FC Sparfell December 2020.qxp_FC December 06 18/11/2020 09:55 Page 1
Volume 24 Issue 12 2020
™
ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
GENEVA
VIENNA
PARIS
SAN MARINO
SPARFELL’S SUCCESSFUL GROWTH -
THIS MONTH
DUBLIN
WASHINGTON
See pages 12 & 13 - 42 & 43 for further details
Turbo Comparison: Cessna Grand Caravan EX vs Pilatus PC-12 NG New Aircraft Tech: What's Next for the OEMs?
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SINGAPORE
How to Measure BizAv’s Value to Shareholders
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Contents Layout DEC.qxp 18/11/2020 12:29 Page 1
Vol.24 Issue 12
16
Contents
2020 46 50 54 58 64 72 76 82 90 94 98 102 106 110
Market Indicators
Trends and Observations from Leading Business Aviation Analysts
Market Insights
Will Airline Chaos Mean a Business Jet Renaissance?
Buying & Selling Aircraft
Aircraft Brokers: Minimize Your Sales Frustrations Should you buy a New or Used Private Jet?
Aircraft Development
New Aircraft Technology: What's Next for the OEMs? New Business Aircraft Development Update
Ownership
Business Aircraft Title: Avoid Nasty Surprises How to Measure BizAv’s Value to Shareholders
Turboprop Comparison
Cessna Grand Caravan EX vs Pilatus PC-12 NG
Aircraft Price Guide
Turboprop Aircraft Values
Flight Department Management
Flight Departments: Planning Ahead in Unpredictable Times Minimum Equipment Lists: Why They’re so Important
Ricky Gioconda - Account Manager North America Aircraft Sales +1 919 434 1364 ricky@avbuyer.com Lise Margin - Account Manager North America 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 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0) 20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0) 20 8255 4000 Freephone from USA: +1 855 425 7638 sue@avbuyer.com
Three Tips to Avoid Early Aircraft Maintenance
Connectivity
Emma Davey emma@avbuyer.com
Jet Connectivity: What's Really Needed on Shorter Flights?
Avionics
A Guide to Your Aircraft’s Flight Panel: The Future
Community News
119
Showcases
130
ADVERTISING Steve Champness - Publisher Americas +1 770 769 5872 steve@avbuyer.com
AVBUYER.COM Jayne Jackson jayne@avbuyer.com
OEM News and Industry Appointments
129
Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com
Maintenance
116 126
EDITORIAL Commissioning Editor Matthew Harris +44 (0) 20 8939 7722 editorial@avbuyer.com
Marketplace Advertisers Index Aircraft for Sale Index
Next Month
• Dealer Broker Market Update
• Top Tips for Buying a Jet in 2021
• How to Understand Aircraft Financing in 2021 4 Vol 24 Issue 12 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
EXCLUSIVELY FOR SALE AIRBUS A319 VIP
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BOEING BBJ2
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EMBRAER LEGACY 650
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BOMBARDIER CHALLENGER 300
2008 (DELIVERED 2011) / SN 3542 ASKING PRICE / USD $42.00M
2010 (DELIVERED 2011) / SN 4211 ASKING PRICE / USD $25.00M
2018 / OFF MARKET ASKING PRICE / USD $75.00M
2011 / OFF MARKET ASKING PRICE / USD $20.00M
2012 / OFF MARKET NEW LISTING / USD $13.95M
2014 / OFF MARKET ASKING PRICE / USD $38.00M
2014 / SN 6095 PRICE REDUCED / USD $38.90M
2016 / OFF MARKET ASKING PRICE / USD $30.00M
2014 / SN 4300 ASKING PRICE / USD $16.50M
2012 / SN 4260 ASKING PRICE / USD $14.75M
2012 / SN 5904* ASKING PRICE / USD $10.25M
2012 / SN 20382 PRICE REDUCED / USD $9.75M
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BOMBARDIER GLOBAL 6000 2013 / SN 9559 PRICE REDUCED / USD $22.45M
OWNER MOTIVATED TO SELL BY END OF THE YEAR AIRFRAME HOURS / 1823 AIRFRAME CYCLES / 753 CAPACITY / 15 PAX
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10.11.2020 14:27:44
BOMBARDIER GLOBAL XRS
2008 / SN 9252 ASKING PRICE / “PRICED TO SELL-OWNER TAKING DELIVERY OF A NEW AIRCRAFT ”
ONE OWNER SINCE NEW AIRFRAME HOURS / 3321 AIRFRAME CYCLES / 1219 CAPACITY / 13 PAX
TECHNICAL DETAILS AVAILABLE HERE
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BOMBARDIER GLOBAL XRS
2010 / SN 9420 ASKING PRICE / “PRICED TO SELL-CALL TO DISCUSS”
TWO OWNERS SINCE NEW & NEVER CHARTERED AIRFRAME HOURS / 3035 AIRFRAME CYCLES / 1447 CAPACITY / 15 PAX
TECHNICAL DETAILS AVAILABLE HERE
AV_BUYER_December 2020 Folder.indd 4
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10.11.2020 14:30:19
BOMBARDIER GLOBAL EXPRESS 1999 / SN 9033 NEW LISTING / USD $6.95M
COMPETITIVELY PRICED TO SELL AIRFRAME HOURS / 8568 AIRFRAME CYCLES / 3596 CAPACITY / 14 PAX
TECHNICAL DETAILS AVAILABLE HERE
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10.11.2020 14:30:25
Project1.qxp_Layout 1 17/09/2020 10:17 Page 1
NEW AIRCRAFT FOR SALE
2001 CITATION EXCEL S/N 5605154 7’000 Hours, EASA, Engines on JSSI, WAAS/LPV, ADS-B Out, APU
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NEW AIRCRAFT FOR SALE
1995 CITATION ULTRA S/N 280
2014 CITATION CJ4 OFF-MARKET
8’618 Hours, EASA, WAAS/LPV, ADS-B Out
3’195 TT, ADS-B Out v2, T-CAS 7.1, Airframe & Engines on Programs,EASA, 9 Pax, WAAS, LPV, One Owner since New.
2012 LINEAGE 1000 S/N 317
2014 LEGACY 650 S/N 1194
1’840 TT, Engines on GE Onpoint Program, WiFi, Airframe on EEC, 19 Passengers Configuration.
One US Owner, Gorgeous Turn-key Aircraft, 2’900 hours, RRCC, ADS-B/CPDLC/FANS 1/A, WAAS/LPV, 13 pax and GoGo Wifi
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$13.25M
NEW AIRCRAFT FOR SALE
2007 LEGACY 600 S/N 995
2011 PHENOM 300 S/N 50500062
4’843 TT, Recent 144 Mths/LDG OVH/ ADS-B/Cabin Touch-up, EASA, EEC, RRCC Engines Program, Wi-Fi, 13 Pax.
3’260 Hours, EASA, Engines on JSSI, Airframe on EEC
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GULFSTREAM IV S/N 1068
2010 GULFSTREAM G550 S/N 5303
Corporate Care, ASC-190, Gear Overhaul Done, New Paint, Carpet and Flooring, and WiFi
2’421 TT, Engines & APU on Programs, 2018 Paint & Interior, 96 Months Performed in December 2019
2014 GLOBAL 6000 OFF-MARKET
2003 HAWKER 800XP S/N 258612
1’430 TT, T-CAS 7.1, Airframe & Engines on Programs, EASA, 13 Pax, WAAS, LPV, High-Speed Internet, One Owner Since New
4’050 TT, Engines on MSP Gold, 8 Pax + Belt Lav., G-Check + ADS-B Completed in January 2020.
2008 A109E POWER S/N 11728
2010 A109S GRAND S/N 22162
Engines on JSSI 100%, Only 307 Hours TT, Recent Paint, EASA Compliant, 6+1 Passengers Configuration, VIP Interior
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ALSO AVAILABLE 2014 LEGACY 650 Off-Market 2010 LEGACY 600 Off-Market 2013 CHALLENGER 605 Off-Market 2008 CHALLENGER 300 Off-Market 2007 GULFSTREAM G200 Off-Market 2014 CITATION X+ Off-Market 2007 CITATION CJ2+ Available Soon 2021 DELIVERY PILATUS PC24 Off-Market
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Freestream 1 December.qxp 18/11/2020 11:17 Page 1
2007 in Service 2010 BBJ S/N: 36090. Airframe Total Time: 2,451 hours, Aircraft Total Cycles: 724
2008, in service 2009, Boeing BBJ3 S/N: 37560. Airframe Total Time:3,230 hours. Aircraft Total Cycles: 984
2015 in Service 2017 Boeing 787-8 VIP Airframe Total Time: Delivery Hours. Aircraft Total Cycles: Delivery
2001 BBJ S/N: 29972 YG073. Airframe Total Time: 8901.7 hours. Aircraft Total Cycles: 3612 FREESTREAM AIRCRAFT LIMITED
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Freestream 2 December.qxp 18/11/2020 11:17 Page 1
2018 Gulfstream G650ER S/N: 6286 Airframe Total Time: 245.9 hours Aircraft Total Cycles: 77
2014 Gulfstream G650 Airframe Total Time: 2339.1 hours Aircraft Total Cycles: 642
Gulfstream G450 S/N: 4088 Airframe Total time: 3,028 hours Aircraft Total Cycles: 1,198
2008 Gulfstream G450 S/N: 4115 Airframe Total Time: 6615,3 hours Aircraft Total Cycles: 3159
2009 Falcon 7X S/N: 046 Airframe Total Time: 6504.8 hours Aircraft Total Cycles: 1639
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MarketIndicators NOV20.qxp_Layout 1 17/11/2020 12:58 Page 1
MARKET INDICATORS
Business Aviation Market Overview Entering the final month of an unpredicted — and unpredictable — year, what’s the status of aircraft sales? Brian Foley, Editor, Market Indicators weighs the evidence, assessing the contributing factors… t’s not often that pre-owned business aircraft sales activity outshines new transactions. Usually, the tide raises (or lowers) new and used equally, based on such factors as the economy, or one’s balance sheet, personal portfolio performance, and confidence in the future. Not this time. Strong used sales activity is often used as a predictor of
I
16 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
new aircraft sales under the presumption that a lack of quality, low-time pre-owned inventory with rising prices will drive hapless buyers into the new airplane showroom. That hasn’t happened in 2020, with pre-owned transactions on track to outpace last year, while overall new aircraft deliveries will be down an estimated 25-30% by year-end.
www.AVBUYER.com
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Exceptions to the Generalization
In the past, there had been two distinct categories of buyers – new and used. The used buyer was typically value-driven, seeking the most bang for the buck, whereas the new buyer favored things like a warranty, personal customization and disliked the thought of having someone else’s discarded airplane. More recently though there have been exceptions to that generalization, with the price divide between used and new becoming so great that justification to pay an outsized premium for that new leather smell has become a much weaker argument. Given that used airplane sales activity is decisively outperforming new, one would assume that there must be some obvious explanation. While the answers to this anomaly may not be immediately clear, one solution to find an answer would be to ‘follow the money’, which often unlocks many of the world’s mysteries.
Depreciation
First, new business jets depreciate a lot faster, and more precipitously than they used to. At one time a new buyer could reasonably expect their airplane to retain perhaps 70-80% of its value after five years and, in some cases, particularly for newlyannounced models, even appreciate. (This may have been the expectation back when demand outstripped supply of business jets.) Today, though, supply roughly equals demand, meaning corporate jets now depreciate like a capital good is expected to (i.e., a car, airliner or even a refrigerator). As such it depreciates more quickly with time, with a more conservative estimate now being to assume that it’s worth roughly half its value in five years. As an example, just a few years ago a $30m new jet buyer could anticipate losing around $6m in value over the first five years. Today that number is closer to $15m, providing yet another incentive to purchase a well-depreciated pre-owned aircraft instead. Covid-19 may also be driving some new entrants into Business Aviation. In general, this category of aircraft buyer lacks the financial depth of traditional owners, and is more likely to be sticker-shocked at the costs to buy, staff, operate and maintain a jet, which persuades them to first try a pre-owned aircraft which offers a better value.
Tax Law Still has Legs?
The last supposition of used sales activity outpacing new would be that the US tax law allowing an accelerated tax write-off on an airplane purchase, even a used one still has legs. While early in the year it seemed that those who could benefit from the deduction had already taken it, Covid-19 may have brought in new entrants who are equally motivated by the perk. Pre-owned sales activity this year is expected to be on par with, or maybe a little better, than last year’s level. Ultimately, this is a remarkable achievement given the Covid-19 environment. It is anticipated 2021 will be another decent year for preowned as new deliveries try to claw back their 2020 delivery losses. MI www.brifo.com
Brian Foley formed Brian Foley Associates (BRiFO) in 2006 to assist aerospace firms and investors with strategic research. In addition to his work as Market Intelligence Editor, AvBuyer, he is a regular contributor for Forbes.com and his views are published in the media worldwide. Currently, Brian serves the Transportation Research Board as a member of the Business Aviation, helicopter, commercial airline and UAV system subcommittees, and he previously previously served on the Board of a Wall Street financial firm. Before starting his consultancy business, Brian was marketing director at Dassault Falcon Jet for 20 years, and started his career at Boeing. He is an instrument-rated private pilot. https://www.linkedin.com/in/brifo/
“Pre-owned sales activity this year is expected to be on par with, or maybe a little better, than last year’s level. Ultimately, this is a remarkable achievement given the Covid-19 environment.”
www.AVBUYER.com
AVBUYER MAGAZINE Vol 24 Issue 12 2020
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MARKET INDICATORS
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•
•
• •
The North East was still ailing, and although New York’s activity was close to 90% of normal, New Jersey was still >40% behind; The Mid-West was also well adrift, with both Illinois and Ohio 20% down, though Michigan was only 9% off; South Central activity was mainly aligned to Texas where trends were static at 85% of normal; The West Coast improved markedly from September to October, 11% down YoY.
European Activity
Flight Activity Slides as Quarantines Renewed From the start of October into the first week of November, global Business Aviation sectors declined by 14.7% compared to the same period in 2019, says WingX Advance. BizAv activity represented just over 20% of global fixed-wing activity for the period, up from 12% in 2019. Year-on-year (YoY), Business Aviation trends picked up in October compared to September and hit a post-March high point in mid-October. Since then, rolling seven-day activity slid back 10%, declining each day through November 3rd. North America saw 78% of the global Business Aviation sectors in October/start of November, yet activity there was down 16% YoY for the period. (That represented a slight improvement
18 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
on the 18% YoY decline in September). The weakest North American markets were Canada, Mexico, Bahamas, Sint Maarten, and Bermuda. Overall, the United States saw sectors fall 14% compared to the same five weeks in 2019, though notably sectors between two and three hours increased YoY. In fact, the second half of October was the busiest period for Business Aviation in the US since February, but recovery has since lapsed again. The flight activity trends across the US since September maintained a familiar narrative: • The South East showed quite robust trends with jet and turboprop departures in Florida and South Carolina up;
Business aviation trends in Europe held up over October and the start of November, down 12% on same period in 2019. However, the resurgence of the virus and the associated lockdown renewals saw a steady deterioration, with a 22% drop in the rolling average activity since the start of October. The UK continued to be the hardest hit, with outbound flights falling 32% since September. Spain, France, Switzerland and Belgium all saw 20% declines. Other countries, including Germany, Italy and Austria, maintained 90%-plus of normal activity. Flight activity in Sweden was only 2% off, and Business Aviation flights in Portugal were up 10%, while in Greece and Turkey flights soared more than 40% above usual for the time of year.
Worldwide
The charter market continued to be the resilient sector, down only 6% YoY. Fractional operators also made a big comeback, with October activity trailing by 8%. Sadly, private flight departments were operating at least 20% below par. “With the resurgence of the virus in Europe inevitably heading towards the United States, the industry faces a turbulent few months, and that is already reflected in the relapsing recovery in flights coming into November,” suggested Richard Koe, Managing Director, WingX Advance. “The business traveller isn’t going to come back in large numbers this winter, so much depends on the sustainability of leisure demand - especially for charter flights.” MI www.wingx-advance.com
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MARKET INDICATORS
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Pent-up Demand Boosts BizAv’s Winter Resilience Business Aviation flight hours rose 87.5% between Q2 and Q3 as flying resumed following the dramatic declines related to COVID-19, says Jet Support Services, Inc. (JSSI) in its quarterly Business Aviation Index… The Index reports on the global flight activity and utilization for more than 2,000 business aircraft enrolled on JSSI hourly cost maintenance programs, including jets, turboprops and helicopters. Since average flight hours reached all-time lows in April due to the COVID-19 pandemic, BizAv activity has recovered to 78.4% of 2019 levels. As some of the pent-up travel demand was released, month-over-month flight activity between August and September 2020 climbed 7.1%, the first monthly increase in flying hours since Q3 2019. JSSI’s data reveals that several industries initially hit hardest by the coronavirus pandemic – such as business services and financial services – demonstrated the most significant recoveries in Q3, recording 84.3% and 111.4% increases in flying hours respectively, quarter-over-quarter.
Large aircraft have taken the biggest plunge globally, says JSSI, with YoY flight hours down 30.7%. By comparison, ‘small-cabin aircraft’ saw the least pronounced decrease in activity, down just 2.1% YoY, reflecting their value during the pandemic.
Looking ahead, Neil Book, President and CEO, JSSI, predicts “elevated leisure travel during the winter months as tighter travel restrictions, coupled with the virus resurgence will continue to inhibit business-related flight hours.” MI www.jetsupport.com/insights
YTD Avionics Sales Down 27% The Aircraft Electronics Association released its Q3 2020 Avionics Market Report, and total worldwide Business & General Aviation avionics sales amounted to $1.67bn, YTD, down 27% compared to 2019. During Q3 2020 (July-September), sales decreased 33.4% compared to Q3 2019. However, sales in Q3 2020 were up 5.9% compared to Q2 2020, with retrofit sales up 10.8% over Q2. Of the >$1.6bn in sales YTD in 2020, 54.5% came from the retrofit market (avionics equipment installed after original production), while forward-fit sales (avionics equipment installed by airframe manufacturers during original production) amounted to 45.5%. According to the companies that separated their total sales figures between North America (US and Canada) and other international markets, 73.7% of the YTD sales volume occurred in North America, while 26.3% took place in other international markets. 22 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
“The significant contraction of industry sales during the last six months has been driven by the international health crisis,” said AEA President and CEO Mike Adamson. “However, we are encouraged with the direction of activity in the retrofit market, which is up nearly 11% over Q2 total sales.
“In addition, the overwhelming majority of AEA member shops and manufacturers are continuing their essential operations, and many are reporting customer backlogs that extend several weeks and into next year.” MI www.aea.net
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Honeywell November.qxp_Layout 1 21/10/2020 11:43 Page 1
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MARKET INDICATORS
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Table A
In-Service Aircraft Values & Maintenance Condition As the number of monthly transactions continued increasing, Asset Insight’s October 31, 2020 market analysis covering 134 fixed-wing models, and 2,174 aircraft listed for sale, posted the largest monthly inventory decrease (3.2%). The YTD inventory fleet is now 0.4% below the number of assets listed in December 2019, with availability decreasing for all four groups. • • • •
Medium Jets led the October decrease, down 3.6%; Small Jets followed at 3.2%; Large Jet inventory fell 3.1%; Turboprop availability decreased 2.9%.
Aircraft Values
Asset Insight’s tracked fleet’s average Ask Price increased for the third consecutive month to post a 12-month high figure. October’s 3.3% increase equated to a 1.7% increase YTD, although not all groups saw the rise. • • • •
Large Jets were up 4.5%, decreasing the group’s loss for the year to 9.6%. Turboprops were the other group to post an increase, 2.8% (they are now up 0.6% YTD). Medium Jet Ask Prices decreased a nominal 0.6%, but are still 3.8% higher YTD. Small Jets lost 0.9%, equating to an increase of 7.8% YTD.
Inventory Fleet Maintenance Condition The rise in aircraft transactions, and surprising buyer interest in lower quality assets during the month, created an inventory fleet mix improvement with respect to both Asset Quality and Maintenance Exposure. • •
October’s 5.352 Quality Rating was a 12-month high figure, and kept the tracked fleet within the ‘Excellent’ range for all of 2020, on Asset Insight’s scale of -2.5 to 10. The inventory fleet’s Maintenance Exposure, an aircraft accumulated/embedded maintenance expense, improved (decreased) 2.1% to $1.433m, thereby noting that upcoming maintenance expense events for available assets will be lower.
Maintenance Exposure to Ask Price (ETP) Ratio
The ETP Ratio is a useful indicator of an aircraft’s marketability. It’s computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During Q3 2020, assets whose ETP Ratio was 40% or more were listed for sale 50% longer (on average) than aircraft whose Ratio was below 40% (269 vs 404 Days on Market). Asset
26 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
page 30
Fleet Maintenance Condition $ Million $1.50
5.45
$1.43
5.35 5.352
5.25
$1.45
$1.40 $1.35
5.15
$1.30 N
D
J
Quality Rating
F
M
A
M
J
Maintenance Exposure
J
A
S
O
Quality Rating Trendline
Table B G500 1.2% F8X 3.3% CL-650 4.7% G650ER 5.3% Citation Latitude 5.3% G650 6.0% Citation Sovereign + 7.2% F2000LXS 7.5% Citation CJ3+ 8.7% F7X 8.8% G280 9.1% CL-350 9.8% Legacy 500 10.3% Global 6000 10.9% King Air 350i 13.0% F900LX 13.4% Citation X+ 13.8% F2000LX 14.1% Citation CJ4 525C 14.3% Citation XLS+ (MSG3) 14.5% Phenom 300 15.3% Legacy 650 16.0% Boeing BBJ 16.5% Learjet 70 16.5% F900EX EASy 16.8% Pilatus PC-12 17.3% F2000EX EASy 17.6% Citation Encore + 19.0% Citation Sovereign 680 19.1% G450 19.1% CL-605 20.1% Piper Meridian 20.3% F900DX 20.4% King Air 350 - Post-2000 20.9% Caravan 208-675 22.4% TBM 850 22.7% Citation CJ3 23.6% G150 23.6% Phenom 100E 25.3% Nextant 400XTi 25.6% Global 5000 26.1% CL-300 26.3% Hawker 900XP 26.9% F900EX 27.4% F900C 29.7% Citation CJ2+ 525A 29.8% G550 30.7% Global XRS 31.2% Citation Encore 31.3% F2000EX 31.8% King Air B200 Post-2000 33.6% Citation CJ1+ 34.0% Citation XLS 34.8% Piaggio P-180 II 34.9% Citation Mustang 510 35.9% GV 37.0% Citation CJ2 37.6% Learjet 45XR 38.7% King Air 350 - Pre-2001 39.5%
Embraer Legacy 600 40.6% Phenom 100 40.8% Citation XLS (MSG3) 41.7% Caravan Grand 208B 41.8% Citation CJ1 43.1% Hawker 850XP 43.3% F900 44.0% King Air 300 45.1% Learjet 60XR 45.5% Caravan 208 45.8% Hawker 4000 46.8% King Air B200 - Pre-200147.9% F50EX 49.1% Citation Excel 560XL 50.9% G200 53.7% Hawker 400XP 54.2% Hawker 750 54.6% CL-604 54.8% Learjet 40 56.2% GIV-SP (MSG3) 56.4% Citation V Ultra 60.4% Premier 1A 61.1% F900B 63.8% TBM 700A 66.2% Global Express 70.5% F2000 70.9% Citation VII 71.2% Learjet 40XR 75.3% Learjet 45 w/APU 75.5% Citation V 560 75.6% Hawker Beechjet 400A 76.9% Learjet 45 88.1% Premier 1 97.2% Hawker 800XP 98.5% Learjet 60 98.8% F50 103.1% G300 104.3% Hawker 1000A 110.3% Learjet 31A 115.2% Citation VI 118.5% GIV-SP 118.5% Piaggio P-180 120.0% Learjet 55C 120.4% CL-601-3R 122.9% King Air C90 124.4% Citation ISP 124.4% Hawker Beechjet 400 126.2% G100 130.8% Citation II 146.2% Hawker 800A 155.0% Learjet 36A 178.7% CL-601-3A 183.0% GIV 190.1% Learjet 31 199.2% Learjet 55 199.4% Hawker 125-700A 204.5% Citation III 223.6% Citation Bravo 236.3% Learjet 35A 267.6% CL-601-1A 283.3% F20-5 294.5% GIII 610.6%
Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of October 31 2020 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
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Hatt & Associates December.qxp_Layout 1 18/11/2020 10:10 Page 1
2018 King Air 350i S/N: FL-1133 Reg: C-GMWW 346.1 hours since new ADS-B Out Aircell ATG-5000 WiFi Collins Pro Line Fusion Asking Price: Make Offer
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2006 CESSNA CITATION X • Serial Number: 750-0261 • EASA and Part 135 Certified • Elliptical Winglets
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MarketIndicators NOV20.qxp_Layout 1 17/11/2020 13:01 Page 6
MARKET INDICATORS
Large Jets
Medium Jets
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure
$ Millions
$3.25
$1.30
$3.00 $2.75
$1.25
Oct-20
Jul-20
Aug-20
Jun-20
May-20
$1.28 Apr-20
$2.50
Mar-20
$2.90
Jan-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Jan-20
Feb-20
Dec-19
Nov-19
$10.5
$3.00
$3.00
$3.50
Feb-20
$11.5
$3.10
$1.35
$3.45
Dec-19
$12.0
$12.5
$3.75
Sep-20
$3.20
Nov-19
$13.5
$ Millions
Asset Quality Rating
Asset Quality Rating
Scale -2.500 to 10.000
Scale -2.500 to 10.000
5.800
5.740
5.400
5.297
5.300
5.700
5.200
5.600
Insight’s October analytics revealed that over 51% of our tracked models – and nearly 56% of our tracked fleet – posted an ETP Ratio greater than 40%. The month’s fleet ETP Ratio improved to 69.8% from September’s 73.7%, reflecting a figure slightly worse than the 12-month average. •
At 40.7%, Turboprops registered the best ETP Ratio (for the eleventh consecutive month), and the figure equated to a 12-month low (best) for the group. Large Jets recaptured second place with a Ratio of 61.8%, a substantial improvement over September’s 12month high (worst) 74.1%. Medium Jets fell to third position, even with a Ratio decrease to 68.9%, the group’s 12-month low. Small Jets improved from September’s 12-month worst figure of 100.3%, but only to a still-troublesome 98.8%.
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
5.000 Nov-19
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Jan-20
Dec-19
Nov-19
5.500
Feb-20
5.100
territory, while Maintenance Exposure improved 3.1% to better the 12-month average. The tracked inventory decreased by 16 units, meaning availability is now 14.4% higher YTD. October’s Ask Prices reflected the group’s 12-month average figure. With both Quality Rating and Maintenance Exposure improving due to lower quality assets leaving the available fleet, Q4 is likely to post strong sales figures.
With the tracked inventory decreasing, 10.1% of the active fleet was listed for sale in October, continuing the steady monthly decrease dating back to May’s 11.3%. Turboprops once again led the way, this time at 8.0%, Large Jets further improved to 8.4%, Small Jets decreased to 10.4%, and Medium Jets improved to 12.1%.
Medium Jets: Higher quality assets were the ones primarily trading in October, worsening the available fleet’s Quality Rating by a Asset Insight analytics (www.assetinsight.com) nominal 0.3% but, at 5.297, maintaining a better-thanaverage figure while keeping the group within the ‘Excellent’ range. A decrease of 23 assets in the inventory worsened Maintenance Exposure slightly by 0.2%, but this figure was also better that the group’s 12-month average. As we have previously stated, statistics generated by Medium Jets continue to defy logic, since an Ask Price decrease of 0.6%, together with the Maintenance Exposure increase should have increased the group’s ETP Ratio. But, at 68.9%, the average ETP Ratio actually improved from September’s 70.9%, to reflect a 12-month low.
Large Jets: The Quality Rating improved 1.1% for Large Jets, boosting the group up to 5.640 and deeper into ‘Outstanding’
Small Jets: Inventory decreased by an additional 20 units during October, creating a 4.7% YTD reduction in availability –
• • •
Market Summary
30 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
www.AVBUYER.com
MarketIndicators NOV20.qxp_Layout 1 17/11/2020 13:03 Page 7
AVBUYER.com
Small Jets
Turboprops
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure
$ Millions
$1.10
$0.99
$1.00
$1.85 $1.84
$1.60
$0.60
$1.50
$0.55
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
Apr-20
May-20
Feb-20
$0.53 Mar-20
$1.40
Jan-20
$0.70
Dec-19
Oct-20
Sep-20
Jul-20
Aug-20
Jun-20
May-20
Apr-20
Feb-20
Mar-20
Jan-20
Dec-19
$0.80 Nov-19
$0.65
$1.63
$0.90
$1.75
$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
5.236
5.160
5.150
5.050
5.200
4.950
5.100
4.850 Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Nov-19
Oct-20
Sep-20
Aug-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Jul-20
4.750
5.000
Dec-19
$1.65
$1.70
Nov-19
$1.95
$ Millions
Asset Insight analytics (www.assetinsight.com) Asset Insight analytics (www.assetinsight.com)
and the latest fleet mix improved the group’s Quality Rating 1.9%. At 5.236 the figure is better than the 12-month average, but not enough to rise above the ‘Very Good’ Although Ask Prices Assetrange. Insight analytics (www.assetinsight.com) lost some ground during October, they are still up 7.8% YTD. Maintenance Exposure improved 2.0% and, while the figure is still worse than the 12-month average, it did manage to improve the ETP Ratio to 98.8% from September’s 12-month worst 100.3%. (In other words, the average Small Jet has embedded maintenance virtually equal to its Ask Price, ergo a low price may not equate to a good value.)
Asset Quality Rating Key Outstanding Excellent 5.500 5.250 or to Greater 5.499
Very Good 5.000 to 5.249
Good 4.750 to 4.999
Below Average Average 4.500 Less to than 4.749 4.500
Turboprops:
With a 14-unit reduction to inventory, the tracked Turboprop fleet is now only 2.4% above its 2019 year-end figure, and is also sporting a 2.0% improvement to its Quality Rating and a 2.4% improvement to Maintenance Exposure (both reflecting 12-month best figures). With Ask Price posting an increase that’s flipped the YTD figure into positive territory, and a 12month best ETP Ratio that’s only 0.7% worse than the 40% Asset Insight considers to be ‘excessive’, Turboprops offer some great opportunities for buyers and sellers during the last two months of 2020! page 36 MI www.assetinsight.com
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 12 2020
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MarketIndicators NOV20.qxp_Layout 1 17/11/2020 13:05 Page 8
MARKET INDICATORS
AVBUYER.com
Will the Covid-19 Impact be Short Term on New Jet Sales? The COVID-19 pandemic is not expected to have a longterm impact on business jet sales. At least that’s the prediction of Honeywell in the company’s latest annual 10year forecast of the business jet market. Mike Potts analyses… Honeywell expects the business jet market to total 7,300 aircraft worth $235bn over the period from 2021 to 2030, representing a 4% reduction from the 7,600 jets worth $248bn they predicted for the comparable period a year ago. By comparison, JETNET iQ, the other major player in business jet market forecasting, is less optimistic, with the expectation of 6,584 jets worth $217.5bn over the 10-year period between 2020 and 2029 (that’s a 6.6% reduction in units and a 9.75% drop in billings from what JETNET forecast a year ago).
Purchase Plans Unaffected
According to Honeywell, 80% of jet operators surveyed say their purchase plans have not been affected by the Covid-19 crisis, and, as a result, Honeywell reports five-year purchase plans are about what they were last year, which was rather optimistic… The Covid-19 crisis has clearly had an impact on deliveries 36 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
so far in 2020, and in the most recent General Aviation Manufacturers Association Shipment Report (Q2), jet sales were off 26.7% from the 333 aircraft that were shipped in H1 2019 to just 244. Billings, meanwhile, were down 20.2%. Honeywell does not expect this downturn to last, and says that business jet utilization is expected to be at 80-86% of 2019 levels by the end of 2020, and to fully recover by mid2021. With that recovery the purchase market should rebound too, it believes. As a result Honeywell expects the net loss of aircraft sales over the coming decade to only be about 300 units. Based on historical delivery patterns, that could be about the reduction we are likely to see in the course of this year. Honeywell’s projected delivery chart shows a steady upward trend over the coming decade with this year’s market projected around 500 units, rising to around 800 by the end of the period.
Market Confidence to Improve?
JETNET polls its respondents about their confidence in the current market. A total of 37.2% of respondents believe the market is turning upward, while 29.8% believe we are at the low point. That leaves 33.0% (one-third) who believe we are still trending downward. page 40
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MarketIndicators NOV20.qxp_Layout 1 17/11/2020 13:05 Page 9
MARKET INDICATORS
Where’s the Market Focus Going to Be?
Looking at the overall market, Honeywell says operators continue to focus on larger, longer-range aircraft, with Large and ‘Mid-cabin’ models expected to account for 65% of purchases in the next five years. JETNET agrees that the market favors larger aircraft, noting that 79.5% of sales in the next 12 months are expected to be Medium or Large Jets.
Projected Demand by Region
As a part of its forecast, Honeywell breaks the market down by region. Honeywell still expects North America to account for 64% of the jet market over the next five years, up from 60% last year. That doesn’t so much represent a gain as it does a reduction among other parts of the world. Some 32 percent of North American jet operators expect to buy new airplanes in the next two years, down from 36% a year ago. On balance, Honeywell characterizes the new airplane acquisition plans in North America as ‘flat’. Europe will represent 18% of the global jet market in the next five years, down 1% from last year. Fully 24% of operators planning to buy in the next five years expect to make their purchases during the next 24 months. The Latin American market will account for around 3% of business jet purchases in the next five years, down from 7% in Honeywell’s forecast a year ago. Only about 19% of those operators expect to buy in the next two years, compared with a worldwide average of 30%. Honeywell ascribes the reduction in the Latin American market to “economic pessimism”. 40 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
AVBUYER.com
Purchase plans in Asia and the Pacific Rim are stable and unchanged from a year ago, according to Honeywell, when they were expected to account for 10% of the jet market over the next five years. About 30% of purchases are expected in the next two years, consistent with the world average, but down by about 10% from a year ago. In the Middle East and Africa purchase plans increased from a five year low in 2019’s forecast, and are expected to account for about 4% of the worldwide market. One-third more customers responding the Honeywell’s survey (about 16%) said they expect to replace their aircraft or add to their fleet in the next two years, up from 12% a year ago.
Airline Declines Not Feeding BizJet Demand…
Interestingly, Honeywell said its survey does not support the hypothesis that a decline in airline travel has resulted in an increase in business jet acquisitions. It adds that more than 95% of operators said they expect no change in their fleets due to commercial travel reductions. MI www.honeywell.com or www.jetnet.com
❙
Mike Potts is respected industry-wide as an aviation journalist. He has worked in the communications departments of Beech Aircraft, Sino Swearingen and M7 Aerospace, and has been analyzing GAMA’s delivery reports for AvBuyer since 2003 where he has built an excellent track record for accurate shipment predictions. Contact him via msmkpotts@aol.com
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AeroBuyNow December.qxp_Layout 1 16/11/2020 11:36 Page 1
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1999 BEECH 1900D UE-360 7459/6903 Engines Hours Remaining EASA AIR OPS CAT Dual Air Conditioning - Electrical Ground Cooling Dual Inverters 3$; &UHZ $LUOLQH &RQÆ&#x201C;J (06 RU 3D[ &RQÆ&#x201C;J Z 6WUHWFKHUV 3URYLVLRQV Fresh Phase 6 KING AIR 200 BB -13 1974 YOM PT6A-41 Engines LH with 1583 SMOH/3000TBO RH with 1495 SMOH/3600TBO Hartzell HC-D4N-3A with 38 SPOH due in 2023 Garmin GTN GPS Fresh Phase 1 to 4 - Turn Key ! Cargo Door No Damage History - All Logs Since New KING AIR B200 BB1701 2000 YOM Only 5,121 hours PT6A-42 Engines @ 4100 TBO On Partial JSSI - 1430 SMOH - 253 TSHSI Props due in 2022/2023 Frakes Exhaust Stacks No Damage History - All Logs Since New BELL 206B3 4583 2004 YOM Excellent Cosmetics Very Good Remaining Potentials No Damage History All Logs Since New Always Hangared
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2018 P180 AVANTI EVO 3008 450 Hours Only! Satcom - CVDR - HF Radio Additional Fuel Tank - LifePort 6»+ Stretcher Kit Corporate 4 Ambiente Beige Leather 6 Pax Interior Warranties Remaining Owner Super Motivated!
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Over the years, SPARFELL has continuously grown and evolved to become the aviation group it is today. Only in 2019 and 2020, SPARFELL has opened a new company in Washington DC – SPARFELL USA Inc. - to broaden its trading business, has established an AOC in San Marino and acquired LaudaMotion Executive with its AOC in Vienna from the great Niki Lauda. Through its AOC, Sparfell is operating H ÅLL[ VM 3LHYQL[Z *OHSSLUNLYZ .SVIHSZ HUK .\SMZ[YLHTZ 650ER, providing tailor-made experiences to the highest safety standards according to international regulations, truly embracing the spirit of the late Niki Lauda.
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SPARFELL GENEVA: +41 22 787 08 77 SPARFELL USA: +1 301 525 4380 CONTACT@SPARFELL.AERO
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Corporate Concepts December.qxp 19/11/2020 11:46 Page 1
Corporate Concepts International, Inc. Legacy 600 Next Legacy to Sell – Open to Offers 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.
Falcon 900EX All 2020 upgrades, Multi-zone interior with 13 seats, forward and aft lavatories, dual berthing aft divans, 12 month / 800 hour inspection just completed. Exceptional opportunity – Make your offer.
Falcon 50-4 with Proline 21 731-4 engine upgrade for better hot and high performance, new generation Proline 21 avionics, Falcon 50EX-style interior with soundproofing package, all programs and compare F50-4 to the F50EX at www.flycci.com
Gulfstream G-V Exceptional Pedigree, All 2020 Upgrades, FANS-1/A, New Paint, Recent Interior, 17 seats, Forward Galley, Forward and Aft Lavatories, All Programs. Best G-V Opportunity – Contact us for details
Corporate Concepts December.qxp 19/11/2020 11:46 Page 2
VVIP Boeing 737-300 Sale or Lease/Purchase Corporate Pedigree, never an airliner, all 2020 upgrades, FANS-1/A, GE On-Point, recent major inspection, 42 VIP seats, long range tanks, new paint. Less than 8,000 hours total time. Available for demo. See details in www.flycci.com.
VVIP Airbus A340 One of a Kind Opportunity Fresh from major inspections, gear overhaul and paint. Never an airliner â&#x20AC;&#x201C; 12 hour range with 77 pax in ultimate comfort with multiple staterooms. All 2020 upgrades including FANS-1/A.
VVIP Boeing 737-200 Fresh from major inspections and gear overhaul, All 2020 upgrades, FANS-1/A, new interior, new super soundproofing, new paint, many upgrades, long range tanks, Low Hours - Never an airliner. See details in www.flycci.com.
ATR 72-500 Sale or Lease / Purchase Recent major inspections, gear and prop overhauls. Passenger configuration with new carpet and leather seat covers. All white ready for new operators livery. EASA qualified. See www.flycci.com for details.
See www.flycci.com for Details, Videos, Photos or to Schedule a Private Showing of Any of our Aircraft. Off Market Gulfstream G-200 â&#x20AC;&#x201C; Late model, Less than 3,500 hrs, All Programs 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
Market Insights.qxp_MARKET INSIGHTS 17/11/2020 14:15 Page 1
MARKET INSIGHTS
Will Airline Chaos Mean a Business Jet Renaissance?
Considering Covid-19, and the consequent global economic
impact, is now the time to re-evaluate the role of business jets in this ‘new normal’? Jetcraft’s David Dixon explores…
here’s no Harvard Business School course for dealing with the impact of coronavirus. This situation feels like the global financial crisis of 2008 and SARS (and more besides) rolled into one. Few industries, if any, have suffered as badly as the airline sector. Traffic demand collapsed rapidly as the coronavirus pandemic spread globally. And those struggles are far from over. In our new (abnormal) normal, adding intense medical caution to security checks will surely make the airline and airport experience even more time-consuming and frustrating than before.
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‘Medical passports’ might be needed to verify your health status. You may have to provide a detailed history of your travel activities before arriving at the airport. Priority boarding will be a non-essential complication many airlines may abandon. And we’re not only talking about the departures process; arrival terminals are imposing new checks too. In short, one of the business traveller’s worst nightmares – ‘dead’ time in an airport – is about to become more common and lengthy, and who knows when (or if) that situation will improve. As airlines streamline and restructure to survive, www.AVBUYER.com
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DAVID DIXON is president of leading aircraft sales specialist Jetcraft Asia. He was a founding member of the Asian Business Aviation Association (AsBAA) and was Vice Chair from June 2017-June 2019. His book – I Sell Aircraft – No ‘Plane’ Business (available on Amazon) – was published in June 2020, and takes readers through a 47-year journey in aircraft sales. https://www.linkedin.com/ in/david-m-dixon-mbefraes-69003777/
“Predictions of doom and gloom in business aircraft sales have proved unfounded to date.”
some direct city-pair connections will disappear and frequencies could plummet. Passengers will be forced into high-risk transit stops (which bring with them heightened potential for delays), or onto slow-moving surface transport. And as some airlines remove larger aircraft from their fleets, such as the Airbus A380 and Boeing 747, those luxurious first-class cabins will be eliminated too. As airline services are cut, where do we go from here? The corporate world can’t just stop moving.
A Business Jet Solution?
Avoiding crowded commercial terminals and connecting flights, and instead flying directly to and from spacious private facilities at your local airport and destination on a business jet, is such an attractive option. Exposure to risk through fellow passengers is dramatically reduced when you are only travelling with colleagues or family members, instead of www.AVBUYER.com
pushing past hundreds of strangers in airline terminals which are simply not designed for social distancing. Business Aviation’s coronavirus experience has been very different from that of the airline industry. Responding quickly to public need in the crisis, jets were mobilised at once for evacuation and repatriation flights, initially from China and then across the world as the virus spread. Aircraft used to carrying passengers suddenly began delivering urgent medical supplies instead. Predictions of doom and gloom in business aircraft sales have proved unfounded to date. Deals have continued to close and market prices haven’t been hit nearly as hard by COVID-19 as by the 2008 economic crisis. Unlike in 2008, today’s troubles haven’t been caused by a financial sector massively overselling exposure. And there aren’t a large number of opportunistic speculators hoping to make a quick profit from business aircraft trading with no interest
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in sustaining a healthy industry. Fractional operators have not been forced to dump a lot of capacity.
Assets, not Toys
Selling aircraft is hard – I once sat through three hours of Beijing Opera, oblivious to what was going on around me, to close a deal in China. But the appeal of a business jet is arguably stronger now than ever before. It’s easy to dismiss corporate jets as an extravagance, but the owners of these aircraft see them as invaluable, time-generating assets. For as long as the threat of coronavirus remains, the onboard experience of a business jet passenger will be – and, critically, will feel – far safer than travelling by airline. The latest high-efficiency particulate air (HEPA) filters are now fitted in many business jets. Consequently, air quality in these aircraft is so good there is a far greater risk of virus infection in an airport, car, office or shopping mall. And let’s not ignore another key health angle – no airline can match the level of personal security and privacy offered by a business aircraft.
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A Time for Change?
If you want to survive and thrive in these turbulent times, you need to be flexible, inventive and tenacious. Right now, people who own business jets are committed to keeping them. Moreover, people who don’t own these assets but can afford to do so are thinking very hard indeed about acquisition. Business jets are perfect to facilitate the type of vital, face-to-face, C-suite meetings COVID-19 brought to a sudden stop; meetings the world needs to happen for the economy to recover and prosper. And when large public events are possible again, Business Aviation will be there to support lucrative corporate hospitality. The economy needs these injections of investment and income. Through no fault of their own, many airlines are struggling to function and survive right now. A bright future for Business Aviation – which, unlike the airline industry, is poised to grow quickly – could help kick-start the global economy and is a possibility we can’t afford to ignore. More information from www.jetcraft.com T
MARKET INSIGHTS
at AVBUYER.com
www.AVBUYER.com
Elliott Jets December.qxp_Layout 1 16/11/2020 11:46 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
Aircraft Brokers: Minimize Your Sales Frustrations What are some elements of a pre-owned aircraft transaction that cause frustration, and how can dealers and brokers avoid them? Dave Higdon speaks with Par Avion’s Janine Iannarelli…
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here are many elements to an aircraft transaction that have the potential to frustrate and confuse the process if they’re not firmly managed. In a worst case scenario, those frustrations could lead to a multi-million dollar deal unravelling and a hard-earned, professional reputation being unfairly tarnished. At the very least, patience could be tested as extra time and expense is needed to get the deal over the line. But what are some of the common frustrations, and how can they be managed?
Resist the Temptation for Shortcuts
According to Par Avion’s Founder and President, Janine Iannarelli, attempting to shortcut the process is one path that can lead to pain. Iannarelli recognizes the temptation exists to cut corners – especially when the transaction isn’t moving fast enough for one party or another, or there is a lack of experience in how an aircraft transaction traditionally progresses. Nevertheless, trying to short-cut the process brings its own risks. 50 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
As an example, “foregoing due diligence about who a prospective buyer is in order to rush to the contractual phase is not something we do,” Iannarelli highlights. “It’s a vital element to know something about the interested party prior to approaching a client to discuss the sale opportunity. “My clients want to know a little bit about who we are about to engage in a business transaction, particularly if it is not a readily recognizable individual or company name.” The message is clear – brokers need to be meticulous, regardless of the pressures from clients to progress the transaction more quickly.
Don’t Make Promises you Can’t Keep
At a time of pandemic, there are circumstances that are beyond a broker's control. Nevertheless, buyers and sellers of aircraft will be quick to apportion blame if promises aren’t fulfilled, whether the aircraft fails to be delivered on a certain date, the loan comes with a differing interest rate to the one discussed, or any one of several other scenarios fails to materialize. www.AVBUYER.com
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So, it’s important to beware of making promises – however well-intended. Be sure to include a proviso, with a realistic exit should something happen beyond your control that impacts your ability to deliver as planned. A friend who was shopping for his first aircraft once sought some input on the performance of his candidate aircraft from a broker. Since he planned to travel with his wife and two children, his focus was on payload and useful load. The broker assured him the aircraft could legally and safely carry both adults, both children, and 200 pounds of luggage. However, he failed to account for center-of-gravity, or the airplane's maximum gross takeoff weight. It was only when the buyer started flight training in that aircraft make/model in preparation of owning it that the error was found. The buyer, understandably angry, walked away from the deal and the dealer has had a difficult time finding a new prospect. “It’s vital for brokers to avoid misrepresenting an aircraft,” Iannarelli shares. “Again, part of that comes down to taking the time to do your homework. As a www.AVBUYER.com
broker, it’s better to come back to a client with an answer later than to inadvertently misrepresent the aircraft with a quick-fire answer now. “Spending time on vetting a specification sheet before distributing it goes a long way to relieving angst and obligation later on”
Be Careful how you Spend Your Time
Next, “If a seller wants more money than the market will bear, I tend to move on,” says Iannarelli, who asserts you’ll be wasting your time with anyone who doesn't understand the value equation. “If I'm representing the buyer and we determine the airplane is overpriced, we don't even engage with the seller,” she adds. “The most common mistake sellers make is overpricing the airplane from the start.” On the other side of the coin, ‘tire-kickers’ can also create frustration. “Every offer is a low-ball offer with the tire-kicker” Iannarelli continues. “People who do that earn the reputation as someone not to be taken seriously. It’s important to learn to spot a tire-kicker.”
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“In the end, it's not so much about how many aircraft you sell, but the cumulative value of the deals one concluded that year that determines the success or failure of a dealer or broker...”
To make a living in this field, being taken seriously is paramount. Consequently Iannarelli is careful to select the buyers and sellers she works with as those who are wholly committed to making an aircraft transaction happen. “Working with those who are genuinely invested in a transaction will create fewer frustrations for all, and prevent you from wasting your time, resources and money, as well as that of the buyer/seller,” she adds.
You Sold How Many Jets?
Finally, Iannarelli counsels fellow brokers to be realistic about their expectations. “Anywhere from six to 12 transactions a year, depending on the size and degree of difficulty of the transaction, is an excellent target for a productive salesperson,” she says. “Any more, and you need to ask yourself what is being missed – there is that much to deal with in aircraft sales 52 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
today for the hands-on broker. “In the end, it's not so much about how many aircraft you sell, but the cumulative value of the deals one concluded that year that determines the success or failure of a dealer or broker,” she concludes.
In Summary
Iannarelli is clear that these tips only scratch the surface. You’ll be sure to receive as many more suggestions for avoiding aircraft sales frustrations as the number of dealers and brokers you ask. And as brokers continue to pool their collective knowledge, the experiences of the brokerage community as well as aircraft buyers and sellers will reflect the truly professional and sophisticated marketplace that the pre-owned aircraft sales world has become. More information from www.paravionltd.com
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ABOUT JANINE IANNARELLI Janine K. Iannarelli is the founder and president of the aircraft marketing firm Par Avion Ltd, and has worked for over 30 years in the Business Aviation industry, having represented numerous corporations and private individuals worldwide in the sale and purchase of business aircraft. She is a current member of the National Business Aviation Association, is ViceChair of the European Business Aviation Association AMAC Board, serves as Chair of the AMAC Sales & Acquisition Committee, and belongs to the Houston Aviation Advisory Association and Women in Aviation International.
https://www.linkedin.com/in/ janine-iannarelli-778130/
www.AVBUYER.com
EAGLE AVIATION +1 803.822.5520 SALES@EAGLE-AVIATION.COM
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Buying&Selling 2 DEC20.qxp_Finance 17/11/2020 10:32 Page 1
BUYING & SELLING AIRCRAFT
Should you buy a New or Used Private Jet? If you’re buying a business jet does it make sense to purchase one new from the manufacturer, or shop the pre-owned marketplace? David Wyndham considers the pros and cons of each option… f you are in the market to buy an aircraft and you know the make and model that you need, the next decision may be whether to buy new or used. While new models cost more to acquire than used, there is more to the financial decision than the cost of the acquisition. There’s also more to the value of what you get with new versus used.
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Life-Cycle Cost and Net Present Value
Previously, I covered the financial analysis tools of Life-Cycle Costing (AvBuyer October Issue, p54) and Net Present Value (AvBuyer November Issue, p54). In brief, the Life-Cycle Cost takes the total costs into account, including the cost to acquire 54 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
the aircraft; the costs to operate it (fixed and variable); taxes and depreciation; and the return of money as the residual value at the time of disposition. The Net Present Value calculations then look at when costs and revenues occur, and account for the time value of money or cost of capital. Those two can provide the financial best alternatives between new and used, as well as lease, finance, and purchase decisions. Each set of circumstances needs its own calculation, including tax ramifications. Given market depreciation over the last 12 years since the 2008 recession, a used aircraft can be acquired for significantly less than its new www.AVBUYER.com
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AVBUYER.com David Wyndham is the Founder of David Wyndham + Associates, LLC. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker. https://www.linkedin.com/in/davidwyndham/
As an example, the Falcon 2000 family has enjoyed a production run of ~25 years. During that time, the cabin has remained the same size, but the new engines, winglets, avionic and safety system enhancements, and other upgrades found in the Falcon 2000LXS compared to some of the older models, have added significant capability and value. Even within models recently introduced, there can be changes from year to year installed on new aircraft.
counterpart. For example, a new business jet selling for $24m may be acquired used, out of warranty, well under age 10, for perhaps $12m. Even after taxes, Life-Cycle Costs for a business aircraft tend to favor the used acquisition by a significant margin.
What are the Advantages when Buying New? So, how do you decide whether to buy new or used? Let’s take some time to consider the advantages offered by each option, starting with what you get for the extra acquisition cost with a new aircraft.
Upgrades: Within the same make/model, manufacturers can add value by increasing capability (or otherwise improving the aircraft). For example: • Updated engines may yield improved fuel consumption, reducing operating costs and increasing range. • An increase in the maximum weight can allow for more payload, or more fuel to be carried with high payloads. • Winglets tend to add to the range and climb performance. • The advanced avionics upgrades available on new models can add significantly to the safety features (e.g. synthetic or enhanced vision systems, Autoland, faster air-to-ground datalinks, and improved reliability). www.AVBUYER.com
Warranty & Maintenance: Today’s new aircraft warranty typically runs for at least five years, and usually covers any unscheduled maintenance (including parts and labor). Based on Conklin & de Decker research, during the warranty period aircraft owners can save about 15% on labor costs and 30% on parts costs, and sometimes more. Even with a thorough pre-buy inspection, there is still the chance of unforeseen maintenance popping up on a used aircraft – and you incur that cost. Like all mechanical devices, as aircraft age their parts and accessories wear out, require overhaul, or need some sort of repair. These increased costs occur outside the warranty period. A typical eight-year old business jet can see maintenance costs about 50% higher than that of the new model, due to both warranty and the effects of aging. Availability: In addition to reduced maintenance costs, new aircraft typically spend fewer days undergoing maintenance, leaving more days available for use – which may be especially important to a small operation with one or two aircraft, or a commercial operation that needs the aircraft to generate revenue. Major inspections on aircraft occur after the aircraft has been in service for a while. The timing varies but most business jets see their first major maintenance visit somewhere between age six and ten, repeating at the same interval. If you need to maximize aircraft availability and utilization, this favors acquiring new.
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Configuration: When ordering a new aircraft, the customer gets to select the options and configuration they want. That covers the paint colors, the interior design and fabrics, and having the latest in safety equipment and avionics. Seating can vary, especially in larger cabins. For example, some Super Mid-size business jet buyers want an eight-seat configuration with a large galley whereas others prefer 10 seats with a smaller galley. And Large Jet buyers may consider sleeping configurations or conference tables, etc. Depending on your requirements, if you buy pre-owned you may not find the exact match you are searching for.
What are the Advantages When Buying Used?
So far, we’ve focused on the advantages offered by new aircraft. There are, of course, good reasons to consider pre-owned aircraft too. As mentioned, the big advantage of a used aircraft is the acquisition cost and (sometimes) availability. A new Medium Jet costs about $16m, whereas an eight-year-old used Medium Jet today goes for about 50% of that ($8m). The $8 million price difference can buy a lot of maintenance and upgrades if needed. That relative differential holds true among most current production models. If there isn't a significant difference in capability between the new and used models, why pay more for new? Or, if you don’t need the increased capability of the new aircraft, where is the value? Choice: If you are purchasing a model that has been in production for a number of years, there may be a number of used models to choose from. For example, from a run of 200 aircraft, it’s not unusual to find between 15 and 25 options available on the pre-owned market. Not all of those will be viable, but there is still choice. Moreover, a used aircraft can be purchased and 56 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
put into service in a matter of a few months, or less. New business jets have a lead time of about six months from ordering to delivery if you wish to specify all the options. And popular new designs may have 12 to 24-month lead times while you wait for a production slot. For those wanting a new model in a hurry, there may be a ‘white tail’ available. (A ‘white tail’ is a new model that has not been delivered, either because the sale fell though or the manufacturer built too many aircraft for the current market.) These aircraft are complete, but are painted white with no other stripes or trim colors, hence a white tail.
In Summary
Answering the ‘new versus used’ question is essentially a matter of trade-offs. While used aircraft sell for less, they cost more to maintain and spend more time being maintained. Older, out of production aircraft, might not have the desired configuration or avionics needed to operate in today's environment without costly upgrades, but if a used model has all the capability you need, the lower acquisition cost compared to new can provide headroom for a lot of extra maintenance. There truly is no one-size-fits-all answer to this question. In general, pre-tax Life-Cycle Costing favors buying pre-owned. After-tax, and considering the time value of money in the Net Present Value analysis, it may favor buying new. Essentially, buying an aircraft costs money either up front (in the acquisition), or later (in maintenance and refurbishment). There is added value in buying new when you account for increased performance, model enhancements, safety features, and the ability to specify all the options. But, as already stated, that’s only if you need the extra capability. Before entering the market, it is essential that you do your homework, evaluating your own needs and requirements, to become as well informed as you can be. ❙ www.AVBUYER.com
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AIRCRAFT DEVELOPMENT 1.qxp_Finance 17/11/2020 09:27 Page 1
AIRCRAFT DEVELOPMENT 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.
V THE CABIN LIGHTING IN GULFSTREAM'S G700 HELPS ADJUST PASSENGERS’ CIRCADIAN RHYTHMS AND MINIMIZE FATIGUE.
New Aircraft Technology: What's Next for the OEMs? The latest business aircraft now entering service are introducing new
cabin and flightdeck technologies to enhance passenger comfort and
ease pilot workload, says Chris Kjelgaard. What are these technologies and what further advances in the future do they presage?
rom the Beechcraft King Air 360 to the Bombardier Global 7500 and Gulfstream G700, new business aircraft of all sizes feature sophisticated new technologies designed to enhance passenger comfort and productivity, while also reducing pilot workload and enhancing situational awareness. Manufacturers are employing various technologies in their latest cabins and cockpits but, interestingly, in several cases different OEMs are offering very similar new design and functionality concepts.
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Advanced Cabin Lighting
For instance, both Bombardier and Gulfstream are offering circadian rhythm-based cabin lighting systems in their top-of-the-range Global 7500 and the G700, respectively. According to Bombardier, the Soleil lighting system in the Global 7500 is the aviation industry’s first circadian rhythm-based cabin lighting technology to be fully integrated with the aircraft’s Cabin Management System (CMS). Soleil includes a dynamic daylight simulation feature, which Bombardier claims is revolutionary in helping to combat jetlag. It uses specific combinations of red and blue light wavelengths scientifically shown to help stimulate or suppress the production of melatonin, which assists in regulating 58 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
the sleep-wake cycle, and can help contribute to synchronizing passengers’ circadian rhythms to the time at their destination. Soleil can also be customized to a passenger’s preference for either extended sleep or productivity, via the system’s circadian adjustment setting. And the lighting system can be programmed to schedule the optimal times for meal services, allowing the cabin crew to prepare and plan meals more efficiently. The Soleil lighting system is fully integrated into the Global 7500’s nice Touch CMS, which features the unique Bombardier Touch dial. According to Bombardier, this dial marks Business Aviation's first application of an OLED display. Always within reach from the passenger’s seat, it rises from the side ledge with the touch of a finger to provide rapid control of entertainment and cabin settings. The all-new lighting system in the Gulfstream G700, meanwhile, simulates sunrise and sunset, to help adjust passenger’s circadian rhythms and minimize fatigue. The light levels the system offers can go from 0.1% to 100% through 68,000 light steps (compared with the 300-400 of other business jets), says Colin Miller, Senior Vice President Innovation, Engineering and Flight for Gulfstream Aerospace. “Our system mixes warm and cool white light with amber LED to better simulate natural light and www.AVBUYER.com
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incorporates more than 20,000 high-definition LEDs in the main cabin alone,” he adds. “As a result, passengers can ease into their new time zone, greatly reducing the physical impact of traveling around the world.”
Flightdeck Functionality
Bombardier, Dassault and Gulfstream have all adopted a very similar functionality and technology upgrade in the flightdecks of their Global 7500, Falcon 6X and G700, respectively. All three are fitted with dual head-up displays (HUDs) for the pilot and co-pilot, and in each case the dual HUDs can display the combined output of the Enhanced Vision System and the Synthetic Vision System each flightdeck offers.
Full-range Deployment Strategies
Perhaps unsurprisingly, larger and more expensive aircraft such as Dassault’s Falcon 6X and the Gulfstream’s G700 are making initial use of some of these eye-opening and technologically advanced innovations, but OEMs appear to be planning subsequently to adopt them throughout much – or all – of their production lines. Gulfstream’s introduction of new plasma ionization technology to ensure that cabins are properly sanitized—both in-flight and on the ground—provides www.AVBUYER.com
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a good example. Gulfstream’s new system purifies the cabin air and surfaces and is now standard on all new US-registered G650s and G650ERs. The system uses an eco-friendly ionization process to eliminate pathogens and allergens (bacteria, viruses and mold spores) and is fully integrated into the aircraft’s environmental control system. The ionization system also operates while the aircraft is using the APU, ensuring pure air and clean surfaces while the aircraft is being prepared by caterers, crew and technicians. G500, G600 and international certifications of this technology are pending, and the system is now available as a retrofit on the G650, G650ER, G550, G450 and GV models.
Gulfstream’s Symmetry Flight Deck
Another example can be seen in the company’s Symmetry Flight Deck. According to Miller, the Symmetry Flight Deck already features in the in-service G500 and G600 and will also be employed in the G700. Miller says the Symmetry Flight Deck marks the civil aviation industry’s first use of electronically-linked active control sidesticks (ACS), as well as the most extensive use of touchscreen technology to date, the next generation of Gulfstream’s EFVS, and a robust and highly redundant data concentration network (DCN). Because the two ACSs (supplied by BAE Systems)
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GULFSTREAM G700 SYMMETRY FLIGHT DECK
Advances by Textron Aviation
are electronically linked, pilots can instinctively feel each other’s control inputs or the inputs from the autopilot, according to Miller. This tactile feedback provides non-verbal communication between the pilots and produces an unprecedented awareness of flightcontrol inputs. The touchscreens replace 70% of the buttons and switches on a traditional aircraft’s instrument and flight control panels and they incorporate single-step control of multiple checklist items, decreasing the possibility of errors associated with touching multiple switches and buttons. Meanwhile, the DCN constantly monitors all systems on the aircraft, providing pilots with instant awareness of potential problems, simultaneously and automatically switching to redundant systems when necessary. This improves reliability and reduces the possibility of a single failure affecting aircraft operations, according to Miller. The Symmetry Flight Deck on the G700 also includes Gulfstream’s patented Predictive Landing Performance System, which provides in-flight visual and aural notifications to the pilots. With the PLPS, pilots have ample notice either to adjust their approach or execute a go-around to prevent a landing overrun, a tremendous safety advantage.
Not to be outdone, Textron Aviation has installed ThrustSense Autothrottles, made by IS&S, in the Beechcraft King Air 360, as well as in the aftermarket for King Air 200- and 300-series aircraft. According to Christi Tannahill, Senior Vice President, Customer Experience for Textron Aviation, this enhancement reduces pilot workload and supports them in their continuous vigilance to prevent overspeed or under-speed, over-temp and over-torque conditions. The Autothrottles incorporate the patented LifeGuard system, which guarantees critical protection of VMC (a minimum one-engine-out airspeed) as well as full authority digital engine control protection, thus eliminating two of the greatest ‘low-and-slow’ challenges associated with twin-engine operations. The King Air ThrustSense Autothrottle enables automatic control of engine power settings by computing and adjusting to the maximum safe power levels, with precision not practicably achievable by the flight crew.
Passenger Experience is Critical
Textron Aviation sees passenger-experience factors as being critical in the continuing technological evolution of business aircraft cabins. “In-flight entertainment and personal electronics evolve at an incredibly rapid pace,” Tannahill notes. “Consequently, we are constantly designing and evaluating what is ‘next’. “From the latest audio system to the next generation of CMS, the ways passengers experience the cabin impacts all those categories and are constantly being improved.” As regards the technological evolution of flightdecks, “one of the near-term items we are working on is the incorporation of Controller Pilot Data Link Communications (CPDLC) and Future Air Navigation Systems (FANS),” Tannahill says. “We continually monitor worldwide regulatory mandates to make sure our customers are well-equipped to fly their missions.”
“The Autothrottles incorporate the patented LifeGuard system, which guarantees critical protection of VMC (a minimum one-engineout airspeed) as well as full authority digital engine control protection, thus eliminating two of the greatest ‘low-and-slow’ challenges associated with twin-engine operations.” BEECHCRAFT KING AIR 360 COCKPIT
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V EYE MOTION-SENSING TECHNOLOGY COULD BE INCORPORATED INTO BIZJET CABINS OF THE FUTURE
Technologies for the Future
As the future unfolds, Textron Aviation reckons one particular new technology will be relevant to business aircraft of all sizes. “One thing we see as applicable to all aircraft is the ability to use flight data monitoring,” says Tannahill. “As operators are driven to adopt safety management systems, flight data collection is an essential part of flight crew reporting and performance. “We've seen the positive impact that Flight Operations Quality Assurance has had on commercial aviation, and with new developments in avionics and data analytics we have the opportunity to use this technology in Business Aviation,” she adds. “Predictive maintenance, using the LinxUs diagnostics platform, is another area we are exploring as we work to optimize operational availability and reduce unplanned downtimes.” Additionally, over the next five to ten years, “We continue to see connectivity in both the cockpit and cabin as a popular feature for our customers,” Tannahill adds. “We are anticipating advancements in speed and cost as well as global coverage via satellite and cellular solutions. “This connectivity will serve as a basis to integrate, optimize, automate and enhance productivity solutions. Additionally, flightdeck automation is a
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rapidly changing technology that will certainly have an impact on Business Aviation.” Having established a decades-long reputation for technological leadership, Gulfstream has a beguiling – almost magical – view of what business-aircraft passenger cabins may offer in the foreseeable future. “We expect to see Gulfstream cabins becoming even more intuitive and really changing the relationship and interaction passengers have with the cabin—the cabin will know and recognize each passenger,” Miller projects. “Cabin systems may be able to detect eye movement and anticipate needs to reveal a hidden monitor on the bulkhead, for instance,” he says. “If a passenger looks at a certain light, the system will automatically make it brighter or dimmer—it will know what each passenger wants, and will convey information by giving the passenger the ability to feel light and sound through feedback in material surfaces. “The cabin could also be truly wireless, with hidden technology controlled by sensory perception, eliminating the need for switches and controls,” he concludes. Eyebrow-raising thoughts, indeed—but given Business Aviation’s impressive track record of cabin and flightdeck innovation, it seems more of a matter of when these advances will appear, rather than if… T
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AIRCRAFT DEVELOPMENT 2.qxp_Finance 17/11/2020 09:38 Page 1
AIRCRAFT DEVELOPMENT 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
New Business Aircraft Development Update ACJ TWOTWENTY
What is the latest news from the leading Business Aviation OEMs regarding their in-development aircraft? Dave Higdon provides status updates from across the industry…
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he past couple of years have seen several new and exciting business jets and turboprops achieve certification and begin first customer deliveries. Notable market entrants have included Bombardier’s Global 7500, Cessna’s Citation Longitude, Embraer’s Praetor 500 and 600, Gulfstream’s G500 and G600, and Pilatus’s PC-24, among others. New market entrants help stimulate new aircraft orders, which traditionally has a trickle-down effect as owners taking delivery of their new jets relinquish their existing (often newer) aircraft onto the pre-owned market. Having seen so many new market entrants receive certification lately, what remains in the pipeline? The following overview is designed to provide a handy snapshot guide… 64 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
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Airbus Corporate Jets: ACJ TwoTwenty
Airbus announced a new contender for the Bizliner market on October 6, 2020: the new ACJ TwoTwenty. The announcement seemingly came from nowhere. The base airframe made ripples in early 2019 when Airbus launched of the A220 single-aisle airliner. While smaller than dominant single-aisle airliners like the Airbus A319, the A220 boasts enough space and range to service the majority of domestic routes the A319 (and Boeing 737) serve in the United States. Now Airbus Corporate Jets has adapted the A220 into the ACJ TwoTwenty business jet, offering a range of 5,650nm. Although it won’t match the range and speed of some of the ultra-long-range business jets available, ACJ expects the TwoTwenty to excel in its fuel efficiency; it will boast a fuel-consumption rate 25% lower than “previous generation” aircraft. Better still (particularly for the European market) is that the TwoTwenty offers a significant 50% reduction in noise footprint. More information: www.acj.airbus.com www.AVBUYER.com
DASSAULT FALCON 6X
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Dassault: Falcon 6X
Dassault Aviation’s new Falcon 6X was recently named the winner of the prestigious International Yacht & Aviation Award for interior design – another recognition of the unique level of comfort and spaciousness offered by Dassault’s new ‘ultrawidebody’ twin jet. Already the Falcon 6X had set a new standard in cabin comfort with the largest cabin cross section of any purpose-built business jet. The cabin of the Falcon 6X measures 6’6” high and 8’6” wide, with 40’4” offered in cabin length. Depending on the interior configuration, the Falcon 6X can fly 12 to 16 passengers in three separate areas. With a range of 5,500nm, the Falcon 6X can connect Paris and Tokyo, or Los Angeles and Moscow. Development of the Falcon 6X, including its Pratt & Whitney PW812D powerplants, is right on schedule. First flight is set for 2021, and certification and initial deliveries are expected in 2022. More information: www.falcon6x.com
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Gulfstream G700
Designed to fly 7,500nm at Mach 0.85, or 6,400nm at Mach 0.90 – Gulfstream’s G700 offers a long cabin which can accommodate up to 19 passengers across four living areas. Once certified, the G700 is anticipated to become the longest-range Ultra-Long-Range business jet on the market. Rolls-Royce’s Pearl 700 engines provide the thrust. Gulfstream anticipates starting customer deliveries in 2022, and the OEM is well on the way to meeting that target, with several prototypes now undergoing flight tests. The G700 will share its fly-by-wire cockpit with the G500/G600, including active control sidesticks and Honeywell Primus Epic flight deck with synthetic and enhanced vision systems, for a common type rating. More information: www.gulfstream.com
SyberJet SJ30i
The SJ30 model has been around for decades under a
variety of names – starting with Ed Swearingen's SJ30 of the early 1980s. Through various holdings, ownership changes and pauses, the redesigned Sino Swearingen SJ30-2 eventually won type certification and started production – but that also hit a wall. SyberJet acquired the SJ30-2 in 2011, started work to update the model, and in early 2019 began flying the evolved version, known as the SJ30i. That began a planned 18-month FAA certification test program with the aim of achieving type certification in late 2020. A 2,500nm range connects New York with Los Angeles non-stop (an unmatched feat in comparable single-pilot Light Jets), and is made possible by a 25% improvement in fuel efficiency. The SJ30i also offers the lowest cabin altitude of any business jet, holding almost sea-level pressure (12 psi) up to 41,000 feet, which is far better than even the newest airliners. And the SJ30i holds its own in terms of speed, with a long-range cruise speed of 436kts true, and a high-speed of 480kts. More information: www.syberjet.com
SYBERJET SJ30i
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Textron Aviation: Beechcraft King Air 360/360ER
Admittedly, the Beechcraft King Air 360 and 360ER have already earned their Type Certification, but having only been announced earlier in 2020, we include them regardless, by way of introduction. The King Air 360 and its longer-range companion, the 360ER, represent the next generation of the venerable King Air family of turboprops, building on the King Air 350's legacy with the latest technological advancements in the cockpit, a redesigned cabin and enhancements to passenger comfort. Among the key improvements in the King Air 360 cockpit are the addition of the new ThrustSense Autothrottle from IS&S which automatically manages engine power, and a new automatic digital pressurization controller, both helping reduce pilot workload. The standard interior provides seating for nine
passengers and delivers a cabin altitude of 5,960ft at a typical cruising altitude of 27,000ft. That cabin altitude is 10% lower compared to the King Air 350i, resulting in greater comfort for passengers. And a cabin redesign provides a stunning new look. Other amenities that come standard on the entire King Air line-up include pull-out work tables, standard power outlets, USB charging stations, and a private aft lavatory.
Textron Aviation: Cessna Citation Hemisphere
It is hoped that we will soon hear about the resumption of work to develop the Citation Hemisphere, which would become Cessna's largest and longest-legged jet if and when it crosses the finish line and enters the market. Issues with Safranâ&#x20AC;&#x2122;s Silvercrest engines prompted Cessna to suspend development, but if the program is resumed (with or without Safran powerplants) the CESSNA CITATION HEMISPHERE
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Hemisphere would offer a 6’2” stand-up cabin, and a 4,500nm range. Complete with Honeywell Primus Epic flight deck, the projected price is likely to be in the region of $35m. Should the program resume, don't be surprised if Cessna has incorporated some changes for the Hemisphere during this hiatus.
Textron Aviation: Cessna Denali
Put together a clean-sheet airframe design with an equally new powerplant and it's not unusual that some bumps occur along the way. Such is the case for Cessna's new high-speed turboprop – the Denali – and its new GE Catalyst powerplant. As of early October the first Catalyst engine had yet to be delivered to Cessna for preliminary work to begin ground and flight tests but, in the interim, certification testing of the engine continues. When certified, the Denali is projected to have a
cruise speed of 285kts, and a range of 1,600nm (carrying four passengers). Garmin's G3000 flight deck will fill out the panel.
Textron Aviation: Cessna SkyCourier
The Cessna SkyCourier is yet another clean-sheet design from Textron Aviation and will be offered in various configurations including cargo, passenger, or a combination of both. The first new turboprop twin in decades, as a passenger aircraft the SkyCourier will accommodate as many as 19 passengers. Power for the SkyCourier comes from a pair of Pratt & Whitney PT6A-65SC engines, while the avionics is Garmin's G1000 NXi integrated package. First flight occurred in May 2020, and, as of this writing, the flight-test fleet had grown to three. More information: www.txtav.com CESSNA SKYCOURIER
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Business Aircraft Title: Avoid Nasty Surprises Business jet owners and operators must avoid numerous potential pitfalls with aircraft titles, which can impact both their ownership of the asset and pose wider legal and financial problems. Gerrard Cowan discusses those issues with the industry’s experts…
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Gerrard Cowan is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan
hat are some of the most common title problems for an aircraft owner to be aware of, and how can they be avoided? There ia a range of companies in the area of aircraft title who perform searches of Federal Aviation Authority (FAA) records, and other data, to ensure that aircraft are free from unexpected nasty surprises. The services of these companies can be essential for a range of aspects of aircraft ownership and financial transactions, including escrow services. Common problems include ‘liens’, where another party – such as a bank – may claim a legal right over the aircraft to repay a debt. Even errors in documents as minor as a missing signature could cause significant difficulties with the chain of title. And depending on the age of the aircraft, these problems can endure for decades. However, specialist companies are able to perform title clearance services to help resolve or avoid any issues, protecting both the operator and their lenders. Aircraft titles are complex, but there is a number of common problems – and solutions – suggested by experts in the area.
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Research the Seller
an authority in a different country, this can be a very challenging process. The use of a title search specialist – often with specialized software for the task – can considerably lighten the burden, according to Debbie MercerErwin, owner and president of Wright Brothers Aircraft Title. Mercer-Erwin says that her company often encounters owners who did not conduct title reports when they first acquired an aircraft, only to discover an old lien or other problems. What’s more, the entity that filed the original lien may now no longer exist, which could present the need for legal action. “We stress to everybody that it's very important that you do get a title search before you buy an aircraft and make sure that the aircraft has free and clear title, to be able to pass it on when you do sell it,” she says. Adam Meredith, president of AOPA Finance, stresses the importance of adopting an international perspective. “Don’t assume that just because an aircraft has clear title with the FAA that everything is OK,” he warns.
Consider Title Insurance
Meredith also underlines the importance of title insurance, pointing to AIC Title Service General Counsel Bruce Marshall’s definition of the concept as “a contract between the insurance company and the insured that protects the title of the insured on a specific aircraft from risk and challenges to the insured’s title arising from covered events.” Meredith says this could protect operators from events related to liens (for instance). “A title search is not as good as getting title insurance,” he adds. A number of insurers offer specialized services in aircraft title insurance, including UK-based Reich Insurance, which focuses on the European aircraft sales market. According to Reich, such insurance can cover owners against a multitude of issues, including:
All sorts of difficulties can arise from aircraft title problems, says Clay Healey, owner of AIC Title Service, ranging from differences in approaches internationally, to liens. It may be possible to take legal action against another party if an issue arises, he said, but “it could cost you a fortune to do it and you might only have a 10% chance of getting a dime out of it”. Additionally, the aircraft may have been acquired from a Single Purpose Entity created specifically to sell the aircraft, “and that entity is gone the moment they sell the airplane – so who are you going to sue?” Healey says it is vital that operators ensure they have thoroughly researched a seller before buying an aircraft, using a specialist if possible. This “will help determine if there’s any debts or other problems that are going to be coming your way”.
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Lighten the Burden
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While operators can in theory independently request the necessary documents from the FAA or www.AVBUYER.com
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Fraud and forgery; Unknown debts secured against the aircraft, its engines or propellers; Third parties who claim they have a better ownership right; Outstanding rates, taxes, charges and other levies; and Invalid registration.
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Speaking to AvBuyer, David Cramp, business development head for aircraft title insurance at Reich, says that the market is in its infancy in the UK. Nevertheless, his company is seeing increased enquiries “where various types of buyer are seeking that additional comfort and security of insurance during the buying and selling of airplanes or helicopters.” The major pitfall in the market as a whole is that aircraft do not have a certificate of title, but still change hands on a regular basis – every four years, on average, according to Cramp. This can make it difficult to tell whether the aircraft is free of issues of potential concern. Cramp concludes that his company is seeing a
greater number of enquiries for aircraft title insurance. While this may be because people are becoming more risk-averse (for the reasons stated above), it is not yet clear whether the effects of the Covid-19 pandemic are also making buyers more wary.
In Summary
For anybody buying and operating a business aircraft today, though the field of aircraft title can be a complex, difficult area, there is a wealth of experience and assistance available to safeguard you against the unseen pitfalls. Using those services will allow you to focus on reaping, and enjoying the benefits of aircraft ownership. T
“The major pitfall in the market as a whole is that aircraft do not have a certificate of title, but still change hands on a regular basis – every four years, on average...”
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Ownership 2 PROOF 1.qxp_Finance 17/11/2020 17:12 Page 1
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How to Measure BizAv’s Value to Shareholders Beyond the basics, how
do you really measure the value of the company’s business aircraft to shareholders and
highlight its profitability?
René Armas Maes shares some thoughts…
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uring the Covid-19 pandemic, the scheduled airlines have been trying to keep afloat, stimulating customer demand and optimizing passenger loads as flight cancellations have risen. Some of the global airlines have been adjusting their operations to cover only half of their route networks with one-third of their fleets. This airline survival strategy focuses on operating direct services to only their larger (Tier 1) markets, refocusing on hub flying and avoiding non-stop flights to lower density Tier 2 and Tier 3 markets as they try to rebuild travel confidence and stimulate passenger demand once more. The current situation highlights all the more clearly why the world’s most recognized firms are significant users of Business Aviation. Even without the pandemic, there are a number of factors (including check-in times, and scheduled airline service delays and cancellations) that negatively impact an executive’s and/or
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René Armas Maes is vice president, Commercial at Jet Link International LLC and an international consultant with a broad experience in business aircraft sales. He has developed multiple analyses and studies for a number of US Fortune 500 companies and Venture Capital firms, and participated as keynote speaker at a number of business aircraft conferences. https://www.linkedin.com/in/rené-armas-maes-4935b842/
managerial team’s productivity, and justify their use of business aircraft. The US airline passenger load factor averaged 37% percent during Q2 2020. Even as airlines reduced their capacity to cope with diminished demand, passenger load factors fell across all regions (see Figure 2, overleaf). Therefore, it is expected that companies and their teams’ labor productivity will be negatively impacted while flying aboard scheduled airline services as they are likely to continue restructuring and cutting regional routes and frequencies as the second (and maybe third) wave of COVID arrives.
Productivity Enhancement of Business Aviation
While the negative impact of scheduled airline travel on corporate productivity correlates with diminished revenue growth, profitability, earnings and other value-creation drivers, Business Aviation is itself a productivity enhancement tool. The use of business aircraft provides flexible scheduling, and helps entities optimize revenue growth opportunities, as well as facilitate more valued face-to-face customer and team interactions. Other benefits include enabling the increased agility and mobility of executive and managerial teams, who may even be able to visit multiple destinations in one day. Further benefits to the use of Business Aviation includes: • Faster door-to-door travel • Increased productivity in-flight and on the ground
• • •
Increased revenue generation opportunity (ability to respond faster to market opportunities) Improved customer relationship management (better customer retention) Better strategic deployment (exploring new markets, road shows, etc.).
To the surprise of many, it is not just large corporations that use, and benefit from, Business Aviation. Figure 3, overleaf, shows that companies with 500 employees or less represent the majority of the business aircraft users. Small and mid-size companies combined (<1,000 employees) represent 70% of users.
How to Measure the Value Creation of Business Aviation
Nevertheless, when discussing how to measure enterprise value creation in the context of a business aircraft operation, I have observed that – beyond the typical benefits of Business Aviation – very few prospective owners understand how to measure value creation. In these ‘liquidity preservation and cost reducing’ times, it is paramount for any organization that operates, or plans to operate, a business aircraft to understand and communicate how this asset adds value to their organization. For many years, the leading aircraft OEMs and the Associations within BizAv have covered the correlation between shareholder value creation and the use of Business Aviation. Most operators tend to
FIGURE 1: Valued Brands as Business Aviation Users
Source: NEXA report
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AVBUYER MAGAZINE Vol 24 Issue 12 2020
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Ownership 2 PROOF 1.qxp_Finance 18/11/2020 12:56 Page 3
OWNERSHIP
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O
FIGURE 2: US Airline Passenger Load, by Region (Q2 2020)
Source: US DOT T2 traffic
conduct an assessment, based on the quantifiable benefits and costs, as published in ‘How to do a Corporate Travel Profile Analysis’ (AvBuyer, November issue, p58). Overall, under such an assessment, if the quantifiable benefits are greater than the quantifiable costs, business aircraft utilization can be said to enhance and create shareholder value. However, if you really want to understand the correlation between shareholder value creation and Business Aviation, the next step is to identify the drivers of growth and efficiency that are used to measure how well a company is growing through the way it utilizes its assets and resources. To illustrate, let’s take the example of revenue and market share growth. Corporations should evaluate new product and service development activities as well as what strategies are being used to optimize sales (per customer), as these can help a corporation grow faster than its competitors, capturing a larger
slice of the market. Next, consider how quickly those products and services are accelerated to the market, helping produce important economic benefits to the corporation. Then, connect the dots: Understand the extent to which the business has grown faster owing to the use of business aircraft, especially in terms of quicker market expansion, ability to tap new sales territories, ability to attend to – and resolve – key customer issues without delay (helping build customer relationships to the next trust level—think repeat business and wordof-mouth promotion—while maximizing sales). In addition: • •
Focus on profit margin and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) growth; Evaluate the business profit margin growth associated with the business aircraft;
FIGURE 3: Total Number of Employees in Companies Using Business Aviation
Source: The Real World of Business Aviation
78 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
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•
•
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Think strategically about the relationship between top-line revenues and costs. If the top line is not growing (due to fierce competition, price discount strategy, or product and portfolio line stagnation, for example), then cost-control becomes even more important as the corporation tries to optimize EBITDA and its profit margin); Measure how lean the management structure is as a result of using a business jet and how that reflects in quantifiable employee time-savings.
Asset Efficiency
In addition, you should consider asset efficiency. While employee productivity is important, so is how effectively a company utilizes its assets and capital investment to both grow the business and bring new technologies to the market to simplify processes. Meanwhile, it also needs to stay ahead of the competition and implement leaner management structures, while reducing cost. Evaluate the impact of customer and employee satisfaction, as both will impact shareholder value creation. Which strategies can enhance their satisfaction? A low level of employee turnover, high employee morale, high customer retention levels, and revenue growth (per customer) are core to shareholder value creation. Business aircraft can improve employee and customer quality of life, translating into higher productivity and value creation. A business aircraft can improve employee motivation, decreasing
Read About
80 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
travel-related stress and aversion to travel while enhancing productivity. Other drivers, indicators and ratios should also be evaluated, including price-earnings (P/E), earnings per share, return on equity, asset turnover, and return on assets, measuring how efficiently a company is using its assets to generate profit.
How Does the Value Creation Compare?
Comparing your company value creation with that of your competitors is the next step. Identify whether your company is performing better or worse than the industry average. How does the return on assets compare? This will help determine whether you, or your competitors, are making the most efficient use of assets. It is best to choose between three and five listed competitors (for example, using a stock market index such as the S&P 500) to measure your performance over time, across a number of economic cycles, using the same drivers identified and analyzed previously. The evidence repeatedly highlights that Business Aviation contributes meaningfully to a company’s enterprise value and is a powerful tool used by the best-managed companies, whether small, medium or large. As Warren Buffett, CEO, Berkshire Hathaway, Inc. once said, “Berkshire has been better off by having me in a corporate jet available to go and do deals.” T
AIRCRAFT OWNERSHIP
at AVBUYER.com
www.AVBUYER.com
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AirCompAnalysis DEC20.qxp_ACAn 17/11/2020 14:51 Page 1
TURBOPROP COMPARISON
PILATUS PC-12 NG
CESSNA GRAND CARAVAN EX
Turboprop Comparison:
Cessna Grand Caravan EX vs Pilatus PC-12 NG How do Cessna’s Grand Caravan EX and Pilatus’ PC-12 NG compare in the single-engine turboprop market? What are the advantages offered by each model, and to whom would they appeal? Mike Chase analyses the performance and productivity parameters… ver the following paragraphs we’ll consider key productivity parameters for the Cessna Grand Caravan EX and the Pilatus PC-12 NG (including payload, range, speed, and cabin size) to establish which aircraft provides the better value in the single-engine turboprop market. How might a desire for higher speed and longer range influence an aircraft buying decision, particularly when that comes at a higher price and operating cost? It’s hoped that the following turboprop comparison will help clarify.
O
Cessna Grand Caravan EX
Three models of the Caravan have been produced since 1985, including the 208 (484 in operation), 208B Super Cargo Master (1,562
82 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
in operation/production ended in 2013), and the Grand Caravan EX (525 in operation). Combined, a total 2,571 Caravans were in operation at the time of writing. Cessna's Grand Caravan EX was certified in late 2012 and is still produced in 2020. It was engineered for challenging, rugged missions with high payloads, and is able to access short, rough runways. It has the agility of a much smaller aircraft, and can take off in under 1,399ft. The Grand Caravan EX can reach cruise speeds of 156kts and travel distances of up to 807nm. Of the 525 Grand Caravan EX turboprops in operation, 523 are wholly-owned, with the other two being under shared ownership. Since production started, thirteen units have been retired.
Pilatus PC-12 NG
Four models of the PC-12 have been produced since 1995. They are the PC-12/45 (553 in operation/production ended in 2005); the PC-12/47 (196 in operation/production ended in 2008); the PC-12 NG (921 in operation) and the PC-12 NGX (entered service in 2020, 28 in operation). The Pilatus PC-12 model is a highpowered single-engine turboprop, and is equipped with both a passenger door and a cargo door. It is available in several configurations, including six-passenger executive, nine-passenger commuter, cargo, or a passenger/cargo combination. Currently, there are 841 wholly owned PC-12 NGs in operation worldwide, with an www.AVBUYER.com
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AirCompAnalysis DEC20.qxp_ACAn 17/11/2020 14:52 Page 2
www.AVBUYER.com HOW MANY
EXECUTIVE
SEATS
CESSNA
9
Grand Caravan EX
(Manufactured between 2013 - Present)
$2.25 Million (2020 Model)
vs.
PILATUS
7
PC-12 NG
(Manufactured between 2008-Present)
$5.02 Million (2020 Model)
WHICH OF these TURBOPROPS WILL COME OUT ON TOP HOW MUCH
Cessna Grand Caravan EX
RUNWAY DO I NEED?
2,742
Pilatus PC-12 NG
2,450
(Balanced field length, ft) 500
HOW FAR
CAN WE GO?
Full Fuel w/Avail Payload (nm) Grand Caravan EX 1
PC-12 NG
807 1,548
1000
2000
1500
CAN WE TAKE?
PC-12 NG
(Lbs)
2,642
Grand Caravan EX
2,236
HOW MANY
HOW MANY
OPERATION?
EACH MONTH?
UNITS IN 525 921
NEW/USED SOLD
11 (5.4%)
6 (6.5%)
12-Month Average Figure (% = Global Fleet For Sale)
Sources used: OEMs, Conklin & de Decker, JETNET, Aircraft Bluebook, Chase & Associates
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3000
4
3500
WHAT’S THE
HOW MUCH
PAYLOAD
2500
LONG RANGE CRUISING SPEED? Grand Caravan EX
(Knots)
156 488 225
PC-12 NG
375
WHAT’S THE VARIABLE COST
PER HOUR? Grand Caravan EX
PC-12 NG
$579
$774
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AirCompAnalysis DEC20.qxp_ACAn 17/11/2020 14:52 Page 3
TURBOPROP COMPARISON
AVBUYER.com
Table A - Payload & Range Comparison
additional 31 in shared ownership and 49 in fractional ownership. Nine have been retired.
Payload & Range Comparison
Cessna Grand Caravan EX Pilatus PC-12 NG
8,807
10,450
2,246
2,704
Max Fuel (lb)
MTOW (lb)
T
Source: OEMs, B&CA
2,642
2,236
Max Payload (lb)
1,086
807
988
Avail Payload w/Max Fuel (lb)
1,312 1,334 1,334
Chart A - Cabin Comparison
PC-12 NG
4.5 ft
4.83 ft
Grand Caravan EX
1,548
Max Fuel w/Avail Payload IFR Range (nm)
When comparing business turboprops, an important area for potential operators to focus on is payload capability, especially the ‘Available Payload with Maximum Fuel’. Table A (left) shows the Grand Caravan EX ‘Available Payload with Maximum Fuel’ to be 1,086lbs, which is ~10% greater than the 988lbs offered by the Pilatus PC-12 NG.
Cabin Comparison
Chart A (left) shows the cabin width of the Grand Caravan EX is 5.3ft., which is slightly wider than the PC-12 NG (5.0ft). However, the height of the Grand Caravan (4.5ft) is less than the PC-12 NG (4.83ft). The PC-12 NG also has a slightly longer cabin than the Grand Caravan EX (16.92ft vs 16.75ft), and overall the PC-12 NG provides four cubic feet more of overall cabin volume than the Grand Caravan EX (356cu.ft. versus 352 cu.ft.). In terms of luggage provision, the PC-12 NG provides more internal volume (40cu.ft.) than the Grand Caravan (32 cu ft). Neither offers external cabin volume, although cargo pods are available for the Grand Caravan EX as an option.
Range Comparison 5.3 ft
5.0 ft
Chart B - Range Comparison Grand Caravan EX PC-12 NG
807 (nm) Full 8 Fuel w/avail PL 1,548 (nm) 1 Full Fuel w/avail PL
Using Wichita, Kansas as the start point, Chart B (left) shows the Grand Caravan EX (with 807nm) offers just over half of the range coverage of the PC-12 NG (1,548nm), with each aircraft carrying full fuel and available payload. Note: For business turboprops, ‘Full Fuel with available payload’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a 100nm alternate. This range does not include winds aloft or any other weather-related obstacles.
Powerplant Details
Both aircraft in this field have a single Pratt & Whitney Canada powerplant. The Grand Caravan EX has a PT6A-140 engine with 867shp (which burns 66 gallons of fuel/hour (GPH)), whereas the PC-12 NG has a single PT6A-67P engine providing 1,200shp, and burning 60GPH fuel. The PC-12 NG is certified to operate at a higher certified flight ceiling (30,000ft) than the Grand Caravan EX (25,000ft).
Variable Cost Comparison
Source: Chase & Associates
84 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
The ‘Variable Cost’, illustrated in Chart C (overleaf), is defined as the estimated cost of fuel expense, maintenance labor expense, scheduled parts expense, and miscellaneous
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Two U.S. Owners Since New, on RRCC & MSP, 13 Pax and Shower, HUD, EVS, SVS
U.S. Registered, Engines on P&WC PurePower Premium, APU on MSP Gold, Recent Price Reduction
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AirCompAnalysis DEC20.qxp_ACAn 18/11/2020 11:01 Page 4
TURBOPROP COMPARISON
AVBUYER.com
Chart C – Variable Cost Comparison
Grand Caravan EX
trip expense (hangar, crew and catering). These costs DO NOT represent a direct source into every flight department and their trip support expenses. For comparative purposes, the costs presented are the relative differences, not the actual differences, since these may vary from one flight department to another. The Grand Caravan EX ($579) shows the lower variable cost per hour compared to the Pilatus PC-12 NG ($774), a difference of 25%.
$579
PC-12 NG
$774 $200
$0
$400
$600
Aircraft Comparison Table
$800
Table B (left) contains the used prices (per Aircraft Bluebook) for the Grand Caravan EX, which range between $1.70m and $2.25m. The PC-12 NG’s price ranges between $2.6m and $5.02m. The long-range cruise speed and range numbers listed are from B&CA, while the number of aircraft in-operation, the percentage for sale, and average sold are from JETNET. At the time of writing, the Grand Caravan EX had 6.5% of its fleet ‘for sale’ on the used aircraft market. By comparison, the PC-12 NG had 5.4% ‘for sale’. The average number of used transactions (units sold) per month over the previous 12 months was six for the Grand Caravan EX, and eleven for the PC-12 NG.
US $ per hour
Table B - Market Comparison Grand Caravan EX PC-12 NG
156
225
Long Range Cruise Speed (Kts)
356
352
807
Cabin Volume Cu Ft
1,548
Full Fuel w/Avail P/L IFR Range (nm)
$2.25/ $5.02/ $1.70 $2.60
525
New/Used Price Ranges $USm
921
6.5% 5.4%
6
11
Average Sold per Month*
% For Sale
In Operation
*Average Full Sale Transactions in the past 12 months, as of Oct. 2020; Source: JETNET Data courtesy of BC&A; JETNET; Aircraft Bluebook
Chart D - Maximum Scheduled Maintenance Equity Grand Caravan EX
Assumed Annual Utilization: 200 Flight Hours Average Maximum Maintenance Equity: $966,202
Pct of Avg Max Mtnc Equity vs. Aircraft Age 100%
Pct of Max Mtnc Equity
T
90%
80%
Maximum Scheduled Maintenance Equity
Chart D (left) and Chart E (overleaf) depict (and project) the Maximum Maintenance Equity the Cessna Grand Caravan EX and Pilatus PC-12 NG (respectively) have available, based on their age. •
•
The Maximum Maintenance Equity figure is achieved the day an aircraft comes off the production line (since it has not accumulated any utilization toward maintenance events). The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes: - Average annual utilization of 200 flight hours; and - All maintenance is completed when due.
Depreciation Schedule
70%
60%
50%
40%
1
2
3
4
5
6
Source: Asset Insight (www.assetinsight.com)
86 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
7
8
9
10
Aircraft Age (Years)
11
12
13
14
15
Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can use accelerated depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period (see Table C, overleaf).
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AirCompAnalysis DEC20.qxp_ACAn 18/11/2020 11:02 Page 5
TURBOPROP COMPARISON
Chart E - Maximum Scheduled Maintenance Equity PC-12 NG
Assumed Annual Utilization: 200 Flight Hours Average Maximum Maintenance Equity: $948,751 Pct of Avg Max Mtnc Equity vs. Aircraft Age
Pct of Max Mtnc Equity
100%
90%
80%
70%
60%
50%
40%
Assumed Annual Utilization: 360 Hours 4 2 3 Flight 1 5 6 Average Maximum um Maintenance Equity: $1,697,315
7
8
9
10
12
11
14
13
15
Aircraft Age (Years)
SSource: A Asset IInsight i h ((www.assetinsight.com) i i h
Table C - Depreciation Schedules MACRS Schedule for PART 91 1
2
3
4
5
6
20.0%
32.0%
19.20%
11.52%
11.52%
5.76%
Year Deduction
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
Table D - Grand Caravan EX Sample MACRS Depreciation Schedule 2020 Grand Caravan EX - Private (Part 91) Full Retail Price - Million $2.250 Year
Rate (%)
1
20.0%
2
32.0%
3
19.2%
4
11.5%
5
11.5%
6
5.8%
Depreciation ($M)
$0.450
$0.720
$0.432
$0.259
$0.259
$0.130
Cum. Depreciation ($M)
$0.450
$1.170
$1.602
$1.861
$2.120
$2.250
Depreciation Value ($M)
$1.800
$1.080
$0.648
$0.389
$0.130
Asking Prices & Quantity
$0.000
2020 Grand Caravan EX - Charter (Part 135) Full Retail Price - Million $2.250 Year
Rate (%)
1
14.3%
2
24.5%
3
17.5%
4
12.5%
5
8.9%
6
8.9%
7
8.9%
8
4.5%
Depreciation ($M)
$0.322
$0.551
$0.394
$0.281
$0.201
$0.201
$0.201
$0.100
Cum. Depreciation ($M)
$0.322
$0.873
$1.266
$1.547
$1.748
$1.949
$2.150
$2.250
Depreciation Value ($M)
$1.928
$1.377
Source: Aircraft Bluebook
88 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
$0.984
$0.703
$0.502
$0.301
In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS), based on a straight-line method meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a twelve-year recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a seven-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year. The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased after September 27, 2017 and placed in service before January 1, 2023. This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022 the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. Table D (left) depicts an example of using the MACRS schedule for a 2020-model Grand Caravan EX in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. The price is as published by Aircraft Bluebook at the time of writing. Table E (opposite) depicts an example of using the MACRS schedule for a 2020edition Pilatus PC-12 NG in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods. The price is per Aircraft Bluebook.
$0.100
$0.000
At the time of writing, 33 Grand Caravan EX business turboprops were available on the used aircraft market, and eight displayed prices that ranged between $1.7m and $2.395m. By comparison, there were 46 PC12 NGs for sale, and 23 showed asking prices ranging between $2.850m and $4.875m. While each aircraft serial number is
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AirCompAnalysis DEC20.qxp_ACAn 18/11/2020 11:02 Page 6
AVBUYER.com unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft – even between two aircraft from the same year of manufacture. The final negotiated price must ultimately be decided between the seller and buyer before the sale of an aircraft is completed.
Productivity Comparison
The points in Chart F (below, right) are centered on the same aircraft. Pricing used in the horizontal axis is as published in Aircraft Bluebook. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. 2. 3.
Full Fuel w/Available Payload Range (nm); The long-range cruise speed flown to achieve that range; The cabin volume available for passengers and amenities.
Table E - Pilatus PC-12 NG Sample MACRS Depreciation Schedule 2020 Pilatus PC-12 NG - Private (Part 91) Full Retail Price - Million $5.019 Year
1
Rate (%)
20.0%
5
11.5%
6
11.5%
5.8%
$1.004
$1.606
$0.964
$0.578
$0.578
$0.289
Cum. Depreciation ($M)
$1.004
$2.610
$3.574
$4.152
$4.730
$5.019
Depreciation Value ($M)
$4.015
$2.409
$0.867
$1.445
$0.289
$0.000
2020 Pilatus PC-12 NG - Charter (Part 135) Full Retail Price - Million $5.019 Year
1
Rate (%)
14.3%
2
24.5%
4
3
5
12.5%
17.5%
6
8.9%
7
8.9%
8.9%
8
4.5%
Depreciation ($M)
$0.717
$1.229
$0.878
$0.627
$0.448
$0.448
$0.448
$0.224
Cum. Depreciation ($M)
$0.717
$1.946
$2.824
$3.451
$3.899
$4.347
$4.795
$5.019
Depreciation Value ($M)
$4.302
$3.073
$1.568
$2.195
$1.120
$0.672
$0.224
$0.000
Source: Aircraft Bluebook
Chart F - Productivity Comparison Grand Caravan EX 2013-2020 0.160
The Faster Speed and LongerRange Question
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4
3
19.2%
Depreciation ($M)
Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size.
0
Pilatus PC-12 NG 2008-2020
$2.60
$5.02
0.120
Index*
The Pilatus PC-12 NG offers considerably faster speed and more range – plus a marginally larger cabin volume. However, the ‘Available Payload with Maximum Fuel’ is lower than that of the Grand Caravan EX. While the slower speed and less range impacts its placement on our overall productivity chart, the Grand Caravan EX comes in with a lower new and pre-owned price, and has a lower variable hourly operating cost than the PC-12 NG model. Would the time and cost of a fuel stop required by the Grand Caravan EX to cover the same distance be offset by its lower operating cost? What percentage of projected flights could be covered by the Grand Caravan EX, and how many could only be achieved with a longer-range, quicker Pilatus PC-12 NG? These are all questions that should be considered with a consultant to help determine the complexities of which business turboprop is best suited to an individual operator’s unique needs. Within the preceding paragraphs we have touched upon several of the attributes that business turboprop operators value. There are other qualities such as airport performance, terminal area
2
32.0%
0.080 $1.70
0.040 0.000 $0.0
$1.0
$2.25
$2.0
$4.0
$3.0
$5.0
$6.0
Price (Millions) Index *(Speed x Range x Cabin Volume / 1,000,000,000)
performance and time-to-climb that might factor in a buying decision, however. Ultimately, there is plenty for a prospective buyer to consider when deciding which performance criteria is better suited to them in an aircraft. Both business turboprops offer great value in the single-engine turboprop market today, serving their markets well. 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
AVBUYER MAGAZINE Vol 24 Issue 12 2020
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Values Intro Dec19.qxp_Finance 18/11/2020 09:21 Page 1
VALUES - TURBOPROPS
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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…
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 Fall 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 Cessna Grand Caravan EX reported in the Fall 2020 edition of the Bluebook shows US$1.8m for a 2015 model, US$1.75m for a 2014 model, and so forth. Aircraft are listed alphabetically.
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Retail Values DEC2020.qxp_RPG 17/11/2020 14:58 Page 1
VALUES - TURBOPROPS
Turboprops: Average Retail Price Guide MODEL YEAR $
2020 US$M
2019 US$M
2018 US$M
2017 US$M
7.775
6.00
5.00
4.70
6.39
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
2.40
2.30
MODEL BEECH KING AIR 350i BEECH KING AIR 350 BEECH KING AIR 250 BEECH KING AIR B200 BEECH KING AIR B200GT
2.30
BEECH KING AIR C90GTx
4.20
3.20
2.90
2.60
2.40
2.20
2.10
1.90
1.85
1.80
CESSNA 208 CAR G1000
2.00
1.90
1.80
1.75
1.725
1.70
1.675
1.65
1.60
1.55
CESSNA 208 GRAND CAR EX
2.25
2.1
2.0
1.9
1.85
1.8
1.75
1.7 1.75
1.65
1.70
1.60
1.30
1.20
1.10
2.20
2.10
2.00
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
2.32
1.90
DAHER TBM 940
4.504
4.10
1.80
1.70
1.60
3.30
DAHER TBM 930
3.90
3.80
3.60
DAHER TBM 910
3.70
3.50
3.40
DAHER TBM 900
3.10
1.50
1.40
3.00
2.70
DAHER (SOCATA) TBM 850 DAHER (SOCATA) TBM 700C2/EFIS DAHER (SOCATA) TBM 700B/EFIS PIAGGIO AVANTI P.180
5.50
5.00
4.50
4.00
3.50
3.00
2.70
3.30
3.20
3.10
3.00
2.90
1.40
1.30
1.20
1.175
1.125
PILATUS PC-12 NGX
5.353
PILATUS PC-12/47E NG
5.018
4.10
3.90
3.70
3.50
PIPER M600
3.081
2.60
2.20
2.10
2.00
PIPER M500
2.122
1.80
1.70
1.60
1.50
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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What your money buys today
Autumn 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
MODEL YEAR $ MODEL BEECH KING AIR 350i
2.90 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
1.90 2.20
2.10
1.80
1.70
1.60
1.50
1.45
1.40
BEECH KING AIR B200GT
2.00
BEECH KING AIR C90GTx
1.75 1.65
BEECH KING AIR C90GTi
1.60 1.50
1.275 1.50
BEECH KING AIR B200
1.45
1.225
BEECH KING AIR C90GT
1.45
1.175
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 CESSNA 208 CAR G1000
1.30
CESSNA 208 GRAND CAR EX 1.575
1.525
CESSNA 208 GRAND CAR
1.40 1.375
1.325
1.250
1.125
1.075
1.050
1.00
0.95
CESSNA 208B GRAND CAR CESSNA 208B SCM EX
1.50
1.00
1.45
0.95
CESSNA SCM G1000
1.40 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 940 DAHER TBM 930 DAHER TBM 910 DAHER TBM 900
1.90
1.80
1.70
1.60
1.40
2.50
2.10
1.80
1.60
DAHER (SOCATA) TBM 850
1.50
1.50
1.35
1.45
1.30
1.40
DAHER (SOCATA) TBM 700C2/EFIS
1.25
1.35
1.20
1.15
DAHER (SOCATA) TBM 700B/EFIS
1.30
1.25
PIAGGIO AVANTI P.180 PILATUS PC-12 NGX
2.80
2.70
PILATUS PC-12/47E NG
2.60 2.50
2.40
2.30
2.20
2.10
2.00
1.80
1.70
PILATUS PC-12/47 PILATUS PC-12/45 PIPER M600 PIPER M500
1.075
1.050
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
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FLIGHT DEPARTMENT MANAGEMENT
Flight Departments: Planning Ahead in Unpredictable Times
With all of the unknowns clouding the coming year, how can flight department managers plan for the future? This is no time for deferring decisions relating to future operations, as Andre Fodor’s examples highlight… s the end of a wholly unpredictable year approaches, I am faced with the challenging task of trying to forecast and plan for 2021. Typically, a new Flight Department budget looks ahead to identify possible cost increases. That’s harder to anticipate during times such as these. Our budget will impact critical decisions regarding fleet expansion, fiscal taxation and, ultimately, aircraft usage. For some who are making the same forecasts, their decisions could impact the viability of their entire flight department. In my consultancy role, I have been peppered
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with questions regarding acquisitions, management and maintenance. Everyone seems to be seeking guidance during this period of intense uncertainty. It is important, in accepting and adapting to changes in this industry, that we seek to embrace the challenges head-on. It is certainly possible to transform encumbrance into advantage, adventure and growth. As one mentor taught me, aviation is a business of motion – those who can’t move and change with it may have to jump off the ship. Our industry is neither for the faint-hearted or the settled spirit.
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AVBUYER.com With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer. https://www.linkedin.com/in/andrefodor/
“...aviation is a business of motion – those who can’t move and change with it may have to jump off the ship.” Be Proactive About the Year Ahead
As I look towards 2021, I see both opportunities and hurdles. Forward-planning and savvy thinking will be the key to a flight department’s survival. This is certainly not the time to sit idly by, leaving the big decisions to be resolved later. Allow me to illustrate from my own recent experiences… Just recently, I received a call from my base FBO manager who wanted to discuss the renewal of our hangar contract. This was nothing unusual – it is the right time of year when we expect such conversations to begin. What did catch my attention was the number of cc’d email addresses attached to the message. Clearly there was great interest. At the meeting, there were several people present in addition to the manager who typically works with me on the annual renewal. Within 30 seconds, I could tell they were looking to offset losses with hangar rental increases (in our case, a 30% increase). www.AVBUYER.com
It doesn’t require a crystal ball to foresee other increases ahead, with insurance almost certainly next in line (I’ve been forewarned to expect at least a 20% correction in addition to last year’s steep insurance hike). The reality is, at a time like this there’s no sensitivity to market preservation when people are focused on survival. As another example of the need for advanced planning: I usually schedule pilot recurrent training two years in advance. This time I spent several weeks trying to find out who the account manager and the training scheduler were. With the coronavirus, there had been many furloughs and staff consolidations, and some positions remained ‘void’ of ownership. When I finally found someone to answer the phone, they had changed roles within two weeks of my first contact. This was naturally a cause for anxiety. Aircraft cannot fly without proficient and current crew aboard. When you call a training facility asking for an
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account manager and the switchboard tells you that they don’t know who this person is, alarm bells start ringing. Beware: Challenges are everywhere. Be proactive in handling your operational needs. Finally, as one of our aircraft approaches its fiveyear mark and its first major inspection, we have been obtaining quotes and scheduling for the past eight months, ensuring we have a slot reserved and that all work is clearly documented and in the hands of the leadership at the service center. Originally, the estimated time for completion was 28 days, with a few extra added as a cushion. Recently we received a revised estimate extending the work to 45 days, since furloughs had reduced staffing, with fewer hands available to work on the aircraft. The message is clear: If you’re late with scheduling your upcoming maintenance there is a strong chance your aircraft will be grounded while you wait for space and personnel to become available to work on your airplane. Plan ahead, and look for maintenance locations that lower demand. You may be able to negotiate incentives (such as lower shop rates, fuel credits, hotels and meals for you to fly your aircraft further to their facility). Stay alert. There have been disruptions everywhere, and people might not be as sharp and focused as usual. When attending a maintenance center, look out for hangar mishaps and be sure that your airplane is well protected from static incidents that can damage and diminish value.
ad re Re Mo
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What are the Positives?
Charter inquiries and quotes have increased. Most charter and fractional flying is nonbusiness, currently. When business flying ticks upward, expect to see further growth in these segments. Aircraft sales have slowed, but inquiries and interest are both high. My hope is that once the pandemic eases and the fall-out from the US Presidential election is over, the industry will rebound faster. For those who can afford private flight, the airlines will continue to lose appeal due to health fears, service shrinkage, and fewer direct flights.
In Summary
Hopefully, the preceding paragraphs have highlighted that this is no time to ‘wait and see’. Now is the time for planning, diligence and preparation. A crucial part of your job is to keep the principal informed and educated, helping them accept the “new normal” of our industry for 2021. That requires your radar to be tuned in to how the current challenges will impact the availability and cost of the services they need. Beneath this thick foam of disruption there’s still a workforce of highly competent professionals. We have all suffered disruptions but we remain ready and willing to deliver excellent service. Stay safe, stay healthy, and to all I wish you a happy New Year! T
ANDRE FODOR ARTICLES
at AVBUYER.com
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Castle Air December.qxp_Layout 1 18/11/2020 10:25 Page 1
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Flight Dept 2.qxp_Finance 17/11/2020 14:23 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. https://www.linkedin.com/in/ mario-pierobon-85991319/
Minimum Equipment Lists: Why They’re so Important In Business Aviation there is more flexibility in schedules to allow faults to be rectified prior to departure, but MELs are still important in certain circumstances... Minimum Equipment List (MEL) is a standard, structured list documenting an aircraft’s equipment or systems which may not be working correctly but still allow an aircraft to fly safely under certain conditions. MELs are used as a reference by both pilots and aircraft maintenance technicians, and they are part of the documentation carried aboard the aircraft.
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Why is Your MEL so Important?
As mentioned, the importance of an MEL lies in the fact that it allows you to dispatch an aircraft with some of the equipment inoperative. If there is a component that is inoperative and there’s the need to dispatch before it can be repaired, the presence of duplicate systems on the aircraft allows you to do so, owing to built-in redundancy. “As an operator you want to be able to have as
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much leeway as possible, but at the same time you also want to operate as safely as possible,” Stewart D’Leon, Director of Technical Operations, NBAA, told AvBuyer. In this two-part story we will cover the use of MELs in Business Aviation; consider why an MEL is important; focus on the specific Business Aviation requirements with regard to MELs; and think about the procedures for MEL development and training in a Business Aviation organization. Jeremy Purry, Technical Author at Total AOC/Centrik notes that, as with commercial passenger operations, business aircraft have designated windows for departure and schedules to maintain. “If something is found on an aircraft that is not working correctly, there is pressure to get the issue rectified to allow the aircraft to depart as close as possible to its planned departure time”, he says. “If an inoperative component is discovered, the MEL will inform the flight crew and engineering www.AVBUYER.com
personnel if it is safe to take off, providing a structured way to assess the fault and determine the steps that must be taken – in line with all safety regulations – before making a decision to fly.” While the MEL is a document that is developed by the operator, it is based on the Master Minimum Equipment List (MMEL), which is developed by the OEM. “The MMEL is a kind of overarching document that can be used by an operator to develop the MEL,” D’Leon explains. “There are different ways to do that, but most important is that the MEL cannot be less restrictive than the MMEL. The MEL can contain additional restrictions, but it cannot be less restrictive. “Moreover, if, for example, it is a requirement to have two VHF radios installed and one to dispatch, all the actions that need to be taken to dispatch with one will be stated, too, in the MEL,” D’Leon adds. “These actions are identified in the maintenance and operational procedures section.” If an item is not in the MEL, it is not possible to
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“Business Aviation operators primarily use the MEL as a resource to dispatch the aircraft from a remote location to their home base for repairs.” dispatch with one inoperative. “If I have a VHF radio that’s inoperative and it is not listed in the MEL, it is not possible to dispatch the aircraft”, D’Leon explains. “However, there may be items that are not in the MEL, but are on a Configuration Deviation List (CDL) or a NonEssential Furnishings (NEF) list. “These additional documents complement the MEL and allow for dispatch with inoperative items that may not be listed in the MEL.”
Specific MEL Requirements in Business Aviation
Although MELs are not specific to Business Aviation, there are some aspects of the MELs that are different for Business Aviation compared to other sectors (such as the airlines). One such aspect is that often the Business Aviation operator has greater ability to fix the faulty component or the system. “For an air carrier that provides a scheduled service, there tends to be less flexibility,” D’Leon notes. “So, if there is a way for them to quickly fix the inoperative component, they will do it. Otherwise, they will defer it until they can get that aircraft home, usually that evening, or until the next scheduled maintenance. “By comparison, Business Aviation organizations generally have flexible schedules that allow them to repair inoperative items prior
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to dispatch, and generally do not get into the MEL as often. Business Aviation operators primarily use the MEL as a resource to dispatch the aircraft from a remote location to their home base for repairs.” Modern aircraft do not regularly break down or suffer significant system or equipment failure, so a business aircraft’s MEL document often remains unused for considerable periods of time. “Due to the significantly higher number of flight hours carried out by a commercial airliner, the MEL may be used more frequently owing to more equipment wear,” notes Purry. “In Business Aviation, aircraft do not fly as often, so wear and failures are far less frequent. However, because of this reduced usage other problems may occur – an MEL will therefore most likely be required if an issue has arisen when the aircraft has landed at a smaller airfield, particularly one with no hangars or engineering support. “In this case, the pilots would need to refer to the MEL to ascertain whether the aircraft is able to depart,” reflects Purry. And so it is important that a Minimum Equipment List is carried and kept up-to-date for every business aircraft. How can you develop an up-to-date MEL in your flight operation, and what training is recommended relating to the MEL? We’ll discuss these important questions next month. Stay tuned! T
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Maintenance1.qxp_Finance 17/11/2020 14:30 Page 1
MAINTENANCE
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Three Tips to Avoid Early Aircraft Maintenance
Regardless of the systems and type of aircraft you operate, flight crew can play a key role in preventing early maintenance and minimizing the associated costs. Dave Higdon shares three tips… s much as the modern business aircraft’s state-of-the-art powerplants and systems have evolved to simplify the workload of those operating them, one thing remains the same: The capability of the operator to damage them with careless or improper use. Flight crews continue to play a key role in helping to ensure aircraft enjoy a long life, free of unnecessary and troublesome maintenance events. But what are some of those potentially ‘troublesome’ events, and how can operators avoid encountering them, inadvertently? Sometimes, it comes down to simple aircraft operation management, while other times it’s more technical in nature. Almost always the proper care and attention can help you to avoid unnecessary inconvenience and cost, preventing the company’s business aircraft from needing an early trip to the MRO shop.
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TIP 1: The Small Things Matter
Several years ago, a passenger of mine asked why we approached the destination runway in a series of maneuvers that resulted in slower airspeeds. We were both eager to end the five-hour flight so we could each
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attend meetings scheduled for that afternoon. I explained how slowing for touchdowns contributed to a shorter landing and an easier rollout, essentially resulting in reduced wear on the aircraft's brakes and tires, and contributing to a lower maintenance and inspection bill when the annual inspection came due. “You're also fortunate that you don't have to put your airplane into a rental agreement,” my airframe and powerplant mechanic once pointed out, highlighting how, with different pilots flying, the airplane may be exposed to the handling of those with no ownership stake. Such aircraft tend to require more expensive maintenance (not to mention the change to 100-hour inspection cycles instead of annual inspections).” That A&P helped me understand how even little changes in my flying habits could help lower the costs of maintenance and periodic inspections. Operating the aircraft with a mindset to keep maintenance at a minimum offers benefits to any operation, whether a small company flying a small Piston Single or the Large Jet flown for a multinational conglomerate.
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MAINTENANCE
TIP 2: Engine Care
As noted earlier in this story, closely watching temperatures and pressures upon engine start-up can help preclude exceedances that may mandate a hotsection inspection – if not a hot-section overhaul. Both are expensive, time-consuming jobs. When in-flight, observing temperature, pressure and fuel flow levels can help keep the powerplants running happily until they reach the time or cycle triggers for inspection and overhaul. But that doesn't mean ‘babying’ the engines. Mechanics and powerplant engineers encourage pilots to run their engines as hard as conditions can allow; not wide-open all of the time, but high in the power range to help keep the engine healthy. ‘Babying’ engines, they warn, can allow soot and carbon to build up in the power sections, which wastes fuel and contributes to even more build up. The best solution to an engine that is dirty on the inside is to run through an engine-wash system to flush out and remove the efficiency-robbing contaminants.
TIP 3: Avoid Mismanaging Pressurization
Another potentially costly operating issue stems from the aircraft's pressurization system, which is a manually-controlled system on many older jets and turboprops. (The modern ‘set-and-forget’ pressurization controls are a relatively recent development, especially on turboprops.) Mismanaging pressurization could incur a variety of maintenance needs, from damaging the outflow valve that modulates the cabin pressure; to causing seals to fail due to excessive pressure (potentially injuring the ears of passengers); and blowing the outflow valve, resulting in rapid decompression – an event with a potentially fatal outcome.
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And failure to reduce cabin pressure to ground level after landing can result in damage to the door-lock mechanisms as well as the cabin door opening violently enough to damage the airframe and injure anyone standing directly outside. The result? More unnecessary maintenance and repair.
It's (mostly) a Question of Control
Most of the poor operating practices that damaging an aircraft, powerplant, or components are under the control of the flight crew, regardless of how state-ofthe-art the systems are. That puts the onus on the flight crew to adhere to best operating practices, whether on a fully-crewed Large Jet, or an aircraft operated by a single pilot. Most potentially damaging events can be avoided completely. Getting the most out of the aircraft, for the least level of wear and tear, and on the minimal fuel possible, comes down to learning those practices and making them standard operating procedure. The result will be a happier aircraft that spends the least possible amount of time in the maintenance hangar. And that equates to a happier flight department, reporting to a happier CFO… T
Dave Higdon is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com
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Jet Connectivity: What's Really Needed on Shorter Flights? Is there a good reason not to have onboard Wi-Fi on smaller business aircraft? How much is really necessary when most flights only last under 90 minutes? Brian Wilson provides some insights and advice… y job requires me to travel every month, and that usually requires me to fly commercially. While I’m traveling, there is always the need to be accessible to clients and colleagues. Flights from the major airline hubs are usually aboard the larger aircraft, and the connectivity is sufficient to get my job done. The shorter legs tend to be on smaller regional jets, and I am faced with either very limited connectivity or none at all. Compounding the frustration, I am forced to digest banter from the cabin attendants
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that “it’s only a one hour flight”. One hour or not, how can an airline justify such a disparity in passenger experience? Could it be that corporate jet clients face the same gap in the cabin connectivity market? Imagine the CEO and CFO of a large corporation chartering a Gulfstream G550 from Europe to the US. Crossing the Atlantic, they prepare for an important meeting, while corresponding with their colleagues back at headquarters. The next leg has them transitioning to a smaller Embraer Phenom 300 or Beechcraft King Air 350i
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Brian Wilson is the Director, Key Accounts at Gogo Business Aviation, an industry-leading provider of in-flight connectivity and entertainment solutions. Prior to Gogo, he sat on numerous Dealer Advisory Boards along with being a member of the AEA Board of Directors. https://www.linkedin.com/in/ brian-wilson-96795918/
allowing them access the small airport with a short runway nestled closest to their destination. The final presentation needs a last adjustment and fresh data – but that proves to be problematic since the aircraft does not have sufficient Wi-Fi!
Cost Versus Competitive Advantage
it has connectivity no longer closes the deal like it once did. Clients are becoming smarter about which systems perform and meet their needs and expectations. Connectivity can be a differentiator between Aircraft A and Aircraft B on the shopping list. When I’m talking to aircraft brokers, personnel associated with charter and management companies, or the aircraft owners themselves, I always switch the conversation from “Why should I make this investment?” to “Why you can’t afford to not make the investment”. The talking points then center on the following:
Based on the above scenario, it’s easy to imagine the charter company would not see repeat business from this client. Moreover, word of mouth travels faster, and negative reports tend to be more damaging than the best marketing effort. One social media post saying “I enjoyed the flight, however the Wi-Fi was insufficient” will surely deter potential new business. When answering the question of how much connectivity is really necessary on a shorter Business Aviation flight, cost versus competitive advantage is a consideration that needs making. Charter companies in particular cannot allow such a disproportion of service to their clients today. Management companies that provide fractional shares face the same challenges. I have witnessed many roundtable discussions where the CEO is pleading for the managed fleet to upgrade their Wi-Fi so they can capture a larger market share.
When considering just how much connectivity is really needed for shorter business jet and turboprop flights, although the larger airframes will have more functionality, having the right system aboard the aircraft will keep clients and passengers satisfied.
Smaller Fuselage is a Receding Excuse
Meeting the Client’s/Passengers’ Expectations
While the smaller fuselage associated with Turboprops, Light and Medium Jets have traditionally inhibited their ability to have viable connectivity solutions, advancements in technology and antenna design have opened the door for this segment of the market. The installation price and associated monthly data charges put a strain on ancillary budgets within this class, although some vendors have reacted to the down market by making the pricing more attractive through customer loyalty programs. As an example, Gogo Business Aviation is offering incentives including rebates of up to $25,000. Once the installation is completed and the system activated, the owner receives a check within a few weeks. On some of the options provided by Gogo, the monthly service has a very affordable pay-by-the hour program, and the owner/pilots can track their usage and costs based on how many hours they flew that month. What’s more, the residual value of installing Wi-Fi on an aircraft is compelling. Seldom does an aircraft transaction occur without a discussion on connectivity being at the top of the list. I receive frequent calls from aircraft brokers wishing to consult about what is currently installed on an airplane and, more importantly, what ‘should’ be installed. Merely ticking the box on the aircraft profile that says
www.AVBUYER.com
• • • • •
What is the right system for the aircraft? Why is the correct system an investment? (Positive ROI) How much additional revenue can be generated? Can market share be increased? What vendor incentives are available to offset the investment?
The goal of Business Aviation – whether the company flight department or a charter/fractional ownership provider – is to always fulfill the expectations and needs of the passengers. Inevitably, the passenger wants the same connectivity experience in the air as they have on the ground. This is a challenge, even with the larger airframes. The key is to match the best solution, within budget, with the capabilities requested by the passengers. Keep in mind that the installation costs are only one factor when you’re considering the upgrade. Consider the following aspects to the overall cost: • • •
Monthly service costs should be fully evaluated and assessed (per flight hour, each month). Not all service costs are fixed – what overages will apply (usually this is where streaming of content is possible). What will the downtime be? Each day an aircraft is on the ground, revenue potential is reduced. Performing any upgrade during a maintenance inspection is a best practice.
There will always be more budgetary restraints on smaller airframes, so it’s usually best to understand which cabin connectivity capabilities will satisfy the majority of
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passengers, as opposed to everyone. Keep in mind that the average flight is likely to be less than ninety minutes, so gaining the ability to stream a movie or download a large PowerPoint deck may not be a justifiable investment. Most clients understand the limitations associated with their smaller airframes, so performing normal daily activities such as email, text, voice calls and light internet use should suffice. Laminated seat-back instruction cards and crew-topassenger briefings can help eliminate most unfiltered feedback, enabling passenger expectations to be met without breaking the budget.
What are the Leading Connectivity Solutions for Lighter Aircraft?
For operators in the United States, Gogo Business Aviation offers two economical solutions that provide different capabilities. These include: •
•
AVANCE L3: Gogo’s most affordable platform-based solution, providing a solid broadband connection. The AVANCE L3 comes with three pricing options and multiple data plans. AVANCE L5: Delivers the Gogo Biz 4G inflight experience, streaming video and audio; providing on-demand movies, moving maps and flight
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information; and enabling personal smartphone use, real-time data for cockpit apps, and remote diagnostics. For operators outside the US, SwiftBroadBand (SBB) is still the most viable solution. These satellite-based systems provide connectivity, but the speed and capabilities are very limited. A thorough understanding of the performance of SBB is advised before any investments are made by owners/operators. Meanwhile, the European Aviation Network (EAN), first announced in 2015, is a hybrid airto-ground and satellite-based system, but is still not available for the private jet market.
In Conclusion
The lighter jet market has more options than ever before to get connected. It also has an even more compelling reason for operators to equip with a suitable connectivity system, as discussed above. Coupled with pricing incentives and a maintenance inspection (to reduce the installation cost and the time the aircraft is out of service), it is now time to focus on ‘why’ you need cabin connectivity onboard your aircraft, providing ultimate passenger satisfaction. ❙
CABIN CONNECTIVITY
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Avionics 1.qxp_Finance 17/11/2020 10:25 Page 1
AVIONICS
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A Guide to Your Aircraft’s Flight Panel: The Future Over three articles, Ken Elliott takes you on a journey through a
typical corporate aircraft cockpit. Having already explored cockpit layout and ‘behind the scenes’, this month he concludes with a look into the future…
n this third and final article we venture into the future to explore the evolving cockpit first hybrid, then remote, and, eventually, no cockpit. Cockpit capability varies by aircraft type. On larger, longer-range aircraft there is the need to stay connected while navigating in tight vertical and lateral tracks. The aircraft needs to remain in virtual sight, over oceans and remote regions. Because of its transit across different regions, the aircraft may also be flying under different operational rules, altering its technology requirements. Manufacturers of aircraft, and their vendors, are careful to offer basic equipment packages with custom-selected options. These can be chosen at
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the initial purchase or added later as an upgrade. Alternately, there may be third-party vendors offering other choices to obtain the same – or similar – capability. These may be less expensive or have different features. Frustratingly for those who always want to have the latest and greatest equipment, it is not possible for aircraft buyers to guarantee they have all the bells and whistles by the time their ‘green aircraft’ serial number is freshly painted and delivered. There is, however, a growing trend toward ‘open architecture’ that allows technology to evolve largely through software updates, as opposed to hardware changes. Aircraft owners will be delighted in the minimized downtime and cost resulting from these new modular avionics.
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Specific Cockpit Technologies Available Today
Tables A-E list technology-based cockpit capabilities that you may not yet have on your aircraft. Each capability is shown with up to two features. These lists can be used to check off each capability and verify if it is offered, either for your new delivery or as an option for post-delivery. The feature may also be available for older pre-owned models, either from the aircraft factory or a third party vendor. The capabilities within each table are not exhaustive, and each capability, itself, may not include all of its possible features. Beyond these individual capabilities are system-wide technologies that are available for modern aircraft. Each aircraft manufacturer is married to a primary avionics vendor. Sometimes this can change mid-stream during an aircraft build lifecycle, however. Manufacturers will have serial number cut-offs for vendor A and cut-in serial numbers for vendor B, but you will need to request that information if you are looking for a pre-owned aircraft that is equipped by a specific vendor. System upgrade examples include Honeywell’s Primus Epic, Collins Aerospace Proline 21 or Fusion, and Garmin G3000 or G5000 suites. Upgrades of this magnitude can include many of the features listed in Tables A to E. A subset of these avionic suites is to simply replace the cockpit displays themselves. Typically, this infers migrating to flat panel displays, offering huge overall advantages.
Future Cockpit Technology Options
“Manufacturers will have serial number cut-offs for vendor A and cut-in serial numbers for vendor B, but you will need to request that information if you are looking for a pre-owned aircraft that is equipped by a specific vendor.”
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Some aircraft OEMs will claim an availability of ‘future-leaning’ features, and they may be correct. But beware: It could be they are only provisioning for the feature on current-build aircraft. Another possibility is the aircraft may be outfitted, but is waiting on software, or final certification. Table F (opposite) lists future capabilities as technologies, along with up to two features per technology. Aside from the future technologies listed in Table F, there are the current and emerging technologies required for other aviation users. The long-term impacts of COVID 19 are unknown, but it is likely these will www.AVBUYER.com
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A
speed up the implementation and airspace integration of both e-VTOL and remotely piloted aircraft. Those are just two of the ‘other aviation’ user groups from where Business Aviation will leverage, sooner rather than later. Part of this technology development (and transfer), is based on the potential growth of passenger transport operations that are less reliant on major hubs, and a desire for few passengers on any single flight. The fundamental lines of operation separating the scheduled airlines and Business Aviation will be less delineated, blurring the different use of airports, aircraft types and flying procedures. The pressure outflow from these changes will speed up the transition of cockpit-based, to remote-cockpit platforms. It will take several generations and many years before we see a total shift, but the underlying principles will steer future design and engineering. ‘Hybrid’ fits the evolution that will endure. A cautious, incremental approach that may witness bursts of growth from outliers like Wireless Avionics Intra-Communication and 5G related capability, enabling cockpits in ways previously unimagined.
What Could Drive the far-Future Cockpit?
Aside from pilot vs remote pilot, we are seeing a convergence of technologies and features that enable a simpler cockpit. Just two examples include: •
•
A single 4D flight command to steer the aircraft. This command will be so intelligent that in real-time it senses and reacts, based on aircraft performance limitations. Knowing the limits of attitude, turn-rate, airspeed, altitude, vertical speed, ceiling and more, the 4D command bypasses the need to display this primary flight data to the pilot, other than if limits are approached. While performance limits are programed into systems today, the emerging difference will be more dynamic and increasingly sensitive to the external environment. Apart from an emergency fail backup, all communication is digital. Voice
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becomes a secondary tool. Air-to-Air and Air-to-Ground data transfer ensures error-free transfer of instructions, leaving less to misinterpretation. There are other examples too, centered on surveillance and all-weather operations.
AVIONICS
Two Cockpits in One?
Interestingly, based on accident findings and pilot feedback, it is likely there may evolve two cockpits in one. The first will develop to be almost autonomous and the second will hark back to a simple hand-flown machine. Today, that is demonstrated by all cockpits having
on AVBUYER.com
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FIGURE 1: Portrayal of a far-Future Cloud-based Air Traffic Management (ATM)
Aircraft systems will be mostly in the Cloud or its future equivalent. Flights will be flown, based on composite 4D dynamic ATC requirements, and not just an individual flight plan. Remote flight commands will be responsive to the real-time performance of the aircraft. In/out sensors and actuators will be the only equipage required to inform to/from and command the aircraft. All traffic may be grouped by category of airspace being used, instead of by size and capability.
standby instruments, driven from independent emergency power supplies. The irony of this is that the more advanced a cockpit becomes, the more there is a case to ‘take over command completely’ when there’s a need, or enough confusion exists with the autonomy. While autonomy can save time and cost through efficiency, there will always be the ultimate safety net of a hand-flown emergency maneuver. It’s been a concern of flight crews for some time that we have “lost the art of flying the aircraft” to the point that, during an emergency, there’s insufficient experience and a lack of confidence in knowing how best to react. Another driver of change in the cockpit is a better understanding of human factors, brought about by years of monitoring pilot performance. Ergonomics is understood to the level of sensing coordination, where touch, sight and sound all play a role in the design. Yet another factor is the exponential capacity of electronics to handle more data, due to an expansion of bandwidth and speed. And on-board latency (or delay) is crucial in terms of each system, intra-systems, and the crew reaction time. External latency involves ground-to-air, air-to-air, and 114 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
satellite-to-air and ground. A delay originating from any element can, in turn, mitigate the advantages of greater speed and bandwidth. Lastly, avionics and other cockpit systems – including their remote equipment – are currently situated onboard the aircraft. These will become ‘off-board’ technologies. There will be greater off-loading to a 5G (or later) cloud-based platform, leaving the aircraft with digital-to-analogue devices. These devices, located at each moving surface, will in turn receive their commands from dual Bluetooth transmitters, receiving their instructions from dual satellite-based systems.
In Summary
Moving from yesterday’s cockpit to what we fly today was so much of a change it’s hard to imagine where else developers can go to improve on what we have. However, it only takes a little digging to realize not only major changes forthcoming, but minor realistic ones on our immediate horizon. Societal demand dictates the desire to implement change and the rate at which it occurs. Recent events alone, have made us all rethink how we work and play. The inertia resulting from aircraft in production and on the
drawing board will slow down some of the changes afoot. Equally, the slow incremental introduction of guidance and regulation will filter out the uneconomical and those that cannot attract investment. There are so many cockpit features that aircraft owners can add today. A good start is to use the article checklist and see if your aircraft manufacturer offers them as options. On the other hand, if you think you have everything available, then sit tight: More cockpit offerings will be on their way at a dealer near you… ❙
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 systems, he has contributed to several work groups and committees, including for NextGen, Airport Lighting, Human Factors, Unmanned Aircraft and Low Vision Technology. In retirement, he is striving to give back the knowledge gained with an eye on aviation’s future direction.
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Under the Patronage of His Royal Highness Prince SULTAN BIN SALMAN BIN ABDULAZIZ AL SAUD Chairman of the Saudi Space Commission Founder and Chairman of Saudi Aviation Club
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OEM Bites
Bombardier announced the development of a new service center at Essendon Fields Airport in Melbourne, Australia, building on its commitment to the Australian market and establishing the next building block in its growing global customer support network. www.bombardier.com
Embraer Links with Car OEM for Limited-Edition ‘Duet’
Embraer and Porsche have collaborated to create ‘Duet’, a limited-edition, limited-quantity Embraer Phenom 300E aircraft and Porsche 911 Turbo S car pairing…
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mbraer and Porsche will produce just ten pairs of business jets and sports cars. “Duet is an exclusive package developed in a unique design collaboration with Porsche,” explained Michael Amalfitano, President & CEO, Embraer Executive Jets. “This rare, refined combination will only be available through this one-time-only pairing.” From its award-winning interior design – with an abundance of cabin and baggage space – to its highly intuitive avionics, the Phenom 300E delivers exceptional performance, comfort, and technology. The 911, meanwhile, is the heart of the Porsche product portfolio and has one of the longest and most celebrated traditions in the automotive industry. “Porsche and Embraer share a host of common values,” noted Alexander Fabig, Vice President Individualization and Classic at Porsche AG. “As part of our cooperation, we used the know-how of both brands to work jointly on a unique pair of vehicles that are equally attractive for the customer group of jet and sports car owners.” 116 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
Designed in tandem, the result is a uniquely designed jet and car, each featuring a customized interior and paint scheme inspired by one another. The seats in both vehicles feature red pull straps, a Speed Blue accent stitch, and carbon fiber shrouds to create a shared connection. Among other things, the cockpit seats of the Phenom 300E were redesigned to match the car. In the 911 Turbo S, Porsche introduced a unique color combination for the steering wheel to match the aircraft’s yoke, with a Speed Blue accent at 12 o’clock, as well as the first Chalk Alcantara trim roof lining — a homage to the aircraft. The aircraft and car share the same exterior paint pallet and general scheme, and, for the first time Porsche has combined gloss and satin-gloss paintwork. The upper part of the car is finished with Platinum Silver Metallic, transitioning to Jet Grey Metallic at the bottom. Dividing the two paint colors is a trim strip with lines in Brilliant Chrome and Speed Blue. More information from https://executive.embraer.com
Dassault has signed its 500th contract for its FalconCare guaranteed maintenance program, and further expanded the program to meet a broader range of customer needs and budgets. Introduced in 2005, FalconCare offers a full range of scheduled and unscheduled maintenance services through C-Check. www.dassaultfalcon.com
Tecnam will partner with Rolls-Royce to develop an all-electric passenger aircraft. The twin-motor “P-Volt” will be designed for short- and medium-range commuter routes along with cargo, medevac and special mission operations. The commuter version is expected to carry up to nine passengers. www.tecnam.com or www.rolls-royce.com www.AVBUYER.com
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OEM Bites
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Piaggio followed up a recent sale of its P.180 Avanti EVO to a customer in the United States with another order – this time signed by an entity headed by the Ministry of the Interior, which purchased a new unit for the Italian National Fire Brigade. www.piaggioaerospace.it
Textron Aviation will expand its service offerings to provide customers with a new standard repair process for Cessna Citation CJ series aircraft main landing gears (MLG). This will allow engineers to repair the MLG without having to replace it, improving cost-effectiveness of operation for customers. www.txtav.com
Gulfstream G500 and G600 Exceed Expectations – Again… Gulfstream’s next-generation G500 and G600 have once again demonstrated additional range capabilities through real-time operations…
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VoltAero has chosen Sonaca Group to develop the airframe for its Cassio family of hybrid-electric aircraft. Sonaca Group will transition Cassio from its current design status into a production-ready definition, and oversee the aircraft’s manufacture by a yet-to-be-announced aerostructures producer. www.voltaero.aero
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he Gulfstream G500 now delivers 5,300 nautical miles (nm) at Mach 0.85 and 4,500nm at Mach 0.90. The G600’s range at Mach 0.85 has improved to 6,600nm and 5,600nm at Mach 0.90. “The G500 and G600 have been exceeding expectations since they entered service,” said Mark Burns, president, Gulfstream. “This latest demonstrated range increase provides further proof of the tremendous efficiency and versatility of these aircraft. “The Gulfstream team is always looking for opportunities to improve aircraft capabilities and the customer experience...” In addition to the range increases, the G600 now delivers greater payload capacity with full fuel. The G600’s basic
operating weight has been reduced by 570lbs over original values, bringing its full-fuel payload capabilities up to 2,600lbs. “What’s exciting for our existing customers is that these improvements already exist on their in-service aircraft with no modifications required,” Burns added. During the flight-test program for the G500 and G600, both aircraft exceeded initial performance expectations with increased range capabilities. The G600 achieved a second high-speed cruise range increase before it entered service, gaining 700nm over original projections. The maximum operating speed of both aircraft is Mach 0.925. More information from www.gulfstream.com
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Jamie Buff was named Director of Technical Services for Mente Group. Buff has held significant aviation maintenance positions for AMB Group, Coca-Cola, Nike, P&G, Wachovia Bank, Cessna, and the U.S. Air Force. Jamie Buff
Scott Meyer
Greg Hoggett is appointed General Manager, Biggin Hill Service Centre, Bombardier Aerospace. With more than 30 years of aviation experience, Greg has held numerous roles in the industry and joined Bombardier from AJW Group. Scott Meyer was appointed to the new role of Chief Operating Officer, Flying Colours Corp with immediate effect. Meyer joined Flying Colours in December 2019 as Vice President and General Manager of the St. Louis, MO facility.
Vince Restivo, previously Vice President of Program Management at Mente Group, has been appointed to the newly created position of Chief Operating Officer, responsible for day-to-day administrative and operational functions of the broad-based aviation consulting firm. Vladimir Šíp was promoted by ABS Jets to Chief Technical Officer. He was previously Line Maintenance Manager for the company. ABS Jets is a business jet operator and Embraer Authorized Service Centre based in Prague and Bratislava, and Mr Šíp will be responsible for the MRO facility’s growth and development.
Vince Restivo
Vladimir Šíp
Marilyn Vela is the new Director of Network Sales for Ross Aviation. Having worked in the aviation Todd Rasch has been promoted at industry since 1989, she brings a West Star Aviation to Quality/ Accountable Manager at its East Alton, wealth of industry experience to the role. Most recently Marilyn was a Illinois facility. Previously, Rasch has Regional Sales Manager, Signature worked eight years with West Star as Flight Support. T Chief Inspector. Todd Rasch
Marilyn Vela
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
www. 118 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
.com www.AVBUYER.com
Marbale Universal December.qxp_Empyrean 18/11/2020 11:31 Page 1
S H O W C A S E
2020 Gulfstream G500 • Brand new, 13 passenger aircraft, under 40 hours of flight time • EASA Certified & FAA Compliant • Aircraft registered in Austria • Vinyl Flooring in Entryway and Gallery Area • Removable Acoustic Curtain between Cabin 2 and 3 • Espresso Maker • 4-inch HD LCD Monitor on the Aft Right-Hand Bulkhead • Electric Wine Chiller • Honeywell SwiftBroadband Data System (WiFi) • DVD, HDMI, USD and iPod/iPhone ports to enable a wide variety of entertainment options • Fully equiped kitchen with convection oven and microwave oven. • Extra counter space to make food and drink preparation easier • Electric Lumbar Support on 6 selected single seats and 2 selected double seats. • Protective coating to exterior paint
Location: Europe, Russian Federation
Email: KOKOLOFF@gmail.com
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UK Mobile: +44 7500 5549 57 Russian Mobile +7 915 294 74 55 WhatsApp Only: +1 765 705 01 14
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Mesotis 2013 Cessna Citation CJ4 December.qxp 18/11/2020 11:32 Page 1
S H O W C A S E
2013 Cessna Citation CJ4 Serial Number: Registration: Airframe TT: Landings:
525C-0144 D-CHRB 1529 1594
• TAP Advantage Blue • ADS-B out • Belted toilet • Externally serviceable toilet Engines Engines 1/2: 1529 / 1592 Cycles 1/2: 1594 / 1594 Avionics & Connectivity Collins Pro Line 21 Integrated Avionics Suite • Collins Pro Line 21 CNS Radios with dual COM, dual NAV, dual digital audio control panels, single Collins DME 4000 and Dual Mode S diversity transponders with Enhanced Surveillance • FMS-3000 with WAAS enabled GPS • Collins Weather Radar • XM Weather • L-3 Communications FA2100 Cockpit Voice Recorder • Collins TSS-4100 (TCAS II) • Artex C406N 3-frequency ELT • Pulselight System • Electronic Charts (requires subscription) • RVSM Capable
Interior & Entertainment Carnegie Interior Scheme in Overall beige with Pommele Imuya high gloss wood veneer and brushed aluminum hardware. Cabin amenities: cabin seating for 8 passengers, six cabin pedestal seats, single place right-hand forward side-facing seat and belted toilet. INTERIOR • Left-hand forward refreshment center • Right-hand forward cabinet • Venue Cabin Management system • Executive & slimline tables • Left-hand belted flushing toilet • Aircell Axxess II Phone system • 10.6” Video Monitor located in RH Fwd Cabinet • 110 VAC universal outlets • Externally Serviceable Toilet • Swivel Seats Exterior Split base with Snow White and Gray with Blue stripe
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
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Jetsense Aviation 2010 Learjet 45XR November.qxp_Empyrean 18/11/2020 14:16 Page 1
S H O W C A S E
2010 Learjet 45XR Serial Number: 406 Registration: N821LC Airframe TT: 4230 Landings: 2832 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 Description: S/N: THSN: TCSN: THS MPI: THS CZI: Program Airframe THSN: TCSN: Program
APU Description: S/N: THSN: Program
Left engine TFE731-20BR-1B P-132178C 4097 Hours 2754 Cycles 1215 Cycles 1903 Cycles MSP Gold
Right engine TFE731-20BR-1B P-132177C 4021 Hours 2706 Cycles 1026 Cycles 1979 Cycles MSP Gold
4229.3 2832 SMART PARTS PLUS Available $350,000 POSITIVE BALANCE | $416 / HOUR | 300 HOUR MIN Allied Signal RE100LJ P-444 1674 MSP Gold
Avionics Honeywell Primus 1000 Honeywell Autopilot Flight Guidance Controller Dual Honeywell Integrated Computer IC-600Dual RCZ-833K Integrated Comms Dual Honeywell RNZ-851Dual RM-855 Radio Management Units Dual Honeywell DA-800 Data Acquisition UnitsHoneywell DU-870 Display Units (Four) Dual Honeywell Display ControllersHoneywell RT-300 Radio Altimeter AerosonicStandby AltimeterDual Honeywell AZ-950 Air Data Computers Dual LITEF LCR-100 AHRS ComputersDual Universal Avionics UNS-1EW Universal Avionics SSDTU FMC DTUIridium ICS 200 2CH Honeywell WU660 Weather RadarArtex C406-2 MHz ELT Honeywell Mark V EGPWSHoneywell 2000 TCAS II Mode S Honeywell Cockpit Voice RecorderADS-B Out (2020 Compliant) Interior Passengers Nine (9) Configuration Fwd–Four (4) place club Aft – Four (4) place club Galley Fwd Lav Aft (Belted) Interior Base Color: Matterhorn White Stripes: Navy Blue, Harvest Gold, and Grey Asking price $3,095,000
Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047 www.AVBUYER.com
Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com
AVBUYER MAGAZINE Vol 24 Issue 12 2020
121
Aviatrade DHC8-315 November.qxp 18/11/2020 14:17 Page 1
S H O W C A S E
2005 DHC8-315 MSN 613 Serial Number: Airframe TT: Landings:
C-GIXF 5.425 7.337
• Offered exclusively for sale as is where is with a Canadian COFA • Fresh from major C check and fully technically refurbished • One of the last built Q300 for sale with extremely Low Time • Aircraft was used as a Corporate Shuttle for Oil Industry • Look like brand new • PW123E LH Engine AW0106 FRESH FROM OVERHAUL by PWC FHSN 5.373 FCSN 7.186 • PW123E RH Engine AW018 FRESH FROM OVERHAUL by PWC FHSN 5.459 FCSN 7.325 • APU Hamilton Sundstrand SP-E035170 TCSN 8.830lAst HSI 16 SEP 14 • Landing gears ALL FRESH FROM OVERHAUL • ALL PROPS FRESH FROM OVERHAUL PAINT ONGOING ARTIC WHITE
Equipment Manufacturer Dual Comm Allied Signal Dual Nav Allied Signal Dual AHRS Honeywell Dual DME Allied Signal Dual RMI Honeywell Dual Alt Honeywell Alt Alerter Sperry Dual ADF Allied Signal Dual Audio Cont Avtech Radar Allied Signal ELT Pointer Dual HSI Honeywell Dual FD Honeywell Stby Alt Aero Mech Dual Clock Davtrom Stby Art Horizon Sfena Radio Alt Honeywell GPWS Sundstrand DFDR Sundstrand FDAU Teledyne CVR Sundstrand Air Data Comp Honeywell TCAS Comp Allied Signal Dual Trans Mode S Allied Signal TCAS Controller Allied Signal Dual VSI/RA Indicators Allied Signal Dual Directional Ant Allied Signal
Part Number KTR902 KNR634 AHR600 KDM-706A D3137LB2-1C 4016341-905 7004577-903 KDF-806 01-01-61 RDS-86 4000 7001179-951 7001182-909 8047-10DH 73910193-001 H321ALM1 7001840-912 965-0476-088 980-4100DXUN 2228150 ANV557C 7000700-975 066-50000-8102 066-01127-1101 071-01503-3801 066-50002-8101 DMN4-7
Number 2 2 2 2 2 2 1 1 3 1 1 2 2 1 2 1 1 1 1 1 1 2 1 2 1 2 2
Other: All other equipment standard DHC-8
AVITRADE Albert-Frédéric Bloem Emmanuel Paillier
122 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
Mob: +32-475.621.539 Mob: +1 514 348 5589 a.bloem@avitradebelgium.com emmanuel.paillier@gmail.com
www.AVBUYER.com
SMS 2005 Bombardier Global Express November.qxp_Heeren Cit Ultra sep 18/11/2020 14:19 Page 1
S H O W C A S E
2005 Bombardier Global Express Serial Number: 9148 Registration: VH-LBU Airframe TT: 3892.7 Landings: 1222 Latest Model, Lowest Time, Global Express Available Batch 3.3 Avionics Upgrade Completed Enrolled on Rolls-Royce Corporate care, HoneywellL MSP, and Smart Parts Plus Exterior Repaint and Interior Refurbishment Completed November-2015 Increased MTOW to 98,000 LBS. (SB 700-11-016) 180 Month Insp’ Currently Underway (Ideal time for PPI) Engines Rolls Royce BR700-710A2-20 Left engine Right engine S/N: 12409 12410 THSN: 3,760.7 Hours 3,760.7 Hours TCSN: 1177 Cycles 1177 Cycles HSI DUE/OVERHAUL DUE On Condition PROGRAM COVERAGE RRCC APU Honeywell RE220(GX) Program Coverage Honeywell MSP Avionics & Connectivity EFIS (Electronic Flight Instrument System) 6Tube 8”x7” Honeywell DU-870 Color Displays FMS (Flight Management System) Triple Honeywell NZ-2000 GPS (Global Positioning System) Dual Honeywell GP-550
IRU (Inertial Reference Unit) Triple Honeywell Laseref IV MADC (Micro Air Data Computer) Triple Honeywell AZ-840 NAV (Navigation Radio) Dual Honeywell RNZ-851 DME (Distance Measuring Equipment) Dual Honeywell RM-855 EICAS (Engine Indication and Crew Alerting System) Single Honeywell ADF (Automatic Direction Finder) Dual Honeywell RM-855 RMU (Radio Management Units) Dual Honeywell RM-855 HUD (Heads Up Display) Single Thales VHF COM (Very High Freq. Communication) Triple Honeywell RCZ-833 w/8.33 KHz Spacing HF COM (High Freq. Communications) Dual Rockwell Collins HF-9031A Interior & Entertainment NUMBER OF PASSENGERS Sixteen (16) GALLEY LOCATION Forward FWD CABIN CONFIGURATION Four (4) Place Executive Club MID CABIN CONFIGURATION Four (4) Place Conference Group Opposite Two (2) place divan AFT CABIN CONFIGURATION Four (4) Place Conference Group Opposite Two (2) Place Club Exterior BASE PAINT COLOR(S) Matterhorn White STRIPE COLOR(S) Anthrocite Grey/Silver Grey LAST PAINTED DATE November-2015 Price: MAKE OFFER
SMS Aircraft Suite 1108, Level 11 St Kilda Road Towers 1 Queens Road, Melbourne Victoria, 3004, Australia www.AVBUYER.com
Tel: +613 9863 9550 Cell: +61 417 727 727 E-mail: gsvensen@smsaircraft.com www.smsaircraft.com
AVBUYER MAGAZINE Vol 24 Issue 12 2019
123
Qatar Executive December.qxp_Heeren Cit Ultra sep 18/11/2020 14:29 Page 1
S H O W C A S E
2009 Bombardier Challenger 605 Serial Number: Airframe TT: Landings:
5784 6084 2091
• Refurbished 2011 • 96 month • Has separate Medivac module which can be swapped out and installed from VVIP configuration. • FANS Compliant • ADS B complaint Airframe Certification Date: 28-Nov-2008 In service date: 01-Jul-2009
Engines Make & Model: General Electric CF34-3B ENG. #1 TT: 6059:02 ENG. #1 TC: 2089 ENG. # 2 TT: 6059:02 ENG. # 2 TC: 2089 APU HONEYWELL GTCP 36-150CL Avionics Rockwell Collins Pro Line 21 Advanced Upgrade Dual HF Comm. Rockwell Collins HF 9000 series Triple VHF Comm. Rockwell Collins VHF-4000 ELT: Artex C406-N Dual Rockwell Collins DME-4000 Dual GPS Rockwell Collins GPS-4000A Dual Rockwell Collins VHF Navigation NAV-4000
Interior Interior Refurbishment performed in August 2018 Passenger configuration: seats 12, abreast 2 Medevac configuration: seats 10, abreast 2, air ambulance module 1. Attendant seat: 1. Wardrobe: 1. Galley: 1. Lavatory: 1 Patient loading system allows patient to be raised into the aircraft using and electric drive system directly into the stretcher base, therefore crews do not have to physically lift the patient Aircraft comes with two stretcher systems Aircraft can be converted in 24hrs Exterior New Exterior Paint performed in September 2018 Location Middle East Please call
2011 Bombardier Challenger 605 Serial Number: Airframe TT: Landings:
5857 4803:14 1679
• Refurb 2017 • 96 month • FANS Compliant • Proline 21 Advanced Avionics Upgrade • ADS B complaint Engines Make & Model: General Electric CF34-3B ENG. #1 TT: 4804:57 ENG. #1 TC: 1696 ENG. # 2 TT: 4804:57 ENG. # 2 TC: 1697
APU HONEYWELL GTCP 36-150CL Avionics Rockwell Collins Pro Line 21 Advanced (Fusion Based) Link 2000+ capable ADS-B (out) 260B compliant ATN-CPDLC capability FANS 1/A + FANS over Iridium Dual HF Comm. Rockwell Collins HF 9000 series Triple VHF Comm. Rockwell Collins VHF-4000 Dual Rockwell Collins VHF Navigation NAV-4000 ELT: Artex C406-N Dual Rockwell Collins DME-4000 Dual GPS Rockwell Collins GPS-4000S Rockwell Collins TCAS TTR 4000, Change 7.1 Dual Rockwell Collins ATC Transponder TDR 94D Dual Rockwell Collins Radar Altimeter ALT-4000
Qatar Executive Captain Husam Khalil, QE A/EVP & VP Operations P.O. Box 22550 Qatar Airways Tower 3, 3rd Floor, Office #308 Doha, Qatar
124 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
Interior Passenger configuration: seats 12, abreast 2 Attendant seat: 1. Wardrobe: 1. Galley: 1 Lavatory: 1 Additional Equipment Cabin Entertainment System V7.4.5 Avionics System which includes airshow system, LCD controlled and dual multimedia players controlled through MSL touchscreen Aircell SBU Satcom Direct Thrane & Thrane Aircell Axxess II Airborne Telecommunication System – 2 Digital Enhanced Cordless Handset CAMP maintenance tracking Location Middle East Please call
Tel: +974 4022 1707 Mobile: +974 6645 5100 Email: qeevp@qatarexec.com.qa qevpo@qatarexec.com.qa http://qatarexec.com.qa www.AVBUYER.com
Vienna Jets 2012 Embraer Phenom 300 December.qxp_Empyrean 18/11/2020 14:49 Page 1
S H O W C A S E
2012 Embraer Phenom 300 Serial Number: Registration: Airframe TT: Landings:
101 EASA / D-CSAG 2090 2505
Honeywell Radio Altimeter DME / ADF HF / SELCAL Combined Cockpit Voice Data Recorder (CVDR) Flight Data Recorder (FDR) ELT Ice Detector SVS – Synthetic Vision System Electronic Checklist Electronic Jeppesen Charts – ChartView CPDLC
Right engine PCE-DG0191 2090 2505 5000
Interior 7+1 Passenger Executive Interior with Forward Seat, Club Seating and Two Forward Facing Seats in Rear Aft Belted Lavatory with Rigid Door and Lavatory Cabinet Seats in Tasteful Beige Leather with Complimenting Accents Airshow Cabin Display Screen Forward Wardrobe and Refreshment Center
ESP Gold EEC Enhanced WAAS/LPV ADS-B RVSM Engines S/N: Hours: Cycles: TBO:
Left engine PCE-DG0187 2090 2505 5000
Avionics Embraer "Prodigy" Garmin G1000 Avionics Three 12.4" Garmin Displays Garmin GFC-700 Automatic Flight Control System Dual Garmin Digital Air Data Computers Dual Garmin Integrated Avionics GIA-63w (WAAS) Dual Garmin Radio Modules (Including COM, VOR, ILS) Dual Mode "S" Transponder (ADS-B out) Dual Garmin GMA-1347D Audio Panels Garmin GDL-69A Sattelite Datalink Receiver Garmin GWX-68 Weather Radar ACSS - TCAS II
Exterior Attractive Overall White with Decent Red and Blue Stripes Options Premium Passenger Door Iridium Satellite Phone Heated Baggage Compartment Cockpit Sheepskin Covers, Smoke Goggles Cockpit Flood Light Sunvisors & Sunshades
Vienna Jets Thomas WIESER, Managing Director Kolschitzkygasse 2/18 1040 Vienna, Austria www.AVBUYER.com
Tel: +43 676 7217335 Email: sales@viennajets.com www.viennajets.com
AVBUYER MAGAZINE Vol 24 Issue 12 2020
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M A R K E T P L A C E
Gulfstream G550
The Ritchie Group Price:
Make Offer
Year:
2004
S/N:
5057
Reg:
-
TTAF:
9,380.1
Location: USA & Canada
Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com PRICE REDUCED. Well-Equipped & Ready for Immediate Delivery! Available at KSNA for Private Viewing. RAAS & SVS Upgrades. New Paint, Interior & Plating Completed at West Star Aviation February 2020. Rockwell Collins Venue Cabin Management System. 2020 Compliant! ASC 105C – ADSB V2 & DO-260B. ASC 84D – Enhanced Navigation to Include FANS Over Iridium & CPDLC. Universal Aft Galley w/Crew Compartment Seating Up to 14 Passengers. Enrolled on Rolls Royce Corporate Care®. Triple Honeywell FMS w/WAAS/LPV. Gulfstream Enhanced Vision System
www.jet-transactions.com
Bombardier Learjet 40XR
Tel: +49 (0)7403 914 0466 E-mail: sales@basjets.com
BAS GmbH Price:
USD $2.150.000
Year:
2007
S/N:
45-2080
Reg:
F-HPEB
TTAF:
3.650
Location: Europe
- Low time only 3.650 hrs - NDH - MSP Gold Engine Program - FDR/CVR/TCAS II (7.1) - Dual Universal FMS-1EW with LPV - ADS-B - Airshow 410 - Coffee Maker - Fresh C1-C6 and D1-D6 checks - Modern exclusive Carbon style Asking Price Net USD $2.150.000 / EURO 1.850.000* *plus VAT if applicable
www.basjets.com
Dassault Falcon 900EX
Price:
USD $7,300,000
Year:
1998
S/N:
28
Reg:
N721FH
TTAF:
13119
Location: Worldwide
Agusta A109A II
Tel: +33 (0) 630 703 018 E-mail: n721fh@gmail.com
Augusto Petit
KLASSEN AVIATION
In absolute turn-key condition! Engines & APU on MSP Gold. Equipped with API winglets, Auto-throttles, FANS 1/A, CPDLC, ADS-B, WiFi, new CD-830 CDU FMS W/6.1 soft., WASS/LPV, Global Satcom. CAMP Maint. Program, Dry bay mode compliant, No Known Damage History. Classic interior in perfect conditions, forward galley equiped with Nesspreso machine, Convective Oven, Glassware and multiple storage cabinets, private wine cellar. Crew Jump Seat, Aft and Fwd Lavatories, 220v outlets. Total landing: 5238. APU: on MSP GOLD 7752 TT
Tel: +49 (0) 291 952 7570 E-mail: info@klassen-aviation.com
Price:
€149,000 Excl. VAT
Year:
1987
S/N:
7387
Number of engines: 2 Make/Model: Allison 2502C20B Allison 2502C20B Serial No.: CAE-835915 CAE-835916 Total Time: 2444 h 2444 h
Reg:
D-HLCC
PRICE REDUCED
TTAF:
2444
Location: Germany
Airbus H125
H2I HELICOPTERS Price:
Please Email
Year:
2019
S/N:
from 4569 to 8688
Reg:
F-XXXX
TTAF:
100h to 2500h
Location: France
126 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
Tel: +33 (0) 617 675 405 E-mail: sales@herreos.eu Lease your H125 / AS350 B3 here! H2i Helicopters is one of the biggest professional worldwide operational-leaser specialized with single engine helicopters. We are flexible : you can rent/lease a helicopter from H2I for the set duration and number of hours you need : We are able to rent you choppers since few months to several years! Our own fleet consist of 18 AIRBUS HELICOPTERS (so far) : 17 SQUIRREL (ASTAR) + 1 COLIBRI. Our fleet is recent : 11 Airbus Helicopter AS350B3e / H125 : YOM from 2012 to 2019. 5 Eurocopter AS350B3+ : YOM from 2008 to 2011. 1 Eurocopter AS350 B2 YOM 2008. 1 Eurocopter EC120b YOM 2003 The whole fleet is dedicated to lease (we are not an operator)
www.AVBUYER.com
P126-127.qxp 18/11/2020 14:50 Page 2
Airbus/Eurocopter EC 145
Nigel Watson Price:
Please call
Year:
2009
S/N:
9242
Reg:
M-LUNA
TTAF:
1455
Location: France
Airbus/Eurocopter AS 365N-3
Nigel Watson Price:
Please call
Year:
2008
S/N:
6815
Reg:
M-LVIA
TTAF:
955
M A R K E Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 T E-mail: emma@nigelwatson.im P L Only 1455TT, 7 passenger VIP Cabin, blue and silver paint. A Has exclusively been for VIP operation. C Available from November 2019. Full valuation report and E equipment lists available to interested parties. Well maintained; airworthy & operational; fresh annual 9/20. Fully enrolled on PBH and SBH since new. Eng #1 - 1455h; Eng #2 - 1449h. Proposals for refurbishments to paint and interiors available www.nigelwatson.im/brokerage/ec145
Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 E-mail: emma@nigelwatson.im 5 passenger VIP Cabin, blue and silver paint. Has exclusively been for VIP operation. Immediately available to view. Full valuation report and equipment lists available to interested parties. Well maintained; airworthy & operational with no damage history; fresh annual 4/19. Fully enrolled on PBH and SBH since new. Eng #1 - 3240h; Eng #2 - 955. Proposals for refurbishments to paint and interiors available.
Location: France
Hughes OH-6
Phil Connolly Price:
USD $500,000 No VAT This historic aircraft from the Vietnam war is of significant importance
Year:
1969
S/N:
301381
Reg:
G-OHGA
TTAF:
-
Location: United Kingdom
McDonnell Douglas Helicopter 500E Anthony Draper
to the history of Helicopters. This helicopter is on the UK CAA Register will be sold with its current “UK Permit to Fly”. The Helicopter was previously Flown on the FAA “Experimental Category” It was carefully restored to its original US Army Livery including replica M134 mini gun and is in stunning condition. Upgrades and modifications over standard OH-6A: Engine upgraded to 420 SHP Rolls Royce Allison T63 engine, with STC. This helicopter has been kept in dual control configuration and all component times are excellent. Manuals and ground handling equipment are available www.facebook.com/hueyhelicopteruk
Tel: +44 (0)787 680 1006 E-mail: anthony.draper@me.com
Price:
$1,450,000 Excl. VAT Beautifully refurbished MD500e. Completed in 2018 with
Year:
2002
S/N:
0563E
Reg:
G-MDDE
TTAF:
4465
Location: United Kingdom
Airbus H125
Tel: +44 (0)1772 687 775 E-mail: sales@huey.co.uk
Lloyd Helm
custom designed paint and interior. Always hangared and well maintained. The aircraft has been valued at $1.45m, however we are accepting sensible offers. Airframe: Equipment Dual Controls. Bristol Wire-strike Kit (Upper and Lower). Passenger Flight Steps. Sliding Vent Windows (Front). Pop Vent Windows (Rear). Fargo Auxiliary Fuel System. Particle Separator APM. Avionics: Aspen EFD1000H with traffic unlock. Garmin GTN750H GPS/nav/com. Garmin GTX345 ADS-B transponder. Garmin GTS800 traffic awareness system. Int: Beautiful Internal Farnborough Interiors Luxury Interior - Completed 2018
Tel: +44 (0)786 676 8376 E-mail: 5hundred.lh@gmail.com
Price:
£1,699,000 Excl. VAT One owner only two pilots fabulous aircraft. Avionics: Garmin
Year:
2015
S/N:
8114
Reg:
GLEOG
TTAF:
1000
GTN Nav. Garmin 350 radio. Interior: 5 or 6 seats with front impact. Exterior: Black metallic with cream stripe. Additional equipment: Helisas and Autopilot
Location: United Kingdom
www.AVBUYER.com
AVBUYER MAGAZINE R Vol 24 Issue 12 2020 R
127
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M A R K E T P L A C E
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Leonard Hudson Drilling
Bombardier Learjet 36A
Price:
Offer/Trade
Year:
1977
S/N:
36A-030
Reg:
N160GC
TTAF:
15,600
Learjet 36A, Long range capability, as configured 2,400 nautical miles. Can be upgraded to 2,600 mile range. Recent paint and interior, RVSM. 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
Robinson R66
Price:
€350,000 Excl. VAT
Year:
2014
S/N:
0553
Reg:
HB-ZOK
TTAF:
1900
Location: Switzerland
Alberth Air Parts
Tel: +41 (0) 796 099 413 E-mail: christoph.graf@mountainflyers.ch
Mountain Flyers 80 Ltd
+1 832 934 0055
Spare Parts
December 2014 manufactured and registered as first new Robinson R66 in Switzerland. 2014 in operation for sightseeing flights and flight school. No damage history. Always hangered. From beginning in CAMO of swiss operator. New Aspen Avionices EFD1000H Pro (with HSI) Display / changed September 2019. ***We are very motivated to sell the Helicopter due to a change of fleet!*** Airframe: Exterieur Base Color Red. Windshield, Standard. Door Windows, fwd, clear. Door Windows, aft, clear. Engines: Rolls-Royce RR300. Avionics: FD, Aspen Avionices EFD1000H Pro (with HSI). COM2:Garmin GTR 225B. Com1:Garmin GPS/COM/NAV GTN 750. Garmin GMA 350 H Audio Panel. Artificial Horizon, LCD, Kelly Mfg RCA2600-3 with Slipskid. PRICE REDUCED
Par Avion Ltd FALCONS • HAWKERS • LEARS
•BUY •SELL •TRADE CESSNA LEARJET HAWKER WESTWIND FALCON GULFSTREAM
www.alberthaviation.com
www.paravionltd.com SALES • ACQUISITIONS • CONSULTING
Fax: +1 832 934 0011 128 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
www.AVBUYER.com
P129.qxp 19/11/2020 11:43 Page 1
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
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Airline Transport Professional........................... 79
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Aradian Aviation ................................................ 105
Global Jet Monaco........................................ 5 - 10
Qatar Executive................................................. 124
Avitrade ............................................................... 122
Hatt & Associates ............................................... 27
Saudi International Airshow ........................... 115
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SMS Aircraft ...................................................... 123
Bose .................................................................... 101
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Sun King Diamond Coating.............................. 75
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JETNET............................................................... 109
The Jet Business......................................... 24 - 25
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The Private Jet Company................................... 87
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Leading Edge Aviation Solutions..................... 85
Vienna Jets ......................................................... 125
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Wright Brothers Aircraft Title............................ 81
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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AVBUYER MAGAZINE R Vol 24 Issue 12 2020 R
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Aircraft For Sale • AIRCRAFT • HELICOPTERS
AIRCRAFT
PAGE
AIRBUS
AIRCRAFT
PAGE
AIRCRAFT
PAGE
AIRCRAFT
PAGE
GULFSTREAM
PIPER
IV . . . . . . . . . . . . . 13 IVSP . . . . . . . . . . 85, 105 V. . . . . . . . . . . . . . 44, 67, 105 100 . . . . . . . . . . . 132 150 . . . . . . . . . . . 91 200 . . . . . . . . . . . 13, 33 280 . . . . . . . . . . . 131 450 . . . . . . . . . . . 5, 15, 41, 63, 105 500 . . . . . . . . . . . 85, 119 550 . . . . . . . . . . . 5, 21, 63, 132 650 . . . . . . . . . . . 5, 13, 15, 25, 63, . . . . . . . . . . . . . . . 126, 132 650ER. . . . . . . . . 5, 15
Cheyenne IIIA . . 91
BBJ . . . . . . . . . . . 14 BBJ2 . . . . . . . . . 5 BBJ3 . . . . . . . . . 14, 32 737-200 . . . . . . . 45 737-300 VVIP . . 45 787-8 . . . . . . . . . 132 787-8 VIP . . . . . . 14
XLS . . . . . . . . . . . . 49 XLS+ . . . . . . . . . . . 39, 53, 85, 105 CJ2+ . . . . . . . . . . . 13, 35, 49, 132 CJ4. . . . . . . . . . . . 12, 120 Bravo . . . . . . . . . 63 Excel . . . . . . . . . . 12, 67 GrandCaravanEX 33 Jet . . . . . . . . . . . . 21 Mustang. . . . . . . . 39, 57 Sovereign. . . . . . 49, 53, 132 340A RAM VI . . . 53 T206H . . . . . . . . . 91 T201N . . . . . . . . . 91 Ultra . . . . . . . . . . . 12 500 . . . . . . . . . . . . 91 510 Mustang . . . 57
CIRRUS
King Air
BOMBARDIER
SF50 . . . . . . . . . . 57
Global 5000 . . . . 29, 32, 35, 132 Global 6000 . . . . 5, 7, 13, 24, 32, 85, . . . . . . . . . . . . . . . 132 Global 7500 . . . . 63 Global Express . 10, 123, 132 Global Express XRS. 8, 9, 24, 132
DASSAULT FALCON
A318 Elite . . . . . 5 A319 VIP . . . . . . 5 VVIP A340 . . . . . 45
ATR 72-500 . . . . . . . . 45
BOEING/MCDONNELL DOUGLAS
Challenger 300 . . . . . . . . . . . 5, 13, 21, 32, 41, 67, 601 3A . . . . . . . . 63 601 3A/ER. . . . . 20, 39 604 . . . . . . . . . . . 132 605 . . . . . . . . . . . 5, 13, 32, 38, 63, . . . . . . . . . . . . . . . 124, 132 650 . . . . . . . . . . . 32
Learjet 31A . . . . . . . . . . . 91 36A . . . . . . . . . . . 128 40XR . . . . . . . . . . 38, 126 45 . . . . . . . . . . . . 63 45XR . . . . . . . . . . 27, 29, 121 50 . . . . . . . . . . . . 91 55 . . . . . . . . . . . . 91 60 . . . . . . . . . . . . 63, 132 60SE . . . . . . . . . . 131 75. . . . . . . . . . . . . 33, 132
CESSNA Citation II . . . . . . . . . . . . . 91 III . . . . . . . . . . . . . 91 X . . . . . . . . . . . . . 29, 34, 39, 57 X +. . . . . . . . . . . . 13
7X . . . . . . . . . . . . 3, 5, 6, 15, 131, 132 20F-5BR . . . . . . . 49 50-4. . . . . . . . . . . 44 50EX . . . . . . . . . . 91 900B . . . . . . . . . . 33, 132 900C . . . . . . . . . . 131 900DX. . . . . . . . . 67 900EX . . . . . . . . . 44, 126 900EX EASy . . . 3, 33, 63 900LX . . . . . . . . . 33, 132 2000 . . . . . . . . . . 67, 91 2000EX EASy . . 33, 38, 131 2000LXS. . . . . . . 2
DE HAVILLAND DHC8-315 . . . . . 122
HAWKER BEECHCRAFT 200XPR . . . . . . . 91 350 . . . . . . . . . . . 53 350i . . . . . . . . . . . 27 B200 . . . . . . . . . . 41, 91 G1000. . . . . . . . . 91
Beechcraft 1900D . . . . . . . . . 41 B60Duke . . . . . . 91 Duke . . . . . . . . . . 91 D175 Staggerwing. P58 Baron . . . . . 91 Premier IA . . . . . 85
Hawker 400A . . . . . . . . . . 29, 91 400XP . . . . . . . . . 21 800XP . . . . . . . . . 13, 87 850XP. . . . . . . . . 87 4000 . . . . . . . . . . 27, 87
HOWARD 500 . . . . . . . . . . . 131
EMBRAER
IAI
Legacy 500 . . . . 24 Legacy 600 . . . . 12, 13, 44 Legacy 650 . . . . 5, 12, 13 Lineage 1000 . . 12 Lineage 1000E . 131 Phenom 100 . . . 33 Phenom 300 . . . 12, 63, 105, 125
Astra 1125SP . . 131
SOCATA TBM 700A . . . . . 131 TBM 700B . . . . . 53 TBM 850. . . . . . . 49
HELICOPTERS AIRBUS/ EUROCOPTER AIRBUS . . . . . . . 131 AS 365N. . . . . . . 127 EC 120B . . . . . . . 105 EC 130B4. . . . . . 29 EC135T2 . . . . . . 41, 105 EC145. . . . . . . . . 127 H125 . . . . . . . . . . 127
AGUSTAWESTLAND AW109A II . . . . . . 126 AW109MKII . . . . 97 AW109C. . . . . . . . 97 AW109 Power . . 97 AW109S Grand. 13, 97 AW109S GrandNew. AW109SP. . . . . . 97 AW139 . . . . . . . . . 97
BELL 206B3 . . . . . . . . 41 212 . . . . . . . . . . . 128 412EMS . . . . . . . 128
HUGHES OH-6 . . . . . . . . . . 127
MD 500E . . . . . . . . . . 127
NEXTANT
ROBINSON
400XTi . . . . . . . . 29
R66 . . . . . . . . . . . 128
PIAGGIO P180 Avanti . . . . 41
FAIRCHILD - DORNIER Dornier 328-310 . 39 Metro III . . . . . . . . 39
PILATUS PC24 . . . . . . . . . . 13
The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet
Copy date for the January 2021 Issue - Wednesday 9th December 2020
130 Vol 24 Issue 12 2020 AVBUYER MAGAZINE
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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
2004 Falcon 900C SN199
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
Primus 2000XP Avionics Suite, Triple IRS, Aircell ATG 4000, Honeywell SATCOM, FANS-1A/CPDLC, WAAS/LPV, ADS-B Out
2019 Airbus Helicopter SN8528
2003 Falcon 2000EX SN14
Loaded Optional & Additional Equipment (Total Costs $1,631,600 USD), Factory Airframe Warranty through: July 18th, 2022, July 2019 In-Service Date, only 125 hours, Genesys Helisas Autopilot, Aerodynamix Navigation STC, Churchill Navigation ARS700GP Moving Map w/ DVR
ProLine 21 Avionics Upgrade, All new soft goods throughout with Led wash lights, all plating is new. The interior of all drawers were redone to match new colors throughout the aircraft. Synthetic Vision System, Electronic Charts, FANS 1/A, CPDLC, ADS-B Out V2, WAAS/LPV, Gogo Advance L5 WIFI, ESP Gold, MSP Gold, CASP, 10 PAX Configuration (Preferred)
2005 Lear 60SE SN282
Astra 1125SP SN048
Artex 406 ELT w/ Nav Interface, WX 1000E Stormscope, Lightning Detection System, Ice Detection System, Extended baggage space, WAAS/LPV, Collins ADS-B Out
Exceptional Pedigree, Airshow 410, Extension Fuel Tanks, External Lav Service, Increased Gross Weight Mod, AirCellST3100 Iridium Radio Telephone
Howard 500 SN5560
Socata TBM 700A SN132
Arguably The 1st ever Business Aircraft, Chance to Own the Original Classic
TAWS, Garmin GMX-200 multi-function display w/ChartView & datalink, King KMA-24 audio panel, King KAS-297C altitude preselector, Argus 5000CE moving map
www.cbjets.com
The smoothest connection to your next aircraft.
1990 DASSAULT FALCON 900B S/N 78 • 13,632 Hours; 8,482 Landings • Engines & APU on MSP Gold • Recent C-Check
2016 DASSAULT FALCON 7X S/N 269
A passionate team of aviation experts, our strategic approach and action-oriented thinking have made us the global leader for aircraft sales and ownership services. With our worldwide network and inventory, industry connections and regional presence, we are the difference between getting an aircraft… and getting your aircraft.
• 1,590 Hours; 1,116 Landings • Engines & APU Enrolled on JSSI • 12 Passengers
2012 BOMBARDIER GLOBAL 5000 S/N 9449
2001 GULFSTREAM G100 S/N 139
• 1,839 Hours; 1,099 Landings •E ngines & APU Enrolled on JSSI •C rew Force Measurement System
• 4,855 Hours; 2,761 Landings • Engines on MSP Gold • ADS-B Out, WAAS/LPV
ALSO AVAI L ABLE 2012 BOMBARDIER GLOBAL 6000 S/N 9463 • 2,124 Hours; 546 Landings • Part 135 Compliant • Swift Broadband
2007 CITATION SOVEREIGN S/N 680-0154 • 4,769.75 Hours; 3,841 Landings • One Owner Since New • No Damage History
2014 BOEING 787-8 2000 CHALLENGER 604 2007 CHALLENGER 605 2016 CHALLENGER 650 2015 GLOBAL 5000 2018 GLOBAL 6000 2003 GLOBAL EXPRESS 2010 GLOBAL XRS 2009 CITATION CJ2+ 2014 CITATION X+ 1997 FALCON 900B 2009 FALCON 900LX 2004 LEARJET 60 2019 LEARJET 75 2011 GULFSTREAM G550
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