FC January JetHQ.qxp_FC December 06 16/12/2020 11:40 Page 1
Volume 25 Issue 1 2021
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ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
See pages 12 & 13 - 44 & 45 for further details
THIS MONTH
Tips for Buying & Selling Jets in 2021 How to Understand Aircraft Financing for 2021
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Jet Comparison: Gulfstream G500 vs Bombardier Global 5500
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Editor Welcome.qxp_JMesingerNov06 17/12/2020 09:05 Page 1
Guest Editor’s VIEWPOINT
Shawn Hall, Signature Flight Support
Unlocking the Potential of BizAv y all accounts 2020 was a monumental year (it’s great to write that in the past tense). The year included a global pandemic, a contentious election, a recession, social unrest, and more. Regrettably, however, these issues do not follow a calendar schedule and will not magically subside in 2021. There is, however, at least light at the end of the tunnel for some. Like many cataclysmic events, there is the potential that 2020 helped speed along slowermoving shifts and even reversed decades-long trends. Take, for example, the acceleration of remote working, and even a reversal of migration to dense urban centers, as possible outcomes of 2020. Closer to home, key indicators suggest that private aviation has received an injection of newfound awareness and utilization from a much larger percentage of the population. Time will tell whether this boon grows further or subsides, but the scene is set for growth.
B
Step-Change Potential for BizAv
The year 2020 saw an inflow of ‘new entrants’ into private aviation. Demand for safer alternative air travel solutions found an outlet in private aviation. As expected, most of these new entrants are turning to fractional and charter options, and charter operators report that up to 50% of their passengers are first-time fliers. Rough math indicates this uptick represents just a small slice of the potential private jet flyers. A McKinsey & Co. study released earlier in 2020 stated that only 10% of people with the net worth required to fly privately are doing so. Additionally, fractional and charter operators are continually releasing new products with lower price points into the market that make private aviation accessible to an exponentially larger set of potential flyers. Played correctly, private aviation has the potential for step change growth in the near-term future.
Looking further ahead, exciting advancements in electric aircraft have potential to bring even more travelers into private aviation. Ten to 20 seat electric aircraft could satisfy latent demand for 200-mile road trips. While the US does not have the rail infrastructure seen in other parts of the world, it does have a vast network of airports. Using the airline metric of Cost per Available Seat Mile (CASM), efficient aircraft have the potential to unlock a new option for travel. And, looking further into the future, electric Vertical Takeoff and Landing (eVTOL) aircraft could potentially open access into even more locations where airports do not exist. The next 5-10 years may see a much larger percentage of the population looking upward when they think about mobility.
Unlocking the Potential
There is a thread that runs through this article – potential. The conditions are set for growth, but real work is required to unlock that potential. The Signature team has been diligently at work behind the scenes, even through 2020, with this future vision in mind. Much we are doing on our own (e.g., investments in new locations like Geneva and Sion to grow the network beyond our current 200+ scale, and investments in talent development for our people). But much is also being done collaboratively with partners who share our vision. Some are in the public domain, while others have yet to be announced. And there is the key: Achieving a future where a much larger set of the population enjoys frictionless access to the third dimension will require strong partners, courage, and a new mindset. So, while 2020 was about sheltering in place, let 2021 be a year to collaboratively forge a brave new future for private aviation. More information from www.signatureflight.com ❙
Shawn Hall is the Chief Commercial Officer for Signature Flight Support with global responsibilities over all commercial functions and strategic initiatives. Before taking the CCO role, Shawn oversaw strategy and business development for the BBA Aviation portfolio and, before that, was an Associate Partner at McKinsey & Co.
4 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
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Contents Layout DEC.qxp 16/12/2020 12:37 Page 1
Vol.25 Issue 1
Contents
2021
4 14
38
Guest Editor
Shawn Hall, Signature Flight Support
Market Indicators
Trends and Observations from Leading Business Aviation Analysts
Market Insights
Used Aircraft Sales Trends: What Does 2021 Hold?
46
Interview With Jay Duckson, Central Business Jets
50
What’s the Latest on the Bombardier Global Jet Markets?
54 58 68 72 76 80 88 92 96
Buying & Selling Aircraft
Tips for Buying & Selling Jets in 2021
Finance
How to Understand Aircraft Financing for 2021 Tips for Financing BizJet Upgrades & Refurbishments
Charter
Is Private Charter Really so Expensive? Charter vs Airlines How to Choose the Right Jet Card
Jet Comparison
Gulfstream G500 vs Bombardier Global 5500
Aircraft Price Guide
Large Jet Aircraft Values
Flight Department Management
Integrate the Right Jet Into Your Flight Department (Pt 1)
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
Community News
Emma Davey emma@avbuyer.com
103
Showcases
114
ADVERTISING Steve Champness - Publisher Americas +1 770 769 5872 steve@avbuyer.com
AVBUYER.COM Jayne Jackson jayne@avbuyer.com
OEM News and Industry Appointments
113
Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com
Minimum Equipment Lists: How to Prepare, Update and Train
100 110
EDITORIAL Commissioning Editor Matthew Harris +44 (0) 20 8939 7722 editorial@avbuyer.com
Marketplace Advertisers Index Aircraft for Sale Index
Next Month - MRO Special Edition, including: • Overhaul FAQs, Answered by the Experts
• Connectivity Priorities for MRO Downtime
• Cabin Refurb: Your Chance to Set the Right Tone
Other February Features
• Making Fuel Cards Work for You
• Cessna Citation Market Update (Light Jet Models)
• Buying Older Jets – How Old is Too Old?
10 Vol 25 Issue 1 2021 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
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MARKET INDICATORS
Business Aviation Market Overview Beginning a New Year, many harbor hopes of brighter horizons in Business Aviation. But what does the reality look like? Brian Foley shares his 2021 Business Aviation Outlook (Hint: Aviation professionals already have a good idea)… viation industry participants have recently proven to the world something they’ve had all along: An uncanny ability to articulate how their respective segments of the market are performing, and what the future trajectory will be. An avalanche of complimentary Zoom conferences during 2020 have allowed representatives from preowned aircraft sales, private jet charter, aircraft finance, aircraft management, legal, and others to take center stage and eloquently share their views with large,
A
14 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
international audiences. In ‘normal’ times, opportunities for these oracles to share these perspectives are much more limited, with only a handful of key industry conferences scheduled each year and smaller audiences due to the logistics that in-person attendance presents. Processing these first-hand accounts can assist in making predictions about how 2021 will shape up for the Business Aviation industry, which by the looks of things shouldn’t be too bad…
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AVBUYER.com
Brian Foley formed Brian Foley Associates (BRiFO) in 2006 to assist aerospace firms and investors with strategic research. In addition to his work as Market Intelligence Editor, AvBuyer, he is a regular contributor for Forbes.com and his views are published in the media worldwide. 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/
Utilization
A favorite metric of the industry, utilization measures business aircraft activity, usually by the number of takeoffs and landings, or hours flown. This figure is of most interest to those businesses that rely on flight frequency and volume (such as FBOs selling fuel, MROs performing maintenance and charter firms flying clients). It also measures private flyers’ general propensity to fly. Usage has been hovering around 15-20% below the prepandemic levels. It’s safe to say that with a vaccine now on the immediate horizon, 2021 will see an improvement in activity as sports events get back on flight itineraries, holidays are celebrated in groups, and business trips slowly resume. While it’s possible that some days or weeks coming this year will surpass previous ‘normal’ levels, a full recovery isn’t anticipated before 2022. The work-from-home habit will never completely go away, but should diminish with time.
Pre-Owned Pricing and Inventory
It could be argued that too much time is spent slicing, dicing and making clever observations on the direction pre-owned pricing and inventory is taking. But taking a subjective look at things, the long-term trend has been a fall and flattening in both price and inventory. From a buyer’s perspective, the risk of prices drastically falling or inventory exploding is unlikely. It’s not believed that the situation will be significantly different a year or two from now.
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The ‘downside aircraft value’ risk of buying a used aircraft is unlikely to materially change in the coming months, and dithering over whether to buy will only delay an immediate private air travel benefit.
Pre-Owned Sales
When the final numbers are in, it’s expected that 2020 used transactions will have been on par with 2019, a remarkable accomplishment given the challenges thrown at the industry. At this point in time there is no reason to believe that 2021 will not be another active year, with things like low interest rates, rising GDP, recovering stock markets, US tax benefits, and new users still wanting to avoid commercial air travel (despite a vaccine) all helping.
New Sales
While new business jet deliveries are expected to have ‘cratered’ 25-30% in 2020, my 2021 forecast anticipates 15% more deliveries than last year. While this is normally one of the more conservative forecasts in the industry, it may have to be revisited by observing the healthy activity in the pre-owned arena. Usually a rising tide lifts all boats, and what was good for pre-owned sales should consequently translate to more robust new aircraft sales, eventually. MI www.brifo.com
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MARKET INDICATORS
AVBUYER.com
Jetcraft: Pre-Owned BizJet Transactions Set to Grow In November, Jetcraft released its Five-Year Pre-Owned Business Aviation Market Forecast. Company President Chad Anderson provides a summary for AvBuyer.... Drawing upon nearly 60 years of industry knowledge, Jetcraft has prepared its latest forecast using a mix of quantitative and qualitative techniques. This time around, we are focusing our predictions solely on the pre-owned Business Aviation market, an area often excluded from other industry outlooks, and which is a particular strength of ours. Moreover, for the first time, our forecast is enriched by the introduction of trends from our own past transactional data and customer insights. The report predicts 10,183 preowned transactions to be completed over the next five years, representing $48.8bn in value. During the five-year period we will see pre-owned transaction volume and value recovering to steady growth, despite the challenges of the past year, reaching 2,271 pre-owned transactions worth $11.1bn annually by 2024. This is a healthy level of growth that Jetcraft believes is sustainable and achievable. In our previous forecasts, we predicted a downturn. Although it has taken place sooner than we thought, we were prepared and, as a result, are in a much stronger position than we were in 2008, the last big downturn for our industry. Circumstances now are very different from that balloon economy time, the aircraft OEMs have a balanced supply chain that doesn’t let aircraft values get out of sync, which, in turn, fosters a healthy pre-owned market.
Value Realized in 2020
In 2020, we’ve seen the value of our industry further realized. With minimized commercial airline schedules and flights, Business 16 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Aviation has become more attractive to several first-time users. Offering flexibility and control, flying privately is now being prioritized due to its ability to reduce passenger touchpoints, limiting contact with others at the airport and during flight. While many entrants to the industry may first experience Business Aviation through charter, fractional or jet card solutions, once exposed to this form of travel, the path to ownership begins. From June 2020 onwards flight hours and private jet transactions picked up as initial Covid-19 restrictions eased and lockdowns lifted. While the year was stop-andstart for travel, Q4 2020 was as busy as Q4 2019 for Jetcraft, with regards to transactions, and we’re confident that the start of 2021 will continue this positive trend. Business Aviation is resilient, and our forecast shows it has begun to stabilize from the effects of Covid-19. Furthermore, trends in international trade activity bode well for industry growth.
Large Jet Market Potential
Globalization is not going away; the World Trade Organization is still forecasting international trade will increase in 2021. And the number of Ultra-High-Net-Worth Individuals (UHNWIs), another key driver in Business Aviation transactions, is set to grow by 5% per annum until 2024. Our own transaction data shows 81% of our buyers under 50 years old purchase Large Jets, and that High Net-Worth buyer types are more likely to invest in this aircraft segment as compared to Corporations and Governments, who may face closer scrutiny over budgets and travel spend. If you are a tech entrepreneur or CEO who has been successful at a young age, you're more likely to buy a Large Jet because it fits with your lifestyle and the global nature of your business. These trends truly
CHAD ANDERSON,
PRESIDENT, JETCRAFT
demonstrate the potential of the Large Jet category, which remains poised for long-term growth.
In Conclusion…
The strength and ingenuity that Business Aviation has demonstrated throughout this pandemic provides us with confidence for the future. We’ve all had time to reflect on how we travel, and what it means to us. Faceto-face meetings will still be important, long after this is over, and Business Aviation has a big role to play in developing those relationships. MI www.jetcraft.com/knowledge/ market-forecast/
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MARKET INDICATORS
AVBUYER.com
Flight Activity - Global Review
Almost 60,000 fewer Business Aviation sectors were flown globally in November 2020 compared to November 2019, according to WingX Advance. That represents a Year-overYear (YoY) decline of 17% - modestly worse than October’s YoY trend. For business jet and turboprop activity, November proved to be a variable month with a big dip in the first two weeks, and then a Thanksgivingpowered recovery in the second half. The improved North American trend divered from a weaker European market. Elsewhere in the world: • • • •
Business Aviation flight activity across Asia in November was within 5% of normal; Activity was above normal for Oceania; Robust overall activity was seen in South America; and An improving 9% deficit for flight activity was recorded in Africa.
North America
The four-day Thanksgiving period saw 33,227 Business Aviation departures in the US, a decline of just under 10% compared to Thanksgiving 2019. That
20 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
compares to a 16% YoY decline during the rest of the month. Within the US: • • • •
Arizona and Colorado stood out with almost 10% growth in arrivals during Thanksgiving. Oregon, Indiana, Wyoming, and Utah all saw substantial YoY growth. Flight departures out of the Dakotas was up more than 30%. Notably, Business Aviation activity out of Florida was down 9% during Thanksgiving (though Florida activity was up by 3% for the full month).
Thanksgiving in Canada took activity to within 6% of normal there – much stronger than the 20% shortfall recorded in October.
Europe
In Europe, the biggest markets were suffering the most, with UK flights down by half, YoY, for November. Business Aviation activity in Germany – which grew YoY in August – was down by over 30%, and Italy has been badly affected by second Lockdown (flights were down by 36%).
France is less affected (relatively speaking), and flights were down 21% YoY in November. Meanwhile flights from Switzerland, Norway and Sweden were all within 10% of normal YoY. The outliers continued to be Russia, Turkey, and Greece, and activity was well up compared with November 2019. “Just as the US airlines saw the busiest traffic since March during Thanksgiving, Business Aviation activity also climbed close to its pandemic peak, lifting the overall trend for November,” summarized Richard Koe, Managing Director, WingX. “The resulting impact of crowded airports on virus infections may influence ongoing travel behaviour, with renewed spikes persuading more newcomers to fly private as a health precaution. “In Europe, the dynamic variations in lockdown 2.0 were clearly suppressing flight activity, especially in Western Europe,” he concluded, adding that “in Eastern Europe, Russia and Turkey, lighter restrictions and larger domestic geography encouraged a much stronger recovery during November.” MI www.wingx-advance.com
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ONE PRIVATE OWNER SINCE NEW – NEVER CHARTERED, VERY LOW TOTAL TIME – ONLY 3,134 HOURS, FORWARD GALLEY, ENHANCED NAVIGATION INCLUDING WAAS, LPV, FANS-1/A+, ADS-B OUT & CPDLC, SYNTHETIC VISION (SV-PFD), HEAD-UP DISPLAY (HUD) AND EMERGENCY VISION ASSURANCE SYSTEM (EVAS), HONEYWELL AVIONICS PROTECTION PLAN (HAPP) AND MAINTENANCE PROTECTION PLAN (MPP), SECURAPLANE WITH THREE EXTERNAL CAMERAS, ALWAYS HANGARED, ALL MAINTENANCE AT GULFSTREAM AEROSPACE DALLAS
2005 GULFSTREAM G550 SERIAL NUMBER 5058 – REGISTRATION N2480H
ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, CUSTOM 14 PASSENGER FLOORPLAN BY GULFSTREAM SAVANNAH IN 2009, AFT GALLEY & FORWARD CREW REST, U.S. REGISTERED / FAA PART 135, ADS-B OUT, FANS-1/A, CPDLC, BROAD BAND MULTI-LINK (BBML) HIGH SPEED DATA WITH GEN 2.5 SERVER (YONDER SERVICE), SWIFT BROADBAND, 12 MONTH / 500 HOURS INSPECTION C/W FEBRUARY 2020
2011 DASSAULT FALCON 900LX SERIAL NUMBER 256
ENGINES AND APU ON HONEYWELL MSP GOLD, AVIONICS ON HONEYWELL HAPP, FANS, CPDLC-ATN B1, LPV/WAAS, ADS-B OUT V2, WIFI, FOURTEEN SEATS APPROVED FOR TAKE OFF AND LANDING
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MARKET INDICATORS
AVBUYER.com
Table A
In-Service Aircraft Values & Maintenance Condition Monthly transactions continued to close at the end of 2020 just as one would expect during a normal Q4. Asset Insight’s November 30th market analysis provided the statistical evidence… Covering 134 fixed-wing models, and 2,111 aircraft listed for sale, Asset Insight’s data showed available inventory had decreased an additional 2.9% during November, equating to a drop of 3.3% Year-to-Date (YTD) for 2020. Large Jet inventory rose a nominal 0.4%, but was the only group to register an increase. Meanwhile Mid-Size Jets, Light Jets, and Turboprops all registered further reductions of 3.9%, 3.3%, and 4.6%, respectively.
Aircraft Values
The tracked fleet’s average Ask Price decreased for the first time in three months, but only by 0.9% (following October’s 12-month high), resulting in an Ask Price increase YTD of 0.8%. All four groups contributed, with Large Jet prices falling 3.4%, Mid-Size Jets decreasing 1.6%, Light Jets 3.0%, and Turboprops 1.5%. Inventory Fleet Maintenance Condition Overall buyer interest in lower quality assets improved the inventory fleet’s asset quality in November, and, while Maintenance Exposure increased, the rise was nominal. Asset Insight’s tracked inventory recorded the following… •
•
The Quality Rating posted its second consecutive 12-month high figure, 5.371, continuing the fleet’s run within the ‘Excellent’ range throughout 2020 on Asset Insight’s scale of 2.5 to 10. Maintenance Exposure, an aircraft accumulated/embedded maintenance expense, worsened (increased) 1.4%, to $1.454m, signaling that upcoming maintenance events for inventory aircraft, though fewer in number, will be slightly more expensive occurrences.
Maintenance Exposure to Ask Price (ETP) Ratio
The ETP Ratio is a useful indicator of an aircraft’s marketability. It is computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During 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 versus 404 Days on Market). November’s market overview revealed that nearly 49% of the tracked models, and almost 53% of the tracked fleet, posted an ETP Ratio greater than 40%. November’s fleet ETP Ratio rose (worsened) to 70.1% from October’s 69.8%, a figure slightly worse than the 12-month page 28 average for a second consecutive month.
24 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Fleet Maintenance Condition $ Million $1.50
5.45
$1.45
5.35
5.371
5.25
$1.45 $1.40 $1.35
5.15
$1.30 D
J
F
Quality Rating
M
A
M
J
J
Maintenance Exposure
A
S
O
N
Quality Rating Trendline
Table B G500 1.3% F8X 3.0% CL-350 4.0% Citation Latitude 5.1% G650ER 5.2% CL-650 5.3% G650 6.3% F2000LXS 7.3% Citation Sovereign + 7.8% Citation CJ3+ 8.4% F900LX 8.7% F7X 9.2% G280 9.3% Global 6000 10.8% Legacy 500 11.0% King Air 350i 13.2% Citation X+ 13.4% Citation CJ4 525C 13.5% Citation XLS+ (MSG3) 13.9% Pilatus PC-12 14.8% F2000LX 15.0% Phenom 300 16.2% Learjet 70 16.8% Boeing BBJ 16.9% Legacy 650 17.1% F900DX 18.4% F900EX EASy 19.4% Citation Encore + 19.5% F2000EX EASy 20.1% CL-605 20.3% G450 20.4% Citation Sovereign 680 21.1% Caravan 208-675 21.3% G150 21.4% TBM 850 21.6% Piper Meridian 22.2% KingAir 350 - Post-2000 23.8% Citation CJ3 24.1% Citation Encore 25.2% Phenom 100E 25.8% Nextant 400XTi 26.0% Hawker 900XP 27.6% F900EX 27.7% Challenger 300 28.5% Citation CJ2+ 525A 28.5% Citation Mustang 510 29.0% F900C 30.5% G550 31.1% Global XRS 31.8% F2000EX 32.1% Citation XLS 33.6% Learjet 45XR 35.3% Global 5000 35.8% GV 35.8% KingAir B200 - Post-2000 36.2% Piaggio P-180 II 36.4% Citation CJ2 38.8% Hawker 850XP 38.8% Caravan Grand 208B 39.0% KingAir 350 - Pre-2001 39.0% Caravan 208 39.3%
Legacy 600 40.9% Citation XLS (MSG3) 42.7% Citation CJ1+ 43.3% Citation CJ1 43.8% F900 44.0% Hawker 4000 44.2% KingAir B200 - Pre-2001 45.0% Phenom 100 45.4% Learjet 60XR 45.5% F50EX 50.5% Hawker 750 50.9% Hawker 400XP 52.6% G200 52.8% Citation Excel 560XL 53.1% Citation V Ultra 53.3% CL-604 53.8% Learjet 40 54.9% KingAir 300 56.2% TBM 700A 58.1% Learjet 40XR 58.2% F900B 58.3% F2000 60.5% Premier 1A 61.9% GIV-SP (MSG3) 62.3% Citation VII 70.2% Global Express 72.5% Learjet 45 w/APU 73.0% Hawker Beechjet 400A 75.9% Citation V 560 78.9% Learjet 45 89.7% Hawker 800XP 94.1% Premier 1 95.7% F50 97.2% GIV-SP 97.6% Learjet 60 98.6% Hawker 1000A 107.3% Piaggio P-180 113.0% Citation VI 114.4% Learjet 31A 122.1% KingAir C90 122.9% Hawker Beechjet 400 123.6% G100 132.5% Citation II 134.5% Citation ISP 139.5% CL-601-3R 140.7% Hawker 800A 158.3% GIV 163.0% Learjet 36A 177.4% CL-601-3A 187.0% Learjet 31 190.1% Learjet 55 203.4% Citation III 226.9% Citation Bravo 264.2% Learjet 35A 266.9% F20-5 286.2% CL-601-1A 306.3% Hawker 125-700A 315.0% GIII 512.1%
Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of November 30 2020 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
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2011 GLOBAL 5000 | S/N 9392
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1998 CITATION X | S/N 0059
JSSI Platinum 100% Engines & APU • Winglets • WAAS / LPV / ADS-B Compliant [D]FMZ-2000 • [D]Laseref III • TCAS II/7.1 • 2012 Paint/Interior by Capital Aviation Two Corporate Owners Since New
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MarketIndicators.qxp_Layout 1 15/12/2020 13:41 Page 6
MARKET INDICATORS
Large Jets
Mid-Size Jets
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure
$ Millions
$ Millions
$13.5
$3.20
$12.5
$3.10
$3.25
$1.30
$3.00
$1.26
5.772
5.800
Oct-20
Nov-20
Sep-20
Aug-20
5.343
Turboprops registered the best ETP Ratio at 40.6%, and the group posted its second consecutive 12-month low (best) figure. Large Jets improved, for a second month in a row, to 59.4% - a Ratio halfway between the group’s 12-month low and average figures. Mid-Size Jets worsened slightly to 69.0%, but the figure was just off last month’s 12-month low of 68.9%. Sellers have tried to increase Light Jet Ask Prices to no avail. The group’s ETP Ratio continues to climb, setting an all-time high/worst figure in November of 102%.
Market Summary
November’s inventory continued to hover around 10% of the active fleet, favoring neither buyers nor sellers. Large Jets and Turboprops led the way with figures in the 8% range. Mid-Size Jet and Light Jet inventory improved to 12% and 10%, respectively. Large Jets: The Large Jet group posted a slight Quality Rating improvement of 0.6%, pushing it deeper into ‘Outstanding’ territory, at 5.772. Maintenance Exposure improved slightly (0.1%) to remain above the 12-month average. Asset Insight’s tracked Large Jet inventory increased by two units, making availability 14.8% higher YTD. November’s Ask Prices decreased 3.4% as higher quality assets replaced lower quality transacted units. We believe
28 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Dec-19
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
5.000
Jan-20
5.500 Dec-19
5.100
Jan-20
5.200
5.600
•
Jul-20
5.400 5.300
5.700
•
Jun-20
Scale -2.500 to 10.000
Scale -2.500 to 10.000
•
$1.25
Asset Quality Rating
Asset Quality Rating
•
Apr-20
$2.50
May-20
$2.90
Feb-20
$2.75 Mar-20
Nov-20
Oct-20
Sep-20
Jul-20
Aug-20
Jun-20
Apr-20
May-20
Feb-20
Mar-20
Jan-20
Dec-19
$10.5
$3.00
$3.00
$3.50
Jan-20
$11.5
$1.35
$3.40
Dec-19
$11.6
$3.75
Large Jet sales will close 2020 with solid figures, and at values that won’t wholly disappoint sellers. Mid-Size Jets: Buyers returned to favoring lower quality assets during November, raising the Mid-Size Jet inventory’s Quality Rating by 0.9%, while lowering (improving) Maintenance Exposure 1.4%, and setting 12-month best figures in both cases. At 5.343, asset quality moved further into ‘Excellent’ territory, while an additional 24-unit decrease lowered the YTD inventory figure 11.4%. The challenge for sellers is the average Ask Price, which fell 1.6% in November, but remained 2.1% higher YTD. Asset Insight analytics (www.assetinsight.com) These changes did nothing to help the ETP Ratio figure, which rose very slightly to 69% from 68.9%. Compared to January’s 87.4% Ratio, though, 2020 has offered better selling opportunities for owners of Mid-Size Jets. Light Jets: Buyers were laser focused on higher-quality aircraft during November, lowering the inventory’s Quality Rating by 1.1% and increasing (worsening) Maintenance Exposure 3.1% to a 12-month high. Inventory decreased by 20 units for a second consecutive month, lowering YTD availability 7.8%. Deteriorating to a quality rating of 5.178, the group managed to maintain quality within the ‘Very Good’ range, but that’s about all of the good news for sellers.
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MarketIndicators.qxp_Layout 1 15/12/2020 13:42 Page 7
AVBUYER.com
Light Jets
Turboprops
Ask Price vs. Maintenance Exposure
Ask Price vs. Maintenance Exposure
$ Millions
$1.10
$1.03
$1.00
$1.85
$1.61 $1.60
$0.60
$1.50
$0.55
Nov-20
Oct-20
Sep-20
Jul-20
Aug-20
Jun-20
May-20
Apr-20
$0.52 Mar-20
$1.40
Jan-20
$0.70
Feb-20
Oct-20
$0.80
Nov-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Jan-20
Feb-20
Dec-19
$1.65
$0.65
$0.90
$1.79
$1.75
$1.70
Dec-19
$1.95
$ Millions
$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
5.250
5.300
5.178
5.200
5.209
5.150 5.050
4.950
5.100
4.850
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-20
Oct-20
Sep-20
Aug-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Jul-20
4.750
5.000
Asset Insight analytics (www.assetinsight.com) Asset Insight analytics (www.assetinsight.com)
The ETP Ratio sailed to a record-high 102%, aided by Ask Prices falling 3.0% in November. Buyers had no shortage of available aircraft to choose from, and transaction likely to Asset Insight prices analyticslooked (www.assetinsight.com) go even lower for owners wishing to close a sale by the end of 2020.
Turboprops:
Buyers continued to remove lower quality assets from the tracked inventory, during November, to the tune of 21 aircraft. This brought overall inventory down 3.3% YTD. In other good news for both buyers and sellers, the Quality Rating rose 1.0% to a 12-month high within the ‘Very Good’ range, while Maintenance Exposure set a 12-month best (low) figure, falling 1.1%. Ask Prices dropped 1.5%, but the figure remained above the 12-month average. Lastly, and perhaps most importantly in November, Turboprop marketability was the best it’s been during the past year as the ETP Ratio posted a 12-month low (best) figure that’s only 0.6 points away from achieving the 40% demarcation point. That’s a figure not posted by any group since August 2016 (when the Large Jet ETP Ratio was at 39.4%). MI www.assetinsight.com
www.AVBUYER.com
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
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.
page 30
AVBUYER MAGAZINE Vol 25 Issue 1 2021
29
MarketIndicators.qxp_Layout 1 15/12/2020 13:42 Page 8
MARKET INDICATORS
AVBUYER.com
How Were New Aircraft Shipments Looking in Q3 2020? The General Aviation Manufacturers Association (GAMA) released its Q3 2020 delivery report in November. The results were marginally better than Q2 in some areas, but things were still pretty dismal. Mike Potts reviews… Total airplane shipments for January to September 2020 totaled 1,521 units, 12.6% behind the 1,741 units shipped in 2019 in the same period. Although disappointing, this represents an improvement over the 21.5% reduction experienced in Q2 2020. Billings for 2020 Year-to-Date (YTD) totaled $11.9bn, a reduction of 20.1% from the $14.9bn recorded in Q1-Q3 2019. Looking at the individuals segments: • • •
Jet deliveries trailed by 26.7%, after Q3. In raw numbers jets totaled 378 units compared with 516 in 2019. Turboprops did slightly worse, down 27.0% as unit totals amounted to 254 compared with 348 in 2019. The piston segment was a surprise performer, with shipments actually coming in 1.4% ahead of 2019, YTD. Piston deliveries totaled 889 units compared with 877. The uptick in piston shipments was responsible for keeping overall YTD unit deliveries closer to 2019 levels than they were in Q2.
The Business Jet Market
Turning to the specifics of the jet market, the current situation can only be regarded with sadness. We began 2020 30 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
suggesting the year could be one of the three or four best years for jet deliveries in history. Now it’s on track to be one of the worst. Of the 10 jet OEMs reporting to GAMA, none had YTD totals ahead of 2019, and only one was level. Looking just at Q3, one OEM was level (but not the same one as in the YTD totals), eight trailed their 2019 results, and one (Dassault) doesn’t report in Q3. The market leader was again Gulfstream, with a total of 87 shipments through September 2020. Gulfstream still trailed its January-September 2019 results by 16 units – a drop of 15.53%. Nevertheless, Gulfstream has settled into a steady pattern, suggesting the planemaker was getting as good a handle, or better, on this coronavirus-impacted market as any of its competitors. Gulfstream reported 32 deliveries in both Q2 and Q3 2020 after opening the year with just 23 in Q1. The Savannahbased OEM looked on track to finish the year in the number one position, unless one of the others experienced a sensational Q4 surge. The battle for second place in jet deliveries was intense, with Textron’s Cessna unit and Bombardier separated by a single shipment at the end of Q3. With 71 units, Cessna had a slender lead over Bombardier’s 70. Compared with its 2019 results, however, Bombardier was doing a little better, being down 20 units (22.22%) from the 90 recorded by the end of Q3 2019. Cessna was down 64 units (47.41%). Cirrus continued to maintain a solid grip on fourth place
page 34
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Elliott Jets January.qxp_Layout 1 15/12/2020 10:58 Page 1
Freestream 1 January.qxp 15/12/2020 11:01 Page 1
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
2007 in Service 2010 BBJ S/N: 36090. Airframe Total Time: 2,451 hours, Aircraft Total Cycles: 724 FREESTREAM AIRCRAFT LIMITED
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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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MARKET INDICATORS
AVBUYER.com
The Turboprop Market
with 47 deliveries YTD, down 9.62% from the same period for 2019 when it had 52. This is the lowest YTD percentage drop of any of the jet OEMs. Meanwhile, Embraer is fifth with 43 units, down from 63 in 2019 (a reduction of 31.75%). For Q3 alone Embraer made 21 deliveries, down from 27 in Q3 2019 – a 22.22% drop. A strong Q4 surge could still carry Embraer past Cirrus. Pilatus finished Q3 2020 in sixth place with 24 deliveries, down just 11.11% from the 27 PC-24s shipped in Q1-Q3 2019. For Q3 2020 alone, Pilatus reported eight deliveries, down from 11 in 2019. With 17 deliveries Honda was seventh, trailed closely by Dassault (which doesn’t report in Q3, but had 16 at the end of Q1-Q2 2020). In all probability, Dassault’s total will exceed Honda’s when the year-end results are tallied. Honda’s YTD total was down from 25 the year before, although looking just at Q3, Honda was level, at eight in Q3 2020 and 2019. As usual, Airbus and Boeing brought up the rear. Airbus reported three units YTD in 2020 and 2019, making it the only jet OEM not to lose ground on a YTD basis. Boeing had made no deliveries by the end of Q3 in 2020, compared with one in 2019. So how can we expect the jet market to finish 2020? If traditional patterns hold (and in 2020 there probably isn’t much reason to believe they would have), we can expect the jet market to finish between 565 and 575 units. And if that proves true, 2020 would be the worst year for jet deliveries since 2005 – sad, considering 2019 finished with 809. 34 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Looking at the turboprop market, the news is no better. Of eight turboprop builders, YTD seven had lower numbers in 2020 than in 2019. The eighth company is new. The numbers for just Q3 were a little more encouraging, however. Two companies saw better results, while three were even and three were down. GAMA shows the turboprop market to be at 254 units through to the end of September 2020, but this includes the agricultural airplanes, which made up 38.6% of the total market. Looking at just the traditional business turboprops, we have a total of 156 airplanes compared to 246 in the same period of 2019, a reduction of 36.59%. Clearly, the business turboprop segment is in much greater duress than the 27% downturn GAMA’s report implies. Pilatus was firmly in first place, having surpassed Textron’s Beechcraft unit for the lead in Q2 2020. Daher, which was in fourth place after Q2, moved in to third. Textron’s Cessna unit, which started 2020 tied with Pilatus for second place, was relegated to fifth, behind Piper which climbed into fourth on the strength of a strong Q3. Pilatus reported 48 units for 2020 by the end of Q3, including 19 in Q3 alone. The PC-12 manufacturer was down only slightly from the 52 units reported for the same period in 2019. Second-placed Beechcraft reported 33 units for the first nine months of 2020, down sharply from 61 in 2019. For just Q3, Beechcraft shipped 13 units (versus 17 in 2019). Daher, which now includes Kodiak, captured third place with 28 shipments, down from 45 in 2019. For Q3 alone, Daher had 13 which matched its Q3 2019 total. Fourth-placed Piper is having a comparatively good year with 23 units in the first nine months of 2020, compared with 25 in 2019. For Q3 alone, Piper is ahead, with 12 units, up from 11 the previous year. Meanwhile, Cessna sank to fifth place with just 19 units delivered in the first nine months of 2020, compared with 56 at the same time in 2019. For Q3 alone, Cessna reported eight deliveries, down from 17 in Q3 2019. Newcomer Epic captured sixth place in turboprop deliveries with four units. Epic had one delivery in Q3. Meanwhile, Pacific Aerospace reported its first delivery of 2020 in Q3, and is down from five in the first nine months of 2019. Bringing up the rear in the turboprop segment was Piaggio which made no deliveries before the end of Q3 2020, but had reported two in the same period for 2019. Regardless of the final order at the top of the market, I suspect the business turboprop market will finish the year in the 230-240 unit range. ❙
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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2007 CITATION CJ2+ S/N 525A-0341
2012 LINEAGE 1000 S/N 317
5’620 Hours, Engines on TAP Blue, Recent 600H Check, New Paint and Interior in 2017
1’840 TT, Engines on GE Onpoint Program, WiFi, Airframe on EEC, 19 Passengers Configuration
2014 LEGACY 650 S/N 1194
2007 LEGACY 600 S/N 995
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Used Aircraft Sales Trends: What Does 2021 Hold? With the industry becoming increasingly adept at functioning despite Covid-19, how did the used aircraft sales marketplace finish 2020, and what are its prospects for 2021? Dave Higdon caught up with Tony Kioussis to ask… he plunges and climbs of last year could definitely be said to have made 2020 a year for the adrenaline junkie… The Covid-19 pandemic begat economic dives, triggering recession-like conditions with most of the associated ripple effects – and the aviation community felt all of the swings. Initially Business and General Aviation suffered along with the airlines, before the charter community helped itself with some on-point messaging, highlighting the extra steps taken to disinfect their aircraft after every flight, and reinforcing the benefits of a wholly private flight. Naturally, pre-owned business aircraft sales took initial hits, too, while buyers took a ‘wait and see’ approach to the impact of the pandemic. Adding to the woe, some potential buyers seemed reluctant to make a deal until after knowing the results of the
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November US Presidential election. Now, however, the markets are surging. And optimism seems more apparent, while the Business Aviation community is equally prepared to see business and flying return to something closer to ‘normal’. As a matter of fact, Q3 sales activity boomed, sapping inventories and pushing asking prices upward, according to analysts who follow the pre-owned business aircraft market. Meanwhile, Q4 numbers – while unsettled – point toward a market beset by inventory shortages, and ask prices detached from the value of most offerings. Still, things seem to be looking up, and analysts including Asset Insight’s Tony Kioussis – see a stronger market coming in 2021. “I'm very bullish on 2021,” Kioussis told AvBuyer. “I see continued positive trends on all sides.”
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“With continued strong demand and reduced new aircraft deliveries, the ripple effect brought down inventories of later model aircraft... the quality of assets remaining in inventory has increased, as have ask prices.” The View Ahead
Demand is increasing, Kioussis offered. “Overall, the inventory of pre-owned aircraft peaked in June, and that peak affected everything from pricing to time on the market. Then Q3 came back really strongly. “The real strength of Q3 was in transaction volume – up 71% over Q2 in terms of transaction value. Asking prices improved except for the Large Jets,” says Kioussis. Year-over-year figures were also promising, with demand up. “What we saw in October was very positive and I think that will continue into Q1 2021.” With continued strong demand and reduced new aircraft deliveries, the ripple effect brought down inventories of later model aircraft. “We are expecting to see that the inventory continued to drop in Q4 2020,” Kioussis explains. He notes that buyers were opting for lower-quality aircraft, presumably “because they're seen as a better value for the money”. As a result, “the quality of assets remaining in inventory has increased, as have ask prices. It's an unusual dynamic that I can't recall seeing before.”
Low Prices: Risks Versus Reward
Speaking of those who appear to be getting what they perceive as good value for lower quality aircraft, Kioussis highlights the risk, explaining “they're focusing on price, not value.” Older business aircraft can mask hidden expenses that could come due after the purchase, he warns. “If the maintenance is being completed, or the buyer is getting a good price...it may indeed be a good deal,” he clarifies. “However, purchasing something that's a good price versus something that's good value can cost the buyer more in the long run.” Part of the problem that dealers and brokers point to is the new entrants in the marketplace; entrants that are drawn by the opportunity to own an airplane and ditch the common carriers as a way to continue their necessary travel during the Covid-19 pandemic. “These people don't really know what they need to know,” Kioussis notes. Nevertheless, he sees continued 40 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
positive trends on all sides, and is enthusiastic about the market’s prospects for 2021. “Inventory may go up a little bit in Q1, because it will probably have been drained in Q4 2020.” Kioussis explains that one can expect 40% or more of all transactions to be done during a traditional Q4, but maybe more in a year like 2020.
So, What's Changed for 2021?
Supply, and therefore choices available on the market have declined, prices have increased, and financing remains at historically low rates (see Chris Kjelgaard’s indepth overview of the aircraft financing market for 2021 in this issue, on p62). The supply isn't likely to jump by any great degree, reflecting the drop in new aircraft deliveries over the last six months of 2020 – and that in itself was a reflection of market nerves and hesitation going into the 2020 election cycle. With the economy firmly in what the numbers define as recession territory, the markets appear to be on the cusp of bottoming out. But the nagging pandemic continues to influence the decisions of many business travelers to explore the benefits of business aircraft ownership. Year-over-year, in 2020, demand looked set to be up. “I think that will continue into Q1 of 2021,” Kioussis concludes. Without question, a smoother, stronger 2021 would be a welcome sight industry-wide. We will see in a few more weeks… 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 HQ - advertorial advertorial.qxp_Layout 1 16/12/2020 12:18 Page 1
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Answers in a Changing Landscape Discovering the right aircraft can be a long process, but COVID might have disrupted it. As prospective buyers look to move into a private aircraft or move up in plane size, it’s useful to have someone who has the answers to questions that arise. What are the differences between owning a single-engine piston or a twin turboprop aircraft? When is the time to move to larger jets with greater range? Due to COVID, new companies and people are experiencing private aviation for the first time. That benefits the industry in the long term, but it can make the short term seem more volatile. The light jet market has already expanded in 2020 because of this trend. Business aviation is poised to go through this period differently than previous economic disruptions. For one, the inventory available is nowhere near as high as previous times, such as the Great Recession. Manufacturers have fine-tuned their production, leaving fewer aircraft sitting without buyers. For the first time, business aviation could be a leading indicator of the economy, instead of lagging behind recoveries of the past. That speaks to the power of private aviation as a business driver, opening up greater opportunities all over the world.
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Market Insights: Jay Duckson, Central Business Jets
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Kicking off a new series for 2021
in AvBuyer, Matt Harris asked Jay
Duckson about his, and Central
Business Jets’ insights on the
pre-owned aircraft sales market…
ince being founded in 1986, Central Business Jets, Inc. has built a solid reputation for expert client representation in the aircraft sales business, providing acquisition and consulting services. A sure sign of the esteem with which it is held can be seen through a customer renewal rate approaching 100%, while its new customer base increases over 10% year-on-year, largely through recommendations from existing clients. Regularly surpassing $200m in annual sales,
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AvBuyer: How was business for Central Business Jets in 2020? Duckson: We were quite pleased with 2020, overall. Generally, we were busy in the first quarter (Q1). That’s somewhat normal for us, as several of our clients are not overly concerned with making Q4 purchases. Then, of course, came the chaos of Q2 – at which time we were ‘jokingly’ calling ourselves to make sure we still had a phone service. But once it was determined that we could all leave our basements again, we were pleasantly surprised at how buyers were peeking their heads around the corner, admitting that they were going to start traveling again within the safe-havens of their own airplanes. AvBuyer: We heard that pre-owned business jet sales coped surprisingly well in 2020. In fact, analyst Brian Foley said pre-owned sales had been ‘carrying the torch’ for Business Aviation throughout the pandemic. Why do you think that is? Duckson: As I touched on, it appears the safehavens of their own travel environment — something that can be controlled, as you never know who you could be sitting next to on the airlines – is an attraction for business jet buyers. Airlines and larger airport terminals cannot be controlled like a Fixed-Base Operation can. And what would the legal ramification be if an employee
www.AVBUYER.com
Central Business Jets is experienced in the sale of aircraft from every major manufacturer, and has completed transactions across six continents. Its Founder and President, Jay Duckson, has personally assisted corporate flight departments in the buying and selling of over 1,000 aircraft worldwide over the years. Therefore, Duckson is well-placed to provide some insights on the marketplace at a time many are keen to put 2020 behind them and look for clearer skies ahead.
caught Covid-19 on a Business trip? If you add this to the ever-changing airline schedules, with some cities no longer being served, and needless overnight stays in hotels as a result; plus a lower stigma that’s attached to aircraft ownership currently, all of these factors play their part in helping pre-owned business jet sales. AvBuyer: Average ask-prices seem to have risen very slightly for Mid-Size Jets and Light Jets (per Asset Insight data) during 2020. Why do you think this has happened, and is it something the market can sustain into 2021? Duckson: Covid-19 restrictions have really had an effect on where people can travel to and from. As one of the leaders in larger category aircraft sales, Central Business Jets’ clients are waiting, poised. While some have already purchased their Large Jet, some will purchase an aircraft with international range once the epidemic is behind us. In the meantime, the shorter out-and-back, sameday trips are as close to normal as possible right now, and it’s for these trips that the Light to Mid-Size Jets are in demand. The hope is that the market for Light and Mid-Size Jets remain price-steady, and that prices for Large Jets start to increase. The potential block to this happening is a fear that public perception of aircraft ownership becomes negative, and that higher taxes in 2021 may stall demand.
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AvBuyer: Right now, for the reasons you’ve already given, it looks like the active markets within preowned sales are the Mid-Size or Light Jets. Is there anything else that might be helping private jets sell currently? Duckson: We hope that the increased availability of good quality pilots – caused by airline layoffs – brings more purchasers to the market as this helps remove one of the largest buying hurdles (as to who will fly the jet). Also, it’s well-known that once an owner utilizes an aircraft for at least 150 flight hours per year, aircraft ownership becomes cheaper than partial ownership programs (Jet Cards, Fractional, etc.). Typically this group of business aircraft user begins the whole-aircraft ownership journey in the Light to Mid-Size categories, which is another possible reason we have seen supplies within these markets dwindle (in some cases by 50%). And this causes prices in those markets to stabilize, and in some cases rise. AvBuyer: Though it’s hard to predict with certainty, what are your expectations for the market in the next 12 months? Duckson: Setting aside economic conditions and public perception over jet ownership, what does the bigger picture say? There are prospective buyers that are waiting in the wings, watching for how the current pandemic plays out. Others are chartering or perhaps have a quarter share (via a Fractional Ownership program) as a short-term solution for their transportation needs. How many more of these will look to whole aircraft ownership as a longer-term solution? If I was to hazard a guess, we could see a slight price dip in Q1, 2021; for prices to increase in Q2; flatten out in Q3; and decrease again in Q4, in line with market demand. AvBuyer: Finally, what advice would you offer buyers looking to enter the market in the next few months? How can they achieve success in today’s market? Duckson: The essential key to any purchase or sale is a very high quality product. Success comes from paying a fair price for quality, as others may pay a little less for junk. Remember, not every aircraft is the same – and while many are marketed in ways that make them compare favorably, that is not always the reality. It is, therefore, important to remember that the cheapest part of aircraft ownership is paying a fee to an experienced professional who can help you find quality on the market. Nobody ever got mad because they bought a good airplane. Plenty have got mad because they failed to do so! A little extra investment will make all of the difference to today’s pre-owned aircraft buyers.
JAY DUCKSON, FOUNDER & PRESIDENT, CENTRAL BUSINESS JETS
“The essential key to any purchase or sale is a very high quality product. Success comes from paying a fair price for quality, as others may pay a little less for junk.”
More information from www.cbjets.com T
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What’s the Latest on the Bombardier Global Jet Market’s Performance? Are you looking to buy or sell a Bombardier Global model on the pre-owned business jet market? Matt Harris asks Tony Kioussis and Hardy Sohanpal for their insights on how these ultra-long-range models are performing… ver since introducing the Global Express to the market at the end of the 20th century, Bombardier has been a leading player in the Large Cabin & Ultra-Long-Range jet segment. Fighting it out with other Large Jet manufacturers such as Dassault and Gulfstream for market share, in the years since the original Global Express was certified Bombardier has consistently refined, developed and expanded the aircraft into a family of jets. Today, the Global family offers a jet to compete in just about any niche within the Large Cabin & Ultra-LongRange arena, right up to the 7,700nm-range Bombardier
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Global 7500 which has the longest non-stop range of any business jet certified to date. Well-established members of the Bombardier Global family, the Global 5000 and 6000 jets, have recently been joined by the Global 5500 and 6500 on the production line, each offering cabin improvements inspired by the Global 7500. The Global 5500 and 6500 utilize the same RollsRoyce Pearl 15 engines for improved fuel efficiency, better hot-and-high performance, and extra range. Flying 5,700nm and 6,600nm, respectively, these newest members to the Bombardier Global family fill gaps www.AVBUYER.com
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Matt Harris is commissioning editor for AvBuyer. He is an experienced General and Business Aviation journalist and has edited a variety of titles across the last two decades. These include AvBuyer, BizJet Advisor and GA Buyer Europe. https://www.linkedin.com/in/ matthew-harris-avbuyer/
between the Global 5000 and 6000 (in the case of the Global 5500), and the Global 6000 and 7500 (in the case of the Global 6500). “The cabin size and operational range of the Bombardier Global fleet is quite remarkable, and this has created a strong industry following,” Tony Kioussis, president of Asset Insight, told AvBuyer. “Buyers get a considerable amount of space and range with all of the Bombardier Global models, and this has been their main attraction from an end-user’s perspective,” Hardy Sohanpal, head of aircraft sales, Global Jet Monaco, notes, adding that the aircraft type is also “well established and tested across the world” in terms of the technical support available to owners and operators. “We currently have 13 Globals under management across world, hence we have first-hand experience from a client experiential and operations perspective," he says.
Bombardier Global Market Information
Today, it is possible to pay anywhere from $70.0m for a brand new Bombardier Global 7500, all the way down to below $10m for an older model Global Express. “You get value for money with a Bombardier Global jet,” Sohanpal says of the pre-owned marketplace. “For example, you can enter the market from as little as $7m for a well-managed Global Express that is just under 20years old and is capable of flying 6,000nm and offers 2,140 cubic feet of cabin space. And you could pay $13m for a Global XRS.” www.AVBUYER.com
“Put differently, while many aircraft may be available for a low price, the Global series tends to offer good value for the money,” Kioussis adds. “As of the end of November 2020, available inventory for the entire Global fleet was approximately 10%,” he reveals. “That provides good opportunities for both buyers and sellers on the pre-owned market.” According to Sohanpal, the pre-owned market for Bombardier Global jets was displaying classic price elasticity at year-end, 2020. “This is when the sweet spot of demand and price converge and you see a flurry of activity,” he explains. “This is the case for most Global models, but particularly the 2013- through 2015-model Global 6000s where prices are presenting a compelling reason for buyers to upgrade existing aircraft to the larger cabin, longer-range of a Global 6000.” Global Jet has also seen evidence of pent up demand being released for Bombardier Global models following initial buyer hesitation during the early stages of the coronavirus pandemic. “After buyers took an initial ‘let’s see what happens’ approach, they have slowly been returning to the market, and, by December, that had reached a frantic attempt to complete year-end deals,” Sohanpal says.
Pre-Owned Bombardier Global Fleet Quality
Looking at individual markets, Kioussis says that while inventory for the Global Express and the Global XRS models stood at 14.1% and 11.3% of the active fleets, respectively, inventory for the other Global models (excluding the Global 7500, 6500 and 5500) remained in the single digits. “At the same time, Asset Insight’s Asset Quality Rating for Bombardier Global models averaged 6.143, placing the inventory substantially into the ‘Outstanding’ range,” he adds. Based on a scale ranging from 10 (optimum quality) down to -2.5, November’s overall business jet fleet Quality Rating averaged 5.352, showing the tracked Global fleet to be well above average. “Meanwhile, the Maintenance Exposure to Ask Price Ratio (ETP Ratio) averaged 37.7% for the available inventory, with a low of 10.8% for the Global 6000, and a high of 72.5% for the Global Express.” This average will come even lower once the Global 7500, 6500 and 5500 have been operational long enough to register. The ETP Ratio is a useful indicator of an aircraft’s
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marketability, according to Asset Insight, and is calculated by dividing an aircraft’s financial liability accrued with respect to future scheduled maintenance events (its Maintenance Exposure) by its Ask Price. Kioussis explains that when the ETP Ratio is higher than 40%, a listed aircraft’s average days on the market before a sale occurs tends to increase – usually by more than 30%. “Keeping in mind that a majority of Bombardier Globals are enrolled on Engine Hourly Cost Maintenance Programs (HCMP), their HCMP-adjusted ETP Ratio – even for most of the Global Express fleet – should be at, or below the 40% point that we view as excessive. “For these reasons, we see the Global fleet as very attractive relative to marketability,” Kioussis clarifies.
Tips for Bombardier Global Jet Buyers and Sellers…
With Bombardier Global business jets offering attractive pricing on the pre-owned market, relatively low maintenance exposure (to asking price), and a solid reputation among business jet models, there are nevertheless some things that buyers should keep in mind. “Buyers should first make certain that they need an aircraft of that size and operational capability,” Kioussis cautions. “This is an aircraft whose size carries additional costs, from its fuel burn to the size of hangar it requires.” If, after consideration, a Bombardier Global model is the right choice, Sohanpal recommends buyers “focus on aircraft that have been professionally managed”,
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.
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helping ensure a solid maintenance background. And when you are ready to buy, “be ready to move quickly, since quality aircraft are in demand.” But Kioussis warns buyers never to make an aircraft selection based on its price alone. “The acquisition cost is likely to be only a small portion of your total operating costs. Be sure to run total operating cost figures, by Serial Number, covering the period of time you anticipate owning the aircraft. “Finally, obtain Residual Value analytics from a trusted source. These should be based on forward-looking indicators, not the slope of the aircraft’s historical depreciation. If the Covid-19 environment has taught us anything, it is that history is not reflective of what’s occurring today.” On the other side of the transaction table, Sohanpal urges sellers to be more pragmatic on pricing. “Many of the older Globals do require a certain level of investment in upgrading avionics, entertainment, and communication systems,” he highlights. “It’s also advisable for owners to enrol with an engine and APU maintenance program, which helps provide a level of marketability and ‘comfort’ for buyers entering the market.” Kioussis suggests sellers make certain to understand how their aircraft competes with other serial numbers, and similar models. “Wishful thinking, and any ‘feeling’ you might have about your aircraft’s value, will not justify your ask price, nor overcome an offer price from a buyer who has done their homework,” he concludes. More information from www.assetinsight.com or www.globaljetmonaco.com T
Hardy Sohanpal is Sales Director at Global Jet’s Monaco-based sales & acquisitions office with extensive experience in the VVIP private aircraft industry.
www.AVBUYER.com
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BUYING & SELLING AIRCRAFT Dave Higdon is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com
Tips for Buying & Selling Jets in 2021 The New Year may be the ideal time for buyers and
sellers to get the wheels rolling on a business aircraft
acquisition or sale. Dave Higdon shares some important tips you should know right at the start of the process…
hile there are plenty of reasons for continued caution as we enter 2021 – the Covid-19 pandemic continues, after all – other reasons create a good feeling as we leave 2020 behind. For example, 2021 involves no US Presidential election. And although having a new President after January 20 will undoubtedly bring its own changes, a new tax year in the US brings more opportunity to buy or sell business aircraft. That is something dealers and brokers everywhere welcome… just as soon as the paperwork from 2020's eleventh-hour transactions is complete! For many buyers and sellers, it’s time to connect with a reliable dealer or broker, and begin the search for a viable aircraft to buy, or to prepare the ground for the sale of one. The best results come from making the right preparatory steps. To that end, we offer some tips for those in the market to buy or sell jets in 2021.
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TIP 1: Draft your Team
Both buyers and sellers can benefit from the use of the right Business Aviation experts, including the professionals who can address the specific aspects of buying a business aircraft, and those who will oversee and guide the sale process. The buyer or seller that hires the right team will receive the best advice throughout the process. In the case of the buyer, that includes selection of the aircraft make/model that best fits the company’s mission profile and focusing the search on the choices for that target aircraft, and then narrowing the list of candidates. Factors to consider include not only an aircraft’s specifications, cabin layout and price, but also its maintenance history and cosmetics, and discussion of any potential legal and tax issues which can vary with the current location of the aircraft, its future base, how aircraft ownership will be structured, as well as the www.AVBUYER.com
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operating structure planned for the aircraft. For the seller, the right team will help you have a better understanding of the true value of the aircraft in today’s market, and how to position and market it well against comparable aircraft. Remember, Business Aviation carries some unique requirements, which makes expertise in such technical subjects a must. Though some less experienced buyers and sellers view aircraft transactions as similar to shepherding a real estate deal, trying to apply real estate rules and standards to the aircraft transaction is ill-advised.
TIP 2: Consider the Financing Options Early
Early in the process – at about the same time the team of experts is assembled – buyers should weigh the financing options. For those seeking to obtain financing for the purchase, this is the ideal time to solicit loan proposals from experienced and specialized institutions. www.AVBUYER.com
The goal is to identify a lender that best fits with your plans and needs. Lenders with the right expertise can pay big dividends. Negotiating loan terms is seldom a quick, easy process, and the potential lender will want to know as much as possible about the aircraft that is planned for acquisition – which can be a challenge when you’re only just beginning a search for a viable candidate. Once a type and model is identified, though, experienced aircraft lenders may set tentative finance terms of a general nature, with final terms forthcoming once a specific candidate is targeted, and aircraft information (including type, make, model, model year, usage information, maintenance program enrollment, engine time remaining, and price) is available. Most lenders will start their own due diligence process regarding the borrower and credit committee approval of the loan prior to the identification of a specific aircraft.
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TIP 3: Understand the Tax Implications Early
Early in the process the buyer should settle on how to manage the use of a business aircraft. By taking this step early, the owning company helps ensure that all open items are addressed in connection with making an offer on a particular aircraft. The company should also assess relevant sales tax, federal excise tax and income tax issues, as well as FAA regulatory considerations (or the equivalent if based internationally). And it’s important not to forget planning around property and sales taxes to help ensure all the obligations are met. Once the tax planning is complete, build the time it will take to act on that plan into your buying process. That may require longer if the recommendation is to establish a different entity to own and operate the acquired aircraft. Sellers, meanwhile, who need to extract the aircraft from such entities and settle any outstanding tax burdens, will also require time, which can slow the progress of a transaction closing if it is not foreseen and planned for.
BONUS TIP: Never Refuse a Second Opinion
It would surprise many in aviation how often potential deals get derailed because one of the parties feels unhappy with an aspect of the deal, as structured, using the advice of their team of experts. This is where a buyer or seller would do well to solicit advice from someone not previously involved in the process. In the same way most people welcome a second medical opinion when their health is on the line, a second opinion from an uninvolved professional, who can review the deal as it is set, can be useful, and can even end up saving significant sums of money. Will a second opinion add to the time required? Almost certainly – but not as much as the parties could otherwise expend debating the final details. In the end, both parties will be happier with an outcome they can shake hands on. ❙ Find
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How to Understand Aircraft Financing for 2021
The Covid-19 pandemic has had a huge effect on Business Aviation.
Chris Kjelgaard explores whether business aircraft financing trends in 2020 will persist in 2021, as well as how the financing scene might change…
espite the huge uncertainties persisting throughout 2020 because of the global Covid-19 pandemic—and in some ways because of them, some companies achieved record numbers of sales and financings of business aircraft during the year… Some aircraft buyers were prompted by the risk of exposure to Covid-19 aboard the airlines. Others were drawn by the generous bonus depreciation schedule available in the US. While many of these
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customers paid cash for their aircraft, enabling them to close their purchases quickly and easily, many more chose to finance their cash purchases, securing loans or leases, and taking advantage of what BizAv financiers and finance arrangers concur have been record low interest rates and margin spreads. “Margins are the cheapest and leanest they’ve ever been, really,” Andrew Robinson, founder of the London-based marine and aviation financial advisory firm Arc & Co told AvBuyer. www.AVBUYER.com
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AVBUYER.com Chris Kjelgaard has been an aviation journalist for 40 years, with a particular expertise in 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.
Aircraft Financing: 2020 with Hindsight
The 2020 transaction experience of Aircraft Finance Corporation (AFC), a highly active financier of new and used aircraft in the US, illustrates the nearfeeding frenzy the market saw during the year. Company founder, Martin Ormon says that in the three months to late November alone, AFC closed financings on at least five Gulfstream business jets purchased by people involved in the Hollywood film industry. Many studio executives and producers, film and music stars, and real-estate developers bought jets in 2020, he says. “The numbers of jet buyers has been epic. People are buying $35m aircraft for their own use.” While AFC’s average financing-transaction size was in the $3m-$4m range prior to 2020, Ormon says its average loan amount climbed to over $7.5m www.AVBUYER.com
in 2020, and its average transaction size rose to more than $5.2m. Indeed, 2020 was a year in which the company expected to complete nearly 50 deals. Although in the three years before 2019 the market for used aircraft had been slow, in 2020 preowned jets such as Gulfstream GVs, G650s, G450s, Dassault Falcon 2000s and Bombardier Challenger 604s were “as hot as can be—they were going off the shelf like hot cakes,” Ormon notes. Nevertheless, ‘Uncertainty’ is the key word used by Keith Hayes, senior vice president and national sales manager, PNC Aviation Finance, which is generally reckoned to be the largest financier of business aircraft in the US in terms of transaction numbers closed annually. As companies and wealthy individuals became concerned in the spring about how Covid-19 might impact them economically, the Business Aviation industry worried about how the growing global recession would affect aircraft resale values. By mid-year, it became clear that values of EntryLevel and Light Jets and Mid-Size Jets had declined by the same amounts they would normally, and while Large Jets “lost a bit more value than they would have otherwise”, their values hadn’t dropped to the extent many feared might happen, notes Hayes. Hayes highlights the strenuous effort of the International Aircraft Dealers Association, which “did a tremendous job of educating clients”, highlighting that there was no point in them dropping the prices of aircraft they were offering for sale if they didn’t have to sell the aircraft immediately and no buyers were biting at the listed sale price. Levels of trading and financing activity began picking up in July and August, and “that level of uncertainty had been answered in the market”, Hayes reflects. As a result, “levels of financing increased, as they did in 2019”, and it appeared 2020 would end on a strong note. In fact, according to Gary Crichlow, director of aviation finance for Arc & Co., “a lot of lenders had a very busy year in trying to service all the opportunities—but the logistics of getting things done were more of a challenge” than usual, thanks to the widening pandemic.
What’s the Outlook for 2021?
Generally, looking ahead at the New Year, “the reality is the money is still there” in the US market for loans and leases of business aircraft, says Ormon, though “underwriters’ guidelines are getting stricter in specific disciplines”, including lending to the hospitality and commercial-transportation industries.
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That said, he cautions, “money is so cheap” thanks to the US Federal Reserve guaranteeing the liquidity of the market by keeping interest rates down for more than a decade, that “somebody has to pay the piper eventually. “I think eventually we’ll see sticker shock with interest rates,” he reflects, but that may not happen in 2021. Much will depend on the attitudes and policies of the incoming administration and Congress when they are seated in January. One key factor which may affect business aircraft sales and financial transactions positively during 2021 is the availability under the 2018 US Tax Cuts and Jobs Act of 100% first-year bonus depreciation. As long as they comply with all of the associated regulations, 100% bonus depreciation enables
when the global financial crisis depressed the industry. “For 2021, it comes down to a few key points,” says Robinson. “The huge majority of it…comes down to the underwriting of the client’s background, their asset spread and the volatility of those assets. All those things are fundamental to Business Aviation financing—nothing has changed.” Ormon agrees. For AFC, “75% of the lending is done on the [credit of the] individual and 25% on the [value] on the aircraft.” Since much of an aircraft’s overall resale value lies in the resale price of its engines, and thus their maintenance condition, AFC will only enter into a financing transaction if the aircraft’s engines are comprehensively covered by an hourly engine
companies and individuals with significant taxable income to expense for tax purposes the entire cost of an aircraft they have bought, in the tax year in which it was purchased. While clearly nobody knows yet just what economic trickle-down the continuing Covid-19 pandemic will have on the US and global economies in 2021, “assuming inventory of new and used aircraft remains available, everything points to the activity rate in financing in 2021 remaining similar to what it was in the latter half of 2020,” Hayes predicts. Globally, “while financiers do have an appetite to lend, they’re also looking at the wider context, with an eye on the long-term viability of whoever they’re lending to—and they are not lending in an undisciplined manner,” Crichlow says. “They don’t want a repeat of what happened in 2008-2010,”
maintenance plan. The practice is common among US Business Aviation lenders.
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Interest Rates and Margin Spreads
Because the Covid-19 pandemic led to a reduction in overall US bank liquidity in 2020, as clients drew down on previously unused credit facilities and banks pre-emptively made hefty loss provisions, margin spreads began increasing during the year, perhaps by as much as 100 basis points (1%), according to Hayes. Later in 2020, lending margins started to fall again—by around 25 to 50 basis points—as bank liquidity improved and banks didn’t incur the losses they had provisioned for. But the overall rising trend in US lending rates has had the effect of increasing enthusiasm on the part
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of aircraft buyers for locking in their financings at longer-term fixed rates, notes Hayes. While at present offering slightly higher interest rates overall than floating rate-based lending, fixedrate lending guarantees owners won’t have any financing-rate increases during the terms of their loans, letting them plan their budgets reliably. While different lenders will offer different loan terms and conditions, with some restricting their loans on even new aircraft from five to seven years along with tight amortization schedules, while others may offer 10- and 12-year lending amortized over as long as 20 years, in the US it is clear that owners own their aircraft on average for periods of 42 months to five years before selling them again. Hayes suggests that in such cases an owner may
participate internationally, they may only be willing to finance aircraft operating or registered in particular jurisdictions. Together with the fact that all aircraft purchases are denominated in US$, which means that every non-US transaction always includes an element of foreignexchange cost, the reduced extent of financier competition in non-US transactions usually makes margins for financings outside the US somewhat higher than in US domestic deals, says Crichlow. Another factor affecting international deal margins is the age of the aircraft involved, says Robinson. For cultural and other reasons (e.g. US owners are much more accepting that they can buy and refurbish a used aircraft relatively inexpensively), business aircraft in Europe and Asia are generally much younger than
not be best served by closing a loan with a 20-year amortization: if they sell their aircraft after five years they might find that the amount they need to repay the lender to get out of the original loan is rather higher than the price for which they have sold the aircraft. Margins on acquisition loans for business aircraft internationally are usually higher than they are in the US, say Robinson and Crichlow. This is because the US BizAv market is so large and has a substantial number of banks and finance companies willing to lend or lease. This makes the US financing market very competitive and “margins tend to be razorthin”, says Crichlow. However, very few US financiers are willing to participate in transactions outside their huge domestic market—and even where some do
they are in the US. Additionally, many countries—particularly in Asia— have import regulations which prevent imports of aircraft older than a stated age.
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Loan Advance Rates
For the reasons discussed above, loan advance rates in transactions outside the US tend to be lower than in the US domestic market, even though margins are usually higher. Advance rates in the UK are usually in the 70-80% range, “with 85% once in a while for a really top credit,” Crichlow says. In more complex jurisdictions, lenders may be willing only to advance 60-65% of the purchase price, particularly on older aircraft. According to Robinson, pre-delivery payments (PDPs) on new aircraft can be financed at 70-75% of
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AVBUYER.com the ‘green’ delivery price. Interior completion predelivery payments can also be financed, but only for about a maximum of $30m and at a lower advance rate and faster loan amortization than is available for a green delivery PDP financing. In the US market, “for large corporate credits and ultra-high-net-worth individuals who undergo fully underwritten credit-based transactions,” with the indepth lender scrutiny of their finances and asset portfolios required in such deals, advance rates average 80-95%, says Hayes. “But even if the credit warrants that level of advance, I would recommend they shorten the overall amortization to 80-85% of loan-to-value after five years,” so the borrower doesn’t run significant risk of being underwater on the loan at the typical aircraft sale-decision time, he adds.
operating leases kept the residual value and rental costs of the aircraft off the lessee’s balance sheet. However, under ASC 842, “with tax-sensitive operating leases the lessee has to present-value back all of their rentals and put them on the balance sheet—the only thing remaining off-balance sheet is the residual value portion, which they’re not responsible for,” Hayes explains. This did away with one attribute which previously made operating leases of business aircraft popular with users. Operating leases in the US retain two other attributes, though. One is that the lessee has no risk exposure to the depreciation curve of the aircraft— just as in a car lease, the lessee hands the car back to the auto dealership after three years or so and walks away from it with little or no financial penalty, says Crichlow.
Leasing
As a result, says Robinson, in paying the monthly rentals the lessee is financing the use of the aircraft on purely a cash-flow rather than a credit basis, though usually a lease deposit of three-to-six months’ worth of lease rentals is required at the lease closing. The other attribute of operating leases is that, by transferring the tax benefits of depreciating the cost of the aircraft to the lessor, the lessee might receive a consideration from the lessor in the form of reduced rental amounts. Meanwhile, ’synthetic' leases are becoming more widely used for financing business aircraft in the US, notes Hayes. Synthetic leases may remain offbalance sheet in companies’ financial statements (companies should verify this with their business accountants), but the lessee retains ownership of the
Leasing of business aircraft remains popular with certain operators—usually “rated, strong large credits,” according to Hayes—as they continue to “manage” their aircraft ownership for financial statement-presentation purposes, as well as their tax position. Others realize they don’t need to own an aircraft, with all of the residual value and resale risk that ownership implies. The asset risk remains with the lessor, which in a lease is financing 100% of the purchase price of the aircraft. Two types of tax-based leases generally are used in the US: Operating leases and synthetic leases. Until two years ago, when the FASB ASC 842 accounting standard came into effect, replacing the previous GAAP ASC 840 standard in the US, 64 Vol 25 Issue 1 2021
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aircraft for tax purposes and thus can use Meanwhile synthetic' to shelter income-tax liability. Another reason for closing a synthetic lease is that, in such deals, most US states require sales tax to be paid not on the entire transaction at the time of closing but only on a monthly basis on the amount of the monthly rental, according to Hayes. So if an owner wants to sell an aircraft after five years, it can sell the aircraft out of the synthetic lease and when the sale concludes it will only need to have paid sales tax on five years’ worth of rentals, not on the entire original purchase price of the aircraft. PNC Aviation Finance typically offers corporate clients leases of seven to 10 years on business aircraft. However, recognizing that most operators will want to dispose of the aircraft after (say) five years, an early buy-out option is typically included, which the operator can exercise to sell or otherwise refinance the aircraft if it wishes. Some financiers specialize in offering shorterterm operating leases, with expectations that they will get the aircraft back. They then seek to lease or sell it elsewhere.
Gary Crichlow, Director, Aviation Finance, Arc & Co (www.arcandco.com)
Keith Hayes, PNC Aviation Finance (www.pnc.com)
Martin Ormon, Founder, Aircraft Finance Corporation (www.aircraftbanker.com)
Andrew Robinson, Founder, Arc & Co
In Summary…
The picture painted of the overall business aircraft financing landscape as we begin 2021 is one filled with opportunity for buyers of business jets. The leading specialists can provide a wide range of borrowing options – and for buyers entering the market with a clear idea of what they’d like to achieve through financing, those opportunities can be harnessed so that everyone’s a winner. T
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FINANCE Gerrard Cowan is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan
Tips for Financing BizJet Upgrades and Refurbishments Is it possible to finance an upgrade on a business jet? If so, what terms can be expected, and how should an owner/operator plan the project? Gerard Cowan speaks to three aircraft finance specialists… wners of pre-owned business jets often make modifications and upgrades to their aircraft, in everything from engine overhauls to avionics upgrades. What’s more, there is a wide range of financing sources available for such work. However, according to the experts, customers should weigh their options carefully… Upgrades can be financed through the same sources as acquisitions: for example, loans from banks, or leasing-related options. Typically they include improvements in airframes, engine overhauls, and aviation upgrades, says aviation analyst Brian Foley. So long as the improvement adds value, he says, “lenders will consider funding greater than 50%, but less than 100% of the upgrade”. According to Adam Meredith, president of AOPA Finance, the most frequent financing requests are for engine overhauls and new avionics/flight panels, though the company has also funded Wi-Fi systems, refurbishments and winglets.
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Typically the type of upgrade isn’t important, he told AvBuyer. The major issues are the level of financing being sought (including the current balance if applicable), and how much money the airplane will be worth upon completion.
Where to Source Financing for Upgrades
Assuming the loan-to-value (LTV) is reasonable – less than 85% — there are many options for borrowers, Meredith says. These first depend on whether the aircraft already has financing. If so, the best choice is usually to work something out with an existing lender for an additional advance, which most lenders will typically support. However, “There may be better options, which is why consulting first with another financing source makes sense.” Meredith adds. “The existing lender may no longer be the best fit. Either way, arming yourself with what ‘the market’ for your request is will be helpful when going back to your lender.” In some circumstances, refinancing with another www.AVBUYER.com
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lender can be a better alternative, Meredith explains. This decision will be influenced by a number of factors: • • •
How long has it been since the original loan was taken out? What is the current interest rate? What’s the lendable ‘value’ that the modifications will generate for the aircraft?
However, Meredith warns that it is almost impossible to secure a second loan on an aircraft, meaning a new lender would have to refinance the entire outstanding sum, as well as provide fresh financing for the upgrades. That’s because the vast majority of lenders aim to avoid the threat of a lien from another creditor, where another party may claim a legal right over an aircraft to pay a debt. But if no additional loan exists, “there are many lenders that would welcome the financing of the modifications”. www.AVBUYER.com
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Aviation Financing Expertise Still Matters…
The best financing option for business jet operators is to find a corporate aircraft lender with a dedicated aircraft group that understands the need for the latest modifications or upgrades, such as Wi-Fi, according to Ramy Sidhom, head of PNC Aviation Finance. A specialised aviation lender understands that such modifications can be expensive, and “can help owners move or roll an expensive modification into the overall financing structure,” he elaborates. However Sidhom warns that some lenders, including PNC, usually won’t finance standalone modifications, particularly those that do not add value to the asset. “In the current environment, where there has been an acceleration of ownership and new buyers in the market, we are seeing connectivity and additive modifications (such as Wi-Fi) being especially important,” he notes. “As with many industries, the coronavirus
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pandemic only accelerated the need to have stateof-the-art technology at your fingertips in order to stay better connected.”
Debt and Lease Financing Options
Vivek Kaushal, president and chief operating officer of Global Jet Capital, says that as pre-owned business jets “continue to represent terrific value, whether you are looking to install upgrades on a plane you own or on a plane you are acquiring, you’re on the right track”. The precise option for financing modifications and upgrades will depend on the nature of the work being done, he explains, though owners should have debt and lease financing options available to them. In the latter case, a lessor would provide capital by acquiring the aircraft, which the operator could then rent back. Kaushal notes that lenders usually want to approach any upgrade transaction holistically. “Experienced aviation lenders such as Global Jet Capital will typically have a better sense of the value accretion to the aircraft as a result of the upgrades. “If we have an existing loan or lease, we would look at the LTV of the financing following the upgrade, and make sure that is appropriate for that operator.”
Establishing the Worth and Appeal of an Upgrade
Meredith highlights a range of criteria that AOPA considers when deciding whether to finance an upgrade. As well as the age, make and model of the aircraft; the value the upgrade will generate; and the requested loan structure/affordability, Meredith also considers the likelihood that someone else – a future buyer – would want the upgrade. In other words, is there a risk that it makes the plane too ‘unique’? More fundamentally, it is important to consider how much of the upgrade is being financed, and how much liquidity the operator possesses. 70 Vol 25 Issue 1 2021
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Owners/operators should ask themselves similar questions, he warns, particularly whether the upgrade is worth it and if it will appeal to any future buyers. “Many people think their kids are the smartest or best-looking. Don’t get blinded by your own biases,” Meredith highlights. “Be sure to gain objective and honest feedback from trusted experts first.” Operators should work with an experienced advisor in evaluating any upgrade decisions, says Kaushal. Major changes to the interior, such as reconfiguring the seating plan, “rarely yield value proportionate to the costs incurred,” he explains. Even with accretive upgrades like avionics, the operator might be able to achieve the vast majority of their desired objectives with a more reasonably priced option. “The reason all this is important is that it will directly impact a lender’s ability to extend additional financing against the cost of the upgrade,” he adds.
Speak to Your Lender Early
Kaushal said owners should bring their lender into the financing discussion as soon as they know what upgrades they have in mind, so that the lender can give preliminary indications of the options they can provide. “Sometimes this may result in the operator appropriately adjusting the scope of work to reflect the financing considerations.” If the modifications do not totally rise to the proposed value, PNC Aviation Finance may not move forward with the exact financing amount, says Sidhom. “Just because a client requests it, doesn’t mean they will necessarily get the dollar-for-dollar amount,” he adds. “We recommend that as operators start to explore the upgrade process, they plan to put some equity into the upgrade themselves. “More often than not [an upgrade] won’t be 100% financed,” he concludes. T www.AVBUYER.com
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Is Private Charter Really so Expensive? Charter vs. Airlines When considering if ad-hoc charter is a viable travel solution, versus scheduled airline services, there are several factors that need to be considered besides the actual cost. René Armas Maes explores these… f privacy and multi-city stops are your top priorities, no other travel solution can beat Business Aviation. Similarly, if onboard meetings will be held (with confidential information shared), or if a group of six to eight senior employees need to travel together, then Business Aviation is likely to be the right travel solution. A good percentage of scheduled airline services fly via hub-and-spoke systems that allow them to optimize fixed- and human-capital resource utilization. This also increases the overall time it takes to travel, with aircraft transfers and security lines and queue bottlenecks at airports at the pre-
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boarding, boarding to deplaning stages. Those delays can translate into significant corporate losses in terms of diminished productivity, revenue, market share, and face-time with key customers or prospects. Business Aviation, on the other hand, increases the value that a corporation can deliver to shareholders and core customers, maximizing the productivity of a team, as well as the time it takes to respond to a client’s need. When evaluating your options, it is vital to analyze your travel history. At a first glance, Scheduled Airline transportation may make more sense financially, but often is not practical from a
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Ownership 1.qxp_Finance 15/12/2020 14:32 Page 2
CHARTER TABLE A: Scheduled Airline vs Business Aviation Productivity Findings (For a six-hour, one-way direct commercial flight, a team of four executives gains 26.4 hours of productivity using Business Aviation)
time-saving or productivity perspective. As an example, one Senior Executive for an S&P 500 company commented that his corporation noticed typical time-savings of 50-75% on certain trips using Business Aviation compared to aboard the scheduled airlines. The reason was down to the fact that the executives could not have productive work days sitting in airport terminals, or on a ramp.
What are the Savings of Private Charter vs Scheduled Airline?
SOURCE: CONSULTANT ANALYSIS
TABLE B: Scheduled Airline vs Business Aviation Productivity Model & Assumptions
Recently, I conducted a business case for a client. Typically, the client’s CEO flies a round-trip from the East Coast (JFK, NYC) to the West Coast (SFO, CA) with three Vice Presidents. They make the trip non-stop, business class aboard the scheduled airlines. The trip is flown four times annually, and the average total airline cost for all four executives is US$8,225. Tickets are usually purchase two or three days ahead of departure. Having gathered some confidential information from my client (including the CEO’s and Vice-Presidents’ salaries and benefits, their expected revenue turnover, and the expected average productivity onboard the scheduled airline service), we then collected ad-hoc charter quotes for Mid-Size Jets able to connect Teterboro, New Jersey with Oakland Metropolitan airport non-stop, carrying four passengers. The highest quote was $68,000, and the lowest was $59,000. Does that automatically make the airlines the best value solution? Let’s explore… • When looking at a one-way ad-hoc business aircraft charter flight, the executives would gain an estimated 26 hours of additional productivity, saving 66% of a full salary day per head (assuming a 10-hour shift). • The executives’ productivity factors were individually 10x, 3.3x, and almost two times higher on the ground, before departure/at arrival and en route to the destination, respectively, and achieved a productivity KPI of 7.0x in favor of Business Aviation, versus the scheduled airline option (as shown in Table A, top, left).
SOURCE: CONSULTANT ANALYSIS
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Even against non-stop airline services, it is evident the ad-hoc Business Aviation charter option offers a good return in terms of employee productivity. But let’s delve a little more deeply... www.AVBUYER.com
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Building the Charter Case: Creating Time & Money
Not depicted in Table A is the fact that the increase in productivity of its executives (compared to travelling with the airlines), saves the corporation $34,000 in wages that are otherwise lost through unproductive travel time. The corporation’s stated goal is to turn at least three-to-four times the executives’ wages into revenue-earned activity, allowing the corporation to grow and prosper. As depicted in Table B (bottom, left), that brings between $102,000 and $137,000 in top-line revenue to the corporation. Based on cost, the round-trip ad-hoc charter per passenger is 7.7x higher (or $15,750 greater) than the average cost of flying with the scheduled airlines. However, in the case of our study, that is reduced by 56% (to 3.4x the cost of the airlines, per passenger), when executive salary savings and productivity gains are factored. Further, by assuming scheduling flexibility for the ad-hoc charter service, including departure and arrival, and higher sales conversion rates that are enabled through more customer facetime/extra time for sales prospecting, and additional time for strategic planning initiatives, the benefits to the corporation, as shown in Table B, for a single return private charter flight were estimated to be between $74,000 and $108,000. Simply put, the time savings equate to revenue earning with the private charter option. Ad-hoc charter may still be the most cost-effective option for a corporation in certain circumstances compared to the scheduled airline service.
areas. This study considered a scheduled airline’s connecting service (requiring a subsequent two-hour flight). As with the first study, the conclusion showed a loss of an additional five hours of productivity for our executives, whereas if the corporation booked a charter flight, the employee KPI would jump to 7.2x, again favoring the private charter option (see Table C, below).
In Summary…
Finally, our study featured a Mid-Size Jet. Ad-hoc charter generally starts at around $2,500 per hour for an EntryLevel/Light Jet, rising to $5,000 for a Mid-Size Jet, and $10,000 per hour for a Large Jet. Turboprops, meanwhile, are available for charter starting at $1,200 per hour. Prices vary greatly in today’s highly negotiable private charter market. If you have yet to use Business Aviation – and particularly ad-hoc Charter – you may well be surprised by the extra value it brings, both to your top and bottom lines. And if your projected charter requirement for the year exceeds 25 hours, you’ll find further savings can be made through a Jet Card program, which is a whole other story and opportunity to optimize your executive’s time and corporate profits…
“If you have yet to use Business Aviation – and particularly adhoc Charter – you may well be surprised by the extra value it brings, both to your top and bottom lines.”
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/
TABLE C: Scheduled Airline vs Business Aviation Productivity Model Findings – Two Hour Connecting Flight
Develop a Plan Based on Individual Circumstances
For companies measuring the feasibility of private charter, it is important to develop a corporate travel optimization model including multiple scenarios. It should focus on labor productivity, corporate income, and return on investment. The goal should always be to assess the highest value creation strategy to move executives around. For the above client, a second business case was run to consider connecting flights for accessing remote www.AVBUYER.com
SOURCE: CONSULTANT ANALYSIS
AVBUYER MAGAZINE Vol 25 Issue 1 2021
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CHARTER 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/
How to Choose the Right Jet Card… When do jet cards make sense? Are all jet cards made the same? What are the crucial differences to know about when choosing the best one for you? David Wyndham provides some practical pointers… or the infrequent Business Aviation user, it makes little sense to invest in a whole aircraft. If the anticipated requirement for private aircraft travel is for up to 150 hours per year, ad-hoc charter or a jet card program is often the best financial alternative. Similarly, if your travel needs fluctuate between vastly different trip lengths and passenger loads, the flexibility to match the trip need to the aircraft is often best met by a program offering the ability to choose the right aircraft for each mission. For those who are new to Business Aviation, I often recommend trying out various aircraft and not making any long-term commitments. I’ve seen
F
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many new clients who start with one pattern of travel, only to find more frequent, and more varied uses of a business aircraft are required. Their travel needs evolve over the first year or so of use. If any of this describes you, charter can be an excellent option. But who should you choose? According to the National Business Aviation Association (NBAA), there are over 2,100 FAAlicensed aircraft charter operators in the US. These range from small single-engine piston aircraft operators to large turbine fleet operators. Legally, a charter operator must be licensed by the FAA to provide air charter services. The FAA and Department of Transportation
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(DOT) in the US have regulations that govern commercial air operations. There are also private organizations that quantify and verify the safety qualifications of the charter providers (see the links at the end of this article for additional resources). A handbook and online listing of licensed air charter operators worldwide is available from the Air Charter Guide.
When do Jet Cards and Memberships Work Best?
Jet Cards and Membership programs are a type of pre-paid charter. If your travel needs typically come between 50 and 150 hours annually, jet cards and
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membership programs are a style of block charter that could be useful to you. You pre-purchase a block of hours at a guaranteed price. The purchase offers a guaranteed hourly rate for the size of aircraft. Taxes may, or may not be included, and there may be time limitations on how long the process guarantee lasts (typically one year). Most programs start with 25-hour cards, with some special offers at 10-hour increments. Some programs offer newer aircraft and one-way billing. Membership programs offer specific aircraft types and customization for individuals or businesses. The aircraft and crews operating under these
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CHARTER
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Business Aircraft Charter Safety Resources programs are the same operators as the ad-hoc charter providers. However, many of the card and membership programs are operated by thirdparties who offer value-added services (such as air and ground transportation bookings, hotels, and under-concierge-level trip planning). Those considering jet cards and membership programs should understand the restrictions, however. The following points raise some useful questions to answer before selecting a jet card or membership: • • • • • • •
Are the aircraft types or ages guaranteed? What about minimum leg lengths? How does the program bill for international travel, fuel cost surcharges, and other fees/taxes? How long are the prices guaranteed for? Are unused funds refundable? Does the provider offer one-way pricing? What is important to you?
Safety for Charter, Cards and Memberships
While safety is of paramount importance in regard to charter, jet cards and membership programs, not all safety ‘ratings’ are equal. The top standard of safety involves passing – at the highest level – a third-party safety audit. That audit also verifies that a formal Safety Management System is in place. There are several entities that perform such audits. Given the number of charter certificate holders and jet card/membership programs, an independent, third-party audit ought to be a required minimum for those who are truly interested in safety. (You’ll find some useful links and resources for aviation safety below.)
Following are some resources for aviation safety, applicable to business aircraft charter: •
Air Charter Safety Foundation: Organization
setting safety standards and has an audit process (www.acsf.aero)
•
ARGUS: Performs independent safety audits of
charter operators
(argus.aero/product/charter-operator-ratings/). •
Wyvern: Performs independent safety audits of
charter operators
(www.wyvernltd.com/wingman-standard).
Additional standards and information on best practices for business aircraft and audit-based certifications can also be found at: •
International Business Aviation Council (IBAC),
•
Avoid Illegal Charter operators – what to look for
IS-BAO Safety Certification (www.ibac.org/is-bao).
and how to verify your operator:
http://www.avoidillegalcharter.com/for-consumers •
NBAA Air Charter Consumer Guide
https://nbaa.org/flight-department-
administration/aircraft-operating-ownership-options/ aircraft-charter/aircraft-charter-consumer-guide/
In Summary
Charter, jet cards and membership programs are gaining in popularity as new and younger buyers look to enjoy the service, as opposed to full ownership. For those seeking charter solutions to meet their travel needs, the above paragraphs should help provoke some important questions to ask the charter broker, the provider and yourself. For those heavier users of air travel, charter and card programs are the first step to evaluate in the world of aircraft ownership. T
Read About
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AIRCRAFT OWNERSHIP
at AVBUYER.com
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AirCompAnalysis.qxp_ACAn 15/12/2020 14:16 Page 1
JET COMPARISON
BOMBARDIER GLOBAL 5500
GULFSTREAM G500
Jet Comparison: Gulfstream G500 vs Bombardier Global 5500 How do the Gulfstream G500 and the Bombardier Global 5500 compare side-by-side? What are the advantages offered by each model? Mike Chase analyses the performance and productivity parameters. ver the following paragraphs we’ll consider key productivity parameters for the Gulfstream G500 and Bombardier Global 5500 (including payload, range, speed, and cabin size) to establish which aircraft provides the better value in the Large Jet market. Does speed drive a decision to buy a jet, or longer range? It is hoped that the following jet comparison will help clarify.
O
Gulfstream G500
The Gulfstream G500 is a fairly new jet on the market, having entered service in 2018, replacing the Gulfstream G450. Powered by a pair of Pratt & Whitney PW814GA engines, each producing 15,144 pounds of thrust (lbst), the G500 can reach a maximum altitude of 51,000 feet – and, according to Gulfstream, can travel at up to Mach 0.925. The Gulfstream G500's advanced ventilation system can replace the air in the cabin with fresh air in just two minutes,
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while in the cockpit the jet is equipped with active side-stick control technology. As of this writing, since deliveries began there were 51 wholly-owned Gulfstream G500 business jets in operation worldwide, with 73% of the fleet based in the US.
Bombardier Global 5500
The Bombardier Global 5500 is even newer to the market, having received FAA certification in December 2019. The newly certificated Rolls-Royce Pearl-15 engines each provide 15,125lbst, and impressively low fuel burn. Like the G500, the Global 5500 can reach a maximum altitude of 51,000 feet. The cockpit is equipped with Collins Aerospace’s ProLine Fusion-based Vision Flight Deck, which has the new feature of Combined Vision System (CVS), and overlays an infrared video image on a synthetic graphic. With the Global 5500 still being very new on the market, at the time of writing there were only two wholly-owned Bombardier Global 5500 business jets in operation. www.AVBUYER.com
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GULFSTREAM
BOMBARDIER
vs.
G500
Global 5500
(Manufactured between 2018-Present)
(Manufactured between 2019-Present)
HOW MANY
13
$48.5 Million
EXECUTIVE
SEATS
13
$46 Million (2020 Model)
(2020 Model)
WHICH OF THESE LARGE JETS WILL COME OUT ON TOP? HOW FAR
CAN WE GO?
Full Fuel with 4 Pax (nm) Gulfstream G500
5,292 5,978
Global 5500
WHAT’S THE
HOW MUCH
PAYLOAD CAN WE TAKE?
Gulfstream G500
(Lbs)
5,250
HOW MANY
HOW MANY
OPERATION?
EACH MONTH?
UNITS IN
CRUISING SPEED?
(Knots) 488
Gulfstream G500 7,139
Global 5500
LONG RANGE
NEW/USED SOLD
Global 5500
470
WHAT’S THE
COST PER HOUR?
2
51
2 (5.9%)
0 (0%)
Gulfstream G500 Global 5500
$915 $773
12-Month Average Figure
(% = Global Fleet For Sale) Sources used: JETNET, B&CA and Chase & Associates.
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JET COMPARISON
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Table A - Payload & Range Comparison
Payload & Range Comparison
When comparing business jets, an important area for potential operators to focus on is payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A, left, shows the Bombardier Global 5500’s ‘Available Payload with Maximum Fuel’ to be 2,930lbs, which is only slightly more than the 2,900lbs offered by the Gulfstream G500.
Gulfstream G500 Bombardier Global 5500
79,600 92,500
30,250 38,959
MTOW (lb)
Max Fuel (lb)
5,250
7,139
Max Payload (lb)
Source: OEMs, B&CA
2,900
2,930
Avail Payload w/Max Fuel (lb)
4,562
4,949
Max Payload w/Avail Fuel IFR Range (nm)
1,312 1 334 1
Chart A - Cabin Comparison Bombardier Global 5500
6.2 ft
6.2 ft
Gulfstream G500
J
Cabin Comparison
As shown in Chart A, left, the cabin width of the Bombardier Global 5500 is 7.9ft, which is slightly wider than the Gulfstream G500 (7.6ft). Both aircraft offer the same cabin height (6.2ft). The Gulfstream G500 has a longer cabin than the Bombardier Global 5500 (41.5ft vs 40.7ft) and provides more overall cabin volume (1,715cu.ft versus 1,620cu.ft). These cabin volume measurements are the net main seating area, and do not factor the lavatory. Configured with executive seating, the Gulfstream G500 and Bombardier Global 5500 typically provide room for thirteen seats with two crew (the G500) and three crew (Global 5500). The Global 5500 provides more internal luggage volume (195cu.ft) than the Gulfstream G500 (175cu.ft), and neither jet offers external luggage space.
Range Comparison
7.9 ft
7.6 ft Source: UPCAST JETBOOK
Chart B - Range Comparison Gulfstream G500 Bombardier Global 5500
5,292 (nm) 5,978 (nm)
4 Pax w/avail fuel 4 Pax w/avail fuel
Using Wichita, Kansas, as the start point, Chart B (left) shows the Gulfstream G500 has a range of 5,292nm with four passengers and available fuel, which is less than the Global 5500 at 5,978nm. Note: For business jets, ‘Four Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a 200nm alternate. This range does not include winds aloft or any other weather-related obstacles.
Powerplant Details
As mentioned, the Gulfstream G500 has two Pratt & Whitney PW814GA engines, providing 15,144lbst each. These burn 363 gallons of fuel/hour (gal/hr). The Bombardier Global 5500 has two Rolls-Royce Pearl 15 engines producing 15,125lbst each. These burn 395gal/hr of fuel.
Cost per Mile Comparison
Source: Chase & Associates
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Chart C, overleaf, details ‘Cost per Mile’, comparing the Gulfstream G500 and the Bombardier Global 5500 factoring direct costs and with each aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload. The Gulfstream G500 has the lowest cost per mile at $10.72 per nautical mile, which is
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ACJ 320 s/n 1868 • 4,342 hours and 1,296 landings only since conversion to ACJ320 • Complete ACJ Avionics Suite with TCAS 7.1 • 6 year maintenance check has recently been completed • Certified for 26 passengers with 15 passenger sleeping configuration
Off Market 2013 Gulfstream G550 • 3200 Total hours • Cabin Configured for 18 Passengers with Forward Galley • Engine & APU Enrolled on Programs • Aircraft Fully 2020 Compliant with Enhanced Navigation • HUD with EVS, plus SVS and RAAS and many other options
2014 Gulfstream G450 s/n 4303 • Elite Interior Package (US$ 2 million extra at manufacture) • Fresh 72 Month Inspection completed at Gulfstream, Savannah in April 2020 • Engines and APU Enrolled on Programs • Aircraft Fully 2020 Compliant • Forward Galley
Off Market 2013 Piaggio 180-11 Avanti • 235 Total hours • Cabin Configured for 6 Passengers • ADS-B Out • Rockwell Collins Proline 21 Avionics Suite • GoGo ATG 5000 Internet
Off Market 2011 Phenom 300 • 970 Total hours • G1000 Prodigy Avionics System • Engines and Airframe Enrolled on Programs • Cabin Configured for 7 Passengers • Will be Delivered with ADS-B Out v2 Compliance
Wanted Off Market 2014- 2016 Learjet 75 • Years: 2015 – 2017 • Enrolled on Full Programs • Low Total Time • Fully 2020 Compliant
jetsales@actionaviation.com
+44 7715 990936
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JET COMPARISON
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Chart C – Cost Per Mile Comparison
J
6% less expensive to operate than the Bombardier Global 5500 ($11.41 per nautical mile).
Variable Cost Comparison
Gulfstream G500
The ‘Variable Cost’, illustrated in Chart D (middle, left) is defined as the estimated cost of fuel expense, maintenance labor expense, scheduled parts expense, and miscellaneous trip expense (e.g. 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 Gulfstream G500 ($915/hr) has a higher variable cost than the Global 5500 ($773/hr). That’s a difference of $142 (18%).
$10.72
Bombardier Global 5500
$11.41 $5.00
$0
$10.00
US $ per nautical mile
*1,000 mission costs
Source: JETNET
Chart D – Variable Cost Comparison
Gulfstream G500
Aircraft Comparison Table
$915
Bombardier Global 5500
$773 $0
$200
$400
$600
$800
$1,000
US $ per hour Source: JETNET
Depreciation Schedule
Table B - Aircraft Comparison Table Gulfstream G500 Bombardier Global 5500
488
470
Long Range Cruise Speed (Kts)
1,715 1,620
5,292 5,978
Cabin Volume Cu Ft
4 Pax w/Avail Fuel IFR Range (nm)
$48.5
$46
New Price (2020 Model) $USm
*Average Full Sale Transactions in the past 12 months, as of Nov. 2020; Source: JETNET Data courtesy of B&CA; JETNET;
51
2
In Operation
5.9%
0
% For Sale
0%
Table B (bottom, left) contains the new prices (per B&CA) for the Gulfstream G500 and the Bombardier Global 5500 ($48.5m and $46m, respectively). Also, listed are the long-range cruise speed and range numbers (per B&CA), while the number of aircraft in-operation, the percentage for sale, and average sold are from JETNET. At the time of writing, the Gulfstream G500 had three aircraft ‘for sale’ on the used aircraft market (representing 5.9% of the fleet). By comparison, there were no Global 5500 jets ‘for sale’. The average number of new and used transactions (units sold) per month over the previous 12 months was two for the Gulfstream G500.
22
N/A
Average Sold per Month*
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). 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.
84 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
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8
2000 FALCON 50EX, S/N 296 Asking $3,200,000
1995 FALCON 2000, S/N 007 Asking $4,200,000
1996 BEECHJET 400A w/ G5000, S/N RK-110 Asking $1,100,000
2006 GULFSTREAM G150, S/N 209 Asking $3,495,000
1992 LEARJET 31A, S/N 048 Asking $595,000
2002 CITATION ENCORE, S/N 560-0605 Make Offer!
1982 KING AIR B200 G1000, S/N BB-1025 Asking $1,295,000
1980 CITATION II, S/N 550-0166 Asking $495,000
1979 KING AIR 200XPR BLACKHAWK, S/N BB-481 Asking $1,250,000
1981 LEARJET 55, S/N 006 Asking $595,000
1977 KING AIR 200XPR BLACKHAWK, S/N BB-226 Asking $795,000
1977 BEECHCRAFT B60 DUKE, S/N P428 Price Reduced to $199,000
Also Available: Citation 500 S/N 500-0348 ‧ Citation III S/N 650-0032 ‧ Falcon 50 S/N 174 ‧ Learjet 31A S/N 65 ‧ Cheyenne IIIA S/N 5501058 ‧ Beechcraft P58 Baron S/N TJ-391 ‧ Beechcraft B60 Duke S/N P-505 ‧ Cessna T206H S/N T206-08989 ‧ Cessna T210N S/N T210-64440 +1.636.532.6900
+1.630.377.6900
+1.248.666.9800
+1.480.604.2800
+44 7529 777 007
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JET COMPARISON
Table C - Part 91 & 135 MACRS Schedule 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 - Gulfstream G500 MACRS Depreciation Schedule New Gulfstream G500 - Private (Part 91) Full Retail Price - Million $48.500 Year
1
Rate (%)
20.0%
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
$9.700
$38.800 $9.700
2
3
4
5
32.0%
19.2%
11.5%
11.5%
$23.280
$13.968
$8.381
$2.794
$15.520
$25.220
$9.312
$34.532
$5.587
$5.587
$40.119
$45.706
6
5.8%
$2.794
$0.000
$48.500
New Gulfstream G500 - Charter (Part 135) Full Retail Price - Million 48.500 Year
1
Rate (%)
14.3%
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
2
24.5%
$6.931
$11.878
$6.931
$18.808
$41.569
$29.692
3
17.5%
$8.483
$21.209 $27.291
4
12.5%
$6.058
$15.151 $33.349
5
8.9%
6
8.9%
7
8.9%
8
4.5%
$4.331
$4.326
$4.331
$2.163
$37.680
$42.006
$46.337
$48.500
$10.820
$6.494
$2.163
$0.000
Source: B&CA
Table E - Bombardier Global 5500 MACRS Depreciation Schedule
Asking Prices & Quantity
New Bombardier Global 5500 - Private (Part 91) Full Retail Price - Million $46.000 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
20.0%
2
32.0%
$9.200
$14.720
$9.200
$23.920
$36.800
$22.080
3
19.2%
4
11.5%
5
11.5%
6
5.8%
$8.832
$5.299
$5.299
$2.650
$32.752
$38.051
$43.350
$46.000
$13.248
$7.949
$2.650
$0.000
New Bombardier Global 5500 - Charter (Part 135) Full Retail Price - Million $46.000 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
14.3%
2
24.5%
$6.573
$11.265
$6.573
$17.839
$39.427
$28.161
Source: B&CA
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3
17.5%
$8.045
$20.116 $25.884
4
12.5%
$5.745
$14.370 $31.630
5
8.9%
6
8.9%
7
8.9%
8
4.5%
$4.108
$4.103
$4.108
$2.052
$35.737
$39.841
$43.948
$46.000
$10.263
$6.159
There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a twelve-year recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a seven-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year. The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased and placed in service before January 1, 2023. This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022 the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. Table D (left) depicts an example of using the MACRS schedule for a 2020model Gulfstream G500 in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods. The price is as published by B&CA at the time of writing. Table E, (below, left) depicts an example of using the MACRS schedule for a 2020-edition Bombardier Global 5500 in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. The price is per B&CA.
$2.052
$0.000
At the time of writing, there were three Gulfstream G500 business jets available for sale on the used aircraft market, and only one had an asking price ($51m), while the other two invited offers. With just two Bombardier Global 5500s in operation, none were available on the used market. While each aircraft serial number is unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft â&#x20AC;&#x201C; even between two aircraft from the same year of manufacture. The final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.
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Chart E - Productivity Comparison
Productivity Comparison
1. 2. 3.
Four Passenger Range (nm) with $ available fuel; The long-range cruise speed flown to achieve that range; The cabin volume available for passengers and amenities.
Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size.
$75.0
Prices (millions)
The points in Chart E, right, are centered on the same aircraft. Pricing used in the vertical axis is as published in B&CA. The productivity index requires further discussion, since factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:
$60.0 $45.0
2020 Gulfstream G500 2020 Global 5500
$30.0 $15.0 $0.0 0.000
The Faster Speed Vs Longer Range Question
3.000
6.000
9.000
Index (Index = Speed x Range x Cabin Volume / 1,000,000,000)
The Gulfstream G500 offers a faster speed but a shorter range than the Global 5500. The ‘Available Payload with Maximum Fuel’ is nominally lower than that of the Bombardier Global 5500, but the Gulfstream G500 cabin volume is greater. The Bombardier Global 5500 is purchased at a lower price ($46m vs $48.5m) when new, and has an 18% more frugal hourly variable operating cost than the Gulfstream G500. It is clear that would-be buyers of one of these Large Jets would have to weigh the capabilities of each very carefully against their specific mission need to determine which one is the best fit for their flight department. A further consideration will come into play once these jets build a track record in the pre-owned market and more becomes clear about how each depreciates with age. Within these paragraphs we have touched upon several of the attributes that business jet operators value, although there are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buying decision. 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 jets offer great value in the market today. T
Compare, Contrast, Decide with AvBuyer www.AVBUYER.com
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
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Values Intro.qxp_Finance 15/12/2020 13:11 Page 1
VALUES - LARGE CABIN JETS
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Business Aircraft Values: The Large Cabin Choice There are occasions when the operator’s mission dictates an aircraft of larger capacity. This month our value study focuses on our definition of Large Cabin and Ultra-LongRange business jets. he average Large Cabin and Ultra-Long-Range jets share more in common than they differ, with similar cabin sizes and comparable cruise speeds ranging roughly between 450-500kts. For the purpose of this month’s focus, we’ll categorise Large Cabin and Ultra-Long-Range jets under the generic category of ‘Large Cabin jets’, on the basis of their shared characteristics, and MTOWs that generally range between 38,000-100,000 pounds. Large Cabin jets have much in their favor. Seatsfull range capabilities typically go up to, and into the 6,000nm range, making these effective nonstop continent and ocean-crossing machines. The fewer the stops, the shorter the overall trip time! One disadvantage the Large Cabin jets have over their Small and Medium jet kin is their need for runways longer than 6,000ft, which restricts the number of airports they can use by comparison. Nevertheless, for the trans-oceanic traveller, the advantages offered by these airplanes far outweigh the negatives. Where the Large Cabin airplanes really excel (as the name would suggest) is in their cabin capacities. A cabin will typically stretch from 30-40 feet or more, enabling operators to enjoy a wider array of finishing options and office capabilities than jets in the smaller segments can provide.
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Cabin heights in excess of six feet guarantees stand-up cabin comfort, while seating capacity of 8-18 is typical. Naturally, the size and range capabilities of Large Cabin jets don’t come cheaply, and you’ll need a larger fuel budget, more hangar space and a larger maintenance budget. Yet for the company with the need, the Large Cabin jet will rarely prove too small, and only occasionally be too large for an airport you’d prefer to access. In these situations, supplemental charter is the answer.
Large Cabin Jet Price Guide
The following Large Cabin Jets’ Average Retail Price Guide represents current values published in the Aircraft Bluebook–Price Digest. The study spans model years from 2001 through Winter 2020. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Dassault Falcon 2000LXS values reported in the Winter 2020 edition of the Bluebook show $23.0m for a 2017 model, $21.0m for a 2016 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration.
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Aradian November.qxp 20/10/2020 09:54 Page 1
File photo
Gulfstream 450
Gulfstream 550
Several aircraft available
Several aircraft available
2015 Citation XLS+
2012 Embraer Phenom 300 1,495 hours. ESP Gold and Embraer Executive Care. EU Ops compliant. Synthetic Vision. In-flight phone and datalink. ADS-B compliant
1,725 hours. Power Advantage Plus. Aux Advantage. ProParts. ADS-B compliant. Iridium satcom
Gulfstream GIV SP
Gulfstream GV
Several aircraft available
Several aircraft available
2002 Eurocopter EC135T2
2005 Airbus EC120B
2670 hours. Air conditioning. Single/Dual pilot IFR
1490TT. Recent paint and interior. Air conditioning. Engine particle filter
ALSO OFFERING: Beech King Air C90GTi, B200, 350. Hawker 800XP, 900XP. Bell 412EP Call/Email For Details
www.aradian.com UK office Tel. +44 1481 233001 Fax.+44 1481 233002 steverogers@aradian.com ALSO IN: Middle East, South Africa, Russia, Kazakhstan, Spain, Germany and India
Retail Values May2019.qxp_RPG 15/12/2020 13:13 Page 1
VALUES - LARGE CABIN JETS
Large Cabin Jets: Average Retail Price Guide MODEL YEAR $
2020 US$M
2019 US$M
2018 US$M
2017 US$M
2016 US$M
2015 US$M
2014 US$M
2013 US$M
2012 US$M
2011 US$M
MODEL 10.0
BOMBARDIER CHALLENGER 850ER 23.0
BOMBARDIER CHALLENGER 650
19.0
17.0
15.0
14.0
BOMBARDIER CHALLENGER 605
-
-
9.0
8.0
10.5
10.0
9.5
9.0
8.5
13.0
BOMBARDIER CHALLENGER 604 BOMBARDIER GLOBAL 7500
70.0
64.0
BOMBARDIER GLOBAL 6500
48.0
44.0
BOMBARDIER GLOBAL 6000
40.0
35.0
31.0
29.0
27.0
25.0
23.0
21.0
19.0
BOMBARDIER GLOBAL 5000
36.0
29.0
27.0
24.0
22.0
20.0
18.0
16.0
14.0
13.0
17.0
16.0
21.0
19.0
14.5
12.5
17.5
16.5
BOMBARDIER GLOBAL EXP XRS BOMBARDIER GLOBAL EXPRESS DASSAULT FALCON 8X
53.0
47.0
42.0
39.0
37.0
DASSAULT FALCON 7X
45.0
38.0
34.0
30.0
27.0
25.0
23.0
22.0
DASSAULT FALCON 2000LXS
30.0
27.0
25.0
23.0
21.0
19.0
18.0
16.5
DASSAULT FALCON 2000S
26.0
22.0
20.0
18.0
17.0
16.0
14.0
12.0
DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASy DASSAULT FALCON 2000EX EASy DASSAULT FALCON 2000EX DASSAULT FALCON 2000 36.0
DASSAULT FALCON 900LX
31.0
26.0
24.0
22.0
20.5
19.5
18.5
41.0
38.0
36.0
32.0
26.0
24.0 22.0
20.0
18.0
20.0
19.0
17.0
16.0
15.0
14.0
13.0
12.0
10.0
13.0
11.0
10.0
8.0
7.5
DASSAULT FALCON 900DX DASSAULT FALCON 900EX EASy DASSAULT FALCON 900EX DASSAULT FALCON 900C EMBRAER LINEAGE 1000E EMBRAER LINEAGE 1000 EMBRAER LEGACY 650 EMBRAER LEGACY 600 EMBRAER LEGACY 135BJ GULFSTREAM G650ER
62.0
53.0
45.0
42.0
40.0
38.0
36.0
34.0
32.0
GULFSTREAM G600
54.0
49.0
GULFSTREAM G550
40.0
35.0
32.0
29.0
26.0
24.0
22.0
20.0
19.0
18.0
GULFSTREAM G500 (NEW MODEL)
44.0
38.0
35.0 15.0
14.0
14.0
13.0
10.0
9.0
GULFSTREAM G500 (OLD MODEL) 20.0
GULFSTREAM G450
18.0
17.0
16.0
15.0
GULFSTREAM G400 GULFSTREAM G350 GULFSTREAM G300 GULFSTREAM GV GULFSTREAM GIV-SP AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
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What your money buys today
Winter 2020 2010 US$M
2009 US$M
2008 US$M
2007 US$M
2006 US$M
7.0
6.0
5.0
4.0
3.0
8.0
7.5
7.0
6.5
2005 US$M
2004 US$M
2003 US$M
2002 US$M
2001 US$M
MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 650
5.9
BOMBARDIER CHALLENGER 605 5.6
5.3
5.0
4.7
4.5
4.3
BOMBARDIER CHALLENGER 604 BOMBARDIER GLOBAL 7500 BOMBARDIER GLOBAL 6500 BOMBARDIER GLOBAL 6000
12.0
11.0
10.0
9.0
8.0
7.0
15.0
14.0
13.0
12.0
11.0
10.0 8.5
BOMBARDIER GLOBAL 5000 BOMBARDIER GLOBAL EXP XRS 8.0
7.5
7.0
6.5
BOMBARDIER GLOBAL EXPRESS DASSAULT FALCON 8X
17.0
16.0
15.0
14.0
DASSAULT FALCON 7X DASSAULT FALCON 2000LXS DASSAULT FALCON 2000S
10.5
10.0
9.5
9.0
8.5
8.0
9.5
9.0
9.0
DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASy
8.5
8.0
7.5
6.0
5.5
5.0
7.0
DASSAULT FALCON 2000EX EASy
6.0
5.5
4.5
4.3
DASSAULT FALCON 2000EX 4.0
3.7
15.5
DASSAULT FALCON 2000 DASSAULT FALCON 900LX
11.5
11.0
10.5
10.0
9.0
8.0
14.5
14.0
13.5
13.0
12.0
11.0
6.4
DASSAULT FALCON 900DX 10.0
6.2
9.0
DASSAULT FALCON 900EX EASy
8.0
7.5
7.0
6.0
5.8
5.6
DASSAULT FALCON 900EX DASSAULT FALCON 900C EMBRAER LINEAGE 1000E
16.0
14.0
EMBRAER LINEAGE 1000
9.0 7.5
EMBRAER LEGACY 650 7.0
6.5
6.0
EMBRAER LEGACY 600 5.5
5.0
4.5
4.2
4.0
EMBRAER LEGACY 135BJ GULFSTREAM G650ER GULFSTREAM G600
17.0
16.0
15.0
14.0
13.0
12.0
11.0
10.0
GULFSTREAM G550
13.0
12.0
11.0
10.0
9.0
8.0
7.0
6.0
GULFSTREAM G500 (OLD MODEL)
12.0
11.0
10.0
9.0
8.0
7.0 7.5
7.0
GULFSTREAM G400
5.0
4.5
GULFSTREAM G300
GULFSTREAM G500 (NEW MODEL)
8.5
8.0
7.5
7.0
6.5
GULFSTREAM G450
6.0
GULFSTREAM G350
9.0
8.5
GULFSTREAM GV
5.1
4.9
GULFSTREAM GIV-SP
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
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Flight Dept 1 JAN21.qxp_Finance 16/12/2020 12:24 Page 1
FLIGHT DEPARTMENT MANAGEMENT With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer. https://www.linkedin.com/in/andrefodor/
Integrate the Right Jet into Your Flight Department (Pt 1) When it comes to buying a business jet, everyone has their own ideas about which is best. How can you, as an aviation manager, steer the direction of the discussion? Andre Fodor shares tips in this three-part mini-series… riends working in aircraft sales describe a positive uptick in inquiries from firsttime buyers lately. And, I have held meetings with new clients looking to purchase airplanes and seeking guidance to get things right from the start. These meetings yield interesting insights. For example, often, I learn just how far people may be from selecting the right airplane. Such oversights can lead to a buyer’s deep regret, and a soured ownership experience. With that in mind, we will consider the initial
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process of aircraft acquisition and inception over the following paragraphs. What can be the common misunderstandings for unwary buyers, and, as the flight department manager, how can you spot these and help correct them? In subsequent articles, we’ll consider the implementation of a successful purchase, and conclude with a focus on the all-important first year of flight operations. The collective insights of this mini-series will help provide an outline for the development of a sound business aircraft acquisition and operation plan.
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Distinguish Price from Affordability
The typical aircraft buyer I meet tends to have been looking at airplane catalogues and online listings for some time. There is nothing more exciting than a colorful aircraft catalogue. However, window shopping can lead to misconceptions about Pricing and Affordability as these two words are distinctly opposite. • •
Pricing is what you will pay to acquire the metal, wires and motors that comprise an airplane. Affordability is defined by the money you will spend initially, and ongoing to make that airplane fly.
Though a prospective buyer may be looking at adverts for attractively-priced Large Jets, they need to be made aware that an upcoming heavy inspection could add several more million dollars to the ownership experience. www.AVBUYER.com
By examining the actual affordability of a prospective business aircraft – ideally with an operational budget spreadsheet – buyers will begin to understand that, in aircraft sales, it’s a sound professional plan that will reveal the genuinely great deals available to them. As aviation managers, we should be able to provide such a plan.
How do Residual Values Impact Buying Decisions?
Additional reality tends to dawn on the buyer when residual values are discussed. With aircraft being depreciating assets, this should be taken into consideration when a purchase is planned. Newer, larger jets see substantial depreciation over the course of a few years, compared to older, already well-depreciated assets. But equally, when older, well-depreciated assets are being considered, is there a possibility you could become the last owner of that aircraft?
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“By examining the actual affordability of a prospective business aircraft – ideally with an operational budget spreadsheet – buyers will begin to understand that, in aircraft sales, it’s a sound professional plan that will reveal the genuinely great deals available to them.” Could your principal stomach parting the aircraft out and receiving salvage value, as opposed to resale value? ‘Disposable’ aircraft work for some business models, but not all. Regardless, what a jet is worth now, and what it will be worth at the end of your planned ownership tenure, must factor into the overall decision of which aircraft offers the best value for your operation.
Consider the Legal and Tax Implications
For the corporate buyer, the selection of an aircraft must consider the ability to depreciate the asset for tax purposes, and write off the flights as business expenses. It’s important to understand the legal ramifications of the planned usage. Only recently, as I attended a meeting with a prospective aircraft owner, the buyer voiced his intention to partially recover operational costs by letting friends use the airplane. As I pointed out that what he planned to do would be characterized as illegal charter, and outlined the implications and possible penalties from both the federal tax, and aviation authorities, the prospective buyer realized they were looking at the wrong aircraft. This initiated a discussion about right-sizing his purchase or even upgrading his choice to an aircraft equipped with a flight data recorder so it ad re Re Mo
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could be added to an air charter certificate. As the flight department manager, your role is to ask the hard questions before hard money is spent.
In Summary…
Aircraft ownership needs professional guidance. An experienced aviation manager will have a broad understanding of the purchase options, available financing, depreciation, and even the leasing opportunities. You must understand the features of dry leases and time-sharing agreements and know how to outline a rough ownership plan that covers the major challenges. While nobody is expected to be an expert on every facet of aircraft acquisition and ownership, the wise professional knows the steps, and will reach out to experts as needed. As you find yourself in the aircraft acquisition game, remember to reach out to others who have been through it. Seek good advice, and make decisions based on solid planning. We all want to fly the largest, most-advanced, and furthest-reaching aircraft. But that will only happen when the deal is solid, and has healthy, strong wings. Stay tuned to read about the implementation of a successful purchase next month…T
ANDRE FODOR ARTICLES
at AVBUYER.com
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Wright Brothers January.qxp_Empyrean 16/12/2020 10:52 Page 1
Clouded Aircraft Titles & Quiet Title Actions: What You Need To Know When the purchaser of an aircraft decides to buy, a title search is performed to check the status of the title. Unfortunately, a search of the FAA records often reveals that the title to the aircraft is not clear — in other words, it’s “clouded.” Below, we break down what exactly this means, ways to avoid it, and how to resolve it.
What issues could “cloud” a title? Any break in the chain of title or lien or cloud on an aircraft title can cause difficulties for owners when they try to buy, sell, or register their airplane. Real-life examples include divorce decrees, bankruptcy court orders, aircraft mechanic liens dating back to the 1970s, and even aircraft security interests from 1952. Below are the most common aircraft title issues: ● Unreleased liens / security agreements Many of these liens can be 20+ years old, which means locating the parties involved can be difficult — resulting in a cloud that is difficult to remove. Liens are non-consensual and are generally placed on the aircraft title without the consent of the owner. These can be from mechanics who believe they are owed money for services rendered, or from taxing authorities who claim to be owed money for unpaid taxes. Whatever the motive, these liens can be filed against an aircraft at any time by anyone, wreaking havoc on a title even if they are not in recordable format.
● Break in ownership This could be caused by a missing bill of sale or missing signature of one of the previous owners of the plane, or an incorrect title in the signature line of a bill of sale anywhere in the chain of title. More information from: wbaircraft.com/2017/08/clearing-clouded-aircraft-titles/ Why are “clean” titles so important? If these issues are overlooked, new owners essentially inherit what the previous owner did not handle. The result? Your closing will come to a screeching halt as buyers are reluctant to buy and lenders are often hesitant to finance an aircraft without a clear title. After all, how do you deal with an unreleased lien dating back to 1975? What if a clouded title can’t be cleared? Clearing a title can take time, energy, and resources. Here at Wright Brothers, we have the know-how and industry expertise to do just this. Occasionally, however, issues cannot be solved in the ordinary course of business. In these cases, it’s necessary to proceed to a legal course of action in order to clear the aircraft’s title by filing a quiet title action suit. Find details in the full article online at www.avbuyer.com
Unlike non-consensual liens, mortgages and security agreements are consensual and occur when the buyer of the aircraft borrowed money from the bank to buy his or her plane. In this case, these liens are left outstanding because the lending institution changed hands, went out of business, or was bought by another bank. ● Document errors These can be as minor as a missing or incorrect signature or inconsistent owner information on a bill of sale.
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Flight Dept 2.qxp_Finance 15/12/2020 10:55 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 List: How to Prepare, Update and Train Mario Pierobon continues his exploration of what makes Minimum Equipment Lists important to all BizAv operations. This month he discusses creating and updating MELs, and training aspects for the Flight Department… aving previously explored the importance of the Minimum Equipment List (MEL) and how it applies to Business Aviation operations, it’s vital to make sure the MEL is kept up to date, and readily accessible. If yours needs developing or updating, it is essential that an MEL should be developed as part of a close collaboration. According to Jeremy Purry, Technical Author at Total AOC/Centrik, “It is important to work
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closely with pilots, managers and engineering representatives to ensure operators get exactly what they want from their new manual. “Then, in partnership with a powerful operational management solution (such as Centrik), it is possible to ensure that all documents and manuals can be hosted and tracked for amendment status, offering complete assurance that all documentation remains current and approved – which is invaluable when it comes to any regulatory audit.
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“The upkeep and maintenance can be quite labor-intensive, as the aircraft manufacturers annually produce new versions,” he adds. “In addition, if an operator adds or modifies any equipment or parts, a consequential change to the MEL is required.”
How to Create or Update an MEL
According to Stewart D’Leon, Director of Technical Operations, NBAA, it is very important for operators to understand all the steps they must accomplish to create their own MEL. There’s a different process to follow, depending on whether they choose to develop their MEL based on the D095 or D195. “The D095 authorization is generally a quicker process but the operators must ensure that the MEL contains all the required information,” he highlights. The development of an MEL in a Business Aviation flight department is an area where www.AVBUYER.com
considerable savings in time and resources can be made. “The MEL is vital in supporting costly and critical decisions, often made under considerable time pressure,” notes Purry. “The document needs to provide a user-friendly, clear, and definitive set of instructions that can be accessed quickly, reliably and safely.” Moreover, operating any aircraft is multidisciplinary. The production of the MEL needs to consider both operational and maintenance perspectives. While this is not universally agreedupon, in Business Aviation the pilots are often best-placed to have the primary role in the development of the MEL, since they ultimately factor most prominently in a departure decision. “Of course, engineering or maintenance organizations also need to be involved, and are often best-placed to maintain control of the document,” Purry adds. “To help simplify this process, we have used our expertise to produce our own standardized format, which is fully compliant and approved.
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“The development of an MEL in a Business Aviation flight department is an area where considerable savings in time and resources can be made. The MEL is vital in supporting costly and critical decisions, often made under considerable time pressure...”
“The mission profile is certainly relevant, and at times there may be some lenience and variation permitted (by the authorities responsible for oversight) as to how limiting the MEL may be in terms of the procedures followed.” Ultimately, he adds, it’s about balance and compromise, but ultimately governed by the safety considerations.
MEL-Related Training
As part of their approved type-rating training programs, pilots will also be instructed in how to use and interpret an MEL. “Even though it is the captain or the commander who has the responsibility for the decision to fly or not, the copilot or flying engineer should also fully understand the role and use of the MEL, and be able to contribute to the decision-making process,” Purry suggests. Stemming from the legality and safetycompliance status of the use of MELs, the pilots must be aware of the legal and regulatory responsibility in its interpretation and use. This is usually covered in classroom or selfstudy training, using ‘real’ documentation and practical examples. “A pilot’s training on a new type of aircraft will include the use of the MEL in close-to ‘real life’ scenarios, including real-time training situations in simulators, or even in the aircraft,” Purry suggests. “Training is practical and specific, with pilots
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gaining the knowledge of how to apply the correct and timely interpretation of the MEL, as well as knowing from a regulatory standpoint what they can, and cannot do when dispatching an aircraft that has systems or equipment that are not functioning normally.” Pilots are generally going to be very knowledgeable of the systems, and definitely should be familiar with the MEL. And the same holds true for the maintainers, according to D’Leon. “This is one of the things that we have committed to in NBAA’s communications and outreach to the members,” he adds. “Often there are small flight departments which do not have maintenance on staff, so they need to be familiar with all the documents, including MEL, CDL (Configuration Deviation List) and NEF (NonEssential Furnishings). “They need to be able to work through, and understand these documents as well as what actions need to be taken”, he adds. If something is deferred there may be maintenance or operational tasks that need to be completed before it’s possible to technically dispatch the aircraft with a given system inoperative. “They need to know that they can dispatch with it, but also that there is a maintenance action needed. Some maintenance actions must be done by certified technicians, but some can be completed by the crew,” D’Leon clarifies.
In Summary…
The key importance of MELs is that they allow a Business Aviation operator to safely dispatch an aircraft with some equipment inoperative. “Of course, there may be some restrictions,” D’Leon says. “Every aircraft is going to be different, depending on the OEM’s guidance. “If I were running a flight department, I would want all my technicians and flight crews to be very familiar with the MEL. This knowledge ultimately helps ensure the success of the flight department”, he concludes. T
MARIO PIEROBON ARTICLES
at AVBUYER.com
www.AVBUYER.com
P099.qxp 16/12/2020 14:23 Page 1
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AVBUYER MAGAZINE R Vol 25 Issue 1 2021 R
99
Community News.qxp_Layout 1 15/12/2020 09:43 Page 1
COMMUNITY
OEM Bites
Aerion has entered into a strategic collaboration with Avion Pacific, aligning the two companies to expand Aerion’s Asia Pacific presence and deliver ultra-luxury supersonic flight to customers in the region. Aerion is progressing the development of its AS2 Supersonic Business Jet. www.aerionsupersonic.com
Embraer Delivers First Praetor 600 Embraer has delivered the first jet in a fleet of Praetor 600s to Flexjet. The aircraft will be used for the company’s burgeoning operations in Europe… arking the first Praetor 600 delivery to Flexjet, Michael Amalfitano, president & CEO, Embraer Executive Jets said, “We are honored to further execute on our commitment to Flexjet, our esteemed partner of over 17 years, with the delivery of this first Praetor 600...” Flexjet became the Praetor fleet launch customer when it received the first-ever Praetor 500 in December 2019. The deal, valued at up to $1.4 billion, was announced at NBAA-BACE 2019 and comprises a fleet of Praetor 600s, Praetor 500s, and Phenom 300s. “We have spent the past three years laying the foundation to become a force in European private aviation, and we are proud to exceed the expectations of this valued market,” said Michael Silvestro, CEO of Flexjet. “The Praetor 600, with its unparalleled
M
100 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
technology, comfort, and performance, marked by class-leading, intercontinental range, rounds out the fleet that will help us to meet every possible need and desire of Flexjet Owners in Europe.” With Embraer’s commitment to continually improve each of the four aircraft in its business jet portfolio, recent updates to the Praetors have included enhancements for cabin safety — a standard HEPA air filter, the MicroShield 360 cleaning solution, and electric lavatory pocket door — and the certification of a synthetic vision guidance system (SVGS). The Praetor 600 Super Mid-Size Jet is capable of non-stop flights from Paris to New York or São Paulo to Miami. With four passengers and NBAA IFR Reserves, it can travel 4,018nm. More information from https://executive.embraer.com
Airbus Helicopters’ new five-bladed H145 has received US FAA certification, covering its full range of capabilities, including single-pilot instrument flight rules and single engine operations, along with night vision goggle capability. EASA certification was awarded in the summer. www.airbus.com/helicopters.html
Bell’s Electrically Distributed AntiTorque (EDAT) has won the ‘Best of What’s New Award’ in the Aerospace category for 2020. Composed of four small fans within a tail rotor shroud and powered by four separate motors, electrical energy is provided through generators driven by the turbine engines. EDAT helps reduce noise pollution and lowers operational and maintenance costs, while also enhancing safety. www.bellflight.com www.AVBUYER.com
w
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AVBUYER.com
OEM Bites
C
Dassault live-streamed the official unveiling of its Falcon 6X, right on schedule, to the Business aviation world on December 8. Boasting the highest and widest cabin of any purpose-built private jet, and powered by Pratt & Whitney PW812 engines, the 5,500nm Falcon 6X will now undergo flight testing. Certification is expected next year. www.dassaultfalcon.com
Textron Enhancing the King Air 200-Series Epic Aircraft announced a new partnership with ATP for maintenance tracking and technical publication distribution. Epic will utilize ATP’s Flightdocs for maintenance tracking and electronic logbooks across the fleet of E1000 GX single-engine turboprop aircraft. www.epicaircraft.com
Pilatus has appointed TAG Maintenance Services to support the Pilatus PC-24 for comprehensive base and line maintenance in Geneva, Switzerland. TAG Maintenance Services also offers support for the Pilatus PC-12 single-engine turboprop. www.pilatus-aircraft.com www.AVBUYER.com
Textron Aviation is enhancing its Beechcraft King Air
200-series with the introduction of the King Air 260 twin-engine turboprop, following hot on the heels of the recently-certified King Air 360…
eaturing technological advancements to the cockpit and improvements in the cabin, the King Air 260 offers capacity for up to nine passengers, a maximum range of 1,720nm, and a top cruise speed of 310kts. The twin-engine turboprop combines the platform’s rich history of rugged reliability and versatility with state-ofthe-art upgrades and next-generation capability, offering “a greater ease of flying”, according to the manufacturer. Key enhancements to the aircraft are the addition of the Innovative Solutions & Support (IS&S) ThrustSense Autothrottle, and a new digital pressurization controller. The cockpit also offers the Collins Aerospace MultiScan weather radar system as a standard feature on every King Air 260. “These investments reflect our
F
commitment to providing superior upgrades and engineering innovation that create the best flying experience for Beechcraft King Air 260 owners and operators around the world,” said Ron Draper, President and CEO. “We place an immense value on our conversations with our customers, and the investments we make in our aircraft are a direct result of listening to their input. “I’m proud of the impressive effort by our team for taking a legendary aircraft and adding technological advancements that will allow customers to achieve their varied missions.” Assembly production for the King Air 260 is already underway, and certification and deliveries are expected in early 2021. More information from www.txtav.com
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COMMUNITY
Sherif Abouzeid
Rick Andrew
AVBUYER.com
Sherif Abouzeid joins JetHQ as Vice President, Sales for Egypt. He will head a newly-created office there, which will better meet the needs of JetHQ clients in Egypt. Abouzeid has a decade of experience in commodities and import/export. Rick Andrew was appointed Commercial Director, Savback Helicopters AB with the task of establishing a presence for the company in the United Kingdom. He joins from Sloane Helicopters, the long established Robinson and Leonardo Helicopters UK sales distributor. Lee Applbaum was named Chief Marketing Officer for Wheels Up. Applbaum brings more than 25 years of experience working with Patrรณn, Grey Goose, Target, and Coca-Cola. Andrew Day is the new COO at Wyvern. Day was previously Senior Director, Quality and Education, and has amassed more than 30 years of aviation industry experience.
Bart Demosky was announced as the new Executive Vice President and CFO of Bombardier, Inc. with immediate effect, replacing John Di Bert, who is leaving the company. Dave Diulus has become the Director of Sales Enablement for FlightAware. Previously Diulus was President of UVair Fuel.
Bart Demosky
King Thompson was appointed to the new position of Senior Sales and Customer Support Manager for MRO activity at the Middle River Aerostructure Systems (MRAS) business of ST Engineering. Chuck Yeager, US test pilot and the first person to break the sound barrier, has died aged 97. Yeager entered the history books after his flight in the Bell X-1 experimental rocket plane in 1947, and later broke several other speed and altitude records, helping pave the way for the US space program. T
Lee Applbaum
King Thompson
Chuck Yeager
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
www. 102 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
.com www.AVBUYER.com
Marbale Universal December.qxp_Empyrean 16/12/2020 14:05 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
www.AVBUYER.com
Vasily
UK Mobile: +44 7500 5549 57 Russian Mobile +7 915 294 74 55 WhatsApp Only: +1 765 705 01 14
AVBUYER MAGAZINE Vol 25 Issue 1 2021
103
Qatar Executive December.qxp_Heeren Cit Ultra sep 16/12/2020 14:59 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
104 Vol 25 Issue 1 2021 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
Aviatrade DHC8-315 November.qxp 16/12/2020 14:02 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
www.AVBUYER.com
Mob: +32-475.621.539 Mob: +1 514 348 5589 a.bloem@avitradebelgium.com emmanuel.paillier@gmail.com
AVBUYER MAGAZINE R Vol 25 Issue 1 2021 R
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Vienna Jets 2012 Embraer Phenom 300 January.qxp_Empyrean 16/12/2020 14:37 Page 1
S H O W C A S E
2012 Embraer Phenom 300 Serial Number: Registration: Airframe TT: Landings:
101 EASA / D-CSAG 2110 2530
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 2110 2530 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 2110 2530 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
106 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Tel: +43 676 7217335 Email: sales@viennajets.com www.viennajets.com
www.AVBUYER.com
SMS 2005 Bombardier Global Express January.qxp_Heeren Cit Ultra sep 16/12/2020 14:36 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 180 Month Inspection just completed with aircraft Returned To Service December 10th and ready for End of Year Closing 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) 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) 6-Tube 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 25 Issue 1 2021
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Jetsense Aviation January.qxp_Empyrean 16/12/2020 14:04 Page 1
S H O W C A S E
1997 Beechcraft King Air 350 Serial Number: Registration: Airframe TT: Landings:
FL-175 SE-LLU 6670 6159
ADS-B Out Compliant RaisbeckNacelle Wing Lockers FrakesExhaust Stacks TCAS II EU OPS 1 UNS 1E FMS 11 Passenger Interior Basic Empty Weight: 9908 lbs Rosen Passenger Audio and Video Entertainment –Incl Moving Map & Briefing System Gill Lead Acid Battery STC Enrolled on CAMP Engines Description: S/N: THSN: TCSN: THS OHI:
Left engine PT6A-60A PCE-PK0075 6545 Hours 5765 Cycles 2379 Cycles
Right engine PT6A-60A PCE-PK0072 6597 Hours 6007 Cycles 2500 Cycles
Props Description: HC-B4MP-3 TSOH: Left: 828. Right: 828
Avionics & Connectivity ADS-B Out Compliant EFIS System 1 Collins Pro Line II EFIS 85 3 Tube VHF Communication 2 Collins VHF-22C VHF Navigation 2 Collins VIR-32A FMS/GPS 1 UNS-1E Flight Director 1 EFIS 85 Autopilot 1 Collins APS-65 ELT 1 Artex ELT C406N Automatic Direction Finder 1 Collins ADF-60A Distance Measuring Equipment 2 Collins DME 42 Multi-Function Display 1 Universal MFD-640 Radio Altimeter 1 Collins ALT 50A HF Radio 1 King KHF 950 (Provisions) Cockpit Voice Recorder 1 Fairchild S-100 Traffic Collision Avoidance System 1 Collins TCAS 4000 Version 7.1 Flight Data Recorder 1 Fairchild F1000 SSFDR Transponders 2 Collins TDR-94D EGPWS 1 Honeywell Mark VIII (Class A) RVSM 1 Elliott STC SA2264CH Compliant Weather Radar 1 TWR-850 Color Radar Interior & Entertainment Year Refurbished: March 2015 at Elliott Aviation w/ new Headliner and EMTEQ Lighting Installed Number of Passengers: Eleven (11) including Belted Lav and Dual Aft Foldup Seats Lav Location: Aft (Belted) Exterior Painted at Elliott Aviation March 2015 Base Color: Matterhorn White. Accent and Stripe Colors: Flight Red and Taxiway Yellow Call for Pricing
Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047
108 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com www.AVBUYER.com
Mesotis 2013 Cessna Citation CJ4 January.qxp 16/12/2020 14:06 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 • One owner since new • 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 Asking Price: USD $5,300,000
Mesotis Jets Thomas Thums Fleischmarkt 7/3 1010 Vienna Austria
www.AVBUYER.com
Mob: +43-67-6590-0082 Tel: +43-1-533-757216 E-mail: tthums@mesotisjets.com www.mesotisjets.com
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P110-112.qxp 16/12/2020 14:32 Page 1
M A R K E T P L A C E
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
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
Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 E-mail: emma@nigelwatson.im Only 1455TT, 7 passenger VIP Cabin, blue and silver paint. Has exclusively been for VIP operation. Available from November 2019. Full valuation report and 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
Robinson R66
Mountain Flyers 80 Ltd Price:
â&#x201A;Ź350,000 Excl. VAT
Year:
2014
S/N:
0553
Reg:
HB-ZOK
TTAF:
1900
Location: Switzerland
Airbus H125
H2I HELICOPTERS Price:
Please Email
Year:
2019
S/N:
from 4569 to 8688
Reg:
F-XXXX
TTAF:
100h to 2500h
Location: France
110 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Tel: +41 (0) 796 099 413 E-mail: christoph.graf@mountainflyers.ch
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
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
P110-112.qxp 17/12/2020 11:11 Page 2
2016 Robinson R66
Justin Immel Price:
USD $699,000
Year:
2016
S/N:
0696
Reg:
N661MM
TTAF:
911
Location: USA
McDonnell Douglas Helicopter 500E Anthony Draper
Garmin GTN750 GPS/Com/Nav (com 1). Garmin 330 transponder w/ ADS-B OUT. Garmin GMA 350Hc audio controller. Garmin GTR 225B Com radio (com 2). Vertical card compassInt: Gray leather seats. Ext: Black. Additional equipment: 4 Bose headsets. Cabin cover, and blade tie downs. USB charge aft
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
M A R K E Tel: 1 (815) 760-2124 T E-mail: justinimmel@marquisaviationinc.com P L Immaculate 2016 R66 with a HeliSAS Autopilot, air conditioning, A garmin avionics, kept in climate controlled hangar. One owner C since new, with no damage history. Avionics: HeliSAS auto pilot E Garmin G500H MFD / PFD. Garmin HSVT Synthetic Vision.
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
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
Hughes 369
Philip George Price:
£330,000Excl. VAT
Year:
1971
S/N:
62-0389S
Reg:
N2742Y
TTAF:
2464
Location: United Kingdom
www.AVBUYER.com
Tel: +44 (0)1772 687 775 E-mail: sales@huey.co.uk 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)783 122 5440 E-mail: phil@hovercam.co.uk Always hangared. Upgraded nearly new C18B. Nearly new HTC rotor blades. Nearly new 10K boom / shaft Excellent times remaining. Annual inspection July 2021 Turbine Wash Kit Garmin GNC 300XL. Nav / Com King 196A. Com Garmin GMA 340 audio panel Trig mode S transponder 4K Cine camera gimbal available
AVBUYER MAGAZINE R Vol 25 Issue 1 2021 R
111
P110-112.qxp 17/12/2020 11:13 Page 3
M A R K E T P L A C E
Bombardier Learjet 36A
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Leonard Hudson Drilling 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
BELL 212 (Five Available)
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Leonard Hudson Drilling 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
Tel: +49 (0) 291 952 7570 E-mail: info@klassen-aviation.com
KLASSEN AVIATION
Agusta A109A II
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
Aircraft Spare Parts
Wheels, Starters, Brakes, etc. Outright and Exchange
Par Avion Ltd
Cessna, Learjet, Hawker, Westwind, Falcon, Gulfstream, Global Express
FALCONS • HAWKERS • LEARS
Tire Inflation Cage, Hydraulic Wheel Dolly, Lav Cart Brake Bleed Kits, O2 & N2 Single Bottle Carts, Socket Kits Mobile A/C Cart, Oxygen Fill Adapter, Jack Adapters
www.paravionltd.com
Manufacturer of Select GSE & Speciality Tooling Preowned GSE also available
www.AlberthAviation.com
112 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
Buy * Sell * Trade
SALES • ACQUISITIONS • CONSULTING
832-934-0055 www.AVBUYER.com
P113.qxp 17/12/2020 11:10 Page 1
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The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet Advertiser’s Index Action Aviation ..................................................... 83
ElliottJets .............................................................. 31
Mesotis Jets ....................................................... 109
AeroBuyNow ........................................................ 17
Engine Assurance Program .............................. 11
OGARAJETS............................................... 26 - 27
Aircraft BlueBook................................................ 99
Freestream Aircraft..................................... 32 - 33
Par Avion ............................................................... 25
Airfleet Capital ..................................................... 67
General Aviation Services................................. 53
Pratt & Whitney.................................................... 57
Airline Transport Professional........................... 99
Global Jet Capital ............................................... 61
Qatar Executive................................................. 104
Aradian Aviation................................................... 89
Global Jet Monaco .......................................... 5 - 9
SMS Aircraft ...................................................... 107
Avitrade ............................................................... 105
Hatt & Associates ............................................... 21
Sparfell & Partners ..................................... 36 - 37
Avpro...................................................................... 39
Honeywell ............................................................. 65
Stevens Aerospace ............................................ 71
Castle Air............................................................... 73
Jetbrokers.............................................................. 85
The Jet Business......................................... 22 - 23
Central Business Jets...................................... 115
Jetcraft Corporation ......................... 18 - 19, 116
The Private Jet Company................................... 63
Corporate Concepts.................................. 42 - 43
JetHQ ....................................... 1, 12 - 13, 44 - 45
Vienna Jets ......................................................... 106
Dassault Falcon Pre-Owned. ....................... 2 - 3
Jet Sense Aviation ............................................ 108
Wright Brothers Aircraft Title............................ 95
Duncan Aviation................................................... 41
Lone Mountain Aircraft Sales........................... 49
Eagle Aviation ...................................................... 35
Marbale Universal ............................................. 103 PROUD MEMBERS OF
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AvBuyer (USPS 014-911), January 2021, Vol 25 Issue No 1, 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 25 Issue 1 2021 R
113
P114 Jan21.qxp 17/12/2020 11:23 Page 1
Aircraft For Sale • AIRCRAFT • HELICOPTERS
AIRCRAFT
PAGE
AIRBUS A318 Elite . . . . . 5 A319 VIP . . . . . . 5 ACJ320 . . . . . . . 83 ACJ340 . . . . . . . 43
ATR 72-500 . . . . . . . . 43
BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 32 BBJ2 . . . . . . . . . 5 BBJ3 . . . . . . . . . 18 VVIP737-300 . . . 43 787-8 . . . . . . . . . 19, 32, 116 787-9 . . . . . . . . . 19, 116
BOMBARDIER Global 5000 . . . . 13, 18, 19, 25 Global 6000 . . . . 5, 18, 19, 22, 116 Global Express . 5, 107 Global Express XRS. 8, 9, 19, 22, 39
Challenger 300 . . . . . . . . . . . 5, 17, 27, 37, 39, 41, . . . . . . . . . . . . . . . 53 601 3A/ER. . . . . 41 604 . . . . . . . . . . . 19, 116 605 . . . . . . . . . . . 5, 19, 22, 37, 41, . . . . . . . . . . . . . . . 104, 116 650 . . . . . . . . . . . 18, 116 850 . . . . . . . . . . . 5
AIRCRAFT
PAGE
XLS . . . . . . . . . . . . 31 XLS+ . . . . . . . . . . . 35, 41, 89 CJ2+ . . . . . . . . . . . 31, 36 CJ4. . . . . . . . . . . . 36, 109 Caravan . . . . . . . 19, 116 Encore . . . . . . . . 41, 85 Excel . . . . . . . . . . 36, 53 Sovereign. . . . . . 31, 35, 39 340A RAM VI . . . 35 Ultra . . . . . . . . . . . 36 510 Mustang . . . 49
CIRRUS
CESSNA Citation II . . . . . . . . . . . . . 85 X . . . . . . . . . . . . . 13, 19, 25, 49, 116
PAGE
AIRCRAFT
GULFSTREAM IVSP . . . . . . . . . . 89 V. . . . . . . . . . . . . . 42, 53, 89 100 . . . . . . . . . . . 19 150 . . . . . . . . . . . 85 200 . . . . . . . . . . . 19, 37, 39 280 . . . . . . . . . . . 31, 115 450 . . . . . . . . . . . 17, 33, 39, 83, 89, 500 . . . . . . . . . . . 103 550 . . . . . . . . . . . 5, 19, 23, 39, 83, 89, . . . . . . . . . . . . . . . 116 650 . . . . . . . . . . . 5, 23, 33, 37, 39 650ER. . . . . . . . . 33
PILATUS
SOCATA TBM 700A . . . . . 115 TBM 700B . . . . . 35 TBM 930. . . . . . . 31 TBM 940. . . . . . . 31
HELICOPTERS AIRBUS/ EUROCOPTER
HAWKER BEECHCRAFT DASSAULT FALCON 7X . . . . . . . . . . . . 3, 5, 6, 7, 19, 33, 39, . . . . . . . . . . . . . . . 115, 116 8X . . . . . . . . . . . . 3 20F-5BR . . . . . . . 31 50-4. . . . . . . . . . . 42 50EX . . . . . . . . . . 85 900B . . . . . . . . . . 19, 116 900C . . . . . . . . . . 115 900DX. . . . . . . . . 53 900EX . . . . . . . . . .42 900EX EASy . . . 2, 39 900LX . . . . . . . . . 23, 116 2000 . . . . . . . . . . 39, 53, 85 2000EX. . . . . . . . 115 2000EX EASy . . 19 2000LXS. . . . . . . 2 2000LX . . . . . . . 19
King Air 200XPR . . . . . . . 85 350 . . . . . . . . . . . 35, 108 350i . . . . . . . . . . . 21 B200 . . . . . . . . . . 17, 85
Beechcraft 1900D . . . . . . . . . 17 B60Duke . . . . . . 85 Premier I . . . . . . 31
Hawker 400A . . . . . . . . . . 13, 85 400XP . . . . . . . . . 26, 27 800XP . . . . . . . . . 27, 37, 39 850XP. . . . . . . . . 63 4000 . . . . . . . . . . 21, 63
PAGE
PC24 . . . . . . . . . . 37
SF50 . . . . . . . . . . 49
Learjet 31A . . . . . . . . . . . 41, 85 36A . . . . . . . . . . . 112, 40XR . . . . . . . . . . 41, 110 45 . . . . . . . . . . . . 116 45XR . . . . . . . . . . 13, 21, 41 55 . . . . . . . . . . . . 85 60 . . . . . . . . . . . . 18, 19, 116 60SE . . . . . . . . . . 115 75. . . . . . . . . . . . . 19, 116
AIRCRAFT
Airbus . . . . . . . . . 115 AS 365N-3 . . . . . 110 EC 120B . . . . . . . 89 EC 130B4. . . . . . 13 EC135P2+ . . . . . 17 EC135T2 . . . . . . 89 EC145. . . . . . . . . 110 H125 . . . . . . . . . . 110, 111
AGUSTAWESTLAND AW109A II . . . . . . 73, 112 AW109E Power . 37 AW109S Grand. .37 AW109SP. . . . . . 18
BELL 212 . . . . . . . . . . . 112 412EMS . . . . . . . 112
HOWARD DE HAVILLAND
500 . . . . . . . . . . . 115
DHC8-315 . . . . . 105
IAI EMBRAER Legacy 500 . . . . 22, 63 Legacy 600 . . . . 36, 37, 42, 116 Legacy 650 . . . . 5, 19, 36, 37, 116 Lineage 1000 . . 36 Lineage 1000E . 115 Phenom 100 . . . 17 Phenom 300 . . . 31, 37, 41, 49, 83, . . . . . . . . . . . . . . . 89, 106
HUGHES OH-6 . . . . . . . . . . 111 369 . . . . . . . . . . . 111
Astra 1125SP . . 115
MD NEXTANT
500E . . . . . . . . . . 111
400XTi . . . . . . . . 13
ROBINSON PIAGGIO
R66 . . . . . . . . . . . 110, 111
P180 Avanti EVO 3008. . . .17 P180-11 . . . .83
The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet
Copy date for the February 2021 Issue - Wednesday 20th January 2021
114 Vol 25 Issue 1 2021 AVBUYER MAGAZINE
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CBJ October.qxp_CBJ November06 14/09/2020 15:35 Page 1
General Offices
Mexico office
Minneapolis / St. Paul
TEL: 52.55.5211.1505
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CELL: 52.55.3901.1055
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E-MAIL: Enrique@CBJets.com
EMAIL: INFO@CBJETS.COM
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.
1993 DASSAULT FALCON 900B S/N 120 • 9,728 Hours; 5,432 Landings • Engines and APU on MSP Gold • ADS-B Out, WAAS/LPV Equipped
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.
2016 DASSAULT FALCON 7X S/N 268 • 1,718 Hours; 1,324 Landings • Engines and APU Enrolled on JSSI • 12 Passengers
2017 BOMBARDIER GLOBAL 6000 S/N 9762
2010 DASSAULT FALCON 900LX S/N 246
• 1,690 Hours; 598 Landings •2 020 Compliant and Ka-Band Internet •1 5 Passenger Configuration with Shower
• 4,930 Hours; 2,371 Landings • Engines and APU Enrolled on MSP • EASY II Avionics w/ EVS
2002 BOMBARDIER LEARJET 45 S/N 45-159
2008 EMBRAER LEGACY 600 S/N 14501064 • 2,223 Hours; 1,015 Landing • FANS 1/A+ & CPDLC • Primus Elite -DU-875 Displays
ALSO AVAILABLE
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
• 7,855 Hours; 5,673 Landings • Engines & APU on MSP Gold • Fresh A,B, & C Inspections
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