will be unknown until they start talking about it, but I can almost unequivocally say that there will not be as many [new jet] deliveries this year as were originally planned for. The OEMs will have to defer deliveries of new aircraft, at least to the equivalent time they and their global partners were shut down. Essentially, this means if you are ordering a new aircraft today, you’re looking further down the order book than you would have been without the COVID-19 pandemic. Certainly, there are going to be some delivery positions that become suddenly available, caused by the crisis, but once the manufacturers work their way through this inventory there will be delays. So it was extremely important for the US to invest in small business, and historically it’s the first time they’ve ever done it. Many of the those suppliers to the manufacturers today are domestic US small businesses, and if they were to collapse it would cause a significant ripple effect. From a buyer’s perspective, however, if you’re looking to buy a fairly new aircraft, particularly in the Large Cabin Jet category, and there’s nothing to be ordered from the manufacturer that you can have in the relative near-term, you’re probably going to look at the pre-owned market as well. This might help tighten the supply [of used jets] even more. AvBuyer: With the whole world impacted by the coronavirus pandemic, where do you see the market returning first? Iannarelli: As mentioned there was a set number of buyers prior to COVID-19, and they won’t have gone away. At least, not in the domestic US. I feel strongly they’re going to come right back to the marketplace as soon as travel restrictions are 44 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
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“We also expect an uptick in interest in travel by private aircraft for reasons such as dimished airline routes and flight availability, and a desire to reduce contact vis-à-vis large terminals and the cabins of commercial airliners.” lifted and they have a destination to go to. Business travelers will lead the way, hopefully soon followed by leisure. Having looked at enquiries pre-COVID-19, I would generally say 85% originated inside the US and the other 15% from the rest of the world. Recently (post-COVID-19), I have heard it said that 95% of enquiries are coming from the US. While I can’t take credit for that observation, I would second it. With 95% of enquiries coming from the US, the international markets are going to be very challenging for the coming year. The vast majority of aircraft sales business is going to be transacted here in the US.
www.AVBUYER.com
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2005 CITATION XLS | S/N 5576 4267 TSN • Power Advantage + • Proparts Aux Advantage • WAAS/LPV Approved • ADS-B Out ATG-4000 WIFI • SATCOM • FDR • 2019 Paint
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I recommended to my clients that they reposition their ‘for sale’ aircraft over to America prior to the lock down. One of my clients kept their airplane in the States instead of flying it back to Europe and it was subsequently sold and delivered in April. The client made it easy for a prospective buyer to see it, and with service centers operational here in the States, it was relatively easy to conduct their due diligence inspection. Those were key components of this COVID-19 success story. AvBuyer: We've seen a range of theories on the market recovery post-coronavirus, from relatively quick to long-term. Where do you stand on how the recovery will play out, and why? Iannarelli: Well it will certainly be a ripple effect. Service industries will be among the first to return to full capacity post COVID-19. If you sell, consult or advise, you’ll get back on the road almost instantly to visit clients or take care of other business. The same could be said for any kind of manufacturing firm that usually would send out team members to visit their manufacturing sites. Those people will be back flying quickly. Leisure travel will be the last to return to normal, whatever the new normal will be. Again, I anticipate there will be more of a flourishing in the United States before we see it anywhere else. One reason is because of the distances we need to travel in the States. But for the industry as a whole to restart, in some respects it could be pretty quick and in others, it’s going to depend on demand and
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access. Even if you don’t have a requirement for long-haul international travel, there still remains quite a bit of terriotory to travel in the United States. AvBuyer: Finally, a word on David Wyndham. You've appointed him as executive sales director and acquisition specialist. How will he fit in with Par Avion’s vision for the present and future? Iannarelli: I think there’s a great compliment of skill sets and, in fact, David adds a new dimension. Conklin & de Decker is a resource that I have made use of for years, and what a great addition to my team to have one of its original team members. It’s not that Par Avion Ltd. wasn’t already providing some analysis of which airplane works best for a flight department, but David takes it to the ‘nth’ degree. David has the ability to strategically assess one’s existing operation or need, rapidly compute the numbers, and off the top of his head give you an analysis of the operation and make further recommendation. David’s appointment increases our ability to provide an ongoing market analysis, as opposed to periodic evaluations of the aircraft asset. David is an information source who I think will prove really valuable to people contemplating a first-time purchase or a major change to their uplift. His unique skillset, combined with all the expertise and resources Par Avion Ltd. brings to the table, will provide the assurance sought in these unsettling times for those wishing to engage in an aircraft sales transaction. More information from www.paravionltd.com T
MARKET INSIGHTS
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MARKET INSIGHTS
How to Read the International Sales & Charter Markets What’s the status and the outlook for the global business aircraft charter and sales markets? Rebecca Applegarth asks Sparfell Aviation Group’s Edward Queffelec for his company’s perspective of the regions they operate in… ounded in Geneva, Switzerland in 2006, Sparfell Aviation Group has established a solid global presence in the Business Aviation market today, only last year (in June 2019) acquiring Austrian operator LaudaMotion Executive. Among its portfolio of services, the group offers clients aircraft buying and selling services, as well as aircraft charter, aircraft leasing and aircraft management. With offices spread around the globe, Sparfell has a wide reach in the Business Aviation sector. AvBuyer spoke with the company’s CEO, Edward Queffelec, to discuss the current market situation, and to obtain an outlook for what a recovery might look like for business aircraft sales and charter once the COVID-19 pandemic is over…
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AvBuyer: COVID-19 is prominent in everyone’s thoughts and conversations right now. With so many national borders being closed, what’s the story for the business aircraft charter market right now? Are there any pockets of demand that you're seeing? 48 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Queffelec: What we have observed, like many of our colleagues, is a sudden stop in the usual flight activity from early March, followed by a period of two-tothree weeks of several repatriation flights. Since early April the flight activity has been very low – however, there has still been some repatriation or mandatory travel occurring. Interestingly, roughly half of our flights have been for customers who rarely use private jet charter, but have had to do so because of the lack of airline solutions. This leads us to think that the crisis will highlight the real benefit of our industry in providing efficient travel solutions where there are no efficient airline solutions. One of these customers actually made a 1hr 45min flight within Europe where the only alternative airline solution would have been a 28hr trip with three stops. Business Aviation also offers the natural benefit of providing social distancing by avoiding large airport terminals and large numbers of fellow passengers. This limits contact between travellers and potential virus transmission. For these reasons we expect new customers to use charter services to protect themselves, their colleagues, their families and loved ones. www.AVBUYER.com
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Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.
AvBuyer: How quickly do you think the charter market will recover after the pandemic is over? Will some sections of the market be quicker than others? Queffelec: The recovery of the charter market will depend on one of two opposing trends emerging. The first is a downward trend similar to the one we experienced in the previous financial crisis: Many corporate and private customers reduced their charter use for economic reasons. The second, an upward trend, may emerge for the reason mentioned previously: The growing need for private jet solutions due to the lack of convenient airline service and a need for a safer travel solution with reduced contact thanks to having your own cabin and getting to choose who sits in your direct environment. All of this is linked, of course, to actual and current travel restrictions that are enforced by different countries. If passengers are not soon allowed to cross borders the likely rate of recovery will be slow. Our feeling is that due to large areas being closed to foreign travellers for a significant period of time (Schengen is anticipated to be closed until www.AVBUYER.com
at least the end of August), long-range flights will be the ones to trail in the recovery. Meanwhile, the Light and Super-Light Jets will prove a good match for the range needs and requirements of the newcomers to the charter industry. Therefore, we expect our European Bombardier Learjet and Challenger 300 fleets to be more active than our Bombardier Global and Gulfstream aircraft (for example). AvBuyer: We've been reading and hearing plenty about the US aircraft sales markets. With offices around the world, though, how do sales look in the regions you cover? Queffelec: After a complete ‘black-out’ for two-tothree weeks, we see some resilient market activity; but for reasons such as technical centers being closed, there are fewer deals closing. Most of the closings we see happening are for transactions that were already at an advanced stage before COVID-19. So, most of the activity is revolving around keeping those deals alive – mainly on Mid-size Jets (as opposed to Heavy or Light Jets), and with some demand for VIP helicopters.
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‘Business flows’ (i.e. broadcasts, advertising and mail requests) have picked-up again, but are at a level of around 40-50% of where they were before COVID-19 struck. Ultimately, activity is currently low, but it’s improving. We’re seeing a quite significant number of UltraLong-Range Jets on the market. For example, there are 20 Bombardier Global 6000s for sale at this time. While many of these are based on orders for new jets, pressure on pricing is not yet apparent, and it’s still too early to see the impact in that respect. Although we do expect an increase in buyer ‘opportunities’, we have not yet seen many distressed assets enter the business jet market. The only fire-sales that we’ve seen have been on some low-end assets, including some older King Airs. AvBuyer: We’ve heard it said that the US’s preowned sales market will recover first, and that the rest of the world’s markets could be in for a tough year. What's your reading of the European market, in particular, and the other regions that you cover, generally? Queffelec: In Europe (including the UK), big corporates and Small-to-Medium-size Enterprises are being hit with financial issues. We expect to see aircraft sales under pressure occurring in the coming months (including from private owners). Opportunistic buyers are still waiting for significant price reductions to materialize. Some Letters of Intent (LOIs) are being submitted, but that is currently the stage where the deals are often grinding to a halt, since the borders are closed. Even a simple aircraft viewing is impossible unless 50 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
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the buyer and seller live in the same country. Interestingly, we are aware of several Ultra-LongRange and Super Mid-size Jet owners who have decided to pull their aircraft off the market and plan to ‘wait it out’. Our opinion is that older (but fully 2020complient) Ultra-Long-Range and Light Jets will be the first to pick-up within Europe, as individuals or companies that can afford them might prefer to acquire one to safely commute and avoid the exposure to potential diseases on the scheduled airlines and at their terminals. Our home-country of Switzerland is a geographically small and well-organized country, and it should adapt quickly after COVID-19. We are confident we will see Switzerland and its HBregistered aircraft rebound well in the market. The Middle East, meanwhile, is currently demonstrating poor activity. Historically a region of aircraft buyers, the Middle East faces an unprecedented drop in the price of oil. The proximity between Business Aviation and the scheduled airline players in the region might be a constraint to a quick restart and recovery. We expect to see some sales in the Long-Range and Mid-Size Jet segments, though. Our understanding of Africa is that the usual demands for ‘pre-flown’ aircraft and services will remain, and will restart immediately after the deconfinement (though the number of deals here are traditionally lower when compared to rest of the world). As for Asia, a lack of visibility in China – the engine for Asia – makes it difficult to assess that region at this time. More information from www.sparfell.aero T www.AVBUYER.com
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BUYING & SELLING AIRCRAFT
Buying High Time Jets: Value or a Risk?
What should buyers consider when shopping the market for older, higher-time aircraft? Professional appraiser Jeremy Cox shares some of the risk areas to consider that could inform the Cost-Benefit analysis… he airlines target at least 3,000 hours annually for each of their aircraft in order for their business models to work. Hence their target retirement/scrap age starts at around 20 years (or 60,000 hours) and could be as high as 30 years (90,000 hours). By comparison, the world’s business jet fleet doesn’t come anywhere close to these numbers, and should therefore (in my opinion) be classed as the ‘boutique’ category of aviation. It’s unusual for any business jet to fly more than 400 hours per year. Consequently, a business jet with 30,000 hours on its airframe is very rare indeed, particularly in an aviation segment where 10,000 hours total-time is considered ‘high-time’. A snapshot analysis of all 21,341 active business
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jets worldwide, per AMSTAT data, returns an average of 3,488 hours total-time-in-service. Age (in years) is where business jets surpass the airlines, with 34% of all the world’s active business jets currently older than 21 years of age (see Table A, right).
How do Age and Time Factor in Aircraft Appraisals?
It could be that your aircraft purchase budget pushes you towards older aircraft. If it does, there’s a one-inthree chance that you’ll will be shopping for aircraft dating from the late 1990s and earlier. Naturally, older aircraft have history, and they will also have accumulated flight hours over the years. In the case of an aircraft built in 1999 that has consistently flown 400 hours annually (since new), the www.AVBUYER.com
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AVBUYER.com Jeremy Cox is president, JetValues Jeremy LLC. Jeremy has been an aircraft broker, director of maintenance for several different companies and employed by several airframe OEMs’ independent service centers. Contact him via jeremy@jetvaluesjeremy.com
engines and airframe will have amassed 8,400 hours, or more. Age and total time are both factors in an aircraft appraisal when determining its value. Let’s consider the example of the Gulfstream G550 to illustrate. The older the aircraft is, and the more hours that are accumulated over time, the greater the devaluation of the subject aircraft. Theoretically, when the year/hours ratio is projected on a spreadsheet, you’ll find that below the first 1,000 flight-hours, each flight hour of a new Gulfstream G550 is actually worth $5,280. By comparison, for the first 1,000 flight-hours flying a 2004 Gulfstream G550, each flight-hour is worth $1,260.
Why the Maintenance Schedule Matters…
Let’s consider Engines Total-Times of the Gulfstream G550 since new. The Rolls-Royce BR710-C4-11 engines used on the G550 are maintained on either a ‘Hard-Time’ or ‘On-Condition’ schedule (it’s the owner’s/operator’s choice) regarding Mid-Life and Overhaul Inspections. Hard-Time keeps the powerplants on a ten-year Mid-Life Inspection, and 8,000-hour Overhaul Inspection. On-Condition, meanwhile, might stretch the serviceability of the engine to 9,500 hours (which is very rare), or the monitored engine performance parameters degrade enough to require an Inspect & Repair As Necessary (IRAN) event at 1,000 (or more) hours below the Hard-Time Overhaul interval. As the age-old saying goes, you’ll either pay now, or you’ll pay later. You may save on downtime when following the On-Condition protocol, but ultimate engine restoration costs will be much higher than those of a Hard-Time schedule, especially if the engine is in its third semester as applies to Life Limited Parts (LLPs). One might see a US$5m IRAN/Overhaul of each engine when multiple LLPs need to be replaced. So
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buyers in the market for older, higher time aircraft ought to factor the maintenance schedule of the aircraft as part of the risk analysis.
Diminishing Supplies of Parts and Components
Now let’s consider ‘out of production’ models. There comes a natural attrition of components and parts availability once an OEM drops a specific model from their production line. While all service and support doesn’t end at that point, let’s assume that the aircraft make/model has been out of production for more than 10 years. At this point, availability of components and parts can tend to tighten. Part of this natural attrition attracts non-OEM companies to take up some of the slack, either via the manufacture and PMA of new rotables (when the companies that used to make them for the OEM stop producing them), or as aircraft are dropped from the active fleet, they’re cannibalized by many of the used parts supply houses. Obviously, an overhauled rotable is more desirable than a ‘serviceable as removed’ unit with traceability, and many of the used parts supply houses will develop in-house overhaul capability or outsource this requirement. Another aspect to consider is ‘wear and tear.’ A moving part or assembly cannot do so indefinitely without it experiencing wear. Obviously, safety of flight components have a combination of calendar and/or hours/cycles limitations established by the OEM to ensure failure doesn’t occur before the affected component is removed for servicing. However, panel screws, fasteners, securing nuts and bolts whose life may not be tracked by the maintenance program can only loosen and tighten so many times before they’re no longer serviceable. Lastly, it is rare for avionics equipment to be included in life-tracking (notwithstanding the
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BUYING & SELLING AIRCRAFT
“The bottom-line issue with older aircraft is the diminishing availability and supply of parts, components and service. ” transponders, altimeters and RVSM recertification requirements), and as wiring cooks, gases-off and ages, random electrical interruptions and spikes become more prevalent. These electrical events often cause solid-state components to ‘fry’ and fail. The bottom-line issue with older aircraft is the diminishing availability and supply of parts, components and service. The older the business jet, and the greater the total-time, the simple decision of “Do I want it, or not?” (when you buy new) becomes a reasonably complicated Cost-Benefit analysis.
immediately leapt into action and created an ‘Ageing Aircraft’ Task Force to review the technical issues that were the result of aircraft aging in service. Apart from issues with the embrittlement of conductors and the breakdown of insulation in electrical wiring, as well as crack formation and growth within some metal structures caused by stress and/or corrosion, the FAA found that the majority of aging issues found in older-high-time aircraft were likely to be serious only in areas that had been structurally modified or repaired.
Is Age-Related Safety a Real Risk in BizAv?
In Summary…
Lastly, let’s consider safety. The 1977 crash of Zambia Airways’ leased Boeing 707 was one of the first major commercial aircraft accidents caused by age and metal fatigue. The horizontal stabilizer spars were fatigue cracked, and after inspection more than 15% of the ‘then’ in-service fleet were found to have the same problem. In 1988 when the Aloha Airlines accident took place, unnoticed corrosion caused an explosive decompression of a Boeing 737 mid-flight to take off its roof. Mainly thanks to the over-built strength that was inherent in the design of the B737, the damaged aircraft was able to make a safe landing. The Federal Aviation Administration (FAA)
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While I don’t know of any business aircraft that have been catastrophically ‘downed’ due to age or high total-time, I would suggest any risk that comes with buying a high-time business jet is purely of a financial nature. On the upside, significant savings can be immediately realized by shopping high-time and older jets – as long as you have the relevant expertise at your side to help you sort the wheat from the chaff. More information from www.jetvaluesjeremy.com
JEREMY COX ARTICLES
❙
at AVBUYER.com
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BUYING & SELLING AIRCRAFT
Jet Tolbert is President of American Aircraft Sales. Established in 1968, it is a premier brokerage firm which has been a trusted partner since corporations first began utilizing jet aircraft to grow their businesses. With offices in the US, a Latin America sales team and a partner office in Zurich, Switzerland, American Aircraft Sales is an active NBAA, IBAC, EBAA & AsBAA member.
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AVBUYER.com
Getting Value from a COVID-19 Affected BizJet Market There’s value for both buyers and sellers in today’s used aircraft marketplace, says aircraft broker Jet Tolbert. Following are some tips to both sides on extracting best value from a transaction… hile the current COVID-19 situation is unique, there remain some timeless strategies that can be used when it comes to finding the right deal. These strategies are available to both buyers and sellers of business aircraft willing to brave the market at this time.
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Advice for Business Aircraft Buyers
It is certainly true that savvy buyers with the right professional advice can extract greater value than before from their aircraft purchases. Primarily the value comes from identifying, and making the right acquisition at the right price for today’s market. Deals are happening, and buyers who are prepared to follow through on their interest in an aircraft are accessing market opportunities that were not available a few months ago. Buyers who are ready and able to fly a business jet in today’s pandemic environment need not be hesitant in making offers. If you’re one such buyer, you should understand that not every seller is willing to accept a changing market price – so it is a good idea to move quickly when a seller is located who is ready to work with the market realities. Nevertheless, entering today’s market won’t be akin to taking candy from a baby. As a buyer, you’re certainly not alone shopping the market, and consequently there are very few fire sales. Sellers are not rushing to part with their aircraft like they were in the global financial crisis of 2007-2008 for various reasons. As is usually the case, if you want to realise maximum value from a purchase it will pay to work with an established team of professionals, including a buyer’s agent, who will provide you with the expertise and knowledge of the marketplace to capitalize on the best opportunities available by gaining the inside track and the access before the competition.
Advice for Business Aircraft Sellers
Sellers should see this time as a good opportunity to sell. Prices are difficult to peg down currently, but www.AVBUYER.com
serious discussions are taking place around the globe regarding aircraft acquisitions, and sales are being consummated. If you are considering selling your aircraft, then a market valuation from an established broker or appraiser who has been through previous up and down market cycles will go a long way to help you understand value in the context of today’s market. It will also help you decide the right strategy to deploy in order to gain the best value. This is particularly important because, while there are buyers in the current market they are spread more thinly, making a lost sale that bit more costly. Therefore, using active marketing strategies with specific tactics to help increase the pool of potential buyers for your aircraft will ultimately yield the mosttimely sale at the best price. This could be more important now than ever before as the current market conditions will amplify the stigma attached to poorly marketed aircraft. In Summary… It’s important to remember that the cause of any change in our market has the potential to also become a driver for our industry. While optics may play a part for companies that are laying off large numbers of employees, and who want to avoid the stigma of flying in a private jet at the same time, the benefit of private air travel is undeniable; possibly even more so, given the additional layers of safety and protection a business aircraft provides its cabin occupants compared to the airlines. With a gradual reopening of business across the United States and in other parts of the world, the access a business aircraft provides its passengers could be crucial to their success. It’s that access which creates additional value to all those who are in the market to acquire one at this time.
More information from www.americanaircraftsales.com
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OGARAJETS ANNIVERSARY PROFILE
FIRST OWNED GULFSTREAM
OGARAJETS Celebrates 40 Years in Business While 2020 will be remembered for its challenges, OGARAJETS
celebrates 40 years in business – an achievement forged by a strong team over the years. Rebecca Applegarth talks to Johnny Foster, President & CEO, about his company’s past, present and future.
his year provides OGARAJETS with an opportunity to celebrate. It’s been 40 years since the Atlanta, Georgia-based aircraft brokerage first opened its doors for business. “In short, we did it right,” Johnny Foster tells AvBuyer. “‘Excellence in Everything We Do’, and ‘Do the Right Thing, Right’ are core to our operation and lay at the foundation of everything we do.” This, Foster highlights, creates a strong culture of trust and confidence, translating to longstanding relationships with clients, many of whom have been clients of OGARAJETS for decades and dozens of transaction. On average, more than 95% return to OGARAJETS for their next transaction.
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“We believe this speaks quite pointedly of the value we deliver.”
Strong Teams Building Continued Success
The success of any company revolves not only around the vision and acumen of its founders, but its team – and the team at OGARAJETS is another source of pride for Foster. His father, John Foster, co-founded the company as O’Gara Aviation Company with Ed O’Gara in 1980. Squadron mates in Vietnam, the dynamics of the business team revolved around John as the visionary and Ed’s stable business acumen. “We would not be here today if it were not for Ed and his tireless patience and guidance,” Foster notes. “Ed served as a partner and owner from www.AVBUYER.com
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OGARAJETS TEAM AT THE 40TH ANNIVERSARY LUNCH
JOHNNY AND JOHN FOSTER
1980 through to 2008 and worked diligently to teach all of us how to operate a business properly. John Foster remains an integral part of OGARAJETS’ daily operation and culture today.” Sandra Wyatt is another big part of the company’s history, and managed multiple administrative roles between 1980 and 2013 – when she retired after 33 years at the company. And, having joined the team in 1990, Chris Ison just celebrated her 30th anniversary. Client-facing on an almost daily basis, Foster believes Chris to be the very best project manager and closing specialist in the industry. “Nobody manages all of the details like Chris,” he says. Johnny’s brother David served alongside him in their early career, and his tenure with the company spanned two decades (he remains active in aviation as a member of the QS Partners team today). Another jewel in the crown is Matt Huff, an aviation veteran of more than 45 years, who has been with OGARAJETS since 2003. “Matt has been an indelible member of the team, managing all aspects of technical support for our own inventory and projects that support our clients,” Foster continues. “His value in support of our clients and their operations is significant while his leadership and wisdom extended to our team is simply priceless.” Successful teams are also built with an eye on the future, and OGARAJETS is beginning its transition into a “fourth generation” team, putting in place leadership that will drive the firm on to its future goals. Serving alongside Foster on the leadership team are, what he describes as two of “the most ambitious, hard-working millennials” in Ashley Charnley and Jared Hasty. “They simply break that demographic cohort to pieces and I am confident they will help lead OGARAJETS into the foreseeable future.” www.AVBUYER.com
G650
Growing Through the Challenges
But what of the immediate future? The current COVID-19 pandemic has created a challenge for the aircraft resale industry, as it has for most business sectors. Interestingly, it’s not been from past up-and down-cycles in the market that Foster says his company has learnt the most from, preparing it for what lays ahead. “Despite surviving the economic upheavals of 1980, 1989, 2001, 2008, and now 2020, our most significant challenges came from our own doing,” Foster admits. “Simply not being disciplined in purchase and timely in sales; of inventory that we held on speculation. “Our hardest lessons came from making purchase and sale decisions based on emotion that were not founded on objective data; simply not listening to the market. And mistakes in aviation are most often expensive! “We learned a lot about ourselves and our own resolve in those challenging times. We were able to learn a lot about business and how to better conduct our own. And we grew in both knowledge and experience from those losses and hard lessons. That growth, while painful, is priceless.” Yet the COVID-19 pandemic is something nobody could have foreseen or prepared for. “It is hard to draw a parallel between the COVID-19 environment and market disruptions of the past,” Foster notes. “Those of the past were largely a result of the foundational ‘failure’ of the economic system, and came with foretelling and warning. COVID-19 came without warning. “Adding to the gravity of the many economic complexities at play, people are getting sick and dying which creates an environment of fear. The economy, much less individual enterprises, simply cannot operate in an environment of fear.”
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OGARAJETS ANNIVERSARY PROFILE
JOHNNY ADDRESSING IADA AS CHAIRMAN IN 2017
The pandemic brings a lesson Foster’s father taught him early in his career – that desperate times create desperate actions. “When people are fearful, they often act out of a sense of desperation,” he reflects. “Aviation remains largely unregulated, with very few ‘checks and balances’ to ensure buyers, seller, brokers, and other agents are acting within a set of expected professional standards.” So how should those in the business safeguard themselves and their clients from unscrupulous opportunists – especially during times like these? “It all starts with us as individuals – as professionals we must demand ethical and professional behaviors of our co-workers, our peers, our partners, and our competition, not allowing fear to creep into our own moral code.” Foster and his team talk often about the challenges faced by their clients and the industry. “These challenges are real and significant – there is no hiding from the fact. But we do not dwell on these challenges. Instead, we focus on the many opportunities a ‘pause’ in the market creates for us all.” He is confident private aviation is here to stay and will roar back, very probably stronger than ever. “No amount of Zoom meetings replaces the opportunity to meet clients face-to-face, forging deals with a handshake,” Foster says. “Likewise, company culture is also dependent on human interaction that simply cannot be replaced by video conferences and emails.”
Looking Ahead to the Next Big Milestone
While much of the focus of anniversaries is spent celebrating past achievements, they’re also a perfect time to look to the future. OGARAJETS is grasping that opportunity with both hands, and 62 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
AVBUYER.com
JOHN AND ED’S VF-191 SQUADRON
has a clear idea of what it wants to achieve by the time of its 50th anniversary in 2030. “Much of the opportunity I referenced above relates back to the work our team has been focused on over the last two months,” Foster highlights, “including a revisit of our one-, three-, five-, and ten-year strategic plans. “This pause in transactional activity has allowed us to spend significant time focused on the question of our ‘Why?’. So as we look to the next decade, we do so with buoyed confidence – even in this market. “Our planned investments are set to assure we continue to build and cultivate an excited and smart working team (there simply is no replacement for team and culture). “When we have our culture firing on all cylinders, the rest of the business largely takes care of itself. Technology to support these roles will remain a priority, but our goal is ultimately to deliver a platform to our clients that allows them to make the most informed decisions in the most efficient and cost-effective manner,” he concludes. More information from www.ogarajets.com ❙
Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.
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Finance June20.qxp_Finance 19/05/2020 15:32 Page 1
FINANCE
Buying a Jet: What are the Financing Sources Available? René Armas Maes explores the five main sources for financing business aircraft, and considers how they may be impacted by the COVID-19 pandemic...
T • • • • •
ypically, business jets can be financed through a number of traditional and nontraditional mechanisms. Five common ways to finance aircraft are:
Cash Debt (Bank or Capital Markets) Export Credit Agencies (ECA) Lessors/Finance Companies Original Equipment Manufacturer (OEM) Financing Arms
For many years, market liquidity and multiple sources of financing have been readily available for Business Aviation clients and prospects. Furthermore, the financing market has shown a tendency to be highly competitive with many players able to lend money using tailor-made structures to meet their clients’ needs. As a result, loan covenant requirements have been reduced, with competitive interest rates offered to access a larger segment of potentiallyqualified borrowers. 64 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Financing Aircraft with Cash: Cash payment in full has traditionally been the preferred mechanism of payment for any party that sells goods. With cash, hefty discounts and additional value-added options can be negotiated, particularly for buyers working directly with OEMs. In addition, cash purchases can bring important tax benefits since no interest payment deductions need to be made. Overall, this method of purchase simplifies the closing of a transaction. However, when a business jet is not paid in full (using cash), but more than 40% of the asset’s value is placed as a down payment, a lower interest rate can be negotiated and secured. Financing Aircraft with Debt: When considering a credit-based deal, the difference between bankissued debt vs. capital market debt is primarily interest rate. The former needs to issue debt (i.e. bonds) and as a result will expect a higher margin, so higher interest rates can be expected. For capital market debt, however, a large bank should be able to www.AVBUYER.com
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René Armas Maes is an International consultant and aviation professional with broad experience in business aircraft sales. He has developed multiple analysis and studies for a number of US Fortune 500 companies and Venture Capital firms, and participated as keynote speaker at a number of business aircraft conferences.
loans or financial leases. ECAs offer key government-backed guarantees, and in many cases are needed to close deals for second- and third-tier credits, as well as for new aircraft leasing companies. Buying Aircraft with OEM Financing: As a fifth option, you can be sure OEM financing arms will be competing with all the other financing options discussed.
It’s Down to the Borrower’s Needs…
It is important to note that the strategy of using cash or other funding sources available depends largely on an individual’s, or corporation’s liquidity requirements, cash flow and wealth-management needs. Prospects should factor in market conditions and conduct analysis of which financial instrument brings stronger returns.
How is COVID-19 Impacting Financing Sources?
customize a lower interest rate since it is likely to use readily available funds. Financing Aircraft via Lessors/Finance Companies: A number of leasing products including operating leases, finance leases, tax-oriented leases, synthetic leases, and sale/leaseback transactions are common – depending on a client’s needs and profile. Non-bank finance companies’ interest rates can be higher than those of commercial banks, since they are primarily backed by private sources which require higher transaction margins. However, lessors/finance companies can typically show greater creativity, risk appetite and flexibility in structuring deals to meet a prospect’s financing objectives (i.e. cash flow management and more). Financing Aircraft via ECAs: Export Credit Agencies (ECAs) such as US Export-Import Bank (Ex-Im), Export Development Canada (EDC) and the European agencies covering 36 countries offer www.AVBUYER.com
Today, with many economists expecting the larger global economies to go through a depression, global ‘earnings-per-share’ cuts occurring, and corporate profits expected to deteriorate over the next 12 months owing to COVID-19, sources for business jet financing are predicted to dry up somewhat.
Impact on Cash Purchases
As investor cash levels at banks continue to grow, cash continues to be king. Today, a common cashbacked loan instrument can be found in the ‘back-to-back’ (B2B) transaction, a two-party arrangement by which a bank advances a loan to a corporate or private banking account, based on the client’s top-tier deposit and liquid assets with the bank. As an example, imagine an individual’s cash and liquid funds at the bank are $100m, and the jet it intends to buy costs $30m. The bank loans up to 99.9% of the business jet value to the customer. Since that amount is already in the bank, either through cash deposits and/or liquid assets, there is no major risk of the client defaulting.
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“...assuming low interest rates and economic downturn will be the ‘new norm’ (at least for 2020), B2B cash guarantee transactions could accelerate significantly."
Consequently, the bank can lend the money to the client at a very attractive floating rate (perhaps just 1%). This type of deal works well in two ways: • •
First: Accessing a loan at attractive rates, the client frees up its cash for other higher ROI opportunities. Second: The bank is able to engage and retain a top-tier account while making a margin from the transaction spread itself, plus a marginal gain through the low interest rate.
In the case where a client requests a fixed rate, a B2B swap would be the best instrument for negotiating when a bank is unable to offer a fixed rate tailor-made solution. Depending on the severity of the COVID-19 impact, and assuming low interest rates and economic downturn will be the ‘new norm’ (at least for 2020), B2B cash guarantee transactions could accelerate significantly. Over the next 12-18 months as many as 50% of aircraft purchases could be represented by this financial instrument.
Impact on Export Credit Agencies (ECA) Exports Credit Agencies will continue to offer 66 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
business jet financing despite any fall-out from COVID-19. The average business jet deal has been extended to ten years as lenders try to minimize monthly payments to avoid loan defaults. (Previously, seven years was the norm.) Moreover, ECAs may well engage in monthly payment and deferral negotiations with clients, and are expected to show flexibility in this regard, like the banks have started to. Finally, ECAs should continue to provide an important support to the industry since it fills the gap when global economies are faced with market peaks and troughs, including liquidity crunch during uncertain times like these. During the next 3-6 months a lower number of potential deals are likely to be structured as financial instability impacts both buyers and agencies, and in particular causes asset depreciation.
Impact on Debt (Banks and Capital Markets)
In these COVID-19 ravaged times, the leading global banks are anticipating a large number of bad loans as clients take a financial hit from the pandemic, and they are planning to set aside billions of dollars in reserves for potential loan defaults.
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Falcon 2000LX 2011 SERIAL NUMBER 228
The 2000LX You’ve Been Searching For! If you’ve been looking for the right 2000LX, SN 228 is the answer. It offers a combination of features that make it an unparalleled offering in the 2000LX market: Newest 2000LX currently available Very low time Former Falcon demonstrator One owner - U.S. registered Maintained at Dassault Service Centers 10-passenger interior by BMW Group DesignworksUSA Enrolled in Falcon Care, ESP Gold, MSP ircraft and records conveniently located in central A U.S. for showings We invite you to come see why Serial Number 228 is the right Falcon 2000LX for you! Contact Jim Donath at Donath Aircraft Services.
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AVBUYER.com
“...economic instability, asset deflation, residual value uncertainty, and pricing volatility all bring additional challenges when considering the financing sources available." Deteriorating aircraft values and price softening are also concerns to the banks. Aircraft values are hard enough to predict in ‘normal’ market conditions. The impact of COVID-19 is bringing a new set of challenges since there are too many uncontrollable variables and unknowns, including GDP contraction, future market corrections, currency devaluations, inflation, interest rates, bankruptcies, jobs losses, and more. As business jet residual softening is expected to continue, most banks will seek to minimize their exposure, becoming less willing to lend money due to the uncertainty not only of asset value itself, but the financial health of the client, too. For existing loans, the banks are starting to execute some creative payment deferral plans to avoid defaults. They’ll become more flexible to renegotiate debt terms and offer payment options for distressed clients, as opposed to having assets on their books in a flooded pre-owned business jet market. Other strategies to avoid default could include cutting fees, extending loan timelines (reducing monthly payments) and allowing borrowers to skip a few months’ payments altogether. We may see fewer deals ahead in the financing segment. Similarly, commercial loan standards are expected to be tighter with less favourable terms.
t ad re ou Re Mo Ab
For the present, most banks are unlikely to seek to increase their aviation portfolio risk until more is known about the impact on aircraft depreciation in the post-COVID-19 world. An example of pre-COVID-19 bank and ECA financing, and the possible impact of the coronavirus on the respective financing structures, is represented here:
Impact on Lessors/Finance Companies
It is expected lessors/finance companies will maintain the same position as banks and be less willing to lend money in order to protect themselves from loan defaults. It’s possible that a few dedicated aviation lenders will be opened for new deals as falling prices, loan defaults and repossession risks increase.
In Conclusion
The acquisition of a business jet is never a decision to be taken without first researching your options thoroughly. Today, economic instability, asset deflation, residual value uncertainty, and pricing volatility all bring additional challenges when considering the financing sources available. Now, more than ever, prospective borrowers should seek expert advice and do their due diligence when entering the aircraft financing market. T
BUSINESS AVIATION FINANCE
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AirCompAnalysis JUNE20.qxp_ACAn 20/05/2020 09:07 Page 1
JET COMPARISON
GULFSTREAM G550
Jet Comparison: Gulfstream G550 vs Bombardier Global 6000 vs Dassault Falcon 8X What are the pros and cons of the Gulfstream G550 compared to
Bombardier’s Global 6000 and Dassault’s Falcon 8X Ultra-Long-Range aircraft? Find out more in the following Jet Comparison…
ver the following paragraphs, we’ll consider productivity parameters (payload, range, speed and cabin size) and cover the current and future market values of the Gulfstream G550, Bombardier Global 6000 and Dassault Falcon 8X. These aircraft are popular members of the Ultra-Long-Range & Large Cabin business jet segment, which comprises more than 2,000 aircraft in operation today.
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Gulfstream G550
The G550 traces its roots to the Gulfstream GV – the first UltraLong-Range & Large Cabin business jet produced, which started delivering in 1995. Most notable about the GV was its 6,500nm range that allowed non-stop flight between New York and Tokyo. Two new aircraft followed the GV, one of which was the Gulfstream G550 in 2003. The G550 relinquished its title as the top-end of
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Gulfstream’s in-service product line when G650 deliveries began. Nevertheless, the G550 has proved to be an exceptionally popular jet. At the end of 2019, the company announced delivery of the 600th G550, and at the time of writing there were 576 wholly-owned units in operation worldwide. Including those in shared and fractional ownership the total Gulfstream G550 fleet numbers 590. By continent, North America is home to the largest fleet percentage (65%), followed by Asia (19%) and Europe (11%), accounting for a combined 95% of the fleet.
Bombardier Global 6000
The Global 6000 derives from the Bombardier Global Express XRS, and started delivering to the market in 2012. One of the biggest differences between the Global XRS and the Global 6000 is the Rockwell Collins Pro Line Fusion avionics suite installed on the flight deck. www.AVBUYER.com
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HOW MANY
EXECUTIVE
SEATS
GULFSTREAM G550
(Manufactured between 2004-Present)
18
$61.50 Million
vs.
(2019 Model)
BOMBARDIER $62.31Million
13
$59.30Million
12
Global 6000
(Manufactured between 2012-Present)
vs.
(2019 Model)
DASSAULT Falcon 8X
(Manufactured between 2016-Present)
(2019 Model)
WHICH OF these ultra-long-range jets WILL COME OUT ON TOP HOW MUCH
RUNWAY
Global 6000
DO I NEED?
2500
HOW FAR
CAN WE GO?
(Nautical Miles. 8 Pax)
Global 6000
6,708 6,124 6,235
Falcon 8X
6,200
Falcon 8X
(Balanced field length, ft)
Gulfstream G550
5,963
Gulfstream G550
5,820 3000
3500
4500
4000
CAN WE TAKE?
(Lbs) 5,800
Gulfstream G550 Global 6000
5,770 4,200
Falcon 8X
5500
6000
LONG RANGE CRUISING SPEED? Gulfstream G550 Global 6000 Falcon 8X
(Knots)
459 488 470 459
HOW MANY
HOW MANY
WHAT’S THE
OPERATION?
EACH MONTH?
PER HOUR?
UNITS IN
NEW/USED SOLD 1 (3.5%)
58 323
589
5 (6.8%)
7 (7.1%)
VARIABLE COST
Gulfstream G550 $3,863
Sources used: OEMs, Conklin & de Decker, JETNET, B&CA, Chase & Associates
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$4,344
Global 6000
Falcon 8X
12-Month Average Figure (% = Global Fleet For Sale)
W
6500
WHAT’S THE
HOW MUCH
PAYLOAD
5000
$3,667
AVBUYER MAGAZINE Vol 24 Issue 6 2020
73
AirCompAnalysis JUNE20.qxp_ACAn 20/05/2020 08:50 Page 3
JET COMPARISON
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Table A - Payload & Range Comparison
At the time of writing there are 297 wholly-owned Global 6000s in operation worldwide. Including those in shared and fractional ownership, the total stands at 325. Europe is home to the largest Global 6000 fleet percentage, accounting for 38%, followed by North America (33%) and Asia (23%), giving a combined total of 94% of the world’s fleet, according to JETNET.
Gulfstream G550 Bombardier Global 6000 Dassault Falcon 8X
91,000 99,500 73,000
40,994 45,000 35,141
MTOW (lb)
Max Fuel (lb)
5,800
5,770
Max Payload (lb)
4,200
1,706
2,470
1,259
Avail Payload w/Max Fuel (lb)
5,767
J
5,882
5,555
MAX P/L w/avail. fuel IFR Range (nm)
Source: OEMs, B&CA.
Chart A - Cabin Comparison
Dassault Falcon 8X
Dassault’s Falcon 8X tri-jet first entered service in October 2016. It offers 500nm more range than the Falcon 7X it replaced as Dassault’s flagship business jet, gained from an additional center-fuselage fuel tank and a lighter, redesigned wing. The reworked wing also keeps the 8X competitive on short runways. To date, there are 59 Falcon 8Xs in operation, of which all are wholly owned. As of April 2020, Europe accounted for the largest Falcon 8X fleet percentage (58%), followed by North America (21%) and Asia (12%) – a combined 91% of the world’s total fleet.
Payload & Range
Source: UPCAST JETBOOK
Chart B - Range Comparison
R Gulfstream G550 Global 6000 Falcon 8X
Source: Chase & Associates
n
6,708 nm (w/8 Pax) 6 6,124 nm (w/8 Pax) 6 6 6,235 nm (w/8 Pax)
³ K I K Cruise with NBAA IFR alternate fuel reserve calculation for a 200
74 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
The data contained in Table A (top, left) are published in B&CA, June 2019 issue. As we have mentioned in previous articles, a potential operator should focus on payload capability as a key factor. As such, the Gulfstream G550’s ‘Available Payload with Maximum Fuel’ (1,760lbs) is greater than what is offered by the Dassault Falcon 8X (1,259lbs), but is less than the Bombardier Global 6000’s 2,470lbs.
Cabin Cross Sections
Chart A (middle, left) depicts the cabin cross-sections of the jets in our comparative field. The Global 6000 has more cabin height (6.25ft) and width (8.17ft) compared to the other two aircraft. Overall, the Bombardier Global 6000 provides more cabin volume (at 2,002cu.ft.), even though its cabin is slightly shorter than the other two jets. By comparison the Gulfstream G550 provides 1,812cu.ft. cabin volume and the Falcon 8X 1,695cu.ft. In terms of baggage provision, the Global 6000 also provides the greatest internal luggage volume at 195cu.ft. By comparison, the G550 has 170cu.ft volume, and the Falcon 8X has 140cu.ft. There is no external baggage volume available on the three business jets in this study. As depicted by Chart B (left), using Van Nuys, California as the origin point, the G550 shows more range coverage than the Global 6000 and the Falcon 8X. Note: For business jets, ‘Eight Passengers
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7
Leading Edge 7 to view May.qxp_Layout 1 18/05/2020 14:25 Page 1
2011 Challenger 300 s/n 20337
2009 Hawker 900XP s/n HA-108
New Paint & Interior May 2020, 96 Mo. Inspection c/w Jan 2020, GoGo L5 Avance Hi-Speed Data, For Sale or Lease
2,400 Hours TT, Engines & APU on MSP Gold, Immaculate Paint & Interior by Duncan Aviation June 2017, GoGo AVANCE L5 Wi-Fi, WAAS/LPV
1999 Hawker 800XP s/n 258400
2018 Gulfstream G500 s/n 72014
Engines & APU on 100% JSSI, ATG-5000 Wi-Fi, Currently Part 135, ADS-B w/ WAAS & LPV
U.S. Registered, Engines on P&WC PurePower Premium, APU on MSP Gold, Recent Price Reduction
2011 Gulfstream G550 s/n 5312
2007 Citation CJ2+ s/n 370
Engines on RRCC, APU on MSP Gold, 14 Pax Aft Galley Universal Floorplan w/ Fwd Crew Rest Area
Low Time – 1,535 Hours TT, Collins Pro Line 21, Two U.S. Owner Pilots Since New, Looks Like New
2013 Gulfstream G280 s/n 2013
Hallmark 10 Pax Configuration, Engines & APU on MSP Gold, GoGo ATG-5000 WiFi, ADS-B Out v2 and TCASS-II w/ Change 7.1
Leading Edge Aviation Solutions is one of the world’s premier private aviation brokers/dealers with 850+ aircraft transactions, 50+ years of experience & over $10 billion in aircraft transactions. Not just aircraft brokers, they offer a deep suite of service that can be employed long before and long after any aircraft transactions are contemplated.
AirCompAnalysis JUNE20.qxp_ACAn 20/05/2020 11:51 Page 4
JET COMPARISON
Chart C – Variable Cost Comparison Gulfstream G550
with available fuel’ represents the maximum IFR range of the aircraft at Long-Range Cruise with eight passenger seats occupied. NBAA IFR fuel reserve calculation for a 200nm alternate. The lines depicted do not include winds aloft or any other weatherrelated obstacles.
$3,863
Bombardier Global 6000
$4,344
Dassault Falcon 8X
Powerplant Details
Gulfstream’s G550 is powered by two RollsRoyce BR710-C4-11 engines, each with a thrust rating of 15,385lbs. Bombardier’s Global 6000 also utilizes Rolls-Royce powerplants – in this case a pair of 14,750lbst BR710-A2-20 engines. Dassault’s Falcon 8X uses three Pratt & Whitney Canada PW307D engines, each offering 6,722lbst.
$3,667 $0
$1,000
Source: JETNET
$2,000
$3,000
$4,000
$5,000
US $ per hour
Total Variable Cost
The ‘Total Variable Cost’ illustrated in Chart C (top, left) is defined as the cost of fuel expense, maintenance labor expense, scheduled parts expense and miscellaneous trip expense. The total variable cost for the G550 equates as $3,863 per hour, which is 5.3% more expensive than the Falcon 8X at $3,667 per hour. The Global 6000 shows the highest variable cost, at $4,344 per hour, as reported by JETNET.
Table B - Market Comparison Gulfstream G550 Bombardier Global 6000 Dassault Falcon 8X
459
470
459
Long Range Cruise Speed (Kts)
1,812 2,002 1,695 Volume Cabin 28,000 30,300 Cu Ft
30,800
6,708 6,124 6,235
$61.5 $62.3 $59.3
8 PAX w/available Fuel IFR Range nm
2019 Price 'New' per B&CA
589
323
In Operation
* Average Full Sale Transactions in the past 12 months as of March 2020; Source: JETNET. Date courtesy of B&CA; JETNET
58
7.1%
6.8% % For Sale
3.5%
7
5 Average Sold Per Month*
1
Aircraft Comparison Table
Table B (left) contains the prices for a 2019 model Gulfstream G550, Global 6000 and Falcon 8X, along with the long-range cruise speed and range numbers (all sourced from B&CA). The cabin volumes are from Conklin & de Decker, while the number of aircraft inoperation, the percentage for sale, and average sold are from JETNET. As of this writing, the Gulfstream G550 had 7.1% of its fleet for sale, compared to 6.8% for the Global 6000 and 3.5% for the Falcon 8X. The average number of new and used transactions (units sold) per month over the previous 12 months for the Gulfstream G550 is seven, compared to five for the Global 6000 and one for the Falcon 8X.
Depreciation Schedule
BOMBARDIER GLOBAL 6000
76 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period. In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where
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AirCompAnalysis JUNE20.qxp_ACAn 20/05/2020 14:09 Page 5
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depreciation is based on a straight-line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelve-year recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six- year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year. Table C (top, right) depicts an example of using the MACRS schedule for a 2019 model Gulfstream G550 in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods, assuming a used retail value of $61.5m, per B&CA. Table D (middle, right) depicts an example of using the MACRS schedule for a 2019-model Bombardier Global 6000 aircraft in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail value of $62.31m, per B&CA. Table E (right) depicts an example of using the MACRS schedule for a 2019 model Dassault Falcon 8X in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail value of $59.3m, per B&CA.
J
Table C - G550 MACRS Depreciation Schedule 2019 Gulfstream G550 - Private (Part 91) Full Retail Price - Million $61.500 1
Year
20.0%
Rate (%)
2
32.0%
3
19.2%
Depreciation ($M)
$12.300
$19.680
$11.808
Cum. Depreciation ($M)
$12.300
$31.980
$43.788
Depreciation Value ($M)
$49.200
$29.520
$17.712
4
5
11.5%
11.5%
6
5.8%
$7.085
$7.085
$3.542
$50.873
$57.958
$61.500
$10.627
$3.542
$0.000
2019 Gulfstream G550 - Charter (Part 135) Full Retail Price - Million $61.500 Year
1
Rate (%)
14.3%
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
2
24.5%
3
17.5%
$8.788
$15.061
$10.756
$8.788
$23.850
$34.606
$52.712
$37.650
$26.894
4
5
12.5%
8.9%
$7.681
$19.213
7
8.9%
8
4.5%
$5.492
$5.486
$5.492
$2.743
$47.779
$53.265
$58.757
$61.500
$13.721
$42.287
6
8.9%
$8.235
$2.743
$0.000
Source: Vref
Table D - Global 6000 MACRS Depreciation Schedule 2019 Bombardier Global 6000 - Private (Part 91) Full Retail Price - Million $62.310 Year
Rate (%)
1
20.0%
2
32.0%
3
19.2%
Depreciation ($M)
$12.462
$19.939
$11.964
Cum. Depreciation ($M)
$12.462
$32.401
$44.365
Depreciation Value ($M)
$49.848
$29.909
$17.945
4
11.5%
5
11.5%
6
5.8%
$7.178
$7.178
$3.589
$51.543
$58.721
$62.310
$10.767
$3.589
$0.000
2019 Bombardier Global 6000 - Charter (Part 135) Full Retail Price - Million $62.310 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
14.3%
2
24.5%
3
17.5%
$8.904
$15.260
$10.898
$8.904
$24.164
$35.062
$53.406
$38.146
$27.248
4
12.5%
$7.783
$19.466 $42.844
5
8.9%
6
8.9%
7
8.9%
8
4.5%
$5.564
$5.558
$5.564
$2.779
$48.409
$53.967
$59.531
$62.310
$13.901
$8.343
$2.779
$0.000
Source: Vref
 Table E - Falcon 8X MACRS Depreciation Schedule
Compare, Contrast, Decide with
AvBuyer
2019 Dassault Falcon 8X - Private (Part 91) Full Retail Price - Million $59.300 Year
Rate (%)
1
20.0%
2
32.0%
3
19.2%
Depreciation ($M)
$11.860
$18.976
$11.386
Cum. Depreciation ($M)
$11.860
$30.836
$42.222
Depreciation Value ($M)
$47.440
$28.464
$17.078
4
11.5%
5
11.5%
6
5.8%
$6.831
$6.831
$3.416
$49.053
$55.884
$59.300
$10.247
$3.416
$0.000
2019 Dassault Falcon 8X - Charter (Part 135) Full Retail Price - Million $59.300 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
14.3%
2
24.5%
3
17.5%
$8.474
$14.523
$10.372
$8.474
$22.997
$33.368
$50.826
$36.303
$25.932
4
12.5%
$7.407
$18.525 $40.775
5
8.9%
6
8.9%
7
8.9%
8
4.5%
$5.295
$5.290
$5.295
$2.645
$46.070
$51.360
$56.655
$59.300
$13.230
$7.940
$2.645
$0.000
Source: Vref
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AirCompAnalysis JUNE20.qxp_ACAn 20/05/2020 09:10 Page 6
JET COMPARISON
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G
Productivity Comparisons
1. 2. 3.
Range with eight passenger and available fuel; The long-range cruise speed flown to achieve that range; and The cabin volume available for passengers and amenities.
Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed and cabin size. After consideration of the price, range, speed and cabin size, we can conclude that all three business jets display a high level of productivity in their field. The G550 has the greatest range of the three-candidate aircraft in this study. However, the Gulfstream G550 price and variable cost per hour are between the two competitors. For the lowest price and variable cost, operators should consider the Falcon 8X, whereas if they value more cabin space and/or long-range cruise speed, the Global 6000 is the better option.
Chart D - Productivity Comparison $100.0
Price (Millions)
The points in Chart D are centered on the same aircraft. Pricing used in the vertical axis is as published in B&CA. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:
$80.0 $60.0 $40.0
2019 Gulfstream G550
2019 Bombardier Global 6000
2019 Dassault Falcon 8X
$20.0 $0.0 0.000
4.000
8.000
12.000
Index (Speed x Range x Cabin Volume / 1,000,000,000)
Summary
The preceding paragraphs touched upon several of the attributes that business aircraft operators value. There are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buying decision, however. The Gulfstream G550 continues to be very popular today and has delivered the most business jets in its class for good reason. Operators in the market should find the preceding comparison useful. Our expectations are that the Gulfstream G550, which started delivering in 2003 and has now been replaced by the G600 model on Gulfstream’s production line, will continue to do very well in the pre-owned market for the foreseeable future. T
Mike Chase’s analytical and consultancy services are highly valued within the Business Aviation industry. He is founder and president of Chase & Associates, and works closely with several respected sources to compile his unique Aircraft Comparative Analysis features. Contact Mike via mike@avbuyer.com
78 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
DASSAULT FALCON 8X
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The key to simplifying your next aircraft transaction is our experience. \ Business Aviation Simplified.
The goal of every business aviation transaction is the same—to get people from point A to point B as quickly and efficiently as possible. On the other hand, the needs of each business aviation client are unique. Which is why we focus on creating customized financial solutions designed to meet your unique requirements. From freeing up cash to meeting aggressive deadlines, our goal is simple: to provide the most straightforward process in the industry and make aircraft financing simpler. It’s what happens when you’re only focused on one thing.
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Values Intro Feb19.qxp_Finance 20/05/2020 11:58 Page 1
VALUES - MEDIUM JETS
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Business Aircraft Values: Medium Jets Of all the business jet
categories, none does more to balance
capability with utility
than the Medium Jet segment; and no
segment provides
more options, either. or the purpose of our Retail Price Guide, Medium Jets are loosely defined as aircraft with a Maximum Take-Off Weight between 20,001-40,000 lbs. There’s no disputing the advantages of space as you step into a Medium Jet cabin, particularly when applied to longer trips. That is ultimately where the Medium Jets’ basic advantage comes into play over the Light Jet segment. Medium Jets tend to cruise towards the upperend of the private jet speed range (between Mach 0.78 and Mach 0.85). While on average faster than the Light Jet, a Medium Jet’s superior speed generally provides only a few minutes of gain on the typical Business Aviation trip of 350 to 500 miles, but the difference will become noticeable on longer legs exceeding 1,000 miles. In terms of range, the average Medium Jet can reach most of the US non-stop from almost anywhere else within the US, making them excellent candidates for the operator with regular transcontinental travel needs. That range capability also gives the crew the flexibility to string together a sequence of stops that total the same distance – making it possible for a Medium Jet to cover multiple locations and still get home at the days’ end, without buying fuel along the way. Runway requirements for Medium Jets are generally longer than the average length needed by a Light Jet – but nevertheless Medium Jets can still access a significant percentage of the
F
80 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
secondary airports serving most of the 150 largest metropolitan areas in the US. Indeed, Medium Jets generally can match their Large Cabin kin in terms of speed and, to a point, their range, while providing reasonable office amenities that are competitive with most larger aircraft. With all of the above considered, it is little wonder that the Medium Jet segment is the biggest selling, deepest segment across the business aircraft market.
Medium Cabin Jet Price Guide
The following Medium jets’ Average Retail Price Guide represents current values published in the Aircraft Bluebook–Price Digest. The study spans model years from 2001 through Spring 2020. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Cessna Citation Sovereign+ values reported in the Spring 2020 edition of the Bluebook show $10.5m for a 2016 model, $10.0m for a 2015 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration. Note: We have included 28 aircraft models in the following Medium Jets average price guide.
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Castle Air June.qxp_Layout 1 18/05/2020 14:31 Page 1
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Retail Values FEB20.qxp_RPG 20/05/2020 09:27 Page 1
VALUES - MEDIUM CABIN JETS
Medium Cabin Jets: Average Retail Price Guide MODEL YEAR $
2020 US$M
2019 US$M
2018 US$M
2017 US$M
2016 US$M
2015 US$M
2014 US$M
2013 US$M
2012 US$M
11.0
10.2
9.7
3.8
3.4
3.2
4.3
4.0
3.2
2.9
8.4
7.4
8.0
7.6
7.2
6.4
5.9
5.6
2011 US$M
MODEL 12.0
BOMBARDIER CHALLENGER 300 BOMBARDIER LEARJET 60XR BOMBARDIER LEARJET 60SE BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR BOMBARDIER LEARJET 40
14.0
CESSNA CITATION X+ 750
13.0
12.0
11.0
10.0
CESSNA CITATION X 750 CESSNA CITATION LATITUDE 680A
15.0
13.5
11.5
10.5
10.0
CESSNA CITATION SOVEREIGN+680
16.0
13.0
11.5
10.5
10.0
9.5
CESSNA CITATION SOVEREIGN 680 12.0
CESSNA CITATION XLS+560
9.0
8.2
7.8
7.3
6.8
17.0
16.0
15.0
14.0
13.0
7.8
7.3
6.8
9.0
CESSNA CITATION XLS 560 CESSNA CITATION EXCEL 560
DASSAULT FALCON 2000 DASSAULT FALCON 50EX
19.0
GULFSTREAM G280
12.0
11.0
6.0
GULFSTREAM G200 GULFSTREAM G150
6.3
5.8
5.3
GULFSTREAM G100
HAWKER 4000
3.8
3.6
HAWKER 900XP
5.1
4.6
HAWKER 850XP PRO LINE HAWKER 800XP PRO LINE HAWKER 800XP 3.1
HAWKER 750
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
82 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
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Retail Values FEB20.qxp_RPG 20/05/2020 09:28 Page 2
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What your money buys today
Spring 2020 2010 US$M
2009 US$M
2008 US$M
2007 US$M
2006 US$M
2005 US$M
2004 US$M
7.2
6.7
6.5
9.2
8.7
8.2
7.7
3.0
2.8
2.6
2.5 2.5
2003 US$M
2.6
3.4
2.4
3.2
2.2
3.0
2001 US$M
6.2
MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 300 BOMBARDIER LEARJET 60XR
2.3
2.2
2.1
BOMBARDIER LEARJET 60SE 2.0
3.6
2002 US$M
2.9
2.6
2.5
2.3
1.9
1.7
2.6
2.4
2.1
2.0
1.8
1.4
1.7
1.5
1.3
1.9
1.7
BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR
1.6
1.5
BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR
1.2
BOMBARDIER LEARJET 40
CESSNA NEW CITATION X+750 6.4
5.4
4.8
4.2
3.8
3.6
3.4
3.2
3.0
2.8
CESSNA CITATION X 750 CESSNA CITATION LATITUDE 680A CESSNA CITATION SOVEREIGN+680
6.8
6.5
6.2
5.4
5.2
5.0
4.8
4.7
4.7
5.9
5.5
5.1
4.8
CESSNA CITATION SOVEREIGN 680 CESSNA CITATION XLS+560
4.2
4.0
3.8
7.0
6.5
6.0
4.5
4.3
4.1
3.6
CESSNA CITATION XLS 560
3.1
2.9
5.5
5.0
3.8
3.4
2.8
4.7 3.0
2.7
CESSNA CITATION EXCEL 560
4.3
DASSAULT FALCON 2000
2.7
DASSAULT FALCON 50EX
GULFSTREAM G280 5.6
5.2
4.8
4.4
4.0
4.8
4.3
3.8
3.3
2.8 2.6
3.8
3.5
3.0
2.8
2.6
GULFSTREAM G200 GULFSTREAM G150
2.5
2.3
2.2
2.0
GULFSTREAM G100
3.4
3.0
2.8
HAWKER 4000
4.1
3.7
3.3
HAWKER 900XP
3.2
2.9
2.6
2.3
HAWKER 850XP PRO LINE
2.0
HAWKER 800XP PRO LINE 2.0
2.6
2.2
1.9
1.9
1.8
1.7
1.6
HAWKER 800XP HAWKER 750
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
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AVBUYER MAGAZINE Vol 24 Issue 6 2020
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FLIGHT DEPARTMENT MANAGEMENT
With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer.
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How to Keep a Flight Department’s Value in Difficult Times The impact of COVID-19 sprung unforeseen challenges on flight operations round the world. Andre Fodor shares tips and strategies from conversations with fellow flight department managers on adapting and retaining value in this ‘new normal’… participate in the monthly business meetings of the board of directors at my base airport. This month, with social distancing measures in place, the meeting was held via videoconferencing. Our airport handles hundreds of thousands of operations, and pumps millions of gallons of fuel annually. Looking at the latest activity report, however, traffic compared to the previous month was down 75%. Moreover, the air tower had cut six hours from its daily operations, and noise complaints were at an all-time high (probably due to more people being home when they would usually be at work). These are uncharted times, and trying to adapt to them presents challenges. Yet, I’m amazed by the resilience of people. I’ve taken several calls from friends and peers in the industry regarding how to manage the flight department in the face of the challenges. The conversations all follow a similar pattern: Everybody is on a similar footing regarding the importance of mutual cooperation between our principals and our flying teams.
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Adapting to the ‘New Normal’: Example A
On one call, a newly-appointed chief pilot who oversees a flight operation with two Large-Cabin Jets called to discuss how his principal had tasked him with reducing the cost of his operation. In his case, the principal was expecting one of the pilots to be laid off. Having discussed how this is not the time for valuable, loyal team-members to be made unemployed and establishing that his principal flew more than 800 hours annually, we concluded that his
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operation was already running lean. We worked on an alternative proposal that showed planned cost-savings while highlighting the team’s focus on providing the principal maximum value, benefit and service. The proposal showed the principal that his flight department is at the forefront of his business efforts, and acts, first and foremost, in his best interest. Within the proposal, the following practical solutions were outlined: •
•
• •
All pilots would be placed on a rotating vacation, using their accumulated time-off (thereby reducing some economic liability to the principal while operations were at a standstill). The entire team would accept an immediate salary reduction of 30%, thereby cancelling the salary of the pilot that would otherwise need to be laid off. The pilots would become responsible for the cleaning, ‘run-ups’ and general upkeep of the aircraft, further reducing costs. One of the airplanes would be moved to a cheaper hangar.
The chief pilot initially balked at the idea of a salary reduction and felt he would need to consult the team. If this discussion speaks to your own flight department’s circumstances, it’s important to remember that a similar decision may be necessary for the sake of the team. Managers must make difficult decisions that preserve, honor and protect both the principals and the employees.
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Adapting to the ‘New Normal’: Example B
Another flight department manager called and made an unusual remark. His company is doing very well during the COVID-19 pandemic, and its factories are running at 300% over the normal demand. The company recently announced a bonus payment to all employees, yet the flight department had not flown in two months. This flight department manager felt that the workers on the factory floor deserved the bonus, but that his flight department did not. It’s important to discuss such concerns with the company’s CEO. The fact that this flight department manager was concerned with the issue showed care, sensitivity and diligence that would resound well with his principal (itself adding value to the flight department in the CEO’s thinking that goes beyond the flight operations themselves). The CEO was receptive, requesting ideas. A proposition was made to retain the flight department bonus, placing it into a reserve fund that would be used to smooth out any future cost-cutting if necessary. Moreover, with flying down it was decided that the pilots would be assigned online training to maintain currency, and they were encouraged to find volunteering opportunities (providing they minimized their risk of exposure to coronavirus since their priority is to stay fit for flight).
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“It’s a time to spread the purpose, benefit and safety that Business Aviation brings to people and their business.”
A Time for Educators and Advocates
While there are a few principals who only think about themselves, making harsh cuts with little consideration for the dedication and service their pilots delivered in the good times, there has been far greater extension of good will and protection of mutual interests. Yet there’s no denying that these are challenging times. As flight department managers and chief pilots, we need to be proactive. If I were to offer a prediction of what is ahead, there will almost undoubtedly be a retraction. This is the time for us all to become educators, public speakers and advocates of our trade. It’s a time to spread the purpose, benefit and safety that Business Aviation brings to people and their business. A part of that is how we become a part of the solution to the current difficulties. As employees in the flight department, remember to invest in good will and great actions. Then take the time to help our affected colleagues and nurture the newcomers to our amazing business of flying. This is how to grow strong out of a ‘new normal’. ❙
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FLIGHT DEPARTMENT MANAGEMENT Mario Pierobon is a safety management consultant and content producer. He currently is working on a research project investigating aircraft ground handling safety. Contact him via marioprbn@gmail.com
Trip Planning: What Else to Consider With COVID-19 The coronavirus pandemic has created several more factors for flight departments to work around when planning international travel. Mario Pierobon discusses these with David Camargo and Henry Le Duc of UAS... s if there wasn’t enough planning ahead of a business trip (with the actual flight plan, aircraft preparations, and multiple other aspects of the mission), more recently COVID-19-related issues are adding to the complexities. According to David Camargo, global risk mitigation manager at UAS, preparation (in the context of the COVID-19 pandemic) must begin well before the flight leaves. “The crews need to make sure that they are actually going to be able to enter the location where they’re trying to fly. Not every country has lifted the restrictions yet and several are still enforcing them.” Having done that, crews also need to check whether they’ll be able to leave the aircraft at the location. In many places, the airplane can land, but people will not necessarily be permitted to exit the aircraft. “It is also important for people to know what safety precautions they should take,” Camargo adds. “Flight crews have to assume that wherever they’re
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flying, resources will not be available. “Even in the United States you won’t know what you’re going to be able to access or not,” he warns, so it helps to travel assuming that you won’t be able to acquire resources on the ground. A by-product of the pandemic is that it’s forcing sound security practices at many locations, where “people are not even let off the aircraft in order to minimize risk,” Camargo reiterates. It’s therefore important to keep up-to-date with restrictions and, if possible, have an accessible alternate.
Flight Planning With Moving Targets
“The planning phase of a flight is where most of the work is going to be, which is important in order to minimize exposure on the ground,” Camargo notes. Operating requirements have changed, however, and they continue to change in many countries on an almost daily basis. “In this context the role of the trip support providers has become more important as they keep up with these requirements every day,” adds Henry www.AVBUYER.com
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Le Duc, regional operations manager, UAS. He highlights that while operators may wish to travel to the same location they did just two weeks before, operational conditions may have changed there completely. “Initially, right after COVID-19 began and things started shutting down in the Western world, China started to open up,” he recounts. But if an operator flew into China’s busy airports in Shanghai and Beijing to pick up people and cargo, such airports have become inundated with requests. “Each trip has been different. For someone who may not be going there every day, it can be a real challenge, and here is where the role of the trip support provider comes into play. They keep up with all the changes and can help make the trip go smoothly – whether from a service, security or a credit standpoint. “It’s the job of the people we have on the ground to ensure that they help us gather this information, along with the information that is readily available from the airport authorities,” Le Duc continues. “We also have people that are involved in the aviation industry across the world that will get the updates to us and we can accumulate those.” Partnerships with intelligence providers and regular governmental regulations updates [not just those pertaining to aviation] are also critical to trip www.AVBUYER.com
support providers getting an accurate depiction of what a client is going to face when on the ground, Camargo explains. “Local relationships allow trip support providers to give Business Aviation operators more accurate information as to what is available on the ground and what is not.”
Security Situation Heightened
As far as the security situation in general is concerned, the parts of the world that were inherently dangerous for foreigners before COVID-19 continue to be so now. “The threat of theft/burglary that might be posed to, say, an American crew as a result of perceived affluence won’t have changed,” Camargo says. “It’s simply that COVID-19 has been added to the threat within the region.” Camargo predicts that we will to start to see the economic impact affecting the security situation a lot more than it did before, “because economic problems are going to happen on a global scale. So, when one enters a security-sensitive country one has to be cognisant of the fact that governmental resources are going to be short-staffed. And that poses an additional risk. “Access for operators to supplies in a securitysensitive country is going to be restricted,” he continues. “There might also be currency issues, as it
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“...having an accurate intelligence profile of the country ahead of a visit, while always important, is now critical.”
is very difficult for some countries to offer credit. “A lot of places are functioning on a cash-only basis,” he explains. “Therefore, having an accurate intelligence profile of the country ahead of a visit, while always important, is now critical.”
The Impact on Crew Duty Days
Other considerations might include whether curfews are in place. “The crew definitely needs to think about not just when the aircraft is authorized to land at the airport, but also how long it takes to secure the aircraft and pass through customs and immigration – and whether this will put the crew in a situation whereby they have to transit the city close to curfews,” Camargo says. During the pandemic, fuelling hours have often been changed repeatedly by airports. “The fuelling hours for many airports have been scaled back because of personnel and airport accessibility issues,” Le Duc explains. “Many of the handlers in this field around the world scaled back their operational hours. A few have even closed completely, until further notice.”
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While operators may have grown accustomed to flying virtually anywhere with little or no notice, Le Duc argues “it is not going to be that easy for some time.” The majority of countries have incorporated some new health screening processes (e.g. checking for temperature, questionnaires, and separating the testing facilities from the main terminal). “It is important to know how long the health screening adds on top of a long duty day,” says Le Duc. “Many countries have an immediate quarantine requirement when somebody arrives, and this has forced a lot of operators into situations where they’ve had to extended duty days. Augmenting the crew and paying close attention to this is going to be important,” he suggests. Underscoring the challenges of travelling in times like these, Camargo says this is where the real value of trip support providers shines through. “Leaning on the trip support provider, asking questions, working with them and really exploring what they have to offer will make essential travel at this time not only easier, but much safer,” he concludes. ❙
MARIO PIEROBON ARTICLES
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AVIONICS
What’s the Latest on Surveillance in Aviation? Surveillance, the third element of Communication, Navigation and Surveillance
(CNS), plays the crucial role of situational awareness between aircraft, air traffic control, and also the authorities for emergency tracking. Ken Elliott explores…
here have been several updates in the area of Surveillance lately, but none as impactful to operators as Automatic Dependent Surveillance Broadcast Out (ADS-B Out). By and large, ADS-B Out is already in place and fully mandated, but there are ongoing developments... First, ‘surveillance’ can be outlined as:
T • • • •
Aircraft to Aircraft avoidance Air Traffic Control awareness Emergency Authority awareness (via ELT/ULB) Crew awareness.
Awareness, including monitoring, is a precursor to avoidance, enabling controllers and pilots to make decisions based on the detection and the presentation of data. In the case of TCAS II and TAWS, these offer very specific instructions for avoidance. So, while many systems provide pilots with the data to inform decisions, some instruct the avoidance solution – an awareness and avoidance toolset for the pilot. While this article does not address the awareness tools of 92 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
controllers, it is important to note that ADS-B and ADS-C (and their sub-component transponders) are intimate to both pilots and controllers.
Some Important Surveillance Terms
To begin with, there are many terms used throughout aviation surveillance. Table A (top right) lists some of the important ones, including those used within this article.
Surveillance from a Crew Perspective
Crew awareness to inform avoidance actions is derived from a number of on-board detection and receiving systems, including: • • • • •
Automatic Dependent Surveillance In (ADS-B In), if installed Traffic awareness and avoidance (TAS or TCAS) Terrain and obstacle awareness and avoidance (TAWS) Weather, as received for awareness (Sirius XM or ADSB/FIS-B) Weather, as detected on-board for awareness (Weather Radar) www.AVBUYER.com
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• • •
Turbulence and Wind Shear, for awareness and avoidance Lightning Detection via dedicated onboard sensor or remote weather service Vision awareness (SVS, EVS, CVS, LiDAR (unmanned)).
Meanwhile, ADS-B Out, using Enhanced Transponders, ELTs and ULBs, Flight Tracking, and all Recording equipment can operate semi-autonomously, providing important information to the external world. Table B (overleaf) depicts the technologies found onboard aircraft that are surveillance related. These are extensive and some operate as part of Communication and Navigation (i.e., ADS-C as part of FANS, to ensure aircraft are flying within oceanic track deviation limits). Aircraft avionics system identifiers, from Table A (above) are related to these technologies, and are included.
ADS-B Services: What’s the Latest?
Now that ADS-B Out has been widely mandated and implemented, both in the air and on the ground, there is a focus on expanding it to worldwide coverage and providing cockpit display of ADS data (i.e. ADS-B In). Modern business aircraft are ready for ADS-B In, with respect to provisioning, but manufacturers have held off from full implementation, partially because – unlike ADS-B Out – the standardized parameters of ADS-B In are not yet finalized. ADS-B In is popular among smaller GA aircraft (that come under FAR Part 23, for example), where there is more flexibility of display data expectation. While it’s not currently mandated, ADS-B In offers many features for pilots. In the US, ADS-B operates on two frequencies: 1090 and 978MHz. While 1090 shows other 1090 broadcasting traffic, it also receives and displays ADS-R www.AVBUYER.com
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(Rebroadcast) traffic operating on 978. This data can be displayed on ADS-B In compatible cockpit displays. Furthermore, if a 978 receiver and display is installed the aircraft can receive and present ATC and weather services. These are extensive and will include the following data: TIS-B: • Airmet and Sigmet (including Convective) • METAR • CONUS Nexrad • Regional Nexrad • Notam and Pirep • Special-use airspace (SUA) status (including TFRs) • TAF • Winds and temperatures aloft FIS-B: • Lightning • Turbulence • Icing • Cloud tops • Weather advisories • Graphical Airmet. Understanding that ADS-B Out on its own is a useful surveillance tool is important enough. But even more significant is how ADS-B is applied as an operational tool throughout the airspace. Just listing some of its wider functionality would include: • • • •
Airport Surface Surveillance In-Trail Procedure (in oceanic airspace) Visual Separation in Approach Flight Deck Interval Management. AVBUYER MAGAZINE Vol 24 Issue 6 2020
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Much of ADS-B’s future centers on three main operational areas: • • •
Spacing ATC Separation Self-Separation
Crucial for worldwide operations is to have global ADS-B coverage. This will be achieved through the Space-Based ADS-B initiative. The great news about Space-Based ADS-B is that it will largely function with existing mandated ADS-B equipment. It does, however, require a top-mounted antenna for satellite reception. Fortunately, this usually already exists on business jets. How it operates is that companies, such as Aireon will provide satellite-derived ADS-B data to Air Navigation Service Providers (ANSPs) and other aviation stakeholders. Aireon, as the source, hosts its ADS-B capability on Iridium Low Earth Orbit (LEO) satellites. One aim of Space-Based ADS-B, is to combine with Controller Pilot DataLink Communication (CPDLC) over oceanic regions, to enable 15nm separation and optimized climbs. Also, the FANS ADS-C functionality will eventually be absorbed by Space-Based ADS-B. Other companies using CubeSats and Nano Satellites are emerging with potentially economical worldwide ADS-B solutions. In the end, it is all about who controls and provides the data – and with cloud-based avionics on the horizon, your favorite ANSP will be providing all the information over the internet. It is worth noting that although ADS-B Out is largely deployed in the developed world, delays in Europe have recently pushed out the mandate compliance dates, as shown in Table C (opposite). 94 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Traffic Awareness and Avoidance: What’s the Latest?
Not all aircraft traffic alert systems are of the same flavor. The most advanced, TCAS II version 7.1, provides clear and immediate collision avoidance instructions to pilots. However, many aircraft have TCAS I that advises but does not instruct the action to take. Other systems termed TAS provide a general situational awareness of you in relation to other aircraft. Some TAS systems are embedded in other avionics and eventually the higher-end TCAS II will be embedded with other surveillance technologies to provide composite flight maneuver instructions. For those operating TCAS II it is now essential to have software version 7.1 installed to operate along the most popular routes worldwide. Product manufacturers have commenced development of the new ACAS X. Amazingly, it is envisaged that this new generation of TCAS II will not require many changes to the aircraft (especially those that would require full interior or headliner removal, such as an antenna change). ACAS X will evolve in several phases and for different aviation sectors, namely: • •
ACAS XA: As a general purpose baseline ACAS X and successor to TCAS II. Makes active interrogations to detect intruders. ACAS XO: As a specific version of ACAS XA, this is designed for tighter operations, such as narrowly-spaced parallel approaches (where ACAS XA may not be suitable due to a lesser tolerance and as a result, more erroneous alerts). Standards for the XA and XO ACAS were published in 2018 under EUROCAE ED-256 and RTCA DO-385. www.AVBUYER.com
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• •
ACAS XU: Specially developed for unmanned aircraft with different maneuverability and avoidance requirements, including resolution for horizontal conflicts. ACAS XP: Later, a version of ACAS X will be developed as a passive system using ADS-B, intended as a general aviation solution.
ACAS X will rely on software to direct the system to make decisions based on probability distributions for possible outcomes, sequenced over time. This is a different approach to the existing methodology used in TCAS II.
Terrain Awareness and Warning: What’s the Latest?
While traffic awareness and collision avoidance is all about keeping aircraft separated from one another, terrain awareness and warning refers to keeping aircraft away from obstacles and Mother Earth. Today, terrain sensing includes several individual technologies, including; TAWS, SVS, EVS and LiDAR. Traditionally TAWS is taken as the system that will keep you from flying too close to fixed and solid objects. However, TAWS can now be reliably supplemented with synthetic vision that is data derived; enhanced vision that is ‘videographic’ real-time; and geospatial remote-sensing LiDAR. A future technology will combine all of these, extracting the strengths of each, or skewing the strengths to benefit the different aviation user needs. For example, high-flying enroute traffic will not require the same level of terrain, or obstacle, scrutiny as an unmanned or eVTOL craft transiting through Chicago. Equally, a high-flying jet approaching a mountain peak is a very different dynamic to an all-axis maneuver of an eVTOL with a close-in but low-speed closure rate.
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Additional to the standard TAWS is the ability of some systems to provide advanced runway awareness. Honeywell led the way some years ago with its Runway Awareness and Advisory System (RAAS). This system is all about operating in and out of runways, specific to airports. It has since developed into several optional versions and subscriptions. Expect to see more pre-emptive systems aiding pilots into and out of airport runways, taxiways and movement areas. Lastly, for TAWS and its future derivatives, anticipate variations to the interface with the aircraft’s Automatic Flight Control System, taking direct avoidance action with the terrain or obstacles such as towers in emergency situations.
Emergency Location and Real-Time Flight Tracking: What’s the Latest?
It took a long time to locate Air France flight 447, while Malaysian Airline flight 370 was never found. These difficulties in modern times have motivated aviation authorities to better track and locate aircraft anywhere on the planet. Again, as with FANS, PBN and ADS-B, satellites become the vehicle to enable solutions despite their potential vulnerability to nefarious intent. Aireon and others will provide the ADS-B-derived tracking solution, while for location information direct from the aircraft there’s ELT (via satellite). Some tracking solutions, such as Spidertracks, employ a small avionics box on the aircraft and provide crucial tracking information via a subscription service. Apart from real-time aircraft location, these products may provide air-to-ground messaging and virtual flight recording as part of an overall service. Emergency Authorities, such as the satellite networked COSPAS/SARSAT system, co-ordinate emergency responses across the world in reaction to the surveillance of emergency
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signals from aircraft Emergency Locator Transmitters (ELTs). This set up uses two types of satellites and a developing third: • • •
Low-altitude Earth Orbit (LEO) as the LEOSAR System Geostationary Earth Orbit (GEO) as the GEOSAR System Medium-altitude Earth Orbit (MEO) as the upcoming MEOSAR System
Modern ELTs are wired to the aircraft’s navigation system, and can provide the aircraft’s last known position as part of their transmitted data. In oceanic emergencies, the aircraft’s recorders are fitted with ULBs, activated by salt water, ‘shorting’ the open circuit of the beacon’s battery.
Recording (as part of surveillance): What’s the Latest?
Whatever the aircraft is up to, it will be monitored and possibly recorded somewhere. Significant to surveillance is the ability to keep a record, and this may or may not be on your aircraft. Traditionally, recording has occurred at voice and data black boxes. Over the years manufacturers have combined separate boxes into one, and have added data to the voice channel to accommodate datacom. QARs are very popular in business jets to monitor performance data, as well as to transfer this in real time (or when on the ground) to vested parties. Eventually, recording will move into the virtual cloud and it has already started to do this in a small way.
Dealing With the Environment
Mother Nature presents several obstacles to flying, including weather, lightning, turbulence, wind shear and more. There is also visibility, impacted by flying through cloud or ice on windshields. Flight control is also impacted by ice and snow and there are others one could mention. Modern aircraft use radar technology, complimented by real-time weather, to display what lies ahead and to inform pilots on the safety of their routes. The radar technology is now so sophisticated that it can tease out tiny sets of data to predict wind shear and turbulence, while having greater range and resolution. New radars now track the storms and operate predictively. Separate lightning detection is overlaid with radar data on the same display.
monitoring faster and higher is way different to lower and slower. The higher airspace is open, often defined by routes, and only occasionally interrupted by high terrain. The lower airspace will require a dynamic localized response, where obstacles and variable terrain abounds. Embedded avionics, virtual cloud technology and open architecture will advance surveillance in leaps and bounds as we move forward in a connected world. Lastly, surveillance creates concerns over privacy and interference. If flight departments use secure service providers who count privacy and tampering vulnerability as if they are as important as the services they offer, their operations should be protected from the worst of it. ❙
What’s the Future of Surveillance?
Because aircraft need to traverse borders, oceans and continents it is inevitable that regional variations in operational requirements will decrease, despite current trends. This, in turn, steers manufacturers to think globally and design for a narrow range of specifications, with only minor differences in regional application. For surveillance, this means a focus on its application for different user groups knowing that what works for one aviation authority is likely to function in another. User groups, on the other hand, have specific requirements where t ad re ou Re Mo Ab
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AVIONICS
Ken Elliott is a veteran with 52 years of aviation experience focused on avionics, in General and Business Aviation. Having a broad understanding after working in several countries on many aircraft types and avionics system, he has contributed to several work groups and committees, including for NextGen, Airport Lighting, Human Factors, Unmanned Aircraft and Low Vision Technology. In retirement, he is striving to give back the knowledge gained with an eye on aviation’s future direction.
on AVBUYER.com
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WE’RE HERE FOR YOU FROM HORIZON TO HORIZON We want to reassure you, our clients and partners, that we are IFSF UP TVQQPSU ZPV GSPN TUBSU UP mOJTI GSPN IPSJ[PO UP IPSJ[PO We haven’t changed. Our business model is designed to adapt to a changing world, and we are moving forward to meet your needs. We’re still here working for you, we’re still researching, and we’re still developing the tools you need to sustain your business and help you grow during this crisis and beyond. We have the intelligence you need when you need it most. As you work to sustain, to grow, to gain an advantage, we are here for you. Let’s do this together.
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ACTIONABLE INTELLIGENCE FOR CONNECTIVITY
INCLUDING... Cabin Connectivity: Getting it Right First Time What’s Next for Business Aircraft Cabin Connectivity? What Does Cabin Connectivity Cost?
CONNECTIVITY SPECIAL
Connectivity 1 JUNE20.qxp_Finance 19/05/2020 14:45 Page 1
CONNECTIVITY Brian Wilson is the Director, Key Accounts at Gogo Business Aviation, an industry-leading provider of inflight connectivity and entertainment solutions. Prior to Gogo, he sat on numerous Dealer Advisory Boards along with being a member of the AEA Board of Directors.
Cabin Connectivity: Getting it Right First Time! Why is it important to consider your cabin connectivity before you even buy your next jet? Brian Wilson discusses the value of asking the right questions to get the right solution installed first time…
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hroughout my career, I’ve been personally involved in many aircraft transitions. Most involved charter customers purchasing and owning their first aircraft, or operators upgrading from a Small or Mid-size Jet to a Super Mid-size or Large Cabin Jet. Typically, during the pre-buy inspection the owner arrives with their spouse and a designer. Much attention is paid to the aesthetics of the aircraft: A new paint livery; a change of carpet; reupholstering the seats; a new expresso machine… 100 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
It’s during the maiden flight that the new owner quickly realizes they didn’t devote the time they should to ensure they’d be properly ‘connected’. Previously, that was something the charter company took care of. Or in the smaller jet they only flew domestic trips, but now the flight profile has changed, so have the connectivity needs. If you’re looking to become a first-time business aircraft owner, or plan to upsize soon, what are the things you can do to ensure you address your connectivity needs in full, before flying the aircraft away to its new home? www.AVBUYER.com
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How to Get it Right First Time
Start by reassessing your flight profile. Set a time to meet with the primary passengers, and make sure you include the flight crew. (You may find that you have two different profiles if the aircraft will be used for both business and personal flying.) An open discussion should focus on the following: • Will the aircraft be used for both domestic and international flights? • What is the expected percentage split flying domestically and internationally? • Do the passengers need to have connectivity on every flight? • What will be the normal passenger load? In addition, you should define the expectations that must be met regarding connectivity: • Would light internet browsing and email be enough? • Do the passengers require streaming, video conference, social media and live content? www.AVBUYER.com
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(Based on experience, passengers will expect connectivity on every flight, and they will want it to perform as close to what they have on the ground.) Don’t rush discussion of these questions. Define your needs clearly, because the next step will be to allocate funding to support the upgrade. Another factor beyond the monetary costs, is the downtime that will be required for the installation/upgrade. This can range from two to four weeks (or more). While most upgrades are made during a maintenance interval, if your aircraft just came through a pre-buy inspection, there might not be an inspection with the necessary downtime coming any time soon.
Connectivity for Domestic Flying
Small to Mid-size business aircraft have limitations, both in the distance they can fly and the fuselage size (to support a larger antenna required for higher bandwidth). So there might not be a direct correlation between passenger expectations and a viable solution.
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“Do the passengers require streaming, video conference, social media and live content?” In the US: Gogo Business Aviation has an Air-toGround (ATG) system capable of meeting all the needs described above. Nearly 6,000 business jets in the US rely on Gogo’s exclusive ATG network to keep passengers connected. Whether the aircraft is used for business or pleasure, the bandwidth provides everything from simple email and web browsing to streaming movies. Numerous pricing options and a dedicated customer portal allow convenient control and monitoring of data usage and costs. Outside the US: The most common solution is Swift Broadband (SBB). SBB supports data speeds between 200Kbps and 432Kbps, which is enough for simple web browsing and emails with small attachments. The data speeds are predicated by the size of the antenna. • • •
Low Gain Antenna (LGA): 200Kbps Intermediate Gain Antenna (IGA): 332Kbps High Gain Antenna (HGA): 432Kbps
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Although the data speeds are modest, pricing for data consumption can be relatively expensive, requiring constant monitoring to avoid nasty surprises in your monthly bill.
Connectivity for International Flying
The Super Mid-size to Large Cabin business jets have the advantage of a larger fuselage, most of which can support a tail-mounted antenna. This opens up the possibility of faster speeds and more options. Among those options are Swift Broadband (SBB) and both Ka- and Ku-band systems. As highlighted in the smaller aircraft connectivity options, SBB utilizing the HGA has a maximum speed of 432Kbps. However, service providers offer compression and acceleration features which can extend the speed closer to 1Mbps. In recent years, SBB has taken a back seat to Kaand Ku- band systems. Although still used for data on many aircraft, its primary role is now essentially for safety services. Ka- and Ku-band systems dominate the market for connectivity on larger aircraft because they deliver similar experiences to the cabin as a passenger would enjoy on the ground. Discussing specific data speeds and which band is
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“...both Ku- and Ka-band deliver data rates in excess of 10Mbps and passengers can now enjoy streaming of content, social media and video conferencing in-flight.” better is the topic for a future article, but both Kuand Ka-band deliver data rates in excess of 10Mbps and passengers can now enjoy streaming of content, social media and video conferencing in-flight. While designed to cover the major air traffic routes of the world, these satellite-based systems do not provide complete global coverage, however, so be sure to review their respective coverage maps. Monthly data plans can also be quite expensive, so take time to choose the one that fits both your flight profile and your budget.
Be Sure to Plan for the Future
Before making that final commitment to invest in a connectivity solution, take the time to confirm the system is scalable, and will not be obsolete in a few years. Ask the MRO to provide a roadmap for future upgrades. (The MRO is the dealer that represents the vendor, and they are required to train their staff to quote and install the product correctly.) It is also worth having a representative from the vendor present to ensure the information presented is correct, and this can be done in person or virtually. Be aware that it’s quite possible that even if the ad re ou Re Mo Ab
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system is scalable you will have to add hardware and/or software updates later. Nevertheless, the system you are about to install should be the foundation to any future additions. As an example, Gogo’s new AVANCE L5 (4G) connectivity system, once installed, becomes the groundwork for Gogo’s ‘Next Gen Gogo 5G’ component, due to start delivering in late 2021. In this case, operators can have the confidence that what they’re installing today, will facilitate the next generation of technology. For satellite operators who have a Ka- and Kuband hybrid system, the product is designed so an LRU change (or even just a software change) will satisfy the future upgrade. Doing proper due diligence today on your inflight connectivity solution will protect you from coyly needing to approach the boss in a few years’ time to inform him that a completely new installation is required to get better connectivity. Unlike when you are on the ground, you can’t just buy a new phone, tablet or laptop to make the change mid-air. Far more thought needs to go into your planning process. ❙
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Chris Kjelgaard has been an aviation journalist for 40 years. He has served as editor of ten print and online titles and written extensively on many aspects of aviation. He also copy-edits most major documents published by a global aviation industry trade association.
What’s Next for Business Aircraft Cabin Connectivity? What has been changing in the business aircraft cabin connectivity sector recently, and how might developments lead to even more advancements in the future? Chris Kjelgaard asks Dori Henderson (Collins Aerospace) and James Person (Viasat)‌
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or all aircraft operators, the COVID-19 pandemic will change the landscape in various ways throughout the next few years. This applies just as much to the business aircraft cabin connectivity market. “I think it's too late to ignore the effects of COVID-19 on our industry,” says Dori Henderson, executive director, Business & Government Aviation, Collins Aerospace. “It's here and it's not letting go any time soon. “We had been planning for some new Low Earth Orbit (LEO) entries into the satellite connectivity market. Although it's hard to predict any success they may have had, it's certain they would have shaken-up the existing market and provided a competitive environment.” Though the pandemic will have other implications for Business Aviation, the gradual recovery need not represent entirely bad news for the cabin connectivity market, for two reasons.
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First, says James Person, senior director, global business development, Viasat’s Business Aviation & VVIP Group, Business Aviation may well benefit from a reluctance on the part of business travellers to return to crowded commercial airports and airliner cabins, where the risks of infection might remain high. [As the first round of the COVID-19 pandemic gradually recedes globally] “We’re hearing from charter and corporate operators that they see a wider use of business jets for [executives’ and managers’] own protection, and for making those people more productive,” says Person. That productivity will come from providing business aircraft passengers with in-flight connectivity speeds in the cabin that are comparable to those they’re accustomed to in the office and at home. Second, adds Henderson, “Given the short-term effects that COVID-19 has had on the aviation and maritime satellite connectivity industry, I will speculate that network service providers will attempt to re-provision currently underutilized bandwidth for markets that could provide the largest returns soonest. “Cruise liners and Commercial Aviation will take longer for their usage levels to return compared to Business Aviation, and that opens the possibility of faster plans and incentives for business aircraft operators.”
Today’s High-Speed Connectivity Services
With that said, “re-provisioning of bandwidth is not necessary to secure high-speed connectivity” in today’s business aircraft cabins, Henderson adds. Some cabin-connectivity service providers, Viasat and Collins among them, already offer excellent bandwidth and very high bit rates to operators. Collins does so with its LuxStream service, which uses transponders on 15 Ku-Band satellites orbited by SES in the past few years to provide business aircraft cabins with bit rates of 15Mb/second per passenger, globally, and as high as 25Mb over the US. Viasat has a broader existing service offering, providing connectivity up to 10Mb/second, per passenger through the 12 to 18GHz Ku-Band spectrum using leased transponders on satellites, and also 16Mb/second connectivity on a perpassenger basis through the 28-to-40GHz Ka-Band spectrum, using the company’s own satellites. Its 10Mb/second Ku-Band coverage is available globally by means of Viasat’s ‘Ku Advanced’ service, while the 16Mb-per-second Ka-Band service is available over North and Central America, Europe and the Middle East. For LargeCabin business jets, Viasat can combine its Ku-Band and Ka-Band offerings.
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“By the end of 2022 Viasat aims to orbit three new ViaSat 3 Ka-Band satellites.” Shifting the Pricing Paradigm
The per-passenger bit rates that services such as LuxStream and Viasat’s various services now provide have “really shifted the connectivity business model paradigm,” Henderson argues. “Customers will experience more attractive service pricing as they no longer pay for speed.” For example, Person says when previous generation cabin-connectivity services were priced by the megabit, and per-person bandwidth was only about 400Kb/second, the per-Mb rate was about $5. Now ViaSat prices its Ku Advanced service at a monthly flat rate, (i.e. a monthly 30Gb capacity for under $7,000), which is equivalent to a per-Mb rate of about 23 cents. Ku Advanced flat-rate monthly pricing starts at just under $5,000, says Person. Combined with a per-aircraft, flyaway hardwareinstallation cost starting at less than $350,000 (down from $500,000 just two years ago), its flatrate pricing makes Viasat’s Ku Advanced attractive for operators of business jets which have lower hull values or are now out of production, according to Person. Person notes that with many business aircraft not flying as much as they were before the pandemic, some corporate and charter operators
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using Viasat’s Ku Advanced service have switched from monthly flat-rate plans to the alternative perflight-hour pricing Viasat also offers.
What’s Coming Next for Cabin Connectivity?
By the end of 2022 Viasat aims to orbit three new ViaSat 3 Ka-Band satellites. Each satellite will offer 1 terabit (1,000Gb) of overall bandwidth enabling the company to increase the per-person in-cabin bandwidth of its Ka-Band service for business aircraft to 32Mb/second, according to Person. The first ViaSat 3, due to be launched in H2 2021, will be orbited in a position where its coverage will include all of the Americas. In H1 2022, the second ViaSat 3 will be launched into an orbital position where its coverage will include all of Europe and the Middle East. Finally, in H2 2022 the third ViaSat 3 will be orbited where its coverage will include all of Africa, the Asia-Pacific region and Oceania. Existing ViaSat BizAv Ka-Band service users will automatically benefit. “People are future-proofed,” Person says—and for new customers, the flyaway hardware-installation cost will remain the same as it is now – $500,000 without the optional cabin router, $600,000 with router included. It’s expected that such a marked increase in
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“That productivity will come from providing business aircraft passengers with in-flight connectivity speeds in the cabin that are comparable to those they’re accustomed to in the office and at home.” bandwidth will lead service providers and equipment OEMs to create new applications to take advantage. “On the cabin entertainment side, I can envisage holographic representation of 3D images,” for both video-conference meetings and for entertainment, predicts Person. “Higher-andhigher-definition [2D] video, from HD going to 4K,” would also result. “We can also use this connectivity to help out on the operational side and to prevent AOG events,” Person adds. “Today, data from the engines and the aircraft is not transmitted off the aircraft in real time,” (the result of the very limited bandwidth previous-generation cabin connectivity services offer). However, with very fast Ka-Band service, “if you need to transmit a few hundred kilobytes of data [on engine and aircraft condition] anomalies, you could do it.” This would give the operator’s
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maintenance staff instant notice of potential technical issues affecting the aircraft and allow them to plan accordingly, preventing or mitigating AOG events. Collins Aerospace also thinks new applications will be developed to take advantage of the cabin’s increased connectivity capabilities. “We believe that delivering a customized experience for passengers, pilots, directors of maintenance or other stakeholders is the future,” Henderson concludes. “Whether you are a director of maintenance managing the cabin connectivity status, or a charter operator looking to optimize your fleet’s connectivity cost, having access to real-time insights at your fingertips is essential.” More information from www.collinsaerospace.com or www.viasat.com ❙
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What are the Costs of Your Cabin Connectivity? David Wyndham offers a rough guide to the costs of cabin connectivity, and details the factors that determine what is the right amount for you to be paying... n most urban areas, Wi-Fi is second only to oxygen as being expected for free. These days, commuter buses and rail services offer it – mostly at no cost – to fare-paying passenger. Bars, coffee shops and restaurants also provide it along with water and breadsticks. In a fixed location, provision of Wi-Fi is relatively inexpensive. For slow-moving vehicles, as long as they’re operating in more populated areas Wi-Fi is also affordable. All of these options use cellular towers to send and receive the signals, and a small transmitter (or several) to disperse the signal. Where Wi-Fi is concerned, aircraft complicate matters. Nevertheless, today’s passengers expect Wi-Fi on the airplane in the same way they receive it on the commuter rail. In North America, many of the airlines have a WiFi provision, ranging from free of charge up to $20 for a day pass. These use Air-To-Ground (ATG) systems (such as the ubiquitous GoGo systems), which use cellular towers located across much of North America, and switching technologies that allow for smooth and continuous signals. Personal and business aircraft have similar ATG options that, thanks to growing technology, are
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smaller and lighter in weight than the systems available a few years ago. ATG systems are primarily limited to North America. Business jets travelling internationally have for many years communicated globally using satellite phones. While there are several different types of satellite systems with varying coverages, there are ultimately few places on the planet where a signal cannot be received – even on polar routes. Satellite systems that offer HD, streaming, and broadband are available.
Connectivity: How to Decide What You’ll Need to Pay?
As we’ll discuss, costs vary between ‘costly’, going to ‘well beyond expensive’. (Of course, the costs you pay are all relative to the business sense for the system you use.) So, what are the main factors in the cabin connectivity puzzle that will help you choose the right amount of connectivity for your needs? Following are some of the key pieces… • Size: Powerful satellite-based systems weigh much more than an ATG system. What fits on an Ultra-Long-Range business jet will not fit on a Turboprop or Light Jet.
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David Wyndham is executive sales director and acquisition specialist with Par Avion Ltd. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker.
• Duration: How long are the flights you’ll be making? A 30-minute hop in a smaller Turboprop will not need the same system as flights lasting two hours. Short trips typically require some basic text and email capability. Longer trips (i.e. transcontinental and oceanic) require/use much more data of any kind. • Who: This consideration includes both flight crew and passengers. The more people needing to use the system, the more throughput (data volume per second) will be needed. Think of the data like water at home. One person washing their hands needs only a low flow/volume of water. Three people showering while the lawn is being watered need high flow/volume. Four passengers versus eight passengers plus crew will have different requirements to deliver the same performance. • What: In terms of throughput capacity, it is roughly ordered by text, email, browsing, calls, and live video streams. What are the data needs of your passengers? A www.AVBUYER.com
corporate shuttle may need strong email and some browsing capacity. A family flying for several hours with children may want to stream a couple of movies, or even live video games.
What is the Cost of Business Aircraft Connectivity?
Installation costs vary by system and by aircraft model. The antennas mount externally with connections, wiring and routers being internal. Different aircraft models present different challenges in antenna placement, as well as how and where wiring can be installed. In Large Cabin Jets especially, interior configurations not only dictate where equipment can be installed, but also signal strengths. The following costs are, therefore, approximate: • Basic ATG systems (for Turboprops and Light Jets, for example) can run between $100k-150k installed. These give you text, email, browsing and some voice capacity for four people. • Upgrading to a more powerful ATG can cost approximately $200k installed, but provides greater speeds and allows for video streaming.
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“...let passengers know what the costs are in terms the passengers understand. As an example, $6.95/Mb is less understood than $100 for a 30-minute television show.” •
Satellite-based systems vary even more, but plan on spending $650,000, or more, for the installation.
Data costs are also extremely variable and are based on how much data is consumed, along with the connection speed. • • •
Plan on up to $1,000 per month for basic ATG (less when flying infrequently or on short legs). ATG data fees for the higher speeds with a lot of use can run to $50,000 to $60,000 per year. Satellite systems that have High Definition, streaming and broadband can run as high as that monthly.
Closing Thoughts: Education, Control & Security
Charter operators that charge the user for the data need to let passengers know what the costs are in
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terms the passengers understand. As an example, $6.95/Mb is less understood than $100 for a 30minute television show. Moreover, not every flight will need the maximum data and speed capability available. Connectivity providers today offer options that reduce (throttle) the data stream when usage is low. Satellite providers monitor their satellites and air traffic, and can communicate with the crew in advance of flying into areas with poor coverage or high density use so they can warn passengers to reduce their usage while flying in those area. One last consideration is data security. If your company is working on truly secret data, the connection needs to be secure from airplane, to satellite, to ground server, to your corporate server. You can expect Enterprise- or even GovernmentCertified levels of security to add both cost and the need for skilled IT management. ❙
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How to Keep Cabin Connectivity Affordable What are some of the best ways to keep the costs of your cabin connectivity solution predictable and affordable? Rebecca Applegarth spoke with industry experts Brian Wilson and James Person to find out. he world of cabin connectivity is an exciting place of ground-breaking developments. With the solutions installed aboard some aircraft, data speeds are more-or-less akin to what passengers would experience on the ground with their iPhones, or in the office. But while in-flight connectivity is closing the gap on terrestrial connectivity in terms of speed, there’s still a very large difference in the costs between the two, leading to an unpleasant surprise to more than a few unwary business jet owners. There are, of course, steps owners can take to keep cabin connectivity affordable and predictable. The following are the top tips of Gogo Business Aviation’s Brian Wilson and Viasat’s James Person…
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1. Is it Time for an Upgrade?
Connectivity solutions that have high monthly bills coupled with a less than acceptable customer experience are frustrating for everyone involved. “The passengers are frustrated with how the system performs, and when the owner gets a bill they feel they have no control over the cost,” Wilson says. Once you reach this scenario, it’s time to consult a few MROs to see what other solutions are available. “The operator should summarize the three to five distinct reasons they are looking for a change, then make sure the new offers provide a viable fix to the problem.” Keep in mind there are many solutions available. But the one you choose does need to be certified for your particular aircraft model. www.AVBUYER.com
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3. Monitor the Usage
It is strongly recommended by Wilson that someone in the flight department monitors the usage after every flight, helping develop a user profile. “If the owner is middle-aged and flies mostly with his wife [or vice-versa], the usage pattern is going to be very different than if they chartered out the aircraft and a family with three teenage kids and their three friends are on board,” Wilson says. “When keeping your cabin connected in-flight, it can be very expensive if you do not properly maintain and document the costs efficiently. It can be easy to lose track of your spending.”
4. SWaP (Size Weight and Power) Matters…
2. Think About ‘Forward Compatibility’
Failing to anticipate future upgrades in the connectivity solution you choose, or the changing needs of your passengers could lead to unnecessary expense further down the line. Considering ‘forward compatibility’ is therefore vital, says Person. “Buyers should be looking to invest in hardware that is capable of functioning with the latest networks,” he notes, adding that new satellite-based systems offering faster speeds are established from time to time. “Having the ability to take advantage of tomorrow’s advanced technology without having to invest in an entire new system, a feature that Viasat offers across its current hardware and compatible radomes, can provide big cost savings in the long run. “A connectivity solution that can cope, and evolve with increases in internet connection speeds and bandwidth can help keep costs and aircraft downtime to a minimum.” Person adds that investing in a forwardcompatible system ensures that data intensive applications requiring more bandwidth such as VR/AR will be fully supported. www.AVBUYER.com
Size, weight and power make an impact on the affordability of cabin connectivity, too, according to Person. “The size and overall footprint of line replaceable units (LRUs), which make up the Wi-Fi solution, should be taken into consideration [as part of the overall cost of your connectivity solution],” he says. “A lower number of LRUs directly impacts the overall footprint required on board. “The weight of the in-flight connectivity equipment is important as every pound impacts fuel efficiency.” (For each pound of weight added to the aircraft, the incremental additional fuel burn rate per flight hour is 0.007 gallons squared, he explains.) “A rule of thumb is that a reduction in fuel consumption of about 0.75% results from each 1% reduction in weight. “An aircraft’s electrical components operate on many different voltages, both AC and DC,” Person says. “Be sure to investigate what kind of power the in-flight Wi-Fi connectivity system supports. Some solutions [like Viasat’s] support both.”
5. Be Aware of Your Data Allowance & Overages…
Using data beyond the agreed service plan can be a costly error for operators. Supplemental charges come once you absorb your allowance of data. For example, you may choose a monthly data plan of 10Gb that has $1.00/Mb cost for overage… “That charter flight with the kids (outlined previously) could be very costly due to the overage charges,” Wilson warns. “If you feel the owner will use up to 10Gb, factor in an ‘overage percentage’ and choose a 15Gb plan.” Reputable service providers that have a proven track record can, and should, provide analytics to help the client. “That means they can state that ‘on
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average we see 300-350Mb pre-hour used on our system’,” he clarifies. “With that information, the client can assume if they fly 30 hours per month, they will need a service plan that covers between 9,000Mb (9Gb) and 11,000Mb (11Gb), and then factor in a buffer for overages.”
6. Ensure the Systems Provide the Right Coverage
For aircraft travelling overseas, Person suggests a system providing global coverage is the key to maximizing the return on investment (ROI). To achieve global coverage, intelligent systems are able to automatically default to bands such as Ka- and leverage a Ku-band back-up service when outside of the Ka-band footprint, he details. “This seamless shift between Ka- and Ku-band networks delivers a continuous high-speed internet experience for passengers,” Person explains. “Today, Viasat offers global connectivity through our Ku Advanced network, and for customers looking for even greater performance and redundancy our Dual Band solution is the way to go. “These types of systems are designed so that aircraft are leveraging the best satellite network available for internet connectivity.” Person argues that in-flight Wi-Fi is one of the most recommended private jet upgrades, bringing with it a high return on investment. “Sourcing a global in-flight internet system that offers high speeds and forward compatibility is an effective way of protecting your investment and can result in as much as an 80% ROI, increasing overall resale value,” he says.
7. “Are you Not Entertained?” (You Should Be…)
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and stay in touch with those on the ground. However, “On many flights that have a leg longer than two hours,” says Wilson, “passengers start to look for ways to entertain themselves.” Systems that allow streaming can satisfy their needs by allowing them to do FaceTime, other social media, and even stream movies to the aircraft. “Although this satisfies the passenger, streaming data is very expensive and comes with no unlimited data plan,” he warns. Gogo Business Aviation provides a service called Gogo Vision (GGV). The company’s advanced line of products doesn't only offer internet connectivity; – the LRU comes fully loaded with movies and TV shows that can be streamed to personal devices or display on the cabin monitors. “The beauty of GGV is that it keeps the passengers fully entertained but does not use any data,” Wilson concludes.
In Summary
So there you have it. For the operator who is mindful of the mission needs and the right service to satisfy those needs, in-flight connectivity doesn’t have to be unnecessarily expensive. Keeping open lines of communication with the service provider and your MRO shop, and doing the legwork to monitor utilization in-house, ought to give you a firm grasp of your data needs and actual usage, eliminating unpleasant surprises in the flight department cost column. More information from www.gogoair.com or www.viasat.com ❙
Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.
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JETAPPRAISALS Performed by Accredited Senior Appraisers
877.531.1450 jetappraisals.com
Desktop Aircraft Appraisals / On-Site Asset Verification and Logbook Review Residual Values / Customized Analysis www.AVBUYER.com
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AIC advertorial June.qxp_Finance 20/05/2020 11:39 Page 1
SPONSORED CONTENT
Whose Plane is it Anyway? FAA Tasked to Address Fraud and Abuse in Aircraft Registrations By Bruce L. Marshall, EVP & General Counsel, AIC Title Service
120 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
On March 25, 2020, the U.S. Government Accountability Office (GAO) issued a report, GAO-20-164, entitled FAA Needs to Better Prevent, Detect, and Respond to Fraud and Abuse Risks in Aircraft Registration at the request of Congressmen Stephen Lynch, Chairman of the Subcommittee on National Security Committee on Oversight and Reform and Peter King, a member of the Homeland Security Committee. While providing an overview of the extensive 86 page report, the purpose of this article is to discuss the GAO recommendations that may impact and delay general and business aircraft registrations. As part of its investigation and research in preparation for the report, the GAO reviewed relevant laws, regulations, FAA policies, DOJ press releases, and court cases illustrating risk associated with the FAA Registry. FAA Registry aircraft data from 2010 through 2018 was also analyzed to identify registrations with risk indicators. Finally, the GAO interviewed FAA registry, legal, law-enforcement liaisons, and safety officials in addition to officials from the DOJ and DHS.
GAO’s Main Criticisms The GAO was extremely critical of the FAA’s reliance upon registry applicant’s self-certification of eligibility and aircraft ownership. FAA officials admitted that they accept registration information as factually-valid, relying solely on an applicant’s certification as to the truthfulness and accuracy of the information provided. The FAA further admitted that they do not attempt to determine if any intentional fraud has occurred at the time of application. The agency’s failure to verify registration information has hindered the FAA’s ability to prevent fraud and abuse in aircraft registrations and, according to the GAO’s case study review, has enabled aircraft-related criminal, national security, or safety risks. The GAO was also critical of the FAA’s sole focus on only obtaining and recording required forms that are complete without also collecting sufficient key personally identifiable www.AVBUYER.com
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AIC advertorial June.qxp_Finance 20/05/2020 10:02 Page 2
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information (PII) such as driver’s licenses, date of birth, and tax identification numbers from the applicants along with verifying the PII. FAA vulnerability to fraud and abuse in situations where applicants use opaque ownership structures such as trusts, non-citizen trusts, voting trusts, intermediaries, nominee shareholders and directors, and shell companies to register aircraft was another concern mentioned in the GAO report. All of these structures limit transparency into beneficial ownership. Sharing of information, today collected by the FAA in nonsearchable or accessible pdf formats, with both internal FAA and other external government law-enforcement divisions and agencies was cited as a necessity by the GAO in order to combat illegal activity, money laundering, and fraud.
GAO’s Recommendations The GAO made 15 recommendations to the FAA, including that the agency should collect and verify key information that it collects on aircraft owners; undertake a risk assessment of the registry; leverage information technology modernization efforts to develop data analytics approaches for detecting registry fraud and abuse; and formation coordination mechanisms with law-enforcement agencies. It’s the following recommendations that may have the most impact on General and Business Aviation: 1. Increase aircraft registration and dealer certification fees. As explained in the report, the current registration fee of $5.00, established in 1964, if only adjusted for inflation would today be $41.00. U.S. taxpayers have been subsidizing the FAA for years. To address it’s outdated and intermittent IT system, as well as acquiring and training human resources to accomplish additional tasks associated with vetting and verification of registration information, the FAA will need to adjust fees significantly. 2. Develop an approach to check OFAC sanctions data on aircraft owners and related individuals and entities and flag sanctioned individuals across aircraft registration and dealer www.AVBUYER.com
systems. Banks and some reputable title service companies in Oklahoma City assisting aircraft registrations are already checking OFAC sanctions and doing more in terms of restricted party screening. For the FAA, providing a vetting process that is new for them may delay aircraft registrations considerably. 3. Collect PII and verify registrations applicants’ and dealers’ eligibility and information. The recommended vetting process will most certainly delay aircraft registrations, particularly when dealing with opaque ownership structures. Registration applicants will want to make sure that their title service providers have the requisite technology in place to collect and expeditiously share PII with the FAA. 4. In coordination with law-enforcement agencies develop a mechanism to provide declarations of internal operations (DIOs) for law-enforcement purposes. Many law-enforcement agencies complained, and GAO case studies confirmed, that U.S. registered aircraft leaving the country present a significant risk category and that such aircraft often leave the country before law-enforcement action can be taken. The days of 24-48 hour issuance of DIOs may become a thing of the past. Whether the new standard for issuance of DIOs becomes multiple days or weeks remains to be seen. The GAO has represented that the FAA has agreed with all recommendations. As to when any of the recommendations will be adopted and what the true costs and delays to General and Business Aviation may for some time remain unanswered questions. Aircraft transaction parties will be well advised to work with a progressive and technologically-advanced title services company in order to mitigate anticipated aircraft registration delays.
More information from www.aictitle.com AVBUYER MAGAZINE Vol 24 Issue 6 2020
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COMMUNITY
OEM Bites
Gulfstream G700 Development Accelerates Gulfstream announced the second and third G700 test aircraft have taken flight over the past couple of months, further advancing toward certification and customer deliveries of the company’s new flagship model... he second Gulfstream G700 flight-test aircraft made its maiden flight on March 20, departing Savannah/Hilton Head International Airport (SAV) and flying for 2 hours and 58 minutes. On that occasion, the aircraft reached an altitude of 45,000ft, and Mach 0.85. Then, on May 8, also departing from SAV, the third flight-test aircraft made a first flight that lasted 3 hours and 2 minutes. Like the second test aircraft, the third test aircraft reached an altitude of 45,000ft and Mach 0.85. According to Gulfstream, the G700 features the longest, widest and tallest cabin in the industry, and offers up to five living areas, along with an ‘ultragalley’ with more than 10 feet of counter space and a crew compartment or passenger lounge. Powered by a pair of Rolls-Royce Pearl 700 engines, the G700 will fly at its
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high-speed cruise of Mach 0.90 for 6,400nm, or at its long-range cruise of Mach 0.85 for 7,500nm. In the cockpit, the G700 incorporates the Gulfstream Symmetry Flight Deck and electronicallylinked active control sidesticks (an industry first). EASA Approval for G600 Meanwhile, Gulfstream’s G600 has earned type certificate approval from the European Aviation Safety Agency (EASA), enabling aircraft registrations and deliveries to begin for European customers. Travelling at Mach 0.90, the G600 can fly 5,500nm non-stop — far enough to connect London with Los Angeles or Paris and Hong Kong. At its long-range cruise (Mach 0.85), it can fly 6,500nm non-stop. More information from www.gulfstream.com
Understanding the Business Aviation Market - with 122 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
AVBUYER
Aerion Supersonic will invest $300m to build a new state-of-the-art campus, to be named Aerion Park, in Melbourne, Florida. Aerion Park will form a new global headquarters and integrated campus for research, design, build and maintenance of the company’s supersonic aircraft. www.aerionsupersonic.com
Bombardier’s Q1 2020 was boosted by an acceleration in Global 7500 deliveries, helping provide a 5% increase in Bombardier’s overall revenues to $3.7bn in the first quarter. However, a “significant” decline in order intake beginning in March, coupled with COVID-19-related disruptions, has the company evaluating production-rate adjustments for the rest of the year. www.businessaircraft.bombardier.com
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Textron Aviation recently celebrated the 10th anniversary of the first Cessna Citation CJ4 business jet delivery, which took place on April 20, 2010. Regarded for its versatility and reliability, the Citation CJ4 is valued by customers around the world for a wide range of missions including, air ambulance, maritime patrol, search and rescue and aerial survey. www.txtav.com
www.AVBUYER.com
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AVBUYER.com
Gary Dunn
COMMUNITY
J. Dan Govatos
Gary Dunn has moved to the position of president at Aviation Partners, Inc. Dunn, 48, has served the company for more than two decades. He had been interim president since the unexpected passing on March 30 of company founder Joe Clark. J. Dan Govatos becomes director of operations at Keystone Aviation based in Salt Lake City, Utah. Steve Hughes has been appointed by Inflight The Jet Centre as general manager & CAMO of Excellence Aviation Services Limited and Excellence Aviation Limited.
Anthony Kunde
www.AVBUYER.com
Martin Nüsseler
Steve Hughes
Anthony Kunde has joined the Soljets sales team as executive sales director, focusing on the Cessna Caravan, Citation CJ4 and Citation XLS markets. Martin Nüsseler has been appointed chief technology officer at DRA and sister company 328 Support Services GmbH. Christoph Schmidt has joined Michael Zach as a new managing director of VIP and General Aviation Services at Vienna Airport. T
Christoph Schmidt AVBUYER MAGAZINE Vol 24 Issue 5 2020
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AOPA advertorial June.qxp_Layout 1 21/05/2020 13:00 Page 1
SPONSORED CONTENT
How is The Coronavirus Affecting Used Aircraft Prices? Adam Meredith
A
s of this writing, the coronavirus pandemic has not resulted in any measurable decline in used aircraft prices. That's not to say it won't over time, but in the near term, prices are holding steady. Why aren’t we seeing values lower? Despite being blindsided by the consequences surrounding the coronavirus pandemic, the aviation market was already in a unique situation because inventory was pretty thin. Traditionally, when supply is constrained, market pricing will stay roughly the same. That holds true now, despite any drop-in demand that we may be witnessing. Another reason prices have remained steady is because fewer owners are listing planes right now. There is so much uncertainty surrounding the ability to close deals (financing, the logistics of inspections and aircraft delivery) that folks are
more comfortable sitting on the sidelines than taking the risk of losing out on a deal. While the coronavirus pandemic might spur some people to sell, as of yet, there’s been no noticeable uptick in these situations. AOPA Aviation Finance, (“AAF”) is working on a deal right now with a pilot-owner who’s trying to close on a TBM turboprop single. He's buying from an 80-year-old gentleman, but such transactions are rarer than they are regular. The bottom line is if you're thinking this might be a good time to pick up something cheap, our answer is, it’s always worth looking, but the markets are efficient and the professionals in the industry help to keep it that way, so you’ll have to look hard for those gems.
Great advice. Great rates. All from helpful and responsive reps you can trust! Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call
800.62.PLANE (800.627.5263) 124 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
www.AVBUYER.com
Products & Services June.qxp_Layout 1 21/05/2020 12:49 Page 1
PRODUCTS & SERVICES Engine Assurance Program (EAP) Offers Relief to Operators Affected by COVID-19
Already known for having low hourly minimum usage requirements, EAP will now defer those hours until 2021 to help operators who may be flying less as a result of the Corona virus pandemic. EAP’s low 75-hour yearly minimum usage requirement is one of the significant benefits of its engine maintenance program. In response to the COVID-19 crisis, EAP has enhanced this benefit. EAP will waive minimums for 2020 if operators fly 150 hours by the end of 2021. “If operators can’t reach 75 hours of flight time this year, they can roll the deficit into 2021 without penalty as long as they reach 150 hours of total flight time over the 2020 and 2021 calendar years,” said Sean Lynch, EAP program coordinator. “Our hearts go out to anyone who has been impacted by the virus, either directly or indirectly. Business is in flux, and we want to do our part to help things return to normal.” EAP focuses specifically on older engine platforms and delivers high-end customer service and competitively priced engine coverage. Operators of Falcon 10, 20-5, 50, 900B/C; Hawker 700, 800A/XP, 850XP, 1000; Lear 31, 35, 55, 60/XR; Astra 1125/SP; Citation III, VI, VII; Gulfstream GIV/SP, or Challenger 601 1A/3A equipped with a TFE731-2, -3, -5, PW305 A/B, TAY 611-8, or CF34-3A/-3A1 engine can operate their aircraft more economically using EAP’s program www.eap.aero
First Czech Registered Falcon 7X for ABS Jets
Prague-based ABS Jets took delivery of their first Dassault Falcon 7X, overcoming the challenges caused by COVID-19. The successful delivery also marks the milestone of the first aircraft manufactured by Dassault Aviation with Czech registration. The Dassault Falcon 7X is the eleventh longrange jet added to the ABS Jets commercial fleet and the second in the last three weeks. ABS Jets COO Jan Králík said: “We are honoured to be the first company operating a Dassault Falcon 7X here in the Czech Republic. Receiving and managing aircraft under such unusual circumstances is challenging, but I am thrilled the team accomplished the task in the most efficient manner possible. Of course, nothing would be possible without the great support from the local CAA.” www.absjets.com
Clay Lacy Completes 10th Phenom 120-month Inspection
Clay Lacy Aviation, an Embraer Authorized Service Center, recently completed its tenth 10-year/120-month inspection on Embraer Phenom 100 and 300 aircraft, with five additional inspections underway. Inspections are being completed at the www.AVBUYER.com
company’s FAA Part 145 Repair Stations at Van Nuys Airport (KVNY) and McClellan-Palomar Airport (KCRQ) near San Diego. Popular additions to the scope of work include seat reupholstery, new carpet, baggage area refurbishment, Gogo AVANCE L3 highspeed internet, and for Phenom 100 models, the Garmin G1000 NXi integrated flight deck upgrade that will be available for the Phenom 300 later this year www.claylacy.com
JETNET launch iQ PULSE
JETNET LLC, the leading provider of corporate aviation information, announced the launch of JETNET iQ PULSE, a regular bulletin on the state of the business aviation market, and the latest version of its JETNET iQ portfolio of aviation market research, strategy, and forecasting services. Rolland Vincent, JETNET iQ Creator/Director, said, “This is an unprecedented time for business aviation. Postponed trips. Canceled conferences and conventions. Face-to-face meetings–remember those? Business aviation leaders have not lost their insatiable appetite for market and competitive intelligence, and today is absolutely not the time to be flying blind. With JETNET iQ PULSE, we are pleased to provide readers with insights they need to safely and intelligently navigate the skies ahead.” Paul Cardarelli, JETNET Vice President of Sales, added: “Our research team is second to none at gathering voices of customers across the world. With JETNET iQ PULSE, we focus on key “need to know” developments in this rapidly evolving environment. The best thing about JETNET iQ PULSE: it’s FREE.” www.jetnet.com
Avinode Launches Avinode Aid
Avinode Aid is accessible to all operators whether or not they are existing Avinode members. The initiative ensures ambulance-only aircraft are not open to passenger flight requests, so operators can respond to urgent medical transportation enquiries quickly and efficiently. Brokers can easily find available fixed-wing air ambulances by filtering search results, whilst medical helicopters will be placed in a separate category in Avinode’s helicopter search. New ambulance aircraft placed on the platform will be further promoted through Avinode’s email communications and social media, so brokers can quickly find the flight option they need to assist a client’s relief efforts. Operators wishing to add their ambulance aircraft to AVBUYER MAGAZINE Vol 24 Issue 6 2020
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PRODUCTS & SERVICES Avinode can sign up at www.avinodegroup.com/avinode-aid. The free service will initially last until the end of 2020, when demand will be evaluated depending on the state of the pandemic. Avinode Aid is one of a series of actions Avinode is taking to support its members, including advising on travel restrictions impacting charter; providing a platform for members to post advice; and sharing data on charter demand to help the market take appropriate action www.avinodegroup.com
Aeronexus Adds PrivaJet to Portfolio
Aeronexus has acquired a controlling interest in the 10-year old aircraft management company, PrivaJet of Malta, which will become an Aeronexus Group company. PrivaJet was chosen to join the Aeronexus Group because of the synergy of its impeccable safety record, professional management and vast experience in the operation of large VIP business jets. Aeronexus is also the holder of a South African AOC. “Building on our success in the wide-body VIP charter market, the opportunity to obtain a European AOC and bring PrivaJet into the group comes at a very opportune time,” comments Gareth Evans, head of Aeronexus' UK-based commercial team. Gareth and his team will continue to market, sell and organise all Aeronexus' air charter activity. Aeronexus works exclusively with UK and International air charter brokers and is a member of the Air Charter Association www.aeronexus.aero
Second Gulfstream V for Planet Nine
Planet Nine Private Air, the Van Nuys, California based private charter operator and aircraft management company, has added a fourth Gulfstream business jet to its managed charter fleet. The 6,200 nm/13.5 flying hours capable Gulfstream GV, under private ownership, takes Planet Nine's Part 135 fleet to 10 aircraft. The ultra, long-range Gulfstream GV, with its flexible three-zone cabin and enclosed state-room, is currently available for bookings. The Gulfstream V's recently retrofitted, spacious 1,812 cu ft cabin is ideal for work, rest and relaxation. It features 14 generous pale grey leather seats. Inflight entertainment can be enjoyed via eight large iPads, holding a variety of movies. The aircraft also has a well-equipped, full-service rear galley. Planet Nine's latest Gulfstream GV joins a sister aircraft, plus 126 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
a Gulfstream G550, Gulfstream G650 and Bombardier Global 5000. Planet Nine also operates for charter and owns five Dassault Falcon 7Xs www.flyplanet9.com
Global Jet Safety Values
Safety is their number one priority and is paramount to Global Jet’s values. With a 20-year legacy of responsible business and wellknown reputation regarding safety and security, their dedicated teams are taking all necessary actions to guarantee the utmost safety in all flight operations. Global Jet leaves nothing to chance: this is the key to their success. In view of the ongoing COVID-19 situation, Global Jet has been taking strict precautions to protect their passengers, their crew and their employees, while continuing their activity dedicated to their customers. Global Jet is enforcing additional measures to those published by the WHO in order to safeguard the safety of all passengers and crew, by also applying aerospace and clinically approved microbiological cleaning agents – Bacoban1 – on board of their aircraft www.globaljetconcept.com
Stevens Relocates to Smyrna
In response to strong customer support and consistent business growth at its Nashville facility, Stevens Aerospace has announced the company will be relocating its operation to nearby Smyrna Airport (MQY). Located just 12 miles from its current location, and still only minutes to downtown Nashville, the Stevens hangar will be part of the Hollingshead Aviation FBO campus. According to Stevens Aerospace president Christian Sasfai, the overall growth of general aviation at BNA has limited Stevens’ current and future options to expand. “The Smyrna Airport offers ample room for growth and easy access to the attractions around downtown Nashville, as well as an airport leadership team that encourages and understands business.” www.stevensaerospace.com www.AVBUYER.com
Jetsense Aviation Bombardier Challenger 604 June.qxp_Empyrean 20/05/2020 09:42 Page 1
S H O W C A S E
2006 Bombardier Challenger 604 Airframe TT: Landings:
4351 1883
More aggressive pricing available for a year-end deal Currently going through a $45K PPI at Flying Colours - SUS ATG-5000 Wifi -150 APU Engines Enrolled on GE OnPoint Paint Refurbishment in 2016 Interior Refurbishment in March 2018 Precision Plus
Dual Collins ADF-462 Dual Collins HF-9031A Dual GPS-4000 Receivers/Sensors Dual Collins TDR 94D Transponders Coltech SELCAL System Dual Collins ALT-55 Radio Altimeters Fairchild A100S CVR Interior & Entertainment Interior Configuration Fwd 4-Place Club, Aft 3Place Divan, and Aft 2-Place Club Number of Passengers 9
Engines Left engine Description: GE CF34-3B S/N: 950486 THSN: 4351 Hours TCSN: 1883 Cycles Engine Program GE OnPoint
Right engine GE CF34-3B 950484 4351 Hours 1883 Cycles GE OnPoint
Avionics & Connectivity Collins ProLine 4 System includes: Collins EFD-4077 Pro Line 4 6 Tube Dual Collins VIR-432 with FM Imm. Dual Collins DME-442 Collins TCAS II with Change 7 SATCOM ICS-200 System Collins RTA 854 Weather Radar Artex 406 Satellite ELT Honeywell EGPWS Mark V Dual Collins VHF-422C
Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047 www.AVBUYER.com
Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com
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Nexus Aviation June.qxp_Empyrean 20/05/2020 14:04 Page 1
S H O W C A S E
2014 Dassault Falcon 2000LXS Serial Number: Registration: Airframe TT: Landings:
275 G-FLXS 1460 730
Beautiful one owner / one operator / one crew 2000 LXS Delivered new August 2014 EU-OPS CAT compliant and operated Aircraft can be delivered with fresh C check Aircraft available immediately, offered exclusively by Nexus Aviation Engines Pratt & Whitney 308C on condition, with FAST DTU option and enrolled on ESP Platinum APU Honeywell GTCP 36-150 enrolled on MSP Gold Avionics & Connectivity EASY II latest version upgrade Triple Honeywell FMS Triple Honeywell TR-866B VHF communication units Dual Honeywell NV-875B navigation units Dual Honeywell DF-855 ADF units Dual Honeywell DM-855 DME units Dual Collins HF-9000 HF units (with Selcal) Dual Honeywell XS-857A mode S transponder units Honeywell WU-880 radar unit ACSS TCAS 3000 unit (with change 7.1) Dual CMC Electronic Flight Bags CMA-1100
FalconPerf + Dual Electronic Jeppesen Charts CPDLC ATN / ADS B OUT / FANS 1A Miltope Cockpit Printer SBAS Capable Dual GPS Honeywell MCS 7120 Swift BroadBand and WiFi SmartView Synthetic Vision System Enhanced Ground Proximity Warning System Uplink Weather Capability Interior & Entertainment An elegant and comfortable 9 passenger interior, with a forward club seating group in the front area, an aft three place divan, and a dual club arrangement in the aft section. Divan berths to create a comfortable sleeping area, as do all the club seat arrangements. We have participated in the specification process for this aircraft, managed the completion process, and performed the delivery / acceptance / test flights in Little Rock, and have remained involved with it since new until today. Meticulously maintained, interior is in excellent condition, meticulous owner and crew Price: MAKE OFFER
Nexus Aviation SARL Contact: Luc Duncan 15 rue du Jeu de l’Arc, Switzerland
128 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Tel: +41 (0) 79 611 7303 Email: lduncan@nexusaviation.ch www.nexusaviation.ch
www.AVBUYER.com
Jet 8 June.qxp_Heeren Cit Ultra sep 20/05/2020 15:47 Page 1
S H O W C A S E
2014 Bombardier Global 6000 Serial Number: Airframe TT: Landings:
9579 2.723 936
Engines Rolls Royce. Model: BR700-710A2-20 Engine 1 Engine 2 2.723 hours 2.723 hours Total Time: 940 940 Cycles; APU Honeywell RE220 (GX) 3,539 hours Total Time: 2.304 Total Cycles:
Interior Exquisitely designed interior with private aft stateroom and customised finishes: 1 Entrance & Galley Area: RHS galley with lavatory. LHS crew rest and crew-closet 2 Forward Cabin (zone 1): 4 executive Club 3 Forward Mid Cabin (zone 2): LHS conference grouping & RHS 3-place divan 4 Private Lounge (zone 3): LHS executive Club & RHS 3-place divan 5 Aft lavatory: LHS Wardrobe and storage cabinet & RHS toilet with vanity opposite Avionics Aircraft is equipped with the Global “Vision” Flight Deck, an advanced technology avionics suite consisting of Rockwell Collins ProLine Fusion Avionics Suite.
Flight Management System Onboard Maintenance System Integrated Flight Information System Electronic Flight Bag Air Data System Weather Radar-Lightening Detection System Vertical Weather-Nav and surveillance sensors-includes GPS, VHF, ADF, DME, TCAS II (Change 7.1) Entertainment Display/TV Monitors: Two (2) bulkhead monitors Personal/Plug-in Monitors: Personal table plug-in arm stands High Speed Internet Ka-Band Inmarsat System Cabin Management System Rockwell Collins Additional Options Additional Cabin sound proofing insulation installed
2017 Bell 407GXP Serial Number: Registration:
54672 B-70QP
Airframe Total Time: 1556.7 Hours (As of Feb 2020) RIN: 1639 Engine Total Time: 1556.7 Hours (As of Feb 2020) Cycles: 810 Serial Number: 848855 Kits 5250 ibs Max.Gross Weight Artex C406-NHM ELT-w-PGM Adaptor
Artex C406-NHM ELT Provision Cargo Hook Equipment Cargo Hook Provision Litter Provision Customizing 5 Place Aft ICS for Aircraft Powered Headset with LEMO jacks/Cabin ICS Call-w-LED Light Baggage Compartment Edge Protector (AA) Baggage Floor Protector (AA) Bleed Air Heater-w-Windshield & Chin Bubble Defrost (Air Comm) Cockpit/Cabin Floor Protector (AA) Door Openers-Automatic-for Baggage Doors (AA) Door Openers-Automatic-for Cabin Doors (AA)
Jet 8 Contact: Adrien Chazottes 12A, Two Chinachem Plaza, 68 Connaught Road Central, Hong Kong www.AVBUYER.com
Door Openers-Automatic-for Jettisonable Crew Doors (AA) Inlet Barrier Filter w/Access Door (AA) Pre-Flight Kit includes (4) Step Handles, (2) Folding Maintenance Steps or (2) Access Steps, (1) Door Retention Strap (AA) Provide Color coordinate Carpet to Carmel Leather Seats
Tel: +60127071477 Email: AChazottes@jet8.com www.jet8.com
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FROG Flugservice GmbH May.qxp_Empyrean 20/05/2020 09:44 Page 1
S H O W C A S E
1997 Cessna Citation Jet with fresh engines Serial Number: Registration: Airframe TT: Landings:
525-0188 N525PA 5409 5999
ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44 Engine #1 3105,1 h TSN, 2863 cycles, 3485 h remaining to OVH Engine #2 3119,0 h TSN, 2838 cycles, 3485 h remaining to OVH
The engines are not on any engine program, but have been overhauled by Williams August 2019. Have been running 15 hours since and can be enrolled into the TAP Blue program, TBO then 4000h Avionics & Connectivity Sperry EADI/EHSI left, fully switchable Dual Garmin GTN 750 FMS/Comm/Nav/ILS, LPV capable, PRNAV Dual King KN-63 DME Dual Garmin GTX-330D Mode S Diversity Transponders, WAAS, ADS-B out King RDR-2000VP Color Radar with BFGoodrich WX-950 Storm Scope GNS/XLS FMS with Shadin Air Data King KR-87 ADF King KRA-405B Radio Altimeter Artex C406-2 ELT
Interior & Entertainment Light grey 5 place passenger interior with forward RH side facing seat (overhauled 2019), 4 place center club seating, belted lavatory ( approved as 6th seat). Condition 9/10 Exterior Overall body White with Silver and Blue stripes, condition 7/10
Reduced Price $1,075,000
1996 Cessna Citation Jet Serial Number: Registration: Airframe TT:
525-0144 N525BQ 3317.4
ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44, no engine program Engine #1 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6) Engine #2 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6)
Avionics & Connectivity (RVSM, P-RNAV and WAAS approved) Sperry EADI/EHSI left, switchable to either Garmin 430 Autopilot Sperry SPZ-5000 IFCS w.Flight Director Dual Garmin GNS 430, 8,33 Khz, WAAS, COM/NAV/GPS, switched to Avidyne 500 MFD King KY-196A as 3rd transceiver Avidyne 500 MFD Moving Map King KN-63 DME King KR-87 ADF King KRA-405B Radar Altimeter King KN 158 RMI Dual Garmin GTX 330W, Mode S diversity, ADS-B out Transponders King RDR-2000VP Color Radar switched to Avidyne 500 TCAS 1 switched to Avidyne Artex C406-2 ELT
FROG Flugservice GmbH Dr. Martin Altmann, CEO POB 5253, D-51491 Overath, Germany
130 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Interior & Entertainment Grey leather seating, four executive club seats, side facing belted seat. Belted Toilet counts as 6th seat Exterior White body with decal black, maroon and golden stripes, golden decal door and window frames
Reduced Price $730,000
Tel: +49-2204-74033 Mob: +49-170-6778833 Email: jetsales@froggy.de
www.AVBUYER.com
Rheinland Air Services June.qxp 21/05/2020 10:03 Page 1
S H O W C A S E
2019 Kodiak 100 Series II Serial Number: Airframe TT:
281 Factory New
• A truly versatile multimission aircraft with superior STOL performance and high useful load • EASA certified, German registered • For immediate sale & delivery • Make offer
Airframe & Engines – Hartzell 4 Blade Propeller, constant speed, feathering, reversible Engines – Engine Specs: P&W PT6A-34, Takeoff Power: 750 hp Avionics & Connectivity – Garmin G1000® NXi Suite – Garmin GWX-70 Weather Radar – Garmin GTX 345R – L3 ESI-500 Standby Instrument – Safe Flight ARINC 429 – AoA Indexer – GTS 800 TAS / WX-500 Stormscope Package – Chartview Enable Card – DME
Interior & Entertainment – 2 + 8 Timberline Interior Package, Warm Brown – 10-Place Oxygen Upgrade (increases the KODIAK‘s endurance and operation at higher altitudes) – Air Conditioning – Standby Battery Upgrade Exterior – KODIAK 2019 Paint Scheme: All White with Black Stripe – Customize it to your liking! – TKS Ice Protection with Tank in External Baggage Compartment – 29“ Tire Combo (Increases gross landing weight to 7,255 lbs / 3.290 kg)
2019 Kodiak 100 Series II Serial Number: Airframe TT:
268 46
• Discover the most modern, rugged and reliable airplane in its class • EASA certified, German registered • For immediate sale & delivery • Make offer
Engines – Engine Specs: P&W PT6A-34, Takeoff Power: 750 hp – Hartzell 4 Blade Propeller, constant speed, feathering, reversible Avionics & Connectivity – Garmin G1000® NXi Suite – Garmin GWX-70 Weather Radar – Garmin GTX 345R – L3 ESI-500 Standby Instrument – Safe Flight ARINC 429 – AoA Indexer – GTS 800 TAS / WX-500 Stormscope Package – Chartview Enable Card – DME
Rheinland Air Service GmbH Contact: Frank Prochaska Flughafenstraße 31 41066 Mönchengladbach, Germany www.AVBUYER.com
Interior & Entertainment – 2 + 6 Timberline Interior Package, Warm Brown – 10-Place Oxygen Upgrade (increases the KODIAK‘s endurance and operation at higher altitudes) – Air Conditioning Exterior – KODIAK 2019 Paint Scheme: Aviation Gray / Tropic Green / Matterhorn-White – TKS Ice Protection with Tank in External Baggage Compartment – 29“ Tire Combo (Increases gross landing weight to 7,255 lbs / 3.290 kg)
Tel: +49 2161 9948 122 Mobile: +49 178 2550 246 Email: sales@ras.de www.ras.de I www.Kodiak.aero
AVBUYER MAGAZINE R Vol 24 Issue 6 2020 R
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Genel Havacilik BELL 407 June.qxp 21/05/2020 09:26 Page 1
S H O W C A S E
2004 Bell 407 Serial Number: Registration: Airframe TT: Landings:
53606 TC-HLN 2473:56 4724
Engines 2438:12/ TC: 3027 (SN:CAE-847650) ANNUAL INSPECTION COMPLETED ON MAY 2020 60 MONTHS INSPECTIONS COMPLETED ON JUNE 11, 2019 NO MAJOR INSPECTION IS DUE FOR LONG TIME and ALL MAINTENANCE PERFORMED BY BELL CSF. HELICOPTER IS FULLY EQUIPPED WITH OPTIONAL EQUIPMENT and ALWAYS HANGARED Avionic and radio standart equipment Bendix/King KMA 24 H Audio Panel Bendix/King KX-165 NAV/COM Bendix/King KT-76C Bendix/King KLN 89 GPS System Garmin GNS530A GPS/COM/VOR/LOC/GS Garmin GDL69 Artex C406-1 ELT Equipment & options Bristol Aerospace Wire Strike Protection System Air Comm Corporation Air Conditioner Kit with Dual Fwd Evaporator Air Comm Corporation Cabin Heater with windshield & Chin bubble defrost AAI high visibility crew doors AAI high visibility crew doors openers
AAI automatic passenger door openers aai automatic baggage door opener AAI pre-flight step handle kit AAI folding maintenance steps AAI baggage floor protector AAI cabin floor protectors (Front) AI cabin floor protectors (Rear) AAI slide window latch kit AAI headsets retention brackets AAI Collective safety cover kit AAI cyclic support safety cover kit Paravion snow deflector dzus fastener kit Flight environments thermal/acoustic insulation system AAI VHF Com antenna mount kit LifePort, Inc. Interiors Center Refreshment Console with Ice Chest AAI WX-500 Stormscope Ant. Mount Kit AAI Deluxe Console AAI SFIM Force Trim AAI SFIM 2-Axis Autopilot AAI steerable Landing light Shadin Fuel Flow WHELEN STROBES CHELTON EFIS SYSTEM Motorola cabin portable cellular phone hands free kit AAI Carbide skid shoes AAI Aux Tank Protector Garmin GTX-33 Transponder BHT Max Internal Gross Weight Kit BHT Expandable M/R Blade Bolt Kit AAI Deluxe Console
Genel Havacilik A.S. Serdar Tamer Ozel Hangarlar Bolgesi Istanbul, 34149, Turkey
132 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Tel: +90 53056 82483 Email: alsu@genelhavacilik.com.tr
www.AVBUYER.com
P133-137.qxp 22/05/2020 09:12 Page 1
Bombardier Global Express
Lutz Druschke Price:
Please Call
Year:
2004
S/N:
-
Reg:
-
TTAF:
6498
Location: Germany
Gulfstream G200
M A R K E Tel: +49 (0) 172 7338747 T E-mail: lutz@amjetaviation.com P L Rockwell Collins Venue CMS. Batch 3.4 Avionics Upgrade. TCAS with A Change 7.1. ADS-B Out Version 2. GoGo ATG-5000 Broadband. GoGo C UCS-5000 WiFi LAN. Flap Rib-Bushing Service Bulletin. Windshear Escape Guidance. FANS 1/A, RPN 4. WAAS, LPV Approach Capability. E CVR - Datalink Upgrade. GoGoTalk & Text Option. Swift Broadband w/additional SDRouter. Upgrade to New Electric Window Shades. Airframe: BD-700-1A10 Model Hours Landings. Total Time/Landings Since New 6,498 2,293. Entry Into Service Date: May, 2004. Engines: Rolls Royce BR700-710A2-20 Hours Cycles. Total Hours/Cycles Since New 6,498 2,293. Rolls Royce Corporate Care Engine Program. APU: Honeywell Model RE-220 Hours Cycles. Hours /Cycles Since New 4,289 4,508
Tel: +49 (0) 172 7338747 E-mail: lutz@amjetaviation.com
Lutz Druschke Price:
Please Call
Year:
2008
S/N:
-
Reg:
-
TTAF:
3465
Location: USA & Canada
LOW TIME - 3465 HOURS, EXCELLENT OWNERSHIP HISTORY, LOADED WITH OPTIONS. AUTO-THROTTLE, FLIGHT DATA RECORDER, RUNWAY AWARENESS & ADVISORY SYSTEM ENGINE & APU PROGRAMS, CARBON FIBER INNER INLET BARREL UPGRADE BEAUTIFUL 10-PASSENGER INTERIOR WITH ATG-5000 BROADBAND WIFI GALLEY MICROWAVE OVEN AND POCKET DOOR FOR PRIVACY. Airframe: 2292 LANDINGS SINCE NEW SAFE FLIGHT AUTO-THROTTLES. Engines: 3368 & 3465 HOURS SINCE NEW. 2236 & 2292 CYCLES SINCE NEW. PRATT & WHITNEY PW306A ENGINES. PRATT & WHITNEY ESP GOLD – MAINTENANCE PROGRAM. QTA STC - CARBON FIBER INNER INLET BARREL REPLACEMENT
FILE PHOTO
Embraer Legacy 600
JetSolution Aviation Group Price:
Make Offer
Year:
2008
S/N:
14501037
Reg:
N888JK
TTAF:
2511.8
Location: USA & Canada
Dassault Falcon 7X
Make Offer
Year:
2016
S/N:
272
Reg:
M-WANG
TTAF:
913.06
Location: Hong Kong
Embraer Praetor 600
Price:
Make Offer
Year:
2020
S/N:
TBA
Reg:
TBA
TTAF:
-
Tel: +852 5596 6909, +61 472 787 688 E-mail: transactions@jetsolution.com
Certified 14-seater configuration with forward galley. Engines on ESP Platinum program. APU on Honeywell MSP program. Airframe on FalconCare program. Honeywell MCS-7120 high speed data (Wi-Fi). TCAS 7.1, ADS-B Out, FANS 1/A, CPDLC. Head-up Displays (HUD). Synthetic Vision. Electrical club-seat backrest recline, leg rest and lumbar control. Electrical conference table, dual-divan and window blinds control. Cabin lightings, TV and Airshow by FalconCabin with smart phone/ tablet remote control. European designer’s cabin with high-end interior materials. Low hours for owner’s self-use only, one owner since new. EASA compliant. Mint condition, same as new with premium interior material. Hangared in Hong Kong for visual inspection
Aero Team Consulting
Location: France
www.AVBUYER.com
Designer’s new interior and new paint in April 2019. Configurated for 13 passengers, 4 Crew with 3-zone (aft private suite) and 2 lavatories. Recessed floor with additional 2 inches cabin height. Swift64 broadband Wi-Fi. Upgraded avionics with TCAS 7.1 and ADS-B Out version 2. Engines on Rolls-Royce CorporateCare program. APU and Airframe on Embraer Executive Care Enhanced program. Fresh from 144-month inspection and landing gear overhaul. US FAR Part 135 compliant with higher technical specification. Airframe: Airframe enrolled on Embraer Executive Care Enhanced program. Engines: Engines on Rolls-Royce CorporateCare program. APU: APU enrolled on Embraer Executive Care Enhanced program
JetSolution Aviation Group Price:
Tel: +852 5596 6909, +61 472 787 688 E-mail: transactions@jetsolution.com
Tel: +33 (0) 620 681 931 E-mail: mk@aeroteamconsulting.com
An owner based in southern France is looking for a co-owner of an Embraer Praetor 600, based at Cannes-Mandelieu airport (LFMD) and to be delivered in Q1 2021. Ordered aircraft has full options for JAR OPS 1 operations and will be in an EASA registry. A share of 30% is available. Avionics: Cockpit: Rockwell-Collins Pro Line Fusion. ELT / NAV. Single ADF. E2VS (Embraer Enhanced Vision System). Single Initial Reference System (IRS). Third VHF (VDL Mode 2). Dual HF plus SELCAL. ACARS Datalink. ACARS over Iridium. Additional Equipment: Ka-Band Ultra High Speed Data. Iridium Satellite Phone Enhanced Cabin Management System plus Upper Tech Panel Galley media compartment 19” HD Monitor Upgrade – Enhanced CMS
AVBUYER MAGAZINE R Vol 24 Issue 6 2020 R
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M A R K E T P L A C E
Gulfstream G550
The Ritchie Group Price:
Make Offer
Year:
2012
S/N:
5364
Reg:
-
TTAF:
2050
Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com Upgrades Completed and Ready for Service. Schedule Your Showing Today! Paint and Interior Upgrades Completed March 2020 at West Star Aviation; Highly Optioned with RAAS and SVS 2020 Compliant! ADS-B Out (DO 260B), CPDLC FANS 1/A, Enhanced Navigation, Lightning Sensor System and Airshow 4000; Impeccable Maintenance History
Location: USA & Canada
www.jet-transactions.com
Cessna Citation Bravo
Boris Peev Price:
$800,000 No VAT
Year:
2002
S/N:
550-1007
Reg:
LZ BPP
TTAF:
3533.8
Location: Bulgaria
Mitsubishi Solitaire
Michael Kraemer Price:
Please Call
Year:
1979
S/N:
407SA
Reg:
N750CA
TTAF:
4.410
Location: Germany
McDonnell Douglas Helicopter 520N Mario Lauricella Price:
USD $950,000
Year:
1995
S/N:
LN067
Reg:
N105WF
TTAF:
940
Tel: +359 888 211 134 E-mail: office@aviobravo.com EU Registration. ENG1-PW 530A, 3533.8 H. ENG2-PW 530A, 3533.8 H. RVSM: Factory Standard. No damage history. Complete records and all log books. Special AOC Package: Commercially registered and operated in European AOC. This aircraft is in excellent condition. Aircraft's current location - LBSF. Avionics: Honeywell Primus 1000 Integrated Avionics System 3 – Tube EFIS. COMMUNICATION: Dual Bendix/King KY196B Comm. VHF NAVIGATION: Dual Bendix/King KN53 Nav Receiver. Interior: Standard Citation Bravo (7+ 2 + 1 Belted Lavatory). Center Club, two Aft Forward-facing Seats, rear Facing Seat across from Galley including Belted Lavatory. Price Reduced
Tel: +49 (0) 173 252 9420 E-mail: m.kraemer@tpsd.de Low time, great remaining hours. Cruise speed upto 321 KTS. Range upto 1.600 NM with 45 min reserve. Most ideal aircraft for private european buyer. EU customs cleared and VAT paid. Comes with new annual/100/200/600h inspection in 1/2020. EU service stations, pilot training and type rating TRTO available. European potential buyers to contact Michael at +49 173 2529420. US customers contact Bill at +1 401 556 5648, training and ferry available on request. Engines: TPE-331-10-511M. TT 4.410, recommended TBO 5.400. TSHS 810. RH prop due 3/2024. LH prop due 2/2027. G600 syntetic Vision. GTN750, on G600 and KMD850
Tel: +39 393 918 3639 E-mail: lauricellaconsulting@gmail.com Airframe TSN 940, Engine TSN 430 NDH warranty on the engine 1 year/ 300 hrs, fresh annual inspection, new fan straps.
Location: Italy
Airbus H125
Helipoland Price:
€1,800,000
Year:
2011
S/N:
7076
Reg:
SP-SRB
TTAF:
590
Location: Poland
134 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Tel: +48 (0) 503 828 110 E-mail: info@helipoland.com Best equipped and very well miantained VIP configured helicopter with aerial work provisions. Airframe: Wire strike protection system. High visibility rotor blades. DART landing gear footsteps. RH skid step mirror. Aerospace secondary cowling latch STC. Engines: Arriel 2B1, SN 51056. APU: 200A Starter Generator. Avionics: EFIS: Garmin G500H. VHF COM, ILS/VOR/GPS NAV: 2 x Garmin G430 WAAS. Moving map: MT Visionair EP. Interior: Dual Controls. Stylence VIP configuration 5 pax + 1. Brown Leather uphoistery, carpet. Energy absorbing pilot and copilot seat. Additional equipment: Air Conditioning. Autopilot Cobham Heli SAS 2 axis with beep trim Dual hydraulic system. Price Reduced
www.AVBUYER.com
P132-136.qxp 20/05/2020 09:52 Page 3
Bombardier Learjet 36A
Leonard Price: Year: S/N:
M A R K E Tel: +1 (806) 662 5823 T Hudson Drilling Email: ronfernuik@hotmail.com P L Offer/Trade Learjet 36A, Long range capability, as configured 2,400 A nautical miles. Can be upgraded to 2,600 mile range. C 1977 Recent paint and interior, RVSM. E 36A-030
Reg:
N160GC
TTAF:
15,600
Location: USA
BELL 412EMS
Competitively priced at US $1,375,000, may take trade on a King Air or a helicopter Would consider trade for KingAir 200/300
Leonard Hudson Drilling Price:
Offer
Year:
1981
S/N:
33017
Reg:
N554AL
TTAF:
15265
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Full EMS Medical 4 patient and 4 attendant interior. Recent ‘no expense spared’ airframe refurbishment at Acro Helipro within the last 100 hours. Both engines are fresh Pratt and Whitney overhauled. Immediate delivery, Meticulous records. Current with medical interior and 13 passenger utility interior are included, aircraft is ‘turn-key’ will provide Fresh annual /Export C of A
Location: USA
BELL 212 (Five Available)
Leonard Hudson Drilling Price:
Please Call
Year:
1991-1996
S/N:
Call for details
Reg:
Call for details
TTAF:
Call for details
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Five, Late Model, Bell 212s In 'Off Shore’. Available for immediate use. Asking $3.1M to $3.6M USD. Serial numbers: 35034, 35048, 35060, 35088 and 35096
Location: USA
Agusta A109A II
Rotorflug Helicopters Price:
Make Offer
Year:
1983
S/N:
7307
Reg:
D-HFMW
TTAF:
6330
Location: Germany
Bell 206B III
Rotorflug Helicopters Price:
Make Offer
Year:
-
S/N:
2359
Reg:
D-HWLL
TTAF:
20829
Location: Germany
www.AVBUYER.com
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de • Always hangared • Predominant of time used for aerial work • Special STC for powerline works • Aircraft is sold without engines The aircraft is operating, why the condition and airframe component times will be subject to changes depending upon such operations. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Please contact us for full specs
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de • Always hangared • High skids • Predominant of time used for aerial work The aircraft is operating, why the condition and component times will be subject to changes depending upon such operations. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Please contact us for full specs
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M A R K E T P L A C E
Airbus/Eurocopter SA 365
Rotorflug Helicopters Price:
Make Offer
Year:
1984
S/N:
6100
Reg:
D-HAMV
TTAF:
6000
Location: Germany
Agusta AB206
Rotorflug Helicopters Price:
Make Offer
Year:
1980
S/N:
8597
Reg:
D-HOON
TTAF:
14670
Location: Germany
Agusta AB206
Rotorflug Helicopters Price:
Make Offer
Year:
1983
S/N:
3777
Reg:
D-HJET
TTAF:
12290
Location: Germany
Airbus/Eurocopter AS 365N-2
Rotorflug Helicopters Price:
Please Email
Year:
1997
S/N:
6514
Reg:
D-HBUB
TTAF:
4950
Location: Germany
Airbus/Eurocopter AS 365N-2
Rotorflug Helicopters Price:
Please Email
Year:
1995
S/N:
6496
Reg:
D-HJLR
TTAF:
3750
Location: Germany
136 Vol 24 Issue 6 2020 AVBUYER MAGAZINE
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de • Always hangared • Predominant of time used for ambulance / HEMS The aircraft is not operating anymore because the cycles of Module3 (Turbine 1) are close to limit but it is being kept airworthy. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Please contact us for full specs
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de • Always hangared • High skids with emergency floats • Predominant of time used for aerial work The aircraft is operating, why the condition and component times will be subject to changes depending upon such operations. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Interior: grey leather. Exterior: blue and white Please contact us for full specs
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de • Always hangared • High skids • Predominant of time used for aerial work The aircraft is operating, why the condition and component times will be subject to changes depending upon such operations. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Please contact us for full specs
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de This aircraft was used exclusively in the field of air rescue and is currently in the beginning of a major 600 hour inspection. The ship has a unique equipment, which is mainly designed and developed for air rescue operations. The general condition of the aircraft is fine and can be visually inspected at any time. Remaining times are also good and are available on request. It is the Brother of our other Aircraft D-HJLR, which is listed here as well and mainly configured in the same setup! Both aircrafts are also available for lease! Engines: Arriel 1C2; Engine Fire Extinguishers; Fire Detectors. Avionics: AP155D AFCS Computer; Voice Recorder A100S; VHF COM Transceiver TY92; Passenger & Crew Stereo Intercom
Tel: +49 (0) 600 791 4125 E-mail: georgios.kipros@rotorflug.de This aircraft is a flagship, which is exclusively used in the field of air rescue. It is in absoluty excellent condition, the ship has a unique equipment for air rescue operations and provides a lot more outstanding features! The aircraft is currently in use, what influences the ACTT for sure. Remaining times are very good and are available on request. It is the Brother of our other Aircraft D-HBUB, which is listed here as well and mainly configured in the same setup! Both aircrafts are also available for lease! Engines: Arriel 1C2; Engine Fire Extinguishers; Fire Detectors. Avionics: AP155D, AFCS Computer; Cockpit Voice Recorder CVR-120; VHF COM Transceiver TY92; Sepura BOS; Kannad 406AP ELT; Brite Saver 2 UMS
www.AVBUYER.com
P133-137.qxp 21/05/2020 11:37 Page 5
M A R K E Tel: +49 (0) 600 791 4125 T Rotorflug Helicopters E-mail: georgios.kipros@rotorflug.de P L Price: Make Offer • Always hangared • High skids A • Predominant of time used for aerial work C Year: 1996 The aircraft is operating, why the condition and component E times will be subject to changes depending upon such
Bell 206B III
S/N:
4440
Reg:
D-HRFJ
TTAF:
9365
Location: Germany
Alberth Air Parts
+1 832 934 0055
operations. Verification of the condition of the aircraft and its component times shall be the responsibility of the purchaser. Please contact us for full specs
Par Avion Ltd
Spare Parts
FALCONS • HAWKERS • LEARS
•BUY •SELL •TRADE CESSNA LEARJET HAWKER WESTWIND FALCON GULFSTREAM
www.alberthaviation.com
www.paravionltd.com SALES • ACQUISITIONS • CONSULTING
Fax: +1 832 934 0011
The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet Advertiser’s Index 1st Source Bank ..................................................69
Eagle Aviation........................................................47
Leading Edge Aviation Solutions......................75
AIC.............................................................120 - 121
ElliottJets ...............................................................17
Lone Mountain Aircraft........................................71
Aircraft BlueBook ..............................................119
Engine Assurance Program ...............................91
Mesotis Jets ........................................................115
Airfleet Capital ......................................................63
Freestream Aircraft ..............................................21
NBAA-BACE ......................................................111
Airline Transport Professional .........................119
FROG Flugservice GmbH...............................130
Nexus Aviation ....................................................128
Aradian Aviation .................................................103
Genel Havacilik ..................................................132
OGARAJETS...........................................1, 14 - 15
Avjet Global ................................................. 22 - 23
General Aviation Services ..................................57
Par Avion ................................................................45
Avpro.................................................................8 - 11
Global Jet Capital.................................................79
Partners in Aviation ..............................................87
Castle Air................................................................81
Global Jet Monaco .......................................... 4 - 5
Pratt & Whitney.....................................................53
Central Business Jets .......................................139
Hatt & Associates.................................................25
Rheinland Air Service .......................................131
Conklin & de Decker............................................96
Jet8........................................................................129
Sparfell & Partners ......................................26 - 27
Corporate Concepts.........................................105
Jetcraft Corporation ..........................18 - 19, 140
The Jet Business..........................................30 - 31
Dassault Falcon Pre-Owned. ........................2 - 3
JetHQ .............................................................40 - 41
The Private Jet Company....................................29
Donath Aircraft Services.....................................67
JETNET...................................................................98
Wright Brothers Aircraft Title ..........................109
Duncan Aviation...........................................34 - 36
Jet Sense Aviation .............................................127
PROUD MEMBERS OF
British Business & General Aviation Assoc. • British Helicopter Assoc.• European Business Aviation Assoc. • International Aircraft Dealers Assoc. • National Aircraft Finance Assoc. • National Business Aviation Assoc.
AvBuyer (USPS 014-911), April 2020, Vol 24 Issue No 4 is published monthly by AvBuyer Ltd, 1210 West 11th Street, Wichita, KS 67203-3517 and has a targeted circulation to decision makers within business and corporate aviation throughout the world. It is also available on Annual Subscription @ UK £40 and USA $65. POSTMASTER: Send address changes to: AvBuyer Magazine 1210 West 11th Street, Wichita, KS 67203-3517. Postage is paid at Wichita, KS and additional mailing offices © Copyright of AvBuyer Ltd. Every effort is made to ensure the accuracy of material published in AvBuyer Magazine. However, the publishers cannot accept responsibility for claims made by manufacturers, advertisers or contributors. The views expressed are not necessarily those of the Editor or the publishers. Although all reasonable care is taken of all material, photographs, CD & DVDs submitted, the publishers cannot accept any responsibility for damage or loss. All rights reserved. No part of AvBuyer Magazine - Advertising, Design or Editorial - may be reproduced, stored in a retrieval system, or transmitted in any other form, or by any other means, electronic, mechanical, photographic, recording or otherwise, without prior written permission of the publishers.
www.AVBUYER.com
AVBUYER MAGAZINE R Vol 24 Issue 6 2020 R
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Aircraft For Sale • AIRCRAFT • HELICOPTERS
AIRCRAFT
PAGE
AIRCRAFT
AIRBUS A318 Elite . . . . . 4 A319 VIP . . . . . . 4 A380-800 . . . . . . 26
BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 140 BBJ2 . . . . . . . . . 4 BBJ3 . . . . . . . . . 21 737-200 . . . . . . . 105 737-300 . . . . . . . 105 787-9. . . . . . . . . . 19, 140
BOMBARDIER Global 5000 . . . . 19, 45, 140 Global 6000 . . . . 5, 18, 19, 21, 26, . . . . . . . . . . . . . . . 129, 140 Global 6500. . . . 5, 18 Global Express . 8, 35, 133 Global Express XRS. 5, 8, 18, 19, 30, . . . . . . . . . . . . . . . 140
Challenger
35A . . . . . . . . . . . 51 36A . . . . . . . . . . . 135 40XR . . . . . . . . . . 51 45 . . . . . . . . . . . . 11, 71 45XR . . . . . . . . . . 11, 17, 35, 41 55 . . . . . . . . . . . . 51 60 . . . . . . . . . . . . 11, 57 60SE . . . . . . . . . . 139 60XR . . . . . . . . . . 19 70. . . . . . . . . . . . . 29 75. . . . . . . . . . . . . 17
CESSNA Citation II . . . . . . . . . . . . . 51 III . . . . . . . . . . . . . 51
V. . . . . . . . . . . . . . 47, 103 X . . . . . . . . . . . . . 11, 17, 19, 47, 71 X +. . . . . . . . . . . . 140 XLS . . . . . . . . . . . . 35, 45 XLS+ . . . . . . . . . . . 17, 103 CJ1. . . . . . . . . . . . . 17 CJ2. . . . . . . . . . . . . 19, 115, 140 CJ2+ . . . . . . . . . . . 45, 75 CJ3. . . . . . . . . . . . . 17, 29, 35, 45, 51 CJ4. . . . . . . . . . . . 19, 26, 47 Bravo . . . . . . . . . 134 Excel . . . . . . . . . . 15, 29 Grand Caravan EX19 Jet . . . . . . . . . . . . 15, 47, 130 Mustang. . . . . . . . 34 Sovereign. . . . . . 11, 47 182T . . . . . . . . . . 47 206H . . . . . . . . . . 47, 5 340A RAN VI . . . 47 T201N . . . . . . . . . 51 Ultra . . . . . . . . . . . 51 500 . . . . . . . . . . . . 51
CIRRUS
300 . . . . . . . . . . . 5, 9, 10, 17, 18, 57, . . . . . . . . . . . . . . . 75 350 . . . . . . . . . . . 9, 19, 140 601 . . . . . . . . . . . 14 601 1A . . . . . . . . 18 601-3A . . . . . . . . 10 601-3A-ER . . . . . 35 601-3R . . . . . . . . 36, 115 604 . . . . . . . . . . . 10, 127, 140 605 . . . . . . . . . . . 10, 18, 19, 23, 30, . . . . . . . . . . . . . . . 34, 57, 140
Learjet
PAGE
SF50 . . . . . . . . . . 71 SR20-G3 . . . . . . 47
DAHER SOCATA TBM930 . . . . . . . 17
DASSAULT FALCON 7X . . . . . . . . . . . . 3, 4, 9, 21, 36, 133, . . . . . . . . . . . . . . . 139 8X . . . . . . . . . . . . 8 20C-5AR. . . . . . . 51 20F-5BR . . . . . . . 17 50 . . . . . . . . . . . . 9, 105 50EX . . . . . . . . . . 9, 51 900B . . . . . . . . . 17, 19 900C . . . . . . . . . 139 900DX . . . . . . . . 57 900DX EASy . . . 4 900EX . . . . . . . . 105 900EX EASy . . . 9, 30, 31, 35, . . . . . . . . . . . . . . . 140 900LX . . . . . . . . . 19, 140 2000 . . . . . . . . . . 9 2000EX EASy . . 14, 30 2000EX EASyII . 25 2000LX . . . . . . . . 2, 4, 67 2000LXS. . . . . . . 128
AIRCRAFT
PAGE
ECLIPSE AEROSPACE 500 . . . . . . . . . . . 35 550 . . . . . . . . . . . 103
EMBRAER Legacy 450 . . . . 19, 47, 140 Legacy 600 . . . . 19, 26, 133 Legacy 650 . . . . 19, 140 Lineage 1000 . . 26 Lineage 1000E . 139 Phenom 100 . . . 15, 35 Phenom 100E . . 36 Phenom 100EV. 15 Phenom 300 . . . 17 Praetor 600 . . . . 133
GULFSTREAM IVSP . . . . . . . . . . 8, 29, 103 V. . . . . . . . . . . . . . 30, 31, 57, 105 150 . . . . . . . . . . . 23 200 . . . . . . . . . . . 8, 133 280 . . . . . . . . . . . 14, 25, 75, 139 400 . . . . . . . . . . . 34 450 . . . . . . . . . . . 4, 19, 23, 103 500 . . . . . . . . . . . 22, 23, 75 550 . . . . . . . . . . . 1, 4, 8, 14, 21, 23, . . . . . . . . . . . . . . . 26, 30, 31, 103, 134, . . . . . . . . . . . . . . . 139 650 . . . . . . . . . . . 30 650ER. . . . . . . . . 4, 19, 21, 140
HAWKER BEECHCRAFT King Air 200XPR . . . . . . . 51 350i . . . . . . . . . . . 25, 30, 41 A100 . . . . . . . . . . 51 B100 . . . . . . . . . . 41 B200XPR . . . . . . 51 C90B. . . . . . . . . . 19, 51, 140 C90GTx. . . . . . . . 17
Beechcraft B60 Duke . . . . . . 51 Premier I . . . . . . 19, 140 A36 Bonanza. . . 41
Hawker 400XP . . . . . . . . . 15, 41, 51 800XP . . . . . . . . . 10, 26, 29, 34, 36, . . . . . . . . . . . . . . . 75 800XPi . . . . . . . . 10, 15, 19, 140 850XP. . . . . . . . . 29
AIRCRAFT
PAGE
900XP . . . . . . . . . 10, 15, 17, 75 4000 . . . . . . . . . . 25, 41
HOWARD AERO 500 . . . . . . . . . . . 139
HONDA Jet HA 420 . . . . . 17
IAI Astra 1125SP . . 139
MITSUBISHI Solitaire . . . . . . . 134
PIPER Cheyenne IIIA . . 51 Saratoga . . . . . . 51
QUEST AIRCRAFT Kodiak 100 Series II. . 131
HELICOPTERS AIRBUS/ EUROCOPTER AS 365 . . . . . . . . 136 AS 365N-2 . . . . . 136 EC 120B . . . . . . . 103 H125 . . . . . . . . . . 134
AGUSTAWESTLAND AB206 . . . . . . . . . 136 AW109AII . . . . . . 135 AW109 Power . . 27 AW109S Grand. 27
BELL 206BIII . . . . . . . 135, 137 212 . . . . . . . . . . . 135 407 . . . . . . . . . . . 13 407GXP . . . . . . . 129 412EP . . . . . . . . . 103 412EMS . . . . . . . 135
MD 520N . . . . . . . . . . 134
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2015 Falcon 7X SN267
Embraer Lineage 1000E SN190-00611
8X Replacement makes this Aircraft Available Now, Will Deliver with United States C of A, Will Deliver with New Paint and Interior, Heads Up Display / Enhanced Vision / Synthetic Vision / Etc / Etc / Etcâ&#x20AC;¦
Only 1075 Hours and 450 Cycles Since New; Preferred 19 Passenger Interior, World Wide Ready, Transferrable Warranty and Maintenance Programs
2014 Gulfstream G280 SN2039
2015 Gulfstream G550 SN5508
Single owner since new, Enrolled in all Programs (Honeywell MSP Gold & Gulfstream Planeparts), 1,628 Hours, 502 Landings, 4 Year Heavy Check completed at Gulfstream Appleton, FANS/CPDLC, ADS-B, WAAS/LPV, Well maintained, 9 place interior
500 Hours TT, Warranties thru Sept 2022, RRCC, 4-zone seating with Dual Aft Couches
2005 Lear 60SE SN282
2002 Falcon 900C SN194
Artex 406 ELT w/ Nav Interface, WX 1000E Stormscope, Lightning Detection System, Ice Detection System, Extended baggage space, WAAS/LPV, Collins ADS-B Out
Will deliver with Fresh 3C, new paint, Cockpit upgrades & WIFI
Howard 500 SN5560
Astra 1125SP SN048
Arguably The 1st ever Business Aircraft, Chance to Own the Original Classic
Exceptional Pedigree, Airshow 410, Extension Fuel Tanks, External Lav Service, Increased Gross Weight Mod, AirCellST3100 Iridium Radio Telephone
www.cbjets.com ALSO AVAILABLE: Falcon 900EXy SN238 (Lease Only)
The smoothest connection to your next aircraft.
2009 BOMBARDIER GLOBAL 5000 S/N 9293 • 6,681.4 Hours; 3,097 Cycles • Fully Enrolled on Programs • Batch 3.3 & ADS-B Out Compliant RENDERING
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2001 BOEING BUSINESS JET
S/N
2003 DASSAULT FALCON 900EX EASy S/N 123 • 6,399.44 Hours; 3,668 Landings • Engines & APU Enrolled on MSP Gold • Easy II Enhanced 3rd Certification
2019 EMBRAER LEGACY 450 S/N 55010059
32774
• 4,890 Hours; 1,849 Landings •2 C-Check Completed in Nov 2019 •R epainted and Refurbished in 2018
ALSO AVAI L ABLE
• 6,566 Hours; 3,622 Landings •E ngines & APU Enrolled on Programs • FANS 1/A+, ADS-B Out
2011 BOMBARDIER CHALLENGER 605 S/N 5870
ALSO AVAILABLE
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
2004 BOMBARDIER CHALLENGER 604 S/N 5578
• 2,875 Hours; 1,984 Landings •E ngines & APU on JSSI; Airframe on SPP • ADS-B Out
I N FO @ JETC RAF T. CO M
6-2020_AVBuyer_Back Cover_Smoothest Connections.indd 1
• New Delivery Aircraft • G ogo L5 AVANCE High Speed Internet • CPDLC and ADS-B Out
1994 KING AIR C90B FEATURED 2015 BOEING 787-9 2003 BEECHCRAFT PREMIER I 2016 CHALLENGER 350 2012 CHALLENGER 605 2016 CHALLENGER 650 2013 GLOBAL 5000 2016 GLOBAL 6000 2011 GLOBAL XRS 2003 CITATION CJ2 2014 CITATION X+ 2013 FALCON 900LX 2006 HAWKER 800XPI 2016 GULFSTREAM G650ER 2011 LEGACY 650
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