AvBuyer Magazine August 2020

FC Aruba August 2020 - 1.qxp_FC December 06 23/07/2020 09:57 Page 1

Volume 24 Issue 8 2020

â„¢

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

See pages 68 & 69 for further details

THIS MONTH www.AVBUYER.com

Helicopter Comparison: Leonardo AW119 Kx vs Bell 407 GXi vs Airbus H125 Urban Legends When Buying & Selling Aircraft

AV-Cover 2020 2020.indd indd 1

The Top Cabin Management Systems for Retrofit What Your Charter Money Buys Today

06/07/2020 14:20

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Editor Welcome.qxp_JMesingerNov06 21/07/2020 09:33 Page 1

Guest Editor’s VIEWPOINT Neil Book, JSSI

Transparency Will Drive the Business Aviation Recovery

B

usiness Aviation and data transparency have unfortunately not always gone hand-in-hand. A paradigm shift is absolutely necessary for the long-term health of our industry.

In 2019, Bloomberg reported on wide-ranging billing abuses for private jet users, with severe cases of overcharging on items ranging from two tons of unused aircraft fuel to a $5,000 bill for catering on an empty leg.

The centralization and sharing of accessible data will result in educated, satisfied and repeat customers.

Ensuring users are fully informed on costs through the democratization of data has never been more important than right now during the COVID-19 recovery period. Until there is a highly effective treatment or vaccine for COVID-19, we will continue to see significant changes in how business jets are utilized.

The largest demographic of business jet owners are males over the age of 60, who now fall into a “high-risk” group and are likely to reduce their travel frequency in the short term.

At the same time, we are seeing a number of new users migrating from scheduled airline travel to a range of Business Aviation options to reduce their risk of exposure to the virus. These newcomers will be essential to the health of the industry. They will also come with fresh expectations.

Our Responsibility

Approximately 10% of private aircraft owners and users are aviation experts. The remaining 90% have limited industry knowledge and therefore depend heavily on third-party advice and guidance throughout the aircraft utilization process. It is, therefore, our responsibility as an industry to develop solutions that enhance transparency for Business Aviation users, and much of this will be enabled by greater cooperation.

Although the big data analysis that airlines perform to drive operations is not feasible in the private aviation sector, many innovative solutions do exist that could greatly improve clarity through centralized databases, benchmarking, actual cost data, industry standards, and analytics.

At JSSI, we and our portfolio of companies (including Conklin & de Decker and Tracware) are rolling out digital tools to help customers research, compare, and modify aircraft costs, performance, and specification data in more detail than ever before. MRO software is also available to centralize all maintenance functions, data, and business processes in one application.

Cloud-Based Efficiency

There is a general shift among OEMs, MROs, and operators towards cloud-based infrastructure, which is driving further efficiencies.

Openness and transparency allows customers to make informed decisions with clearly defined and well-managed expectations. It means they have a better experience and are likely to keep coming back as loyal customers. An estimated $32bn is spent annually on aircraft services, maintenance, and fees for 22,000 Business Aviation aircraft worldwide.

COVID-19 may have changed aviation forever, but early indications show not only that existing owners are keeping their aircraft, but new users are recognizing the attraction, efficiency, and control of flying privately.

To ensure the industry can recover and thrive, all of us will need to work together to share information and collaborate in entirely new ways.

Transparency will not only level the playing field, it might also widen its boundaries.

I hope this pandemic has reinforced for all of us that every customer is critical and should never be taken for granted.

More information from www.jetsupport.com ❙

As President and Chief Executive Officer, Neil Book provides leadership and direction to JSSI. Prior to joining, Book served as Vice President of Mobility for Juniper Networks, directing its mobile security business unit.

4 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

www.AVBUYER.com

EXCLUSIVELY FOR SALE

BOMBARDIER GLOBAL 6000

DASSAULT FALCON 2000LX

BOMBARDIER GLOBAL XRS

DASSAULT FALCON 900DX EASY

BOMBARDIER GLOBAL 6000

DASSAULT FALCON 7X

BOMBARDIER GLOBAL 6500

AIRBUS A318 ELITE

BOEING BBJ2

AIRBUS A319 VIP

GULFSTREAM 650ER

BOMBARDIER CHALLENGER 300

GULFSTREAM 650

CESSNA C*5"5*0/ $J3

2013 / SN 9559 BEST BUY ON THE MARKET / USD $24.50M

2008 / SN 9252 ASKING PRICE / USD $13.00M

2015 / SN 9701 ASKING PRICE / MAKE OFFER

Q2 / 2020 NEW TO MARKET / USD $49.50M

2018 / SN 42510 ASKING PRICE / USD $75.00M

2014 / SN 6100 ASKING PRICE / USD $43.90M

2014 / SN 6095 BEST BUY ON THE MARKET / USD $39.50M

3D & TECHNICAL DETAILS AVAILABLE HERE

Inventory_2020.indd 1

2010 / SN 196 NEW TO MARKET/ USD $11.95M

2008 / SN 619 ASKING PRICE / USD $12.25M C Check just completed

2011 / SN 118 PRICE REDUCED / USD $21.75M

2007 (DELIVERED 2008) / SN 3100 ASKING PRICE / USD $20.90M

2008 (DELIVERED 2011) / SN 3542 ASKING PRICE / USD $42.00M

2012 / SN 20382 PRICE REDUCED / USD $9.75M

2008 / SN 234 NEW TO MARKET / MAKE OFFER

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:06

DASSAULT FALCON 2000LX 2010 / SN 196 NEW TO MARKET / USD $11.95M

EASA COMPLIANT / MOTIVATED SELLER AIRFRAME HOURS / 2693 AIRFRAME CYCLES / 1360 CAPACITY / 10 PAX

VIDEO & TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 1

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:14:42

DASSAULT FALCON 7X

2011 / SN 118 PRICE REDUCED / USD $21.75M

EASA COMPLIANT AIRCRAFT WITH LOW HOURS AIRFRAME HOURS / 2113 AIRFRAME CYCLES / 1020 CAPACITY / 12 PAX

3D & TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 2

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:15:57

Project1_Layout 1 22/07/2020 12:18 Page 1

DASSAULT FALCON 900DX 2008 / SN 619 ASKING PRICE / USD $12.25M

C CHECK JUST COMPLETED / BEST OPPORTUNITY TO BUY AIRFRAME HOURS / 4277 AIRFRAME CYCLES / 1843 CAPACITY / 14 PAX

3D & TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 3

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:01

GULFSTREAM 650

2014 / SN 6095 PRICE REDUCED / USD $39.50M

DELIVERED & OPERATED BY GLOBAL JET SINCE NEW- «BUY FROM THE OPERATOR» AIRFRAME HOURS / 2701 AIRFRAME CYCLES / 840 CAPACITY / 14 PAX

TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 4

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:06

BOMBARDIER GLOBAL 6000

2013 / SN 9559 BEST BUY ON THE MARKET / USD $24.50M

EXCELLENT AIRCRAFT ORIGINALLY SOLD BY GLOBAL JET TO A HIGHLY DISCERNING OWNER AIRFRAME HOURS / 1823 AIRFRAME CYCLES / 753 CAPACITY / 15 PAX

TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 5

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:12

BOMBARDIER GLOBAL XRS 2008 / SN 9252 ASKING PRICE / USD $13.00M

DISCERNING OWNER & EASA COMPLIANT AIRFRAME HOURS / 3273 AIRFRAME CYCLES / 1193 CAPACITY / 13 PAX

TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 6

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:18

CESSNA CITATION CJ3

2008 / SN 234 NEW TO MARKET / MAKE OFFER

EASA COMPLIANT AIRFRAME HOURS / 4610 AIRFRAME CYCLES / 3387 CAPACITY / 8 PAX

3D & TECHNICAL DETAILS AVAILABLE HERE

AV_BUYER_August 2020 Folder.indd 7

GLOBALJETMONACO.COM

T +377 97 77 0104 aircraftsales@globaljetmonaco.com

15.07.2020 15:16:23

Sean - RIP.qxp_Layout 1 23/07/2020 09:51 Page 1

Sean O’Farrell

It is with deep sadness that AvBuyer announces the death of Sean O’Farrell. Sean was a friend, mentor and colleague, and co­founded the company with John Brennan in 1995. Initially, he served as Publisher and Editor before stepping back to enjoy semi­retirement.

He remained on the AvBuyer team as Consulting Editor until his death on July 6, 2020, aged 83.

“Sean was someone I have known for over 30 years and have worked with for 25,” said John Brennan, Managing Partner, AvBuyer. “He was a dear friend as well as a colleague, and at one time a partner in the company we started together.

“Sean will be particularly missed at shows and events where he was a fabulous ambassador for the company and was known and liked by scores of people in the industry,” John continued. “In fact, we have had many emails from people who – on learning of his passing – have felt the need to get in touch and express their sadness. Sean was a great friend and colleague and will be deeply missed by us all at AvBuyer. We are still coming to terms with him no longer being around.

“He was someone who was liked and respected by all he met, and he was great fun to be around. He was always ready with a quip or comment which often put things in perspective or had us all laughing.”

At the news of Sean’s passing, he was described by industry peers as a “gentle giant” and “!ine gentleman”.

His outgoing, cheerful personality won him many friends and he was held in high regard.

He thrived on travelling to the leading trade events right up to (and including) NBAA­BACE 2019, and he relished the opportunity to meet with old friends and new. His enjoyment and dedication to the Business Aviation industry remained strong to the end.

“Sean made a signi!icant impact in shaping my editorial career, having originally taken a chance on me right after graduating from University in 2000. For that, I will always be grateful,” Matt Harris, Commissioning Editor, said. “He was more than a boss, Sean was a mentor and a friend.

“He always had time to talk about professional and personal matters and took an active interest in the lives of his colleagues.

Sean had a mischievous sense of humour, and the 20 years I’ve had the privilege of knowing him have been peppered with laughs and smiles.”

Sean was a truly unique character who cannot be replaced, and he leaves a lasting memory with those who knew him. Quite simply, he was a central part of AvBuyer and he’ll be deeply missed.

Contents Layout MAY20.qxp 23/07/2020 08:40 Page 1

Vol.24 Issue 8

20

Contents

2020

4

44 50 54 64

Guest Editor

Neil Book, JSSI

Market Indicators

Trends and Observations from Leading Business Aviation Analysts

Charter

How to Pick the Right Jet Card What Does it Cost to Charter a Business Aircraft?

Helicopter Comparision

Leonardo AW119 Kx vs Bell 407 GXT vs Airbus H125

Buying & Selling

How to Work With an Aircraft Dealer or Broker

70

Urban Legends When Buying and Selling Aircraft

74

Why Buy-Sell Aircraft Transactions are Necessary

78

Tips for Avoiding Buyer’s Regret

84

Buying & Selling Jets: Using a Broker’s Network

86 90

Aircraft Price Guide

Turboprop Aircraft Values

Flight Department Management Get More From Supplemental Lift

EDITORIAL Commissioning Editor Matthew Harris +44 (0)20 8939 7722 editorial@avbuyer.com Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com ADVERTISING Steve Champness - Publisher Americas 770 769 6872 Steve@avbuyer.com Matt Chappell - Account Manager US & Canada Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 MattC@avbuyer.com Lise Margin - Account Manager US Aircraft Sales +1- 703 818 1024 lise@avbuyer.com Maria Brabec - Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com UK Head Office +44 (0)208 549 9508 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0)20 8939 7726 helen@avbuyer.com mark@avbuyer.com

94

How Operators and Trip Support Services are Evolving

98

Avionics The Best Way to Upgrade Your Cabin Avionics (Part 2)

CIRCULATION Sue Brennan +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 sue@avbuyer.com

What are the Top Cabin Management Systems for Retrofit?

AVBUYER.COM Jayne Jackson jayne@avbuyer.com

Connectivity

Emma Davey emma@avbuyer.com

106

112

What to Know When Hiring Out Your Jet

Community News

116

OEM News and Industry Appointments

121

Showcases

124

Marketplace

129

Advertisers Index

130

Aircraft for Sale Index

Next Month

• Should you Buy a Jet or Turboprop?

• Building Your Budget to Upsize Your Jet • What’s the Worth of a Top End Interior?

14 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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

GLOBAL XRS

S N 9391

GULFSTREAM G450

CHALLENGER 350

SN 4308

S N 2 0 52 2

CHALLENGER 601-3A

FALCON 900EXy

S N 5116

S N 5 3 71

GULFSTREAM G200

SN 226

CHALLENGER 300

FALCON 8X

SN 31

S N 2 01 02

S N 406

HAWKER 800XPi

SN 135

CITATION SOVEREIGN

GULFSTREAM G550

LEARJET 45XR

S N 2 5 8699

S N 3 87

INFO@AVPROJETS.COM WWW.AVPROJETS.COM 900 Bestgate Road, Ste. 412 l Annapolis, MD 21401 l (410) 573-1515

2 0 0 6 Fa l co n 2 0 0 0 E X E ASy s /n 8 9

NEW LISTING

AIRCRAFT SALES & ACQUISITIONS

4,077 Total Time. 2019 Paint. Winglets. EASy II+.

WAAS/LPV. ADS-B Out. FANS 1/A+/CPDLC. 1C & 2C Completed At Duncan Aviation.

www.DuncanAviation.aero/aircraftsales 1 9 9 2 C i t a t i o n V s /n 5 6 0 - 0 1 76 NEW LISTING

Acquisitions In Search Of Falcon 50EX: Late Model, Low Time, On Programs, ProLine 21

4,375 Total Time. JSSI. CASP. Dual GTX3000 ADS-B In/Out. UNS-1LW with WAAS/LPV. 9 Passenger.

2 0 0 8 C i t a t i o n M u s t a n g s /n 5 1 0 - 0 1 2 0

Global XRS: 2009 or Later, 120-Month Completed

REDUCED PRICE

Legacy 600 Legacy 600 Falcon 900EX Citation Sovereign+

2,539 Total Time. Engines on PowerAdvantage Plus. Duncan Aviation Owned, Operated, & Maintained Since New.

2 0 0 9 L e a r j e t 4 5 X R s /n 4 0 3

Duncan Aviation has been assisting companies around the world with the sales and acquisition of aircraft for 60 years.

World AvBuyer Ad 7_15_20.indd 2

4,234 Total Time. One Owner. Duncan Aviation/ Bombardier Maintained. MSP. WAAS/LPV. Wichita-based.

7/7/2020 12:39:22 PM

COMING SOON

2 0 0 5 G l o b a l 5 0 0 0 s /n 9 1 4 0

•

Challenger 300 & 604

2 0 0 4 G u l f s t re a m G 4 0 0 s /n 1 5 3 0

NEW LISTING

3,233 Total Time. Fresh 180-Month. Batch 3.4 Software Upgrade. PRNAV. RNAV. RNP Capable. WAAS/LPV. ADS-B. TCAS 7.1. FANS/CPDLC.

2 0 1 6 L e a r 75 s /n 4 5 - 0 5 3 3

4,857 Total Time. Two Owners Since New. U.S. Based & Maintained. CorporateCare. MSP. 14 Passenger.

2 0 1 5 E c l i p s e 5 5 0 s /n 5 5 0 -1 0 0 1 NEW LISTING

788 Total Time. Warranty 3/2021. Garmin Vision Flightdeck.

Sat Data-Link/Weather. ATG-5000 WIFI. One US Owner.

2 0 0 1 H aw ke r 8 0 0 X P s /n 2 5 8 5 1 8

One U.S. Owner Since New. ADS-B. Wi-Fi ATG-4000.

MSP Engine & APU. Servie Center Maintained.

2 0 0 9 C h a l l e n g e r 6 0 5 s /n 57 8 0

REDUCED PRICE

348 Total Time. Operational 2018. Engines on ESP. ADS-B Out Enabled. Autothrottles. Sixth Seat Option.

2 0 1 6 C i t a t i o n X L S + s /n 5 6 0 - 6 2 0 6

550 Total Time. Engines on PowerAdvantage+. ADS-B. SwiftBroadband (Aviator 300) Internet w/ Wi-Fi. Hangared.

2 0 0 9 C i t a t i o n C J 3 s /n 5 2 5 B - 0 3 3 1 REDUCED PRICE

1,507 Total Time. Fully Programmed. ADS-B Out. WAAS/ LPV. FANS 1/A. CPDLC. TCAS 7.1. Proline 21 Advanced.

World AvBuyer Ad 7_15_20.indd 3

2,610 Total Time. Tap Elite Engine Program.

ADS-B Out. Two U.S. Midwest Owners Since New.

7/7/2020 12:39:55 PM

1 9 9 3 C h a l l e n g e r 6 0 1 3 A / E R s /n 5 1 2 8

REDUCED PRICE

A LONG-TIME DUNCAN AVIATION MAINTENANCE CUSTOMER HIRED OUR AIRCRAFT SALES AND ACQUISITIONS TEAM TO PERFORM MARKET RESEARCH AND FIND A LATE-MODEL AIRCRAFT WITH LOW FLIGHT TIME AND A CABIN THAT HAD PLENTY OF SHOULDER ROOM.

3,755 Total Time. ADS-B Out. WAAS/LPV. GE OnPoint.

-150 APU on MSP. HAPP. Extended Range Fuel.

2 0 0 8 Fa l co n 7 X s /n 3 3

2,047 Total Time. U.S. Ownership. Excellently Equipped. Ready To Be Placed In Operation.

2 0 1 4 E m b ra e r P h e n o m 1 0 0 E s /n 3 2 9

1,300 Total Time. Belted Lav. MZFW & MTOW Increase.

Enhanced Take-Off and JSSI Pro Rata.

1 9 9 8 H aw ke r 8 0 0 X P s /n 2 5 8 376

IN ORDER TO STAY WITHIN THE PRICE RANGES, OPERATIONAL COSTS OF OWNERSHIP, AND PERFORMANCE PARAMETERS THE CUSTOMER WANTED, WE DETERMINED HE SHOULD FOCUS ON A FALCON 2000LX. AFTER AN EXTENSIVE MARKET SEARCH WE FOUND THE APPROPRIATE ONE IN THAILAND. WHEN THE SALE CLOSED, THE NEW OWNERS ELECTED TO HAVE DUNCAN AVIATION ADD FANS 1/A, RECONFIGURE AND REFURBISH THE INTERIOR, AND PAINT THE EXTERIOR.

REDUCED PRICE

Spacious 6 Passenger Configuration. ADS-B. MSP. Interior Updated in 2014.

World AvBuyer Ad 7_15_20.indd 4

READ OUR CASE STUDIES: www.DuncanAviation.aero/expert-resources

7/7/2020 12:40:26 PM

MarketIndicators AUG20.qxp_Layout 1 21/07/2020 15:22 Page 1

MARKET INDICATORS

Business Aviation Market Overview Though impacted deeply by the COVID-19 crisis, Rollie Vincent sees no evidence for widescale panic among aircraft owners looking to offload their assets (per the Great Recession).

Instead, owners are taking the opportunity to press the ‘Great Big Pause’ button…

T

here is a saying that goes something like this: “If it looks like a duck, swims like a duck, and has feathers and webbed feet like a duck, it just might be a Black Swan”.

Most of our colleagues in the Business Aviation community have probably long since labeled 2020 as the ‘Year of the Asterisk’. Entering the seventh month of the most disruptive year yet for our industry, analysts from Arlington to Zurich and their leadership teams are still trying to develop mitigation and recovery plans in the face of the deep and lingering impacts of COVID-19.

In many ways and for many industry participants, 2020 began much like other recent years. After January’s typically slow start (as customers and suppliers came off the year-end rush), February followed with a relatively good performance.

20 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

In fact, the JETNET iQ Market Sentiment indicator, measuring the optimism of the aircraft owner/operator community, was up 9% in Q1 2020 after declining steadily for six consecutive quarters. All was well – or so it seemed.

In March, the wheels fell off the industry’s landing gear.

Since mid-March, we may not have realized it but most of us have been trying to figure out what to do with our GBP [not the Pounds Sterling in our pocket, but rather The Great Big Pause].

If there is anything that can simply describe what has happened to business travel, by private aircraft but especially on commercial airliners, it is ‘gone quiet’ and in some cases very quiet.

Utilization of business aircraft reached a low point in April 2020, off by 75-80% by some measures on a Year-over-Year www.AVBUYER.com

MarketIndicators AUG20.qxp_Layout 1 21/07/2020 15:22 Page 2

AVBUYER.com With 35+ years in the aviation industry, Rolland Vincent, president, Rolland Vincent Associates (RVA) has served as a trusted consultant at Textron, Bombardier and ICAO in various roles in strategy, marketing, business development, aviation economics and aviation statistics. Identifying a need for enhanced insights into the state of the business aviation marketplace, Rolland Vincent Associates partnered with JETNET in 2010 to create JETNET iQ. Mr Vincent is chair of the Transportation Research Board’s Standing Committee on Light Commercial and General Aviation, and is president, RVA, a consultancy focused on aviation market research, strategy, and forecasting. Contact him via rvincent@rollandvincent.com

TABLE A BOMBARDIER CESSNA EMBRAER CL350 CITATION XLS+ PHENOM 300

BEECHCRAFT KING AIR 350i

PILATUS PC-12 NG

344

283

470

452

925

46

11

21

33

27

63

7.8%

7.8%

3.2%

7.4%

7.0%

6.0%

6.8%

0.5%

0.5%

2.6%

2.5%

1.7%

2.7%

2.3%

GULFSTREAM G550

DASSAULT FALCON 7X

593

593

For Sale #

46

For Sale % For Sale % Delivered 2015 or after

For Sale Inventory (JETNET, July 17, 2020) Fleet #

(YOY) basis. As we have noted previously, commercial airline traffic dropped by >95% at several key airline hubs in May 2020 – an unbelievable shock to our international travel system from which we have not yet come close to recovering.

At the time of press, rebounding business aircraft flight activity continues to be most pronounced at the Turboprop and Light Jet end of the business aircraft spectrum, with considerable regional variation (see WingX Advance and ARGUS reports on p22).

Indications from anecdotal evidence and airport-pair analyses suggest that much of the flight activity in the US and Europe (particularly in the on-demand charter segment) involves moving individuals and families to second homes, sunspots, and mountain resorts.

Aircraft Sales Activity

In H1 2020, pre-owned business jet retail sale/lease transaction volumes were down by ~25% YoY, based on JETNET databases. From March (when COVID-19’s impact really began to be felt in Europe and North America) transactions were off ~35%.

While overall sales activity is lower this year, there continues to be little evidence of a build-up in the for-sale inventory, with just 7.5% of the in-service turboprop fleet (~1,170 turboprop aircraft) and 10.3% of the jet fleet www.AVBUYER.com

(~2,300 jets) listed (according to JETNET data) at press time.

Unlike the last sharp downturn in the aftermath of the 2008-2009 Global Financial Crisis, we have not witnessed any evidence of a “rush for the exits”. The vast majority of owners and operators have elected to hit the GBP button, and wait for the skies to clear - and aircraft valuations to crystallize.

Peeling away a few layers of the pre-owned market onion reveals that very few of the most desirable aircraft (most popular, delivered recently) are currently available for sale.

A review of a selection of seven popular models illustrates the relative tightness of today’s business jet and turboprop market. With for sale inventory of nearly-new models hovering between 0.5% and 2.7% of the in-service fleet (see Table A, above), these aircraft are few and far between. In fact, they are probably best sourced by Sherlock Holmes and his able assistant Dr. Watson (or in their absence an experienced broker/dealer).

While some prospective buyers have been circling like sharks sensing blood in the water, there have been few opportunistic deals to be had. Aircraft owners appear to be wisely following doctors’ orders, holding on to their aircraft and taking advantage of the Great Big Pause to be with the most important people in their lives - on flights to paradise.

MI www.navigating360.com

!

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AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

21

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MARKET INDICATORS

AVBUYER.com

Flight Activity – North America TRAQPak’s review of year-over-year flight activity indicates that June 2020 recorded another substantial decline, down 25.7% versus June 2019. However, June posted another large month-overmonth increase, finishing up 40% compared with May 2020…

Year-over-year, the results by operational category were all negative, with Part 91 activity posting the largest yearly decrease from 2019. Fractional activity saw a monthly drop that was more in line with the industry average, while Part 135 flight activity recorded a better-than-industry-average decline.

The aircraft categories were also negative for the month, with Large Jets recording the largest yearly drop.

Light Jets recorded the smallest decline.

Month-over-Month

Positively, June Business Aviation flight activity posted another large month-over-month increase, finishing up 40% from May. Results by operational category were all positive for the month, with Fractional flight activity posting another significant increase.

The aircraft categories were also

JUNE 2020 vs JUNE 2019 North America Flight Activity

PART 91

PART 135

FRACTIONAL

ALL

TURBOPROP

-28.9%

-24.5%

-29.4%

-27.2%

LIGHT JET

-19.0%

-12.2%

-18.7%

-16.8%

MID-SIZE JET

-38.0%

-10.0%

-25.4%

-25.4%

LARGE CABIN JET

-41.1%

-33.5%

-38.2%

-38.1%

ALL

-30.3%

-19.3%

-25.2%

-25.7%

JUNE 2020 vs MAY 2019 North America Flight Activity

PART 91

PART 135

FRACTIONAL

ALL

TURBOPROP

29.5%

27.2%

100.5%

30.1%

LIGHT JET

29.5%

46.9%

48.5%

37.9%

MID-SIZE JET

40.3%

55.9%

55.9%

50.4%

LARGE CABIN JET

43.0%

64.6%

47.5%

51.2%

ALL

33.5%

43.5%

56.1%

40.0%

positive for the month, with Large Jets posting the largest monthly increase. The Turboprop market recorded the smallest (but still substantial) monthly gain.

July Forecast

TRAQPak analysts estimate there will be a 17.0% decrease in overall flight activity year-over-year in July 2020.

MI www.argus.aero

Flight Activity – Global During June 2020, global Business Aviation activity continued to recover, ending the month with 28% fewer flights than in June 2019, according to WingX Advance.

The North American market showed the largest rebound since the global slump in April, but recovery trends in the US have slowed this month as lockdown-lifts have slowed across a number of US States.

In Europe the recovery rate in the second half of June was stronger than in any other region, though the full month activity trend still looked to be ~40% behind last year. Flight activity in the UK and Spain remained way behind the norm (~60% under par for June). France resumed service as the busiest European market (flights still down by 40%), but the best performer in June was Germany (activity down by 18% YoY).

Regions outside North America and Europe accounted for less than 10% of Business Aviation departures in June. Of those: • • •

Oceania activity re-stabilised at around 90% of normal; Asian activity was stuck at 30% below normal; Africa improved to 38% below normal; and

22 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

•

South America has yet to see any significant erosion (87% of June 2019 activity).

Globally speaking, the strength in activity recovery continues to be inversely related to cabin size: • Ultra-Long-Range Jets flew 50% less; • Heavy Jets were down 43%; • Mid-size Jets declined by 33%; • Super Mid-size Jets were down 28%; • Light Jets flew 22% less; • Very Light Jets were down 19%; and • Turboprop flight recovery was robust in May and early June but tailed off, trending down by 28% in June YoY. “Overall, June’s 30% YoY decline was a clear improvement on May’s 50% slump,” Richard Koe, managing director, WingX Advance summarized. “Assuming that the opening up of economies can be resumed, we would expect stronger recovery in July, driven primarily by leisure travel in Small and Mid-size Jets.”

MI www.wingx-advance.com page 26

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2007 Falcon 2000EX EASy II

S/N: N331HA Reg: 117 5,458.4 hours since new 3,223 landings Engines enrolled on ESP Gold, APU enrolled on MSP Gold Next Gen Avionics FANS 1/A,

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Short-Term Impact of COVID-19 on the Used Aircraft Market According to AMSTAT and partner VANGAS Aviation Services, the average and median values of used business aircraft have fallen between 10% and 15% so far during the COVID-19 crisis, with some individual make-model markets seeing larger decreases…

AMSTAT sees declines in value in all segments since early April, but with some evidence of a recent slowing of this decline in some market segments.

The report also shows that inventories have increased since mid-March, but the increase is a continuation of a pre-existing trend.

The report shows that inventory of business jets was up 1.6% between

January and March, and then up 4.2% since mid-March. By comparison, business turboprop inventory was largely unchanged between January and March, and up 2.8% from March to May. Nevertheless, inventory levels remain below 2016 levels and significantly below 2009 levels.

Moreover, resale retail transactions for business jets were ahead of 2019 levels in January and February but were down 23% in March YoY and down 40% in April YoY. Resale retail transactions for turboprops were (at or ahead of) 2019 levels in January and February, but were down 27% in March YoY and down 40% in April YoY.

“It remains to be seen whether the trends of the last few months will continue long term,” said Andrew Young, general manager, AMSTAT. “What is also interesting is that inventories, while up, are not indicating a panic to sell, and levels remain below recent highs seen in 2017.

“If inventory levels remain relatively low and interest in Business Aviation materializes as an alternative to commercial travel in parallel with an economic recovery, then we might expect to see a significant uptick in transaction activity leading to a recovery in aircraft values in the coming months.”

MI www.amstatcorp.com

Volatile Business Jet Markets are Actively Trading…

Hagerty Jet Group assesses the pre-owned Gulfstream markets with a particular focus on G650s and G550s…

According to Hagerty Jet Group, it feels like business has been picking up since May. The good news is that deals are happening. The bad news is that prices are down steeply.

“We would argue that the entire business jet market is down at least 10% and in some cases as much as 20%,” the company noted. “A few deals have been discounted by as much as 30%.”

G650 Market

The G650 market has been the most interesting market to watch. “We have seen five deals come together in the past 46 weeks. Prices are down approximately 10% from Q1, and down 16% from a year ago,” the company adds. “But the true depreciation will not be clearly reflected…for another 3-6 months.”

One airplane that was marketed for sale at NBAA-BACE 2019 is selling for approximately $10m (25% below where the market was just nine months ago), while another is selling for $8m below a Q4 offer that was rejected. “There appears to be strong demand from buyers looking for aircraft at the new pricing levels, but they’re being met with a lack of supply, and sellers hesitant to accept these new pricing levels.”

There are now over 415 G650’s in service (since 2013) meaning less than 3.5% of the fleet is for sale – the lowest of any Gulfstream model. “We expect pricing to be volatile over the next six months, but do not foresee losing another 10% in value unless supply increases sharply,” Hagerty projects.

G550 Market

The G550 market has been actively trading too. Seven transactions closed in Q2, many of which likely started in Q1.

26 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

“Several sellers had to make concessions to get deals closed, and some deals fell apart altogether. The good news is that we are currently tracking five deals pending in this market,” Hagerty Jet Group revealed.

Prices are down 10-15% and Gulfstream recently announced the end of production for the G550. “We don’t expect prices of late model G550s to be impacted significantly by that announcement.”

Buyer Hesitancy…

Hagerty Jet Group believes that heading into H2 2020, buyers will be reluctant to enter the market until after the US Presidential elections in November. “Fears of additional COVID-19 shutdowns or restrictions on air travel will most likely also impact the short-term markets for business jets.”

MI www.hagertyjetgroup.com

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Why Bizjet OEMs Downsize Despite Rebound in BizAv Travel With new jet deliveries high in 2019 and charter activity soaring, why are the major business aircraft OEMs laying off their staff? Brian Foley paints the bigger picture…

Business jet flight activity is recovering smartly while scheduled airline flights remain comatose. Private charter flight inquiries are ringing off the hook, and jet card sales are selling like hot cakes. Giddy private aircraft charter outfits report a brisk business with upwards of 50% of sales going to first-time users.

Moreover, current aircraft owners are holding onto their jets, causing the number of used jets for sale on the market to barely budge since the start of the coronavirus pandemic. This all comes on the heels of new business jet deliveries that shot up 15% in 2019. So why have business jet OEMs been laying off their workers?

• • • •

Bombardier has shed 2,500 jobs.

Gulfstream has made 1,145 redundancies since October 2019.

Amid widespread furloughs, Textron Aviation’s Cessna unit cut 250 jobs (with possibly more on the way).

Other major OEMs have also made cuts.

Assessing the Layoff Juxtaposition

It’s important to first understand that the jump in 2019 new jet deliveries was something of a “head fake”. OEMs often build and stockpile new model entrants even before they’re certified by the authorities, resulting in a big slug of initial deliveries.

Furthermore, 2019 was a bumper year of deliveries for the smallest single-engine jets, further distorting the appearance of the traditional market.

Add to this that in reality, buying and caring for a business aircraft is costly, limiting the potential buyer base. Many of those with the financial will and wherewithal already own a jet.

Feedback from fractional providers is that ‘newbies’ aren’t buying fractional shares, but rather a jet card which is simply prepaid charter, and indicative of a more short-term commitment.

While some will perhaps try ownership to skip the airport crowds, there won’t be enough to meaningfully move the new jet sales needle.

Repeat buyers will wait for some of the economic uncertainty to subside before risking their capital, and we are not going to run out of charter or fractional program jets in the near-term to warrant fleet expansion. These assets have been underutilized for years.

So Why the Layoffs?

Production lines have been curtailed or closed for up to three months, robbing jet builders of their normal cash received when delivering finished airplanes to end-customers.

Potential new buyers are remaining cautious in this environment, resulting in OEMs not even having buyers for all of their planned 2020 jet production, which could result in them being stuck with ‘white tails’ at year-end.

There will inevitably be some new jet sales uplift from lasting concerns over traveling in large groups, but that will take a while to materialize. Increased charter and fractional usage must continue into next year before new orders are placed, and traditional buyers must first recover from their own financial situations and have confidence in the future.

The recent surge in private air travel popularity hasn’t yet translated into jet sales for business jet manufacturers who may continue to trim the workforce until order books show sustained growth over consecutive quarters.

MI www.brifo.com ❚

IADA Chair: Pre-Owned Aircraft Markets 'Improving Dramatically' The International Aircraft Dealers Association (IADA) held a members-only webinar recently to review where the preowned aircraft sales industry is amid the economic fallout from the Coronavirus pandemic. Following were some highlights...

‘May is generally better than April, and we all anticipate June to even be significantly better than May,” Chairman Paul Kirby noted. “And so, the trends are all in the right direction.

The end of the travel restrictions, the end of the lockdowns; it's all had the positive effect that we hoped for.

“As far as aircraft sales prices are concerned, generally speaking they have been thoughtful, strategic price reductions that haven't been completely out of whack, and haven't cratered any one specific market,” Kirby continued.

32 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

“For the first time we've heard a sentiment from a couple of different buyers saying, ‘I’m afraid I’ve missed the bottom’ – and I don’t know if they’re right or not. I hope they are.”

Reinforcing that message, Wayne Starling, IADA Executive Director added, “In talking with a number of the dealers around the country this past week, everybody spoke about two, three, four (deals).

“I talked to different dealers and five claim they’re trying to close right now. So, I'm expecting our June numbers to really jump, and I'll be really anxious to see the chart next month because it appears as though the recovery is coming back at really high speed.”

MI www.iada.aero page 36

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MarketIndicators AUG20.qxp_Layout 1 21/07/2020 17:05 Page 6

MARKET INDICATORS

AVBUYER.com

Table A

Fleet Maintenance Condition

In-Service Aircraft Values & Maintenance Condition

5.35

5.15

Including June’s quality rating, Asset Insight’s tracked fleet has now posted a 12-month best (highest) figure for three of the past four months.

Additionally, June’s ‘for sale’ fleet mix showed a decrease in the cost of individual upcoming maintenance events, with that figure below (less expensive than) the 12month average. Our tracked inventory recorded the following: Quality Rating: June’s ‘for sale’ fleet Quality Rating remained within the ‘Excellent’ range for 2020, repeating April’s 5.311 figure on Asset Insight’s scale of -2.5 to 10.

Maintenance Exposure: After last month’s degradation, Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) fell (improved) 1.0% to $1.376m, signaling upcoming maintenance for the latest fleet mix would be lower than the 12-month average.

Maintenance Exposure to Ask Price (ETP) Ratio

36 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

A

S

O

G500 G650ER Citation Latitude CL-650 G650 F2000LXS F7X Global 6000 CL-350 Citation CJ3+ Learjet 75 G280 Boeing BBJ Citation X+ F2000LX Citation CJ4 525C F900EX EASy CL-605 Citation Encore + King Air 350i Phenom 300 F2000EX EASy F900DX Citation Sovereign 680 Pilatus PC-12 G450 Piper Meridian G150 Caravan 208-675 Hawker 900XP Global XRS Citation CJ3 Nextant 400XTi Citation XLS F900EX Phenom 100E G550 CL-300 GV Learjet 45XR Citation CJ2+ 525A Citation Mustang 510 Global 5000 KingAir B-200 - Post-2000 Citation Encore KingAir 350 - Post-2000 Piaggio P-180 II Phenom 100 Citation CJ2 Embraer Legacy 600 Citation CJ1+ Caravan Grand 208B Hawker 4000 Caravan 208

Large and Small Jets gained 2.9% and 1.6%, respectively, during the month.

Medium Jets lost 3.7% and Turboprops were down 2.3% for the second consecutive month.

The ETP Ratio 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’ 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 Q2 2020, assets whose ETP Ratio was 40% or more were listed for sale nearly 53% longer on average than aircraft whose Ratio was below 40% (251 versus 384

$1.45

$1.38

$1.40

N

D

J

F

Maintenance Exposure

M

A

M

J

$1.30

Quality Rating Trendline

Table B

Inventory Fleet Maintenance Condition

•

J

Quality Rating

Average Ask Price for aircraft in the tracked fleet decreased 2.0% in June, but Q2 posted a 4.0% decrease overall, and H1 2020 saw a 3.6% value decline.

•

5.311

$1.35

Aircraft Values

•

$1.50

5.25

Aircraft transactions appeared to be increasing as June closed, although Asset Insight’s June 30th, 2020 market analysis of 134 fixed-wing models revealed a 1.5% inventory fleet increase over May… June’s inventory increase more than doubled the previous month’s increase and raised Asset Insight’s tracked fleet’s YTD inventory by 8.2%. Turboprop inventory again led the way through a 3.2% rise, followed by Medium Jets (1.8%), Large Jets (1.6%), and Small Jets (0.1%).

•

$ Million

!

1.4% 4.3% 4.5% 4.6% 5.1% 5.4% 7.9% 8.0% 8.3% 8.4% 8.9% 11.1% 12.2% 12.9% 13.4% 14.3% 14.4% 17.1% 17.4% 17.5% 17.6% 18.4% 18.7% 19.6% 19.9% 20.0% 21.6% 23.4% 23.6% 24.0% 25.6% 25.8% 25.8% 26.8% 27.3% 27.8% 29.1% 31.0% 31.3% 32.7% 32.8% 32.8% 33.3% 33.7% 33.9% 34.4% 34.7% 35.2% 35.6% 35.8% 35.8% 37.3% 37.7% 38.5%

F50EX Hawker 850XP Learjet 60XR G200 KingAir 350 - Pre-2001 Hawker 750 Citation Excel 560XL F900 KingAir B-200 - Pre-2001 F900B CL-604 Premier 1A Learjet 40XR Hawker 400XP KingAir 300 Citation V Ultra G400 TBM 700A Learjet 40 Citation Bravo Citation CJ1 Learjet 45 w/APU Global Express F2000 GIV-SP Learjet 45 Hawker 800XP Hawker Beechjet 400A Citation VII Premier 1 Citation V 560 Learjet 60 GIV-SP (MSG3) Hawker Beechjet 400 G100 Citation ISP Learjet 55C Hawker 1000A CL-601-3R Citation VI Learjet 31A Piaggio P-180 KingAir C90 Citation II F50 Learjet 36A GIV Hawker 800A Learjet 55 Learjet 31 CL-601-3A Citation III Citation I Learjet 35A CL601-1A F20-5 Hawker 125-700A GIII

40.3% 40.5% 41.3% 44.6% 46.3% 47.1% 47.7% 49.9% 52.0% 52.5% 55.8% 56.1% 57.4% 57.4% 58.0% 61.5% 62.5% 66.6% 68.4% 69.0% 69.8% 70.6% 71.2% 76.3% 77.3% 79.9% 83.3% 85.6% 85.8% 89.2% 92.9% 98.5% 100.7% 108.7% 111.5% 115.8% 116.5% 117.2% 122.1% 125.0% 125.8% 126.5% 130.0% 131.9% 138.1% 146.1% 160.7% 170.6% 173.2% 201.7% 207.4% 209.4% 236.7% 262.6% 284.0% 306.2% 311.4% 662.9%

Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of June 30 2020 page 40

Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)

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2014 GLOBAL 6000 OFF-MARKET

3’195 TT, ADS-B Out v2, T-CAS 7.1, Airframe & Engines on Programs,EASA, 9 Pax, WAAS, LPV, One Owner since New.

1’430 TT, T-CAS 7.1, Airframe & Engines on Programs, EASA, 13 Pax, WAAS, LPV, High-Speed Internet, One Owner Since New

Make Offer

Make Offer

CHARTER - TRADING - SALES &

ACQUISITIONS - LEASING - DESIGN

2008 A109E POWER S/N 11728 Engines on JSSI 100%, Only 305 Hours TT, Recent Paint, EASA Compliant, 6+1 Passengers Configuration, VIP Interior Make Offer

2010 A109S GRAND S/N 22162 1’754 TT, New int. & paint 2018, 5+1 Passengers Configuration, Single Pilot IFR Approved, Strobe Lights, Aft Cabin Mini Bar, SB109S-085 Compliant Make Offer

WWW.SPARFELL.AERO

MarketIndicators AUG20.qxp_Layout 1 21/07/2020 15:24 Page 7

MARKET INDICATORS

AVBUYER.com

Large Jets

Medium Jets

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$1.26

Asset Quality Rating

Asset Quality Rating

Scale -2.500 to 10.000

Scale -2.500 to 10.000

5.788

5.800

5.320

5.300 5.700

5.200

5.600

Days on Market). Asset Insight’s June analytics revealed that 51.8% of the tracked models, and 54.2% of the tracked fleet, posted an ETP Ratio greater than 40%.

June’s fleet ETP Ratio remained virtually unchanged at 69.9% for the third consecutive month, maintaining a figure about half-way between the worst (highest) 12month figure and the 12-month average Rating.

• • • •

For the seventh consecutive month, Turboprops registered the lowest ETP Ratio (45.9%).

Large Jets, in second place, improved slightly to 64.0%.

At 73.4%, Medium Jets registered a figure about halfway between their best (lowest) 12-month figure and their 12-month average Rating.

Small Jets (statistically) improved for the third consecutive month, posting a Ratio of 85.8%.

Market Summary

10.9% of our tracked fleet was listed for sale in June, compared to 11.3% in May, and 10.7% in April. The lowest (best) figure was again posted by Turboprops (7.4%).

Large Jets were next (9.7%), followed by Small Jets and Medium Jest (11.5% and 12.4%, respectively).

Large Jets: With our tracked Large Jet fleet posting a record high 5.788 Quality Rating, and Ask Prices at only slightly above the 12-month average, buyers and sellers

40 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

5.000 Jul-19

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

5.100

Jul-19

5.500

$1.25

Jun-20

$2.50

May-20

$2.80

Apr-20

$2.75 Mar-20

$3.00

$1.30

Jan-20

$3.00

Feb-20

Jun-20

Apr-20

May-20

Mar-20

Jan-20

Feb-20

Dec-19

Nov-19

Oct-19

Sep-19

Jul-19

Aug-19

$10.0

$3.00

$3.20

Dec-19

$11.0

$3.25

Nov-19

$12.0

$3.40

$1.35

$3.16

Oct-19

$12.0

$3.50

Sep-19

$13.0

$3.60

Jul-19

$14.0

$ Millions

Aug-19

$ Millions

should have no trouble negotiating mutually-beneficial transactions.

Inventory for our tracked fleet increased by eight more units in June, with the newest fleet mix maintaining the group’s Quality Rating at a record high for the third consecutive month, this time at 5.788, to remain within ‘Outstanding’ territory.

Maintenance Exposure also decreased (improved) 1.5%, bringing that figure to only slightly higher (worse) than the group’s 12-month best. Average Ask Price rose 2.9%, but was still down 7.3% for the quarter and 9.6% for the year, potentially allowing savvy buyers to uncover exceptional values.

Asset Insight analytics (www.assetinsight.com)

Medium Jets: This group’s Quality Rating and Maintenance Exposure posted 12-month best figures in June. The former improved for the second consecutive month to remain within the ‘Excellent’ range, while the latter decreased 1.1%.

Inventory increased by 12 units, and the new fleet mix lost 3.7% in Ask Price during the month, equating to an Ask Price loss of 2.7% for the quarter and a 5.2% through H1 2020.

The ETP Ratio did increase a bit after posting consecutive 12-month low (best) figures, and while our tracked fleet listed for sale did decrease from May’s 13.2% to 12.4%, buyers are still the ones better-positioned, due to availability.

www.AVBUYER.com

MarketIndicators AUG20.qxp_Layout 1 21/07/2020 15:25 Page 8

AVBUYER.com

MARKET INDICATORS

Small Jets

Turboprops

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$ Millions

$ Millions

$1.95

$0.90 $0.89

$1.85

$1.70

$0.70

$1.86

$0.65

$1.54

$1.60

$0.60

$0.80 $1.50

$1.75

$0.55

Jun-20

Apr-20

May-20

Feb-20

Mar-20

Jan-20

Dec-19

Oct-19

Nov-19

Sep-19

Aug-19

$1.40

Jul-19

$0.70

Jun-20

May-20

Apr-20

Mar-20

Jan-20

Feb-20

Dec-19

Oct-19

Nov-19

Sep-19

Aug-19

$0.50

Asset Quality Rating

Asset Quality Rating

Scale -2.500 to(www.assetinsight.com) 10.000 Asset Insight analytics

Scale -2.500 to 10.000

5.300

5.268

5.150

5.050

5.200

4.950

5.100

4.861

4.850

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

Jul-19

4.750

5.000

Aug-19

$1.65

Jul-19

$0.56

Asset Insight analytics (www.assetinsight.com) Asset Insight analytics (www.assetinsight.com)

Small Jets: Inventory remained relatively steady in June, than average. with only a single unit increase to the listed fleet, placing All in all, the news is actually quite good for buyers and availability of our tracked fleet at 11.5% (an increase of 59 sellers, assuming they both do their homework. assets year-to-date).

MI www.assetinsight.com ❙ Asset Quality did improve 1.65% to 5.268, earning the group entry into ‘Excellent’ territory, and even Asset Quality Rating Key Maintenance Exposure improved a nominal 0.3% Asset Insight analytics (www.assetinsight.com) Very Below (compared to the two consecutive 12-month worst Outstanding Excellent Good Good Average Average figures).

5.500 5.250 5.000 4.750 4.500 Less Ask Price increased 1.6% in June to register a 12or to to to to than month high figure, although we doubt that actual Greater 5.499 5.249 4.999 4.749 4.500 transaction values are likely to see a significant increase in the current environment. However, the Ask Price increase did improve the group’s ETP Ratio (though at 85.8% that fact may be a moot point).

Turboprops: The listed fleet has been rising since February, and last month’s 15-unit upsurge led to a 7.6% increase for the year. However, with only 7.4% of the fleet listed for sale, buyers will have to work a bit harder to uncover good values, especially with the group’s Quality Rating falling to 4.861 (dropping it into ‘Good’ territory for the first time in 2020).

Sellers are also facing a 1.7% increase in Maintenance Exposure, but that figure is better than the 12-month average. Ask Prices decreased to just above the 12-month average, and conspired with Maintenance Exposure to increase (worsen) the ETP Ratio, although it is still better

www.AVBUYER.com

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.

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

41

Freestream 2 July.qxp 18/06/2020 09:38 Page 1

2009 Boeing BBJ3 S/N: 37560 Airframe Total Time: 2,925 Hours. Aircraft Total Cycles: 886 cycles

2019 BBJ 787-8 Airframe Total Time: Delivery Hours. Aircraft Total Cycles: Delivery Cycles FREESTREAM AIRCRAFT LIMITED

FREESTREAM AIRCRAFT (BERMUDA) LIMITED

FREESTREAM AIRCRAFT (H.K.) LIMITED

London +44 207 584 3800 sales@freestream.com

Hamilton, Bermuda +441 505 1062 sales@freestreambermuda.bm

Hong Kong +852 2724 5620 info@freestreamhongkong.com

Freestream 1 August.qxp 20/07/2020 11:50 Page 1

2016 Gulfstream G650

2014 Global 6000 S/N: 9549

2009 Falcon 7X

2018 Gulfstream G650 S/N: 6312

2018 Gulfstream G650ER S/N: 6286

2006 Gulfstream G550 S/N: 5084

Airframe Total Time: 1850 hours Aircraft Total Cycles: 585 cycles

Airframe Total Time: 1687.17 hours Aircraft Total Cycles: 734 cycles

S/N: 046 Airframe Total Time: 6504.8 hours Aircraft Total Cycles: 1639 cycles

Airframe Total Time: 245.9 hours Aircraft Total Cycles: 77 cycles

Airframe Total Time: 305 hours Aircraft Total Cycles: 136 cycles

Airframe Total Time: 7419.5 hours Aircraft Total Cycles: 2700 cycles

FREESTREAM AIRCRAFT LIMITED

FREESTREAM AIRCRAFT (BERMUDA) LIMITED

FREESTREAM AIRCRAFT (H.K.) LIMITED

London +44 207 584 3800 sales@freestream.com

Hamilton, Bermuda +441 505 1062 sales@freestreambermuda.bm

Hong Kong +852 2724 5620 info@freestreamhongkong.com

Ownership 1.qxp_Finance 21/07/2020 09:20 Page 1

CHARTER

How to Pick the Right Jet Card The coronavirus crisis has fuelled interest in jet cards, according to industry representatives; particularly from new customers. But as potential buyers mull over the options, what should they keep in mind? Gerrard Cowan asks the experts…

44 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

www.AVBUYER.com

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Ownership 1.qxp_Finance 21/07/2020 09:22 Page 2

AVBUYER.com

C

Gerrard Cowan is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan

J

et cards come in various forms, but essentially they require customers to purchase a block of time on private aircraft (typically 25 hours or more), or deposit an initial sum that is then reduced as the user flies on different aircraft at varying rates.

The cards can provide many of the same advantages of owning an aircraft, or a fractional share. But while they provide a high degree of flexibility, it comes without the long-term commitment of ownership.

As COVID-19 brings an increased wariness of airline travel amid health concerns, so interest in private aviation has grown, says Andrew Collins, president and CEO of Sentient Jet, which devised the original jet card concept.

Collins says that while the pandemic has had a negative impact overall, Sentient Jet sold over 8,000 hours between May and June 2020, with about 4,500 in June alone. That’s around 20% higher than the company had envisioned. Perhaps most significantly, June saw the highest number of new clients Sentient Jet has ever recorded in a single month, representing about 50-55% of hours sold.

There has also been a change in the type of clients, he reveals. In the pre-COVID-19 world, 60% of travel was tied to business trips. Since the onslaught of the pandemic – with many businesspeople working from home, meetings cancelled and so on – the vast majority has been focused on personal travel.

If business travel had continued to operate at its usual level, Sentient Jet would be up for the first half of 2020 when compared to the same period of 2019, Collins adds.

“I think we're in an uncontrollable world right now, and a jet card gives you a bit of control and peace of mind,” he told AvBuyer. “You know you can leave when you want, arrive when you want.

You know you can use smaller airports and go to parts of the world or to countries that perhaps are more difficult to visit [on the airlines] right now.”

Kevin Macnaughton, managing director, charter for Air Partner explains that although travel bans are still in place, they are beginning to ease in Europe, and against this backdrop flyers are looking for lowrisk solutions with flexible cancellation terms, and with safety as “the number one priority”.

www.AVBUYER.com

Air Partner saw a significant increase in new jet card members and enquiries over the course of June, recording a 321% increase in enquiries for future flight bookings compared to the same month in 2019.

And Doug Gollan, founder and editor-in-chief of privatejetcardcomparisons.com, said his website had seen its’ best-ever two months in May and June, up over 100% in terms of subscriptions compared with the same period of 2019.

Though he didn’t have a breakdown of the new subscribers, Gollan says “a good chunk of that – just based on the people I talk to – are firsttime fliers, or people who flew privately occasionally or as a guest but are not comfortable flying with airlines now until there is a cure” (for the coronavirus).

Top Tips for First Time Jet Card Buyers

With so many people new to business aircraft charter, what are the key tips they should be keeping in mind when shopping for a jet card?

Note the Daily Minimum Flight Times Charge: Most importantly, Gollan warns of the importance of checking the ‘daily minimum flight times’ charge. As an example, the choice between a jet card charging $5,000 per hour and one charging $6,000 could seem obvious at first glance.

However, the true cost will vary depending on the daily minimum charged.

For instance, some could charge users a minimum of two hours, while others could be one hour. That means a user could end up paying $10,000 for a one-hour trip on the card that charges $5,000 per hour, because of the minimum flight time charged.

Short or Long Duration Trips: Additionally, Gollan recommends prospective customers research the key trips they expect to make, working out whether the bulk of these will be short- or long-duration.

Some operators offer discounts for long flights, he shares. Others offer discounts on round trips.

This can be more complex depending on the jet card provider involved, but generally covers two hours of billable flight time per day where the entire trip can be handled by one flight crew.

!

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

45

4

Ownership 1.qxp_Finance 21/07/2020 16:51 Page 3

CHARTER

AVBUYER.com

“...compare the different providers and make sure you're getting the one that has the things you want built into that hourly rate.”

Read the Small Print: There is a wide range of other considerations to bear in mind, Gollan says. For instance, not all cards guarantee Wi-Fi, while others might not allow unaccompanied minors to travel.

And more broadly, customers should carefully study the financial wellbeing of the company involved as much as they can, and think about how far in advance they might wish to book (since booking and cancellation terms – and notice hours – can vary widely).

Nick Copley, president of sherpareport.com – the owner of jetcards.org, a provider of jet card comparisons, news and other resources – also emphasizes the importance of reading the small print, and establishing what is included in the overall package (for example, is de-icing included in the cost, or charged separately? Is catering included?

Are pets allowed?)

“There are different features that are included as well as the price per hour, which are important to know and understand,” he explains. “So compare the different providers and make sure you're getting the one that has the things you want built into that hourly rate.”

Step Back and Consider Budget: Copley also advises prospective jet card customers to “take a 46 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

step back” before buying, to consider whether a card is right for them.

Would-be jet card users should consider whether it is within their budget, he suggests, before focusing on the trips they want to take, how far they want to go, and how many people will be travelling, all of which can “influence the sort of private aviation product that works for them, whether it’s charter, a jet card, a fractional share, or a lease”.

A Closing Word on Health & Safety…

According to Macnaughton, Air Partner expects the private aviation market to pick up against first-class airline flights over the course of the summer and beyond, with a positive impact for jet cards, thanks to continuing concerns over health and safety.

Air Partner has adopted a number of new safety measures to minimize any exposure, according to Macnaughton, including disinfecting aircraft and supplying personal protective equipment (PPE).

“We believe safety will continue to be a top priority for clients for the medium- to long-term, until a vaccine for coronavirus is found and applied,” he concludes. “Even after a vaccine is found, people will be more wary of safety on flights and the risk of new diseases.” ❚

www.AVBUYER.com

Elliott Jets August.qxp_Layout 1 20/07/2020 11:29 Page 1

Corporate Concepts August.qxp 22/07/2020 14:06 Page 1

Corporate Concepts International, Inc. Falcon 900EX Next 900EX to Sell All 2020 upgrades and WAAS/LPV, Multi-zone interior with 13 seats, forward and aft lavatories, dual berthing aft divans, 12 month inspection in progress.

Gulfstream G-V Reduced Price Exceptional Pedigree, All 2020 Upgrades, New Paint, Recent Interior, 17 seats, Forward Galley, Forward and Aft Lavatories, All Programs – Contact us for details

Falcon 50-4 with Proline 21 Must See! 731-4 engine upgrade for better hot and high performance, new generation Proline 21 avionics, Falcon 50EX-style interior with soundproofing package, all programs and more.

Legacy 600

New to the Market New paint, refurbished interior, landing gear overhaul and major 144 month inspection in 2019. Soundproofing package and latest Honeywell Ovation Cabin management system including Apple TV, Chromecast, GoGo Vision and surround sound.

See www.flycci.com for Full Details and Photos

Corporate Concepts August.qxp 22/07/2020 14:06 Page 2

VVIP Airbus A340 New to the Market Fresh from major inspections, gear overhaul and paint. Never an airliner – 12 hour range with 77 pax in ultimate comfort with multiple staterooms.

All 2020 upgrades.

VVIP Boeing 737-300 New Reduced Price Corporate Pedigree, never an airliner, all 2020 upgrades, GE On-Point, recent major inspection, 42 VIP seats, long range tanks, new paint. Less than 8,000 hours total time. Available for demo or ACMI lease. Contact us for further details at www.flycci.com.

VVIP Boeing 737-200 Fresh from major inspections and gear overhaul, All 2020 upgrades, new interior, new super soundproofing, new paint, many upgrades, long range tanks, Low Hours - Never an airliner.

See www.flycci.com for Full Details and Photos or to Schedule a Private Showing of Any of the Above Aircraft.

Dennis Blackburn +1.832.647.7581 blackburn@flycci.com

Chris Zarnik +1.919.264.6212 czarnik@flycci.com

Larry Wright +1.704.906.3755 lwright@flycci.com

Ownership 2.qxp_Finance 21/07/2020 14:55 Page 1

CHARTER

What Does it Cost to Charter a Business Aircraft?

What does your money buy in today’s business aircraft charter market?

And how can you weigh up the pros and cons to know when chartering makes sense? JET&CO’s Alexandre Valentini explores…

T

hose who consider chartering a business aircraft tend to do so recognizing that their time is worth more than it used to be. By chartering a business airplane, passengers can: • • • •

Connect more destinations direct than they could flying with the scheduled airlines; Cover more ground, potentially visiting three or four different destinations on the same day; Minimize the lost time spent hanging around airport terminals; and Where a suitable cabin connectivity solution is installed they can enjoy a productive, private working environment while in transit.

It’s important to detail the benefits to flying privately, since they all place the ultimate cost of chartering a business aircraft into perspective.

50 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

When discussing the actual costs of business aircraft charter there is a variety of factors that can impact what you will be charged.

What Impacts Charter Costs?

If you are considering booking a charter trip, in many cases the price will be based on the following factors: • • • • • • • •

The aircraft type/size required The number of passengers/luggage The length of the journey and any repositioning costs Airport landing and handling fees, fuel and services used (i.e. catering, etc.)

Overnight costs Crew salaries Connectivity/In-Flight Entertainment costs Tax and other miscellaneous costs. www.AVBUYER.com

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Ownership 2.qxp_Finance 21/07/2020 14:56 Page 2

AVBUYER.com

C

Alexandre Valentini has been flying since he was 16, and began dealing airplanes with his father in 2005. He has since created his own company JET&CO, a free-to-use, transparent platform created to allow users to estimate how much a desired charter flight will cost and book directly with the operator in seconds.

It is therefore natural that a very wide variety of aircraft can be used for Business Aviation charter, and that Part 135 charter is widespread.

In Alaska alone (where remote communities rely heavily on aviation to connect with the wider world) there are over 300 legal operators of Part 135 Charter aircraft. Moreover, there are over 1,100 aircraft available for charter in Alaska, varying widely by type and size, including single-passenger Piper J3s, six-seater DHC-2 Beavers, and many more.

What Does my Charter Money Buy Today?

Following is a rough guide to what your charter money buys you today (with stated prices representing the cost per hour).

It’s worth noting that airport fees will vary drastically – so, for example, a charter flight to a major metropolitan US airport will reflect significantly higher handling/landing fee costs than a flight to a rural airport in the Mid-West United States.

Also, as alluded to above, Business Aviation does not always mean private jets. Anybody seeking to charter an aircraft should ensure the aircraft they choose is well suited to their need in terms of type and size, to avoid unnecessary cost on their charter trip.

It could be that a turboprop, helicopter, or even a piston aircraft would be a better match for the mission need than a jet – particularly for shortrange trips into smaller airfields with shorter, perhaps unpaved runways.

Can Any Type of Aircraft be Chartered?

According to the National Business Aviation Association, “Business Aviation describes the use of any ‘General Aviation’ aircraft for a business purpose”. The US Federal Aviation Administration defines General Aviation as “all flights that are not conducted by the military or the scheduled airlines”. www.AVBUYER.com

•

$200-$600/Hour: You can charter a smaller piston aircraft providing up to six seats’ capacity and a range of between 300 and 500nm (typically) for less than $600 per hour.

These are mostly utilized for short flights of less than one hour, and are popular with tourists and entrepreneurs among others.

•

$600-$2,000/Hour: Charter customers spending between $600 and $2,000 are likely to be hiring a turboprop (i.e. a Beechcraft King Air or Piper Cheyenne), or a Very Light/Entry Level Jet (such as a Cessna Citation Mustang or Cirrus VisionJet). With ranges often stretching to 1,000nm, and with speeds typically between 250-300kts this aircraft type is commonly chartered for flights lasting up to two hours in length. Usually seating up to four or five passengers, tourist groups and businesses form the common client profile for this level of charter.

•

$2,000-$3,000/Hour: Those spending between $2,000 and $3,000 are likely to be hiring a Light Jet, such as a Cessna CJ-series aircraft, Raytheon Premier IA or Embraer Phenom 100.

The range and speed of these aircraft is not significantly different to the Turboprop/EntryLevel Jet class, but seating capacity is greater, enabling businesses and wealthy private individuals to transport up to six or seven passengers.

!

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

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5

Ownership 2.qxp_Finance 21/07/2020 09:49 Page 3

CHARTER

AVBUYER.com

“There is little benefit spending $5,000 per hour to charter an Ultra-Long-Range business jet to fly four hours across a continent. Conversely, many of the benefits of chartering a business aircraft will be lost if fuel stops need to be made due to a shorter range than is required.”

•

$3,000-$4,000/Hour: Within this price range charter customers are likely to be paying for a Mid-size Jet. These range in size and capability between the Cessna Citation XLS or Phenom 300, right up to the Super Mid-Size Bombardier Challenger 350 or Gulfstream G280. The bigger jets offer up to 10 seats.

Aircraft within this price band are commonly chartered by two types of user: Those needing more passenger capacity for shorter flights, or those needing to fly up to four passengers approximately 2,000nm or more.

•

$4,000-$5,000/Hour: This price range incorporates some of the Large Cabin jets, such as the Bombardier Challenger 650, Dassault Falcon 900LX or Embraer Legacy 650.

These aircraft are capable of transatlantic flying, but can be used for shorter trips where, for example, a need exists to transport as many as 12 passengers.

•

$5,000+/Hour: At more than $5,000 per hour, you are likely to be shopping the charter

t ad re ou Re Mo Ab

52 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

market for an Ultra-Long-Range/Large Cabin Jet, such as Gulfstream’s G550 or G650, Dassault’s Falcon 7X and 8X, or Bombardier’s Global 6500 and 7500. Typical passenger capacity is for more than 12, while the range of these aircraft will exceed 5,000nm. Non-stop flights connecting Los Angeles with Paris, or London with Beijing, are possible.

In Summary

As you can see from the above, the cost of chartering a business aircraft depends on your practical need. There is little benefit spending $5,000 per hour to charter an Ultra-Long-Range business jet to fly four hours across a continent.

Conversely, many of the benefits of chartering a business aircraft will be lost if fuel stops need to be made due to a shorter range than is required.

You will need to know the type of aircraft that will fulfil your travel objectives first, after which you can begin to determine the actual cost to charter on a trip-by-trip basis.

More information from jetandco.com ❚

AIRCRAFT OWNERSHIP

at AVBUYER.com

www.AVBUYER.com

General Aviation August.qxp_Layout 1 20/07/2020 11:33 Page 1

AirCompAnalysis JULY20.qxp_ACAn 22/07/2020 10:41 Page 1

HELICOPTER COMPARISON

Helicopter Comparison: Leonardo AW119 Kx vs Bell 407 GXi vs Airbus H125 In this month’s Helicopter Comparison, Mike Chase provides information on three popular single turbine helicopters including the Leonardo AW119 Kx, Bell 407 GXi and Airbus H125. What are the pros and cons of each?

H

ow do the Leonardo AW119 Kx, Bell 407 GXi and Airbus H125 compare within the market? Over the following paragraphs, we’ll consider several productivity parameters (including payload, range, speed and cabin size), and their current market values.

Leonardo AW119 Kx

The AW119 Kx is a single-engine turbine helicopter originally designed and developed

by AgustaWestland. It is used for performing a variety of missions such as emergency medical services (EMS) transport, offshore transport, VIP or corporate transport, law enforcement, fire-fighting, and government duties.

In production since 2012, the AW119 Kx succeeded the AW119 Ke (Koala Enhanced) model. The Kx version offers a Garmin G1000H avionics suite, helping improve

54 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

situational awareness, reduce pilot workload, and increase safety.

Bell 407 GXi

The Bell 407 GXi is outfitted with the new Rolls-Royce 250-C47E/4 dual-channel FADEC turbine engine delivering exceptional hot and high performance, full automatic relight, and the ability to cruise at 133kts.

Additional options for the Bell 407 GXi include the Garmin Flight Stream 510 that allows pilots to upload flight plans from smart devices, and Garmin Surface Watch that provides runway identification and alerting technology.

Airbus H125 (formally the AS350B-3e)

The H125 draws its roots from the Eurocopter AS-350B-3, produced between 1998 and 2012. The Eurocopter AS-350B-3e model (built between 2012 and 2015)

followed, before in 2016 Airbus renamed it the Airbus H125.

Currently manufactured in Airbus Helicopters' plant at Golden Triangle Airport, the Airbus H125 features a new dual-channel FADEC-equipped Turbomeca Arriel 2D engine, and a dual LCD-screen Vehicle and Engine Multi-function Display (VEMD).

Worldwide Appeal

A total 912 Airbus H125s were in operation at the time of writing. By comparison 81 Leonardo AW119 Kx and 63 Bell 407 GXi helicopters were in operation worldwide.

By continent, Europe holds the largest Airbus H125 fleet percentage (33%), followed

by North America (32%) and Asia (21%), accounting for a combined total of 86% (per JETNET). For the Leonardo AW119 Kx (13%) and Bell 407 GXi (3%), Europe does not capture a particularly large market share.

www.AVBUYER.com

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AirCompAnalysis JULY20.qxp_ACAn 28/07/2020 09:56 Page 2

www.AVBUYER.com

HOW MANY

EXECUTIVE

LEONARDO

SEATS?

AW119 Kx

vs.

(2020 Model)

BELL vs.

5

$3.635 Million

407 GXi

5

$3.315 Million (2020 Model)

AIRBUS

H125

4

$3.324 Million (2020 Model)

WHICH OF THESE HELICOPTERS WILL COME OUT ON TOP HOW FAR

HOW FAST WILL I CLIMB

CAN WE GO?

(Nautical Miles, Seats Full)

(Rate of climb, ft per minute)

448

AW119Kx

Leonardo AW119 Kx 1,850ft

Bell 407 GXi 1,850ft

Airbus H125 1,959ft

2000 (ft)

BELL 407GXi

327 332

PAYLOAD CAN WE TAKE? (Lbs)

2,630

AW119Kx 1000

BELL 407GXi

2,136

AIRBUS H125 1,926

500

0

www.AVBUYER.com

CRUISING SPEED? (Knots)

131

AW119Kx

327 133

BELL 407GXi

WHAT’S THE

COST PER HOUR? AW119Kx $885 BELL 407GXi $625

AIRBUS H125 $625

HOW MANY

HOW MANY

OPERATION?

EACH MONTH?

UNITS IN 63 81

912

Sources used: Conklin & de Decker, OEM, HeliValue$, JETNET.

LONG RANGE

127 AIRBUS H125 325

325 AIRBUS H125 300

HOW MUCH 1500

WHAT’S THE

NEW/USED SOLD 1 (2.5%) 9 (2.6%)

4 (0%)

12-month Average Figure (% Global Fleet ‘For Sale’)



AVBUYER MAGAZINE Vol 24 Issue 8 2020

55

AirCompAnalysis JULY20.qxp_ACAn 22/07/2020 16:26 Page 3

HELICOPTER COMPARISON

AVBUYER.com

Table A - Payload & Range Comparison

Payload & Range

The data contained in Table A (left) is sourced from each of the OEMs, JETNET and from B&CA magazine. As we have mentioned previously, a potential operator should focus on payload capability as a key factor. The Leonardo AW119 Kx ‘Available Payload with Maximum Fuel’ (1,580lbs) is more than that offered by either the Bell 407GXi (1,455lbs) or the Airbus H125 (987lbs).

Leonardo AW119 Kx Bell 407 GXi Airbus H125

6,283

5,250

5,225

1,050

856

939

Standard Fuel (lb)

MTOW (lb)

2,630

2,136

1,926

Useful Payload (lb)

1,580

1,455

987

Avail Payload w/Max Fuel (lb)

515

332

300

Max Range (nm)

Cabin Comparison

Source: OEMs, B&CA.

Chart A - Cabin Comparison Bell 407 GXi

Airbus Helicopters H125

4.80 ft

5.30 ft

5.41 ft

Source: UPCAST JETBOOK

Chart B - Range Comparison AW119 Kx Bell 407 GXi Airbus H125

4.26 ft

4.20 ft

4.20 ft

Leonardo Helicopters AW119 Kx

448 nm (w/5 Pax) 332 nm (w/5 Pax) 300 nm (w/4 Pax)

H

According to the Business Jet Traveler Summer 2020 Aircraft Buyers’ Guide, the Leonardo AW119 Kx cabin volume measures 121 cubic feet. By comparison, the Bell 407 GXi and Airbus H125 have less cabin volume (84cu.ft and 61cu.ft, respectively).

Chart A (left), courtesy of UPCAST JETBOOK, offers a cabin cross-section view and shows the cabin height of the three helicopters to be approximately 4.2ft. They all differ in width, however. The H125 offers the greatest width (5.41ft) compared to the AW119 Kx (5.3ft) and the Bell 407 GXi (4.8ft). The AW119 Kx provides the longer cabin at 6.89ft, meanwhile.

Typical executive seating configuration (excluding one crew member) for the AW119 Kx and the Bell 407 GXi is five, compared to four executive seats on the Airbus H125.

The Airbus H125 provides 35cu.ft of external luggage space, but none internally, while the Bell 407 GXi has 20cu.ft of external baggage space and 3cu.ft internally. The Leonardo AW119 Kx provides the most room for luggage (34cu.ft externally and 10cu.ft internally).

Range Comparison

Using the Leonardo S.p.A. manufacturing plant in Milan, Italy as the origin point, Chart B (left) shows the AW119 Kx helicopter provides greater range (448nm) than the Bell 407 GXi (332nm) and the Airbus H125 (300nm). The depicted range for each aircraft is with executive seats full.

Interestingly, the Certificated Ceiling for our three study helicopters differs, with 23,000ft for the Airbus H125; 20,000ft for the Bell 407 GXi; and 15,000ft for the Leonardo AW119 Kx.

Powerplants

Source: Chase & Associates

56 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

The Leonardo AW119 Kx is powered by one Pratt & Whitney of Canada PT6B-37A engine with a 900shp transmission rating. (The transmission rating is a limiting factor in the total rated and usable engine power output.)

By comparison, the Bell 407GXi is powered by one Rolls Royce 250-C47E/4 engine with 650shp transmission rating, and www.AVBUYER.com

!

5

Castle Air August.qxp_Layout 1 22/07/2020 11:36 Page 1

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AirCompAnalysis JULY20.qxp_ACAn 28/07/2020 11:31 Page 4

HELICOPTER COMPARISON

AVBUYER.com

Chart C – Variable Cost Comparison

H

the Airbus H125 is powered by a single Turbomeca Arriel 2D with 802shp transmission rating.

Total Variable Cost

Leonardo AW119 Kx

The ‘Total Variable Cost’ illustrated in Chart C (left) is defined as the Cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense, Engine Overhaul, and Miscellaneous Trip Expense.

These costs do not represent a direct source into every flight department and their trip support expenses. Therefore, for comparative purposes the costs presented are the relative differences, not the actual differences since these may vary from flight department to flight department actual operations.

The Total Variable Cost for the Leonardo AW119 Kx is $885 per hour, 42% more than the Bell 407 GXi and Airbus H125 (both $625 per hour).

$885

Bell 407 GXi

$625

Airbus H125

$625 $200

$0

$400

$600

$800

$1,000

US $ per hour

Source: OEMs

Market Comparison

Table B - Market Comparison Leonardo AW119 Kx Bell 407 GXi Airbus H125

131

133

127

Average Cruise Speed (Kts)

121

84

61

448

Cabin Volume 28,000 30,300 Cu Ft

30,800

332

300

Normal Range nm

$3.635 $3.315 $3.324 2020 Price 'New' US$m - HeliValue$

81

63

912

2.5%

0%

2.6%

4

1

% For Sale

In Operation

Average Sold Per Month*

* Average Full Sale Transactions in the past 12 months as of June 2020; Source: JETNET. Date courtesy of OEM; HeliValue$; BJT Summer 2020; JETNET

9

Table B (left) contains the Manufacturer’s Base Price from 2020 from HeliValue$ for each helicopter. The average speed, cabin volume and range values are from the OEMs and/or the Business Jet Traveler Summer 2020 Aircraft Buyers’ Guide, while the number of helicopters in-operation and the percentage ‘For Sale’ are as reported by JETNET. As of this writing, the Leonardo AW119Kx had 2.5% of its fleet for sale, and the Airbus H125 had 2.6% of its fleet on the pre-owned market. The Bell 407 GXi has no used helicopters for sale.

The average number of new/used transactions (sold) per month for the Leonardo AW119 Kx is one unit per month, while the Bell 407 GXi averages four new units per month. The Airbus H125 averages nine new and used units sold monthly.

Depreciation Schedule

D

Table C - Part 91 and Part 135 MACRS Depreciation Schedule MACRS Schedule for PART 91 Year Deduction

1

2

3

4

5

6

20.0%

32.0%

19.20%

11.52%

11.52%

5.76%

MACRS Schedule for PART 135 Year Deduction

1

2

3

4

5

6

7

8

14.29%

24.49%

17.49%

12.49%

8.93%

8.92%

8.93%

4.46%

Source: NBAA

58 Vol 24 Issue 8 2020 AVBUYER MAGAZINE

Helicopters that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS).

Under MACRS, taxpayers can accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period (see Table C, left).

In certain cases, helicopters may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight-line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS.



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6

Leading Edge 8 to view August.qxp_Layout 1 22/07/2020 11:34 Page 1

2011 Challenger 300 s/n 20337

2009 Hawker 900XP s/n HA-108

New Paint & Interior May 2020, 96 Mo. Inspection c/w Jan 2020, GoGo L5 Avance Hi-Speed Data, For Sale or Lease

2,400 Hours TT, Engines & APU on MSP Gold, Immaculate Paint & Interior by Duncan Aviation June 2017, GoGo AVANCE L5 Wi-Fi, WAAS/LPV

1999 Hawker 800XP s/n 258400

2018 Gulfstream G500 s/n 72014

Engines & APU on 100% JSSI, ATG-5000 Wi-Fi, Currently Part 135, ADS-B w/ WAAS & LPV

U.S. Registered, Engines on P&WC PurePower Premium, APU on MSP Gold, Recent Price Reduction

2016 Citation XLS+ s/n 6215

2007 Citation CJ2+ s/n 370

One U.S. Owner Since New, PowerAdvantage Plus, AuxAdvantage & ProParts, ADS-B w/ WAAS & LPV, GoGo Biz ATG-4000 Wi-Fi

Low Time – 1,535 Hours TT, Collins Pro Line 21, Two U.S. Owner Pilots Since New, Looks Like New

2013 Gulfstream G280 s/n 2013

2011 Challenger 605 s/n 5858

Hallmark 10 Pax Configuration, Engines & APU on MSP Gold, GoGo ATG-5000 WiFi, ADS-B Out v2 and TCASS-II w/ Change 7.1

One U.S. Owner Since New, 12 Pax Floorplan, ATG-5000 Gogo Biz Wi-Fi, Operated & Maintained Part 135

Leading Edge Aviation Solutions is one of the world’s premier private aviation brokers/dealers with 850+ aircraft transactions, 50+ years of experience & over $10 billion in aircraft transactions. Not just aircraft brokers, they offer a deep suite of service that can be employed long before and long after any aircraft transactions are contemplated.

AirCompAnalysis JULY20.qxp_ACAn 29/07/2020 10:27 Page 5

HELICOPTER COMPARISON

Table D - AW119 Kx MACRS Depreciation Schedule 2020 Leonardo AW119 Kx - Part 91 Full Retail Price - Million $3.635 Year

Rate (%)

1

20.0%

2

32.0%

3

19.2%

4

11.5%

5

11.5%

6

5.8%

Depreciation ($M)

$0.727

$1.163

$0.698

$0.419

$0.419

$0.209

Cum. Depreciation ($M)

$0.727

$1.890

$2.588

$3.007

$3.426

$3.635

Depreciation Value ($M)

$2.908

$1.747

$1.047

$0.628

$0.209

$0.000

2020 Leonardo AW119 Kx - Part 135 Full Retail Price - Million $3.635 Year

Rate (%)

1

14.3%

2

24.5%

3

17.5%

5

4

12.5%

8.9%

6

8.9%

7

8.9%

8

4.5%

Depreciation ($M)

$0.519

$0.890

$0.636

$0.454

$0.325

$0.324

$0.325

$0.162

Cum. Depreciation ($M)

$0.519

$1.410

$2.045

$2.449

$2.824

$3.148

$3.473

$3.635

Depreciation Value ($M)

$3.116

$2.225

$1.590

$1.136

$0.811

$0.487

$0.162

$0.000

Source: HeliValue$

Table E - Bell 407 GTi MACRS Depreciation Schedule 2020 Bell 407 GXi - Part 91 Full Retail Price - Million $3.315 Year

Rate (%)

1

20.0%

-2

32.0%

3

19.2%

4

11.5%

5

11.5%

6

5.8%

Depreciation ($M)

$0.663

$1.061

$0.636

$0.382

$0.382

$0.191

Cum. Depreciation ($M)

$0.663

$1.724

$2.360

$2.742

$3.124

$3.315

Depreciation Value ($M)

$2.652

$1.591

$0.955

$0.573

$0.191

$0.000

2020 Bell 407 GXi - Part 135 Full Retail Price - Million $3.315 Year

Rate (%)

1

14.3%

2

24.5%

3

17.5%

4

12.5%

5

8.9%

6

8.9%

7

8.9%

8

4.5%

Depreciation ($M)

$0.474

$0.812

$0.580

$0.414

$0.296

$0.296

$0.296

$0.148

Cum. Depreciation ($M)

$0.474

$1.286

$1.865

$2.279

$2.575

$2.871

$3.167

$3.315

Depreciation Value ($M)

$2.841

$2.029

$1.450

$1.036

$0.740

$0.444

$0.148

$0.000

Source: HeliValue$

Table F - Airbus H125 MACRS Depreciation Schedule 2020 Airbus H125 - Part 91 Full Retail Price - Million $3.324 Year

Rate (%)

1

20.0%

2

32.0%

3

19.2%

4

11.5%

5

11.5%

6

5.8%

Depreciation ($M)

$0.665

$1.064

$0.638

$0.383

$0.383

$0.191

Cum. Depreciation ($M)

$0.665

$1.728

$2.367

$2.750

$3.133

$3.324

Depreciation Value ($M)

$2.659

$1.596

$0.957

$0.574

$0.191

$0.000

Full Retail Price - Million $3.324 Rate (%)

1

14.3%

2

24.5%

3

17.5%

4

12.5%

5

8.9%

6

8.9%

7

8.9%

8

4.5%

Depreciation ($M)

$0.475

$0.814

$0.581

$0.415

$0.297

$0.297

$0.297

$0.148

Cum. Depreciation ($M)

$0.475

$1.289

$1.870

$2.286

$2.582

$2.879

$3.176

$3.324

Depreciation Value ($M)

$2.849

$2.035

Source: HeliValue$

60 Vol 24 Issue 8 2020 AVBUYER MAGAZINE

$1.454

$1.038

$0.742

$0.445

Asking Prices & Quantity

The current used helicopter market for the AW119 Kx displayed three units available for sale, with one displaying an asking price of $3.495m. By comparison, the Airbus H125 shows a total of 23 helicopters ‘For Sale’ with 12 displaying asking prices ranging between $1.75m and $3.2m. As mentioned previously, however, there were no Bell 407 GXi helicopters on the used helicopter market (per JETNET records) at the time of writing.

While each serial number is unique, the Airframe (AFTT) hours and age/condition will cause great variations in price. Of course, the final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.

Productivity Comparisons

2020 Airbus H125 - Part 135 Year

There are a variety of factors that taxpayers must consider in determining if a helicopter may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, helicopters used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelve-year recovery period.

Helicopters used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six-year recovery period.

There are certain uses of the helicopter, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year.

Table D (top left) depicts an example of using the MACRS schedule for a Leonardo AW119 Kx helicopter in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a 2020 base price of $3.635m, per HeliValue$.

Table E (middle left) depicts an example of using the MACRS schedule for a Bell 206 GXi helicopter in private (Part 91) and charter (Part 135) operations over five- and sevenyear periods, assuming a 2020 base price of $3.315m, per HeliValue$.

Table F (bottom left) depicts an example of using the MACRS schedule for a 2020year model Airbus H125 helicopter in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a 2020 base price of $3.324m, per HeliValue$.

$0.148

$0.000

The points in Chart D (opposite) are centered on the same helicopters. Pricing used in the vertical axis is as published by HeliValue$ for the model years 2019 (AW119 Kx) and 2020 (Airbus and Bell models).

The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be www.AVBUYER.com

w

AirCompAnalysis JULY20.qxp_ACAn 28/07/2020 10:10 Page 6

G

AVBUYER.com

Chart D - Productivity Comparison

defined (and it is here) as the multiple of three factors:

Others may choose different parameters, but serious helicopter buyers are usually impressed with Price, Range, Speed and Cabin Size.

After consideration of the Price, Range, Speed and Cabin Size we can conclude that the Leonardo AW119 Kx displays a high level of productivity compared to the comparative field, with greater ‘Payload with Full Fuel’ capability, longer range and more cabin volume. However, the variable hourly operating cost and base price are higher.

The Airbus H125 shows a marginally higher price ($9k) based on its 2020 base price than the Bell 407 GXi, while their variable hourly operating costs are the same.

The Airbus H125 currently averages nine units sold per month (new and used), and is a popular model on the helicopter sales market today with over 900 helicopters in operation

ad re Re M o

Price (Millions)

$6.0

1. Normal or standard range; 2. An average or standard cruise speed flown to achieve that range; 3. Cabin volume available for executive passenger seating

$5.0 $4.0

2020 Leonardo AW119 Kx 2020 Airbus H125

$3.0

2020 Bell 407 GXi

$2.0 $1.0 $0.0 0.000

4.000

2.000

6.000

8.000

Index (Speed x Range x Cabin Volume / 1,000,000,000)

worldwide. We see plenty of reason for each aircraft to continue to enjoy ongoing market success.

Within the preceding paragraphs we have touched upon several of the attributes that helicopter operators value. However, there are other qualities that might factor in a buying decision too. When selecting which option is best for them, operators should weigh up their mission requirements precisely. T

Mike Chase’s analytical and consultancy services are highly valued within the Business Aviation industry. He is founder and president of Chase & Associates, and works closely with several respected sources to compile his unique Aircraft Comparative Analysis features. Contact Mike via mike@avbuyer.com

on AVBUYER.com

HELICOPTER COMPARISONS

The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet

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SPONSORED CONTENT

AOPA: Budgeting to Own an Aircraft

What is the best way to manage the expense of an airplane? Set up your budget before you buy, not after, says AOPA’s Adam Meredith…

Your budget should include both fixed expenses and variable expenses, as well as a reserve fund. AOPA can provide information through our online and print publications about what costs to expect for various makes and models.

Additionally, there’s no substitute for talking to others who have the same aircraft about their expenses. Different owners may give differing answers, but getting a range of observations is beneficial.

Fixed Costs Easiest to determine are fixed expenses, which include insurance, navigation, music and weather database subscriptions, as well as hangar costs.

Your biggest expense will be aircraft insurance. The main decision is how much coverage you want or need. In some cases, you’re not going to be able to get the amount of coverage you want. It’s difficult, but not impossible, to get more than $3 million in liability coverage, for example, and it becomes more expensive the higher you go.

Factors that affect your insurance costs include time and recency in type, participating in authorized training and flying with an instructor in the aircraft for a specified period of time. They can all help lower your insurance costs.

To hangar or tie down? There are costs associated with each.

Hangar rent is obvious. Less obvious, but no less costly, is the weather damage a tied-down airplane suffers.

The cost to repaint and fix plastic exterior trim pieces and replace or repair instrument panels, aircraft seats, interiors or even sun-crazed windows could equal or exceed hangar rental.

Before you commit to a tiedown spot thinking you’re saving money, we suggest you run a thorough analysis.

62 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

Variable Costs Variable costs include fuel, annual and other periodic inspections (100-hour, IFR certification, AD-compliance, etc.) and, of course, unscheduled maintenance.

How often you fly will determine overall fuel costs. Where you fly also determines fuel prices. Other fuel savings can come from using self-serve over full serve, and joining a loyalty card program.

There’s an historical average associated with the annual inspection of each airplane make and model. These are easily found online, and by talking to other owners. AOPA can also assist with resources. Plan on the very first annual being significantly more expensive than you imagined, especially if the previous owner deferred maintenance. A thorough pre-purchase inspection should reveal what other costs may be coming up for which you may have to budget the first time around.

Unscheduled maintenance is a function of how the aircraft was maintained by the previous owner(s). It’s a popular notion that low time aircraft with low time engines are more desirable. The reality is that a well-used aircraft is typically a well-maintained aircraft. That’s because an aircraft that has been regularly exercised has an owner who typically addresses the issues that arise from regularly exercising an aircraft. It becomes a virtuous cycle.

The Cash Reserve The final part of the aircraft operations budget is the cash reserve. We advise that owners keep a 10% to 15% capital fund for unexpected repairs. Liquidity is always important for weathering unexpected events.

Great advice. Great rates. From helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263) or visit finance.aopa.org to request a quote.

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ACTIONABLE INTELLIGENCE FOR BUYING & SELLING

INCLUDING...

How to Work With an Aircraft Dealer or Broker Urban Legends When Buying & Selling Aircraft Tips for Avoiding Buyer’s Regret

BUYING & SELLING AIRCRAFT SPECIAL

Buying&Selling 1 AUG20.qxp_Finance 21/07/2020 11:42 Page 1

BUYING & SELLING AIRCRAFT David Wyndham is executive sales director and acquisition specialist with Par Avion Ltd. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker.

How to Work With an Aircraft Dealer or Broker Should you choose an aircraft dealer or an aircraft broker? What is most important as you select one to buy or sell your aircraft? David Wyndham highlights the right questions to ask…

B

uying or selling aircraft is a complex process that requires many different professionals to be involved in order for it to run smoothly. In addition to finding the right aircraft for your requirements and negotiating the price, there are legal, tax, registration, insurance and other actions that are needed for the successful sale.

Often, the professional at the center of all of this is an aircraft dealer or broker.

According to John Norris, a UK-based aircraft broker with over 30 years in Business Aviation (and Managing Director of Av8Jet since 2006), “A good dealer or broker should help you manage and direct the transaction all the way through delivery.

“If they don’t have the relevant in-house resources, that means bringing together and coordinating the corporate services, escrow, legal, maintenance and other third parties that are necessary to facilitate the sale.”

Defining the Dealer or Broker

For the purpose of this article, we will focus on preowned turbine aircraft. Unlike realtors, there is no 64 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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Buying&Selling 1 AUG20.qxp_Finance 21/07/2020 11:43 Page 2

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state or national licensing requirement to be an aircraft dealer or broker. A person who sells an aircraft for a friend is acting as a broker, as is a professional who stakes their reputation on, and derives their income from, the sales process.

The terms dealer and broker are often used interchangeably, but the two are quite different.

Following are some definitions and considerations…

An aircraft dealer maintains an inventory of aircraft they own. They derive income on the margin between what they paid for the aircraft versus what they are able to sell it for. Most aircraft dealers have a line of credit, or some other external financial backing in order to acquire the aircraft they have in inventory.

Depending on the terms, dealers holding an aircraft in inventory have interest payments and perhaps progress payments to the financial backers.

The leading turbine aircraft manufacturers (OEMs) are often their own dealer. They sell their new aircraft and take pre-owned models in trade.

While the dealer has the aircraft in inventory, they www.AVBUYER.com

must maintain and insure those aircraft.

In contrast, an aircraft broker represents the owner in offering an aircraft for sale and receives a commission – or fee – based on a successful sale.

Most brokers prefer to have an exclusive representation on an aircraft that they are selling (i.e. an agreement with the aircraft owner that they are the only one acting on behalf of the owner in the sale).

A dealer or broker often incurs expenses around the marketing and representation of the aircraft and may incur other sales-related costs such as positioning the aircraft to a different location to offer for sale.

Most if not all aircraft dealers will act as brokers too. The dealer may purchase an aircraft for their inventory, or act as the broker for the aircraft.

There are also buyer-brokers who represent the seller in the aircraft acquisition process. They get paid by the buyer at the successful acquisition. The buyer-broker represents the interest of the buyer. A dealer/broker who acts as a buyer-broker can face a conflict of interest. Whose interests come first –

!

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65

6

Buying&Selling 1 AUG20.qxp_Finance 22/07/2020 15:01 Page 3

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BUYING & SELLING AIRCRAFT

those of the client whose aircraft they are selling or the client for whom they are helping to buy it?

This tightrope can only be successfully walked with full transparency so that all parties know what the responsibilities and commitments are.

Dealers or Brokers: The Right Question to Ask

Whether to use a dealer or a broker is less of a question than picking the right one, says Rick Pitts, President of Jack Prewitt & Associates. (Pitts has amassed almost 30 years with one of Business Aviation’s oldest dealer-broker firms.)

He suggests that working with a dealer or broker is a business relationship that requires trust, objectivity, and transparency. The latter is important as we do not have external certification and licensing in our industry, he stresses.

As a Seller: Whoever represents your aircraft should have in-depth knowledge of the current market. They need to take the time to understand your aircraft, its strong points and its weaknesses, and give a fair representation of your aircraft in the current market.

As a Buyer: Unless you are experienced in the make and model of the aircraft you are looking for (as well as up on the current market trends and pricing) a buyer-broker is worth considering. An Internet ‘for sale’ listing is just the start.

Bill Quinn, founder, President & CEO, Aviation

Find

Management Systems, Inc. has experience that transcends decades as a pilot, dealer, broker, appraiser, consultant and more. “Vetting a broker is critical,” he explains. “Ask questions and get a written proposal from a broker.

“How will the broker position your aircraft in the market place? What is their experience and background with your aircraft make and model?

What do they think your aircraft is worth today?

Do they ask you detailed questions about your aircraft in order to arrive at an acceptable price or range of prices? The broker, or his or her technical representative, should look at the aircraft and records before it is placed on the market. It’s all about building a positive and meaningful relationship.”

In Summary…

Selecting a broker is part business and part personal. They should give you a proposal on your current aircraft based on the market for this aircraft. As a buyer, they should ask you pertinent questions to make sure you have the right aircraft for the mission. The relationship needs mutual trust, transparency and objectivity.

Unless you have had a great experience with someone in the past, it helps to do your due diligence and explore your options. The question is not whether to use a broker or a dealer, but to find the right one that works as a team member to get you a fair deal on the right aircraft for you. ❙

AIRCRAFT DEALERS & BROKERS

66 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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Buying&Selling 2 AUG20.qxp_Finance 21/07/2020 12:07 Page 1

BUYING & SELLING AIRCRAFT Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.

Urban Legends When Buying & Selling Aircraft Rebecca Applegarth discusses some of the popular urban legends surrounding buying and selling business aircraft with Par Avion’s Janine Iannarelli, and Eagle Aviation’s Lee Thomas…

B

uying or selling a business aircraft is a complex process. The last thing anybody needs are added complications that are created by misunderstandings and unnecessary mistakes. These could prove costly in terms of time and money, and even lead to the unravelling of a deal.

It is important, therefore, for buyers and sellers to weed out the myths from the truths in the aircraft acquisition process. But what are some of the prevailing urban legends attaching themselves to the used aircraft sales process, and what are the realities?

Following are some insights from the experts.

Urban Legend #1: You can sit back and let the transaction take its natural course

Highlighting how it’s easy for an aircraft buyer to be lured into a false sense of security, Janine Iannarelli warns buyers against taking a more passive role in the aircraft transaction.

“When looking to buy your aircraft, you may have been told you do not need a salesperson to represent you because you get everything you need from the seller,” she says. “However, this suggests 70 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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that only one person controls the narrative, which should not be the case in any transaction.

“The same applies to buyers who do not feel they need to be on-site for a pre-buy inspection ‘because it is in the hands of an independent third party to evaluate the aircraft’. In this instance, it’s possible that you risk missing something that is said or casually commented on that might prove important later in the negotiations, or (maintenance-wise) missing something you otherwise would have wanted to address now.”

Then there is the related false belief that there’s no need for a pre-buy inspection at all if the aircraft is fresh out of another inspection. “As most contracts call for a buyer to rely on their own inspection, you had better do so,” Iannarelli warns, “even if it is a limited pre-buy inspection.”

Urban Legend #2: You can sell the aircraft yourself

Lee Thomas explains that leveraging the services of a professional will enable you to market your aircraft globally, maximizing the opportunity to obtain the best price. “In today’s market, exposure is www.AVBUYER.com

everything,” he says. “If you are not able to show your aircraft to potential buyers, a sale will be very difficult.”

While some sellers might be tempted to look to their flight department to co-ordinate their marketing efforts, this is not a feasible solution, says Thomas.

“In most flight departments, pilots have tremendous responsibility and simply do not have the time available to give their attention to the extensive work required to properly sell your aircraft.”

It’s far better to invest in the services of a dealer or broker to do the legwork here, Thomas says. “With a sizable annual advertising budget, Eagle Aviation’s listed aircraft can receive the maximum exposure necessary to ensure an equitable sale in as short a timeframe as possible.”

Moreover, timing is critical in aircraft sales transactions, he continues. “A pilot tasked with marketing the aircraft may not be able to return phone calls, follow-up with prospects, disseminate information, or negotiate agreements,” he adds.

“Timely dissemination of information is one of the most critical factors in securing a buyer for a corporate aircraft. By investing in the services of an

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experienced dealer or broker, you’ll benefit from the services of sales professionals who can handle all aspects of the sale.”

Urban Legend #3: The commission to sell your aircraft is too much

In nine out of ten used aircraft transactions, a dealer or broker is involved in representing either the seller or the buyer, Thomas shares. “If you are going to end up paying a commission on the sale, we recommend you invest in the experienced professionals who are looking out for your interest.

“By doing so, you are not only paying for the dealer or broker’s highly capable sales services, but you’re investing in your own peace of mind,” he suggests, adding that the services rendered can help with assisting buyers obtain financing, assembling a team for tax and legal advice, coordinating and monitoring the pre-purchase inspection, filing the FAA documentation necessary to complete the sale, and more.

“You get what you pay for,” Iannarelli adds. “Cheap commissions usually mean less investment of at least one of the key resources a buyer or seller depends upon: manpower. If a broker takes a listing that promises not to be among the more profitable, it runs the risk of not receiving the same amount of attention as their better opportunities.”

“There is in fact plenty of value to the commission you will pay for the services rendered, particularly when you consider the value of your own time that you will save,” Thomas continues.

Urban Legend #4: A brief LOI is better than a more detailed one

The Letter of Intent outlines the understanding between two or more parties that will be further developed in a legally binding contract, says Iannarelli.

“The details can be addressed in the purchase and sale agreement,” she explains, “but failing to detail in the Letter of Intent the points that contribute to the overall monetary value of the deal could lead to collapsed negotiations over the aircraft purchase and sale agreement.”

Therefore, more detail is better than less when it comes to the Letter of Intent.

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Urban Legend #5: Advanced websites must mean experience… right?

Despite a move towards digital platforms over the last few years, the meaning behind the phrase “don’t judge a book by its cover” still stands, and it applies to the selection of which dealer or broker will assist you with buying or selling your next business aircraft.

“It is possible for anyone to create an advanced, professional-looking website to sell and buy aircraft on,” says Iannarelli.

“The look and feel of a broker’s website doesn’t automatically mean they have the necessary expertise to successfully promote your aircraft or manage the sale.

“Ultimately, there is no substitute for an expert’s reliability and knowledge,” she concludes, adding that prospective buyers and sellers should get to know a dealer/broker, not just make assumptions, based on their visible online presence.

In Summary

“A skilled broker can help with assisting buyers obtain financing, assembling a team for tax and legal advice, coordinating and monitoring the pre-purchase inspection, filing the FAA documentation necessary to complete the sale, and more. ”

The above urban legends really do prevail within the used aircraft sales world, and should highlight that it is crucial to have all the information available to you, from the right source, in a timely fashion.

Having the right expertise at your side will prove invaluable to a good experience in the used aircraft marketplace.

More information from www.eagle-aviation.com or www.paravionltd.com ❙ www.AVBUYER.com

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BUYING & SELLING AIRCRAFT

Why Buy-Sell Aircraft Transactions are Necessary

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AVBUYER.com Gary Spivack is a respected aircraft broker whose aviation career spans 38 years. He is President of IntelliJet International, a private jet brokerage and consulting firm he founded in 2005. IntelliJet specializes in the sale and acquisition of Mid-size to Large Cabin LongRange private jets, with extensive experience handling multi-party international transactions.

What is a Buy-Sell Transaction, how does it work, and who benefits from it? IntelliJet’s Gary Spivack offers insights, highlighting why BSTs are necessary for some business aircraft sales…

S

ince at least the 1970s, aircraft brokers have been utilizing what is known as the ‘back-toback’ deal structure to buy and sell aircraft.

This is a transaction in which a broker or dealer (‘Intermediary’) contracts to purchase an aircraft from the seller and, concurrently, contracts to sell the aforementioned aircraft to the end-buyer in order to facilitate the transaction.

Simultaneously, at the transaction closing the purchase price is transferred to the seller via the escrow agent, and title of ownership is transferred to the end-buyer through the Intermediary.

While some in the aviation sales community have become critical of this practice, it would be unfair to treat all back-to-back deals with skepticism. In reality, there are several situations in which the back-to-back structure is the only way to get a particular deal done, as we’ll explore below.

The term Buy-Sell Transaction (BST) is a more accurate description of what actually takes place at closing and is quickly replacing the term ‘back-toback’ in many Business Aviation circles. For the purposes of this discussion, BST will be used rather than ‘back-to-back’ as there are, at times, unfounded negative emotions associated with the latter term.

another, as there are a multitude of country-specific regulations that can affect the title, registration, airworthiness documentation, customs export, etc.

Frequently, a BST is structured in conjunction with an SPV to accomplish the transfer of a purchase contract for a new aircraft (or delivery position) from the delivery position holder to a third party.

While these are the most likely scenarios in which buyers or sellers typically desire a BST, there are other occasions when a BST may be warranted, such as when a foreign party is involved. Many times, a buyer or seller prefers to contract with a trusted broker they have previously done business with rather than an unknown foreign entity they do not know.

Although a BST may be the only way to ensure the success of particular transactions, occasionally there is an elephant in the room – namely the notion that the Intermediary has no ‘skin in the game’.

While it is true that an Intermediary typically does not commit its own financial capital to purchase an aircraft prior to selling it on to the end-buyer, there is usually a great deal more time and effort required of the Intermediary in a BST deal, not to mention the added financial and reputational risk involved.

How can BSTs Benefit Buyers & Sellers?

How BSTs can Benefit the Broker

There are many reasons buyers and sellers may benefit from the structure of a BST as opposed to a traditional commission-based transaction. Most of the reasons center on anonymity. A BST is sometimes employed to unwind a Special Purpose Vehicle (SPV) that was originally created solely to hold an asset such as an aircraft. SPVs are generally quite effective in helping to preserve privacy for buyers and sellers when it’s desired.

A BST may also be utilized to facilitate the transfer of an aircraft from one international jurisdiction to www.AVBUYER.com

While there are many ways buyers and sellers may benefit from a BST, there are also valid reasons for a broker to structure a deal as a BST. The complexity of an average aircraft deal has increased dramatically over the years, as has the time and effort required for each transaction. Conversely, the average profit margin for each transaction has steadily decreased. This means that aircraft brokerages must work harder, investing more capital to maintain profitability and keep pace with fierce competition. More expenditures for dedicated AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

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research and sales personnel, marketing, continuing education (to keep up with ever-changing technology and regulations), and other expenses are necessary just to maintain the status quo.

A BST provides an alternate method of compensation for aircraft brokers, allowing them to maximize their commission in situations where they bring a high level of value to their clients. Moreover, a BST structure prevents a broker’s commission from being diminished (or even eliminated altogether) by an unscrupulous buyer or seller seeking to cut the broker out of the deal.

Experienced aircraft brokers provide a valuable service to buyers and sellers, such as when a broker presents an “off-market” aircraft to a buyer who previously did not even know of its existence or that it was available to purchase. The broker’s value is immeasurable in such a case because the transaction would never have been possible without their expertise and connections that allowed the buyer to uncover the off-market opportunity in the first place.

Avoiding Problems with BSTs

Admittedly, problems may arise if the parties involved are unfamiliar with the BST process or, worse, if they are unaware the deal being negotiated is structured as a BST. Most parties that understand they are entering into a BST will find it agreeable, so long as each party feels it is paying (or receiving, as the case may be) a fair price for the aircraft.

There is a recipe for a successful BST. Generally, the BST process will be much smoother if: • •

Each party knows the transaction is structured as a BST, and Transparency is practiced from the beginning.

The best way to proceed is for the Intermediary to obtain a NonCircumvention/Non-Disclosure Agreement (NCNDA) from the parties on each side of the transaction, allowing the Intermediary to identify the seller and end-buyer to each other (information typically necessary for each party to satisfy the Know Your Customer (KYC) laws).

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“Most parties that understand they are entering into a BST will find it agreeable, so long as each party feels it is paying (or receiving, as the case may be) a fair price for the aircraft.”

Contractual documents may also be shared between the parties to ensure that the rights and obligations of each party are principally equivalent on both sides of the deal, although financial details such as the sale price and deposit amount (and any other information deemed confidential) are typically redacted.

What are the Risks of BSTs?

As with the sale of any valuable asset, there are always associated risks. The BST structure typically gives rise to a dynamic process with strict, tight deadlines. Timing issues are commonplace, especially with cross-border transactions involving different time zones and holidays.

Disputes may also arise over cultural differences and/or inconsistencies between two countries’ banking contingencies, tax laws, or civil aviation

authorities’ regulations and processes.

Whenever such situations occur, the contracting process can easily get bogged down, causing the deal to go sideways.

Brokers who structure transactions as BSTs must be proactive in managing expectations on both sides of the deal and adept at overcoming challenges whenever they crop up.

The bottom line is that by engaging the services of a trustworthy, experienced broker who is well-versed in Buy and Sell Transactions, as well as attorneys who understand the process, most risks can be mitigated and the likelihood for a successful closing will be as high as with any other type of aircraft transaction.

More information from www.intellijet.com ❙ www.AVBUYER.com

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Buying&Selling 4 AUG20.qxp_Finance 21/07/2020 16:58 Page 1

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BUYING & SELLING AIRCRAFT 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

Tips for Avoiding Buyer’s Regret

Don't be one of those aircraft owners who lives to regret their purchase. Dave Higdon shares three key tips to ensure the aircraft you buy is the right one.

L

ong-term satisfaction from a newly acquired business aircraft should be assured before the buyer takes ownership. While a detailed pre-purchase inspection (PPI) should be a given as a part of the process, there's much more to learn about an aircraft that isn’t covered by the PPI. Yet some operators fail to understand this, thereby never giving themselves the best assurance that the aircraft they’re buying will not be the source of regret for months, perhaps years, to come…

The reasons range from a basic lack of time management, to the buyer not budgeting for the costs of access and use to be sure of the aircraft's ability to deliver on their need. Sometimes, there’s a naïve over-reliance on the seller's maintenance team (the same team that has tended the airplane for years) to be the shop to provide the PPI, or a fresh annual inspection for the seller.

Even rookie aviation maintenance technicians should know the downsides to that offer: Familiarity breeds mistakes.

So how can a buyer best protect themselves from regretting their business aircraft acquisition?

According to the industry veterans polled for this article, the three keys to long-term satisfaction include: • • • 78 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

A satisfying, mission-accurate demo flight; A technical systems assessment; and A ‘smile-making’ deal.

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Buying&Selling 4 AUG20.qxp_Finance 21/07/2020 12:32 Page 2

BUYING & SELLING AIRCRAFT

Step 1: The Mission-Accurate Demo Flight (or two)

At the top of the consensus list is the need for something more than a demo flight, and instead a flight that is structured for the prospective buyer (and related users) to get a feel for the aircraft.

Demo flights lasting between 45 minutes to an hour, out and back, are more akin to an automotive test drive. A full-spectrum mission assessment flight should necessitate taking the airplane for a day or two and flying several mission profiles that the prospective buyer specifies.

Those missions should cover all of the routine uses that are expected of the aircraft after closing.

The goal is to become familiar with how well the systems work for the company’s missions; the comfort and quality of the interior accouterments; and finally, the overall deal.

Step 2: Systems Assessment

How well does the galley meet with your need? Will it support the needs during a maximum-passenger trip, or provide storage space for catered food delivered to the aircraft before departure? Do all ovens and/or heated storage spaces work? How about the cold storage for beverages, and the coffee machine?

Does the in-flight connectivity service meet with your needs? If the system supports voice calls, do those calls come through clearly, with ample modulation volume and clarity? If equipped to receive satellite television, does it work as expected? What special skills or knowledge does the in-flight entertainment system require to operate?

And you shouldn't neglect to check the lavatory facilities installed in the aircraft. Can the fresh-water supply support the maximum-passenger, maximumrange trips within the aircraft’s performance envelope, for example?

On the subject of performance, how well does the aircraft compare with the book performance numbers for the make and model? Is demonstrated climb, cruise and fuel efficiency within the margin for error, with numbers corrected for ambient conditions both on the ground and at altitude? Did the aircraft's runway performance reinforce the book numbers?

The flight deck also needs verifying. Your flight crew should sample the systems to make sure the database software is current, along with all other upgradable software. Do the panel displays perform well? How about the VHF radios, communication and navigation systems?

Returning to the cabin, do the seats feel inviting and comfortable even after several hours sitting at the folding table of a club-seating section of the aircraft? If the seats move and recline, do the controls work smoothly and easily, or does turning 80 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

“...the most-savvy buyers typically enlist the help of a finance professional to assess the quality of the deal and its financial implications.” around one seat block access to the aisle or storage spaces?

Larger business jets often include cabin seats that are capable of converting into a sleeper bed. If that’s the case on a jet you plan to buy, how easily is it to convert a seat into a bed and return it to its normal seat position?

Does the cabin offer connections to charge cell phones, tablet and notebook computers, and if so, how many? Do these power connections have any limitations, such as the number of people who can simultaneously use a USB charger, for example, or be connected to the in-flight Wi-Fi? And with a thought to cabin comfort, does the fresh-air circulation system do a good job – or does airflow diminish with a full cabin? How noisy is the main cabin? Is conversation difficult?

These are several, but certainly not all points for consideration in ensuring you experience no buyer’s regret in your new business aircraft. They should serve to highlight the need to make the most of the opportunity to ask the right questions, and test the answers. www.AVBUYER.com

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Step 3: The Quality of the Deal

Too often people want to put this ‘Step’ first, but if the aircraft disappoints then even the best deal is unlikely to overcome the frustration and dissatisfaction discovered when examining the first two points. But assuming the first two steps have been satisfied, what exactly makes a ‘good deal’?

Some of the factors include: • • • • •

The price of the target aircraft; The value of any trade-in aircraft; How much of a down payment the finance institution requires (if applicable); The interest rate on any loans taken to finance the deal (if applicable); and The tax implications of the transaction.

t ad ore ou Re M Ab

www.AVBUYER.com

While the prospective buyer (and their staff) may be the best people to assess the aircraft for the first two steps, the most-savvy buyers typically enlist the help of a finance professional to assess the quality of the deal and its financial implications.

With so many options in tax treatments the best recommendation is that the company's CFO or staff accountant – someone familiar with the customer company's situation and transaction practices – should be involved in making the financial assessment from the start of the search process.

While bonus depreciation may be available for a pre-owned business aircraft, using that deduction all at once may not be in the buying company's best long-term interest. Only the buyer's financial experts should be tasked with making that call… ❙

AIRCRAFT OWNERSHIP

at AVBUYER.com

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BUYING & SELLING AIRCRAFT

Buying & Selling Jets: Using a Broker’s Network When assembling your buying or selling team, which team members will the broker traditionally add value by recommending, and which can the buyer/seller expect to source for themselves? Jet Tolbert shares insights…

T

• • • • •

here are essentially five areas of the aircraft transaction relating directly to both the seller’s and buyer’s side. These are:

The market and transactional aspects (typically managed by a broker); The legal aspects (managed by an aviation attorney or general counsel for the end user); The operational side (managed by an aircraft management company or aviation department manager, as applicable); The maintenance (managed by the management company’s director of maintenance, or flight department’s director of maintenance, as applicable); The tax aspects (requiring the CPA or CFO and an attorney).

If the right aircraft broker is selected to represent your interests, they should be able to work well with your team while also having the extensive network, the resources and the experience to refer specialized professionals to meet their client’s need where necessary. This can prove 82 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

invaluable to the successful closing of an aircraft transaction.

While an aircraft buyer or seller may have dealt previously with the professionals they plan to use, those professionals may not be experienced in aircraft transactions (or the unique pitfalls and challenges that can arise in the process).

Moreover, many of the more capable professionals available to assist them may not be on the buyer’s or seller’s radar, limiting the options for assembling the best transaction team available to them.

Other contacts may be available who can advise existing team members on the aircraft sales process, helping to ensure their area of the transaction is managed more effectively. It is therefore important for buyers and sellers to keep an open mind when assembling the team to represent them.

One of the keys is to partner with a broker who demonstrates they have the experience and relationships necessary to support and advise the team, as needed. For example, a broker might add technical expertise not only with regard to the aircraft but also understanding how to engage the different personalities, negotiating tactics and legal exposure.

!

www.AVBUYER.com

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What to Look for in Team Members

Even aviation-savvy corporations with long histories of aircraft ownership turn to outside professionals for expertise during the purchase or sale of a business aircraft. Many have learned from experience how time-consuming and expensive the process can be when the wrong details are focussed on.

As the old saying goes, ‘it’s better to measure twice and cut once’. Having the extra pair of eyes that an aviation specialist provides for your in-house team goes a long way.

Following are some of the areas of expertise a wellconnected broker should be able to assist with.

The Attorney: A good broker should be able to refer a Board Certified Aviation Law Specialist regarding the contract and closing documents. The aviation attorney should have the resources available to advise quickly and efficiently about contract structure, avoiding the pitfalls associated with a bad deal. They should keep the deal moving quickly without unnecessary hold-ups.

A good attorney knows how to manage their clients’ risk.

If a broker proves weak and makes mistakes, the attorney will understandably feel the need to become more involved in the transaction, incurring unnecessary legal fees.

The Tax Consultant: This team member should work closely with the attorney, and in some cases may even be the aviation attorney. A good tax adviser will have the research available, and be able to present ownership and leasing structures that meet the client’s need, as represented by the client’s in-house tax professionals.

The Operations Team: Depending on the size of the aircraft, the flight department should include a chief pilot as well as a director of maintenance (or an aircraft management company). If not, however, the chosen broker should be able to work with the existing team, or – if required – refer a captain, director of maintenance, or Management Company to suit their client’s specific operational needs.

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It may be that the broker has an in-house director of maintenance available to assist the client in-person during the inspection and return-to-service of the aircraft, and also assist with transitioning the aircraft from one flight department to the next.

The Escrow Agent: It has become common practice in the US and abroad to use escrow agents to hold funds, and to keep one record of documentation regarding the transaction with FAA filings (in US transactions). Escrow fees are paid at the transaction’s closing, or a very small fee is paid in the event of an unsuccessful sale. A broker can assist with connecting buyers and sellers with competent escrow agents.

The Lender: In the event a buyer chooses to finance their aircraft acquisition, a broker will be well placed to help them discuss their options (business bank, private bank, or other aviation-specific option), and can recommend suitable lenders.

In Summary…

Aircraft transactions can be complex processes. The aircraft broker can add extra value for their client through access to their network of professionals and experts, ensuring no gaps remain in a buyer’s or seller’s armor, and a smooth, satisfactory deal is completed.

More information from www.americanaircraftsales.com

❙

Jet Tolbert is President of American Aircraft Sales.

Established in 1968, it is a premier brokerage firm which has been a trusted partner since corporations first began utilizing jet aircraft to grow their businesses. With offices in the US, a Latin America sales team and a partner office in Zurich, Switzerland, American Aircraft Sales is an active NBAA, IBAC, EBAA & AsBAA member.

www.AVBUYER.com

Values Intro Dec19.qxp_Finance 21/07/2020 17:03 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

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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 2001 through Summer 2020 (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 Beechcraft King Air 250 reported in the Summer 2020 edition of the Bluebook shows US$3.2m for a 2015 model, US$3.0m for a 2014 model, and so forth. Aircraft are listed alphabetically.

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Retail Values April2020.qxp_RPG 21/07/2020 09:52 Page 1

VALUES - TURBOPROPS

Turboprops: Average Retail Price Guide MODEL YEAR $

2020 US$M

2019 US$M

2018 US$M

2017 US$M

6.40

5.00

4.70

5.00

4.50

3.80

2016 US$M

2015 US$M

2014 US$M

4.40

4.10

3.60

3.40

3.20

3.00

2013 US$M

2012 US$M

2011 US$M

3.30

3.10

3.00

2.90

2.80

2.70

2.70

2.60

MODEL BEECH KING AIR 350i BEECH KING AIR 350 BEECH KING AIR 250 BEECH KING AIR B200 BEECH KING AIR B200GT

2.60

BEECH KING AIR C90GTx

3.20

2.90

2.60

2.40

2.20

2.10

1.90

1.85

1.80

CESSNA 208 CAR G1000

2.20

1.80

1.75

1.725

1.70

1.675

1.65

1.60

1.55

CESSNA 208 GRAND CAR EX

2.40

2.35

2.25

2.20

2.15

2.05

1.95 1.75

1.65

1.75

1.65

1.30

1.20

1.10

2.30

2.15

2.05

BEECH KING AIR C90GTi BEECH KING AIR C90GT BEECH KING AIR C90 CESSNA 208 CARAVAN

CESSNA 208 GRAND CAR

1.875

CESSNA 208B GRAND CAR CESSNA 208B SCM EX

2.15

2.10

2.00

1.90

1.80

CESSNA 208B SCM G1000 CESSNA 208B SUPER CARGOMASTER DAHER (QUEST) KODIAK 100 DAHER TBM 930

5.60

DAHER TBM 910

1.90

1.80

1.70

1.60

4.00

3.90

3.70

3.40

3.80

3.60

3.50

DAHER TBM 900

3.20

1.50

1.40

3.10

2.80

SOCATA TBM 850 SOCATA TBM 700C2/EFIS SOCATA TBM 700C2 SOCATA TBM 700B/EFIS PIAGGIO AVANTI P.180 PILATUS PC-12 NGX

5.353

PILATUS PC-12/47E NG

5.018

6.10

5.50

4.50

4.00

3.50

3.00

2.70

3.70

3.60

3.50

3.40

3.30

1.40

1.30

1.20

1.175

1.125

4.50

4.30

4.10

3.90

PIPER M600

2.65

2.30

2.20

2.00

PIPER M500

1.85

1.75

1.65

1.55

PILATUS PC-12/47 PILATUS PC-12/45

PIPER MERIDIAN PA46-500TP

AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM

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www.AVBUYER.com

Retail Values April2020.qxp_RPG 21/07/2020 09:52 Page 2

AVBUYER.com

What your money buys today

Summer 2020 2010 US$M

2009 US$M

2008 US$M

2007 US$M

2006 US$M

2005 US$M

2004 US$M

2003 US$M

2002 US$M

2001 US$M

2.90

MODEL YEAR $ MODEL BEECH KING AIR 350i

2.80

2.70

2.60

2.50

2.40

2.30

2.20

2.10

2.00

BEECH KING AIR 350 BEECH KING AIR 250

2.00 2.50

2.40

1.90

1.80

1.70

1.60

1.55

1.50

2.30

BEECH KING AIR B200GT

1.75

BEECH KING AIR C90GTx 1.65

1.60

BEECH KING AIR C90GTi 1.50

1.275 1.50

BEECH KING AIR B200

1.45

1.225

1.45

1.175

BEECH KING AIR C90GT 1.30

1.25

1.20

1.15

1.10

BEECH KING AIR C90

1.075

1.05

1.00

0.95

0.90

CESSNA 208 CARAVAN

1.30

CESSNA 208 CAR G1000 CESSNA 208 GRAND CAR EX

1.575

1.525

1.40 1.375

CESSNA 208 GRAND CAR 1.325

1.25

1.125

1.075

1.05

1.00

0.95

CESSNA 208B GRAND CAR CESSNA 208B SCM EX

1.55

1.00

1.50

0.95

1.40

CESSNA SCM G1000

1.35

1.30

0.90

0.85

1.25

1.20

1.15

1.10

1.05

1.00

CESSNA 208 SUPER CARGOMASTER DAHER (QUEST) KODIAK 100 DAHER TBM 910 DAHER TBM 930 DAHER TBM 900

1.95

1.85

1.75

1.65

1.55 1.45

SOCATA TBM 850 1.35

SOCATA TBM 700C2/EFIS 1.30

2.50

2.10

1.80

1.60

1.50

1.45

1.40

1.25

1.35

SOCATA TBM 700C2 1.20

1.15

SOCATA TBM 700B/EFIS

1.30

1.25

PIAGGIO AVANTI P.180 PILATUS PC-12 NGX

3.20

3.10

3.00 2.80

PILATUS PC-12/47E NG 2.70

2.60

PILATUS PC-12/47 2.50

2.40

2.30

2.10

2.00

PILATUS PC-12/45 PIPER M600 PIPER M500

1.075

1.05

0.95

0.85

0.80

0.75

0.70

0.65

0.60

0.55

PIPER MERIDIAN PA46-500TP

AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM

www.AVBUYER.com

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Flight Dept 1.qxp_Finance 21/07/2020 10:04 Page 1

FLIGHT DEPARTMENT MANAGEMENT With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer.

Flight Departments: Getting More From Supplemental Lift To ensure customers are not let down it is advisable to have back-up options available, including the use of other operators to help you out, as Andre Fodor explores...

O

ne of the most interesting corporate aviation missions I was part of happened while I was a United Nations pilot stationed in Africa. A peace agreement was to be signed following months of negotiations.

The multi-part agreement involved warring factions, neighboring nations and some unofficial militias.

Due to the complexity of the agreement and the historical distrust between the factions, a very strict and specific sequence of events entailed the signing of this pact at each seat of government.

Adding to the challenge, because of an obscure international law the U.N. determined that everyone had to sign the document within a twelve-hour period.

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This made our role of airlift critical to the success of the endeavor, and to the future peace of the region. In recognition of the importance of the task, we placed backup aircraft and crew at critical locations to assure continuity should an aircraft or crew fail.

That contingency plan paid-off after the primary aircraft suffered an engine malfunction due to foreign object ingestion. The back-up aircraft completed its mission and the deal was signed in the required time-period.

Years later, working as a demonstration pilot for a major aircraft OEM, I would often be asked about aircraft reliability by prospective buyers. It was important to educate the buyer that the expectation of having 100% dispatch availability will only ever be www.AVBUYER.com

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possible with purchase of the right aircraft for the mission, plus a form of supplemental lift in place.

I would explain that even without any unscheduled maintenance issues, aircraft undergo inspections and scheduled maintenance that eats into their availability. That is especially so when aircraft age and inspections take longer to complete. A wise flight department will anticipate these interruptions and have a ready solution lined-up.

Building the Case for Supplemental Lift

While it can be awkward to discuss supplemental lift with the company principal, most chief pilots that I know also oppose having somebody else do their flying. They fear that it could lead to their aircraft being sold and jobs lost. In my experience, this fear is mostly unfounded if the flight department is committed to excellence.

The reality is that companies wholly-own aircraft because they want full ownership and control of their schedule. Whole ownership comes with the www.AVBUYER.com

expectation of unequaled service, however.

When focused on excellence, a flight department should have little to fear when supplemental lift is needed to fill in sometimes.

Moreover, successful people react well to tangible data. If you prepare a planogram depicting how scheduled maintenance and unexpected AOG may impact aircraft availability will help clarify the case for supplemental lift.

And if the aircraft is being used as a critical business tool, your company’s strategy team should provide data helping quantify the need.

Of course, there can be other reasons for supplemental airlift, too (such as when corporate guidelines do not allow the company’s leadership team to fly together).

Having established and agreed the need for supplemental lift, the question turns to the type of supplemental lift that best fits the need.

Charter, Fractional Ownership and Jet Cards are all appropriate options, and we’ll look at the pros and cons of each here…

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Fractional Ownership

This form of airlift provides a couple of components that can be attractive. For example, you actually purchase ‘real estate’ in the form of a percentage of an aircraft with fractional ownership. This has a resale value, a depreciation component and management costs.

The fractional ownership provider manages the experience, and a Master Interchange Agreement gives you the ability to fly a network of other aircraft within their fractional fleet.

By owning a fraction of the aircraft, you’re assured of a set number of hours’ utilization per year. And because you are an owner, typical call times are shorter - giving you more flexibility in the case of a last-minute AOG. However, you’ll also pay an hourly cost to fly and a monthly management fee. Fractional owners will typically pay higher hourly costs (than charter users), but there are no positioning fees. For those with a good idea of their annual hourly usage requirement, and the need of an asset to depreciate for tax purposes, fractional ownership could be a good supplemental route to take.

Jet Cards

Jet cards are essentially a sub-product of fractional ownership companies. These work like debit cards where you pre-pay for a certain number of hours.

Because of large fleets, fractional providers have an inventory of unsold shares that can be used for jet cards.

Unlike fractional ownership, however, you will have longer call-out times, less access to aircraft during peak periods, and higher utilization fees and a fuel surcharge. Similar to fractional ownership,

ad re Re Mo

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though, there are no empty-leg positioning costs, thanks to the critical mass of the provider’s fleet size.

You should be aware that if you use a jet card, though, the hours you purchase have an expiration date – so you need to be sure you use what you pay for, otherwise you will lose those pre-paid hours.

Charter

To reliably use ad hoc charter as a supplemental lift solution, you will need to develop a relationship with a broker that has a thick list of contacts.

Sourcing charter on a last minute basis can be challenging, and charter companies can often be limited to operating regionally, servicing the area where their fleet is based.

Having a broker with the ability to source from other operators is essential to finding a flight when you’re far from the home base with an AOG situation (for example).

With charter, you must do your own due diligence, ensuring the operator, aircraft and crew are legal. Moreover, you will need a form of secured credit for funding last-minute charter. And, finally, keep in mind that you pay for all repositioning legs until the aircraft returns to its base.

In Summary…

Supplemental lift is yet another tool in the arsenal of an effective aviation manager, and should be incorporated into the annual budget with its use identified in your flight department’s standard operating procedures.

It is not there to replace the flight department. It is merely, but vitally, a complementary tool helping you meet the demands of high-end private aviation transportation services. ❙

ANDRE FODOR ARTICLES

at AVBUYER.com

www.AVBUYER.com

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Flight Dept 2.qxp_Finance 21/07/2020 10:15 Page 1

FLIGHT DEPARTMENT MANAGEMENT Mario Pierobon is a safety management consultant and content producer. He currently is working on a research project investigating aircraft ground handling safety. Contact him via marioprbn@gmail.com

How Operators and Trip Support Services are Evolving The requirements of business aircraft operators in terms of aircraft preparation before a flight, and the market that caters to these requirements, have evolved rapidly over recent years. Mario Pierobon explores how service providers are adapting to operator needs...

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oday, business aircraft operators have access to more information and options than ever before helping to optimize service delivery and timelines. This is, of course, good news, since the aircraft operator is also legally responsible for ensuring that a flight can operate safely from Point A to Point B. It is also the responsibility of the operator to identify and use the best available data, expertise and resources from among multiple sources and third parties to support that goal. “Depending on whether an aircraft is flying under private or commercial rules the requirements might differ, but in broad terms they are the same,” says Robert Baltus, COO, European Business Aviation Association (EBAA).

“The actual flying might have only changed slightly over time, but the rules, regulations, and 94 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

security measures have increased and they have made the preparation of a flight more complex.

“At the same time IT technology and mobile applications have made it possible for flight crews to get the information straight from their operations centers,” he adds.

“The role of the ground handler has been identified as a crucial component in ensuring the safe arrival, parking and departure of the aircraft, its passengers, and crew. In view of this, the procedures and training of ground staff has become more professional over the years.”

But what does this look like in practice for operators seeking the most sophisticated, safetyfocussed services in today’s market? According to Oleg Kafarov, director of portfolio development and corporate communications at Jetex, new smart technology offers more flexibility and facilitates www.AVBUYER.com

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advanced operational planning.

“Ground handling teams start working long before the flight, to understand payload requirements, analyse the best route, obtain the necessary permits, as well as fuelling, catering, flight briefing and other elements of a successful trip,” he notes. “All of this is facilitated by efficient, real-time digital communication between all departments.

“Today more than ever we are committed to facilitating smooth and seamless international travel regardless of its complexity.” This is just as well, because according to Carlos Schattenkirchner, director of UAS China, the expectations of the end users have increased.

Operator/Provider Partnership

“The operators who used to make service provider decisions, based on the price of the fuel, are increasingly looking for more of a partnership with providers who share the same level of commitment to the SMS systems they have spent time, energy and resources implementing in their own flight departments,” Schattenkirchner says.

“These operators understand that their biggest risk factors are tied to the providers they choose to partner with in the most dynamic of operating www.AVBUYER.com

environments,” adds Henry LeDuc, UAS regional operations manager.

The handling processes have also become more standardized. Standards and certifications such as IBAC’s IS-BAH, Training Standard, and Safety First are becoming widely recognized and are important identifiers for operators to more easily identify likeminded partners.

“Because there is no standard governing body for ground handlers, these standards are helping to transform the service-end in a similar way that ISBAO had on the individual flight departments,” says Schattenkirchner.

Communication is another evolving expectation.

“Each of the flights are becoming more complex,” LeDuc explains. “There are more entities that are involved in each operation. Especially in the ‘age of COVID-19’, there has been a greater need for effective coordination than ever before.

“Successful collaboration with government agencies, ancillary services, and crew members is key to an operator’s success,” he continues.

“Integrity and compliance are critical in today’s business world. This factor has played an increasing role over time, and having a partner who understands local requirements and has an effective

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“...having a partner who understands local requirements and has an effective relationship with the local entities can keep operators out of trouble and on time.” relationship with the local entities can keep operators out of trouble and on time.”

Damage Resulting from Ground Handling

While it’s difficult to derive accurate data on damage caused during ground handling (no central database exists), based on research conducted by IBAC, approximately 1,020 incidents were captured, though not all involved Business Aviation.

A high percentage of these resulted in aircraft damage, Baltus notes. “Of these events, 48% involved an aircraft coming into contact with ‘something’ on the ground; 40% of the incidents occurred when the aircraft was ‘parked’ and in the care of the ground handling service provider.

“This is a very small snapshot of what we believe to be the real figure, and one insurer shows the average incident damage (for our sector) to be in the region of US$125,000 over the past 16 years, meaning the cost to industry could be upwards of $28m per year in direct costs,” Baltus continues.

“Many organizations do not want ‘their’ mishaps published, so keep them in-house,” Simon Wade, regional safety manager, Universal Aviation explains.

“Most ground mishaps occur during the ground movement and towing process and are commonly attributed to policy not being followed.

“Usually it’s a lack of wing walkers deployed around the aircraft during the towing manoeuvre that leads to collision with other aircraft or structures.

Increased training, monitoring and staff adherence to ad re Re Mo

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policy have all helped reduce the mishap rate to low levels,” he says.

Utmost care and vigilance should be taken whenever handling an aircraft, says Kafarov. “As in any operation, rare accidents could occur. But this is not common. Team members should be consistently trained, audited and have a system in place to easily report near-misses or other suggestions.

“It is vital to continuously communicate, train and monitor operations at all times,” he adds.

Overall, Schattenkirchner and LeDuc agree, due to the increased training standards the risk of aircraft damage on the ramp is relatively low. “Due to the potential operational impact and the cost an incident can incur, the commitment to explore better, safer ways are well worth the effort,” LeDuc adds.

“Increased congestion as well as the elevated number of movements on the ramps have added to the risk level, and these are important factors to consider,” he continues. “Ensuring an appropriate number of personnel for movements and proper equipment will help to reduce your risks.

“Thankfully, due to organizational diligence and training, aircraft damage is extremely rare compared to the total number of legs,” he concludes.

Next Time…

Next month we’ll continue our discussion with a look at how operators are selecting their trip support providers to help them achieve the highest standards in operational safety… ❙

FLIGHT DEPARTMENT MANAGEMENT ARTICLES

at AVBUYER.com

www.AVBUYER.com

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19-0592 / 07-2019

Avionics AUG20.qxp_Finance 21/07/2020 11:13 Page 1

AVIONICS

The Best Way to Upgrade Your Cabin Electronics (Part 2)

Ken Elliott reviews cabin electronics upgrades, with a focus on retrofit. Having previously discussed the planning phase, this month we consider the integration of new cabin systems into an aircraft…

I

ntegration of cabin systems is a complex affair and it may be best not to assume anything when dealing with it.

There is a popular mantra used in aircraft certification that fits well with cabin integration – this is the double step of verification and validation.

Verify and Validate…

Regarding cabin systems, determine what it is you are aiming to achieve, provide and install it, and then test it against all of your targets. This is the verification. What you were aiming for will be validated when you know all of your targets were completed as you had intended.

While this may sound straightforward enough, you would be surprised how many times there’s a disconnect along the way either because something was misunderstood or it was overlooked.

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involved. Be sure to include every custom item in your validation check.

OEM vs Non-OEM MRO

Assuming the work is neither an aircraft Original Equipment Manufacturer (OEM) upgrade nor a simple install, there are likely to be specific technicalities that are aircraft type and serial number-specific for an avionics shop to understand, when working within the cabin.

An OEM designs and develops a cabin interior over months or even years, working back and forth with vendors. Their designs are intended to be offered as several options on all aircraft of a single type. To refurbish and improve the cabin later is an easier process for those who hold the design data.

Non-OEM Maintenance Repair Organizations (MROs) can struggle to acquire data and existing records for an interior completion. That is a disadvantage but (on the other hand) their nimbleness, flexibility and capability to provide unique custom upgrades is well understood in the marketplace. www.AVBUYER.com

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A

FIGURE A: The Customer Engagement Cube

Customer Engagement

For customers struggling to understand the complications of upgrading their cabin electronics and systems, there is a gap between what is sold as the product and its integration. This gap is exacerbated within the MRO when sales, engineering and installation teams have different perspectives on the finer points of a project.

That is why it is so important for the customer to be represented and embedded within the MRO before, during and upon delivery of a cabin upgrade. Even the best of facilities reveal gaps where brochure promotional features do not quite match up to reality.

Just as customers need to be involved in planning, they also need to engage during all steps before the aircraft moves into the hangar at the MRO. Even a site visit may be wise to work through the project with an onsite team before a deposit is paid (especially when multiple MRO disciplines are to be involved).

By monitoring the installation of a project both beforehand and while it is in process, the progress is regularly verified and validated to the intended design. Just a simple matter of an incorrect switch location, or an outlet at the wrong place in a dado panel, can emerge as an inflight headache for the owner.

Sometimes installers are unable to fully grasp ergonomic considerations because they are not flying in the cabin themselves.

For a typical cabin electronics upgrade the customer should be continuously engaged. Figure A (depicting the Customer Engagement Cube) shows at least six touch-points before, during and after a project.

Allowing for delay and schedule change

What are the disciplines of the MRO that will be involved in your aircraft upgrade? www.AVBUYER.com

•

•

First, it is likely the potential lengthy downtime will entice you to include other work. (This may extend to engine, accessories, airframe and paint work, so imagine the coordination required to make that happen Then consider the juggling required, if just one of those disciplines incurs a delay, a problem, or an unanticipated change in work scope.

Third Party Involvement: A significant consideration for downtime (and other aspects), will be third party work. A great example during a cabin upgrade is plating. If you change or modify a switch panel, it will invariably involve some type of plating to match the existing trim. Plating is usually an external service and requires scheduling.

Another example of third party involvement is certification.

Most shops have onsite certification capability, but some require outside expertise. Larger MROs need to serve satellite facilities (where your aircraft may just happen to be). Certification personnel will need to schedule their visits and travel to the site.

If a project is delayed for any reason, there may be a scheduling conflict to deal with.

Mitigation of Surprises: Experienced customer representatives know to allow more time for a cabin upgrade than that suggested by the MRO. They also know to be flexible when things just do not work out as planned. They know that it is wise to have a backup aircraft or an alternate plan ready for several days after the intended delivery date, just in case.

An installation may be finished on time, but it could then exhibit delivery issues during verification testing. While owners and their representatives do not like surprises, especially when they involve bad news, monitoring progress on-site mitigates that possibility.

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A

FIGURE B: The Integration Team

The Integration Team

An average corporate aircraft cabin upgrade requires the skillsets of several experts in an integration team and not one of them is any more important than another. Following is an example of an integration team you can expect to be involved with your aircraft.

Avionics Sales Manager: This person, having sold the product, will ‘own’ the project. Customers may have questions suitable for the aircraft integrator, but they will ask the sales manager because that person is their contact, relationship, comfort and trust point in the deal.

Avionics Installers: The installers assemble wire harnesses, run and terminate them in the aircraft, mount the hardware, and then verify their work to engineered prints.

Sheet Metal Mechanics: Cutting and shaping metal and other material to accommodate changes, the sheet metal mechanics will work from detailed structural drawings.

Interior Specialists: Designing and making changes to – or adding new – interior materials and hardware, interior specialists may add switches, panels and lighting (for example) to Personal Service Units (PSUs), woodwork, bulkheads and other surfaces, and alter carpets as well as sidewall/baggage lining.

These specialists and other team members will also participate in the Removal and Reinstallation (R&R) of existing/new interior.

They will work to a schedule, so that nothing is reinstalled until it needs to be, preventing potential damage.

Avionics Repair: Because they are skilled and qualified, it is common to involve avionics repair shop personnel in checking out the final installation. Typically that includes testing existing systems, updating databases and undertaking inspections if added to the cabin tasks.

Engineers: There are two design engineering disciplines involved in the cabin upgrade. These are electrical and structural. Both will work closely together and will be tied into the integrators on the team. The engineers create prints and drawings from which the integrators craft their work.

Engineers are versed in what you can and cannot do, based on regulation, standard practice, and sometimes experience.

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Because the engineer designed it, you will often find an engineer in the cabin during final testing.

Certification: Those who certify often originate from an engineering role, as (for example) does the Designated Engineering Representative (DER). They have the final say on approvals and without their early buy-in to the project, the process can unravel very fast.

Major installations include periodic certification reviews for this very reason. During a Supplemental Type Certificate (STC) project reviews are used as milestones, both for the MRO engineering and the certification authority from the aircraft’s country of registration.

Customer Service Representative: The liaison person between the integration team working on the project and end customer representation, this person may not be an avionics or systems expert, but they play a crucial role in communicating the progress of all tasks being undertaken, any issues that arise and delivery arrangements.

The integration team needs to work together, collaborating on a daily basis, supported by regular progress meetings. Other disciplines will tie into the Integration Team as needed, such as paint specialists for touch-up and external paint refinish after an antenna installation.

How Does a Cabin System Installation Typically Progress?

Preparation: After the initial contract for a cabin upgrade has been finalized, with dates established, it is strategic to focus on ordering equipment or parts with a long lead time. This is also the time to line up the certification team and schedule third party requirements of any kind.

It may take some time for engineering to complete their work, because of priorities and workload, but it will be helpful to conduct a few early meetings to ensure time sensitive work and materials are prioritized.

Installers look for pre-build harness and structural instructions. These come out of engineering, so there is always a certain amount of pressure on designers to perform well ahead of aircraft input. Today, it is common for MROs to use harnesses that are custom manufactured to satisfy most of their pre-build needs. This frees up hard-to-find installers, allowing them to concentrate on in-house projects.

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For the customer it is helpful to understand the overall preparation process. This ensures you will be listened to, respected for your knowledge, and understood later on.

Input: Upon the arrival of an aircraft it would be a smart move for the MRO to do a thorough incoming inspection before any work commences. The facility needs to know the actual condition of the interior and functionality of cabin systems, especially those that will remain.

Make sure there are photographs of everything before opening up an interior or removing existing systems. Include pictures of all equipment, switches and controls, wire runs, circuit breakers, relay and junction panels.

The facility should immediately relay all findings relating to the incoming inspection to the owner. This is the time to discuss additional work and cost, not half way through the project.

Pay Special Attention to: One area that deserves particular attention is the location of antennas and anything related to bulkhead feedthroughs. The former can turn into a major structural engineering issue very quickly. The latter, involving wire runs, can impact both structural engineering needs as well as harness pre-build.

•

•

Antennas: These need to be free of electromagnetic interference from other antennas and devices. To relocate an antenna requires several engineering and structural considerations, all of which can impact downtime and cost.

Structural Bulkheads: Regarding the bulkhead work, one cannot punch a hole for routing anywhere they wish.

Fuselage bulkheads are considered primary structure and receive special attention when their structural integrity could be compromised. The location of wiring and other feedthroughs must be carefully evaluated.

In Progress

Any project, however small or large, should include milestones.

These provide the aircraft owner with clues as to potential delays. Remember there are several ongoing parallel activities besides the project integration itself. These include: • • • •

In house interior modification or paintwork Third-party modifications, service and upgrades Equipment and parts delivery In-progress engineering (included changes)

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• •

A

Other aircraft inspections, service and repair work Certification

Customer representatives cannot always be on site, so it may be difficult to closely monitor progress. Continuous noticeable activity should be apparent on the aircraft or a good reason provided, as to why not. Facilities will move technicians and installers between various hangar activities for all sorts of reasons but, understandably, for each customer their own aircraft will be the highest priority.

Most major MROs have rooms available for daily use by customer representatives while an aircraft is undergoing work.

Representatives who find a way to conduct their business using these offices will have an advantage within the MRO.

Completion and Delivery

Upon completion of the integration tasks, there are three groups of interrelated activity to accomplish, including: • • •

Certification Checkout Reinstallation of Interior & Delivery Preparation

Certification: There are two sub-phases to certification; system validation and aircraft release (Return to Service). System validation typically employs engineering DERs, including third party personnel, while aircraft release involves the inspection department who are focused on the aircraft as a whole. Their release is final and is subject to a satisfactory sign off from the DERs. Checkout: The function testing or verification of systems installed or modified is termed ‘checkout’. Everything needs to be programed, function tested to the manufacturer’s specifications and recorded as meeting all airworthiness requirements.

Checkout may include both ground and flight test phases, even for a cabin modification. Good examples of why flight testing a cabin upgrade is a good idea include: • • •

Antenna installations or relocations for flight performance and no interference.

Bulkhead feedthrough integrity (re. possible loss of pressurization).

Cabin systems performance in flight compared to on the ground.

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• • •

A check for potentially loose interior items by exercising cabins during flight.

Exercising satellite and air-to-ground technology.

Ergonomics are best evaluated in flight.

Reinstallation of Interior

Reassembling the cabin, followed by delivery preparation, should include customer participation as much as possible.

Often aircraft are delivered with either something missing (not safety- or aircraft release-related), or assembled not as existing.

Having the client’s eyes on delivery progress can be very beneficial as a collaborative effort.

For the delivery itself (and if flight testing) pilots will also need to be on hand. This is the golden opportunity to familiarize the flight crew with all cabin changes since they are the ones who are questioned on system functionality, limitations and any idiosyncrasies during trips following delivery.

Certification

The actual ‘ins and outs ‘of certification are complex and can be challenging for an operator to comprehend – so trust and patience will be an asset. There are many documents to complete, and many approvals to seek. Table A offers a sampling of these, but is by no means comprehensive.

Further, if an STC is required the certification becomes a whole different matter. An STC will drive both downtime and delivery. It involves multiple steps and milestones which are closely monitored by the airworthiness authority or their designated representatives.

Provisioning

Finally, because of future features and customer requirements aircraft may be delivered as ‘provisioned’. This implies a partial state of completion where an aircraft is provisioned with the intent that an MRO will not need to open it all up again to complete in the future.

This generates a specific approval and, in essence, nothing

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provisioned is allowed to impact anything existing, requiring unterminated wire runs, with no new equipment or components installed. Alternatively, if an aircraft arrives provisioned, be sure to check it is as represented. Missing any discrepancy here could be an expensive oversight.

In Summary

For cabin electronics and system upgrades, there is a lot to consider. The best advice is to stay engaged and never assume.

For the purpose of this article, a moderate cabin upgrade, conducted away from the OEM, is highlighted. OEMs may use tried and tested SBs and other standard processes to upgrade cabin electronics. They will have greater familiarity, with both the airframe and the existing cabin, as designed.

Staying one step ahead of any installation mitigates surprises for both owner and operator. Equally, an owner with knowledge is more likely to understand where problems can arise, allowing for them by building in additional downtime and cost ahead of time.

Many legacy aircraft have been transformed by thoughtful cabin refurbishments that include an upgrade of their electronics and features. These improvements are truly worthy of consideration, injecting new life into pre-flown aircraft. They can be a rewarding experience if the simple protocols of planning and installation oversight are followed. ❙

Ken Elliott is a veteran with 52 years of aviation experience focused on avionics, in General and Business Aviation. Having a broad understanding after working in several countries on many aircraft types and avionics system, he has contributed to several work groups and committees, including for NextGen, Airport Lighting, Human Factors, Unmanned Aircraft and Low Vision Technology. In retirement, he is striving to give back the knowledge gained with an eye on aviation’s future direction.

on AVBUYER.com

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What are the Top Cabin Management Systems for Retrofit?

Is it possible to retrofit the latest and greatest in Cabin Management Systems aboard your aircraft? What are the leading systems available for retrofit? Chris Kjelgaard speaks to a selection of industry experts…

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eeded for controlling cabin environmental functions such as seat and cabin lighting, temperature, window-shade operation, galley functionality, lavatory lighting and controlling aircraft exterior cameras, the cabin management system (CMS) is a standard feature in every new business aircraft delivered.

But not all systems are the same. The composition of the different line-replaceable units (LRUs) which comprise the CMS can vary from aircraft to aircraft, depending on a customer’s particular cabin-control and cabin-functionality requirement.

The good news is that modern digital CMSs are available not only for installation in new aircraft, but to customers wishing to bring new or upgraded CMS functionality to their existing aircraft cabins.

Steve Elofson, a senior avionics sales executive for Duncan Aviation, says customers often decide to do so either upon purchasing a used aircraft or to replace an out-of-production system (such as those formerly made 106 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

by Baker Electronics or Audio International) during a major maintenance check.

For example, Elofson says some Bombardier Global 5000s and 6000s originally delivered with Collins Aerospace’s previous-generation Cabin Electronics System are being retrofitted because the older installations had standard-definition video displays as opposed to high-definition.

A Rich Variety of Choice and Pricing

Customers looking for a suitable CMS for retrofit have plenty of choice, says Elofson. Various turnkey CMSs are available and all of these are scalable to offer just the LRUs needed for customized requirements.

Additionally, for retrofits in used aircraft (particularly smaller and older ones), the larger CMS OEMs will often work closely with smaller OEMs to offer systems comprised of LRUs from two or more OEMs so they can meet budget constraints.

For example, Alto Aviation and Rosen Aviation www.AVBUYER.com

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AVBUYER.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.

COLLINS VENUE ON DASSAULT FALCON JET

(known for high-quality cabin surround-sound audio systems and cutting-edge OLED and LCD cabin video displays) each offer their own branded CMSs, and often work closely with Collins Aerospace, Lufthansa Technik and Honeywell Aerospace.

As the vendor most directly involved with the end customer, the company which performs the retrofit installation – almost always a third-party maintenance provider such as Duncan Aviation – can also be intimately involved in the LRU-composition decision.

This company also does the engineering-planning and software-development work needed to ensure that the CMS retrofit meets the customer’s exact functionality and system-cost requirements, and is accomplished quickly and efficiently.

Owners and operators scouring the market for a new CMS solution will find the OEM don’t usually discuss CMS pricing. That’s because every CMS retrofit is individually customized, since modern CMS systems are widely scalable and the vendor performing the retrofit www.AVBUYER.com

installation is the company which quotes the customer for the work.

However, Elofson says relatively simple CMS retrofits in smaller business aircraft typically can be accomplished in a 4-8 week downtime, costing between $200k and $400k. More complex CMS retrofit installations in larger jets will cost between $500k and $1m, and require 10 weeks or more to complete. The more planning, equipment research and customer consultation the vendor performs before the installation, the quicker and more ‘on-point’ the job is likely to be.

Customers should also plan carefully for handling additional CMS functionality and the capability upgrades they might desire in the medium-term, Elofson adds. These might include further upgrading a retrofit CMS from displaying HD video in order to control 4K – and ultimately 8K – UHD video displays, for example.

What are the Top CMSs Available for Retrofit?

According to Elofson, three top-of-the-line systems dominate today’s CMS retrofit market for Mid-Size and Large Cabin business jets. These include: • • •

Lufthansa Technik: nice Touch Collins Aerospace: Venue Honeywell: Ovation Select

Dave Crossett, director of channel development for nice in Lufthansa Technik’s (LHT’s) Original Equipment Innovation division, says the system can be scaled for everything from the Embraer Phenom 100 to the Boeing Business Jet family. Collins Aerospace similarly claims Venue can be scaled for everything from King Airs to very large VVIP aircraft.

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These two systems rely on Ethernet platforms connecting to other items of in-house or third-party OEM cabin equipment. The companies’ branded CMS LRUs include: • • • • • • • • • • • • •

Ethernet switches; Interfaces to the onboard satcoms terminals; Bulkhead and seat-arm HD displays; Branded moving-map HD displays and content; Touchscreen control units; PED control; Hard-button switching; Amplifier/decoders/encoders; Central processors; HDMI and USB ports; Blu-Ray players; Bluetooth receiving and transmitting to audio systems; and Media servers providing trademarked content offerings.

In the nice system, galley control panels provide MRO diagnostic-data downloads and crew-configurable presets, enhancing operating flexibility and scalability. nice (which is now in its fourth generation) and Venue each have been installed in more than 1,300 aircraft. While most have been new aircraft, both systems have seen hundreds of retrofit installations.

Crossett says nice has been most popular as a retrofit option in Mid-Size business jets. LHT plans to introduce its fifth-generation nice system within 18 months, and this should feature 4K UHD displays and CMS voice control.

Collins, meanwhile, notes that many customers retrofitting bizjet cabins with Venue will find the system is smaller, lighter and uses less power than the CMS it replaces.

Meanwhile, Honeywell’s latest-generation Ovation Select CMS for retrofit in Super Mid-size jets features galley and seat touchscreen monitors and personal control units (one optional PCU being Bluetooth-capable); large cabin monitor displays; a region-free HD Blu-Ray player; an Alto Aviation surround-sound cabin speaker system; HDMI/USB ports; discrete switch panels; an auxiliary HDMI/USB panel for distributing AVOD content to passengers’ PEDs; a moving map; and an interface to Honeywell’s JetWave Ka-band satcom terminal. Satellite TV content is also available.

While Gulfstream Aerospace provides the branded Gulfstream Cabin Management System for new G650s and G280s, it also provides it aboard G550s and G450s as part of the Elite Interior cabin option.

Honeywell touts Ovation Select as a retrofit option for all those types, and also the GIV and GV, along with 20 other Bombardier, Cessna, Dassault, Embraer and Hawker Midsize/Super Mid-size jet types.

Alto Aviation Cadence

According to Elofson, Alto Aviation’s Cadence system is relatively inexpensive and ideal for replacing obsolescent push-button CMS systems.

Although Cadence is a simple-to-operate push-button system itself, its switch panels employ discrete digital logic and no system software is involved. Cadence’s switch panels

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“Customers looking for a suitable CMS for retrofit have plenty of choice...”

LUFTHANSA TECHNIK’S NICE USER INTERFACE IN LEARJET 75

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customizable to the customer’s requirement in terms of numbers of switches, switch configuration and switch function at each location.

Rosen Aviation’s Eye on the Future

COLLINS VENUE ON A GLOBAL EXPRESS

(COURTESY OF DUNCAN AVIATION)

directly replace the panels of older CMSs without requiring any woodwork modification.

While Alto says Cadence can be installed as a newdelivery system in any business aircraft or rotorcraft, it targets Gulfstream GIV/GV/G150/G200s, Cessna Citation Xs, Bombardier Challenger 601/604s, Dassault Falcon 50/900s and Embraer Legacy 600s fitted with obsolete Pacific Systems, Audio International or Baker Electronics CMSs. According to Cristina Scarlata, Alto Aviation’s marketing director, Cadence is scalable and is available for controlling HD and SD displays.

And the company now offers an off-the-shelf Cadence solution for older aircraft, which Scarlata says was designed as an “easy on the pocket” retrofit option for certain turboprop models and the G100/G150/G200. This provides more than 35 switch panels, and (Alto warrants) will be completed within two weeks of Alto receiving the order. At least 100 Cadence systems have been installed aboard Bombardier Challengers to date.

Finally, while Rosen Aviation’s smart displays and seatarmrest personal control units provide touchscreen control of CMS functions, including audio-video distribution (the company also supplies an AVOD distribution unit), and some of Rosen’s smart displays additionally offer Wi-Fi 6 capability and Bluetooth 4 wireless control from PEDs, there are some exciting features in development by the company, too.

According to Lee Clark, senior vice-president, strategy, Rosen Aviation, the company is developing touchless switches – which work on the hologram principle – for embedding in cabin tables, as well as proximity-sensor technologies which will offer passengers different systemcontrol possibilities depending on where they are in the cabin.

And Rosen is also working on voice- and gesture-control technologies for CMSs and later this year will launch a casting capability which will allow passengers to show content from their PEDs on cabin displays.

In Summary…

There should be no excuse to be flying with an outdated, non-functional CMS aboard your business jet today. There are plenty of retrofit options available to the market tailored to a wide variety of needs. And as demonstrated, the developments in this market will continue to flow – so when you plan your next cabin upgrade, do so with an eye on the future. ❙

ALTO AVIATION CMS

Collins Aerospace eConnect

In addition to its Venue solution, Collins also offers eConnect cabin-management, wireless connectivity and in-flight entertainment system for small business aircraft and rotorcraft.

Its HTML5-based graphical user interface allows control of cabin lighting, streamed HD in-flight entertainment and wireless connectivity via any internet browser installed in any device which can access eConnect’s integrated Wi-Fi. And also worth considering for retrofit, in Elofson’s view, is Mid Continent Controls’ Aurora CMS. Describing Aurora as “very capable, simple and discrete”, the system is often found in Cessna Citation models.

Aurora includes a wireless router for streaming content and file-sharing; touchscreen switch panels; and pushbutton seat controls installed in bases which are 110 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.

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Cabin Connectivity: What to Know When Hiring Out Your Jet

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C

If you charter out your aircraft when not in use, cabin connectivity is a must. The Wi-Fi needs of a charter customer could be very different to yours – and much more expensive. How do you plan for this? Rebecca Applegarth asks James Person and Brian Wilson.

I

t’s important to control the costs of inflight cabin connectivity at all times – but especially so when your aircraft is being made available for charter use. While you can educate your regular aircraft users over the cost of their data consumption, it’s not so straightforward when unknown individuals and groups are using the aircraft.

So it becomes important to find other ways to control the in-flight connectivity costs.

Fortunately, there are a few ways, as highlighted

by Viasat’s James Person and Gogo Business Aviation’s Brian Wilson…

Consider Hourly Pricing/Pricing Plans (Where Available)

Some data providers offer a monthly unlimited data plan. These are always popular with the company CFO since they protect the company from exposure to overage charges. As an example, “charter operators can choose Viasat’s fixed monthly plans for their excellent value,” says Person, adding that many charter operators opt for one of Viasat’s hourly plans.

“The hourly offering includes a smaller monthly fee, compared to our fixed monthly pricing,” he clarifies. “It includes 10 hours per month of unlimited use.”

According to Person, owners can use the 10 hours of unlimited data themselves, or they can be charged out to charter customers. After the 10 hours are used, each additional hour of unlimited use is billed.

“This allows charter operators to bill their customers for unlimited high-speed data usage in the same way they bill for the rest of the charter – by the hour.”

The price can be added for those charter operators who choose to offer high-speed global internet as an option, or built-in to the hourly charter rate for the aircraft. The hourly pricing is such that it allows for operators to mark it up and www.AVBUYER.com

make money on unlimited use internet – especially for Large Cabin, Ultra-Long-Range Jets.

“This is a touchy subject,” says Person. “The consumer is exposed to ancillary costs in their everyday lives and many don’t like it. It can be similar to booking a seat on a start-up airline for a price that seems too good to be true, then be hit with additional costs to choose a seat, bring on a bag, and of course use the Wi-Fi.” “Most data providers do not offer such plans,” Wilson qualifies, “especially where the data system is capable of performing streaming of content.”

The best way to mitigate this is to ask the service provider to give an average of usage per hour, he suggests. “They have these metrics which are usually based on hundreds of thousands of flight hours, so the average usage is pretty consistent.

“For example, let’s say the system (on average) uses 250Mb/hr. The charter operator could estimate the hours the aircraft will fly that month and divide that into their monthly rate. Then the costs would be added into the hourly rate to charter the aircraft.”

Wilson suggests that for established charter companies with many high net worth clients, there is no real potential to ‘make money’.

Ultimately, he says, finding a way to cover costs is the real goal.

“Start-up charter companies offering shared seating and membership cards could have offerings similar to hotels,” he adds. “These could be based on a customer’s level of membership, and the charter company could include a certain amount of data per hour in the package.”

Anything over that would be charged after the flight, just like the catering, landing fees, etc.

“The service provider would need to have a webbased portal so the charter operator could see how much data was used on the flight.”

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“...the cabin Wi-Fi solution you install will need to meet a potentially wider range of needs than your own.“ Maximizing the Value of Your Connectivity Offering

Passengers are more likely to continue to use a charter operator that delivers a positive connectivity experience, meaning that the cabin Wi-Fi solution you install will need to meet a potentially wider range of needs than your own.

“Providing an in-flight connectivity solution that not only delivers reliable and fast internet speeds but is able to serve all passengers and crew is another way to control costs,” Person argues.

A big part of keeping ahead of the curve is to invest in forward compatible equipment, allowing aircraft to take advantage of new satellite-based systems that offer faster speeds and expanded coverage without the need to remove and replace IFC systems.

“In the long-run, being able to take advantage of tomorrow’s advanced technology without having to invest in new IFC systems provides a big cost saving,” Person says.

What are the Possible Coverage Requirements?

Of course, part of understanding the best and most cost-effective Wi-Fi solution for charter use is to understand where the aircraft is most likely to fly on charter missions. Will the travel be international

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(consider a satellite solution) or North America only (consider an Air-to-Ground solution such as Gogo’s AVANCE L3 or L5).

Global coverage ensures passengers and crew are connected wherever they go in the world, Person says.

“Combining flexible plans – like Viasat’s hourly pricing, high value connectivity with global coverage – helps control costs by enabling you to offer a unique and consistent experience.”

As an example, Viasat offers systems which are able to automatically default to bands such as Ka- and leverage Ku-band back-up service when outside of the Ka-band footprint. “This seamless shift between Ka- and Ku-band networks deliver a continuous high-speed internet experience for passengers.

In Summary

Essentially, controlling the costs, and maximizing the value of your cabin connectivity system when the aircraft is being chartered out comes down to the planning.

Discuss your plans with the connectivity provider when you are discussing your own needs.

They will have the experience and flexibility to offer solutions so that you can get the best of both worlds.

More information from business.gogoair.com or www.viasat.com ❙

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You’ll enjoy our mix of technical articles, destination articles, historical pieces, flight reviews, and commentary from leading aviation writers.

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of safety alerts, and a product directory. You can view videos and photos uploaded by members and staff, browse the knowledge base, and join our forums.

Our online forums are a great source for question-and-answer interaction and an excellent way to connect with other members, the CFA staff, and contributing editors.

Annual Gathering for Members Our Gathering at Waupaca is an annual event held near Oshkosh, Wisconsin, the weekend before EAA AirVenture. The next Gathering will be held in 2021.

Community News June.qxp_Layout 1 21/07/2020 10:58 Page 1

COMMUNITY

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OEM Bites

Bombardier Global 5500 Enters Service

L

The new Long-Range Global 5500 business jet recently entered service after the first unit was delivered to an undisclosed customer.

ast year, Bombardier announced that the Global 5500 can fly 200 nautical miles (nm) more than planned, and its 5,900nm range is 700nm more than the nearest competitor at the same speed.

“This spacious and efficient aircraft is the ultimate business tool, with the range and access to safely take our customers where they need to be,” said David Coleal, President, Bombardier Aviation.

“The first Global 5500 aircraft delivery is of particular significance for our employees in Wichita, who recently took on the meticulous work of interior completions for the Global 5000 and Global 5500 aircraft.”

Global 7500 EPD

Meanwhile, Bombardier has announced a new first for Business

Aviation with the publication of the Environmental Product Declaration (EPD) for the Global 7500.

This Global 7500 aircraft EPD has been third-party verified to the highest international ISO standards under the International EPD System, an environmental declaration program based in Sweden, disclosing transparent environmental information about the product’s life cycle (such as CO2 emissions, noise, water consumption and other key environmental impact indicators).

Bombardier has committed to communicating the environmental performance of all new aircraft programs through EPDs. More information from www.bombardier.com

Understanding the Business Aviation Market - with 116 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

AVBUYER

C

Airbus Helicopters’ multi-role twin engine H160 has been granted its type certificate by EASA, marking a new chapter for the program. The company expects FAA certification to follow shortly prior to first delivery to an undisclosed US customer later this year. The H160 is designed as a multi-role helicopter able to perform a wide range of missions, including private and Business Aviation. www.airbus.com/helicopters.html

Daher Aircraft is offering a new incentive to buyers of its 2020 model year Kodiak 100. Customers will receive free scheduled maintenance for the first two years of ownership. “The Kodiak Care Maintenance coverage offers some of the industry’s best maintenance warranties, underscoring Daher’s commitment to worry-free ownership…” said Nicolas Chabbert, Daher Aircraft senior vice president/Kodiak CEO. https://daher.com

Dassault Aviation is making steady progress toward an early 2021 planned first flight for the Falcon 6X. The first of the three pre-production aircraft that will take part in flight certification has been powered up and entered ground testing.

Aircraft #2 and 3 are in advanced stages of assembly and long cycle parts production for serialized production has already begun. Entry into service is expected in 2022. www.dassaultfalcon.com

!

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JetNet August.qxp_Layout 1 20/07/2020 11:48 Page 1

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If you’re ready to take the next step, we’re here to help your business grow. Request a demo today at JETNET.com.

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Community News June.qxp_Layout 1 21/07/2020 10:58 Page 2

COMMUNITY

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C

OEM Bites

Gulfstream Aerospace announced its 200th Super Mid-size Gulfstream G280 has entered service. The G280 rolled out in 2009, was certified by the FAA in 2012 and entered service that same year. As of April 2020, the in-service G280 fleet had accrued nearly 236,100 flight hours and completed more than 145,000 landings. www.gulfstream.com

Embraer Completes First Praetor 500 Conversion Embraer Services & Support has

completed the first conversion of a Legacy 450 to a Praetor 500

T

for an undisclosed customer.

he conversion was performed at the Embraer Executive Jets Service Center at Bradley International Airport in Windsor Locks, Connecticut.

The full process to convert a Legacy 450 (2,900nm range) into a Praetor 500 (3,340nm range), involves replacing the level-sensing wiring in the fuel tanks.

The over-wing gravity fueling ports were also moved, the fuel-measurement system was relocated, and the wing ribs were reinforced to hold additional weight.

These adjustments entailed updates to the flight control systems, including a new avionics load for the Collins Aerospace Pro Line Fusion flight deck. Most noticeably, the iconic swept winglets of the Praetor were installed, and the placards and logos were replaced to officially convert the Legacy 450 into a Praetor 500.

First New, Enhanced Phenom 300E Delivered…

Embraer also announced the first delivery

118 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

of its new, enhanced Phenom 300E to Texas law firm Dunham & Jones, Attorneys at Law, P.C. The firm also owns a Phenom 100EV. “This milestone delivery to our friends at Dunham & Jones is a testament to our ongoing commitment to providing the ultimate customer experience in Business Aviation,” said Michael Amalfitano, President and CEO, Embraer Executive Jets.

“Our clients rely on Dunham & Jones attorneys for personalized, one-on-one attention, and Business Aviation is the conduit to make that possible,” said Paul Dunham, Principal, Dunham & Jones, Attorneys at Law, P.C. “The speed, operating cost, and comfortable cabin pressurization of the new, enhanced Phenom 300E were certainly distinguishing factors in our selection process, as was our exceptional experience with the Phenom 100EV.” More information from executive.embraer.com

Stratos Aircraft has announced the first flight of the Stratos 716X 'multi-role' single-engine VLJ. Designed to seat six people, the 716X is longer and has a wider cabin than the 714 Proof of Concept aircraft introduced at Oshkosh in 2017. The 22-minute maiden flight on July 2nd saw test pilots conducting a series of manoeuvres to evaluate handling characteristics. https://stratosaircraft.com

Rob Scholl, senior vice president of Sales at Textron Aviation (left) and the owners of Fast Rabbit Aviation

Textron Aviation recently delivered the 250th Entry-Level Cessna Citation M2 jet to Fast Rabbit Aviation, LLC located in Seattle, Washington. The Citation M2 supports a wide range of customers with a variety of mission needs, and the owners of Fast Rabbit Aviation intend to use their new M2 for frequent trips throughout the US West Coast (the aircraft is able to fly non-stop with four passengers from Seattle to Burbank, California). https://txtav.com

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Community News June.qxp_Layout 1 21/07/2020 10:59 Page 3

COMMUNITY

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Hal Chrisman

Jeff Lake

Gabriela Perez de Leon

Hal Chrisman took over as President of Raisbeck Engineering, Inc. A seasoned aviation, aerospace and defense professional with over 34 years of experience in the industry, most recently, Chrisman was Chief Strategy Officer with Acorn Growth Companies.

Ryan Huss is promoted as the new director of sales at Duncan Aviation, serving on the company’s Senior Management Team overseeing the Duncan Aviation sales teams. Huss started at Duncan Aviation as an airframe technician and, most recently, was airframe and engine sales manager.

Jeff Lake, formerly COO for Duncan Aviation’s Lincoln, Nebraska, facility, took over day-to-day responsibility for the entire company on July 1, after former President Aaron Hilkemann stepped back to the newly created, part-time role of CEO & Chairman of the Duncan Aviation Board of Advisors. Lake has been with Duncan Aviation since 1993.

Mike Minchow, Duncan Aviation vice president, Modifications and Engineering, has taken on additional responsibility as COO, Nebraska facility.

Josh Tremain

Dendall Wood

Gabriela Perez de Leon was appointed to the JetHQ team as Sales Director, based in and overseeing Mexico.

Gabriela will work with Chris Morales, vice president of sales, who currently covers Latin America. Perez de Leon has worked in aviation for 20 years, the last 15 of which as the principal of Mondo Aereo.

Bill Prochazka, executive vice president and COO, Duncan Aviation’s Provo, Utah facility retired at the end of June. Prochazka had been with Duncan Aviation since 1987. He is replaced by Chad Doehring, formerly vice president of Operations at the Provo facility.

Josh Tremain joins JetHQ as its Manager of Contracts and Business Development. Tremain comes to the company with more than 12 years of aviation experience as an Escrow Agent with Insured Aircraft Title Service based in metro Oklahoma City.

Dendall Wood is the new general manager of Stevens Aerospace and Defense Systems’ mobile aircraft maintenance division. Mr. Wood joined Stevens in 2005 and holds an Airframe & Powerplant mechanic certificate with inspection authorization. Most recently he was chief inspector/accountable manager at Stevens’ Greenville location. ❚

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August 2020

120 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

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Mesotis August.qxp 21/07/2020 12:31 Page 1

S H O W C A S E

MESOTIS JETS IS PROUD TO PRESENT THESE TWO CESSNA CITATION JETS

1995 Cessna Citation Jet SERIAL NUMBER: 525-0089 • REGISTRATION: D-IZRH • AIRFRAME TT: 6760:25 • LANDINGS: 6577 • TAP ELITE • ADSB OUT • LPV CONVERTER • INTERIOR REFURBISHED MAY 2018

1995 Cessna Citation Jet SERIAL NUMBER: 525-0090 • REGISTRATION: LZ-DIN • AIRFRAME TT: 4321:12 • LANDINGS: 3526 • TAP ELITE • PRO PARTS • LAST DOC 10 PERFORMED IN DECEMBER 2019 • GARMIN GTN 750 WITH ADSB • LPV CONVERTER • INTERIOR REFURBISHED IN 2017 Mesotis Jets Thomas Thums Fleischmarkt 7/3 1010 Vienna Austria

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Mob: +43-67-6590-0082 Tel: +43-1-533-757216 E-mail: tthums@mesotisjets.com www.mesotisjets.com

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

121

Jetsense Aviation July.qxp_Empyrean 22/07/2020 14:03 Page 1

S H O W C A S E

Reduced Price: $3,195,000 2010 Bombardier Learjet 45XR Serial Number: Registration: Airframe TT: Landings:

406 N821LC 4230 2832

Avionics & Connectivity Honeywell Primus 1000 ATG-5000 WiFi Maintenance & Inspections Inspection Frequency | Completed Remains | Due Phase A 300Hrs/12Mos 300Hrs/12Mos Phase B 600Hrs/24Mos 600Hrs/24Mos Phase C 1200Hrs/48Mos 1200Hrs/48Mos Phase D 2400Hrs/96Mos 2400Hrs/96Mos Langing Gear 96Mos 96Mos

! Owner Financing and Trades Available ! Fresh Pre-buy ! Recent A-D Inspections ! MSP Gold - Engines and APU ! Smartparts ! ATG-5000 WiFi ! ADS-B Out (2020 Compliant) ! WAAS/LPV Engines Left engine Description: TFE731-20BR-1B S/N: P-132178C THSN: 4097 Hours TCSN: 2754 Cycles THS MPI: 1215 Hours THS CZI: 1903 Hours Program MSP Gold MSP Gold

Right engine TFE731-20BR-1B P-132177C 4021 Hours 2706 Cycles 1026 Hours 1979 Hours

APU Description Allied Signal RE100LJ Serial No. P-444 Total Hours Since New 1674 Program MSP Gold

Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047

122 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com www.AVBUYER.com

J New Aviation August - 1.qxp_Empyrean 22/07/2020 12:11 Page 1

S H O W C A S E

2013 Gulfstream G450 Serial Number: Registration: Airframe TT: Landings:

4292 N219TF 2214 1169

! Internet: BBML---Viasat Ku-band ! Satellite TV---4 receivers ! Airshow 4000 ! Iridium telephone ! FANS 1/A+ (ASC 912B) ! 14 Passengers, Fwd and Aft Lavs ! Aft Galley ! Rolls Royce CorporateCare ! APU on MSP ! Enrolled in Gulfstream AOS ! 8 monitors ! Dual slot Blu-ray/DVD/CD, HDMI ! 3 fuselage cameras ! Enhanced Soundproofing ! EVAS

Engines Rolls Royce Tay MK611-8C Left: 2214 TTSN / 1157 Cycles / sn 85589 Right: 2214 TTSN / 1157 Cycles / sn 85590 Program: Rolls Royce CorporateCare APU Honeywell GTCP36-150 / sn P-406 1499.5 TTSN / 2191 Cycles Program: Honeywell MSP Additional equipment XM weather (ASC 40A) Synthetic Vison (ASC 37B) RAAS (ASC 40A) ADS-B Out (ASC 79) FANS 1/A+ (latency timer) (ASC 912B) PlaneView upgrades ASC 90A, 99B, 911A Make Offer Verification of Specifications Remain the Sole Responsibility of the Purchaser.

Aircraft Subject to Prior Sale or Withdrawal from Market.

J. New Aviation, LLC Contact: Jay New 10 NW Richards Rd. Kansas City, MO 64116 www.AVBUYER.com

Tel: +1 816-876-7038 Email: jay@mkcaviation.com

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

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Testimonial February front section.qxp_Layout 1 22/01/2020 16:05 Page 1

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

"We have found AvBuyer to be an excellent portal to introduce and then market our aircraft on a global basis. The depth of their readership seems unsurpassed with a primary focus on European and other world markets.

We have quantified results from our marketing engagement with this firm and are very pleased to continue advertising with them.

Mark J. Graubart, Executive Director, Aircraft Sales Group LLC

“I’ve found AvBuyer to be very effective at reaching a global market, both through its digital and print distribution. And the AvBuyer team is great to work with!”

Jim Donath - Donath Aircraft Sales

P126-127.qxp 23/07/2020 09:31 Page 1

M A R K E T P L A C E

Gulfstream G550

The Ritchie Group Price:

Make Offer

Year:

2012

S/N:

5364

Reg:

-

TTAF:

2,050

Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com Available KSNA for Private Viewings. Inquire Today!

READY FOR SERVICE! Paint and Interior Upgrades Completed March 2020 at WestStar Aviation; Highly Optioned with RAAS and SVS; 2020 Compliant! ADS-B Out (DO 260B); CPDLC FANS 1/A; Enhanced Navigation, Lightning Sensor System and Airshow 4000; Impeccable Maintenance History

Location: USA & Canada

www.jet-transactions.com

Bombardier Challenger 350

Steve Studecci Price:

Off Market

Year:

2020

S/N:

207XX

Reg:

TBD

TTAF:

00

Tel: +1 (310) 984 6777 E-mail: sales@milchamavia.com FRACTIONAL OWNERSHIP PROGRAM 2 SHARES AVAILABLE BRAND NEW BOMBARDIER CHALLENGER 350 DELIVERY MIDDLE 2020 WE SALE ONLY SHARE, NOT THE FULL AIRCRAFT FOR MORE INFORMATION CONTACT US TRADE CONSIDERED

Location: USA & Canada

Embraer Lineage 1000

Steve Studecci Price:

Off Market

Year:

2012

S/N:

19000XXX

Reg:

N-XXX

TTAF:

300

Location: USA & Canada

Cessna Citation Bravo

Boris Peev Price:

$800,000 No VAT

Year:

2002

S/N:

550-1007

Reg:

LZ BPP

TTAF:

3533.8

Location: Bulgaria

Air Select

Dassault Falcon 900EX EASy

Price:

Deal Pending

Year:

2007

S/N:

172

Reg:

G SIRO

TTAF:

1210

Location: France

126 ❘ Vol 24 Issue 8 2020 ❘ AVBUYER MAGAZINE

Tel: +1 (310) 984 6777 E-mail: sales@milchamavia.com FRACTIONAL OWNERSHIP PROGRAM 3 SHARE AVAILABLE EMBRAER LINEAGE 1000 19 PASSENGERS OPERATED BY MAJOR OPERATOR IN CALIFORNIA BRAND NEW CABINE AND PAINT MAJOR INSPECTION MADE FRACTIONAL OWNERSHIP PROGRAM PLANE WILL BE DELIVERED END OF JULY WE SALE ONLY SHARE, NOT THE FULL AIRCRAFT TRADE CONSIDERED

Tel: +359 888 211 134 E-mail: office@aviobravo.com EU Registration. ENG1-PW 530A, 3533.8 H. ENG2-PW 530A, 3533.8 H. RVSM: Factory Standard. No damage history. Complete records and all log books. Special AOC Package: Commercially registered and operated in European AOC. This aircraft is in excellent condition.

Aircraft's current location - LBSF. Avionics: Honeywell Primus 1000 Integrated Avionics System 3 – Tube EFIS. COMMUNICATION: Dual Bendix/King KY196B Comm. VHF NAVIGATION: Dual Bendix/King KN53 Nav Receiver. Interior: Standard Citation Bravo (7+ 2 + 1 Belted Lavatory). Center Club, two Aft Forward-facing Seats, rear Facing Seat across from Galley including Belted Lavatory. Price Reduced

Tel: +44 (0)797 103 5090 E-mail: tony@airselect.co.uk This new to the market, member of the Falcon 900 series large-cabin trijet, supplied new by Dassault Aviation to the current owner is the finest, low time example of its type on the market today. Carefully maintained under Falconcare by Dassault Falcon Services, this aircraft offers the greatest opportunity for ownership in the category. Airframe: One Owner from New. VERY LOW TOTAL TIME. Fresh 2C DEC 2019. Fresh Gear Overhaul. New paint 2016 Dassault Wilmington. Honeywell Epic Easy II Cert 4 WAAS/CPDLC & ADS B. Avionics: Triple Honeywell Laserref IRS. Triple Honeywell Easy FMS w Dual GPS. Triple Honeywell T- 866B VHF. Triple Honeywell Selcal AV 800. Honeywell Primus Colour Weather Radar

www.AVBUYER.com

P126-127.qxp 23/07/2020 09:31 Page 2

Leonard

Bombardier Learjet 36A

Price: Year: S/N:

M A R K E Tel: +1 (806) 662 5823 T Hudson Drilling Email: ronfernuik@hotmail.com P L Offer/Trade Learjet 36A, Long range capability, as configured 2,400 A nautical miles. Can be upgraded to 2,600 mile range.

C 1977 Recent paint and interior, RVSM. E 36A-030

Reg:

N160GC

TTAF:

15,600

Competitively priced at US $1,375,000, may take trade on a King Air or a helicopter Would consider trade for KingAir 200/300

Location: USA

Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com

Leonard Hudson Drilling

BELL 412EMS

Price:

Offer

Year:

1981

S/N:

33017

Reg:

N554AL

TTAF:

15265

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

Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com

Leonard Hudson Drilling

BELL 212 (Five Available)

Price:

Please Call

Year:

1991-1996

S/N:

Call for details

Reg:

Call for details

TTAF:

Call for details

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

Airbus/Eurocopter AS 350B-2

Price:

£850,000 Excl. VAT

Year:

1996

S/N:

2915

Reg:

G-WHST

TTAF:

2200

Location: United Kingdom

Alberth Air Parts

+1 832 934 0055

Spare Parts •BUY •SELL •TRADE CESSNA LEARJET HAWKER WESTWIND FALCON GULFSTREAM

www.alberthaviation.com

Tel: +44 (0)7525 726 455 E-mail: alex.dewsbery@toppesfield.com

Alex Dewsbery

2200 TT. VIP equipped. Immaculate condition. Very high spec.

Extremely long component times. Always hangared. New paint 03/19. New leather interior 03/19. Overhauled MR & TR gearboxes 03/19. New starflex 03/19. TR blades overhauled 11/19. Logo is a decal.

Highlights include- 2Axis Autopilot, Lynx L3 ADSB TCAS, VOR, NDB, DME, HSI, AI, Rad Alt, 2x Garmin comms, AKV cycle counter, HUMS, 6x Bose A20 Lemo, Gyro compass, USB front & Rear. Lead acid battery mod. Duals, Blanks, Tie downs. HISL, Sling loading provision, Float provision.

Par Avion Ltd FALCONS • HAWKERS • LEARS

www.paravionltd.com SALES • ACQUISITIONS • CONSULTING

Fax: +1 832 934 0011 www.AVBUYER.com

AVBUYER MAGAZINE ❘ Vol 24 Issue 8 2020 ❘

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The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet

.com

www.

Advertiser’s Index 1st Source Bank................................................109

Donath Aircraft Services.................................... 67

Jet Sense Aviation ............................................ 122

Aircraft BlueBook................................................ 83

Duncan Aviation.......................................... 16 - 18

J New Aviation ................................................... 123

Airfleet Capital ..................................................... 93

Eagle Aviation....................................................... 27

Leading Edge Aviation Solutions .................... 59

Airline Transport Professional........................... 83

ElliottJets .............................................................. 47

Lone Mountain Aircraft....................................... 87

Amjet Aviation ...................................................... 37

Engine Assurance Program ........................... 101

Mesotis Jets ....................................................... 121

Aradian Aviation ................................................ 105

Freestream Aircraft..................................... 42 - 43

OGARAJETS .............................................. 24 - 25

Avjet Global .......................................................... 79

General Aviation Services................................. 53

Par Avion ............................................................... 33

Avpro...................................................................... 15

Global Jet Capital................................................ 77

Partners in Aviation .......................................... 111

Castle Air............................................................... 57

Global Jet Monaco........................................ 5 - 12

Pratt & Whitney.................................................... 97

Central Business Jets...................................... 131

Hatt & Associates ............................................... 23

Registry of Aruba ....................................1, 68 - 69

Cessna Flyer...................................................... 115

Jetbrokers.............................................................. 85

Sparfell & Partners ..................................... 38 - 39

Conklin & de Decker ........................................ 119

Jetcraft Corporation ......................... 28 - 29, 132

The Jet Business ........................................ 34 - 35

Corporate Concepts ................................. 48 - 49

JetHQ............................................................ 20 - 31

The Private Jet Company................................... 73

Dassault Falcon Pre-Owned. ....................... 2 - 3

JETNET ............................................................... 117

Wright Brothers Aircraft Title ......................... 103

The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet PROUD MEMBERS OF

British Business & General Aviation Assoc. • British Helicopter Assoc.• European Business Aviation Assoc. • International Aircraft Dealers Assoc. • National Aircraft Finance Assoc. • National Business Aviation Assoc.

AvBuyer (USPS 014-911), April 2020, Vol 24 Issue No 4 is published monthly by AvBuyer Ltd, 1210 West 11th Street, Wichita, KS 67203-3517 and has a targeted circulation to decision makers within business and corporate aviation throughout the world. It is also available on Annual Subscription @ UK £40 and USA $65. POSTMASTER: Send address changes to: AvBuyer Magazine 1210 West 11th Street, Wichita, KS 67203-3517. Postage is paid at Wichita, KS and additional mailing offices © Copyright of AvBuyer Ltd. Every effort is made to ensure the accuracy of material published in AvBuyer Magazine. However, the publishers cannot accept responsibility for claims made by manufacturers, advertisers or contributors. The views expressed are not necessarily those of the Editor or the publishers. Although all reasonable care is taken of all material, photographs, CD & DVDs submitted, the publishers cannot accept any responsibility for damage or loss. All rights reserved. No part of AvBuyer Magazine - Advertising, Design or Editorial - may be reproduced, stored in a retrieval system, or transmitted in any other form, or by any other means, electronic, mechanical, photographic, recording or otherwise, without prior written permission of the publishers.

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Aircraft For Sale • AIRCRAFT • HELICOPTERS

AIRCRAFT

PAGE

AIRCRAFT

AIRBUS A318 Elite . . . . . 5 A340 . . . . . . . . . 49 A380-800 . . . . . . 38

BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 28, 42 BBJ2 . . . . . . . . . 5 BBJ3 . . . . . . . . . 42 737-200 . . . . . . . 49 737-300 . . . . . . . 49 787-9. . . . . . . . . . 29, 132

BOMBARDIER Global 5000 . . . . 17, 28, 29, 33, 132 Global 6000 . . . . 5, 10, 28, 29, 38, 43, Global 6500. . . . 5, 132 Global Express . 37 Global Express XRS. 5, 11, 15, 29, . . . . . . . . . . . . . . . 34, 132

Challenger

300 . . . . . . . . . . . 5, 15, 24, 47, 53, 59 350 . . . . . . . . . . . 15, 28, 29, 126, 132 601 3A . . . . . . . . 15 601 3A ER . . . . . 15, 18, 25 604 . . . . . . . . . . . 132 605 . . . . . . . . . . . 17, 28, 29, 34, 53, . . . . . . . . . . . . . . . 59, 79, 132 650 . . . . . . . . . . . 29, 43, 132

Learjet

31A . . . . . . . . . . . 85 35A . . . . . . . . . . . 85 36A . . . . . . . . . . . 127 40XR . . . . . . . . . . 47 45XR . . . . . . . . . . 15, 16, 23, 31, 47, . . . . . . . . . . . . . . . 122 55 . . . . . . . . . . . . 85 60SE . . . . . . . . . . 131 60XR . . . . . . . . . . 28 70. . . . . . . . . . . . . 73 75. . . . . . . . . . . . . 17, 29, 47, 132

CESSNA Citation II . . . . . . . . . . . . . 85 III . . . . . . . . . . . . . 85

PAGE

V. . . . . . . . . . . . . . 16, 27, 53, 105 X . . . . . . . . . . . . . 47, 87 X +. . . . . . . . . . . . 29, 132 XLS . . . . . . . . . . . . 33 XLS+ . . . . . . . . . . . 17, 47, 59, 105 CJ1+ . . . . . . . . . . . 47 CJ2. . . . . . . . . . . . . 33 CJ2+ . . . . . . . . . . . 28, 59 CJ3. . . . . . . . . . . . . 5, 12, 17, 33, 47, 73 CJ4. . . . . . . . . . . . 37, 38 Bravo . . . . . . . . . 126 Caravan . . . . . . . 29, 132 Excel . . . . . . . . . . 25, 53, 73 Jet . . . . . . . . . . . . 25, 27, 121 Mustang. . . . . . . . 16 Sovereign. . . . . . 15, 27 182T . . . . . . . . . . 27 206H . . . . . . . . . . 27, 85 340A RAN VI . . . 27 T201N . . . . . . . . . 85 Ultra . . . . . . . . . . . 85 500 . . . . . . . . . . . . 85

CIRRUS SF50 . . . . . . . . . . 87 SF50G2 . . . . . . . 87

DASSAULT FALCON 7X . . . . . . . . . . . . 3, 5, 7, 18, 37, 43, . . . . . . . . . . . . . . . 131 8X . . . . . . . . . . . . 15 20C-5 . . . . . . . . . 85 20F-5BR . . . . . . . 47 50 . . . . . . . . . . . . 85 50-4. . . . . . . . . . . 48 50EX . . . . . . . . . . 85 900B . . . . . . . . . . 29, 29, 47, 132 900C . . . . . . . . . . 131 900DX. . . . . . . . . 8, 53 900EX . . . . . . . . . 48 900EX EASy . . . 5, 15, 29, 126 900LX . . . . . . . . . 29, 132 2000EX EASy . . 16, 24, 31 2000EX EASy II 23 2000LX . . . . . . . . 2, 5, 6, 67 2000LXS. . . . . . . 29

AIRCRAFT

PAGE

AIRCRAFT

ECLIPSE 500 . . . . . . . . . . . 105 550 . . . . . . . . . . . 17

EMBRAER Legacy 600 . . . . 38, 48 Legacy 650 . . . . 29 Lineage 1000 . . 38, 126 Lineage 1000E . 131 Phenom 100 . . . 25, 29, 132 Phenom 100E . . 18 Phenom 300 . . . 47

PAGE

800XP . . . . . . . . . 17, 18, 38, 59, 73, . . . . . . . . . . . . . . . 105 800XPi . . . . . . . . 15, 25 850XP. . . . . . . . . 73 900XP . . . . . . . . . 25, 47, 59, 105 4000 . . . . . . . . . . 23

HOWARD 500 . . . . . . . . . . . 131

HONDA Jet HA 420 . . . . . 47

GULFSTREAM

IAI

IVSP . . . . . . . . . . 73, 105 V. . . . . . . . . . . . . . 5, 48 150 . . . . . . . . . . . 79 200 . . . . . . . . . . . 15, 132 280 . . . . . . . . . . . 23, 24, 59, 131 400 . . . . . . . . . . . 17 450 . . . . . . . . . . . 15, 29, 79, 105, . . . . . . . . . . . . . . . 126, 132 500 . . . . . . . . . . . 59, 79 550 . . . . . . . . . . . 15, 24, 35, 38, 43, . . . . . . . . . . . . . . . 79, 105, 126, 131 650 . . . . . . . . . . . 9, 43 650ER. . . . . . . . . 5, 43

Astra 1125SP . . 131

HAWKER BEECHCRAFT King Air 200XPR . . . . . . . 85 350 . . . . . . . . . . . 105 350i . . . . . . . . . . . 34 B100 . . . . . . . . . . 31 B200 . . . . . . . . . . 85, 105 B200XPR . . . . . . 85 C90B. . . . . . . . . . 29, 85, 132 C90GTi . . . . . . . . 105 C90GTx. . . . . . . . 47

Beechcraft

PIPER Cheyenne IIIA . . 85 Saratoga . . . . . . 27, 85

SOCATA TBM 700B . . . . . 27

HELICOPTERS

AIRBUS/ EUROCOPTER AS 350B-2 . . . . . 127 EC 120B . . . . . . . 105

AGUSTAWESTLAND AW109E Power . 39 AW109S Grand. 39

BELL 212 . . . . . . . . . . . 127 412EP . . . . . . . . . 105 412EMS . . . . . . . 127

B60 Duke . . . . . . 85 P58 Baron . . . . . 85 Premier I . . . . . . 29, 132

Hawker

400A . . . . . . . . . . 31 400XP . . . . . . . . . 25, 31, 85

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2015 Falcon 7X SN267

Embraer Lineage 1000E SN190-00611

8X Replacement makes this Aircraft Available Now, Will Deliver with United States C of A, Will Deliver with New Paint and Interior, Heads Up Display / Enhanced Vision / Synthetic Vision / Etc / Etc / Etcâ&#x20AC;¦

Only 1075 Hours and 450 Cycles Since New; Preferred 19 Passenger Interior, World Wide Ready, Transferrable Warranty and Maintenance Programs

2014 Gulfstream G280 SN2039

Single owner since new, Enrolled in all Programs (Honeywell MSP Gold & Gulfstream Planeparts), 1,628 Hours, 502 Landings, 4 Year Heavy Check completed at Gulfstream Appleton, FANS/CPDLC, ADS-B, WAAS/LPV, Well maintained, 9 place interior

2005 Lear 60SE SN282

Artex 406 ELT w/ Nav Interface, WX 1000E Stormscope, Lightning Detection System, Ice Detection System, Extended baggage space, WAAS/LPV, Collins ADS-B Out

2015 Gulfstream G550 SN5508 500 Hours TT, Warranties thru Sept 2022, RRCC, 4-zone seating with Dual Aft Couches

2002 Falcon 900C SN194 Will deliver with Fresh 3C, new paint, Cockpit upgrades & WIFI

Howard 500 SN5560

Astra 1125SP SN048

Arguably The 1st ever Business Aircraft, Chance to Own the Original Classic

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www.cbjets.com ALSO AVAILABLE: Falcon 900EXy SN238 (Lease Only)

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2010 DASSAULT FALCON 900LX S/N 246 • 4,904 Hours; 2,352 Landings • Engines and APU Enrolled on MSP • EASY II Avionics w/ EVS

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1993 DASSAULT FALCON 900B S/N 120 • 9,631 Hours; 5,383 Landings • Engines and APU on MSP Gold • ADS-B Out, WAAS/LPV Equipped

2004 BOMBARDIER CHALLENGER 604 S/N 5578

2007 GULFSTREAM G200 S/N 174 • 3,018 Hours; 1,371 Cycles • Engines and APU on Programs • 10 Passenger Configuration

• 6,566.6 Hours; 3,622 Landings • Engines & APU Enrolled on Programs • FANS 1/A+, ADS-B Out

2010 BOMBARDIER GLOBAL XRS S/N 9339

ALSO AVAI L ABLE

FILE PHOTO

2019 BOMBARDIER GLOBAL 6500 S/N 9861 • 465.7 Hours; 213 Landings • Fully Programmed • Transferable Manufacturer Warranties

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

• 3,608 Hours; 1,141 Landings • Fully Enrolled on Programs • 120 Month Inspection Underway

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1994 KING AIR C90B FEATURED 2015 BOEING 787-9 2003 BEECHCRAFT PREMIER I 2016 CHALLENGER 350 2012 CHALLENGER 605 2016 CHALLENGER 650 2012 GLOBAL 5000 2018 GLOBAL 6000 2005 GLOBAL XRS 2016 CESSNA CARAVAN 2014 CITATION X+ 1997 FALCON 900B 2019 LEARJET 75 2012 GULFSTREAM G450 2010 PHENOM 100

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