FC San Marino April.qxp_FC December 06 23/03/2022 14:05 Page 1
Volume 26 Issue 4 2022
™
ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
The Future Starts Today, Choose Wisely
THIS MONTH Jet Comparison: Cessna Citation Mustang vs Embraer Phenom 100 Paying Premiums: Buying Jets in Today’s Market Tips on Forward-Thinking CMS Upgrades www.AVBUYER.com
Project1_Layout 1 25/03/2022 09:34 Page 1
Project1_Layout 1 25/03/2022 09:34 Page 2
Editor Welcome.qxp_JMesingerNov06 22/03/2022 09:13 Page 1
Guest Editor’s
VIEWPOINT
Pete Bunce
President & CEO, GAMA
A Promising Future for General Aviation
T
he General and Business Aviation industry has endured a great deal since the outset of the Covid-19 pandemic. We have faced numerous challenges and our resiliency has been tested, but our manufacturers actively managed their way through the past two years with a focus on the safety of our employees, the growth of our businesses and relations with customers. As we begin to come out of the pandemic, we are seeing that our industry is alive with new developments and a keen eye on the future. The General Aviation Manufacturers Association’s 2021 General Aviation Aircraft Shipments and Billings Report, released in late February, showed that our industry is healthy and growing. The strength and tenacity of the General Aviation industry has provided a strong foundation for us to rebound from pandemicrelated setbacks with a powerful showing in 2021. Overall, when compared to 2020, all aircraft segments (piston airplanes, turboprops, business jets, piston helicopters and turbine helicopters) saw increases in shipments and preliminary aircraft deliveries were valued at $25.2bn, an increase of 10.2%. Currently, total aircraft shipments are converging on figures that were seen before the outset of the pandemic. In 2021, the piston airplane segment saw its highest deliveries reported in over a decade, even exceeding the pre-pandemic shipments reported in 2019. These figures align with the growing demand for primary training aircraft, which is strong in the US and growing in the Asia-Pacific market. Turboprop airplane shipments showed strong growth when compared to 2020 and are back to pre-pandemic levels. The market share of the turboprop segment showed its utility and diversity as Latin America saw growth, and shipments in the U.S., Europe and Asia-Pacific remained strong. The turboprop segment also led the way in embracing the novel safety capability of the Collier Trophy-winning Autoland system developed by Garmin across several airplane models. Business jet deliveries grew, compared to 2020, and are beginning to converge on pre-pandemic levels. When you examine the grouping of weight segments of business jets (Light, Mid-size and Large) you see that all three segments rebounded, which is different from what we experienced after
the 2008 financial crisis (when Large Jets remained strong and smaller jets declined significantly in delivery rates). Both the piston and turbine helicopter segments also bounced back in 2021. While the helicopter market has experienced highs and lows over the last decade, their deliveries remain healthy – particularly seen in the return in deliveries during 2021 compared to 2020.
Gearing Up for Bigger Things
Our industry stands ready to continue forging forward to create opportunities and bolster our growth. We have been able to navigate through the headwinds created by the pandemic by strategically managing workforce and supply chain challenges. As we look to the future, it will be important that we grow and strengthen our workforce and work across our supply chain during our industry resurgence. It is encouraging to see that flight traffic is at record levels as well as interest from new customers and buyers of General and Business Aviation aircraft. Our manufacturers entered 2022 with strong backlogs, which should make for a promising year. As the excitement across our industry continues to grow, so do our developments in design, technology and manufacturing. There’s a continued focus on new and innovative technologies that improve utility and safety as well as advancements that improve efficiencies of aircraft. There is also an ongoing commitment to environmental sustainability. The Business Aviation industry sector recently renewed and strengthened its record on addressing climate change with an aggressive commitment of net-zero carbon emissions by 2050. And industry leaders have agreed to an initiative with the FAA with the goal of transitioning piston-engine aircraft to lead-free aviation fuels by the end of 2030. Our industry is also investing in promising new powerplant technologies in both the electric and hybrid-electric space, as well as exploring the potential future role of hydrogen as a source of power for aircraft. The industry has shown perseverance in the face of adversity, with continued growth and excitement. We look forward to another prosperous year as we set our sights on the future of this great industry. ❙
Pete Bunce is the President and CEO of the General Aviation Manufacturers Association. GAMA exists to foster and advance the general welfare, safety, interests and activities of the global Business and General Aviation industry, including promoting a better understanding of manufacturing, maintenance, repair, and overhaul.
More information from https://gama.aero 4 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
EXCLUSIVELY FOR SALE GULFSTREAM 650
BOEING B737-700
GULFSTREAM 650
AIRBUS A319 VIP / MOTIVATED SELLER
AIRBUS A318 ELITE
BOEING B787-8 / CALL FOR PRICE
2017 / SN 6254 NEW TO MARKET / PRICED TO SELL
2015 / SN 6115 PRICED TO SELL
2010 (DELIVERED 2011) / SN 4211 ASKING PRICE / USD $26.50M
2006 / SN 34622 NEW TO MARKET / PRICED TO SELL
2008 (DELIVERED 2011) / SN 3542 ASKING PRICE / USD $39.50M
2014 / 80 pax Government configuration
WANTED AIRCRAFT
BOMBARDIER CHALLENGER 350
GULFSTREAM 450
EMBRAER LEGACY 650
PILATUS PC24
3D & Technical details available here
Inventory_2022.indd 1
GLOBALJET.AERO
T +377 97 77 0104 aircraftsales@globaljet.mc
17.03.2022 14:49:09
GULFSTREAM 650 2017 / SN 6254 NEW TO MARKET / PRICED TO SELL
LOW HOURS WITH ONLY ONE OWNER SINCE NEW
AIRFRAME HOURS / 1901 AIRFRAME CYCLES / 608 CAPACITY / 14 PAX 3D & Technical details available here
AV Buyer April 2022.indd 1
GLOBALJET.AERO
T +377 97 77 0104 aircraftsales@globaljet.mc
17.03.2022 14:46:16
BOEING 737-700 2006 / SN 34622 NEW TO MARKET / PRICED TO SELL
INTERIOR COMPLETED BY WINCH DESIGN
AIRFRAME HOURS / 5506 AIRFRAME CYCLES / 1611 CAPACITY / 19 PAX Technical details available here
AV Buyer April 2022.indd 2
GLOBALJET.AERO
T +377 97 77 0104 aircraftsales@globaljet.mc
17.03.2022 14:46:20
GULFSTREAM 650 2015 / SN 6115 PRICED TO SELL
ACQUIRE A PEDIGREE AIRCRAFT MAINTAINED BY GULFSTREAM
AIRFRAME HOURS / 2052 AIRFRAME CYCLES / 890 CAPACITY / 15 PAX 3D & Technical details available here
AV Buyer April 2022.indd 3
GLOBALJET.AERO
T +377 97 77 0104 aircraftsales@globaljet.mc
17.03.2022 14:46:20
NEW CONTENTS APRIL22.qxp 23/03/2022 13:04 Page 1
Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com ADVERTISING Steve Champness Publisher Americas +1 770 769 5872 steve@avbuyer.com Lise Margin Account Manager +1 703 818 1024 lise@avbuyer.com David Olcott Account Manager +1 802 233 6458 davo@avbuyer.com Maria Brabec Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com 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 Michas Rapf michas@avbuyer.com Emma Davey emma@avbuyer.com MANAGING DIRECTOR John Brennan +44 (0) 20 8255 4229 john@avbuyer.com USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE AvBuyer House, 34A High Street, Thames Ditton, Surrey KT7 0RY, UK +44 (0)20 8255 4000 Freephone from USA: +1 855 425 7638 PRINTED BY Fry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055
www.AVBUYER.com
4 12
32 36 42
Guest Editor
Vol.26 Issue 4
Pete Bunce, GAMA
Market Indicators
Trends and Observations from Leading Business Aviation Analysts
Market Insights
Paying Premiums: Buying Jets in Today’s Market What’s the Latest on Aircraft Market Values?
Buying & Selling Aircraft
Aircraft Buyer Questions, Part 3: Amenities
46
Selling a Plane? Important Avionics Considerations
50
Selling Tips: Rules for Successful Jet Transactions
54 58 61 66 74
Ownership
Don Catalano: Business Growth Equals Flying Growth How to Better Control and Manage Your Operating Costs
Aircraft Price Guide Turboprop Values
Jet Comparison
Cessna Citation Mustang vs Embraer Phenom 100
Flight Department Management
In-House Operation? How to Set Up for Success (Part 2)
78
Electronic Technical Logbooks: The Benefits for BizAv
82
Considerations When Picking Your Airplane’s Base
86 90 94
2022
Contents
EDITORIAL Commissioning Editor Matthew Harris +44 (0) 20 8939 7722 editorial@avbuyer.com
Engines
What are the Basics of Rolls-Royce CorporateCare?
Cabin Electronics
Jet Connectivity: Short-Term Development Outlook Tips on Forward-Thinking CMS Upgrades
100 Showcase 101 Marketplace 106 Advertisers’ Index 106 Aircraft for Sale Index Next Month • •
How to Find a Good Deal in a Seller’s Market Five Ways to Manage Your Jet’s Maintenance Costs
THE BEST AIRCRAFT FOR SALE SEARCH anywhere, everywhere on pc, smartphone and tablet
AVBUYER MAGAZINE Vol 26 Issue 4 2022
9
File Picture
+41 22 787 08 77 / +1 301 525 4380 / +65 6221 0989 TRADING.GENEVA@SPARFELL.AERO
2007 BOEING 737-700 BBJ OFF-MARKET
TRADING.USA@SPARFELL.AERO TRADING.SINGAPORE@SPARFELL.AERO
3’500 Total Hours, VIP Bedroom & Lavatory, 15 Passengers
WWW.SPARFELL.AERO
Make Offer
CHARTER
MANAGEMENT
SALES & ACQUISITIONS
File Picture
LEASING
DESIGN
File Picture
2002 BOEING 737-700 BBJ OFF-MARKET
LEGACY 450 S/N 8
8’500 Total Hours, VIP Bedroom & Lavatory, 18 Passengers
1’400 Total Cycles,1’600 Total Hours, EASA, Full Programs
2007 AGUSTA A109E POWER OFF-MARKET
1980 BELL 206 S/N 8592
2’150 Total Hours, 4’600 Total Cycles, EASA, Engines on Aerodynamics Powerplan, 5+1 Passengers
3’750 Total Hours, 5’500 Total Cycles, EASA, Floats Equipped, Recent Paint and Interior
Make Offer
Make Offer
Make Offer
Make Offer
Deal Pending
File Picture
2015 PHENOM 300 OFF-MARKET
2007 HAWKER 400XP S/N 501
3’000 Total Hours, EASA, On JSSI and EEC standard
4’800 Total Hours, VMAX Engine Program, ADSB, EASA, Fresh A/B/C/D Inspections
Deal Pending
Deal Pending
Deal Pending
2014 CITATION CJ4 OFF-MARKET
2013 PC12NG S/N 1349
3’400 TT, ADS-B Out v2, T-CAS 7.1, Airframe & Engines on Programs,EASA, 9 Pax, WAAS, LPV, One Owner since New
4’342 Total Hours, ESP Gold, 8 Pax Interior, Large Cargo Door, Cabin Fresh Air and Filtration System
Deal Pending
Deal Pending
Acquisitions
File Picture
FALCON 2000/FALCON 2000EX
File Picture
CITATION CJ4 Wanted
File Picture
GLOBAL 6000/7500
File Picture
GULFSTREAM 500/600/650ER
File Picture
File Picture
CHALLENGER 605/650
FALCON 2000EX
File Picture
PHENOM 300/300E
File Picture
ERJ 135/145
MarketIndicators-Lucia.qxp_Layout 1 22/03/2022 10:22 Page 1
MARKET INDICATORS
Business Aviation Market Overview Business Aviation analyst Brian Foley assesses a few of the ways the RussiaUkraine conflict could impact the Business Aviation industry… here are a lot of moving parts in our industry. Some onlookers who don’t understand Business Aviation may wrongly conclude that sanctions only affect business jet manufacturers when in fact it’s a much wider sphere of influence. Here are a few examples of some of those segments which could be affected, and what the impact could be.
T
Manufacturers
The most noticeable effect will be the inability for OEMs to sell and support new business aircraft in Russia. According to AMSTAT, there are currently 167 business jets registered in Russia. Notionally, however, the number of Russian-owned jets worldwide is probably closer to 400-500 units since the majority are registered outside of the country. Thus, the number of affected jets represents a relatively small number of the world’s active fleet of 23,000 aircraft. However, the types of jets typically purchased in this region are some of the 12 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
most high-end, valuable jets produced, making the overall industry impact a little more significant. While future sales are of concern, existing orders which haven’t been delivered yet are also problematic. The good news is that business jet sales are still very active elsewhere around the world, so any cancelled orders should be quickly refilled. Collateral damage around the OEMs includes such things as local sales agents and customer service representatives, approved repair stations, parts warehouses, and other OEM-sponsored support networks. More significantly, any current supply chain affiliations in the region will send manufacturers scrambling for alternate sources, a key one being aircraft-grade titanium.
Aircraft Brokerage
There are known concerns and ongoing questions within the pre-owned aircraft broker community. Clearly any deals that may have been in the works have been derailed, and any commissions or
consulting fees that may still be owed have been thrown into uncertainty. It’s possible that several pre-owned jets with Russian connections may be sold at any cost. While that would normally be good news from a broker’s perspective in a period of low inventory, the fact that it could be perceived as negotiating with a sanctioned entity raises the importance of “Know Your Customer” before doing business.
Finance and Insurance
These are complex areas, but aside from future lost business there are additional real-time obstacles. Receiving lease or finance payments will likely be a problem with Russia’s banking system severely constrained. Should a repossession ever become necessary, the country has already announced that its leased Airbus and Boeing airliner fleets will remain where they are, which would be unwelcome news for business jets as well. On the insurance side, if a financier www.AVBUYER.com
MarketIndicators-Lucia.qxp_Layout 1 22/03/2022 10:24 Page 2
AVBUYER.com
BRIAN FOLEY formed Brian Foley Associates (BRiFO) in 2006 to assist aerospace firms and investors with strategic research. In addition to his work as Market Intelligence Editor, AvBuyer, he is a regular contributor for Forbes.com and his views are published in the media worldwide. Brian serves the Transportation Research Board as a member of the Business Aviation, helicopter, commercial airline and UAV system subcommittees, and he previously served on the Board of a Wall Street financial firm. Before starting his consultancy business, Brian was marketing director at Dassault Falcon Jet for 20 years, and started his career at Boeing. He is an instrument-rated private pilot. https://www.linkedin.com/in/brifo/
has war risk coverage it would expose the insurer and the chain of reinsurers as well, whose resources may already be stretched from insured Western airliners stuck in limbo.
Ground Services
Greatly reduced aircraft operations will negatively affect FBOs, fuel and ground service providers, flight planning, and other support services. Flight crews, maintenance personnel and ground handlers based in Russia also stand to be idled.
Charter
This has the potential to perhaps be the most troubling sector of the industry. It’s been estimated that upwards of 10% of European business jet traffic is somehow related to Russia. Some charter operators have an outsized exposure to this market and run the risk of significant business disruptions, which could affect their www.AVBUYER.com
affiliates and partners around the globe. Any downsizing or defaults in this segment could potentially cause a cascade of late model pre-owned jets entering the market, which would then compete directly with new aircraft.
In Summary
This is only a partial list of cause and effect of sanctions on the industry. Still, there will inevitably be some localized business hardships throughout the year, which may even affect colleagues whom we personally know and respect in the region. However, from a broader, global perspective the situation, unless escalated, should not yet significantly alter the course of what should still be a respectable year for the overall industry.
MI www.brifo.com
“Any downsizing or defaults in this segment could potentially cause a cascade of late model pre-owned jets entering the market, which would then compete directly with new aircraft.”
page 16
AVBUYER MAGAZINE Vol 26 Issue 4 2022
13
EXCLUSIVELY REPRESENTED BY
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
2005 DASSAULT FALCON 900EX EASy 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
THE WORLD’S FIRST AND ONLY STREET LEVEL CORPORATE AVIATION SHOWROOM.
EXCLUSIVELY REPRESENTED BY
2013 GULFSTREAM G550 SERIAL NUMBER 5427
FRESH 12/24/48/96 MONTH INSPECTIONS, US BASED & US REGISTERED, BRAND NEW ALL WHITE PAINT – READY FOR BUYER’S STRIPES, BRAND NEW INTERIOR, IMMEDIATELY AVAILABLE, FORWARD GALLEY, ENGINES & APU ON PROGRAMS, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN (HAPP) & HONEYWELL MAINTENANCE PROTECTION PLAN (MPP), 2020 COMPLIANCE - ADS-B OUT, CPDLC, FANS-1/A+, WAAS/LPV, RVSM, TCAS 7.1, HD-710 HIGH SPEED DATA
2008 GULFSTREAM G550 SERIAL NUMBER 5178
FORWARD GALLEY, FORWARD CREW REST COMPARTMENT, PREVIOUSLY EASA EU-OPS CERTIFIED, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, AVIONICS ON HONEYWELL AVIONICS PROTECTION PROGRAM (HAPP), SATCOM HIGH SPEED DATA HH-128, GOGO ATG AND SBB, SECURAPLANE EXTERNAL CAMERA SYSTEM, ENHANCED VISION SYSTEM (EVS), HEAD UP DISPLAY (HUD), ADS-B OUT, CPDLC, FANS-1/A, EVAS STC
25 Park Lane, London W1K 1RA EU +44 (0) 203 603 0000 | US +1 917 414 1995 sales@thejetbusiness.com | www.thejetbusiness.com
Project1_Layout 1 29/03/2022 10:59 Page 1
MARKET INDICATORS
AVBUYER.com
Global Flight Activity Report The global headlines are focused on Russia’s invasion of Ukraine, with significant consequences emerging for the global aviation industry. WingX Advance provides an overview of the region, as well as global flight activity during February… In terms of flight activity, Russia, Belarus and Ukraine saw precipitous drops in all flight activity at the end of February. In business jet activity, Charter and Aircraft Management operators saw the largest activity declines in the region, with Private Flight Departments proving a little more resilient. Business Aviation activity in Russia was trending down by 20% compared to the end of February in 2019. The size of the Russian aviation industry, globally speaking, is small in some respects. It accounts for only 0.5% of global business jet deliveries, 0.7% of the active fleet, and there are under 100 aircraft on the Russian register. But Europe has relatively high exposure to business jets regularly operating out of Russia – an estimated 12% of all jets based in Europe in 2021. Last year, 7% of all business jet sectors operated in Europe inter-connected with Russia or Ukraine, and 12% of globally active Ultra-Long-Range Jets had at least one movement in Russia during 2021. In the couple of days prior to this report being written, business jet connections between Russia and the Middle East had grown much faster than European connections.
Rest of the World The global trend in business jet activity had yet to register any impact from the Ukraine crisis at the time of writing. The 2022 trend since the start of the year indicates a 13% increase over comparable 2019. By comparison, scheduled airline sectors still lag their 2019 trend by 31%, despite a 38% bounce so far this year. The North American market is much less exposed than Europe to direct flight connections with Russia. Nevertheless, overflight restrictions are in force, and the leading US suppliers of Business Aviation services will be severely constrained in supporting Russian aviation concerns, with widespread sanctions implemented.
Within the US, the pattern of business jet demand for February was familiar: Florida was the primary hub, California and Texas were back above their 2019 levels, but the North-East was proving slower to recover – especially New Jersey, and Teterboro. Overall, the biggest rebound this year in the US market has come from the Ultra-Long-Range Jet sectors, which is 24% above pre-pandemic records. Private flight departments were belatedly showing signs of recovering. “For Business Aviation, the Ukraine crisis is having a direct effect on a relatively small share of overall flight activity,” said Richard Koe, Managing Director, WingX Advance. “But the proliferation of sanctions will significantly complicate the whole Business Aviation market – especially in Europe – across the field, from flight operations to charter brokerage, aircraft financing, management and maintenance.”
MI www.wingx-advance.com
page 20
2021 Airplane Shipments Portray BizAv’s Tenacity
The General Aviation Manufacturers Association released its Shipment and Billings Report for 2021 in February, and the results left no question that we’re in a period of strong recovery. Every segment of the industry finished well ahead of last year’s totals. The Business Aviation industry delivered a total of 2,630 new airplanes in 2021, worth $21.6 billion, representing a gain of 9.2% in shipments (up from 2,408 units), and 7.6% in revenue
(up from $20.0 billion in 2020). Jet deliveries were up 10.2%, finishing at 710 units, compared with 644 in 2020. The turboprop segment had the strongest gain over 2020 shipments, finishing 19% ahead with 527 units, up from 443 the year before. Piston deliveries finished 5.5% ahead at Year-End 2021, with 1,393 deliveries versus 1,321 in 2020. Read our full analysis online at AvBuyer.com, including • Business Jet Market Specifics
• Turboprop Market Specifics (with agricultural turboprop units removed).
SCAN THIS QR CODE FOR A LINK TO THE FULL ARTICLE. HOW TO SCAN A QR CODE: Most smart phones have a QR reader on their camera. If not, you can download one for free from the Play/App Store. Open the QR Code reader or camera app on your phone. Focus your device on the QR Code so it's clearly visible on the screen. Once scanned, follow link to web address, as prompted.
16 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
Y O U R
N E X T
A I R C R A F T
A W A I T S
HAWKER 4000
Enjoy eight-passenger comfort and luxury in this fully equipped 2009 aircraft. Equipped with Honeywell Primus Epic Flight Deck, this jet has outstanding pedigree. Enjoy the convenience of ATG-5000 High Speed Internet.
8
Passengers
3,208 Range in NM
470
Maximum KTS
GLOBAL SCOPE, PERSONAL CONNECTION Aviation is our lifeblood. We’ve lived it for three generations, seeing how aircraft empowers business and fosters connections. We guide you through the world of global aviation. Tap into our expertise and passion. Let us find the specific aircraft that fits your needs. Contact us to begin.
H AT T & A S S O C I AT E S
HattAviation.com | info@hattaviation.com | +1.303.790.1050
Project1_Layout 1 25/03/2022 09:36 Page 1
Project1_Layout 1 25/03/2022 09:36 Page 2
MarketIndicators-Lucia.qxp_Layout 1 22/03/2022 10:28 Page 4
MARKET INDICATORS
AVBUYER.com
Table A
In-Service Aircraft Maintenance Condition & Marketability
Fleet Maintenance Condition $ Mil $1.60
5.30 5.216
$1.50
5.20
Asset Insight’s tracked fleet ended February with 5.3% fewer aircraft (-39 units) for sale. The analysis, undertaken on February 28, covering 134 models revealed just 703 aircraft listed for sale. Listings are now down over 58% since the June 2020 peak... Ask Prices for the listed fleet have increased 13.7% during the year’s first two months, following February’s 7.5% rise. Ask Prices are still down 7.1% year-over-year (YoY), as Large Jets are the only group in positive territory YoY. Asset Insight believes actual transaction values to be higher, however. It’s important to note that younger, lower-time, unlisted aircraft continue to transact at a pace we’ve never seen before. The listed fleet is comprised of mostly picked-over assets.
$1.45
5.10 M
A
M
J
Quality Rating
J
A
S
O
N
Maintenance Exposure
D
J
$1.40
F
Quality Rating Trendline
Table B G500
1.9%
Phenom 100
41.8%
G650ER
3.0%
Citation CJ1
42.6%
Boeing BBJ
5.8%
Hawker 400XP
43.1%
F2000LXS
7.3%
Learjet 40
43.3%
Global 6000
9.5%
Citation X (MSG3)
45.2%
Citation CJ4 525C
10.3%
Citation Excel 560XL
48.3%
Learjet 75
11.7%
Falcon 2000
49.2%
Citation Sovereign 680
13.8%
Caravan 208
49.5%
Pilatus PC-12
14.3%
KingAir B-200 - Pre-200151.8%
Hawker 900XP
17.8%
Citation V 560
56.4%
Citation CJ2+ 525A
18.2%
Premier 1A
56.6%
TBM 850
18.7%
Hawker 800XP
63.5%
Piper Meridian
18.7%
TBM 700A
68.4%
Citation Encore +
18.7%
Hawker Beechjet 400A 71.1%
Falcon 2000EX Easy
18.9%
GIV-SP
77.8%
CL-300
19.4%
Premier 1
77.8%
G450
19.6%
Piaggio P-180
82.1%
Following two consecutive months registering all-time high/worst figures, the ETP Ratio improved to 77.3%, a substantial decrease from January’s 82.1%. The change was unsurprising given the increase in Ask Price and substantial decrease in Maintenance Exposure. But it should be noted that the key driver was the figure posted by Large Jets. In fact, we predict ongoing challenges for most sellers of MidSize and Light Jet aircraft who expect to generate value-based prices. For anyone not familiar with the ETP Ratio, the statistic is a useful indicator of an aircraft’s marketability. It is 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’ (DoM) 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 Q4 2021, assets whose ETP Ratio was 40% or higher were listed for sale more than 59% longer (on average) than aircraft whose Ratio was below 40% (340 versus 541 Days on Market). During February, nearly 51% of Asset Insight’s tracked models and 61% of all listed aircraft posted an ETP Ratio above the 40% excessive mark.
Citation XLS
19.7%
Learjet 60
86.1%
KingAir B200 - Post-2000 20.2%
Falcon 50
86.6%
Citation CJ2
25.2%
GIV
92.7%
Caravan 208-675
27.2%
Hawker 800A
95.3%
Citation Encore
27.6%
Citation VII
97.0%
Piaggio P-180 II
30.1%
Citation VI
105.2%
Global 5000
30.3%
KingAir C90
107.3%
CL-604
30.4%
Hawker 1000A
109.2%
Hawker 4000
32.8%
Hawker Beechjet 400
112.2%
Caravan Grand 208B
33.5%
Citation ISP
115.8%
GV
33.9%
Learjet 31A
116.1%
Citation Mustang 510
34.2%
CL-601-3A
127.2%
Global XRS
35.1%
Citation II
132.5%
Embraer Legacy 600
35.2%
Falcon 20-5
133.9%
G200
35.6%
Citation III
160.9%
KingAir 350 - Post-2000 36.0%
GIII
165.7%
KingAir 350 - Pre-2001
37.4%
Learjet 55
188.1%
Learjet 60XR
37.5%
Learjet 31
193.4%
Falcon 900B
39.0%
Citation Bravo
206.7%
Market Summary
Citation V Ultra
39.3%
Learjet 35A
226.4%
Hawker 125-700A
292.3%
Inventory Fleet Maintenance Condition
As we continually note, an aircraft’s maintenance condition and its age have no direct correlation. As proof, both the listed fleet’s Maintenance Rating and Exposure improved in February, signifying fewer upcoming maintenance events and a lower cost to complete them. • Quality Rating: Improved an additional 0.8% to 5.216, following January’s 0.6% rise. The listed fleet remained within ‘Very Good’ territory, but the latest Rating was 2.6% lower in Quality YoY. • Maintenance Exposure: After posting a 12-month high/worst figure in January, Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) decreased/improved a substantive 8% during February, virtually matching February 2021’s figure.
Maintenance Exposure to Ask Price (ETP) Ratio
Inventory for the tracked fleet decreased to 3.4%, from January’s 3.5%. In February 2021 the listed fleet’s inventory was 8.3%, a figure that raised concerns about transaction opportunities during 2021. Asset Insight expects demand to remain strong in 2022.
20 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of February 28 2022 page 24
Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
www.AVBUYER.com
% 99.99
DISPATCH RELIABILITY
*
Maintain your engines. Keep your flight schedule. Enroll with EAP and get where you need to go. Besides our impeccable dispatch reliability record, choose EAP for personalized customer service and savings of as much as $80-$100 per engine per hour while using the same high-quality parts, engine MRO shops and field service technicians as the other programs. An EAP engine maintenance program keeps you in the air, not on the ground. Visit eap.aero to see the complete list of engines we cover and get a quote, or call 214.350.0877.
Customer focused. High-quality. Trusted resources. Less expensive. *Cumulative dispatches through 09/2021
EAP_AvBuyer_ads_2020.indd 20
12/14/21 11:52 AM
AIRCRAFT SALES & ACQUISITIONS
D
+1 402.475.2611 · www.DuncanAviation.aero/aircraftsales · 800.228.4277
W AN TE
• Challenger 605 & Early/All Models, Project Aircraft • Citation Mustang, XLS, XLS+ & Sovereign • Global 6000 • Gulfstream G450 • Hawker 800XPs: Non-airworthy • Legacy 600 • PC-12/47 or NG • Piper M600SLS
1 9 8 1 C o n q u e s t s /n 4 41 - 0 2 1 5
SELLING/ UPGRADING? CALL US!
2 0 0 4 Fa l co n 9 0 0 E X E ASy s /n 1 2 5
SOLD!
Recent Hot Section Inspections & Prop Overhauls. Fresh 12-Month Inspection. Garmin GNS 530 w/ WAAS/LPV.
8,028 Total Time. EASy II Avionics. FANS/1A 2016 Paint, Interior, & 2C Inspection. U.S. Ownership.
2 0 0 9 L e a r 4 5 X R s /n 4 0 3
2 0 0 6 C i t a t i o n X L S s /n 6 5 0 X L- 5 6 3 0
SOLD! SOLD!
4,289 Total Time. Engines on MSP. WAAS/LPV. ADS-B Out. Double Club Configuration For 8 Passengers.
4,768 Total Time. PA+ and MSP Gold. EASA Ready. ADS-B Out and In. LED Exterior Lighting. Dual FMS.
CONTACT US FOR CURRENT MARKET INSIGHT! RECENTLY SOLD/ACQUIRED • • • • • •
Falcon 900EX EASy BBJ2 Learjet 45XR Gulfstream G300 Piper Meridian (x2) Citation CJ2+ Acq
• Phenom 300 (x3) • Hawker 800XP • Falcon 900EX Acquisition • Citation CJ2+ Acq • Legacy 600 Acq (x4)
• • • • • •
Falcon 2000 Acq Hawker 800XP (x3) Hawker 800A Challenger 601-3A Citation Encore Falcon 2000
• • • • •
Citation XLS Citation VII Learjet 40XR Learjet 45XR Falcon 50EX Acq
Duncan Aviation has been assisting companies around the world with the sales and acquisition of aircraft for 65 years.
World AvBuyer Ad 3_18_22.indd 1
3/15/2022 8:45:33 AM
FROM
MILD WILD TO
F
ocusing on current design trends, Duncan Aviation took a well-used CL604 and completely updated it. Incorporating the owner’s specific tastes, Lead Designer Emily Krawczak pulled together blacks, grays, and silvers for an eye-popping interior. In addition to the highly stylized interior, the aircraft received a very original and stricking new paint scheme, avionics upgrades, a 12-month inspection, and it was provisioned for an aero-med air stretcher unit to convert the aircraft for special missions, as well as standard use.
Learn more: www.DA.aero/mild-to-wild
World AvBuyer Ad 3_18_22.indd 2
3/15/2022 8:50:24 AM
MarketIndicators-Lucia.qxp_Layout 1 22/03/2022 10:29 Page 5
MARKET INDICATORS
AVBUYER.com
Large Jets
Mid-Size Jets
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure
$ Millions
$1.25 $1.20 Jan-22
Feb-22
Mar-21
$2.00 Dec-21
$2.80
Feb-22
Dec-21
Nov-21
Oct-21
Sep-21
Jul-21
Aug-21
Jun-21
May-21
Apr-21
Mar-21
$9.0
Jan-22
$2.91
$1.30
$2.50
Nov-21
$3.00
Oct-21
$11.0
$2.70
Sep-21
$3.20
Jul-21
$13.0
$1.35
$3.00
Aug-21
$3.40
$1.40
$1.37
Jun-21
$15.0
$3.50
Apr-21
$3.60
$16.07
May-21
$17.0
$ Millions
Asset Quality Rating
Asset Quality Rating
Scale -2.500 to 10.000
Scale -2.500 to 10.000
5.400
5.700
5.300
5.600
5.200
5.109
5.519 5.100
5.500
5.000 5.400
However, with availability shrinking to 5.25 assets per tracked model, a figure that includes listings likely being operated by their final owner, it will be difficult for 2022 pre-owned aircraft transactions to exceed last year’s figure. Increased aircraft production may help, but OEMs will undoubtedly remain cautious with their production figures. Moreover, first-time buyers of new production aircraft will not have assets to remarket, and will thus be unable to help increase the pre-owned inventory. Large Jets: The tracked 43-model fleet’s availability is down to 2.6%, equating to just over three aircraft per model. By comparison, listings stood at 7.1% of the active fleet at the end of February 2021. The listed fleet decreased 10.2% in February 2022 (-15 units), 21.4% since December (-36 units), and is now nearly 65% below the June 2020 peak. The group’s Quality Rating rose 0.5% to just below the 12month average and, at 5.519, boosted Large Jets back into ‘Outstanding’ territory. However, Quality was 2.4% lower (worse) YoY. Again, maintenance status is not directly related to aircraft age, nor does it account for the asset’s specification. So, while an asset’s Quality may be high, it may not evoke buyer preference. Maintenance Exposure improved/decreased nearly 15% for the month, and also improved over 4.5% YoY. And Ask Price rose 7% in February to post a 12-month high for the second consecutive month, bringing Ask Price up 23.1% since December. These figures were impressive on their own, but also served to drop the ETP Ratio to 40.8%, a 12-month low for the group that is just above the 40% rate considered excessive. Whether these statistics will improve sales for a listed fleet seriously lacking young, low-time aircraft remains to be seen. 24 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Feb-22
Jan-22
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-22
Jan-22
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
4.900
Mid-Size Jets: The 45-model tracked fleet of Mid-Size Jets decreased another 3.4% in February (-6 units), which brought the year-to-date (YTD) reduction to 25.1% (-58 units). Availability stood at 4% of the active fleet, compared to 10% in February 2021, and the bad news didn’t stop there… The Quality Rating dropped a nominal 0.2% to 5.109, a figure that was just above the 12-month low (but the fleet did still manage to remain within ‘Very Good’ range). Maintenance Exposure also worsened, climbing 2.8% for the month to post a second consecutive 12-month high/worst figure, which was also 9.3% worse YoY. While Ask Price rose 5.7% for the month, and 24.5% YTD, the figure was still below the 12-month average (as well as 13.3% lower YoY) and could not compensate for the Maintenance Exposure increase. The ETP Ratio increased as a result, to a figure just under the 12-month high/worst value. Most sellers are unlikely to be pleased with the offers they receive, although some first-time buyers are tendering aggressive offers for assets that, on the surface at least, do not appear to be worth the price. Light Jets: Ample Light Jets are listed for sale compared to listings for Large and Mid-Size Jets, but that still only equates to 3.3% of the active fleet (versus 8.7% in February 2021). Availability decreased another 4.2% in February (-10 units) for the 29 tracked models, equating to a 13.9% drop over the first two months (-37 units) and nearly 58% since the June 2020 peak. The group’s Quality Rating improved another 1.6% that, at 5.134, kept it within “Very Good” territory, although the figure was 0.6% worse YoY. Maintenance Exposure improved too, decreasing 2.4% to approach the 12-month low/best figure, and
page 28
www.AVBUYER.com
AeroBuyNow April.qxp_Layout 1 22/03/2022 11:02 Page 1
<oZclj`m\ C`jk`e^ 2010 CITATION MUSTANG PJ-DOM 2010 YOM On PowerAdvantage+ - ProParts - ProTech One Owner Since New Always Part 135 Equivalent Operated Always Maintained by Textron Service Center ADS-B Out - SVT - ADF - TAS - Jepp Chart View
1999 BEECH 1900D UE-360 7111/6555 Engines Hours Remaining EASA AIR OPS CAT Dual AC- Dual AP Electrical Ground Cooling Dual Inverters 19 PAX + 2 Crew Airline Config Provisions for EMS Config
2001 EUROCOPTER EC120B 1206 VERY LOW TIME - MOTIVATED SELLER Garmin GNS530 Garmin GTX330 MT VisionAir EP2 MFD Ryan TCAD9900BX Dual Controls
<oZclj`m\ 8Zhl`j`k`fe DXe[Xk\j
BEECHCRAFT B200 OR BEECHCRAFT B350 2M$ Max Budget Cash and Educated Buyer CESSNA GRAND CARAVAN 1.5M$ Max Budget Cash and Educated Buyer
NXek\[ =fi HlXc`]`\[ 9lp\ij
DASSAULT FALCON 7X • DASSAULT FALCON 900EX • DASSAULT FALCON 2000EX • CESSNA CITATION CJ1 CESSNA CITATION SOVEREIGN +
F]]$DXib\k Fggfikle`k`\j
2023 DASSAULT FALCON 6X • BEECHCRAFT KING AIR 250 FUSION
AeroBuyNow is proud to welcome Victor ROINSON, our new Partner.
“I’ve directed all my energy towards my passion in aviation, and after 8 years in the industry, I have the know-how to assess the needs of our customers and optimize the quality of our services.”
?`i\ Lj JkXik Fgk`d`q`e^ +377 9990 1270 • hello@aerobuynow.com • aerobuynow.com
Africa FP May.qxp_Layout 1 24/03/2022 12:31 Page 1
O'Gara April.qxp_Layout 1 23/03/2022 10:50 Page 1
2016 LEGACY 500 SERIAL NUMBER 50
One US Owner Since New Extremely Well Equipped Less Than 1000 Hours Immaculate Inside & Out
JOIN THE OGARAJETS LEGACY SCAN TO SEE AVAILABLE POSITIONS
WANTED AIRCRAFT KING AIR B200 C I TAT I O N C J 3 + C I TAT I O N X L / X L S
C I TAT I O N X L S + HAWKER 900XP C I TAT I O N S O V E R E I G N
www.OGARAJETS.com +1 770 462 7372 | inquiry@ogarajets.com
GULFSTREAM G200 CHALLENGER 605 FA LC O N 5 0 E X
MarketIndicators-Lucia.qxp_Layout 1 22/03/2022 10:32 Page 6
MARKET INDICATORS
AVBUYER.com
Light Jets
Turboprops
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure $ Millions
$ Millions
$1.75
$1.10
$0.60
$1.60 $0.56
$1.65 $0.97
$0.55
$1.00 $1.55
$1.40
$1.45 Jan-22
Dec-21
Oct-21
Nov-21
Sep-21
Aug-21
Jul-21
Jun-21
Apr-21
May-21
$0.50 Mar-21
$0.90
Feb-22
Dec-21
Oct-21
Nov-21
Sep-21
Aug-21
Jul-21
Jun-21
Apr-21
May-21
Mar-21
Jan-22
$1.41
$1.30
$1.50
Feb-22
$1.50
Asset Quality Rating
Asset Quality Rating
Scale -2.500 to 10.000
Scale -2.500 to 10.000
5.200
5.104
5.200 5.100
5.134 5.100
5.000
Turboprops: More Turboprop assets are available on a per model basis than for any jet group, although total Turboprop listings equated to only 3.1% of the active fleet (for Asset Insight’s 17 tracked models) compared to 6.3% one year ago. Unit availability decreased by eight aircraft (-4.5%) in February, 50 units during the first two months of the year (-22.9%), and nearly 36% since the 2020 June peak. The latest fleet mix improved the Quality Rating by 1.2%. Although nearly 2% worse YoY, the latest figure kept Turboprops within the ‘Very Good’ range. Maintenance Exposure also improved, decreasing 0.8% to a figure half-way between the group’s average and 12-month high.
Feb-22
Jan-22
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
Asset Quality Rating Key Outstanding Excellent 5.500 5.250 or to Greater 5.499
Very Good 5.000 to 5.249
Good 4.750 to 4.999
Below Average Average 4.500 Less to than 4.749 4.500
Buyers appeared to be focused on lower quality, and lowerpriced assets during the month, as Ask Price increased 2.9%, although that value is still 5.9% below December’s figure and 6.6% lower YoY. The Maintenance Exposure improvement and Ask Price increase improved the ETP Ratio to 47.7% from January’s 12month high/worst 49.1%. The group’s Ask Price continues to be higher than that of Light Jets, while the various other statistics continue to give sellers a distinct edge. MI www.assetinsight.com ❙
TONY KIOUSSIS is President & CEO of Asset Insight, providing valuations, audits, analytics and consulting services, and a uniform methodology for grading an aircraft’s maintenance condition. Previously he worked with GE Capital’s Corporate Aircraft Finance group; Jet Aviation; and JSSI, developing the “Tip-to-Tail” airframe maintenance program. https://www.linkedin.com/in/tony-kioussis-a366b28/
28 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
May-21
Mar-21
Feb-22
Jan-22
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
that value was 3.5% lower/better YoY. Even Ask Price aided the group’s statistics, rising 5.3% (a total increase of 5.6% since December), although that value is still 16.2% lower YoY. The net effect of these changes was an improvement to the group’s ETP Ratio, although a decrease to 110.1% (spot-on the 12-month average) from 111.6% is not going to improve sellers’ fortunes. While an aircraft’s maintenance status may be ‘very good’, when Maintenance Exposure doubles the total cost of the asset, most savvy buyers will focus on other assets.
Apr-21
4.900
5.000
UNDERSTAND THE BIZAV MARKET with AvBUYER.com
www.AVBUYER.com
Jet HQ inventory FP April.qxp_Layout 1 24/03/2022 11:12 Page 1
Your Headquarters for Global Aircraft Sales 2020 BEECHCRAFT KING AIR 250 • One Owner Since New • ADS-B Out/ WAAS/ LPV • BLR Aerospace Composite Winglets • Synthetic Vision System • Total Hours 108 • Total Landings 67 • PT6A-52 Engine • Hartzell 4 Blade Propeller • Make offer
1993 BEECHCRAFT KING AIR 300-LW • S/N: FA-230 • TT: 6,506 • Make offer
2007 DASSAULT FALCON 2000EX EASY • Serial Number: 117 • TT: 5,975 • Total Landings: 3,460 • Engines Enrolled on ESP Gold / APU • Enrolled on MSP Gold • Next Gen Avionics – FANS 1/A, CPDLC, • ADS-B Out • Make offer
1997 HAWKER BEECHJET 400A • Serial Number: RK-135 • TT: 6,434 • Total Landings: 5,1927 • New Paint and Interior- 2019 • ADS-B Out V2 • Proline 21 with Modernization • Package- SVS, • RNAV with WAAS/LPV Approach Capability • Make offer
Data Capture December.qxp_Layout 1 23/03/2022 15:36 Page 1
General Aviation April.qxp_Layout 1 22/03/2022 11:53 Page 1
Market Insights.qxp_MARKET INSIGHTS 22/03/2022 09:47 Page 1
MARKET INSIGHTS
Paying Premiums: Buying Jets in Today’s Market Current supply and demand in the Business Aviation market means aircraft buyers are paying premiums. But what constitutes a reasonable price expectation? Are aircraft values likely to come down soon? Matt Harris asked Central Business Jets’ Jay Duckson…
aving been actively involved in the aircraft resale market for almost 40 years, Central Business Jets’ Founder and President Jay Duckson is well qualified to comment on the high premiums today’s buyers face because of high demand and low supply of inventory on the preowned business jet market. Central Business Jets was established by Mr. Duckson in 1983, and today regularly surpasses $200m in annual sales of aircraft from every major manufacturer. Across his career, Duckson, who has a Degree in Economics and a minor in Aerospace Engineering, has overseen the transaction of over 1,000 aircraft around the world, through upswings and downturns in the market. “For nearly 40 years, I’ve represented a wide variety of clients, from Fortune 500 to Forbes 1000 companies, and high-net-worth entrepreneurs,” he explains. By representing them exclusively, Duckson says Central Business Jets has been given the grace of time to buy, and to stringently examine every on- and offmarket aircraft. “This allows us to be selective and patient, without needing to rush the process just to make a commission.
H
32 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
“The data we gather gives us unique insights as to what is currently for sale, what may be for sale next month, and what may be for sale next year. This is how we determine the supply side of the equation,” he outlines. What’s playing out in today’s market, however, is uncharted territory, with inventory levels never being as low as they are now. As a result, aircraft values have risen, and sellers are clearly in the driving seat… AvBuyer: We’ve heard some troubling talk relating to sellers demanding buyers accept their aircraft “as-is”, owing to the high demand and low supply on the market currently. Is any aircraft worth that kind of risk, or is the cost of corrective maintenance simply part of the premium that buyers should expect to pay for a business aircraft today? JD: Rumor has it that perhaps 30% of transactions may fall into this category. Although, we would never allow our clients to buy an aircraft “as-is”, we could feasibly allow a very limited one-, or two-day Pre-Buy Inspection at a seller’s choice of facility, provided we can perform a few simple tasks.
www.AVBUYER.com
Market Insights.qxp_MARKET INSIGHTS 22/03/2022 09:47 Page 2
AVBUYER.com
At Central Business Jets, we have an exclusive arrangement with a few maintenance professionals, and together we add the cost of the airplane with the cost of making the plane ‘perfect’ for the buyer. Sharing that overall cost with our client, we’re able to make an informed decision together on whether to buy or pass, based on what makes the best sense for the buyer. So, there is no reason why buyers should need to feel unnecessary corrective maintenance is part of the premium they pay for the right jet in today’s market. With the right support from their broker, buyers will only pay a premium on what makes the best sense for them. AvBuyer: Speaking of premiums, there has been some speculation that recent volatility in the stock market could lead to prices in the used jet market starting to drop. Where do you stand on this, and why? JD: In my opinion, this will absolutely not be the case! I have owned Central Business Jets since 1983. During that time, I’ve concluded that it’s not the stock market, but the Global GDP and Client Wealth that has the
www.AVBUYER.com
broader connection with future price trends. Historically, the more money a person or corporation has, the more likely they are to either charter, lease, partner, or own an aircraft, where the need exists. So, although (as of early March) the Dow Jones Industrial Averages had dropped over 10%, from 37,000 to 32,000, this does not foretell a 10% drop in aircraft values. While some people’s wealth is tied to the stock market, one would assume they are diverse and only have a partial exposure to stock market fluctuations. Yearly swings should, therefore, not affect them. Moreover, since 2011, Money Supply (M1) has increased from approximately $2 trillion to $18 trillion – a 900% increase. In today’s world, it would be naïve to believe the increase in M1 and some sort of CPI variable doesn’t have some influence too. A broad-brush approach finds a strong Gross Domestic Product (GDP) helps companies to grow and strengthen, and strong companies own aircraft. The opposite happens when GDP weakens. Coupled with more first-time buyers entering the marketplace, perhaps due to increased wealth, or security and/or Covid concerns, I would conclude the market – and specifically pricing – is driven by simple supply and demand.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
33
Project1_Layout 1 29/03/2022 11:00 Page 1
MARKET INSIGHTS
AVBUYER.com
We know currently there are just too many buyers chasing too few aircraft. Short of a global war, or a major natural disaster the current demand should continue throughout 2022. Prices will not drop anytime soon – and certainly not by 10%. AvBuyer: A few months back, some brokers believed the upswing in jet values was a correction after more than a decade of depreciation, rather than actual price appreciation. Is that still the case? Just how far do you expect values to fall once the market does begin to replenish with inventory?
JD: We have always been perplexed that a 10-year-old business jet was worth approximately 50% less than when it was new. That is a staggering amount when you consider the plane may have cost upwards of $50m, originally. At the depth of price despair in mid2020, values of a 10-year-old jet depreciated a staggering 70% of its cost when new. Prices were never like this when I began in this industry. But then, in 1979 there were approximately 4,000 business jets, compared to more than 23,000 today. We do expect that at some point in 2023 we may see a return to more balanced supply and demand, and, assuming a normal economy, it would be fair to assume a ‘more normal’ 3-5% annual price decrease on private jets. AvBuyer: Finally, what advice would you offer buyers in today’s market as they try to establish what is reasonable to pay, and what are simply expensive risks to be avoided…?
“...although (as of early March) the Dow Jones Industrial Averages had dropped over 10%, from 37,000 to 32,000, this does not foretell a 10% drop in aircraft values.”
JD: It is well known one of the cheapest parts of aircraft ownership is the fee you pay a leading broker to help you find your next plane, whether it’s new or pre-owned. The broker will help you navigate the selection process, obtain discounts, offer time-saving tips, weigh the risks against the rewards, and identify the added values, while helping you avoid paying for unnecessary extras and potential pitfalls. Ultimately, the selection of a seasoned broker will be worth their weight in gold to the savvy buyer looking to navigate this marketplace. More information from https://cbjets.com ❚
MATT HARRIS is commissioning editor for AvBuyer. He is an experienced General and Business Aviation journalist and has edited a variety of titles across the last two decades. These include AvBuyer, BizJet Advisor and GA Buyer Europe. https://www.linkedin.com/in/ matthew-harris-avbuyer/
34 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
UNDERSTAND THE MARKET BETTER with AvBUYER.com
www.AVBUYER.com
EAGLE AVIATION
DON’T JUST LIST YOUR PLANE
+1 803.822.5520
LET EAGLE AVIATION SELL IT!
SALES@EAGLE-AVIATION.COM
If you prefer, we have options to purchase your aircraft outright.
EAGLE-AVIATION.COM
2021 CITATION M2 • 525-1071
2003 CIRRUS SR22 • 0670
2016 CIRRUS SR20 G3 • 2318
2006 CIRRUS SR20 GTS • 1731
2002 CESSNA T182T SKYLANE • T18208141
2005 CESSNA 182T SKYLANE • 18281600 LEE THOMAS President 803.429.7408 cell | 803.822.5526 ofc lthomas@eagle-aviation.com CARY FRIEDMAN Aircraft Sales & Acquisitions 803.261.4782 cell | 803.822.5550 ofc cfriedman@eagle-aviation.com
1998 CESSNA 172R • 17280490
ARE YOU THINKING OF SELLING OR TRADING YOUR AIRCRAFT? With over 50 years of experience, we can help make sure you are getting the best value for your plane. Give us a call!
HOWARD HENRY Aircraft Sales & Acquisitions 336.406.6947 cell | 803.822.5527 ofc hhenry@eagle-aviation.com
RALPH LACOMBA Aircraft Sales & Acquisitions 803.530.3520 cell | 803.822.5578 ofc rlacomba@eagle-aviation.com BRYAN WOOD Piston Aircraft Sales & Acquisitions 816.665.6207 cell | 803.822.5522 ofc bwood@eagle-aviation.com
Market Insights 2.qxp_MARKET INSIGHTS 22/03/2022 09:37 Page 1
MARKET INSIGHTS
What’s the Latest on Aircraft Market Values? With inventory short and prices rising, can the current values seen in Q4 2021 hold up in the face of new challenges in 2022? Jason Zilberbrand assesses the latest trends from VREF… s we look back on 2021, it was undoubtedly one of the best years we have ever seen for aircraft values and market demand. Moving into 2022, the world seems to be on a hair-trigger, with extreme politics, inflation hitting its highest mark in 30+ years, increasing interest rates, and a war in Ukraine. The business aircraft market has, for the most part, ignored it all and continued its march towards new record highs. It has been challenging, to say the least, as asking prices increase quicker than most can track. VREF has kept tabs, though, and while the frantic pace of transactions kept us on our toes through the end of January, the transactional volume has started to slow. This is simply a byproduct of high demand and a deficient availability of pre-owned aircraft. New aircraft positions are being sold at an equally furious pace, and we are reminded of the mid-2000s with the premiums being tagged on to ask prices. It is true you can buy a future delivery position for less than a one-year-old used business jet, but the amount of time it will take for delivery could be three years or more. As we know, many things can change in that amount of time. It is much too early to predict the outcome of war in Ukraine, or the highest level of sanctions ever levied against a foreign country, or if it will have any impact on General Aviation. Based on the relatively low number of corporate jets impacted by the sanctions, there is little to no effect on values or the strength of the US market. However, it is difficult to gauge this early the number of aircraft being grounded or sold to cover the mounting financial pressure as a result of the economic
A
36 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
impact of the war on Europe. The coming weeks will play a significant role in the balance sheet of several leasing companies with substantial exposure if hundreds if not thousands of prominent companies vacate the Russian market, and the effect of this might be felt for many years to come.
Have we Hit a Values Ceiling?
Whether or not aircraft values have hit a ceiling is not easy to forecast. Each aviation segment will be impacted differently by inflation, increasing fuel costs, tight supply chains, and a somewhat unpredictable future. Commercial aviation, for example, will have higher costs that are passed on to passengers. Fuel surcharges have already sent many round-trip ticket prices through the roof. According to some reports, airline tickets have been soaring at a rate of 7% a month, and that was before the Ukraine war. Business jet operators will be sensitive to fuel prices. According to AirNav, the national average cost for a gallon of Jet-A for February 17th through March 14th was $5.45 a gallon. According to IATA the current price for a gallon of Jet-A is up 82% from a year ago. Combined with increased costs for maintenance, and interest rate adjustments, operating costs are rising. Some first-time buyers who have entered the marketplace may rethink whole-aircraft ownership in light of these increases. The current market environment and long working days are reminiscent of the boom in the mid-2000s, or even the crazy bull market of the late 1990s. It is also a lot different. This market feels more sustainable than the previous bull runs. The purchases seem to be more
www.AVBUYER.com
Market Insights 2.qxp_MARKET INSIGHTS 22/03/2022 09:37 Page 2
AVBUYER.com
justified, or at least understood by the masses as a necessity to combat Covid lockdowns (if you can afford it). ‘Affording it’ appears to be more of an afterthought, as more millionaires are created each year, and the stock market and other investments, have provided enormous returns. The number of millionaires created over the last five years is astounding. Almost one in nine people in the US (8.8% to be exact) are millionaires. There were over 18.6 million millionaires in 2019, and that number has more than doubled since 2000. Indeed, the top 1% of the US population controls an estimated 158 trillion dollars. Both the piston and jet markets have enjoyed a run that shows little (if any) sign of letting up any time soon. But it’s worth noting that for the first time in over 18 months, the price increases on the complex piston and high-performance piston aircraft are starting to stabilize. While the asking prices might be tied to the season and the deep freeze much of the country has been experiencing, only time will tell if inventory levels are
www.AVBUYER.com
starting to normalize. After all, most sellers will say the main reason for not listing their aircraft is that they can't replace it. The scarcity of inventory in the jet market has created a frenzy, while the same shortage in the complex single-piston market has sent some buyers to the sidelines. While much of this "taking a breather" can be attributed to weather and the lack of preowned inventory, some of it can be attributed to pure buyer frustration. When a buyer gets to the point that they throw in the towel, the market should take note. There is no reason to be alarmed just yet, but there is a limit to how high things can go. For the most part, the complex single piston market has hit the ceiling or plateaued. Still, it isn't easy to maintain the appreciation that many of these aircraft were witnessing, and it will be interesting to see what happens in the coming months as the flying season starts. Hot markets attract more sellers, and between the bottlenecks at maintenance facilities, a shortage of
AVBUYER MAGAZINE Vol 26 Issue 4 2022
37
Market Insights 2.qxp_MARKET INSIGHTS 22/03/2022 09:38 Page 3
MARKET INSIGHTS
AVBUYER.com
CHART A: Cessna P210N Quarterly Value Trends
labor, a shortage of parts availability, and supply chain nightmares, the time it takes to prepare an aircraft for resale, complete a project, or purchase a plane and refurbish it are taking much longer. Inventory levels on the GA side have been particular to the aircraft model, but levels are low across the board. On the business jet side, inventory is pretty much non-existent. That isn't to say aircraft are not for sale, but more and more transactions are occurring without the need to list the aircraft for sale at all.
Q4 2021 Market Trend Report
During Q4 2021, VREF subscribers generated 20,000 valuation reports every 30 days. This is up over 7% from the previous quarter. Single Engine Piston Aircraft: The market supply is tight across the board. Many popular single-engine piston aircraft are below 1% fleet availability. A prime example is the Cessna P210N, which has three aircraft for sale on the open market, with 441 in operation. Aircraft are selling in under 100 days. Chart A shows the P210N recovery in value since the great recession of 2008. The current peak is similar to the run-up we saw in the late 1990s. The Beechcraft Bonanza A36, meanwhile, has also been a stellar performer in residual value, with approximately 0.8% fleet availability. As you can see in Chart B, the A36 has been a better long-term residual value model, showing an increase in value year-to-year well before Covid. The Piper Lance PA32R-300 had 12 aircraft for sale on average, with less than 2.5% availability. As you can see in Chart C, the spike in values has been steady through 2020. Appreciation like this has not been seen since the Dot-Com boom of the late 1990s. Business Jets: The market recorded similar trends to those seen in the piston market, with some aircraft skyrocketing in value over the past 12 months. Five prime examples were the Hawker 800XP, Gulfstream G200, Cessna Citation Mustang, Bombardier Global Express, and Dassault Falcon 2000. Each aircraft experienced dramatic price increases: • The average Citation Mustang was up 25% from Q3 2021. • The Global Express suffered tremendous depreciation over the previous decade. But with values up more than 20% since Q3 2021, and availability hovering around 38 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
CHART B: Beechcraft Bonanza A36 Quarterly Value Trends
CHART C: Piper Lance PA32R-300 Quarterly Value Trends
www.AVBUYER.com
ElliottJets April.qxp_Layout 1 22/03/2022 12:06 Page 1
Our commitment to our customers is to deliver an elevated experience. We strive to provide the highest level of service with integrity and passion. With over eight decades of proven success brokering, acquiring, and selling aircraft all over the world, our customers and our reputation make Elliott Jets the trusted partner to chief pilots, executives, and aircraft owners. At Elliott Jets you will find the experts, with the right experience, to ensure that you find what you are looking for!
PHOTO COMING SOON Citation Bravo Year: 1999
Citation Jet Year: 1998
Phenom 100 Year: 2009
Challenger 300 Year: 2007
FOR SALE
FOR SALE
FOR SALE
FOR SALE
TBM 850 Year: 2013
Hawker 800XP Year: 1998
Citation Ultra Year: 1996
FOR SALE
SALE PENDING
SALE PENDING
For More Information, Call or Visit Us Online (844) 937-5387 WWW.ELLIOTTJETS.COM Let’s Be Social
Market Insights 2.qxp_MARKET INSIGHTS 22/03/2022 09:41 Page 4
MARKET INSIGHTS
•
5%, buyers have been paying premiums for wellmodernized, turnkey aircraft. The Falcon 2000EX also rose about 20% in value as buyers fight over the slim pickings available on the open market. In Q4 2021 there was just 2% of the fleet for sale.
Turboprops: The turboprop market has also benefited from the current circumstances, with many buyers looking for alternatives to Light Jets. The recent market surge has seen many potential new buyers in the single-engine turboprop market. •
• •
The Pilatus PC-12 remained the category leader in Q4 2021, and currently inventories are the lowest we have ever seen: PC-12 NG variants are in such high demand that less than 1% is available on the open market. PC-12/45 models are equally popular, and are hovering at just above 1% availability. The Beechcraft King Air B200, 350, and 90 series have also benefited from the recent market activity. Other aircraft to note are the Socata TBM 700, Piper Meridian, and Piper M600 – typical tradeups from the Cirrus SR22 and Cessna 182 piston aircraft.
AVBUYER.com
Helicopters: The rotorcraft market also rebounded, and many operators who were idle during the Covid lockdowns are not only back in business, but having a hard time meeting the needs of the consumer. Timber operators, as well as several utility operators, have been snatching up equipment to meet demand – and values have gone up about 15% since Q3 2021 for most Turbine and Piston helicopters. The darling Piston market is, once again, seeing increased values: in Q4 2021, the Robinson R44 had less than 3.5% availability for the first time in years. This trend should continue with buyers paying premiums for overhauled aircraft in excellent condition.
In Summary…
As we head into spring, and flying season resumes, we will keep a close eye on interest rates, as well as the price of fuel. As inflation continues to creep into all facets of our lives, maintenance and refurbishment costs are also likely to escalate. But can anything derail the current market? So far, the answer is ‘no’, but only time will tell if buyers are willing and able to pay more today than yesterday. With more uncertainty now than at this time last year, combined with volatility in the stock market, will consumers be willing to spend? Time will tell… More information from https://vref.com T
JASON ZILBERBRAND Jason Zilberbrand is the President of VREF. He is an Accredited Senior Aircraft Appraiser with the American Society of Appraisers (ASA), and an Accredited Member of the Appraisers National Association (ANA), and he is also an Accredited Member of the International Society of Appraisers (ISA). He is an expert witness, broker, inventorying dealer, acquisition agent, aircraft owner, aircraft operator, contract negotiator, consultant, teacher, conference speaker, and author.
40 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
UNDERSTAND THE MARKET BETTER with AvBUYER.com
www.AVBUYER.com
Freestream April.qxp 24/03/2022 11:23 Page 1
2007 Falcon 2000EX Easy Coming to inventory soon
2012 G550 Coming to inventory soon
2007 in Service 2010 BBJ S/N: 36090 Airframe Total Time: 2,451 hours Aircraft. Aircraft Total Cycles: 724
2020 Boeing BBJ MAX 8 S/N: 63431. Green Delivery FREESTREAM AIRCRAFT LIMITED
FREESTREAM AIRCRAFT (H.K.) LIMITED
London +44 207 584 3800 sales@freestream.com
Hong Kong +852 2724 5620 info@freestreamhongkong.com
Buying&Selling 1.qxp_Finance 23/03/2022 14:21 Page 1
BUYING & SELLING AIRCRAFT
Aircraft Buyer Questions (Part 3): Amenities Before closing in on the aircraft you’ll buy, what should buyers know about the amenities on board? René Armas Maes continues his series, helping buyers relate the aircraft’s amenities to trip and mission profile, and budget…
B
usiness Aviation’s leading Original Equipment Manufacturers (OEMs) put a high premium on quality, convenience, attention to detail, sustainability, and mobility aboard the aircraft they
build. The end-goal is to deliver amenities in the air matching what aircraft passengers would expect on the ground in their offices, cars, and homes. Moreover, optimizing the comfort, health and wellbeing of passengers is vital for business aircraft owners, operators, and OEMs alike. Typically, Large Jets provide the greatest number of amenities, and the highest level of luxury and comfort, 42 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
including fully equipped galleys, ample cabin space (divided into various zones, seating, and sleeping configurations), lavatories, and walk-in baggage areas. Mid-size and Super Mid-size Jets also offer comfortable stand-up cabins in which to relax, smaller galleys, lavatories, and walk-in baggage areas. Light Jets typically offer a small lavatory and a convenient beverage and snack station, plus less cabin volume. The cabins in the even smaller Very Light Jet category, though more confined, remain very comfortable for shorter flights, and are comparable to the highest quality interiors installed in today’s luxury automobiles. www.AVBUYER.com
Buying&Selling 1.qxp_Finance 22/03/2022 14:06 Page 2
AVBUYER.com 8X, can be divided into different areas, including zones facilitating work and meetings, and areas more suited to rest and relaxation. Cabin dividers can be positioned according to individual customer preference, enabling the expansion or shrinkage of each zone when being installed at the factory, or refurbished at an MRO center. Usually, passengers can choose from multiple cabin configurations when ordering their aircraft, and these may be changed, when acquired by a new owner, to offer greater modular and living space flexibility according to individual requirements. Of course, as we move down in cabin size, the scope for interior lay-out changes reduces – though it may still be possible to find a two-seat divan replacing a coffee-station in a Light Jet, optimizing seating capacity. Those considering buying an aircraft will need to have identified their own travel requirements, including the number of passengers, and the average trip lengths, to ensure the interior of a prospective aircraft will work for them. This will also help identify any possible modifications that need to be made to a prospective aircraft, and how much those will cost. The answers to such questions will flow from an effective Trip and Mission Analysis (see AvBuyer February issue, p38).
It is worth noting that amenities on older aircraft can be surprisingly on-trend in offering the best in comfort and productivity, thanks to the thriving retrofit market which enables the latest technologies and materials found in factory-new jets to be installed into the cabins of pre-owned airplanes. So, what are some of the important amenities aboard today’s business jets, and where should buyers look for them? We’ll explore over the following paragraphs…
Cockpit and Aircraft Performance
The level of automation built into today’s business jets, and retrofitted into some pre-owned models, allows one pilot to fly the jet while the other rests. The ultimate goal of automation in the cockpit is to reduce pilot workload, helping to enhance safety. Examples of this technology include touchscreen technology, Synthetic Vision Systems (SVS), Enhanced Vision Systems (EVS), and Head Up Displays (HUDs) serving as primary flight displays in low visibility operations.
Cabin Comfort & Convenience
Seating & cabin configuration: Although there are several standard seating configurations, these can vary, based on the existing aircraft owner’s needs. The cabins of Ultra-LongRange jets, such as the Gulfstream G650 or Dassault Falcon www.AVBUYER.com
Galley and Lavatory: Large Jets invariably offer full-service kitchens that can be stocked with fine foods and beverages. As mentioned, the smaller the cabin, the less room there will be for catering facilities. At the same time, as the cabin volume comes down, so do the range capabilities of the aircraft, so full catering becomes less important. While shopping for your prospective aircraft, you will need to have a good idea about what you want the catering facilities to achieve. For example, will you be hosting important clients and prospects aboard the aircraft? If so, even on shorter trips catering would be important for hospitality reasons. Similarly, while most Light Jets offer a lavatory, not all are entirely private, and some double up as an additional passenger seat. Your typical passenger profile, stage length, and trip type will all play a part in determining what lavatory arrangement your prospective aircraft must offer. Cabin Electronics: Many aircraft today offer state-of-the-art cabin management systems allowing passengers the ability to control their cabin environment (lighting, temperature, etc.) via their personal electronic devices. Meanwhile, sophisticated in-flight entertainment and in-flight connectivity systems (IFEC) can offer a good combination of capabilities to facilitate business and leisure activities. Wide-screen televisions, surround-sound, wireless technologies, and ambient lighting (LED mood lighting), as well as noise-isolating headphones, all optimize the passenger experience, or ensure the activities of one passenger doesn’t interfere with those of another. In addition to establishing which cabin electronics are essential to your mission (thereby helping identify which pre-owned candidates require less upgrading after you have purchased it) it’s essential to establish whether Wi-Fi is installed, and if so, which type.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
43
Buying&Selling 1.qxp_Finance 22/03/2022 14:08 Page 3
AVBUYER.com
BUYING & SELLING AIRCRAFT
Air-to-Ground (ATG) connectivity, for example, will be cheaper than satellite connectivity, but only works over continental North America. Older satellite connectivity systems, meanwhile, while providing connectivity internationally, are unlikely to provide data speeds considered acceptable by busy executives, or those seeking to stream movies (though a good entertainment system with built-in movie library could remedy the latter problem). If you plan to charter the aircraft out to generate revenue when you are not using it, fast, efficient Wi-Fi is a nonnegotiable, so additional investment will be needed if the aircraft’s existing system is outdated or non-existent. Cabin Environment: The cabin air pressure is an important consideration, especially on longer-range fights where passengers need to arrive at their destination in optimum condition (for an important business meeting, for example). The lower the cabin pressure at altitude, the lower the impact of jetlag. Business Aviation’s leading OEMs continue to work to bring cabin pressure at altitude to ever lower levels. As an example, the cabin pressure Dassault expects the Falcon 10X to offer is 3,000 feet while cruising at FL410. And, of course, in today’s Covid-impacted world, passenger safety is often at the top of the agenda, so an effective air filtration system that provides adequate protection against infection and viral transmission may well be important in your selection of a suitable aircraft.
Two Lists: ‘Must Have’ and ‘Don’t Want’
When considering an aircraft’s amenities, begin by ranking your must-have versus the nice-to-have items. Which do you value the most, and what would justify paying a premium for? Is a larger stand-up cabin worth the extra expenditure? How about a fully enclosed lavatory? Similarly, create a list of items that you do not want in your aircraft, such as specific seat textures, cabinetry colors, seat configurations reducing leg room, aft galley, or older lighting systems. Leave no area of the aircraft off either list – right down to the entrance door width. As the lists develop, allow for the fact that your budget may need to be revised. Once you finalize your must-have list, understand the incremental costs associated with those items. If you’re prepared to spend money customizing the cabin to your personal needs and tastes, however, remember that the extra investment may be difficult to recoup in the future if your needs and tastes are highly individualized. In fact, a highly customized cabin and amenities could diminish the airplane’s residual value, ultimately. Once you have identified the amenities that fit your trip and mission analysis, and your budget, you’ll need to create a timeline for purchasing an aircraft and obtaining financing. This will be discussed in the next installment of Pre-Purchase Questions for Buyers. Stay tuned… T
RENÉ ARMAS MAES is vice president, Commercial at Jet Link International LLC and an international consultant with a broad experience in business aircraft sales. He has developed multiple analyses 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.
MAKE MORE INFORMED BUYING & SELLING DECISIONS
https://www.linkedin.com/in/ren%C3%A9-armas-maes-4935b842/
with AvBUYER.com
44 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
C&L Aviation March.qxp_Layout 1 22/03/2022 12:08 Page 1
Buying&Selling 2.qxp_Finance 22/03/2022 14:52 Page 1
BUYING & SELLING AIRCRAFT KEN ELLIOTT has more than 50 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 systems, 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.
Selling a Plane? Important Avionics Considerations Ken Elliott highlights how sellers can best give potential buyers a comprehensive overview of their aircraft's avionics.
T
he successful sale of an aircraft is not always straightforward, even during times of high demand and low availability. That’s certainly true when it comes to the avionics. So what are the important avionics considerations for aircraft sellers? There are so many variables and other factors to consider, with each prospective buyer having unique requirements, based on where and how they intend to operate the aircraft. As a starting point to selling your aircraft, take time to list all the positives and negatives from the perspective of a typical buyer, paying special attention to its performance and its operating capability, based on equipage and condition. Aircraft manufacturers (OEMs) start with a baseline ‘green’ aircraft and will complete it with a standard package, followed by a custom package, tailored to each serial number as it is ordered by the buyer. Once delivered and in service, the OEM will supplement the existing equipage with minor updates, and – as new technology is developed and certified – major upgrades. An example of minor updates are 46 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
service bulletins, while examples of major upgrades are version updates to avionics suites which offer new capabilities and features. Owners and operators will also potentially add third-party upgrades that are either alternatives to, or not immediately available from the OEM. Once you include the unique nature of each cabin, cockpit, and exterior design that results from these, prospective aircraft buyers can expect each aircraft serial number to be different. An aircraft’s performance dictates its operational limits, and the standard equipage will match the operational capability of the aircraft. Optional equipage may, in turn, permit an optimum operational capability. Buyers are perceptive and most do their homework. They will cast equal attention to the cabin, cockpit (assume cockpit to include engines, APUs, airframe and avionics) and exterior of the aircraft. As the seller, it may help to imagine yourself as a buyer, who has never seen your aircraft previously, and enact the experience of walking up to the aircraft, ‘flying’ in each cabin seat, and then using the features www.AVBUYER.com
Buying&Selling 2.qxp_Finance 22/03/2022 14:53 Page 2
AVBUYER.com
of the cockpit. Document everything that may sew doubt, beg a question, or that may (or may not) impress. The initial experience for the buyer is so important. Never assume a negative will be overlooked. With two same-model aircraft side-by-side on the ramp, your aircraft must have more than one outstanding feature as a differentiator, and it is not always price. With today’s knowledgeable and insightful buyer, what was once a trusting review is today a full-blown, independent pre-buy process. For all the fasteners on the fuselage, there is probably an equal amount of paper or digital records for the aircraft that forms part of that pre-buy. The records are equal to the aircraft itself, and guess what… in the mind of the buyer, sloppy records imply sloppy maintenance or tracking of operation and, by default, a less attractive aircraft. Records must be complete from the first flight hour to the last. Anything suspicious amounts to “I smell a rat”, and it will take significant effort to persuade the buyer to assume differently. Maintenance tracking companies only provide part www.AVBUYER.com
of the recorded history and documentation of an aircraft and its systems. Working from a checklist of all record requirements will be helpful. The physical aircraft and its records hold equal weight in the sale potential of an aircraft. One error, or missing record, can be as significant to the sale as a missing life raft.
Avionics Sale Preparation
Considering all of the performance, operation, flight experience and records, there are specific aspects of avionics to consider… Firstly, each aircraft has a Master Minimum Equipment List (MMEL) that includes avionics. This list applies to the OEM model. A Minimum Equipment List (MEL) is an extension of the same requirement, specific to your aircraft. The list dictates the minimum equipment that must be onboard and operational to conduct a regular flight. However, you should consider the expectation of today’s typical buyer, noting anything you do not have that can justify improved performance. While the avionics must, of course, satisfy minimum
AVBUYER MAGAZINE Vol 26 Issue 4 2022
47
Buying&Selling 2.qxp_Finance 22/03/2022 14:53 Page 3
AVBUYER.com
BUYING & SELLING AIRCRAFT
“Avionics specifically dictate where and how you can operate.” aircraft performance, it’s preferable if you also have what the average buyer of your aircraft model expects. This may require some networking and research to determine. The most relevant aspect of avionics concerns operational performance. Avionics specifically dictate where and how you can operate. This applies to runways, airports, approaches, departures, routes, regions, countries, oceanic flying and remote flying. Although as the seller of an aircraft you cannot foresee everything that a buyer may need, there is a slogan from the avionics industry that rings true for you: “Best equipped, best served”. Besides the static wicks, radome, and antennas, avionics is not a consideration for the exterior of an aircraft. However, avionics is a major portion of both the cabin and the cockpit, with the seller needing to consider both, but for different reasons. With respect to the cockpit, the equipage may not be the current version, or it may not boast the optional
features available since original assembly. With an eye on pricing and valuation, the seller may want to update the avionics to bring the aircraft into line with others, or to differentiate it. Regarding the cabin, innovation moves rapidly, and it is difficult to keep abreast. Many buyers are looking for fast broadband internet, ways to intuitively operate their Personal Electronic Devices (PEDs) during flight, and easy connectivity within and without the aircraft. Again, balancing cost and valuation, a positive ROI can be expected from smart cabin electronic improvements. Ultimately, the seller should include both cockpit and cabin avionics when preparing the aircraft for sale. For newer aircraft ensure service bulletins and subscription services are currently applied. For legacy aircraft, assess the ability for it to fully operate in the airspace regions for which it was designed, even if you did not operate in all of them previously.
READ THE WHOLE ARTICLE ON AVBUYER.COM, INCLUDING: • Tips on reviewing the avionics records ahead of a sale • Desirable avionics upgrades and improvements • Understanding variations in required avionics
LINK TO THE FULL ONLINE ARTICLE VIA THIS QR CODE HOW TO SCAN A QR CODE: Most smart phones have a QR reader on their camera. If not, you can download one for free from the Play/App Store. Open the QR Code reader or camera app on your phone. Focus your device on the QR Code so it's clearly visible on the screen. Once scanned, follow link to web address, as prompted.
48 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
GE OnPoint October.qxp_Layout 1 23/09/2021 11:39 Page 1
We know your engine better because we designed it OnPoint engine maintenance program SM
GE’s OnPoint program provides the most comprehensive business jet engine coverage, including full risk transfer of your engine maintenance, support and diagnostics. Beginning on day one with 100% coverage,
geaviation.com/bga
OnPoint ensures your aircraft retains the highest level of performance and residual value. No matter where you are in the world GE can tailor a solution to best suit your operating needs.
Buying&Selling 3.qxp_Finance 22/03/2022 14:14 Page 1
BUYING & SELLING AIRCRAFT
AVBUYER.com
Selling Tips: Rules for Successful Jet Transactions Though the marketplace currently favors private jet sellers, aircraft transactions still require effort and organization from both parties. Aviation Director Andre Fodor shares some rules he applies to ensure success as a seller.
M
uch has been said of the Sellers’ Market existing in the pre-owned aircraft sales industry. With such a low level of inventory available, these are, without doubt, unprecedented times. Covid-19 has undoubtedly been a turning point in Business Aviation. The fear of infection and contamination, disruption to scheduled airline services, and the need to keep business functioning as normal have driven many first-time users into the sector. One financial advisor who used to preach a conservative approach to wealth and spending confided recently that his viewpoint and philosophy have changed. He now considers lifestyle to be a far more valuable asset, and, consequently, he views private aviation far more favorably. Late last year, fractional ownership and charter companies were operating approximately 30% 50 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
more flight hours than they were pre-Covid – and that was just for leisure travel. Today, I consider myself lucky when I find any charter flights available to provide the additional lift needed by my corporate operation. Meanwhile, OEM backlogs are stretching into the latter part of 2024. As I recently assisted a client through the process of spec’ing a new airplane we were advised to focus on signing the Letter of Intent (LOI), and warned by the OEM of the risk of losing the available position within a few hours - since another customer had an LOI and a check in-hand, ready to buy the same jet. The pressure on the buyer within today’s market, whether seeking charter, pre-owned, or new aircraft is immense. If your finances aren’t in place, and all your ducks aligned to sign the contract, undertake the inspection, and close quickly, you are likely to miss out on a buying opportunity. Consequently, pre-owned aircraft are
www.AVBUYER.com
\
BUSINESS AVIATION SIMPLIFIED.
YOU HAVE MORE ON YOUR MIND THAN AIRCRAFT FINANCING. ON THE OTHER HAND, THAT’S ALL WE THINK ABOUT.
Ultimately, business aviation is an exercise in simplicity. The fastest way to get from here to there. No complications. No delays. Simple. We understand that. Which is why we provide flexible business aviation financing solutions tailored to fit your unique needs—and get you into your aircraft quickly. Simple. 844.436.8200 \ info@globaljetcapital.com \ globaljetcapital.com LEASING & LENDING SOLUTIONS
HONG KONG \ NEW YORK \ ZURICH
Buying&Selling 3.qxp_Finance 22/03/2022 14:18 Page 2
BUYING & SELLING AIRCRAFT commanding premiums, and are at times even selling above their new prices. Sellers who purchased their aircraft when values were depreciating are making some hefty profits – but are then finding there are no suitable aircraft available to buy.
Rules to Optimize a Sale
Unless the aircraft is particularly old, and/or in need of a vast amount of expensive maintenance (which could render you the airplane’s final owner), many of today’s sellers will receive immediate inquiries, and their aircraft are likely sell faster than ever. But it remains necessary to prepare properly before entering the market. There are a couple of rules to follow that have helped me ensure my jet stands out from competing aircraft for sale, and that the transaction will proceed quickly, yielding optimum value. Those rules are as follows… Rule #1: Regardless of a buyer’s apparent eagerness to purchase your airplane, before marketing it be sure you have conducted a review of all your records. Everything should be well organized and clearly labelled. Are all the records easily auditable for the prospective buyer’s representatives? Do the electronic records reflect the paper records accurately? Paying careful attention to this prior to marketing the asset will ensure the process is smooth and quick, and that you will lose no time
52 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
AVBUYER.com and unnecessary money rectifying a problem with the paperwork later. Rule #2: In preparation for the sale, consider the pre-purchase inspection that will inevitably take place. Although some sellers try to insist buyers accept their aircraft on an ‘as-is’ basis in the current market environment, buyers with an experienced representative will simply pass on the aircraft and wait for another suitable jet to become available, possibly off-market. Have a mechanic conduct a preliminary prepurchase inspection, and identify the issues that are likely to come up in any actual inspection. It’s very likely there will be some minor issues found. Though you may have lived with them until now, a buyer paying a premium for your jet may be less willing to do so. The pre-purchase inspection may also render some unexpected findings. On one occasion when I was acting as a seller’s representative of a nearlynew aircraft with very low time, the pre-purchase inspection identified a bracket was installed incorrectly inside the engine’s cowling. Since no scheduled maintenance had required the cowlings to be removed prior to the inspection, the imperfection had remained undetected. Thankfully, as a manufacturing defect, the OEM eventually paid for the repair, but the point is this: Seek to reduce the chance of any major surprises during a transaction. A preliminary pre-purchase inspection is your opportunity to fix any faults while
www.AVBUYER.com
Buying&Selling 3.qxp_Finance 22/03/2022 14:40 Page 3
you are in full control, rather than paying higher MRO shop rates to address findings later when you are not. This is also your chance to deliver an even better aircraft to market that will ideally command a premium over similar offerings that are available for sale. Resolve cosmetic issues, touching up what is needed – make the aircraft as blemish-free as possible. There are plenty of ways of doing this on a budget, including having the leather conditioned, and airbrushing the imperfections to give the interior a fresh, new look. Polish the chrome and bright works, and identify any corrosion issues before putting the jet on the market, since it will all add to the appeal and value. Identifying 'squarks' before a pre-purchase inspection will save time and cost less, ultimately. It’s the quickest path to closing the transaction and getting funded for your next airplane purchase. Rule #3: The Letter of Intent and contract will identify the range of repairs that are acceptable to both parties. Personally, I always consider the option to renegotiate the final sale price if something is found that needs to be corrected, if we're not willing or able to remedy the defect. In such cases, I may negotiate that money be left in escrow for the repairs, or a discount is made on the final transaction sum. This is a good way for www.AVBUYER.com
sellers to keep the sale moving forward towards the expected outcome – money in the bank. Rule #4: Finally, the most important rule of all: Work with bona fide professionals. Make sure that the broker you work with has a long, demonstrable track-record of successful pre-owned aircraft sales. Seek references if necessary. Despite the fact that this current market favors aircraft sellers, you can be certain buyers will come to the negotiating table with excellent representation ready to fight hard for their best interests. For the nominal fee that you will pay for a broker to represent your interests, you’ll undoubtedly come away from a successful transaction very glad you did. Next time, we’ll look at some of the rules prospective pre-owned aircraft buyers should consider to help get a transaction over the line in today’s market. Stay tuned! T
ANDRE FODOR 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. https://www.linkedin.com/in/andrefodor/
AVBUYER MAGAZINE Vol 26 Issue 4 2022
53
Ownership 1.qxp_Finance 22/03/2022 10:45 Page 1
OWNERSHIP
Don Catalano: Business Growth Equals Flying Growth Moving from a piston single, then a turboprop, into a twin-engine HondaJet today, Fabrizio Poli asks Don Catalano how business growth and Covid have transformed the company aircraft from a ‘nice-to-have’ tool into a ‘must-have’ tool…
D
on Catalano joined the US Army out of High School and eventually found himself serving in the Special Forces HALO scuba team. This experience really shaped him, helping him realize how a small team can be more powerful and effective than a large team. After his experience in the military, Don began a career in Real Estate and took up flying as a hobby. Today he is President and CEO of his own Real Estate brokerage called iOptimize Realty (www.ioptimizerealty.com), with his flying playing a part in his professional success. Don’s company is a Commercial Real Estate (CRE) specialist representing tenants, not landlords. By analyzing property metrics, the company’s dedicated tenant representatives regularly achieve rents 30% below market using iOptimize’s proven and proprietary systems. They also work with a global network of commercial real estate advisors to find the best deals. In 2007, the iOptimize Realty team foresaw the economic tsunami and subsequent rollback of market rents. Don and his team showed their clients how much over-market their CRE portfolios had become, and offered an easy way to optimize them. Today, they
54 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
are doing this again in light of the Covid-19 pandemic. The company’s unique take on the CRE market accommodates client needs in secondary and tertiary markets that most other firms don’t want to work within.
Airplane Ownership: Upsizing with the Business
It was twenty-five years ago that Don bought his first airplane, a Mooney piston single, and started using it for business. Flying his Mooney to visit clients, he soon realized how the airplane was becoming a valuable business tool. Eventually, his work required trips further afield, and he upgraded to a Piper Meridian single-engine turboprop before purchasing the twin-engine Light Jet he flies today: A HondaJet Elite. Dan’s business focussing on commercial Real Estate during the Covid lockdowns necessitated a change in the way he did business. With his small team working from home, iOptimize Reality began showing clients property via video-conferencing technology. Virtual visits only worked to a certain extent, however, and Don upped his game by flying the HondaJet to pick up certain clients to fly them to see www.AVBUYER.com
Ownership 1.qxp_Finance 22/03/2022 10:46 Page 2
AVBUYER.com
In addition to enhancing business activities for iOptimize Realty, Don flies his jet for charity, volunteering as a part of the Patient Airlift Services flight team.
Real Estate in person. “Mindsets have changed,” he told AvBuyer. “Work from home is going to be okay for some jobs. A hybrid work model is going to be okay. But where there might have been reluctance from prospective customers and clients to take the corporate jet in the past (i.e., ‘is it ok to take the corporate jet, or should we take the airlines?’…), that reluctance is gone).” “Imagine the conversation between boss and employee,” he illustrates: “‘I really need you to go and look at that 50,000 sq. ft. office in Boca Raton, because we are moving out of New York’. “‘Sure, I’ll do that, boss, but my last flight was cancelled, and I don’t want to wear a mask for three hours – can I use this company that has its own private jet?” Don is seeing an increase in the usage of his jet to the point where, if the trend continues, his company will eventually acquire a second plane. He explains that iOptimize has always had the company aircraft built into its business strategy, as a tool, for twenty years. Now the company is ramping up its usage, the business is growing exponentially. “The demand and the utility has changed from the www.AVBUYER.com
plane being a ‘nice to have’ item, to becoming a necessity,” he shares. Though Don doesn’t charge his clients for using the jet, nor increase his fees in any way, he’s clear that the deal does need to have enough substance in it to justify deploying the HondaJet. It costs Don’s company just over $3,000 per hour to operate the aircraft, so a trip may cost iOptimize $20,000, which Don considers an investment into the deal that he’s happy to cover.
Combining Business With Piloting
So how does Don combine being both the CEO and the pilot of the HondaJet? Clients are always impressed that Don is not only a smart business man but also flies the company jet. Realizing that flying is a life and death activity, he says if you’re going to do the flying – especially carrying clients and employees – you need to be trained at a professional level to be safe. He goes over and above in this regard, visiting Flight Safety twice a year for recurrent training, and soon will be adding Upset and Recovery Prevention Training (URPT) as part of his annual training routine.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
55
Ownership 1.qxp_Finance 22/03/2022 10:48 Page 3
OWNERSHIP
AVBUYER.com
“Homeworking will only get you so far, before a face-to-face meeting becomes necessary. That’s when owning your own jet becomes key.” “Private jet usage is now becoming very acceptable, as it should be, it is a tool, a magic carpet,” Don says. “It allows point-to-point travel, which is something that is becoming more difficult now with [the airlines], where you often need to fly via Point B to get from A to C. “The private jet takes you from A to C [direct, saving] time and hassle, and is a lot more comfortable.”
Charitable Flying
He had already flown 4,000hrs before attempting to obtain a Type Rating in the HondaJet, having spent eighteen years flying the Piper Meridian in IFR. According to Don, Covid has caused a paradigm shift in the workplace, and companies have realized that working from home can be very cost-effective. Consequently, the need for large corporate offices in the center of London or New York are becoming less necessary. Homeworking will only get you so far, though, before a face-to-face meeting becomes necessary. That’s when owning your own jet becomes key.
Don also flies his jet for charity. When thirteen-year-old Owen Sherman needed a lift to get to Shriners Children’s Hospital in Springfield, Massachusetts, to receive his two new prosthetic legs, Don helped out, volunteering to fly his HondaJet Elite. He took off from Republic Airport, flew to Bangor, Maine to pick up the Shermans, and flew them to Springfield where Owen underwent surgery. Then he flew them back to Bangor before flying home to Long Island. Don volunteers as part of the Patient Airlift Services (PALS) charity flight team, donating his time and cost of the flights. A veteran charity flyer, he’s piloted more than two dozen charity flights in the last few years. All-in-all, some great perspectives from Don, from how to use a private jet as a business tool and also how to go about it, if you choose to also be the pilot. For more information, watch Fabrizio Poli interview Don on Biz Jet TV: https://www.youtube.com/watch?v=5-lOnrGLqqw More information from www.orvilleaviation.com T
FABRIZIO POLI is Senior Consultant at Orville Aviation. He is also an Airline Transport Pilot. Mr. Poli has over 35 years experience in the aerospace sector, both as an aviator and in business. Fabrizio is also founder of popular YouTube channel, Biz Jet TV. Visit Biz Jet TV at www.youtube.com/channel/UCavizueJievdH4TwxiSlX3g
56 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
MAKE MORE INFORMED AIRCRAFT OWNERSHIP DECISIONS with AvBUYER.com
www.AVBUYER.com
The Private Jet Company March.qxp_Layout 1 23/03/2022 09:59 Page 1
2011 Hawker 4000 S/N RC-52
1,880 Hours, Engines enrolled on ESP Gold, APU enrolled on MSP, ATG-5000 WiFi, Turnkey Opportunity, Make Offer
Ownership 2.qxp_Finance 22/03/2022 11:00 Page 1
OWNERSHIP
AVBUYER.com
How to Better Control and Manage Your Operating Costs David Wyndham provides an outline of the basis for flight departments to track and budget costs, minimizing the risks of nasty surprises…
here is an old aphorism about aviation: When the pile of money is equal to the size of the aircraft, then you have enough money to fly. Certainly, in the world of Business Aviation, costs must be justified internally, and to the board of directors. If the aircraft is managed, the management company has a fiduciary responsibility as well as a contractual obligation to spend the owner’s money wisely. Where an aircraft is not managed externally, there is a need for you to control and manage your aircraft operating costs. For this, you need to be the master of two interrelated areas: • Tracking your costs; and • Budgeting your costs.
T
Tracking Your Costs
A company’s executive leadership, Board and CFO tend to focus on asset management, and their review may only consider a few major categories. One former client used three cost categories for its flight department: Facilities, Travel, and Personnel. While sufficient for reporting at executive level, such trifurcation is far too broad for management of Business Aviation costs. Except for overhauls and refurbishments, most of the operating costs are incurred in small enough increments that managers don’t realize their total magnitude, unless the company has a specific way to measure them. Thus, the aviation management team needs much more detail to effectively manage its costs. (Remember, you can’t manage what you can’t measure.) The basic minimum 58 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
requirement is to collect and organize the costs in a way that is useful to the Aviation Manager and Maintenance Manager. The measurement system should be flexible enough to allow differentiation in costs between aircraft tail numbers and, if needed, operating locations. Ideally, your maintenance tracking software should include cost tracking. If not, hopefully the comptroller’s office can set up something specific for the Flight Department. The Aviation Department should be run like a business unit with tracking, accountability, and responsibility for the costs. There needs to be enough detail so that you can see changes and explain deviations from your budget with ease. Too many categories can result in a work overload, so whatever you choose, make sure it’s useful in managing the operation. Detailed costs at the Flight Department level must roll up into the reporting categories needed by the CFO. For example, categories such as hangar rent, insurance, utilities, communications, and cleaning services will all role up into the “Facilities” high-level report.
Budgeting Your Costs
The first step in budgeting, namely to agree on the assumptions, will, if done well, make the rest of the process a simple exercise. The mission of the flight department should align with the goals and objectives of the company. That mission defines assumptions for its success, for example: • How much flying are you expected to do in the coming year? www.AVBUYER.com
Ownership 2.qxp_Finance 23/03/2022 09:56 Page 2
MODERNIZING YOUR AIRCRAFT WITH THE LATEST DESIGNS AND LUXURY TRENDS CABINETRY & HARD SURFACES
Wood veneer Stone countertops Tile or wood flooring Metal Plating Complete Paint Jobs Cabin Modifications
UPHOLSTERY & SOFT GOODS
Leather seating Fabric divans Deco panels Headliner Carpeting
TECHNOLOGICAL ENHANCEMENTS
FUTURE PROOFING YOUR JET
State of the Art Audio & Video Avionics Upgrades: Cabin Management Systems (CMS) Next Generation Compliance LED Lighting ADS-B, FANS-1/A Wi-Fi Integration Flight Management System The Latest Compliance
Your Aircraft Reimagined As you embark on your transformation journey, we help guide you through the selection process; pulling from our vast catalog of brand-name luxury materials; our expertise will indisputably help increase the value of your jet. So no matter what we do for you, from the smallest aesthetic improvement or a complete turn-key solution, VIP Completions is unmatched in value and scope when it comes to our range of services. Find out exactly what we can do for you by getting in touch today.
+1 (954) 772-1364 • sales@vipcompletions.net • www.vipcompletions.net
• Where? • Do you have enough staff, or will you need to hire more people? Once you agree with the executive leadership what the mission requirements and expectations are, then the budget flows from what it costs for the resources needed to accomplish the mission. Think of their budget from three levels: tactical, operational, and strategic. Tactical: This is the lowest level of budgeting. For example, it pertains to what the head of maintenance needs to manage the department’s parts inventory or prepare for the next inspection. Or the scheduler may use this level of budgeting to manage catering costs. Essentially, these costs provide the background for building the department’s operational budget. Operational: The level of budgeting provides the aviation manager with the best tool for overseeing day-to-day fiscal issues. It covers the main areas of functional responsibility. For an aviation operation, maintenance is one of the largest expenses, and one in which the aviation organization can have the most control. Fuel and training are two more categories. In order to effectively manage those expenses, the aviation manager needs to measure and track them during the year. www.AVBUYER.com
Strategic: The CFO strategically examines the Flight Department budget to see how well that business unit is aligned with the company’s goals and objectives. The final product is one document — the flight department budget.
Budgets are Adaptable
The budget is usually prepared annually and should be monitored monthly. When assumptions change, so must the budget. If jet fuel goes up 20%, your annual fuel budget must change, or the assumption for how much flying is needed must be adjusted. Variances between budgeted and actual expenses are noted and addressed as needed. Aviation and maintenance managers need to understand how costs behave, and how to use the company’s cost tools to manage their use of funds. For aviation-specific cost management, I recommend looking at courses offered by NBAA’s Certified Aviation Manager program. Collect costs appropriately, understand the assumptions, and prepare your budget accordingly. T
DAVID WYNDHAM is the Founder of David Wyndham + Associates, LLC. 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. He is also Vice President, Asset Insight Consulting Services. https://www.linkedin.com/in/davidwyndham/
AVBUYER MAGAZINE Vol 26 Issue 4 2022
59
Turboprop September.qxp_Layout 1 22/12/2021 13:46 Page 2
Values Intro.qxp_Finance 22/03/2022 11:15 Page 1
VALUES - TURBOPROPS
AVBUYER.com
Business Aircraft Values: Turboprops The top-selling turboprops tend to be aircraft that are continually popular among owners needing fuel-efficient, multi-mission types, as AvBuyer explores below…
W
hile exceptions exist, turboprop airplanes offer a common set of attributes that make them an attractive proposition. The powerplants are responsible for most of this – turboprop engines benefit today from propeller designs that are far more sophisticated than just a decade ago, resulting in lower maintenance costs; longer overhaul cycles; improved climb and cruise performance; and - in turn - reduced noise levels in the cabin. In addition, specific fuel consumption numbers continue to improve – an attractive attribute given today’s depressed oil prices, with the practical effect of allowing the use of higher power-levels without suffering a proportionate increase in fuel consumption/costs. That, in turn, contributes to improvements in take-off and climb performance and cruise speed. Another advantage offered by many turboprops is the single-pilot operational simplicity, engineered into even the multi-engine turboprops. The only exceptions to the sum total of these benefits exist among the unpressurized models that are available www.AVBUYER.com
and form a small, important and dynamic segment of the turboprop market. Today’s turboprops offer a broad range of turbine performance, propeller cost-effectiveness (some with at - or near to - Light Jet cruise performance capabilities) with cabin and cockpit accoutrements that rival the best of the fanjet strata. And on trips of up to 300 nautical miles, the difference in travel time between a jet and a turboprop is negligible.
Turboprop Price Guide
The following Turboprop Retail Price Guide represents current average values published in The Aircraft Bluebook–Price Digest. The study spans model years from 2003 through Spring 2022 (20 year period). Values reported are in US$ millions, with each reporting point representing the current average retail value published in the Bluebook by its corresponding calendar year. For example, the Piaggio Avanti P180 reported in the Spring 2022 edition of the Bluebook shows US$4.5m for a 2015 model, US$4.0m for a 2014 model, and so forth. Aircraft are listed alphabetically.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
61
Retail Values 2.qxp_RPG 23/03/2022 09:37 Page 1
VALUES - TURBOPROPS
Turboprops: Average Retail Price Guide MODEL YEAR $
2022 US$M
2021 US$M
2020 US$M
8.81
8.1
7.5
2019 US$M
2018 US$M
2017 US$M
2016 US$M
2015 US$M
2014 US$M
6.5
5.5
5.0
4.8
4.5
4.2
3.9
3.8
5.25
4.75
4.25
3.85
3.65
3.45
3.35
3.25
3.5
3.2
2.9
2.8
2.7
2.5
2.4
2.3
1.825
1.775
1.75
1.725
1.7
1.675
1.65
2.05
1.85
1.8
1.85
1.75
1.7
1.65
2013 US$M
MODEL BEECHCRAFT KING AIR 360 BEECHCRAFT KING AIR 350i BEECHCRAFT KING AIR 350 BEECHCRAFT KING AIR 260
7.405
BEECHCRAFT KING AIR 250
6.9 5.55
BEECHCRAFT KING AIR B200GT BEECHCRAFT KING AIR B200 BEECHCRAFT KING AIR C90GTx BEECHCRAFT KING AIR C90GTi BEECHCRAFT KING AIR C90GT BEECHCRAFT KING AIR C90 CESSNA 208 CARAVAN G1000/NXi
2.205
2.0
1.85
2.485
2.3
2.1
CESSNA 208 CARAVAN CESSNA 208B GRAND CARAVAN EX CESSNA 208 GRAND CARAVAN EX CESSNA 208 GRAND CARAVAN
1.875
CESSNA 208B GRAND CARAVAN CESSNA 208B SCM EX
2.15
2.1
2.0
1.9
1.8
1.75
1.65
1.55
1.45
1.35
3.2
2.9
2.6
CESSNA 208B SUPER CARGOMASTER DAHER KODIAK 100 (III)
2.781
2.5
DAHER (QUEST) KODIAK 100 (II)
2.1
1.95
1.85
DAHER (QUEST) KODIAK 100 DAHER TBM 940
4.663
4.5
4.0
3.8
DAHER TBM 930
3.7
3.6
3.5
DAHER TBM 910
3.5
3.4
3.3
DAHER TBM 900
3.0
DAHER (SOCATA) TBM 850
2.4
DAHER (SOCATA) TBM 700C2/EFIS PIAGGIO AVANTI P.180 PILATUS PC-12 NGX
5.716
5.25
PILATUS PC-12/47E NG
5.5
5.0
4.5
4.0
3.5
4.1
4.0
3.9
3.8
3.7
1.4
1.3
1.2
5.0 4.7
4.4
4.2
PILATUS PC-12/47 PILATUS PC-12/45 PIPER M600/M600 SLS PIPER M500
TBA
3.3
2.6
2.5
2.3
2.2
2.1
TBA
2.1
1.9
1.85
1.75
1.65
1.55
PIPER MERIDIAN PA-46-500TP AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
62 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
Retail Values 2.qxp_RPG 22/03/2022 11:20 Page 2
AVBUYER.com
What your money buys today
Spring 2022 2012 US$M
2011 US$M
2010 US$M
2009 US$M
2008 US$M
2007 US$M
2006 US$M
2005 US$M
2004 US$M
2003 US$M
MODEL YEAR $ MODEL BEECHCRAFT KING AIR 360
3.7
3.6
BEECHCRAFT KING AIR 350i
3.5 3.0
2.9
2.8
2.7
2.6
2.5
2.2
BEECHCRAFT KING AIR 350 BEECHCRAFT KING AIR 260
3.15
3.05
3.1
3.0
BEECHCRAFT KING AIR 250 2.9
2.8
BEECHCRAFT KING AIR B200GT
2.7 2.65
2.25
2.2
2.6
2.55
BEECHCRAFT KING AIR C90GTi
2.0
BEECHCRAFT KING AIR C90GT
1.85 1.5
1.5
BEECHCRAFT KING AIR B200 BEECHCRAFT KING AIR C90GTx
1.9
1.55
2.45
2.15 2.05
1.6
2.5
1.45
1.45
1.4
CESSNA 208 CARAVAN G1000/NXi
1.35 1.275
BEECHCRAFT KING AIR C90
1.25
1.125
1.075
1.05
1.0
CESSNA 208 CARAVAN CESSNA 208B GRAND CARAVAN EX CESSNA 208 GRAND CARAVAN EX
1.375 1.75
1.65
1.575
1.525
1.325
1.25
1.125
1.075
1.05
CESSNA 208 GRAND CARAVAN CESSNA 208B GRAND CARAVAN
1.4
CESSNA 208B SCM EX 1.7
1.6
1.55
1.5
CESSNA 208B SUPER CARGOMASTER
1.45
DAHER KODIAK 100 (III) DAHER (QUEST) KODIAK 100 (II) 1.25
1.15
1.05
1.0
0.95
DAHER (QUEST) KODIAK 100
0.9
DAHER TBM 940 DAHER TBM 930 DAHER TBM 910 DAHER TBM 900 2.3
3.0
2.2
2.7
2.1
2.5
2.0
2.1
1.9
1.8
1.7
1.6
DAHER (SOCATA) TBM 850
1.6 1.45
1.4
1.35
1.3
DAHER (SOCATA) TBM 700C2/EFIS
1.5
1.45
1.4
1.35
PIAGGIO AVANTI P.180 PILATUS PC-12 NGX
3.6
3.5
3.4
3.3
PILATUS PC-12/47E NG
3.2 2.95
2.85
PILATUS PC-12/47
2.75 2.65
2.55
2.45
PILATUS PC-12/45 PIPER M600/M600 SLS PIPER M500
1.175
1.125
1.075
1.05
0.95
0.85
0.8
0.75
0.7
0.65
PIPER MERIDIAN PA-46-500TP
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
www.AVBUYER.com
AVBUYER MAGAZINE Vol 26 Issue 4 2022
63
Assent Aeronautics April.qxp_Layout 1 23/03/2022 10:06 Page 1
P065.qxp 24/03/2022 11:59 Page 1
+1.636.751.3987
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
AVBUYER MAGAZINE R Vol 26 Issue 4 2022 R
65
AirCompAnalysis.qxp_ACAn 23/03/2022 12:20 Page 1
JET COMPARISON CESSNA CITATION MUSTANG
EMBRAER PHENOM 100
Jet Comparison: Cessna Citation Mustang vs Embraer Phenom 100 How do the Cessna Citation Mustang and the Embraer Phenom 100 compare side-by-side? What are the advantages offered by each model? Mike Chase analyses the performance and productivity parameters…
O
ver the following paragraphs we’ll consider key productivity parameters for the Cessna Citation Mustang and the Embraer Phenom 100 (including payload, range, speed, and cabin size) to establish which aircraft provides the better value in the Very Light Jet market. With pre-owned business jet inventory in very limited supply at the time of writing, we found that there has been a doubling of the number of used Embraer Phenom 100 transactions, from an average of three per month in 2020 to six in 2021. The Citation Mustang has not recorded a similar change, with monthly transactions rising from six in 2020, to seven in 2021. We decided to explore further, comparing these jets side-byside to see if we could find an obvious reason for this.
Cessna Citation Mustang
The Cessna Citation Mustang was first announced in 2002, and was developed for entry level jet customers offering single-pilot capability. The first flight occurred in April 2005, and FAA Type Certification was received on September 8, 2006. Powered by two Pratt & Whitney PW615F turbofan engines, the Mustang’s cockpit incorporates the all-glass Garmin G1000 avionics system. The jet proved to be a hit with the market, and Cessna produced 479 units before bringing production to an end in 2017. At the time of writing, there were 455 wholly-owned Citation Mustang business jets in operation around the world, with a further 16 in shared ownership, and one in fractional ownership, per JETNET data. Ninety-eight aircraft remained with their
66 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
original owner at the time of writing, and 374 have been sold on the used market. Seven Mustangs had been retired to date. North America had the largest Mustang fleet percentage (62%), followed by Europe (22%) and South America (7%), for a combined total of 91% of the worldwide fleet. Just 2.9% of the fleet was available for sale as of this writing, with 61.5% under an exclusive broker agreement, and the average days on market just over 60 days, according to JETNET.
Embraer Phenom 100
The Phenom 100 was approved by the Embraer board in 2005, and reached the market in 2008, being produced until 2016. From 2013, Embraer began offering the enhanced Phenom 100E, and a further upgrade sees the Phenom 100EV delivered new to customers today. Like the Citation Mustang, the Phenom 100 is certified for single pilot operations, and it derives its power from a pair of Pratt & Whitney PW617-F-E engines. The cockpit incorporates Embraer’s Prodigy Flight Deck, utilizing the Garmin G1000 avionics suite. Having produced 308 units over the production run, as of this writing, 263 Phenom 100s are wholly-owned, according to JETNET, with 10 units in fractional and 20 in shared ownership for a total of 293 jets in operation worldwide. Thirteen have been retired and two are at the manufacturer. The majority of the fleet is based in North America, where there were 153 (58%) units as of this writing. Just 2.4% of the fleet was available for sale, with 71.4% under an exclusive broker agreement. The average days on the market stood at 45 days.
www.AVBUYER.com
AirCompAnalysis.qxp_ACAn 23/03/2022 11:14 Page 2
www.AVBUYER.com
CESSNA
EMBRAER
Citation Mustang
Phenom 100
vs.
(Produced 2006 to 2017)
(Produced 2008 to 2016)
HOW MANY
5
$2.4 Million (2013 Model)
EXECUTIVE
5
SEATS
$2.5 Million (2013 Model)
WHICH OF THESE VERY LIGHT JETS WILL COME OUT ON TOP? HOW FAR
Citation Mustang
970nm
Citation Mustang
Phenom 100
1,044nm
Phenom 100
HOW MANY OPERATION?
LONG RANGE
CAN WE TAKE?
4 Pax, Available Fuel
UNITS IN
WHAT’S THE
HOW MUCH
PAYLOAD
CAN WE GO?
(Lbs) 1,160 1,312
HOW MANY
USED JETS SOLD
293 455
EACH MONTH?
7 (2.9%)
CRUISING SPEED?
(Knots) 319
Citation Mustang Phenom 100
333
WHAT’S THE
COST
PER HOUR?
5 (2.3%) Citation Mustang Phenom 100
$692 $822
12-Month Average Figure Sources used: JETNET, B&CA, Aircraft Bluebook, and Chase & Associates.
www.AVBUYER.com
(% = Global Fleet For Sale)
AVBUYER MAGAZINE Vol 26 Issue 4 2022
67
Project1_Layout 1 29/03/2022 11:00 Page 1
JET COMPARISON
AVBUYER.com
Table A - Payload Comparison
Payload Comparison
Citation Mustang Embraer Phenom 100
8,645
10,475
2,580
2,804
87
Max Fuel (lb)
MTOW (lb)
106
Fuel Usage (GPH)
1,160
1,312
Max Payload (lb)
560
580
Avail Payload w/Max Fuel (lb)
Source: OEMs, B&CA
Chart A - Cabin Comparison Cessna Citation Mustang
Embraer Phenom 100
1,159
1,194
Max Fuel w/Available Payload IFR Range (nm)
When comparing business jets, an important area for potential operators to focus on is payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A (left) shows the Embraer Phenom 100’s ‘Available Payload with Maximum Fuel’ to be 580lbs, which is marginally more than the 560lbs offered by the Citation Mustang.
Cabin Comparison
As shown in Chart A (left), the cabin height, and width offered by the Phenom 100 are greater than the Citation Mustang, as is the length. These result in more overall cabin volume (212cu.ft versus 163cu.ft) in favor of the Phenom 100, accounting for the main seating area, but excluding the lavatory. Configured with executive seating, each aircraft provides room for five seats with one crew. The Phenom 100 also provides greater internal and external luggage volume (10cu.ft and 60cu.ft, respectively) than the Citation Mustang (6cu.ft and 57cu.ft., respectively).
Range Comparison
Using Wichita, Kansas, as the start point, Chart B (bottom, left) shows the Phenom 100 has a range of 1,044nm with four passengers and available fuel, which is 74nm greater than the Citation Mustang at 970nm. Note: For business jets, ‘four Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a alternate. This range does not include winds aloft or any other weather-related obstacles.
Source: UPCAST JETBOOK
Powerplant Details
Chart B - Range Comparison Citation Mustang Phenom 100
970 (nm) 1,044 (nm)
w/4 PAX w/4 PAX
As mentioned above, the Cessna Citation Mustang has two Pratt & Whitney engines producing 1,460lbst each. These burn 87 gallons per hour of fuel. By comparison, the Embraer Phenom 100 has two Pratt & Whitney PW617F-E engines, providing 1,730lbst each, and burning 106 gallons per hour of fuel.
COMPARE, CONTRAST, DECIDE with Source: Chase & Associates
68 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
AvBUYER.com www.AVBUYER.com
GLOBAL 6500 s n 6 0038
GULFSTREAM IV
sn
CHALLENGER 300
CITATION EXCEL
1 1 48
sn
sn
20306
29 5 27 9
GULFSTREAM G650ER
sn
6 117
CHALLENGER 350
sn
2 05 15
CHALLENGER 300
sn
2 008 6
LEARJET 60
sn
293
INFO@AVPROJETS.COM WWW.AVPROJETS.COM l Annapolis, MD 21401 l (410) 573-1515
900 Bestgate Road, Suite 412
AirCompAnalysis.qxp_ACAn 23/03/2022 11:17 Page 4
JET COMPARISON
AVBUYER.com
Cost per Mile Comparison
Chart C (left) details the ‘Cost per Mile’ of each jet, factoring direct costs and with each flying a 600nm mission with 800lbs (four passengers) payload. As shown, the Phenom 100 has a lower cost per mile at $2.76 per nautical mile, which is 12.4% less than the Citation Mustang ($3.15).
Chart C – Cost Per Mile Comparison Citation Mustang
$3.15
Phenom 100
Variable Cost Comparison
$2.76 $1.00
$0
$2.00
The ‘Variable Cost’, illustrated in Chart D (middle, left), is defined as the estimated cost of fuel, Maintenance labor, scheduled parts, and miscellaneous trip expenses (e.g., hangar, crew and catering). The Citation Mustang ($692/hr) has a lower variable cost than the Phenom 100 ($822/hr) – a difference of $130 (15.8%) in favor of the Citation Mustang. These costs DO NOT represent a direct source into every flight department and their trip support expenses. For comparative purposes, the costs presented are the relative differences, not the actual differences since these may vary from one flight department to another.
$3.00
US $ per nautical mile * Based on a 600nm mission Source: JETNET
Chart D – Variable Cost Comparison
Market Comparison Table Citation Mustang
Table B (below, left) contains the 2013 used prices (per Aircraft Bluebook, Spring 2022) for the Citation Mustang and the Phenom 100. These are $2.4m and $2.5m, respectively. Also listed are the long-range cruise speed and range numbers (per B&CA), while the number of aircraft in-operation, the percentage for sale, and average sold per month are from JETNET. There were 11 (2.9%) of the 455 Citation Mustangs ‘for sale’, and just five (2.3%) of 293 Phenom 100 ‘for sale’ at the time of writing. The average monthly used transactions over the previous 12 months were seven for the Citation Mustang and five for the Phenom 100 (down from six at the end of 2021).
$692
Phenom 100
$822 $400
$0
$600
$800
$1000
US $ per hour Source: JETNET
Table B - Market Comparison
Maximum Scheduled Maintenance Equity
Citation Mustang Phenom 100
319
333
Long Range Cruise Speed (Kts)
163
212
Cabin Volume Cu Ft
970
1,044
4 Pax w/Avail Fuel IFR Range (nm)
*Average Full Sale Transactions in the past 12 months as of Feb. 2022; Source: JETNET Data courtesy of B&CA, Aircraft Bluebook, JETNET
$2.4 $2.5 Used 2013 Price $US Mil.
455
293
In Operation
2.9% 2.3% % For Sale
0%
72
5
Used Average Sold per Month*
Chart E and Chart F (overleaf) display the Citation Mustang and Phenom 100 respectively. They depict (and project) the Maximum Maintenance Equity each jet has available based on its age. The Maximum Maintenance Equity figure was achieved the day an aircraft came off the production line (since it had not accumulated any utilization toward any maintenance events). The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes: • Average annual utilization of 230 flight hours (in the case of the Mustang), and 325 flight hours (in the case of the Phenom 100); and • All maintenance is completed when due.
70 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
Action Aviation April.qxp_Layout 1 24/03/2022 11:24 Page 1
OFF MARKET 2020 Bombardier Global 7500
Very low hours off market FAA-registered 2020 Global 7500 • Heads-Up Display (HUD) Specifications available to qualified end-buyers and mandated brokers for immediate delivery.
• Lightning Detection System (LDS) • Predictive Windshear (PWS) • Global Regulatory Package (GRP)
• Excellent Condition 2020 Global 7500 Aircraft
• Lufthansa Technik Nice® Touch Cabin
• Cabin Configured for 16 Passengers in 4 Zones with
• Management System
• Forward Crew Rest
• (3) Personal Tablet Plug-in Arm Stands
• Engines Enrolled on GE OnPoint
• External Camera System
• APU Enrolled on Safran PowerCare
• Datalink Graphical Weather System (Worldwide)
• Inmarsat’s Ka-band High Speed Internet with WiFi
• Aircraft Under Manufacturer Warranties
• Synthetic Vision System (SVS)
• FAA Part 135 Compliant
WANTED AIRCRAFT • Lear 45 2005 or newer, with FDR/CVR preferred • Global 6500, All Options Considered
• Challenger 300, All Options Considered • Falcon 2000 2006 or newer • Phenom 300, All Options Considered
• Gulfstream G550, All Options Considered • Gulfstream G650, All Options Considered
jetsales@actionaviation.com • Hamish Harding +1 760 884 4535
AirCompAnalysis.qxp_ACAn 24/03/2022 15:23 Page 5
JET COMPARISON
Chart E – Maximum Scheduled Maintenance Equity (Citation Mustang) Cessna Citation Mustang Assumed Annual Utilization: 230 Flight Hours Average Maximum Maintenance Equity: $1,397,264 Pct of Avg Max Mtnc Equity vs. Aircraft Age 100% 90%
Pct of Max Mtnc Equity
80% 70% 60% 50% 40% 30% 20% 10% 0%
1
2
4
3
5
6
7
8
9
10
11
12
13
14
15
Aircraft Age (Years) Source: Asset Insight (www.assetinsight.com)
Chart F – Maximum Scheduled Maintenance Equity (Phenom 100) Embraer Phenom 100 Assumed Annual Utilization: 325 Flight Hours Average Maximum Maintenance Equity: $1,430,489 Pct of Avg Max Mtnc Equity vs. Aircraft Age 100%
Pct of Max Mtnc Equity
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
6
7
9
8
10
11
12
13
14
15
16
17
18
19
20
Aircraft Age (Years) Source: Asset Insight (www.assetinsight.com)
Table C - Citation Mustang Sample MACRS Depreciation Schedule 2013 Cessna Citation Mustang - Private (Part 91) Full Retail Price - Million $2.400m 1
2
3
4
5
6
Rate (%)
20.0%
32.0%
19.2%
11.5%
11.5%
5.8%
Depreciation ($M)
$0.480
$0.768
$0.461
$0.276
$0.276
$0.138
Depreciation Value ($M)
$1.920
$1.152
$0.691
$0.415
$0.138
$0.000
Cum. Depreciation ($M)
$0.480
$1.248
$1.709
$1.985
$2.262
$2.400
Year
2013 Cessna Citation Mustang - Charter (Part 135) Full Retail Price - Million $2.400m 1
2
3
4
5
6
7
8
Rate (%)
14.3%
24.5%
17.5%
12.5%
8.9%
8.9%
8.9%
4.5%
Depreciation ($M)
$0.343
$0.588
$0.420
$0.300
$0.214
$0.214
$0.214
$0.107
Depreciation Value ($M)
$2.057
$1.469
$1.050
$0.750
$0.535
$0.321
$0.107
$0.000
Cum. Depreciation ($M)
$0.343
$0.931
$1.350
$1.650
$1.865
$2.079
$2.293
$2.400
Year
Source: Aircraft Bluebook
72 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Depreciation Schedule
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 use accelerated 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), 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 twelveyear 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 seven-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 any given year. The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased and placed in service before January 1, 2023. This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022 the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. Table C (left) depicts an example of using the MACRS schedule for a 2013 model Citation Mustang in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. Table D (top, right) depicts an example of using the MACRS schedule for a 2013 Phenom 100 in private (Part 91) and charter (Part 135) operations over five- and seven-year periods.
Asking Prices & Quantity
As a snapshot, there were 11 Citation Mustang business jets available for sale on the www.AVBUYER.com
AirCompAnalysis.qxp_ACAn 23/03/2022 11:18 Page 6
AVBUYER.com
Productivity Comparison
The points in Chart G are centered on the same aircraft. Pricing used in the horizontal axis is as published in Aircraft Bluebook. The productivity index requires further discussion since factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. Four Passenger Range (nm) with available fuel 2. The long-range cruise speed flown to achieve that range 3. 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. The Embraer Phenom 100 offers greater speed and slightly longer range than the Cessna Citation Mustang. Moreover, its ‘Available Payload with Maximum Fuel’ and cabin volume is greater than the
2013 Phenom 100 - Private (Part 91) Full Retail Price - Million $2.500 Year
1
2
3
4
5
6
Rate (%)
20.0%
32.0%
19.2%
11.5%
11.5%
5.8%
Depreciation ($M)
$0.500
$0.800
$0.480
$0.288
$0.288
$0.144
Depreciation Value ($M)
$2.000
$1.200
$0.720
$0.432
$0.144
$0.000
Cum. Depreciation ($M)
$0.500
$1.300
$1.780
$2.068
$2.356
$2.500
2013 Phenom 100 - Charter (Part 135) Full Retail Price - Million $2.500 1
2
3
4
5
6
7
8
Rate (%)
14.3%
24.5%
17.5%
12.5%
8.9%
8.9%
8.9%
4.5%
Depreciation ($M)
$0.357
$0.612
$0.437
$0.312
$0.223
$0.223
$0.223
$0.112
Depreciation Value ($M)
$2.143
$1.531
$1.093
$0.781
$0.558
$0.335
$0.112
$0.000
Cum. Depreciation ($M)
$0.357
$0.970
$1.407
$1.719
$1.942
$2.165
$2.389
$2.500
Year
Source: Aircraft Bluebook
Chart G - Productivity Comparison $6.0
Prices (millions)
used aircraft market at the end of February 2022 with five showing there were sales pending. The asking prices ranged from a high of $2.5m to a low of $1.25m, per JETNET data. Of course, the ‘For Sale’ market is a moving target. Two more aircraft had been added for sale by March 11, 2022. While each aircraft serial number is unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft – even between two aircraft from the same year of manufacture. This can be seen in the fact the two price extremities listed above are both for 2010model Citation Mustangs… The $2.5m Citation Mustang had just 679 hours Airframe Total Time and had been on the market for 166 days. The $1.25m Mustang had amassed 3,489 hours Airframe Total Time but had been on the market for 61 days. Meanwhile, there were only five Embraer Phenom 100s available for sale on the used market at the end of February 2022. Two more had been added by March 11, 2022. As of March 11, two of the jets had a sale pending. Four, including the two with the sale pending, invited inquiries. Two invited offers from interested buyers, while the remaining jet on the market had an ask price of $3.8m.
Table D - Embraer Phenom 100 Sample MACRS Depreciation Schedule
$4.0
2013 Embraer Phenom 100
$2.0
$0.0 0.000
0.040
0.080
0.120
Index (Index = Speed x Range x Cabin Volume / 1,000,000,000)
Citation Mustang. According to Aircraft Bluebook, the price of a 2013-model Cessna Citation Mustang is slightly lower ($2.4m vs $2.5m), and the Mustang has a lower hourly variable operating cost. Prospective buyers of a Very Light Jet would have to weigh the capabilities of each very carefully against their specific mission, alongside their operating budget to determine which is the best fit for their flight operations. If the higher cabin comfort and range capability of the Embraer Phenom 100 are attractive, are they justifiable when weighted against the extra cost? An added factor that may weight a decision over whether to buy one model over the other could be the production status of an aircraft. Both the Citation Mustang and Embraer Phenom 100 are no
MIKE CHASE Mike’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
www.AVBUYER.com
2013 Cessna Citation Mustang
longer in production, but whereas Embraer enhanced the Phenom 100 with the Phenom 100E and then the 100EV model, Cessna didn’t produce an upgraded model. This could be one of several reasons to speculate why monthly sales of pre-owned Phenom 100 jets increased dramatically, while Citation Mustang sales didn’t. Within these paragraphs we have touched upon several of the attributes that business jet operators value, although there are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buyer’s choice. These should all highlight that selection of one aircraft over another is rarely a clearcut decision, and should be undertaken with expert industry advice and guidance. T
COMPARE, CONTRAST, DECIDE with AvBUYER.com AVBUYER MAGAZINE Vol 26 Issue 4 2022
73
Project1_Layout 1 29/03/2022 11:02 Page 1
FLIGHT DEPARTMENT MANAGEMENT
AVBUYER.com
In-House Operation? How to Set-Up for Success (Part 2) Having discussed key elements to properly set-up an in-house flight operation for success, René Armas Maes focusses on other critical elements, including training, safety and quality assurance, start-up costs, and ongoing success measurements…
A
n integral part of any in-house flight operation is the development and implementation of a comprehensive safety strategy, to include both safety and internal evaluation/quality assurance. The safety and quality assurance should be consistent with the Flight Department’s mission statement, ensuring the safe transportation of its passengers. Moreover, it should be consistent with international best practices, addressing the broad range of risks involved in Business Aviation covering flight, maintenance, ground safety, aircraft protection, and passenger security.
74 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
The Flight Department’s safety program should be designed to prevent personal injury and property losses resulting from accidents and incidents, objectives which can be achieved through a dynamic corporate safety culture. Threats to safe operations should be identified, and safety interventions implemented. Safety trends should be monitored to validate effectiveness, and the results should be communicated throughout the operation. The flight department should also ensure professional training is given to those who will oversee safety, and ongoing education needs to be provided (in safety and quality standards, including
www.AVBUYER.com
READY
FOR ANYTHING
We train you to stay sharp, fine tune, and always be prepared. This empowers you with unwavering calmness and composure needed for all situations, from the everyday to the unusual. For this reason, FSI training is reserved for the sky’s most elite. FSI. Nothing short of excellence. Call +1.201.584.8262 today or visit FlightSafety.com
Flight Dept 1.qxp_Finance 22/03/2022 10:11 Page 2
FLIGHT DEPARTMENT MANAGEMENT
IS-BAO training covering a number of areas such as Safety Management Systems (SMSs), training and proficiency, emergency response planning, environmental management, and occupational health and safety). A decision should be made as to how often pilot and cabin crew training needs to be undertaken (e.g. twice-yearly, or annually?). The mechanics employed by the flight department should also receive regular training, while other areas that may require training include for international aircraft operations, security, first aid, CPR, and more. Those buying a factory-new aircraft will receive initial training for two pilots and a maintenance technician (if required) free of charge from the OEM. But recurrent training will be necessary, for both pilots and a licensed technician in Year 2, and should be budgeted for. When buying a pre-owned aircraft, training will need to be contracted from Year 1, and is likely to cost between $35k and $100k annually for two pilots.
Maintenance Considerations
Aside from safety and training, the flight department will need to have access to spare parts. Either seek to enroll the airplane on a parts-by-thehour inventory program that the OEM will offer for brand-new aircraft, or negotiate an agreement with a third-party provider. In addition to your ongoing spare parts needs, there will be a requirement to purchase a small stock of other parts to cover expendables, Aircraft On the Ground (AOG) events, and the parts that are not covered by the parts-by-the-hour program. The OEM should provide you with an accurate idea of the cost of those parts. 76 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
AVBUYER.com
The flight department will also need the relevant tooling and Ground Support Equipment (GSE), but it is wise to make the minimum necessary investment in these, instead utilizing the capabilities of the home-base airport’s ground services. Maintenance contracts, fuel supplier cards, catering, aircraft handling (at the home-base), aircraft cleaning, credit cards, and navigation data subscription services should be negotiated and agreed prior to the aircraft entering service, as should hull, liability, and hangar insurance. Now would also be a good time to negotiate a preferred rate with a local charter provider for whenever supplemental lift might be required. If you anticipate needing a specific number of supplemental lift hours over the course of the year, purchase discounted block hours/jet cards. Finally, specialized software and equipment need to be considered. Computers, office equipment, and software (including the licensing) will be needed, and is likely to include accounting software, dispatch software, maintenance tracking software, and others – especially if you will keep digital logbooks.
Measuring Success
As a business unit, the in-house flight department should track escalating costs, aligning these with the company’s priority to enhance productivity of its employees with more efficient mobility and faster response times to customer needs. To track the success and ROI of the flight department, the flight department manager should meet with company executives to better understand how performance will be measured (see ‘How to Measure BizAv’s Value to Shareholders’, AvBuyer, December 2020, p76). www.AVBUYER.com
Flight Dept 1.qxp_Finance 23/03/2022 09:41 Page 3
BEST IN CLASS CO N CO R D E S E A L E D L E A D AC I D A I R C R A F T B AT T E R I E S
Multi Point Testing Throughout the Manufacturing Process for Proven Reliability and Superior Starting Power
CONCORDEBATTERY.COM
One metric might be aircraft availability versus maintenance down-days. Another could be enhancements in employee productivity versus other modes of transportation (e.g., scheduled airlines), and the reduction of nights spent away from home. Be prepared to annually build a case for the flight department versus the airlines. Ascertain how much employee productivity would have been lost without the corporate aircraft, and what the impact would be in terms of related “extra” cost to the company (see ‘How to do a Corporate Travel Profile Analysis’, AvBuyer, November 2020, p58). In addition, capture how instrumental the business aircraft has been in expanding sales to new territories, how quickly the company was able to handle a customer emergency event, and how many shorter road trips were successfully completed compared to the time and cost it might have taken when using other modes of transportation.
ISO 9001 + AS9100
Conclusion
The key element, perhaps, to establishing a successful in-house flight department is choosing the right people with the proper soft skill set, selecting the aircraft that meets 80% of the mission, and building an internal structure with the right processes, software, and procedures. Ultimately, the in-house flight department should be managed as another business unit within a company and, like any other business unit, its endgoal must be to optimize the corporation’s returns, enhance employee productivity, increase personnel mobility, and bring an extra layer of flexibility to the company’s personnel. Finally, don’t forget that experienced attorneys and consultants in Business Aviation can assist you in properly setting up your in-house operation from a taxation, asset acquisition, regulatory, and operating cost perspective. T
RENÉ ARMAS MAES is Vice President Commercial at Jet Link International LLC, an international aviation consultant. He has built a successful track record for delivering Business Aviation consulting projects for Fortune 500 companies, Venture Capital firms, and HNWIs in North America, the Middle East, Europe and Latin America. His expertise includes corporate travel assessments, business aircraft analysis, aircraft financing and sales.
www.AVBUYER.com
EXPLORE FLIGHT DEPARTMENT MANAGEMENT with AvBUYER.com
AVBUYER MAGAZINE Vol 26 Issue 4 2022
77
Flight Dept 2.qxp_Finance 22/03/2022 09:30 Page 1
FLIGHT DEPARTMENT MANAGEMENT
Electronic Technical Logbooks: The Benefits Manual logbook entries are an onerous business, requiring much time and effort – so it’s hardly surprising that Electronic Technical Logbooks are increasing in popularity. But what are the specific benefits to Business Aviation operators? Mario Pierobon explores…
E
lectronic Technical Logbooks (ETLs) have made their way into Business Aviation because of the need for business aircraft operators to streamline their operations and improve safety through more accurate technical records. An ETL is primarily the “digital pendant to an aircraft technical logbook”, and is used on an electronic device, such as a tablet computer or electronic flight bag, says Mona Stuenckel, Senior Director of Digital Solutions, Automation & Technology at Lufthansa Technik. “It covers all of the functionalities a paper logbook provides, like raising technical complaints, or tracking flight-related information.” To understand the ETL, it’s necessary to start from the definition of ‘Tech Log Page’ (TLP), according to Hayley Russell, Marketing Manager at Conduce Mobile Aviation Solutions. “The TPL is the legal and technical record of an aircraft’s status and must be completed for every flight sector. “This aircraft-specific book is printed in various copies. This is completed and signed by the pilot and engineer, and then a copy is ‘left on the ground’.” Older paper-based systems require copies to be scanned and emailed – or in some cases even faxed – 78 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
back to base to be manually typed into the MRO or back-office system, Russell explains. “In this way the information from the TLP is then shared with the relevant departments. Illegible handwriting, errors and vital missing information all contribute to the inefficiency of this legacy process”, she highlights. “An ETL, such as Conduce’s eTechLog8, replaces the industry standard paper journey, technical, defect and cabin logbooks with an application on an electronic device.”
Benefits of ETLs
Lately, ETLs are being used increasingly by airline operators, air taxi operators, and, whenever possible, private operators, notes Continuing Airworthiness Manager Sara Zerbini. One reason is because it saves time to complete the documentation, since some fields can be automatically inserted. “Some systems allow operators to pre-fill the date and time without making mistakes, taking for example the date and time from the iPad or the electronic flight bag system,” Zerbini notes. The ETL is also convenient because it saves space, and there is no need to keep paper copies that require www.AVBUYER.com
Flight Dept 2.qxp_Finance 22/03/2022 09:31 Page 2
AVBUYER.com
distribution and can potentially be lost. “Copies of the electronically-filled pages can be sent directly to the operator, or to the handler on the ground, electronically,” she highlights. Another interesting aspect of ETL has to do with the handling of technical issues, Zerbini adds. “If, for example, a pilot is starting operations with a problem, or they’re under the Minimum Equipment List (MEL) and a spare component is required upon landing, the information can be sent in advance, and can therefore be provided upon the aircraft’s arrival, along with a mechanic.”
ETLs: Does Business Aviation Need Them?
Increasing the efficiency of the logbook process, ETLs accelerate flight preparation and allow operators to directly enter the data in the Maintenance Information System (MIS) without delay, while eliminating manual effort and ensuring the data is readable and standardized. “The same benefits are experienced by Business Aviation operators, though considering they usually operate smaller fleets and not on a scheduled basis, the effect and thus the need may be less significant,” www.AVBUYER.com
Stuenckel admits. However, from an environmental point of view, “process efficiency and the use digital state-of the art solutions has brought an increase in interest from operators in the Business Aviation industry”. That increase has been noticeable over the past few months, according to Stuenckel. “Adoption and implementation of an electronic logbook is a necessity to remain competitive in the industry,” argues John Stone, Vice President of Product Management at Ultramain Systems, who adds that there is certainly a need for ETL in Business Aviation. “For example, the same benefits of using the Ultramain ELB that are experienced by Part 121 operators can be experienced by Business Aviation operators, too”, he highlights. The Ultramain ELB is electronic technical logbook software that fully replaces the paper technical log, cabin log, journey log, damage log, fueling logs, and more (including signatures), according to Stone. “eTechLog8 has a logical workflow and uses mandatory fields so you cannot miss entering key information,” Russell says. “One of the benefits of an electronic system is that AVBUYER MAGAZINE Vol 26 Issue 4 2022
79
Flight Dept 2.qxp_Finance 22/03/2022 09:32 Page 3
FLIGHT DEPARTMENT MANAGEMENT
AVBUYER.com
“An ETL replaces the industry standard paper journey, technical, defect and cabin logbooks with an application on an electronic device.”
back-office teams have real-time, read-only access to the ETL in the cockpit via middleware, such as Conduce’s eCentral8. This enables proactive maintenance planning and support, reducing delays as teams no longer need to wait for the aircraft to return, or for manual workflows such as emailing a copy of the TLPs, to understand the status of the fleet. “This can be especially useful for Part 135 charter providers,” Russell highlights, “as they often don’t know when the aircraft will next be back at base, and therefore when they might next get access to the paper log.” In addition to the ETL, fully integrated companion apps, which can be key for business aircraft operators (for whom the status of the interior can be just as important as the aircraft itself), prevent time consuming data entry replication, reducing costs as
turnarounds become more efficient, Russell notes. “ETL adopters also enjoy a strong return on investment (ROI), because paper systems are expensive when you factor in secure storage, printing costs, logbook purchase, and the cost of entering and processing the data, researching mistakes, and tracking down missing information,” Russell concludes. “Conduce estimates that 50% of the cost benefit from running an ETL comes from the seamless integration with the MRO and back-office systems.” ETL is indeed developing critical mass within Business Aviation, because of the process efficiencies that it brings. Next time, we will review what is preventing the wider adoption of ETL, who is responsible for ETL implementation, and the additional efficiencies ETLs bring. T
MARIO PIEROBON is a safety management consultant covering both fixed- and rotary-wing operations. He writes broadly on safety-related topics, with expertise of air operations and crew training safety regulations. As a consultant, Mario helps companies improve procedures. His knowledge of safety is valued by several industry-leading publications, including AvBuyer. More information from: https://www.linkedin.com/in/mario-pierobon-85991319/
80 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
MAKE MORE INFORMED FLIGHT DEPARTMENT MANAGEMENT DECISIONS with AvBUYER.com
www.AVBUYER.com
Pratt & Witney March.qxp_Layout 1 23/03/2022 14:18 Page 1
POST-HSI TO OVERHAUL. WE’VE GOT YOU COVERED. P&WCSMART™ SUBSCRIPTION SERVICE FOR SELECT PT6A ENGINES
$ FRVW HIIHFWLYH DQG ÀH[LEOH DQQXDO VXEVFULSWLRQ SDFNDJH IRU FXVWRPHUV EHWZHHQ WKHLU +6, DQG RYHUKDXO ZLWK VHOHFWHG VFKHGXOHG DQG XQVFKHGXOHG HQJLQH PDLQWHQDQFH FRYHUDJH DQG GLJLWDO HQJLQH KHDOWK PDQDJHPHQW VHUYLFHV 2SWLRQV DUH WDLORUHG WR RSHUDWRUV¶ À\LQJ KRXUV DQG SUHIHUHQFHV RQ WKH OHQJWK RI WKH VXEVFULSWLRQ WHUP SOXV PXFK PRUH
LEARN MORE AT WWW.PWC.CA/SMART-SUBSCRIPTION-PT6A
Project1_Layout 1 29/03/2022 11:03 Page 1
FLIGHT DEPARTMENT MANAGEMENT
AVBUYER.com
Considerations When Picking Your Airplane’s Base Beyond the obvious decisions over hangarage, ground services, physical location and FBOs, what are some more subtle considerations aircraft owners and operators should weigh up in choosing a home airfield to base their airplane? Dave Higdon explores…
T
he operator had been happily based at an airport located a very convenient 20-minute drive from the company’s headquarters, helping to ensure key personnel could be flown quickly and efficiently to visit clients and prospects all around the United States in the Super Mid-Size Jet that had recently been acquired. Fuel costs were competitive, and a friendly team at the onfield Fixed Base Operation were both capable and efficient. Nothing seemed to be too much trouble. Operations seemed to run seamlessly for a while… until the day the jet had its first breakdown and the local maintenance shop seemed unequipped to identify the faulty part, replace it, and get it back in the air as quickly as the company needed. Well-respected, and vastly experienced in many aircraft makes and models, that experience didn’t seem to be so deep when applied to the make/model of the company’s broken-down Super Mid-Size Jet. As the time and costs to fix the problem started to mount, a dream relationship with the local airport began to sour. This example highlights how an operator must ensure their research of potential airfields is extensive, stretching beyond
82 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
the obvious questions about the available facilities, and touches upon several 'What if?' scenarios. While far from comprehensive, the following are just a few examples of areas requiring deeper thought to ensure you receive the service and support you need for your aircraft operations from a home-base airfield…
Maintenance Needs
While many airports enjoy the convenience of an on-field maintenance provider, not all maintenance shops are created equal – and this needs to be a consideration when thinking about where to base the aircraft. For example, larger, more experienced shops may offer an Airframe and Powerplant (A&P) mechanic who holds an Inspection Authorization (IA). A&P mechanics who hold IAs are permitted to inspect and approve aircraft and parts for return to service following a major repair or alteration, and they may also perform annual and progressive inspections. One operator I know suffered a breakdown during the preflight inspection one afternoon when they planned to fly the airplane home. An overnight package service delivered the needed part early the next morning, but the A&P/IA had to
www.AVBUYER.com
Leadership A matter of fact
Wider AOG Coverage than our leading competitor Learn the facts at businessaircraft.bombardier.com
All claims made are based on the mobile response coverage compared to our leading competitor at June 2021.
Bombardier and Exceptional by design are trademarks of Bombardier Inc. or its subsidiaries. © 2021 Bombardier Inc. All rights reserved.
DDBA0862_CXads2022_ProPilot_V1R2.indd 1
2021-12-07 12:06 PM
Flight Dept 3.qxp_Finance 22/03/2022 12:12 Page 2
FLIGHT DEPARTMENT MANAGEMENT
AVBUYER.com
“...the proximity of an A&P/IA is one of the factors to consider when an operator weighs where to base their aircraft.” come from 150 nautical miles away, which the A&P/IA flew himself. The A&P/IA had the new part installed, calibrated, tested and test-flown before lunch, and, having accompanied the A&P/IA on the post-maintenance flight check, the operator was airborne and en route home right after lunch. Having quick access to an A&P/IA is certainly fortunate for the operator who is unlucky enough to suffer a breakdown. Thus, the proximity of an A&P/IA is one of the factors to consider when an operator weighs where to base the aircraft.
Moving out of Necessity
It’s not exactly breaking news that many businesses are shortstaffed within Business Aviation. With skilled workers highly sought-after, it can be a struggle for an MRO shop to retain its most valued and experienced staff members. Keep a close eye on the situation at your local MRO shop, since such staffing challenges may occasionally take an aircraft maintenance shop to below the level needed to meet its business and regulatory minima. At the very least, loss of core personnel can lead to inefficiencies and longer leadtimes in getting work completed, or even a drop-off in the quality of work produced, which can become problematic for the operator. What's an operator to do when their local maintenance shop and its team leave the field, or if the level of maintenance provided on their home field leads to dissatisfaction at the standard of maintenance or more days on the ground than necessary? Most likely, it’s time to look elsewhere, either outsourcing maintenance to another shop at another field, or relocating the aircraft altogether.
Runway Needs
If maintenance isn’t the driving factor in electing where to base a business aircraft, runway capabilities certainly will be. In fact, for operators flying under Part 135 especially, runway length can be a deal-breaker if it can’t facilitate the accelerate/stop requirements for the aircraft. The aircraft OEM can help operators determine whether its aircraft and a particular runway can meet those factors. Of course, bad-weather operations must factor in this decision. 84 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Weather Factors
And, speaking of runways and weather, for many years an ILS was a significant factor in attracting operators to suitably equipped airports. Automatic Dependent SurveillanceBroadcast (ADS-B) has helped expand the number of runway ends that offer precision approach capabilities – all thanks to the dominance of WAAS GPS navigators predominantly used to inform the ADS-B system of position, altitude, ground speed, and more. While there is other equipment than WAAS GPS that is capable of meeting the FAA’s requirements for position, speed, altitude, and flight vector, the most cost-effective, with the most use, is WAAS GPS. While access to precision runway approach is getting better and more plentiful, there is a flip side to this coin. The FAA is shutting down scores of ILS systems as WAAS approaches grow in number, which raises the prospect of an operator moving because that ILS is the only precisionapproach system installed in the aircraft, and the cost of upgrading can be significant.
In Summary…
The above paragraphs are just a representative sample of multiple less-obvious factors business aircraft owners and operators must consider when making sure an airport is right for their operation – and that it continues to be for the duration of their tenure. Remember, every aircraft owner’s requirements will be unique. What’s right for the operator next door may not be right for you. Spend time working through all your needs, and all of the possibilities. It’s the only way to make sure the support you receive to optimize your business tool is everything you need it to be. T DAVE HIGDON is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com
www.AVBUYER.com
P085.qxp 24/03/2022 12:05 Page 1
PREMIUM
LED LIGHTING FAA & EASA APPROVED 208.850.3294
Sales@AeroLEDs.com
Simplify Your Pilot Hiring
Save Time and Access the Largest Network o= -ѴbC ;7 oll;u1b-Ѵ bѴo|v ŋ ou u;;ĺ
-bm =u;; -11;vv |o - 7b ;uv; rooѴ o= t -ѴbC ;7 rbѴo| -rrѴb1-m|vĺ
ù Unlimited Free Job Postings
ù Hundreds of Pilots — from Low Time to High Time ù Save Time with Filtering and Screening
ù Easy Application Review and Management
v|ol $-bѴou;7 "oѴ ঞ omv ); 1-m 7;Ѵb ;u t -ѴbC ;7 ru;Ŋv1u;;m;7 rbѴo|vķ b|_ 1 v|olŊ|-bѴou;7 ru;Ŋ_bu; f;| |u-mvbঞ om -m7 " |u-bmbm] =ou o u -bu1u-[ ĺ -ѴѴ ƖƏƓŊƔƖƔŊƕƖѶƖ |o Ѵ;-um lou;ĺ
Post Your Job for Free at PilotPool.com www.AVBUYER.com
8:15 AM
AVBUYER MAGAZINE R Vol 26 Issue 4 2022 R
85
ENGINES.qxp_Finance 22/03/2022 12:27 Page 1
ENGINES
What are the Basics of Rolls-Royce CorporateCare? Considering the increased number of first-time Large Jet buyers, Rolls-Royce has received various fundamental questions regarding its CorporateCare hourly cost maintenance program (HCMP). Following, Tony Kioussis helps shed some light on the basics……
T
he following is designed as a primer, running through the features, benefits, and value basics for people new to aircraft ownership. It also provides a helpful refresher for those already operating jets enrolled on CorporateCare® or CorporateCare Enhanced (the term CorporateCare in this article covers both programs).
Engine Maintenance Warranty & CorporateCare
Engine maintenance can be grouped into three categories: (1) Preventative maintenance, which covers items such as Engine Health Monitoring, Service Bulletins, and Training; (2) Scheduled maintenance, covering calendar and hourly inspections or service; and (3) Unscheduled maintenance, meaning breakdowns or Aircraft on Ground (AOG) events. During an aircraft’s early years, warranty will cover a major portion of any unlikely unscheduled maintenance event that occurs. However, there can be gaps between what a warranty covers and what the operator is likely to pay to address an Unscheduled event. Preventive and scheduled maintenance is not covered by warranty. This is where CorporateCare helps ensure budget stability, as well as optimal aircraft availability, efficiency, and reliability.
CorporateCare & CorporateCare Enhanced
During the 2018 National Business Aviation Association annual conference, Rolls-Royce introduced CorporateCare Enhanced, 86 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
the company’s expansion of its highly-regarded, widelyaccepted CorporateCare Program. In addition to the maintenance events traditionally covered under the original engine program, CorporateCare Enhanced engine coverage was specifically introduced to mitigate the disruption and high cost of troubleshooting and repairs on the engine cowls, Thrust Reverser Units (TRUs) and engine build-up on the BR710, BR725 and the brand-new Pearl 15 engines, including maintenance due to wear and tear, and corrosion. The new programs also extended labor and/or parts coverage for certain events that were not previously covered through the original program offered on BR710, Tay 611, and AE 3007 engines. Keeping in mind that CorporateCare coverage requires an operator to pay a set hourly fee each time they operate their aircraft, prospective first-time aircraft buyers may ask: “Are these programs worth the cost?” A more appropriate question might be: “Can I afford to pass up the value of CorporateCare coverage?” It is Asset Insight’s view that CorporateCare’s benefits exceed the program’s fee – in some cases by a large margin.
Budget Predictability
Hourly Cost Maintenance Programs were introduced by engine manufacturers to provide operators with budget stability by eliminating large, unexpected maintenance bills. www.AVBUYER.com
ENGINES.qxp_Finance 23/03/2022 09:45 Page 2
AVBUYER.com
Priority Access to a Global Network
Rolls-Royce has established a global network of teams and capabilities that are focused on responding as quickly as possible to its customers. The company has put in place a network of authorized service centers that can work on its behalf, and has over 75 physical sites around the world that can work on Rolls-Royce products. Additionally, it has spare parts located in nine stores around the world, along with more than 150 lease engines strategically positioned around the globe. CorporateCare clients enjoy priority access to these support capabilities, and to over 50 on-wing services specialists – engine technicians located worldwide. All these support capabilities are coordinated through Rolls-Royce’s Availability Center, a 24/7 operations room. The company’s availability target is extremely ambitious: To rescue an aircraft within 24 hours, and avert missed trips 100% of the time. Although the latter target is difficult to achieve, the company is routinely exceeding 99% and is very close to clearing any AOG within 24 hours.
Benefits for the Owner
There are also benefits to CorporateCare with quantifiable value flowing directly to the aircraft’s owner. • CorporateCare coverage does not cap, or limit, the amount the program will pay to address any covered maintenance event, and there are no areas of the engine that are excluded from coverage. If, for example, an operator has paid $500,000 into the program, and they experience a $1m enginerelated/qualified event, Rolls-Royce will cover the entire $1m event. There are no top-up fees, and there’s no increase to the operator’s hourly rate. Essentially, once on CorporateCare, all of the risk associated with engine maintenance cost is absorbed by Rolls-Royce.
•
Increased Asset Value
Aircraft whose engines are enrolled on CorporateCare routinely experience an asset value enhancement at time of resale. The level of value increase depends on the market environment and other factors, but it could be as high as the amount of fees paid for CorporateCare coverage. Conversely, not enrolling an aircraft may result in a valuation reduction if the majority of the model’s listed fleet is enrolled on the program. Since more than 70% of the eligible fleet is enrolled on CorporateCare, the odds do not favor owners whose aircraft lack coverage. Of course, in order for any Long Term Service Agreement to enhance the aircraft’s value at time of sale, it must be transferable – and CorporateCare programs are transferable, without a fee to do so. www.AVBUYER.com
•
•
•
Additional Coverage While Under Warranty: During an unscheduled maintenance event, there may be ‘related expenses’ that are not covered by warranty, such as shipping the affected component to the maintenance facility, shipping a rental component to the aircraft, installing the component, the cost of the rental component during the repair period, removing the rental part once the original component has been repaired, return shipping for the rental component, return shipping of the original component, and logistical support associated with these tasks. That is not to say warranty is not valuable, but its coverage can be limited to the cost of repairing the affected component. Financial Exposure to Resale: Depending on market conditions, an owner may need to enroll their aircraft on CorporateCare rather than suffer a valuation decrease in excess of the Long Term Service Agreement’s buy-in fee. While incurring the buy-in fee expense at time of sale, they will have enjoyed none of the LTSA/HCMP’s coverage benefits during their aircraft’s ownership period. Days on Market: Detailed analytics by Asset Insight have revealed that an in-service aircraft will take longer to sell without LTSA/HCMP coverage. This could mean a substantial loss when market values are decreasing. Related Costs: Many owners fail to account for the true cost of rental components, the total cost of charters during the asset’s down-time, and storage as well as other fees for their grounded aircraft. Financing Benefits: Each aircraft financing entity has its own way of valuing Hourly Cost Maintenance Program
AVBUYER MAGAZINE Vol 26 Issue 4 2022
87
ENGINES.qxp_Finance 22/03/2022 12:28 Page 3
ENGINES
AVBUYER.com ROLLS-ROYCE ENGINE PARTS SHIPMENT (LEFT) AND (RIGHT) A ROLLS-ROYCE BR725 POWERPLANT OFF-WING.
coverage, so determining the exact value that any one financier may place on CorporateCare coverage is difficult. However, the savings differential over the term of a loan or lease could be substantive.
Remote Site Rescue
While an unscheduled engine maintenance event is uncommon, when one does occur, the aircraft is not usually located on an airfield with an authorized service center. This can cause extended periods of downtime, accompanied by tricky logistics, and high costs. When an aircraft is enrolled on CorporateCare, the protection and support of the Rolls-Royce service network is activated, marshalling the expertise and resources to rescue the customer in a timely and cost-effective manner. Masset Island is located approximately 31 miles west of mainland British Columbia and has 800 residents. Masset has an airport with little infrastructure, but its 5,000-foot runway allowed a CorporateCare client to access the airfield. Unfortunately, the aircraft developed a technical problem when it needed to depart, and an engine change was eventually deemed necessary. The only way to accomplish the
engine change, was to charter a C130 to deliver a replacement engine, along with the people and tools required to complete the work on the island. The necessary maintenance was completed expeditiously, the aircraft was returned to service, and all costs were covered by CorporateCare. Another CorporateCare client who flew to the Maldives suffered an unscheduled maintenance event requiring a replacement engine and a support team to be flown in. Here again, the expense required to provide the necessary support was covered by CorporateCare. CorporateCare and CorporateCare Enhanced reduce (and provide predictable) engine maintenance costs, increase an aircraft’s value at time of sale, and offer the ability to rescue an owner’s aircraft anywhere in the world. The only question remaining is why any owner would forego the value of CorporateCare coverage? ❚ More information from https://www.rolls-royce.com/products-and-services/ civil-aerospace/aftermarket-services/business-aviation.aspx
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. More information from www.assetinsight.com
88 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
MAKE MORE INFORMED ENGINE MAINTENANCE DECISIONS with AvBUYER.com
www.AVBUYER.com
P089.qxp 24/03/2022 12:15 Page 1
EXTEND PT6A ENGINE TBO TO 8000 HOURS Visit Us during NBAA - Booth #N2629 info@morecompany.net +1 775-782-3346
www.morecompany.net MORE_POSTCARD_4-1/4x6.indd 1
4/10/13 12:21 PM
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
www. www.AVBUYER.com
.com AVBUYER MAGAZINE R Vol 26 Issue 4 2022 R
89
CABIN Electronics 1.qxp_Finance 22/03/2022 12:39 Page 1
CABIN ELECTRONICS
Jet Connectivity: Short-Term Development Outlook
Brian Wilson reviews the Business Aviation cabin connectivity market, reviewing how 5G and new satellite constellations will finally fix the laggard performance aviation aficionados have been experiencing over the past twenty years. What’s the short-term outlook…?
90 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
here are some big developments afoot in the world of business jet connectivity, and it’s important for aircraft owners to be aware, ready to take advantage of enhanced capabilities. Although fast-moving and complex, the following outlook provides a simplified overview of what to look out for. Geostationary satellites have come a long way, with increased speeds and reliability in recent years. But they still have areas of weak (or no) coverage, are very expensive, and require a large mechanically steered antenna (MSA) to be installed on the aircraft. These Ku- and Ka-Band satellites are positioned 22,236 miles above the Earth and are susceptible to high latency, and weather effects on their performance. This high-end solution is suitable for only 25% of the business aircraft market, ultimately. Inmarsat SwiftBroadBand (SBB), meanwhile, offers an alternative satellite solution for the rest of the marketplace, but has coverage and data-speed
T
www.AVBUYER.com
CABIN Electronics 1.qxp_Finance 22/03/2022 12:40 Page 2
AVBUYER.com
compact cars, allowing up to 60 to be launched at once. One new rocket scheduled to debut in late 2022 will have the capacity to launch up to 100 LEO satellites at the same time. Unlike the GEO network that has less than 10 satellites to complete its network, these LEO constellations will consist of thousands of satellites in orbit. The very high elevation of the GEO-stationary network allows expanded coverage, and when based at the equator these satellites can reach speeds equivalent to the Earth’s rotation, hence they are “stationary” above the Earth. The LEOs will also work on both the Ku- and Ka-Band frequencies, but at a lower orbit. They will be positioned 350-500 miles above the Earth, reducing latency by more than 50%. Moreover, because the LEO network is a lot closer to Earth the coverage area is a lot less, hence the need to have so many satellites. Whereas a GEO-based system can be locked to the same GEO satellite the entire flight, a LEO platform will have to “transition” from one satellite to the next every five to ten minutes.
New, Advanced Antenna Needed
restrictions. Iridium constellations, meanwhile, provide worldwide coverage including the north and south polar regions. However, the data speeds associated with Iridium do not meet the expectations of today’s Business Aviation passengers.
Low Earth Orbit (LEO) Constellation
Enter the Low Earth Orbit constellation (LEO). Billions of dollars are being invested and allocated to produce a viable LEO network and constellation. No less than five well-funded companies have announced plans to launch a network, and have satellites currently in orbit. In fact, in 2020, these five companies launched 20 times more satellites than were launched less than ten years earlier, in 2011. New technologies in satellite launching and rocket booster recoveries have led the way. Unlike the school bussized satellites associated with Geosynchronous Equatorial Orbit (GEO), these new LEO satellites are the size of small, www.AVBUYER.com
All of this will require a new and advanced antenna for the aircraft. The mechanically steered antennas (MSAs) used today with GEO-based systems are not capable of tracking so many satellites every few minutes. That’s where a fuselage-mounted, electronically steered antenna (ESA) comes into play. Picture a small antenna located on top of the aircraft that looks similar to a miniature surfboard, and with no moveable mechanical parts. While ESAs have been around for about twenty years, due to their original size and the fact that they are flat (and aircraft fuselages are curved), they were not ideal for aviation, unlike MSAs. New ESAs will have to be smaller and conform to the aperture of the fuselage better. The chances look promising, with no less than 25 companies aspiring to be the aviation supplier for LEO-based ESAs. Multi-beam tracking technology will allow the ESA to lock on to multiple satellites simultaneously, thus making transitions between satellites seamless. Reducing the size of the antenna will make LEO-based systems more attractive for Light and Mid-Size Jets.
5G is Rolling Out
Also on the horizon for Business Aviation connectivity is the fifth-generation of mobile communication. 5G is quickly rolling out globally for the millions of ground-based subscribers. For the thousands of aircraft based in the US, and those frequently flying to the US, Gogo Business Aviation is developing an end-to-end 5G system for the aviation community. Based on its current Avance L5 (4G) platform, Gogo 5G will enhance the passenger experience with its proprietary network designed exclusively for Business Aviation.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
91
CABIN Electronics 1.qxp_Finance 23/03/2022 09:48 Page 3
CABIN ELECTRONICS
Trial testing has found average speeds of 25Mb/second, peaking at 75-80Mb/second. This will clearly be a gamechanger in the industry (current Avance L5 systems typically deliver an average 2-7+ Mb/second). Since the L5 can allow up to 2-3 simultaneous streams, Gogo 5G will allow most passengers to do what they want as though they were on the ground. The current ground network of 250 towers is being upgraded to 5G, and will be completed by end of 2022. 5G equipment will be available in Q1 2023.
Five-Year Planning & Connectivity Forecast
GEO systems: For owners/operators of Large Jets that already have a GEO-based Ku- or Ka-Band system or will install one in the next year or so, if you have the budget stick with your plan. The messaging coming from service providers is that their systems will be LEO-compatible. However, these MSA systems’ most vulnerable LRU is the mechanically steered antenna. Now faced with ‘excessive’ mechanical movement of tracking the large array of LEO satellites in a stabilized environment will surely reduce the meantime between failure rates. Swift Broadband (SBB) and Iridium: For the smaller airframes that fly outside of the US, these two networks provide the only alternative and are flying on thousands of aircraft. The LEO constellation will provide a welcomed
AVBUYER.com
option for these aircraft. The coverage area and data rates associated with SBB are tolerated, due to no other solution being available. Iridium provides worldwide coverage; however, the data speeds are below customer expectations. Both SBB and Iridium will continue to serve a role with safety services, aircraft tracking, and messaging, but they will be targeted by the LEO companies. Air-to-Ground (ATG): For the thousands of aircraft based in the US and flying with Gogo ATG and Avance platforms, the release of Gogo 5G later in 2022 will give passengers everything they need. The 5G rollout is fully funded, and the roadmap and milestones are already in place.
Looking to Prepare for Connectivity Developments? As we often stress, reach out to at least three OEMs or MROs for consultation, testimonials and quotes to help ensure you are getting the right fit for your aircraft. While LEOs are still 3-4 years away, the manufacturers and outfitters are already educated and planning their strategies. With so many well-funded companies invested in this area, LEOs will not only become a reality, they will be major players in the market. Be sure to have your five-year plan and budget in place so you, too, can jettison into the next constellation. ❙
BRIAN WILSON is the Director, Key Accounts at Gogo Business Aviation, an industry-leading provider of in-flight 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.
92 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
MAKE MORE INFORMED CABIN UPGRADE DECISIONS with AvBUYER.com
www.AVBUYER.com
CABIN Electronics 2.qxp_Finance 22/03/2022 13:46 Page 1
CABIN ELECTRONICS
COURTESY OF COLLINS AEROSPACE
Tips on Forward-Thinking CMS Upgrades When you’re installing a new cabin management system, what can you do to ensure it will be able to handle future advances in technology and functionality? Chris Kjelgaard asks some of the CMS experts.
I
t is clear to the experts who design, manufacture and sell cabin management systems (CMSs) for business aircraft that one technological factor will be of overriding importance throughout the foreseeable future as CMS design and functionality continues to evolve. That technological factor is broadband wireless connectivity to and within the cabin. The extent to which Wi-Fi is available throughout the cabin — in terms of the bit-rate it provides, and how reliably it does so wherever the aircraft flies — will determine how well the CMS will function, and the extent of the capabilities it will offer each passenger. In-cabin consumption of broadband connectivity is still expensive today, but continuing advances in satcoms coverage and capability, and in the growth of terrestrial 5G cellular communications networks, are leading CMS manufacturers to assume “that at some point the aircraft will be able to get [broadband connectivity] affordably and reliably wherever in the world it may be”, according to Steve Scarlata, Co-Founder of 94 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Alto Aviation and the company’s VP of Engineering/Research and Development. Today’s business aircraft fliers are accustomed to everyday use of smart devices — ranging from security systems to floor cleaners, or from lighting systems to digital personal assistants in their homes. Now they are expecting smart systems to become similarly ubiquitous in their aircraft, says Stephanie Cooper, Product Marketing Manager for Cabin Solutions in Collins Aerospace’s Business & Regional Aviation Division. Making sure that can happen reliably, and in a cohesive manner, is not a simple matter, says Cooper. For one thing, future CMSs will probably employ artificial intelligence software systems which make use of machine-learning predictive algorithms. They will do so to predict ahead of each flight the preferences of each passenger for parameters such as lighting, sound, cabin temperature, entertainment, and dining, and will relay each passenger’s individual preferences to the cabin attendants, to www.AVBUYER.com
CABIN Electronics 2.qxp_Finance 22/03/2022 13:47 Page 2
AVBUYER.com
allow a highly individual service to be provided. But even more important to the typical business aircraft flier is being able to maintain a high level of privacy within the cabin. The advent of new cabin technologies – such as voice control and gesture control, relaxation-promoting audio and lighting combinations, seat-to-seat audio communication, and highresolution videoconferencing – involves the use of audio, motion, and video sensors. In the cabins of tomorrow, the anticipated presence of many smart sensors creates important implications for passenger privacy. You don’t want the cameras always on you, or microphones picking up and recording your every word, notes Don Hamilton, the other Co-Founder of Alto Aviation, and its President. While probably typical of future CMS capabilities, the services listed above will by no means represent all the functions that future new, or thoughtfully upgraded, CMSs will offer. At the very least, CMSs in years to come will need to provide enough Wi-Fi bandwidth, and the cabin router enough interfacing and switching capability, to allow passengers to use apps on their personal devices to control any cabin function handled by the CMS. What, then, can owners do now to ensure they can upgrade their aircraft’s CMS to be able to incorporate the increased functionality, flexibility, and bandwidth that future technological developments will bring?
Tip 1: Learn if and How Your CMS Can be Grown
Many business aircraft are operating with CMSs which are obsolete. A good test of obsolescence is to determine how easy it is to obtain replacement parts for any failed components of your CMS. The harder it is to find such parts, the more obsolete your CMS is. If your aircraft has an obsolescent CMS, your choices are either to keep operating the aircraft as it is; try to sell it; or pay to have a new, upgradeable CMS installed. Assuming your aircraft’s CMS is not obsolete, the next step is to understand if, and how, the CMS can be grown. Unless you are technically expert in the design and performance specifics of your aircraft’s systems, you should ask the CMS manufacturer about the system’s capabilities, and how those can be modified or enhanced to incorporate new functionality and increased
Wi-Fi bandwidth in the future. When asking such questions, owners should be aware that while in some cases CMSs can incorporate individual, powerful, connected electronic devices, these are likely to become obsolete more quickly than are more run-of-the-mill units, according to Scarlata. It is also important for the aircraft owner to have a clear view of what capabilities the upgraded CMS needs to have, and that depends both on the aircraft’s performance characteristics, and on how the owner intends to use the aircraft. “A charter customer has different [CMS] needs to a family using the jet,” says Scarlata. In most cases, the real heart of a CMS and the real gauge of how upgradeable it is lies in the software which controls the functions, along with the system’s master control unit (which interfaces to the various switches controlling cabin lighting, temperature, etc.) and the interface controller. This unit controls inputs from, and outputs to, any modular interfaces tied to units or devices which provide various cabin functionalities, such as an audio/video on demand (AVOD) application embedded with a controller in a bulkhead monitor, or a receiver which allows any personal electronic device carried by a passenger to control various CMS functions using Bluetooth wireless capability. The control software, the control units, and the associated switches and wiring linking together all the visible parts of the CMS — such as its video screens, audio speakers and side-panel or in-seat environmental controls — make up what technicians call the “backbone” of the CMS. Cooper says the backbone of Collins’ Venue CMS includes a fiber distribution network that allows for high bandwidth and low latency of audio and video communication. CMS backbones also include items such as Ethernet opticalfiber connectors, HDMI-to-3G FDI video converters, and software transfer protocols that make the upgrade paths possible in the first place. “A lot more of the [monetary] value of the CMS is underneath the floorboards” of the cabin in the hidden control units and interfaces than many owners realize, she says. Instead of upgrading the entire CMS all at once, many owners choose to install “point solutions” to improve specific individual CMS capabilities, says Cooper. Such point solutions may include (for instance) installing higher-resolution video monitors or adding controllers to allow the CMS to handle specific additional functionalities. But the backbone remains the most important part of the CMS and it has to be robust and allow for scalability if the owner wishes to keep upgrading the CMS over the longer term. So, knowing to what extent the CMS backbone can allow the CMS to be scaled up or to incorporate additional functionality is vital to understanding to what degree your CMS can be upgraded.
Tip 2: Know the CMS Manufacturer’s Reputation
CADENCE SWITCH SYSTEM COURTESY OF ALTO AVIATION
www.AVBUYER.com
When considering a CMS which you believe should be able to handle any conceivable functionality or scalability upgrades over a period of many years, it is just as important for the aircraft owner to know how well the manufacturer of that CMS is regarded for its technical and product support and its R&D capabilities as knowing what the CMS’s current capabilities are. “The key message for owners is how to prepare” for finally deciding on the CMS they will choose, says Cooper. They need AVBUYER MAGAZINE Vol 26 Issue 4 2022
95
CABIN Electronics 2.qxp_Finance 22/03/2022 13:48 Page 3
CABIN ELECTRONICS
AVBUYER.com
COLLINS AEROSPACE VENUE
to be sure that the preferred CMS is capable of being upgraded substantially, and supported properly by the manufacturer throughout the period the owner continues to own and operate the aircraft – and even beyond. A highly functional, still upgradable, well-supported CMS will contribute a respectable proportion of the aircraft’s overall resale price — and the aircraft’s market value is likely to be even higher if the CMS manufacturer is continuing to develop the CMS design and is still introducing improved performance characteristics and functional capabilities. Aircraft owners should study the CMS manufacturer closely to learn about the company’s CMS business-development direction (in terms of how seriously it is studying new consumer technological trends and investing in developing ways in which their CMSs can incorporate or reflect those trends), says Cooper. Collins Aerospace makes the best-selling Venue CMS, installed in more than 1,600 in-service aircraft. The Venue system’s backbone provides the infrastructure for the latest technologies to be added, which enables a seamless modular approach for future upgrades. Collins’ civil-aviation products range from airline seats to landing gear, and from electrical power systems and auxiliary power units to the massive air conditioning and environmental control system in the Boeing 787-10. It makes thousands of systems that go into aircraft, for just about every major aircraft manufacturer in the world. Even for a company as massive as Collins, however, it takes a major effort to stay fully informed on the rapid advances being made in the consumer electronics sector, as a vital way of understanding what is likely to become important next for CMS functionality. 96 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Collins sends teams of avionics and systems engineers to major electronics trade shows such as the annual Consumer Electronics Show in order to gain a clear idea of potential CMS development paths. “It takes constant monitoring to have an idea which of those technologies are going to need CMS solutions,” Cooper says. “But it also speaks to the lifespan we want to build into the products we make — making sure we have long-term supportability, and amplifying that experience.” However, says Hamilton, aircraft owners considering a CMS upgrade shouldn’t restrict their questioning merely to the manufacturer of the system. It serves owners well to also find out what one or more trusted maintenance providers think of the manufacturer’s reputation in that regard. Following are some questions owners should ask: • • •
How reactive is the manufacturer to supporting its CMS products in service? Does the company offer strong parts and technical support for any obsolescent CMS systems it still has in service? How likely is the CMS manufacturer to remain in business in the longer term? (Many aircraft are flying today with obsolete CMS installations simply because the manufacturer went out of business and replacement parts are becoming hard to find.)
Alto Aviation itself has built part of its business on supporting aircraft owners who found themselves with an obsolete CMS following the disappearance of once-prominent CMS manufacturers. After beginning life 25 years ago as a designer and www.AVBUYER.com
Aradian November.qxp 23/03/2022 14:36 Page 1
File photo
Gulfstream 450
Gulfstream 550
Several aircraft available
Several aircraft available
2015 Citation XLS+
2012 Embraer Phenom 300 1,495 hours. ESP Gold and Embraer Executive Care. EU Ops compliant. Synthetic Vision. In-flight phone and datalink. ADS-B compliant
1,725 hours. Power Advantage Plus. Aux Advantage. ProParts. ADS-B compliant. Iridium satcom
Gulfstream GIV SP
Gulfstream GV
Several aircraft available
Several aircraft available
2002 Eurocopter EC135T2
2005 Airbus EC120B
2670 hours. Air conditioning. Single/Dual pilot IFR
1490TT. Recent paint and interior. Air conditioning. Engine particle filter
ALSO OFFERING: Beech King Air C90GTi, B200, 350. Hawker 800XP, 900XP. Bell 412EP Call/Email For Details
www.aradian.com UK office Tel. +44 1481 233001 Fax.+44 1481 233002 steverogers@aradian.com ALSO IN: Middle East, South Africa, Russia, Kazakhstan, Spain, Germany and India
CABIN Electronics 2.qxp_Finance 22/03/2022 13:57 Page 4
CABIN ELECTRONICS
COURTESY OF ALTO AVIATION
manufacturer of high-quality audio systems for business aircraft (notably Gulfstream models), Alto Aviation subsequently expanded into designing and providing configurable, fully compatible replacement switches and controls for failing or failed OEMs’ obsolescent CMSs. Continuing development of that product line led Alto Aviation in 2017 to market its own, fully scalable CMS, the Cadence system, available as a whole or as individual replacement components such as switches and control panels. Alto’s Cadence products have been installed on more than 350 aircraft and more than 5,000 aircraft incorporate Alto Aviation cabin audio and/or other components.
In Summary…
In the final analysis, choosing the right system and the right manufacturer to give an aircraft owner peace of mind when seeking CMS solutions they will be able to upgrade over the longer term “comes down to service engagement”, says Scarlata. “The service mentality is really the most important aspect,” in differentiating a high-quality, reliable manufacturer from others which might not be as reliable in the long run. “Supporting the customer and the product in timely fashion” is the most important attribute for a CMS manufacturer to have, concludes Scarlata. “Good providers think things out for the best solution in ten years’ time.” ❙ More information from Alto Aviation: www.altoaviation.com Collins Aerospace: www.collinsaerospace.com CHRIS KJELGAARD has been an aviation journalist for 40 years, with a particular expertise on aircraft maintenance. 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.
98 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
JetNet April.qxp_Layout 1 23/03/2022 11:26 Page 1
TAKE A TEST FLIGHT OF THE WORLD’S PREMIER BUSINESS AVIATION RESEARCH. A JETNET subscription will provide you with original, extensive and continuous research on jets, turboprops, pistons and helicopters. Our products and services are tailored to your needs, giving you relevant results, daily. When you know more, and know it sooner, you’ll be ahead of the competition every time. If you’re ready to take the next step, we’re here to help your business grow. Request a demo today at JETNET.com.
KNOW MORE. The World Leader in Aviation Market Intelligence 800.553.8638 +1.315.797.4420 +41 (0) 43.243.7056 jetnet.com
Clip Group 2020 Bell 505 Jet Ranger X April.qxp_Heeren Cit Ultra sep 24/03/2022 11:27 Page 1
S H O W C A S E
2020 Bell 505 Jet Ranger X Serial Number: Registration: Airframe TT:
65253 SP-MRW 26
ADS-B GPS / WAAS receiver VHF COM transceiver VHF NAV and glideslope receivers
As owner, we are proud to present this BRAND NEW Bell 505 Price from Bell in this configuration (including ferry to EU) was $1,85M Price: $1,8M
Exterior Painted 2020 Metallic Black with Dynamic White Bell 505 logo
Airframe Delivery hours: 26 hours Dual Pilot Controls Wire Strike protection
Interior 2020 Premium interior with black leather seats Floor protectors: Baggage bay, Cockpit & Cabin A20 Bose headsets w/Bluetooth Air-Conditioning
Engine Dual-channel FADEC engine control system Auxiliary Control Unit (backup for HMU) Automatic startup Surge and flame-out protection Engine parameter recording for maintenance (BOOST compatible) Automatic cycle and flight hour counting
Location Swarzędz Gmina, Greater Poland, Poland Contact: Agnieszka Hips
Avionics ADS-B Equipped Garmin G1000H™ avionics suite Integrated on PFD / MFD Traffic Information System (TIS) Moving Map Fuel and NAV range HTAWS, and Synthetic Vision System
STS Centrum Dystrybucji Samochodów Sp. z o.o. Swarzedz, Poland
100 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Tel: +48 663 792 802 E-mail: agnieszka.hips@clip-group.com
www.AVBUYER.com
P101-104.qxp 24/03/2022 10:35 Page 1
Boeing BBJ
World Trade Enterprises Price:
Please email
Year:
2015
S/N:
61040 / YG143
Reg:
T7-RTX
TTAF:
809
Location: Taiwan
Bombardier Challenger 850
Pavel Ponomarenko
Tel: +7 747 399 68 08 Email: pavel.ponomarenko@avialuxjet.com
$9,500,000 VAT Paid 14 Passengers | 3 Section Cabin Layout | Forward Galley
Year:
2008
S/N:
8093
Reg:
UP-C8503
TTAF:
5200
Ross Farrow Price:
USD $16,400,000
Year:
2020
S/N:
0
Reg:
CS-LTC
TTAF:
75
Location: United Kingdom
Cessna Citation Latitude
Enrolled on Sabena Technics Warranty Program. Maintenance Control: CAMP MTX System. Located RCKH – Kaohsiung City, Taiwan – Hangared. Engines Model: CFM 56-7BE. Engine 1 SN: 660761. Engine 2 SN: 660765. Avionics: FANS1/A+. Pitot-Static System Automatic Direction Finder System (ADFS). Global Positioning System (GPS). Flight Management Computing System (FMCS). Air Data Computing System Air Data Inertial Reference System (ADIRS)
Price:
Location: Kazakhstan
Cessna Citation Latitude
M A R K E Tel: +1 (469) 737 9737, T LLC +1 (310) 634 3453 P L Entry into Service: 2016. Total Cycles: 204. Stage 4 Noise Compliant A 16 Passengers TCAS 7.1. 8 Auxiliary PATS Fuel Tanks - 13 hrs. C endurance with reserves – approx. range 6,000 nm / 11,112 Km. Enrolled on BBJ Components Exchange Program Cabin Equipment. E
Filip Verstringe Price:
USD $3,800,000
Year:
2013
S/N:
0
Reg:
-
TTAF:
3250
Pocket Door | Bulkhead | Jump Seat | Aft Lavatory. TCAS II Change 7.1 Traffic Collision Avoidance System. ELT Emergency Locator Transmitter. EGPWS Enhanced Ground Proximity Warning System. TAWS Terrain Awareness Warning System. Weather Radar. RA Radio Altimeter. 9,739 Landings. Engines: General Electric CF34-3B1. APU: HONEYWELL 3800488-3. 6650 HOURS, 5370 CICLS. Avionics: Flight Management System - FMS Collins FMC-4200 DO-160c. Control Display Unit - CDU Collins. DBU4000, DO160c. Int: Four (4) Place Club Seats
Tel: +44 (0)790 035 7047 Email: farrowross@gmail.com Great aircraft love it to bits, available from May-22. My life plans have changed so no longer need the lease and fractional share on this aircraft from NetJets. As such I need to pass the lease on in full or if you don't need 75 hours I am also happy to share the ownership, my expected flying is 25-30 hours. Please contact for more info if interested. WiFi: Yes
Tel: +32 (0) 467 324 230 Email: F.Verstringe@deutz.aero Total cycles: 2670. Engines: Two rear-fuselage-mounted Pratt & Whitney PW617F-E engines. Avionics: Garmin G1000 Flight Deck. Integrated Electronic Standby Instrument (IESI). Flight Management system panel - GCU 475. TRANSPONDER: Garmin GTX-33 Mode S. Weather radar with 12 inch antenna. Jeppesen ChartView ADS-B Out. ELT KANNAD w/nav interface. Int: Original interior with four passenger leather seats. Non-belted lavatory.
Location: Belgium
Cessna Citation II
Ijet Aviation Price:
USD $900,000
Year:
1980
S/N:
550-0182
Reg:
OH-CHF
TTAF:
8125
Tel: +34 (0) 629 482 424 E-mail: jb@ijet.es Engines P&W JT15D-4 (744 and 812 hrs). Cross weight increase. Medevac STC (lifeport 2 stretchers) year 2020. ADS-B & P-RNAV upgrade year 2020. 3-tube EFIS. Freon air. Under AOC EU OPS. Interior: 8 + 1 Pax configuration VIP. Exterior: 9/10. Additional equipment: Medevac STC 2020 (Lifeport 2 Stretchers)
Location: Finland
www.AVBUYER.com
AVBUYER MAGAZINE Vol 26 Issue 4 2022
101
P101-104.qxp 24/03/2022 10:35 Page 2
M A R K E T P L A C E
BELL 412EMS
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
Bell 430
The Ritchie Group Price:
$1,295,000.00
Year:
1996
S/N:
49010
Reg:
25CL
TTAF:
3,939.0
Location: USA
Tel: +1 (618) 225-7025 E-mail: rodger@jet-transactions.com AVAILABLE FOR SALE OR LEASE. FRESH ANNUAL INSPECTION NOV/2021. FRESH TURBINE OVERHAULS APR/2021. 1-Crew & 7-Pax Leather Interior with Dual Controls. Airframe TT 3,989 Hours. Engines 5,159.5/3,679.8 Hours. Always Hangered, No Damage History. N.A.T. Audio Panels. Garmin GTN-750 NAV/COMM/GPS. Garmin GTX-345R ADS-B Transponder. Radar Altimeter KRA-405. New Interior Installed in 2016: New Decrane 3-Place Aft-Facing Aircraft Seating System. Exterior: Painted in Apr/2011 by B.L.B. Aircraft Painters. Paint Colors: Montana Blue, Silver, Light Charcoal, and then Cleared
www.jet-transactions.com
Bell 505 Jetranger X
Magdalena Karska Price:
USD $1,800,000
Year:
2022
S/N:
65388
Reg:
SP-DLC
TTAF:
0
Location: Poland
MD 500E
Ashley Bell Price:
USD $995,000
Year:
1988
S/N:
0280E
Reg:
ZT-RZZ
TTAF:
1058
Location: South Africa
102 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
Tel: +48 (0) 504 254 707 Email: magdalena.karska@jbi.com.pl Factory new helicopter in a fully loaded corporate configuration with premium interior and high skids, scheduled for delivery begining of March. Special paint color: Phantom Grey Metallic and two tone tan leather seats. Engines: Safran Arrius 2R. Avionics: Garmin G1000NXi Avionics Upgrade (synthetic vision, HTAWS and TAS). Int: SeatsPremium Interior (two tone tan leather). Headliner kit (Beige). Color coordinated carpet. Ext: Phantom Grey Metallic 748864. Bell logo Silver (decal). Additional: High Skid Gear (includes Flitestep). Air Conditioning System. Rotor Brake. Automatic door openers for pilot and co-pilot. Dual pilot controls. Sliding Windows. Frahm Provisions. Frahm Equipment. Ground Handling Wheels. Operator Accessory Package
Tel: +27 836 469 666 Email: ashb3ll82@gmail.com Pristine, privately owned MD500E helicopter with no damage history. This well cared for helicopter is always hangared and flies beautifully. Engines: RR 250-C20B. King KMA24H Audio Panel. King KY 96A VHF. King KR87 ADF. Garmin GTX 330ES ADSB Transponder with Digital Alt Encoder. Garmin GTN 650 GPS/Nav/Comm (Touch Screen). Int: Grey leather seats with interior panels covered in beige leather. Grey carpets. 8.5/10. Ext: White with metallic blue lower fuselage and striping. 8/10. Additional: Dual Controls (Centre Seat & Foot Rest Included). Low Skids. 4 Blade Quiet Tail Rotor. Ground Wheels. Masling Auxiliary Fuel Tank (92 Lt Australian Manufactured/STC). ME406 ELT. Fire Extinguisher. Heater Defogger. Donaldson Barrier Filter
www.AVBUYER.com
P101-104.qxp 24/03/2022 10:35 Page 3
Airbus/Eurocopter EC 120B
HELITACTICA S.A. Price:
Please email
Year:
2001
S/N:
1230
Reg:
ZP-HEC
TTAF:
2685
Location: Paraguay
Airbus/Eurocopter EC 120B
Andrew Leslie Price:
£850,000 No VAT
Year:
2008
S/N:
1565
Reg:
G-IAGL
TTAF:
1078
Location: United Kingdom
Airbus/Eurocopter EC 120B
Heli Support
compleated on July/2021. Huge investment on several items. - Original Fuel flow meter, an expensive optional. Gives range in distance and flight time. - Price includes annual inspection and Export COA at the time of delivery. Seller is a Part 135 Operator and a Part 145 Maintenance Facility. In 2021 installed the best avionics available on the market: - Latest Garmin double 7” portrait screen G500HTxi (pilot and copilot). - GTN750HTxi with remote audio and transponder.
Tel: +44 (0)771 040 2980 E-mail: andy.leslie@network-airline.com Truly immaculate privately owned helicopter which I have owned for the last eight years. Only 1078 hours since new. 12 year check including full bare metal respray by Edmondson Aviation carried out in 2020. VIP grey leather interior. Full floats which have just been fully serviced. Helicopter will be delivered fresh from 12/24 month check. This helicopter is absolutely perfect and has been maintained by A2B at Shorham since 2013. Further photos, video and full status report on hours, cycles, life limited parts etc available on request. This helicopter is like new in every respect. Please don't hesitate to call or email me for any other pertinent information. No VAT applicable.
Tel: +32 (0) 476 463 855 Email: frank@helisupport.be
Price:
€800,000 Excl. VAT Beautiful well maintained EC120 located in Belgium. Allways
Year:
2002
S/N:
1324
Reg:
N263CP
TTAF:
1280
Location: Belgium
Airbus/Eurocopter AS 355F-2
M A R K E Tel: +1 595 9766990111 T E-mail: alexandre@helitactica.com.py P L Engine currently on Safran SBH Program. In 2021 the 15-Years A inspection was executed at Safran, and several new components were C installed. - Completely redesign: new leather interior, new carpets, new airframe exterior and interior paint, all new windshield and side E windows. Bose stereo connection. - 12-year airframe inspection
Lachie Jones Price:
Make offer
Year:
1991
S/N:
5504
Reg:
ZK-HMQ
TTAF:
4900
hangared, all AD's complied with - in-depth 12 years inspection complied with in 2015 - engine 15 years inspection performed by TUAG in 2020 - beautiful paint job VIP interior - very well equipped!! Airframe: 12 years inspection complied with in 2015 to a high standard - no costs saved! Engines: 15 years inspection carried out by TUAG Switzerland - SAFRAN service center. Avionics: 1x LCD VEMD Garmin Apollo MX20 (Vehicle and Engine multi-function Display). 1x Garmin Aera 795 | 1x Auto Pilot on 2 Axis. 1x Warning panel. 10/10 VIP interior. 10/10 superbe paint job!
Tel: +64 21 44 08 19 Email: lachlan@coreaviation.co 1991 AS355 F2 - Twin Squirrel F2 in excellent condition 5/6 place VIP configuaration Camera mounting provisions Call for runouts and more info Well priced light twin We can assist with packing/shipping
Location: Australia & NZ
McDonnell Douglas 902 Explorer
DynamicPitch Ltd Price:
Make offer
Year:
2007
S/N:
900-00121
Reg:
G-HMDX
TTAF:
3600
Location: United Kingdom
www.AVBUYER.com
Tel: +44 (0)794 359 1121 Email: bobby@dynamicpitch.net This distinctive looking, later serial number MD902 Explorer helicopter is in excellent condition and ready to fly. The aircaft can be specified, painted or modified to the new owners exact specification. A Spares package and ongoing maintenance/spares support is also available. PWC PW207E Engines. Single Pilot, Category A IFR Certified. NVIS Certified. Utility / Air Medical Interior. The MD902 Explorer posseses No Tail Rotor (NOTAR) Technology, an ultra smooth rotor system with plenty of ground clearance, spacious cabin, and powerful Pratt & Whitney engines. All resulting in a supremely capable and cost effective helicopter. The true definition of a multi-role helicopter, this MD902 Explorer is a worthy addition to your helicopter fleet.
AVBUYER MAGAZINE Vol 26 Issue 4 2022
103
P101-104.qxp 24/03/2022 10:35 Page 4
M A R K E T P L A C E
Tel: +44 (0)7859 306 4891 Email: tony@nononsenseaircraft.com
Anthony Haddley
Embraer Legacy 650
Price:
USD $16,400,000
Year:
2014
S/N:
TBA
Reg:
TBA
TTAF:
900
Location: Singapore
Cessna Grand Caravan EX
Low hours Legacy 650, as close to a new aircraft as possible. RR corporate care. COMMS PACKAGE. One of the most comprehensive global communications packages installed in a private corporate aircraft. Immediate availability. PRICE $16.4M FIXED PRICE. FUNDING PACKAGES AVAILABLE. FAA REGISTERED, FAA TO EASA = SIMPLE PROCESS. WE WILL NEED TO SEE CREDENTIALS BEFORE WE GIVE ANYTHING OUT - APOLOGIES IN ADVANCE - WE ARE SERIOUS TO SELL - WE WANT TO DEAL WITH A QUALIFIED MOTIVATED BUYER OR MANDATED BROKER ONLY THANK YOU
Tel: +386 40 86 04 70 E-mail: gasper.kralj@flycom-aviation.si
Flycom Aviation d.o.o. Price:
Make offer
Year:
2019
S/N:
208B-5504
Reg:
S5-CIK
TTAF:
910
Location: Slovenia
Type of engine: PT6A-140 (867 SHP). Total time engine: 910:45 hrs TTSN. Cycles: 579. CAMO: YES (CAMP system). Programs: ProParts program. Interior: Canyon Group Scheme (The high contrast black and khaki of Canyon). Configuration: 11 Place Commuter Seating. Exterior: Standard Cessna Blue and white. Anti-ice system: YES (TKS fluid). Avionics: G1000 NXi. Weather radar: YES (GWX70 Weather Radar). Propeller: McCauley 4-Blade Propeller. Air-condition: YES. Oxygen system: YES (17 port). Tires: Oversized Tires, 29". MTOW: 8.807 lbs. MLDGW: 8.500 lbs. Damage history: NO. Avionics: Garmin TAS. C406-N ELT. KR-87 ADF. TAWS-B Jeppesen Chart View. GTX 345 TransponderInt: Canyon Group Scheme (The high contrast black and khaki of Canyon). Ext: Standard Cessna Blue and White.
Tel: +43 (0) 664 25 34 874 Email: office@aerial.at
Leopold Reidinger
Agusta AB206
Price:
Please email
Year:
1976
S/N:
-
The engine is not for sale, but all other pieces are completely available
Reg:
OM-XRC
All parts will be delivered with form one
TTAF:
9000
WiFi: Yes
We are parting out our helicopter Augusta Bell 206
Location: Austria
Tel: +1 (754) 666 2997 Email: Seanethan@leeaviation.com
Sean Lee
Agusta A109C Price:
USD $750,000
Year:
1991
S/N:
7638
Reg:
N568CS
TTAF:
1206
Location: USA & + Canada
Aircraft Spare Parts Wheels, Starters, Brakes, etc. Outright and Exchange
Beautiful Helicopter, Well maintained for an unbeatable price. Very low hours and hanger kept. This will not last long. Dual garmin 650's Auxiliary fuel tanks, hinged cabin & cockpit doors w/open door actuators, retractable tricycle-type landing gear, quick-disconnect chip detectors, 27-amp/hour battery, fuel drain electric valve, exterior baggage, rotor brake, fire extinguisher. Airframe: 2,564 Landings. Engines: Model 250-C20R1 (3,500 TBO). Left Right 1,201.6 TT 1,201.6 TT 1,572 CYC 1,572 CYC. Avionics: Dual Garmin 650
Par Avion Ltd FALCONS • HAWKERS • LEARS
Cessna, Learjet, Hawker, Westwind, Falcon, Gulfstream, Global Express
Manufacturer of Select GSE & Speciality Tooling Tire Inflation Cage, Hydraulic Wheel Dolly, Lav Cart Brake Bleed Kits, O2 & N2 Single Bottle Carts, Socket Kits Mobile A/C Cart, Oxygen Fill Adapter, Jack Adapters Preowned GSE also available
www.AlberthAviation.com 104 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.paravionltd.com SALES • ACQUISITIONS • CONSULTING
Buy * Sell * Trade
832-934-0055 www.AVBUYER.com
SAVE THE DATE FOR EBACE2022 EBAA and NBAA are looking forward to welcoming back the business aviation community for the European Business Aviation Convention & Exhibition (EBACE2022). This is the perfect venue for investors considering aviation as a business opportunity; companies thinking of using an aircraft for business; and flight departments who have long used aircraft as a valuable business tool. A full slate of exhibiting companies have already confirmed their plans for participation in this year’s event, so be sure to save the date and make plans to join your industry colleagues in Geneva from Monday 23 May to Wednesday 25 May.
LEARN MORE | ebace.aero
P106 AIRCRAFT INDEX.qxp 24/03/2022 12:06 Page 1
Aircraft For Sale • AIRCRAFT • HELICOPTERS
AIRCRAFT
PAGE
AIRBUS A318 Elite . . . . 5 A319 VIP . . . . . 5
BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . 101, 108 BBJ MAX8 . . . . 41 737-700 . . . . . . 5, 7, 10 787-8 . . . . . . . 5 787-9 . . . . . . . . 108 787-9 VIP . . . . . 108
BOMBARDIER Global 5000 . . . 108 Global 6000 . . . 108 Global 6500 . . . 69 Global 7500 . . . 71 Global Express XRS. .14, 108
AIRCRAFT
. . . . . . . . . 39, 69, 108 . . . . . . . . . 69 . . . . . . . . . 108 . . . . . . . . . 101, 108
Learjet
45XR . . . . . . . . 22 60 . . . . . . . . . . 69 75 . . . . . . . . . . 108
CESSNA Citation
II . . . . . . . . . . . 101 XLS . . . . . . . . . . 22, 108
AIRCRAFT
XLS+ . . . . . . . . . 97 CJ3 . . . . . . . . . 108 CJ4 . . . . . . . . . 11 Bravo . . . . . . . . 39 Conquest . . . . . 22 Excel . . . . . . . . 69 Jet . . . . . . . . . . 39 Latitude . . . . . . 101 Mustang . . . . . 25 M2 . . . . . . . . . . 35 Sovereign . . . . 31 172R . . . . . . . . . 35 182T Skylane . . 35 Ultra . . . . . . . . 39
HAWKER BEECHCRAFT King Air
B200 . . . . . . . . 97 350 . . . . . . . . . 97 350i . . . . . . . . . 31 C90GTi . . . . . . 97
Beechcraft
1900D . . . . . . . 25
DASSAULT FALCON
Hawker
800XP . . . . . . . 39, 97 900XP . . . . . . . 97 4000 . . . . . . . . 17, 57
PAGE
HELICOPTERS AIRBUS/ EUROCOPTER AS 355F-2 . . . . 103 EC 120B. . . . . . 25, 97, 103 EC 135T2 . . . . . 97
AGUSTAWESTLAND AW109E Power . 10 AW109S. . . . . . .108
BELL 206 . . . . . . . . . 10 212 . . . . . . . . . 102 412EP . . . . . . . 97 412EMS . . . . . . 102 430 . . . . . . . . . 102 505 Jet Ranger X. .100, 102
MCDONNELL DOUGLAS 902 Explorer . . 103 500E . . . . . . . . 102
PIAGGO P180 EVO Avanti . . 107
EMBRAER Legacy 450 . . . 10 Legacy 500 . . . 27 Legacy 650 . . . 108 Phenom 100 . . 39 Phenom 300 . . 97, 108
AIRCRAFT
GULFSTREAM
CIRRUS
7X . . . . . . . . . . 31 50-40 . . . . . . . . 107 900EX EASy. . . 14, 107 900LX . . . . . . . 108 2000 . . . . . . . . 11, 31 2000EX . . . . . . 41
PAGE
IV . . . . . . . . . . . 69 IV SP . . . . . . . . 97 V . . . . . . . . . . . 97, 107 450 . . . . . . . . . 97 550 . . . . . . . . . 15, 41, 97 650 . . . . . . . . . 5, 6, 8, 108 650ER . . . . . . . 69
SR20 G3. . . . . . 35 SR20 GTS. . . . . 35 SR22 . . . . . . . . 35
Challenger 300 350 650 850
PAGE
PILATUS PC-12 NG . . . . 11
SOCATA TBM 850 . . . . . 39
Advertiser’s Index 1st Source Bank .........................................53
Dassault Falcon Pre-Owned ................. 2 - 3
IADA ...........................................................98
Action Aviation ........................................... 71
Duncan Aviation ................................ 22 - 23
Jetcraft Corporation.................... 18 - 19, 108
AeroBuyNow.............................................. 25
EBACE .....................................................105
JetHQ ....................................................... 29
Aero LED ....................................................85
Eagle Aviation............................................ 35
JETNET ..................................................... 99
Assent Aeronautics.....................................64
ElliottJets .................................................. 39
Jet Values ...................................................65
Aircraft Blue Book ......................................65
Engine Assurance Program....................... 21
More&Company..........................................89
Aradian Aviation ........................................ 97
Flight Safety International...........................75
NBAA-EBACE ..........................................105
ATP.............................................................85
Freestream Aircraft ....................................41
OGARAJETS............................................. 27
Avpro ........................................................ 69
General Aviation Services ......................... 31
Pratt & Whitney.......................................... 81
Bombardier .................................................83
GE Aviation................................................ 49
San Marino Registry .....................................1
Central Business Jets ............................. 107
Global Jet Capital ..................................... 51
Sparfell & Partners ............................. 10 - 11
Clip Aviation .............................................100
Global Jet Monaco ................................. 5 - 8
The Jet Business................................ 14 - 15
Concorde Battery ...................................... 77
Gogo Business Aviation............................. 93
The Private Jet Company .......................... 57
C&L Aerospace...........................................45
Hatt & Associates ...................................... 17
VIP Completions.........................................59
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 2022, Vol 26 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 672033517. 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.
106 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
www.AVBUYER.com
CBJ April.qxp_CBJ November06 24/03/2022 11:28 Page 1
General Offices
Germany Office
Minneapolis / St. Paul
TEL: +49 151 15295243
TEL: +1 (952) 894-8559
E-MAIL: julian@cbjets.com
FAX: +1 (952) 894-8569 E-MAIL: INFO@CBJETS.COM Chicago TEL: +1 708 803-0004 Email: George@cbjets.com
Falcon 50-40 SN25
2018 Piaggio P180 EVO Avanti
COLLINS PROLINE 21 AVIONICS PACKAGE, AGT-5000 GoGo WIFI, Extended Altitude S.B. 49,000 FT capable, 3rd Collins VHF, Baker LCD Cabin Control System w/ 10 Panels, One 15” LCD Monitor, Artex ELT w/ NAV Interface, XM Weather, Baker Cabin Video System (4 ea. 5.6” Slim Line Plug in Monitors), Fire blocked foam with Fabric Protection
Manufacturer’s Warranties, ADS-B Out, Electronic Charts, Maps Overlay, TCAS II 7.1, XM Satellite Weather, SBAS / LPV Capability, Anti-skid braking system, GoGo Avance L5 WIFI w/ Text & Talk
Gulfstream V
Falcon 900EXy SN153
US Ownership History and Off Market Opportunity; plane will be actively for sale in April
Single US Owner with over 50 Years of Falcon Jet History
Aircraft wanted: Gulfstream G280 • Falcon 2000LXS • Gulfstream G550 Falcon 7X • Falcon 2000EXy
www.cbjets.com
The smoothest connection to your next aircraft.
2014 BOMBARDIER LEARJET 75 S/N 45-491 • 1,611 Hours; 1,083 Landings • SwiftBroadband • Engines Enrolled on JSSI 100%
A passionate team of aviation experts, our strategic approach and action-oriented thinking have made us the global leader for aircraft sales and ownership services. With our worldwide network and inventory, industry connections and regional presence, we are the difference between getting an aircraft… and getting your aircraft.
2011 EMBRAER LEGACY 650 S/N 14501142 • 2,798 Hours; 1,474 Landings • Engines Enrolled on RRCC • Fresh 96 Month Inspection
2013 BOEING BBJ S/N 38408
ALSO AVAI L ABL E
• 2,438 Hours; 621 Landings • 8 Auxiliary Fuel Tanks • Collins VENUE CMS
2016 BOMBARDIER GLOBAL 6000 S/N 9704
2006 CITATION XLS
2008 AGUSTA AW139
2013 CITATON CJ3
2019 AIRBUS ACJ330-200
2006 GLOBAL 5000
2015 BOEING 787-9 VIP
2015 GLOBAL 6000
2015 BOEING 787-9
2011 GLOBAL XRS
2008 CHALLENGER 300
2013 FALCON 900LX
2012 CHALLENGER 850
2017 LEGACY 500
2018 CHALLENGER 650
2014 GULFSTREAM G650
• 747 Hours; 248 Landings • Fresh 60 Month Inspection • Available for Viewings in Dubai File Photo
2013 EMBRAER PHENOM 300 S/N 50500133 • 2,215 Hours; 1,868 Landings • 7 Pax Configuration + Belted Lav • Fresh Level II Pre-Purchase Inspection
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
2006 AGUSTA AW109S
I N FO @ JETC RAF T. CO M
4-2022_AVBuyer_Back Cover_Smoothest Connections_2.indd 1
+ 1 9 1 9 9 4 1 8 4 00
Use the QR code or visit Jetcraft.com/Inventory to view our full list of available aircraft.
J ETC R AF T. CO M
3/16/22 8:00 AM
