AvBuyer Magazine May 2020 by AvBuyer Ltd.

FC Jetcraft May 2020.qxp_FC December 06 22/04/2020 09:29 Page 1

Volume 24 Issue 5

â&#x201E;¢

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

THIS MONTH proudly presents

2019 EMBRAER LEGACY 450 Serial Number 55010060

Learn more about this and our other exceptional aircraft on pages 24 & 25 and the back cover

Steve Schulte Photography

Jets Comparison: Cessna Citation CJ3+ vs Embraer Phenom 300E What is the Impact of Coronavirus on BizAv? What Does it Cost to Operate a Turboprop? www.AVBUYER.com

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GLOBAL JET PORTFOLIO

BOMBARDIER GLOBAL 7500 POSITION AVAILABLE Q4 2021

BOMBARDIER GLOBAL XRS 2008 / SN 9252

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BOMBARDIER GLOBAL 6000 2016

BOMBARDIER CHALLENGER 300 2012 / SN 20382

BOMBARDIER GLOBAL 6000 2015 / SN 9701

GULFSTREAM 650ER 2014 / SN 6100

BOMBARDIER GLOBAL 6000 2013 / SN 9559

GULFSTREAM 650 2014 / SN 6095

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DASSAULT FALCON 7X 2014 / SN 251

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ASKING PRICE / USD $29.50M

DASSAULT FALCON 7X 2011 / SN 118

AIRBUS A318 ELITE 2007 (DELIVERED 2008) / SN 3100

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DASSAULT FALCON 900DX EASY C Check has just been performed 2008 / SN 619 ASKING PRICE / USD $12.25M

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AV_BUYER_May 2020.indd 2

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Editor Welcome.qxp_JMesingerNov06 21/04/2020 11:14 Page 1

Guest Editor’s VIEWPOINT

Jim Blessing, NAFA

Aircraft Financing in the Pandemic Market o much is different to a few weeks ago. The aircraft finance market, like every other, is unsettled as the COVID-19 pandemic continues. It’s hard to put a stake in the ground as to where we’ll be when this column appears in print – hopefully there’s more stability than at the time of writing. To better understand where we are, and where we might be in a couple of months, I polled the Board of Directors of the National Aircraft Finance Association (NAFA). The organization is an important partner to global aviation, reflecting that with a diverse membership and board. The NAFA Board includes small, medium and large banks, leasing professionals, aviation attorneys, title and escrow professionals and aircraft manufacturers, among others. Collectively we identified key changes and considerations within aviation finance right now. There are big issues that everyone is addressing – standards in lending, business activity, financing priorities and FAA changes. These are all evolving. And no one can say when we will shift back to “normal” with a “recovering economy”. Until then, this is what we’re working with.

On the Positive Side

Financial institutions are open for business, and interest rates have lowered across capital markets. There have also been significant draw-downs on credit facilities by clients to ensure they have the liquidity to endure at this time. Liquidity is not unlimited though, and banks must also have a rate “floor” to operate with. Virtually all financial institutions are taking the stance of supporting clients first, but they’re also funding new loans. Some are restricting lending to certain industries, including commercial aviation lending, reflecting a lack of near or long-term macroeconomic clarity. Additional factors (like the impacts of COVID-19) are reviewed on a client by client basis, weighing industry or new risk concentrations. This may determine different structures in some cases. The main question, for new loans or loan modifications, is how the business has been affected and the impact of further shutdowns. However, changes to underwriting standards are not under consideration at this point since the shutdown is viewed as temporary.

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A Large Part of the Solution

The consensus is that this appears to just be a ‘pause’. OEMs are seeing interest in new aircraft and remain focused on keeping production rolling, albeit at a slower pace. In addition, where the finance sector was the root of the 2018-2019 crisis, the finance industry now is a large part of the solution, as many of the stimulus packages are funded through the finance sector. It does however take longer to close a loan. For example, the FAA’s procedural changes quarantine physically submitted documents for 72 hours, which may be risky to lenders and priority of loans (with processing times for filing and recording delayed). FAA acceptance of digital signatures and electronic notary services is helping, but everyone is trying to navigate the potential bottleneck at the point of closing.

BizAv to Accelerate Ahead of Recovery?

It’s still too early to tell how much new business has been impacted. Some clients are delaying purchases until there’s long-term economic clarity. However, there’s a growing outlook, as evidenced by most recent activity, that business aviation may accelerate ahead of a recovery. And while OEM activity may decrease, we’re still seeing first-time buyer activity, and projected increases in charter, fractional and pre-owned sales as clients seek alternatives to airlines. On the bright side, stores can now deliver wine with food, and maybe that’s one thing we hope does not return to ‘normal’. In the meantime, consider using the services of our diverse NAFA membership, contact your financial institution for up-to-date information on your situation, and stay safe. More information from www.nafa.aero

❙

Jim Blessing is President of the National Aircraft Finance Association (NAFA) and Vice President of AirFleet Capital. He has spent his entire career working in the field of aviation, and is an experienced private pilot dedicated to helping others finance their own aircraft.

www.AVBUYER.com

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2020

Contents

Vol.24 Issue 5

Guest Editor

Jim Blessing, NAFA

Market Indicators

Trends and observations from the leading analysts…

Market Insights

What is the Impact of Coronavirus on BizAv?

COVID-19: Is There a Bright Spot in the BizAv Market?

What’s Popular With Light Turbine Aircraft Buyers?

46 52 56 60 64 68 76 80 84

Buying & Selling

Mistakes to Avoid When Buying an Aircraft How GATS can Simplify Aircraft Trading

Finance

How COVID-19 is Impacting Aircraft Financing Terms

Ownership

What Does it Cost to Operate a Turboprop? Why Consider Importing Non-EU Aircraft into Malta?

Jet Comparision

Cessna Citation CJ3+ vs Embraer Phenom 300E

Aircraft Price Guide Large Jet Values

Maintenance

Three Buyers’ Tips on Aircraft Maintenance History What Fleet Percentage is Enrolled on an Engine Maintenance Program?

Flight Department Management

Is it Safe to fly in This COVID-19 Pandemic?

Is Your Data & Software Management Good Enough?

Detailing the Latest on Performance Based Navigation (PBN)

106

OEM News and Industry Appointments

110

Products & Services

116

Showcases

123

Marketplace

129

Advertisers Index

130

Aircraft for Sale Index

Avionics

Community News

Next Month

• Buying High-Time Jets: Risk of Value? • Cabin Connectivity Focus

8 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

EDITORIAL Commissioning Editor Matthew Harris +44 (0)20 8939 7722 editorial@avbuyer.com Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com Consulting Editor Sean O’Farrell +44 (0)20 8255 4000 sean@avbuyer.com ADVERTISING Steve Champness - Publisher Americas 770 769 6872 Steve@avbuyer.com Lee McLoughlin - Account Director US Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 lee@avbuyer.com Matt Chappell - Account Manager US & Canada Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 MattC@avbuyer.com Lise Margin - Account Manager US Aircraft Sales +1- 703 818 1024 lise@avbuyer.com Maria Brabec - Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com UK Head Office +44 (0)208 549 9508 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0)20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 sue@avbuyer.com AVBUYER.COM Jayne Jackson jayne@avbuyer.com Emma Davey emma@avbuyer.com MANAGING DIRECTOR John Brennan +44 (0)20 8255 4229 john@avbuyer.com 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 What is the current and projected inpact of COVID-19 on Business Aviation flying and tranactions? Rollie Vincent, editor, Market Indicators reflectsâ&#x20AC;Ś

he COVID-19 pandemic is unlike any shock that has hit the Business Aviation industry and, for that matter, our broader national and local economies. We now know that the deadly virus has been invading our world for several months, going mostly undetected, passing silently and invisibly from unknowing asymptomatic victim to victim. At press time, the European Centre for Disease Prevention and Control (ECDC) was already recording 2.1 million cases of COVID-19 and 145,000 deaths worldwide, including more than 33,000 in the US alone. Home to almost six in 10 fixed-wing turbine powered business aircraft worldwide, and with its currency one of the foundations of the global economy, the US is the marketplace that matters more than any other when we think about an eventual recovery in the fortunes of Business Aviation.

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Big Hit to Flight Activity

Staggering reductions in business aircraft utilization beginning in mid-March (with business jet cycles off 75-80% YoY just weeks later) reflect the sudden change in marketplace conditions across both the US and Europe. Driven by work-from-home and stay-at-home initiatives, lockdowns, border controls and quarantines, flight reductions reflect both constrained demand (fewer customers to serve) and limited supply, with reportedly only one in four aircraft in the European fleet in the air during the first half of April. Simply getting crews into position has become problematic, with the dramatic cutback in commercial airline schedules (in some cases by as much as 90% YoY). It is a wonder that any flights are getting off the ground these days, as trying to efficiently operate an aviation business in this kind of environment must be the definition of madness itself. www.AVBUYER.com

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

Pre-Owned Business Aircraft Inventory

GDP Forecasts Portend Gloom

Just released forecasts of 2020 GDP growth for key Business Aviation markets are anything but encouraging. Although it seems that there are already as many forecasts being posted as there are economists out there, it is clear that growth rates are switching to negative for most of the key Business Aviation markets, including the US, the UK, the Euro Area, Canada, Mexico, Brazil, Australia, Saudi Arabia, Turkey, Russia and South Africa. In a word: “Ouch”. China and India may eke out some YoY GDP growth in 2020, but collectively they only account for 2.5% of the world’s business jet fleet. After growing at 2.3% in 2019, the US economy is forecasted to contract by 3-6% in 2020, according to a number of forecasters recently polled by The Economist, and reported on April 16.

A ‘Crisis Like No Other’

Describing the COVID-19 global pandemic as a crisis “like no other”, the International Monetary Fund (IMF) issued its latest World Economic Outlook Report in April with a stark warning that it is very likely that the global economy will experience its worst recession this year since the 1930s Great Depression. The IMF marked down its 2020 global GDP growth forecast by more than 6 percentage points from January to April 2020, a breathtaking revision over such a short period of time. IMF forecasts for 2021 GDP growth across most of the abovementioned countries are insufficient to claw back this year’s expected drops in economic activity, implying that a recovery could take several years to unfold. www.AVBUYER.com

Business jet inventory ‘for sale’ rose to 9.9% of the in-service fleet at the end of March 2020, representing more than 2,200 jets, according to the latest JETNET records (updated through mid-April 2020). At the same time, business turboprop inventory ‘for sale’ has remained relatively stable at about 7% of the worldwide fleet, representing ~1,100 aircraft. Retail whole aircraft and lease transactions – a good measure of end-user demand - were down about 23% worldwide in March 2020 YoY for pre-owned jets, with 318 days-on-market on average for aircraft that did transact, up 22% over March 2019. The more stable turboprop market continued to hum along, with transactions down just 4%, and days-on-market down 8% in March 2020 versus the same period in 2019. While this performance in the current market is noteworthy, it may not be sustainable for much longer if the COVID-19 crisis endures – particularly in light of the sharp drop in commodity prices and in the value of local currencies against the US dollar.

In Summary…

As recently as the Q1 2020 JETNET iQ Survey of more than 500 business aircraft owners / operators in 59 countries, the most significant challenge that was facing the Business Aviation industry was the availability of adequate numbers of qualified pilots and maintenance technicians. In the span of the last 30-45 days, this concern has largely (but temporarily) vanished, displaced by an invisible and deadly pandemic that has already disrupted our markets, economies and ways of life. Navigating safely through the storms of COVID-19 will require the full attention and resources of leadership, now and for the foreseeable future. Business Aviation leaders must also prepare for a future beyond this crisis, and many are taking care of their people even if it is not easy for them to be taking care of customers. Although shiny, high-performance aircraft command most of the attention in our industry, this is ultimately a people business. Our people and customers will be needed more than ever when we get through this turbulent period. MI www.navigating360.com

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AVBUYER MAGAZINE Vol 24 Issue 5 2020

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MARKET INDICATORS

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Flight Activity – North America As COVID-19 cases, and associated stay-at-home orders increased, Business Aviation activity has shrunk in North America. According to ARGUS, March 2020 flight activity saw an overall decrease of 31.7% compared with March 2019. During March, ARGUS has watched normal life come to halt across the planet, Business Aviation included. A review of the first 10 days of March, compared to the same period in 2019, showed that activity was only down about 5% - a company white paper notes – but when states started locking down (around March 15th) activity changed significantly. “We recorded 56,154 Business Aviation flights from March 11th–17th, but, after nationwide social distancing and shelter in home orders were issued, we saw flight activity for March 18th–24th record 28,899 flights; a drop of 46.8%,” the white paper revealed. “We’re now seeing activity levels that are closer to Christmas day activity, rather than one of the busiest months on the calendar.” So what does the immediate future hold in store for Business Aviation? ARGUS says it’s unclear, but that there are some indications we’re “not too far from blue skies and tailwinds again”. “Many estimates assume a peak in COVID-19 cases in the US sometime in April. While we have no way of knowing, the data indicates the sooner the better for our overall health, the health of our country and the health of Business Aviation.

“The longer this shelter in place and work from home order goes on, the more difficult the restart scenario will be… A later peak also indicates that our recovery is going to be slower because the longer companies are placed on hold burning through cash, the longer it will take to restart,” ARGUS suggests.

April Forecast

Initial predictions for April estimate activity in North America will see a drop of more than 60% YoY “if shelter in place and overall nationwide lockdown orders remain,” but could be less if the situation were to stabilize sooner. “One factor that will play a significant role in aviation’s resumption will be the idea of opening parts of the country first,” ARGUS’ white paper highlights. “The situations in New York, Washington and California are dire and show how awful this hidden virus is. Understanding the gravity of the situation in those states, it is unlikely that they will be part of the initial recovery for Business Aviation. Argus says the industry will need to focus on other top regions – Texas, Florida and Georgia included, which accounted for a combined 21% of all BizAv activity in 2019. “If those three states come back online within the first weeks, following the peak, then our recovery could be faster, but if they lag, the overall industry is going to lag with it." MI www.argus.aero

Flight Activity – Europe Business Aviation departures from Europe were down by 34% in March 2020 compared with March 2019, according to WingX. Overall, there were 17,800 fewer flights flown Month-over-Month, and declines accelerated towards the end of the month. Activity in Italy has been most affected, with just over 1,000 departures during the entire month (70% below March 2019 activity). And activity in France, normally the busiest market, was down by 43%. Germany and Switzerland each saw declines of over 30%, while flights in the UK fell by 23%. Bucking the trend, and over the whole month, flights in Sweden were up 1.3%. All aircraft segments have seen severe declines, with Ultra Long-Range aircraft most impacted and operations down by 40%. Branded charter and private flight departments cut back activity by 20% in March, whilst aircraft management companies registered a 50% fall in flight activity. Meanwhile, air ambulance traffic more than doubled. According to WingX’s managing director, Richard Koe, “the abruptness of the decline in Business Aviation activity this month is only comparable to the effect of the Eyjafjallajökull volcano eruption back in 2010 – only with much longer and more severe consequences.

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"We expect a trough in flight activity in April, which may see some countries completely shut down flights. With an optimistic outlook for ending virus containment, we might see renewed demand for flights by the Summer, at which point Business Aviation may have a window of opportunity to meet pent-up demand whilst the airline capacity is still parked.” MI www.wingx-advance.com

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MARKET INDICATORS

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Hagerty Jet Group: Slow Return to Normal Like the rest of the world, business jet transactions have come to a near halt in the past four weeks. Hagerty Jet Group predicts the return to normal will be slow and gradual. The industry is faced with many challenges currently. It’s easy for deals to fall apart in this economic environment but it’s much harder to make transactions come together. Travel restrictions are preventing professionals from performing visual inspections of aircraft. Contracts will undoubtedly take longer as many aviation attorneys are working remotely. Inspection facilities have availability for pre-purchase inspections, but access to

the facilities can be limiting. “We’ve heard tales of financing falling apart at the end of deals and many transactions have cratered over the past few weeks,” Hagerty Jet Group reports. “The term ‘Force Majuere’ is making its way back into our vocabulary after nearly 10 years following the Great Recession. “Most business jet buyers and sellers are focused on their families and their businesses right now and for many, the decision to upgrade or sell is low on their list of priorities.” For Sellers who are motivated and looking for the next buyer, the good news is there is activity - albeit opportunistic buyers who are throwing around offers

20-30% below market value in Q1, Hagerty Jet Group says. For those on the sidelines with cash ready to make a deal in the short term, the opportunities will be there. Sellers who agree to discounted prices will now want larger deposits and stricter terms and conditions prohibiting buyers from walking away from deals. “There’s no doubt that aircraft values will be immediately impacted by the current global economic recession. We can’t predict where things will go, but transaction levels won’t be back to normal for at least another year or two,” Hagerty Jet Group concludes. MI https://hagertyjetgroup.com/

Is BizAv Better Prepared for COVID-19 Than Financial Crisis? Business Aviation may be better prepared for the COVID-19 downturn than it was for the 2007 financial crisis, says analyst Brian Foley. In a matter of days, the Business Aviation community went from optimism over a promising start to the year to a state of bewilderment, uncertainty and anxiety. While anyone can surmise which way business jet sales and usage are headed, based on the recent avalanche of negative financial news, the industry is arguably in better shape to weather this downturn than it was going into the pummeling 2007-2008 financial crisis. Here’s how…

What’s Different This Time? The Pros

The epicenter of Business Aviation is the US, where 63% of the world’s fleet currently resides, per AMSTAT. Before the turn of events, US stock markets had been at all-time highs and were 67% above 2007 levels (with quarterly corporate profits around a third higher). The most recent quarterly GDP growth figure was 2.1%, compared to 1.9% in 2007. Meanwhile, manufacturing was improving, job growth strong, consumer strength was meaningful and business investment healthy. The unemployment level hovered at historic lows. The most important economy to the industry was clearly in better shape before this current downturn than it was in the last. Congressional reforms to the financial system have required more reserves by banks and tighter lending standards, providing added liquidity and reduced credit risk. For those who need to finance or lease a jet, rates are significantly lower than they were back then. While the backlogs of business jet manufacturers are smaller than in the late 2000s, they aren’t stacked with as many speculators. Some OEMs put added teeth in their contracts since the last downturn, aimed to keep ‘airplane flippers’ out of their books. While there will inevitably be some cancellations and deferrals, the current order books are stickier. Business jet deliveries grew a solid 15% in 2019 after being

www.AVBUYER.com

essentially flat over the past decade. Much of the increase was from a bevy of recently introduced new planes, which tend to stir up sales, and will do so into the future.

What’s Different This Time? The Cons

There are admittedly some weaknesses in 2020 compared to before. International markets are weak and will not provide the safety net they once did back when emerging markets were vibrant. Whereas the Federal Reserve had room to cut interest rates back then, today we’re already essentially at zero, meaning fewer accommodative tools. As it was in 2007, the new jet market is still oversupplied with too many models chasing a finite number of buyers.

The Net Effect of it All?

Few in business aviation will escape the impending downdraft. New and pre-owned sales will all be impacted as buyers wait for some semblance of normality. Reduced business jet utilization will ultimately impact fuel sales (FBO) and maintenance (MRO) activity. While there has been a recent spike in charter activity due to one-time Carlos Ghosn-style overseas escape plans, that too will taper as fewer onsite meetings occur. Pre-emptive layoffs at smaller firms have already occurred with more public announcements likely to follow. The industry will undeniably be impacted after 10 years of relatively clear sailing. It’s a cyclical business. But the speed and intensity of the change caught many off guard. Although there will be casualties, the majority of players have been here before and are survivors, having adapted their businesses to swings in the past. It is said that the second half of 2020 may be more forgiving, but the wait will admittedly be excruciating. While there’s always a worst-case scenario, it’s possible that the positives going into this downturn will at least help to soften the inevitable blow. MI www.avstrategies.com

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AIRCRAFT SALES & ACQUISITIONS

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NEW LISTING

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

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2 0 1 5 L e g a c y 5 0 0 s /n 5 5 0 0 0 0 1 6

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MARKET INDICATORS

Table A

In-Service Aircraft Values & Maintenance Condition

Fleet Maintenance Condition 5.35

$1.40 $1.40

Quality Rating

Inventory Fleet Maintenance Condition

The fleet for sale posted a 12-month best (highest) asset quality rating during the month, and the increase in availability resulted in near-term maintenance costs running slightly above the 12-month average. Asset insight’s tracked inventory registered the following figures: Quality Rating: The fleet for sale’s Quality Rating stayed within the ‘Excellent’ range, and was virtually unchanged in March at 5.297, compared with February’s 5.295 (on a scale of -2.5 to 10). Maintenance Exposure: After improving (decreasing) for three consecutive months, Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) increased (worsened) 5.5% to $1.399m, meaning upcoming maintenance for the current fleet would be more expensive to complete. But the figure was only slightly greater than the $1.391m 12-month average.

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 Q1 2020, assets whose ETP Ratio was 40% or more were listed for sale nearly 68% longer (on average) than aircraft whose Ratio was below 40% (246 Days versus 413 Days on Market). March analytics revealed that nearly 48% of the tracked models, and over 51% of the tracked fleet, posted an ETP Ratio greater than 40%. March’s fleet ETP Ratio worsened (increased) to 71.1% from February’s 65.4%, a figure that approached both the 12-month worst (highest) Rating of 72% and the record high Rating of 72.3%. Turboprops, for the fourth consecutive month, registered the lowest ETP Ratio at 42.1% (concurrently representing the group’s best 12-month figure for the third consecutive month). Large Jets were a distant second at 64.7%.



$1.35 $1.30

During March, the average Ask Price for aircraft in the tracked fleet decreased a nominal 0.5%, primarily owing to a 6.7% drop in Medium Jet pricing. Small Jet pricing increased 3%, Turboprops rose 1.7% (setting a 12-month high figure), and Large Jet prices increased nominally 0.1%.

www.AVBUYER.com

$1.45

5.15

Aircraft Values

•

$1.50

5.297

5.25

With COVID-19 causing decreased flying, Asset Insight’s March 31 market analysis of 134 fixed-wing models and 2,218 aircraft listed for sale uncovered a 1.2% inventory fleet increase over February’s figure, and a YTD increase to the global tracked fleet of 1.6%.. All four groups contributed to the increase, with Medium Jets leading the way with a 1.8% rise, followed by Turboprops (1.4%), Large Jets (1.3%), and Small Jets (0.4%).

•

$ Million

Maintenance Exposure

Quality Rating Trendline

Table B Citation XLS (MSG3) 40.9% G500 1.2% G650ER 3.4% Embraer Legacy 600 41.6% CL-650 4.5% F900 44.6% G650 5.0% KingAir B-200 - Pre-2001 45.9% Global 6000 5.2% G200 47.5% F2000LXS 5.9% GIV-SP (MSG3) 52.2% Citation CJ3+ 7.3% CL-604 53.1% Citation Sovereign + 8.6% Premier 1A 53.7% CL-350 8.9% G400 56.2% Citation X+ 9.2% Citation Bravo 56.7% F7X 9.8% Learjet 40XR 57.5% F2000LX 11.1% Hawker 400XP 59.6% Boeing BBJ 11.2% TBM 700A 62.9% G280 11.2% Citation CJ1 63.2% Legacy 650 11.5% Citation V Ultra 64.1% King Air 350i 13.1% Citation CJ4 525C 13.8% Learjet 40 65.2% F900EX EASy 14.1% KingAir 300 68.8% Phenom 300 15.0% Learjet 45 w/APU 72.2% F900DX 16.2% F2000 74.5% CL-605 17.2% Citation V 560 75.2% Citation Encore + 17.6% Hawker Beechjet 400A 78.6% Piper Meridian 18.3% Hawker 800XP 79.5% Citation Sovereign 680 18.7% Global Express 79.7% Pilatus PC-12 19.1% GIV-SP 82.8% G450 21.0% Citation VII 89.2% TBM 850 21.4% Learjet 45 89.3% Hawker 900XP 22.3% Premier 1 89.8% Citation CJ3 22.6% Learjet 60 97.9% G150 23.2% Piaggio P-180 99.2% Caravan 208-675 23.2% G550 24.0% Hawker Beechjet 400 105.5% Nextant 400XTi 25.4% Learjet 55C 110.7% Phenom 100E 25.8% Citation VI 119.1% Global XRS 27.6% Hawker 1000A 120.3% F900EX 28.1% KingAir C90 120.7% Caravan 208 28.1% Citation ISP 126.1% Learjet 45XR 28.3% F50 127.0% GV 29.7% Learjet 31A 128.1% Citation Encore 29.7% CL-601-3R 139.7% Citation CJ2+ 525A 31.1% G100 144.5% KingAir 350 - Post-2000 31.3% Citation II 147.4% CL-300 31.5% GIV 148.4% Citation CJ2 32.9% Learjet 36A 151.1% Caravan Grand 208B 33.0% Hawker 800A 152.5% KingAir B-200 - Post-2000 35.2% Learjet 55 192.8% Global 5000 35.7% Citation CJ1+ 36.2% Citation III 194.9% KingAir 350 - Pre-2001 36.2% Learjet 31 201.9% F50EX 36.5% Citation I 232.7% Piaggio P-180 II 37.2% CL-601-3A 240.4% F900B 37.5% Learjet 35A 272.1% Citation Excel 560XL 37.6% Hawker 125-700A 279.9% Learjet 60XR 37.8% CL-601-1A 309.0% Phenom 100 38.0% F20-5 318.5% Hawker 850XP 38.3% GIII 634.3% Citation Mustang 510 38.5% Hawker 4000 39.7% Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of March 31 2020 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)

AVBUYER MAGAZINE Vol 24 Issue 5 2020

MarketIndicators APRIL20.qxp_Layout 1 21/04/2020 10:18 Page 6

MARKET INDICATORS

AVBUYER.com

Large Jets Ask Price vs. Maintenance Exposure

Asset Quality Rating

$ Millions

Scale -2.500 to 10.000

$ Millions $3.60

• •

$3.20

Medium Jets were next (74.6%). Small Jets worsened (increased) to 90.2%, the group’s 12month worst figure.

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

5.400

Oct-19

5.500

Sep-19

Mar-20

Jan-20

Feb-20

Dec-19

Nov-19

Oct-19

Sep-19

Jul-19

Aug-19

$2.80

Jun-19

$10.0

May-19

$3.00 Apr-19

$11.0

Aug-19

$3.12

5.589 5.600

Jul-19

$12.0

$3.40

Jun-19

$13.0

5.700

May-19

$13.0

Apr-19

$14.0

Market Summary

than the group’s 12-month average. Overall, the group’s ETP Ratio, and its other datapoints, continue to demonstrate opportunities for both buyers and sellers to derive value from a large number of inventory assets.

Large Jets: Our tracked fleet’s inventory increased another six units in March, decreasing (worsening) the group’s Quality Rating to 5.589 from February’s 5.626, but still managing to remain within the ‘Outstanding’ range. Following suit, Maintenance Exposure worsened (increased) by 5.9%, but that figure was below the group’s 12-month average, while Ask Price rose slightly, 0.1%, to register higher

Medium Jets: The group’s Quality Rating remained within the ‘Excellent’ range, even though it lost some ground. Maintenance Exposure improved (decreased) 0.6% to remain at a better-thanaverage figure. Medium Jet inventory increased by 11 units, with the new fleet mix lowering the average Ask Price by 6.7%, following February’s 12-month high figure. While the ETP Ratio worsened (increased) in March, the figure is still better than the group’s 12month average. With 11.3% of our active (tracked) fleet listed for sale, buyers will more than likely have the advantage.

10.3% of the tracked fleet was listed for sale at the end of March. The lowest (best) figure was captured by Turboprops (8.1%), followed by Large Jets (8.8%), Medium Jest and Small Jets (11.3% and 12.0%, respectively).

Ask Price vs. Maintenance Exposure

Medium Jets

Asset Quality Rating

$ Millions

$3.75

Scale -2.500 to 10.000

$1.35

$3.25

$3.24

$3.00

$1.30

5.200

22 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

5.000 May-19

$1.25

Apr-19

Feb-20

Mar-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

Jun-19

May-19

Apr-19

$1.26

Jun-19

5.100

$2.75 $2.50

5.283

5.300

$3.50

www.AVBUYER.com

MarketIndicators APRIL20.qxp_Layout 1 21/04/2020 10:20 Page 7

AVBUYER.com

MARKET INDICATORS Tony Kioussis is president of Asset Insight. The company provides audit and valuation services and has developed a standardized Asset Grading System scale that evaluates an aircraft’s maintenance condition.

Small Jets Ask Price vs. Maintenance Exposure

Asset Quality Rating

$ Millions

$1.95

Scale -2.500 to 10.000

$0.90

$0.88

$1.85

$0.80

5.400 5.300

5.212

5.200

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

5.000

Jul-19

$0.60

Jun-19

Mar-20

Jan-20

Feb-20

Dec-19

Nov-19

Oct-19

Sep-19

Jul-19

Aug-19

Jun-19

May-19

Apr-19

$1.65

5.100

May-19

$0.70 $1.79

Apr-19

$1.75

are going to cost more to complete (hence the 1.3% increase to Small Jets: Inventory increased by only three units in March, but Maintenance Exposure). with 12% of the active fleet listed for sale, buyers are in the The news for sellers within this group continues to be positive, driver’s seat with respect to this group as well. though, with Ask Prices rising to a 12-month high, and the ETP With a 1.1% Quality Rating improvement, Small Jets remained Ratio posting a 12-month low (best) figure. While total inventory within the ‘Very Good’ range. However, the number of near-term is still down 14 units from year-end, sufficient selection should be maintenance events is projected to be higher, as is the average available to please most buyers. cost to complete such events, hence the hefty 14.5% MI www.assetinsight.com T Maintenance Exposure increase. The group did post a 3% Ask Price increase, leading to an above-average figure. But, with an ETP Ratio exceeding 90%, the Asset Quality Rating Key spread between Ask Price and actual Transaction Value is Asset Insight analyticsof (www.assetinsight.com) Very Below anticipated to widen if sellers wish to dispose their aircraft. Turboprops: Based the group’s Quality Rating, which Asseton Insight analytics (www.assetinsight.com) decreased slightly but remained within the ‘Very Good’ range, maintenance events are anticipated to be fewer, thanks to the current inventory mix. Unfortunately, those maintenance events

Turboprops

www.AVBUYER.com

Mar-20

Feb-20

4.750 Jan-20

$0.50

Dec-19

4.850 Nov-19

$0.55

Oct-19

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

Jun-19

May-19

Apr-19

$1.40

$0.55

4.950

Sep-19

$0.60 $1.50

5.050

Aug-19

$0.65

$1.60

5.135

5.150

Jun-19

$0.70

May-19

$1.65

Average Average 4.500 Less to than 4.749 4.500

Good 4.750 to 4.999

Scale -2.500 to 10.000

Apr-19

$1.70

Good 5.000 to 5.249

Asset Quality Rating

$ Millions

Jul-19

Ask Price vs. Maintenance Exposure

Outstanding Excellent 5.500 5.250 or to Greater 5.499

AVBUYER MAGAZINE Vol 24 Issue 5 2020

Project1_Layout 1 24/04/2020 11:48 Page 1

Project1_Layout 1 24/04/2020 11:49 Page 1

O'GaraJets May.qxp_Layout 1 21/04/2020 11:45 Page 1

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Market Insights 1.qxp_MARKET INSIGHTS 21/04/2020 13:34 Page 1

MARKET INSIGHTS

What is the Impact of Coronavirus on BizAv? The global economic shutdown sparked by the coronavirus is inevitably taking a heavy toll on Business Aviation. Gerrard Cowan speaks to the industry experts who are looking for practical ways to respond to the crisis…

nprecedented travel restrictions have been imposed across aviation, and the private and business markets are not being spared. At a broader level, the success of Business Aviation is closely tied to the health of the global economy, which has been put on ice as countries tackle the spread of the coronavirus. The picture is almost universally grim across every sector of the industry. Aircraft manufacturers and service providers are furloughing or laying off employees, said a spokesperson for the National Business Aviation Association (NBAA). Maintenance and repair shops – which are mostly family-owned businesses – are being particularly hard hit, with airplanes sitting idle.

28 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

At least one such US company has asked its employees to repurpose their work towards the production of protective face masks for humanitarian purposes. Meanwhile, Business Aviation airports are watching their traffic dwindle by as much as 70% when compared to the same period of 2019. “That’s bad news for the airports, but also for the fixed base operators (FBOs), fuel providers and others on the field, as well as the hotels, restaurants and other businesses nearby,” the NBAA spokesperson said. However, Business Aviation will benefit from elements of the US Coronavirus Aid, Relief, and Economic Security (CARES) Act, the spokesperson added. www.AVBUYER.com

Market Insights 1.qxp_MARKET INSIGHTS 21/04/2020 13:36 Page 2

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

dislocation, we could well see a significant slowdown in new aircraft sales, rising used aircraft inventory levels, and a slow recovery in the volume of aircraft operations.

Europe: Solidarity in Addressing the Crisis

How Will Business Aviation Bounce Back?

In the very near term, strict social distancing measures and the closure of workplaces are likely to have a similar impact across all segments of the Business Aviation industry, according to Adam Cowburn, managing director of Alton Aviation Consultancy. How individual segments then recover will be more a function of the broader economic trajectory, he adds, noting that “it was just a few weeks ago that most corners of the Business Aviation market were performing reasonably well”. If the global economy can mount a reasonably quick comeback, the recovery of various parts of the industry could be fairly consistent, Cowburn added. But if there is a prolonged economic www.AVBUYER.com

Many operators are taking practical steps to address the crisis. For example, Luxaviation Group has launched the European Business Aviation Solidarity Initiative (EBASI), which will place the company’s administrative, financial and procurement resources at the service of smaller operators and other companies during the crisis. Participating companies will, where possible, be able to access the same pricing that Luxaviation receives from its suppliers. EBASI also enables operators to access the documents required by authorities and other agencies to reduce costs. Luxaviation CEO Patrick Hansen noted that because his company is active in Asia, in early March it had a glimpse of what was to come in Europe. The company recognized that serious problems were coming for the industry, he told AvBuyer. “We cannot have a bloodbath in the industry.” The first week of the initiative was relatively quiet, Hansen said, but requests have since started to come in from operators. “The difference now is that people are seeing the crisis at their front door.” Luxaviation is inviting other companies to join EBASI, and is willing to extend the initiative to other parts of the world beyond Europe. It is particularly keen to secure the involvement of the European Business Aviation Association (EBAA), with its financial support potentially providing



AVBUYER MAGAZINE Vol 24 Issue 5 2020

Market Insights 1.qxp_MARKET INSIGHTS 21/04/2020 13:36 Page 3

MARKET INSIGHTS

AVBUYER.com

“Luxaviation Group has launched the European Business Aviation Solidarity Initiative (EBASI) [which it hopes] to Photo courtesy of Luxaviation

place under the EBAA’s supervision.”

rescue funds, which would be overseen by the various European aviation regulatory bodies. Luxaviation would then wish to place EBASI under the EBAA’s supervision. EBAA spokesperson Frederique Luca said, “We applaud all solidarity initiatives aimed at supporting the Business Aviation sector right now”, adding that there have been a variety of initiatives from Business Aviation associations and other operators. However, any specific proposal for the EBAA’s involvement or endorsement would first need to be agreed in consultation with members and other governing bodies, Luca added. In early April EBAA contributed to an open letter from a range of similar European associations calling on policymakers and regulators in the continent to protect the continuity and survival of Business Aviation in the face of the pandemic. The letter called for full and effective coordination with the industry and its related associations; to ensure basic operational continuity for companies in the sector; and to implement all measures as soon as possible to ensure that Business Aviation could resume its normal activities when the crisis has passed.

director, Asian Sky Group (ASG), an aviation services specialist and consultancy. The fleet of business jets in the region had only increased by 1.4% during 2018, with the number for year-end 2019 expected to be even lower than this, Lowe says. However, in 2020 the sector is now faced with the same challenges as other industries, with corporate and private travellers faced with mandatory quarantines and other travel restrictions. The long-term impact of the virus will depend on how long such restrictions stay in place, Lowe said. “Is this a 60-day thing and then everything calms down, or are we in it for six months and it becomes the new norm?” As of late March, ASG had seen several buyers step back from planned acquisitions. These are mainly on-hold, rather than cancelled, according to Nadav Kessler, vice president, sales and business development, ASG. "They [buyers] are just not sure what the financial situation will be in say three months from now, and are taking a more cautious approach.”

Asia Pacific: Impact Depends on Restrictions

Could there be increased demand for private aircraft in certain areas? Industry experts are sceptical. Cowburn said that while some aspects of the current situation might otherwise have favoured an increased preference for Business Aviation over scheduled airlines, “we expect these factors will be vastly outweighed by a significant

The first cases of Covid-19 were reported in Wuhan, China, meaning Asia has been grappling with the crisis for longer than other regions. Even before the onslaught of the virus, the Business Aviation market in the region had been slowing for a number of years, said Jeffrey Lowe, managing 30 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Are There any Signs of Hope Despite the Coronavirus Cloud?



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Market Insights 1.qxp_MARKET INSIGHTS 22/04/2020 10:38 Page 4

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Photo courtesy of Jetcraft Corp

MARKET INSIGHTS

near-term drop-off in overall travel. “Governments worldwide have taken dramatic steps to encourage social distancing, which has suppressed all travel demand.” The challenges faced by the sector could create buying opportunities for private equity, he added, which “has a significant amount of available capital it needs to put to work”. Alton expects to see renewed interest over the next year or so in FBOs, MROs, suppliers and other service providers, because “these are the parts of the value chain where private equity historically had interest.”

The Importance of the Long-Term View

While these are challenging times, those who can should take a long-term view and consider how an aircraft purchase or upgrade can meet their current or future needs, says Peter Antonenko, COO, Jetcraft, an aircraft sales, marketing and ownership strategies specialist. The International Aircraft Dealers Association had reported 54 aircraft transactions among its members in March, with about 120 more under contract, he adds. And, according to Antonenko, Jetcraft closed an aircraft sale in early April,

ad re Re Mo

32 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

despite the coronavirus-related shutdown. “The pre-owned market has certainly been affected by the current economic situation resulting from the coronavirus pandemic, and we are seeing some deals put on pause,” he shares. “However, at this stage, we don’t see any reason for significant declines in pricing for pre-owned aircraft.”

Is the BizAv Industry Better Prepared This Time?

In a recent note on the impact of the shutdown on the sector, aviation analyst Brian Foley said that in some ways, Business Aviation may be better prepared than it was for the 2008 financial crisis, with stronger order books, and a more robust banking sector to offer credit when the worst is over. However, Foley warns that few in Business Aviation will escape the impending downdraft. “It’s said that the second half of 2020 may be more forgiving, but the wait will admittedly be excruciating,” Foley adds. “While there’s always a worst-case scenario, it’s possible that the positives going into this downturn will at least help to soften the inevitable blow.” T

MARKET INSIGHTS

at AVBUYER.com

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Freestream May.qxp 22/04/2020 09:53 Page 1

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Market Insights 2.qxp_MARKET INSIGHTS 21/04/2020 13:59 Page 1

MARKET INSIGHTS

COVID-19:

Is There a Bright Spot in the BizAv Market? What are the points of optimism, and the market realities for used aircraft sales during the COVID-19 pandemic? Rebecca Applegarth speaks with Charlie Bravo Aviation’s René Banglesdorf… he used business aircraft market has perpetually ebbed and flowed over the decades. Today, with the uncertainty that comes with the global COVID-19 pandemic, a Presidential election year in the US, and ongoing negotiations over what Brexit will look like in Europe, it’s natural to anticipate leaner times for the pre-owned marketplace. Reflecting on the year up to around March 1, René Banglesdorf, co-founder and CEO, Charlie Bravo Aviation notes, “We were seeing the market balancing out from a seller’s market to more of a stable divide. “With major disruptions in the world economy, oil prices conflicting, and a pandemic all at the same time, though, it’s entirely unsurprising that there’s market uncertainty and delays occurring now,” she adds.

34 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

One thing Banglesdorf can predict with relative confidence is that the pre-owned aircraft sales scene will not be a seller’s market for the rest of 2020. “Sellers should be ‘aggressive’ with their pricing at this current time of market uncertainty if they want to sell their aircraft anytime soon.”

Positives Despite the COVID-19 Cloud

Ms. Banglesdorf initially got into the industry via freelance work for an aircraft brokerage that her husband, Curt, was also working for. Using her background in business journalism, in 2008 she and Curt started their own company, just before the start of the Great Recession. The new company survived the tempestuous market that followed, and since its start-up Charlie Bravo Aviation has conducted business with clients in 43 different countries, across six continents. www.AVBUYER.com

Market Insights 2.qxp_MARKET INSIGHTS 21/04/2020 14:00 Page 2

AVBUYER.com

During that time, Banglesdorf has seen a lot happen within the used aircraft sales market. So does she see any reason for optimism in today’s market, and if so, for whom? “There is room for sellers to be optimistic if they hold a Part 135-ready aircraft, as long as it can remain on the Part 135 certificate after it’s been sold to its new owner,” she shares. “Once people start traveling again, I expect many will prefer charter to first class seats on the airlines.” Another attraction of Business Aviation during the COVID-19 crisis is that social distancing is easier in a Fixed-Base Operation, since it’s less populated than in a crowded airline terminal. And with fewer seats aboard and prior knowledge of the passengers you travel with, potential exposure to the virus is lower on a private airplane.

Heavy Jet Demand Remains

The inventory for sale at Charlie Bravo Aviation includes Turboprops, Light Jets, Mid-size Jets and a couple of Large (Heavy) Jets. “There has been an increase in Heavy Jet activity in the last year,” Banglesdorf notes. “However, there has been a growing stagnation in the Turboprop market. It’s unusual for us, at Charlie Bravo Aviation, to see turboprops move as

slowly as we’ve seen them do in the last couple of months.” But what could potentially be contributing to the Heavy Jet market activity to date, and ongoing? “With the scheduled airlines having taken a hit in activity at the outset of this pandemic, Heavy Jets offer better range and larger capacity,” Banglesdorf argues. “These can safely substitute for flight routes taken regularly by businesspeople with social distancing measures effectively in place, while they continue to maintain a working structure. Heavy, longer range, faster, higher capacity aircraft are selling better than even the jets a step down from them,” Banglesdorf adds. “Nevertheless, as the world returns to a normal way of life again post-COVID-19, I can see that changing in the next year with a pick-up in the volume of airplanes sold that provide a lower cost of entry [to Business Aviation],” she concludes with a note of optimism. “But, of course, with political, economic and public sentiment changing every day, this too is subject to change…” More information from www.wepushtin.com T

“I can see that changing in the next year with a pick-up in the volume of airplanes sold that provide a lower cost of entry [to Business Aviation].”

Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.

www.AVBUYER.com

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IN SERVICE DECEMBER 2010, AIRFRAME ON SMART PARTS PLUS, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, ONE OWNER SINCE NEW, BATCH 3.3, FANS 1/A, CPDLC, TCAS 7.1, ENHANCED VISION SYSTEM (EVS), HEAD-UP DISPLAY (HUD), INMARSAT SWIFTBROADBAND & INMARSAT SWIFT 64

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ONE OWNER SINCE NEW, 96 MONTH INSPECTION COMPLIED WITH JULY 2017, PROLINE 21 ADVANCED UPGRADE, AIRFRAME ON SMART PARTS PLUS, ENGINES ON GE ONPOINT, APU ON HONEYWELL MSP GOLD

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2005 GULFSTREAM G550 SERIAL NUMBER 5058 – REGISTRATION N2480H

ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, CUSTOM 14 PASSENGER FLOORPLAN BY GULFSTREAM SAVANNAH IN 2009, AFT GALLEY & FORWARD CREW REST, U.S. REGISTERED / FAA PART 135, ADS-B OUT, FANS-1/A, CPDLC, BROAD BAND MULTI-LINK (BBML) HIGH SPEED DATA WITH GEN 2.5 SERVER (YONDER SERVICE), SWIFT BROADBAND, 12 MONTH / 500 HOURS INSPECTION C/W FEBRUARY 2020

1997 GULFSTREAM G-V SERIAL NUMBER 506 – REGISTRATION M-FISH

LOW TIME, ENGINES ON ROLLS ROYCE CORPORATE CARE, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, MECHANICAL PARTS ON HONEYWELL MECHANICAL PROTECTION PLAN, NO DAMAGE HISTORY, OPERATED PRIVATELY – NOT FOR CHARTER, FAA COMPLIANT – PART 91, FORWARD GALLEY & CREW REST, NEW EXTERIOR PAINT & INTERIOR IN 2015, SPACIOUS 8+1 PASSENGER CONFIGURATION FEATURING AFT PRIVATE MASTER BEDROOM WITH FIXED FULL SIZED BED

2005 DASSAULT FALCON 900EX EASy

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25 Park Lane, London W1K 1RA EU +44 (0) 203 603 0000 | US +1 917 414 1995 sales@thejetbusiness.com | www.thejetbusiness.com

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MARKET INSIGHTS

What’s Popular with Light Turbine Aircraft Buyers? Providing insights on the market sectors his company specializes in, Lone Mountain Aircraft’s Mark Rogers shares observations with Rebecca Applegarth on light turbine and piston business aircraft market demand… hough there is much uncertainty in light of the coronavirus pandemic embroiling much of the world, the Business Aviation community continues to try and function the best it can. Hope abounds that a semblance of normality can be regained relatively quickly in the wake of the virus. But what exactly was that normality? What was the market looking like before the current challenges? “We got off to a great start this year,” says Mark Rogers, president and founder of Lone Mountain Aircraft. “In fact, we had a record Q1 in terms of sales volume, but numbers began reducing heading into Q2.”

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Lone Mountain was founded with the belief that buying and selling aircraft should be “turbulencefree”, and the company aims to provide a complete range of aircraft sales and acquisition services to meet the needs of individuals and companies across the US and in Europe. Discussing the marketplace, Rogers notes, “The total fleet for sale is only 10% but there is a much higher percentage of older model aircraft on the market. On the other hand, newly-designed aircraft that require less maintenance and have easily upgradeable platforms are still in the single digit fleet-for-sale territory.” One significant factor impacting the sales www.AVBUYER.com

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marketplace pre-coronavirus was the aviation insurance market, according to Rogers. “This past year we’ve seen two clients in the owner-flown market purchase pre-owned instead of new, due to a lack of insurance availability for single-pilot operations with adequate hull coverage.” Although insurance premiums are increasing for all operators, the single-pilot/Light Jet market seems to be the most significantly impacted, Rogers adds, pointing out that the light turbine market his company serves has, nevertheless, “shown remarkable resilience in demand”.

What is Today’s Buyer Searching For?

Today’s buyer of modern light turbine aircraft has a higher expectation for the technology installed in the aircraft than ever before, Rogers notes. “Buyers and sellers use a different vocabulary than in the past,” he reveals. “Specifically they’re referring to the avionics and safety equipment that has debuted over the last few years. “Today's buyer is more likely to search for an aircraft that’s either equipped or upgradeable with such features as auto-throttle, emergency auto land, fully coupled V-NAV, emergency descent mode, and a list of other features.” And rather than specific types of aircraft selling more quickly than others, it appears buyers are ultimately value-motivated, which could explain the MARK ROGERS, LONE MOUNTAIN AIRCRAFT

more robust pre-owned market. “Aircraft that are priced too high will languish on the market despite a healthy overall marketplace,” Rogers adds.

Linking the Ownership Upgrade Chain

The piston market has long provided a supply line of owner/operators who initially use their piston aircraft for business purposes before moving into turbine powered aircraft as their mission needs expand. Lone Mountain Aircraft’s sales business lists several high-end piston aircraft for sale. One of the company’s areas of expertise is its highperformance, owner-flown Cirrus models. “Cirrus, with its one-of-a-kind whole airplane parachute system, has attracted new pilots and first-time owners for years,” Rogers notes. “Piston aircraft provide an excellent starting point, but many times once a business owner gains the experience and confidence needed, they become intrigued by the idea of an airplane to take them higher and faster.” Generally, he explains, pilots who own aircraft are “usually looking for what's next every three years or so”. Conveniently for those pilots, Lone Mountain Aircraft is a leading reseller of the Cirrus Vision Jet, and also offers expertise on its team in Embraer, Bombardier Learjet, Textron, Daher TBM and Piper products to help clients move into the business jet or turboprop that will suit their step-up needs. In addition to its aircraft sales services, Lone Mountain Aircraft provides maintenance services, and also founded AvCap Financial. “AvCap was established to provide innovative financing solutions to help our clients get in the air faster,” Rogers says. “It’s branded separately so customers understand they don't have to purchase through Lone Mountain to use our financing.” These are complex times, and nobody is in a position to predict with certainty how they will play out just yet. With increasingly sophisticated demand from the buyers in the markets the company serves, though, it’s clear Lone Mountain Aircraft has positioned itself well for the future. More information from www.lonemountainaircraft.com T

Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.

ad re Re Mo

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MARKET INSIGHTS

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AVBUYER MAGAZINE Vol 24 Issue 5 2020

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2004 HAWKER 400XP • Serial Number: RK-374 • RVSM and Currently on a FAR 135 Certificate • Based and Registered in the US Since New

2007 LEARJET 45XR • Interior Carpet and Leather Refurbishment – Jan. 2019 • Always Hangared

2016 KING AIR 350I • Serial Number: FL-1040 • ADS-B Out • Aircell ATG-5000 WIFI • Low Hours - 911 Since New

• Delivered with Recent A - D Inspections • Paint and Interior Refurbished - 2016

2009 HAWKER 750 • Collins Pro Line Fusion • Fresh Textron Pre-Buy Assurance Program Inspections

1981 KING AIR B100 • Serial Number: BE-118 • 2020 ADS-B Compliant • Executive Wings Winglets • Chelton EFIS Avionics Package

• Serial Number: 45-346 • Engines and APU Enrolled on MSP • Next Gen Avionics: ADSB-Out, TCAS 7.1

• Serial Number: HB-31 • Low Hours- 1,892 Since New • Engines and APU on Programs- MSP Gold

• One Owner Since New • No Damage History • ADS-B Out

1992 BEECHCRAFT A36 BONANZA • Phase 1-4 Inspections CW August 2019 • McCauley Black Mac 5 Blade Props

• • • •

Serial Number: E-2690 4,221 Hours Since New ADS-B Compliant New Paint- January 2020

• No Damage History • Seats and Carpet Interior 2011

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Avjet multi March.qxp_Layout 1 18/02/2020 14:53 Page 1

2006 Gulfstream G450 SN 4049

2005 Gulfstream G550 SN 5072

2019 Gulfstream G650ER SN 6371

2014 Challenger 605 SN 5959

2000 Boeing 757 SN 29306

2011 Gulfstream G550 SN 5344

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WASHINGTON D.C. ANDREW C. BRADLEY +1 (410) 626-6162

Buying&Selling MARCH20.qxp_Finance 21/04/2020 10:24 Page 1

BUYING & SELLING AIRCRAFT

Mistakes to Avoid When Buying an Aircraft Getting ahead of the curve is essential when you decide to buy an aircraft — there's a lot still to do! Dave Higdon highlights seven mistakes to avoid. or some corporations, aircraft ownership signifies a measure of business success. For others the aircraft symbolizes the company's commitment to using the best tools to provide the best products and the finest services the company can produce. Irrespective, companies should prepare for taking ownership of a business aircraft by performing all the necessary steps. Too often, first-time buyers find themselves thrust into the role of managing an aircraft with little background preparation. If that process only starts when the papers are signed and ownership formally changes hands, the new owner will already be far behind the curve. With the necessary understanding, though, and the right professionals at your side, the process of acquiring and operating a business aircraft can be greatly simplified. Following is a list of seven

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common mistakes that are easily made, and even more easily avoided during the acquisition process with appropriate planning.

1. Don’t Wait to Arrange Financing for the Purchase

Buyers should not wait until they’ve found their ideal aircraft before arranging financing for the acquisition. Doing so is likely to set you up for a lengthy wait for processing, heightening the chance of missing out on the ideal aircraft. Aircraft financing companies require detailed documentation from buyers in order to conduct credit and risk assessment, and the process of completing a loan can run into weeks or even months, depending on the details underlying the transaction (including aircraft age and equipment) and the buyers’ details. www.AVBUYER.com

Buying&Selling MARCH20.qxp_Finance 21/04/2020 10:30 Page 2

AVBUYER.com 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

the jurisdiction(s) it will fly in and the Internal Revenue Service (IRS) or other tax agency.

3. Don’t Misunderstand the Total Acquisition and Operating Costs

The acquisition and operating cost of a business aircraft can seem deep, wide and complex. You’ll need to consider all of the following points in advance of entering the marketplace: • • • • • • • • •

The smart move would be to start a pre-approval finance process as soon as you decide there is a need for the company to own and operate a business aircraft. Bonus Tip: Aircraft enrolled on hourly maintenance cost programs often get better finance terms, faster. Enrollment helps assure lenders that the airplane is well-tended.

2. Don’t Overlook Your Staffing & Acquisition Team Needs

The flight crew is a must for the new acquisition. It’s wise to hire your crew in advance. Ideally they will be qualified to fly the business aircraft you plan on purchasing, ensuring the aircraft is operational as soon as you have taken ownership. By hiring them in advance you can also use their knowledge and talent to inform and assist in the shopping process. However, the flight crew will form just one component of your transaction team… The whole team should incorporate professionals from the legal, financial, taxation, maintenance and brokerage fields who will help ensure the aircraft's operation complies with the applicable regulations of www.AVBUYER.com

Capital and acquisition costs Maintenance costs Fuel costs Housing costs (hangar or outside tie-down) Crew costs (salary and training) Insurance (hull and liability) Engine overhaul reserve Software update costs Miscellaneous (Airworthiness Directives, Service Bulletins, unanticipated maintenance needs).

The above list should highlight the need to have done the sums (with the help of an expert) long before heading down the acquisition road. Bonus Tip: Many operators enroll their aircraft on hourly maintenance cost programs covering airframe, avionics and engines to help bring predictability to the maintenance costs.

4. Don’t Ignore the Other Options

People and companies in need of regular, reliable air transportation enjoy more alternatives to access business aircraft than ever before, including ad hoc charter, jet cards, shared ownership, fractional ownership, and membership groups. Prospective buyers should have shopped all of the potential solutions before moving ahead with an acquisition. Bonus Tip: Assuming whole aircraft ownership is still the best fit for your mission need, consider chartering different aircraft types that might fit your need to confirm or eliminate models from your shopping list. Doing so will enable you to assess range and payload capabilities as well as comfort levels of a typical trip you anticipate making.

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BUYING & SELLING AIRCRAFT

“...consider chartering different aircraft types that might fit your need to confirm or eliminate models from your shopping list.” 5. Don’t Value Aesthetics Over Function

Arguably, the toughest aspect of selecting a company aircraft involves defining operational needs, and understanding how to separate what you need from what you want. “Lots of operators would love to be able to justify a larger, longer range Gulfstream G650ER,” one veteran business aircraft consultant told AvBuyer. “The reality for some is that a Cirrus SJ50 singleengine jet would provide all the capability they need.” As part of that ‘want versus need’ equation are operational considerations. For example, if the aircraft will often visit non-towered airports with 3,500ft runways, those needing a 6,000ft runway to land would be a foolish choice.

6. Don’t Skip the Pre-Purchase Inspection

Commonly, buyers will look for ways to shave off some of the costs of purchasing and owning an aircraft. To the uninitiated, the pre-purchase inspection may seem ripe for cost-cutting. Those who are most tempted to skip this step are those buying from a familiar party. The complete pre-purchase inspection should open a window on the aircraft's history, back to when it originally left the factory. The inspecting mechanic typically reviews the logbooks for the engine and airframe, maintenance records, ADs and SBs. Records should be complete and comprehensive, covering any damage history, time remaining on lifelimited components, conformity with the manufacturer’s maintenance programs and powerplant inspections. 48 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Neglect in any of these areas will increase the risk to an inattentive buyer.

7. Don’t Cut Costs on Insurance

Insurance is another item that should never be treated as a cost-cutting exercise. Your chosen insurance agent or broker should discuss with you early in the process the arrangements made for the incoming aircraft. Your insurance broker or agent will also be the expert to warn you about operations or service contracts which could void your insurance. And the same person can help you make certain your coverage is adequate for your business (protecting the owners, cabin occupants and their families, and the aircraft investment itself). Liability insurance is a must in most US states. Hull insurance is a must in the eyes of the financing entities (protecting their investment). And hull insurance also protects owners who paid cash, helping ensure an accident doesn't wipe out their investment.

In Summary

There’s plenty else for buyers of business aircraft to be thinking about beyond simply signing the paperwork needed to get an aircraft transaction across the line. Those with the right team to advise and direct them each step of the way will discern where costs can be cut safely, and where additional expenditure would be prudent. Better still, they’ll be less exposed to unnecessary risk throughout the tenure of aircraft ownership. ❙ www.AVBUYER.com

Hatt & Associates May.qxp_Layout 1 20/04/2020 14:11 Page 1

2007 Falcon 2000EX EASy II S/N: N331HA Reg: 117 5,456 hours since new Engines enrolled on ESP Gold, APU enrolled on MSP Gold Next Gen Avionics FANS 1/A, CPDLC, ADSB-Out, TCAS 7.1

Refurb and 2C Inspection E, F, Interior and G Insp. Completed completed March 2019 in September2016 by Standard Aero TeflonMake Coating completed in 2017 Offer

Unique in Experience, Global in Scope. 2016 King Air 350i S/N: FL-1040 Asking Price: Make Offer 992.9 hours since new ADS-B Out Aircell ATG-5000 WiFi Pre-Buy Assurance Program completed April 2019 by Textron - Tampa

2007 Learjet 45XR S/N: 45-346. Reg: N385MH Asking Price: $2,650,000

1-(303) 790-1050 hattaviation.com

9,046.54 hours since new Engines and APU enrolled on MSP Next Gen Avionics ADSB-Out, TCAS 7.1 Delivered with recent A - D Inspections Paint and Interior Refurbished in 2016

2017 Gulfstream G280 S/N: 2107. Reg: N280FR 472.1 Hours since New Engines Enrolled on MSP Planeview280 Cockpit FANS / CPDLC / ADSB Out Aircraft will be delivered with Fresh Gulfstream ARCS Pre-Buy Aircraft will be delivered with Paint Stripes from Steven Aviation

Hatt & Associates: Global Aviation Sales Acquisitions

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Global Closing Room advertorial May.qxp_Finance 23/04/2020 13:41 Page 1

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Global Closing Room makes the transaction execution and closing process transparent while simplifying it. Global Closing Room's web-based technology digitizes the essential logistics that matter to transaction parties and their advisors. Global Closing Room shows the actions that each party must complete as part of the transaction, and it permits transaction parties and their advisors to merely glance at their closing room to see which parties have completed their actions and which have actions pending. This means that transaction parties can drive the transaction themselves. And yet, Global Closing Room preserves confidentiality among the parties. For example, if a buyer were financing its purchase of an aircraft, the seller would be unable to access any of the finance documents. Global Closing Room incorporates digital signatures where the signatures can be held until an instruction to close is given. Advisors can also be admitted to a closing room so they may advise their clients appropriately and completely. For example, some countries require blue-ink signatures to appear on certain kinds of documents. Global Closing Room supports the inclusion of those documents in a transaction by: identifying them as part of the transaction; and permitting them to be uploaded to Global Closing Room once executed. Global Closing Room also reduces the time for parties to receive their closing sets. Promptly following a closing, Global Closing Room issues closing sets electronically. Again, disclosure of information is subject to permissions.

Q: What else does Global Closing Room do to make international transactions easier? A: Global Closing Room can support funds ﬂows in USD, EUR, GBP, and CHF. Non-USD transactions tend to occur in the pre-owned aircraft space where buyers and sellers www.AVBUYER.com

generate cash in currencies other than USD and wish to use that cash for the transaction In those transactions where filings with the FAA must be made, Global Closing Room also solves for time and uncertainty. In the past, transaction parties had to wait for the banks in the United States to open and then hope that the Fed wire would arrive quickly enough to close during the same business day. By closing in Europe, parties can close earlier than they otherwise could. This saves them time and ensures that filings with the FAA occur as soon as possible after it opens at 7:30 am (central). This is particularly important during the quarter-end crush that invariably occurs. With respect to the aircraft themselves, Global Closing Room offers title reports, if the parties wish to diligence an aircraft's chain of title. Global Closing Room is robust. Its technology incorporates best practices to ensure security and business continuity. What's more is that Global Closing Room can facilitate transactions involving a variety of assets, including yachts.

Q: What best summarizes Global Closing Room's beneﬁts? A: Global Closing Room mitigates transaction counterparty performance and execution risk, and it mitigates asset risk. In this era of increased global balkanization, users of Global Closing Room should derive signiﬁcant comfort from the control they now can exert over their own transactions.

More information from https://www.globalclosingroom.com/ AVBUYER MAGAZINE Vol 24 Issue 5 2020

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BUYING & SELLING AIRCRAFT

How GATS can Simplify Aircraft Trading The new Global Aircraft Trading System (GATS) aims to increase trading through efficiency. Jessica Pownell of Cooling & Herbers P.C. highlights how GATS works and offers an outline of the Standard Documents. n April 1, 2020, the Aviation Working Group (AWG) launched the Global Aircraft Trading System (GATS) in response to the ever increasing number of aircraft leases and trusts implemented in the US and in other countries, as well as a general uptick and anticipated future growth in aircraft trading. GATS is a fully electronic, voluntary system intended to simplify the aircraft trading process. The GATS platform will be administered by the AWG (a not-for-profit group of major aviation manufacturers, leasing companies, and financial institutions) and Fexco (an Ireland-based financial services and information technology company). GATS will provide a platform for certain aircraft transactions and a searchable electronic database of certain aircraft ownership and security interest records. That is, each aircraft in GATS will be owned

52 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

by an owner trust created via the online system. Provided the aircraft remains in such trust, a sale of the aircraft can then be completed by a simple electronic transfer of the beneficiary interest in the trust to the new buyer; the other existing transaction documents (such as an applicable aircraft lease) would remain in place as-is. GATS will be open to everyone in the industry, though users must meet a few minimal requirements. • • •

All users will need to create an online user account. ‘Digital certificate users’ will need to pay the applicable fee. One must become a digital certificate user in order to sign documents electronically and to authenticate other actions on the GATS database. www.AVBUYER.com

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Jessica L. Pownell is an attorney with Cooling & Herbers, P.C. She focuses her practice in the areas of acquisition, sale, leasing, and registration and related regulatory matters. Contact Jessica via jpownell@coolinglaw.com

Several trust companies already serving the aviation community are pre-cleared to act as owner trustees for the GATS system, including four trust companies in the US, one in Ireland, and one in Singapore. So, initially, each GATS trust will be formed in the US, Ireland or Singapore, though the GATS platform will be accessible worldwide, and the AWG may expand the list in the future to include additional locations. US and Irish trusts are already used for aircraft in several other countries, and many are hopeful that the fact the Cape Town Convention (another AWG project) requires signatory countries to recognize trusts will cause such countries to also recognize GATS. Pre-cleared trustees may use the GATS Transitional Documents (discussed below) and will be formally cleared on the GATS platform once the trust companies have executed the applicable engagement agreements with GATS. GATS trustees will then be able to clear onto the GATS platform other trust participants, such as leasing companies, who can then migrate existing aircraft trusts onto GATS as well as creating and assigning security interests. www.AVBUYER.com

The GATS Standard Documents

For US trusts, GATS will utilize the following uniform documents (the use of which many hope will create efficiencies in document drafting and negotiation): •

•

Trust Instrument between the beneficiary and the trustee, with the GATS Trust Instrument Master Terms and FAA Related Terms attached; GATS Security Instrument between the beneficiary, the secured party, and the trustee, with the GATS Security Instrument Master Terms attached; and GATS Transfer Instrument between the existing beneficiary, as the person transferring all of its right, title and interest in and to the trust; the new beneficiary, as the person buying or otherwise having transferred to it the beneficial interest; and the trustee.

While much of the current discussion of GATS centers around airlines, the structure of the Trust and Security Instruments – and the effect of the AVBUYER MAGAZINE Vol 24 Issue 5 2020

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BUYING & SELLING AIRCRAFT

Owner Trustee

Trust Instrument

New Beneficiary Transfer Instrument

Secured Party Security Instrument

Beneficiary

“GATS is intended to address inefficiencies that have arisen over the years as aircraft leasing and trust ownership structures have become more common and the demands on the parties involved have increased.” Transfer Instrument (if and when a sale or other transfer of the aircraft occurs) – for a typical business aircraft is shown in the diagram above. Over the past few months, the current draft forms of these three documents have been submitted to FAA Aeronautical Center Counsel (ACC) for review, comment and approval (those drafts are called the ‘Transitional Documents’, and similar documents are available for the Ireland and Singapore trusts). On January 22, 2020, ACC counsel issued a Legal Interpretation stating that the Transitional Documents (which incorporate changes based on earlier comments from ACC counsel) comply with the FAA’s 2013 Policy Clarification regarding owner trusts and, along with the applicable Affidavit of Citizenship, are valid and sufficient for registering an aircraft on the FAA Registry in the name of the trust, regardless of whether or not the beneficiary is a US citizen. These documents work in the same way as current US trust agreements and permit an aircraft to be registered on the FAA Registry in the name of the owner trustee. The owner trustee then holds title to the aircraft for the benefit of the beneficiary. As noted, ACC counsel have confirmed that the Trust Instrument can be used for a US citizen or a non-US citizen beneficiary. However, as with current aircraft trust registrations, in order to register an aircraft on the FAA Registry under a GATS trust, either the beneficiary or the owner trustee (as applicable) will need to submit to the FAA Registry an Affidavit of Citizenship in accordance with 14 C.F.R. Section 47.7. 54 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

The GATS documents also include many of the same terms contained in current US trust agreements, including the requirement that the trustee may be removed only for cause, and only when US citizens hold at least 75% of the aggregate power to remove the trustee. Further, the beneficiary (and the secured party) have no right or power to direct, influence, or control the owner trustee in the owner trustee’s performance of its duties under the Trust Instrument, including matters involving the ownership and operation of the aircraft. The Aviation Working Group intends to request an additional ACC Opinion confirming the ACC’s acceptance of the final GATS documents, once such documents are available (these final GATS documents may, indeed, already be available and submitted to ACC counsel as of the date of this article’s publication).

GATS and Future Growth

GATS is intended to address inefficiencies that have arisen over the years as aircraft leasing and trust ownership structures have become more common and the demands on the parties involved have increased. Many are also hopeful that GATS will support the expected future growth of aircraft trading, as increased aircraft trading allows lessors and other aircraft owners to refresh their inventory as a growth strategy, and generally provides more opportunities for profitability and for new parties to enter into aviation. More information from www.coolinglaw.com ❙ www.AVBUYER.com

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Finance May20.qxp_Finance 21/04/2020 11:22 Page 1

FINANCE

How is COVID-19 Impacting Aircraft Financing Terms? With COVID-19 causing havoc among businesses and individuals worldwide, how are aircraft finance borrowers and lenders reacting, and what can they do to help each other weather the storm? Rohit Jaggi asks a panel of industry expertsâ&#x20AC;¦

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Rohit Jaggi holds airplane and helicopter licenses and frequently conducts flight tests of airplanes and helicopters for print and video. He held a number of news editing and reporting posts with the Financial Times before becoming a freelance writer. Find out more via rohitjaggi@gmail.com

nprecedented is normally an overused word. But the frequent usage it has had in the Coronavirus crisis are, in a completely unprecedented way, utterly justified. In the world of buying and selling business aircraft, activity has almost completely stopped. Aoife O’Sullivan, partner and co-founder of the Air Law Firm, points out “9/11 and the 2008 global financial crash were nothing like this. In this global pandemic everyone is affected. “We can’t get any deals done because we can’t get the engineers over to do the pre-purchase inspections, and we can’t get the crew to fly the aircraft.”

What’s the News for Existing Aircraft Loans?

But while finance for new deals is in a holding pattern, waiting for politicians to judge when they can justify resuming normal economic activity, existing loans are on a different, more troubled planet. • • •

First: A number of borrowers need normally dependable levels of economic activity to service their loans. Second: The value of their aircraft may have fallen enough to trigger a margin call by the lender. Third: The normal last-gasp recourse of repossession is, in these unprecedented times, likely to be difficult (if not impossible), and no real answer anyway.

There is some good news amid the gloom, but it’s worth first examining the negative in some detail.

The Bad News First…

For companies caught by a sudden drop in their turnover and ability to service loans, there may be help from governments. But this is generally in the form of loans rather than grants. And any application for government assistance might not be helped by establishing the need for help making business jet payments. The memory of US car company chiefs jetting off to Washington in three separate corporate aircraft to jointly ask for a state bailout in 2008 casts a long shadow. On the second point, aircraft values are a sticky point. A dropping off in the number of deals makes it www.AVBUYER.com

very difficult to assess how much aircraft will have fallen in value. But they will definitely have fallen, and for some lenders, even a rough assessment could be enough to ask for more security. Leading private aviation lawyer Paul Jebely, managing partner of Pillsbury’s Hong Kong office, explains, “There have been a lot of early conversations and some uplifting of assets-undermanagement requirements to counteract downward valuation trends that result in loan-to-value ratios being triggered.” But then we get into the same area as the preceding point: It’s all very well asking for more security, or asking for a partial repayment, but if the money is not there, neither request is any more than an exercise in frustration. And that leads into the third point. Repossession may still be a theoretical option (and indeed there are a few aircraft being seized by lenders). But getting assessors and crew to do an end-of-loan inspection and fly it away is difficult. And anyway, fly it where? And why? Boneyards are overflowing with resting airliners. And, in a market of falling values where the floor is not yet readily apparent, why would a financier take on any further price-drop risk? There would be precious little chance of a sale quickly, if at all. As Gary Crichlow, director of aviation finance at debt adviser Arc & Co, notes, “None of the lenders I've talked to are interested in flooding the market with a bunch of repos.” A potential complication for borrowers, O’Sullivan points out, is that “a typical loan or lease will not contain a force majeure clause – they are drafted in such a way that they are ‘hell or high water’ contracts, meaning that the payments need to be made no matter what.”

What is the Good News for Borrowers?

The good news peeping out behind all these clouds is that financiers are willing to talk. It may be partly because they have no alternative, but “they are listening to borrowers,” says O’Sullivan. “The majority of lenders and lessors I have come across have been fair and are open to restructuring the loans and leases. And if transactions can be saved it protects the market.” “From a lender's point of view, the aim is very much to work out a solution with the client that either enables the asset to be looked after properly

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until things improve, or disposes of the asset in a calm, orderly way,” Crichlow agrees. “It's all about avoiding anything that would signal a distress sale in the market, and it's absolutely about not allowing the asset to sit and deteriorate. All of the aviation lenders I work with and have spoken with are very much in tune with that.” Kirsten Bartok Touw, founder and managing partner of US-based AirFinance, reveals her company has “been busy providing manufacturers with working capital loans based upon inventory. ExIm Bank has been very innovative and supportive historically ExIm has financed their customers. But right now people aren’t buying. They can’t even get here to buy.”

How are the Lenders Reacting?

Some lenders have changed the terms of deals or pulled out altogether. But others are being helpfully pro-active. Mike Francis, managing director of aircraft finance at First Republic Bank in the US, explains, “I’ve been reaching out to people who’ve bought planes for cash seeing if they want to finance them and release cash.” The lenders are getting help from the authorities, Bartok Touw points out. “Right now the regulators are not penalizing banks for forbearance in their portfolios, which is so important and valuable. “However, how long can a bank stay healthy with a large number of forbearance requests?” she adds.

Cash Buyers Cashing In?

But even amid the gloom there are opportunities. A number of brokers report that cash buyers are stalking distressed sellers. And the ranks of those who desperately want to unload their aircraft are bound to grow as, for all the uncertainty over values, the direction of travel is clear. David Crick, international secretary of the American Society of Appraisers, said: “There’s been a significant decline in the number of transactions, but very little data on prices. It would be madness to t ad re ou Re Mo Ab

think it won’t have an effect on values, but it’s difficult to assess right now. “In some of the long-range, Large Cabin Jets, inventory has shot up by double digits in the past month. We’ve heard of 10-20% discounts just to get people to step up and sign letters of intent.”

…The Impact on Loans?

Jebely says that will soon have an impact on loans. “I personally think there will be a loan-to-value crisis in both the commercial and business aircraft finance markets,” he said. “I cannot think of any commercial or business aircraft that is worth as much today as it was last month. “At a minimum, most – if not all commercial and business aircraft lenders – will be forced to take some action to re-align loan-to-value ratios in the coming months.” So what is the best advice to borrowers in these unprecedented times? Talk to your lender, and talk early. “Pragmatism is ruling the day in terms of lenders working as far as they can with clients in distress,” Crichlow says, “though of course, it takes two to tango, and clients who are finding themselves in financial difficulty would do well to be upfront and transparent.” “Calling in the loan would be a bad idea for everyone concerned if it can be avoided,” O’Sullivan says. “The nature of this is so unprecedented, we just don’t know yet what impact there will be on aircraft valuations. “It’s the wrong time to try and value aircraft – if the deals are being suspended, then valuers are not using real data and are only giving estimates of what they think valuations should be. The knock-on effect is margin calls by the banks and even more pressure on the borrowers and lessees. “Certainly it’s important to be open and honest with the financiers when seeking their support or forbearance. But it’s also important for the financiers to give support through the crisis where they can.” T

BUSINESS AVIATION FINANCE

58 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

at AVBUYER.com www.AVBUYER.com

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Ownership 1.qxp_Finance 21/04/2020 14:16 Page 1

OWNERSHIP

What Does it Cost to Operate a Turboprop?

In the last of his series looking at the costs of owning and operating the various categories of business turbine aircraft, David Wyndham considers the cost of operating a business turbopropâ&#x20AC;Ś here is no single industry definition for the various business aircraft categories. Conklin & de Decker considers the cabin size and range. Business turboprops can be split into at least three categories, including Light Twin, Medium Twin, and Single-Engine. Business turboprops typically seat between five and nine passengers, have a step-down aisle to allow more passenger headroom, and a small storage space with a coffee pot and insulated drawer for refreshments. The Medium Twins and larger Single-Engine Turboprops may include a small lavatory. Cabin height with the stepdown aisle requires adults to stoop while entering and exiting (typically the height offered is 58 inches or lower).

60 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Meanwhile, the range in this class varies, and is often weight-limited in this category â&#x20AC;&#x201C; for example, you can carry full fuel with limited passengers or full passengers with limited fuel and range. In terms of non-stop range with full seats, most turboprops offer between 600 and 1,000 nautical miles of range. Maximum ranges with full fuel can be up to 1,500nm. Most flights operated in this category are approximately an hour long, so even with seats full, the limited range tends to suffice. Aircraft typical of the Twin-Engine categories include the Beechcraft King Air series, Piper Cheyenne and Cessna Conquests. Mitsubishi MU-2s and Rockwell Twin Commanders also remain popular Twin-Engine turboprops today. www.AVBUYER.com

Ownership 1.qxp_Finance 21/04/2020 14:17 Page 2

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

$150k or more on upgrades, paint and moderate interior refurbishment. Major maintenance checks could also be due soon and must be budgeted for when the aircraft is purchased. Engine overhauls vary considerably across this category (partly depending on whether the aircraft has one engine or two). If the engines are close to their first overhaul then another $250k to $400k should be budgeted, per engine, for the overhaul.

What’s the Operating Cost of a Turboprop?

Operating costs for turboprops depend on their size, age and engine(s). Below are some averages from the Conklin & de Decker Report that we have rounded out: Popular Single-Engine models are the pressurized models like the Pilatus PC-12 series, Daher TBM 700/800/900 series and Piper PA46TP series. While Single-Engine, unpressurized models like the Cessna Caravan and Quest Kodiak are most often flown in utility roles, there are also some with executive interiors.

How Much Does it Cost to Buy a Turboprop?

Acquisition costs for new models in this category run from $4m to $8m list price for Twins-Engine Turboprops. New Single-Engine Turboprops have a list price between $2m to $5m. Pre-owned prices for turboprops aged between five and 10-years old can run from $1m to about $3.5m. For turboprops older than 30 years, airworthy models can be bought for under $500k. According to data tracked and complied by AMSTAT, at the end of March 2020, there were almost 15,000 active turboprops worldwide, with about 1,200 listed for sale. Placing a pre-owned aircraft into service is likely to require additional funds. A buyer could spend www.AVBUYER.com

Type Average variable cost per hour: Fuel*: Maintenance: Parts, Labor, Major Maintenance Reserves, Engine Reserves:

Twin $1,194 $584 $300

Single $555 $275 $130

$310

$150

*Fuel cost will depend on fuel price per gallon and fuel burn

What are the Data Costs for a Turboprop?

Data costs will vary based on the type of connection, speed, and amount of data used, and where you fly, but Wi-Fi is becoming a more popular item in this class of aircraft – especially on the newer models. Maintaining internet connectivity ranges from an air-to-ground system (North America) or a basic satellite system. There are different installation and rate plan options designed to fit the needs of both the passengers and pilots. New installations for an airborne internet system can run anywhere from $100k and up. Monthly rates, based on data used and download speeds,

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can cost $1,000 per month for moderate use (depending on the plan and equipment).

(with salaries, benefits and training) will cost over $250k annually.

What are the Fixed Costs of a Turboprop?

Hangar: You should plan on an annual fee of $20,000-$30,000 in rental costs for a hangar within a typical metropolitan area. Higher cost areas, like New York City, Hong Kong or Geneva will be significantly higher.

Fixed costs of a turboprop can be about $350k per year, including the following: • • • • •

Salaries Training Hangar Insurance Refurbishment

Salaries & Training: The pay for pilots ranges from $60,000 to $120,000 per pilot, depending on job duties and level of experience. Additionally, pilots will need training at least annually and that can run from $10,000 to $15,000 per crew member. Two pilots may be used for additional safety measures on single-pilot approved airplanes, or they may be required for charter operations. Many turboprop owners make use of their FBO and local service center for maintenance. If you choose to employ an aircraft maintenance engineer (or maintenance technician) the salary could be up to ~$80,000 per year. The engineer/technician can take care of much of the routine maintenance and handle maintenance planning and control. If the flight department schedule is complex and involves frequent changes and multiple individuals who can authorize use of the aircraft, a flight scheduler is recommended. Their salary can cost as much as $60,000 per year. All-in, two pilots and one maintenance engineer

ad re Re Mo

62 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Insurance: Budget approximately $20,000-$30,000 for insurance, depending on the aircraft’s value and liability limits. If the aircraft spends a lot of time outside of developed countries, those costs may be much higher. Refurbishment: Paint and interior refurbishment should also be considered. A new interior and paint job may last from seven to nine years with excellent care. Depending on the level of completion, materials, and any extra features, you should budget $150k to $300k for this work. Additional costs that can be incurred include acquiring aircraft technical publications for the aircraft and flight crew, and additional maintenance, office and travel expenses.

In Summary:

If you’re considering buying and operating a turboprop for your Business Aviation needs, you should realistically factor an operating budget of approximately $575k for a Single-Engine Turboprop, and $825k for a Twin-Engine model, per year, based on flying an average 400 hours annually, excluding the costs of capital, taxes and depreciation. T

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Why Consider Importing Non-EU Aircraft into Malta? There are benefits for some operators to importing their non-EU aircraft into Malta. What are they, and who can take advantage? Jessica Pownell explains… or many aircraft owners and operators, one of the biggest benefits of private aviation is the ability to travel freely worldwide, without delay or impediment. Yet aircraft operators can sometimes be overwhelmed by complex foreign laws (in particular, foreign tax regimes). Options exist – such as Malta’s option for permanent importation into the European Union (EU) – that can help streamline compliance with tax and other regulations applicable to international aircraft operations.

What are the Benefits of Maltese Importation?

There are several major benefits to Maltese importation, some of which are available in other EU countries (including free circulation in the EU and VAT savings), and some that are somewhat unique to Malta (such as not restricting personal use of the aircraft). 64 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

VAT Savings: Specifically, goods and services in Malta are generally subject to 18% VAT. However, Malta allows certain goods to be imported at a reduced rate. One such item is civil aircraft, which can be permanently imported into Malta at an effective VAT rate as low as 5.4% even if the aircraft is not registered in Malta. This is on the condition that the aircraft and its owner and operator meet certain criteria. Of course, the effective VAT rate for a Maltese civil aircraft importation, while significantly lower than the full VAT rate, is still not zero. For aircraft that qualify for a reduced Malta VAT rate, the applicable VAT rate is determined by a method of calculation that is based on the aircraft’s range. The reduced rates vary from approximately 5.4% to 10.8% and decrease with increasing aircraft range. For instance, an aircraft with a range of less than 3,000km would have a reduced VAT rate of approximately 10.8%, while the lowest VAT rate (5.4%) would be available to an aircraft with a www.AVBUYER.com

Ownership 4.qxp_Finance 21/04/2020 14:20 Page 2

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(or rather, the leasing structure discussed below satisfies the business use requirement). So, Malta’s importation option can work well for private aircraft that are used significantly for personal purposes.

How do Aircraft Qualify for Maltese Importation?

range of 7,000km or more. Unlike some other countries, though, there is generally no import duty due upon importation of civil aircraft into Malta. While other options exist that may allow an aircraft to be imported into the EU at a 0% VAT rate (including placing the aircraft on an Air Operator Certificate (AOC)), these each have their own requirements and practical considerations with which an aircraft owner or operator may be unable to comply. Free Circulation: Moreover, Malta became a member of the EU in 2004; thus, aircraft permanently imported into Malta are also, effectively, permanently imported into the EU for free circulation even if it’s not registered in Malta or any other EU country. Aircraft with the free circulation rights that come with permanent importation are able to travel to, from, and within European Union countries without the restrictions that are placed upon other “temporarily imported” non-EU aircraft. Unrestricted Personal Use: Finally, Malta’s importation option offers a fairly unique benefit in that it does not have a business use requirement www.AVBUYER.com

In order for an aircraft to qualify for importation into Malta at a reduced VAT rate, the aircraft’s ownership and operating structure must meet certain requirements. It is generally advisable to consider these requirements during the initial aircraft acquisition and structuring process. Although it is usually possible to import an aircraft into Malta after the initial acquisition, it may require changes to the aircraft’s existing ownership and operating structure. One structure that allows aircraft registered in the US or other non-EU countries to effectively fulfill Malta’s importation requirements is ownership (beneficial, rather than registered, ownership is enough) in a Maltese company: a lease from the Maltese company to the ultimate non-EU operator; and a bank guarantee equal to 20% of the full import VAT.

First Step: Ownership in a Maltese Company

The first step in pursuing a Maltese importation is to arrange for the aircraft to be “owned” by a Maltese company. Beneficial ownership by a Maltese company through an owner trust arrangement satisfies this requirement. An aircraft can be registered to a US owner trust on the FAA Registry and may still be permanently imported into Malta if the beneficial owner of the owner trust is a Maltese company. There are various Maltese providers who can set up a Maltese company to serve as such an owner. Individuals from the Maltese provider may need to be directors, or in other positions of authority within the newly formed Maltese company, but the governing documents can be drafted so that the ultimate owner retains actual control over the aircraft. The Maltese provider can also assist with ongoing obligations in Malta, such as submitting tax returns.

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“In order for an aircraft to qualify for importation into Malta at a reduced VAT rate, the aircraft’s ownership and operating structure must meet certain requirements.” Second Step: Lease to the Ultimate Non-EU Operator

Second, the Maltese company must lease the aircraft to the ultimate non-EU operator. The lease serves two main purposes: 1) 2)

It transfers possession of the aircraft to the ultimate operator, and The act of leasing itself is a business that fulfills Malta’s “business use” requirement (therefore, the purposes of the flights themselves are not considered).

Malta requires a physical payment of rent (even if the entities are related), and the lease rate should be a fair market value rate. Note: Such a lease could have implications in the aircraft owner’s or operator’s home country. For instance, for US aircraft the lease payments could be subject to use tax in the aircraft owner’s or operator’s home state. So it’s important to review applicable local laws to ensure compliance before implementing a Maltese importation structure.

Third Step: Bank Guarantee

Finally, the ultimate owner must obtain and evidence to Maltese authorities a bank guarantee equal to 20% of the full 18% VAT. The full 18% VAT on a $30m aircraft would be $5.4m; 20% of such full VAT would 66 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

be $1.08m. So, the bank guarantee for such aircraft would need to be for at least $1.08m. The bank guarantee must also be valid for at least four months following the importation; beginning four months after the importation, the Maltese provider can assist with applying for release of the bank guarantee.

Malta May Not Be a Permissible Acquisition Closing Location

In addition to the above basic structure requirements, there are additional processes and procedures that the parties must follow in order to import an aircraft into Malta. The Maltese provider can likely assist with many of these items. However, once the structure is implemented, the aircraft must physically enter Malta in order to complete the importation, and this is the importation step that can sometimes require the most planning. Moreover, because the aircraft must enter Malta after the structure has been implemented, if the parties are pursuing a Maltese importation at the same time as the initial acquisition, it may not be possible to actually close the acquisition itself in Malta. Further, the aircraft could be subject to sales (or similar) taxes in the acquisition closing location despite the Maltese importation and VAT structuring, so one should also review applicable laws in any prospective acquisition closing location. More information from www.coolinglaw.com T www.AVBUYER.com

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AirCompAnalysisMAY20.qxp_ACAn 22/04/2020 10:45 Page 1

JET COMPARISON

EMBRAER PHENOM 300E

CESSNA CITATION CJ3+

Jet Comparison: Cessna Citation CJ3+ vs Embraer Phenom 300E How do the Cessna Citation CJ3+ and Embraer Phenom 300E compare side-by-side? What are the advantages offered by each Light Jet? Mike Chase analyses the performance and productivity of these two popular competitors. ver the following paragraphs we’ll consider key productivity parameters for the Cessna Citation CJ3+ and the Embraer Phenom 300E (including payload, range, speed and cabin size) to establish which aircraft provides the better value in the Light Jet market.

Cessna’s choice of engines. Two Williams FJ44-3A turbofan powerplants are utilized. Of the 149 Wholly-Owned Citation CJ3+ jets in operation at the time of writing, North America housed the largest fleet percentage (87%) followed by Europe (9%). Together, they account for a combined 96% of the world’s CJ3+ fleet.

Cessna Citation CJ3+

Embraer Phenom 300E

The original Citation CJ3 received full FAA type certification in October 2004 and ended production a decade later in 2014 when the CJ3+ was introduced. The CJ3+ continues to be produced today. The Citation CJ3+, like its predecessor, is permitted to operate with a single pilot (US registry only). When Cessna developed the model, the cabin was stretched an additional two feet compared to the smaller CJ2 model, and the wingspan was widened by three feet. The economy of the fuel burn associated with the CJ3+ can be largely attributed to

68 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Embraer’s original Phenom 300 model received FAA Type Certification in December 2009. The Phenom 300 enjoyed several years as the best-selling jet before, in 2017, the Phenom 300E was introduced. The first Embraer Phenom 300Es were delivered to customers in early 2018 and offered a new interior design and improved (Prodigy Touch) avionics, utilizing the Garmin 3000 suite. Meanwhile, like the Phenom 300, the Phenom 300E is powered by a pair of Pratt & Whitney Canada PW535E turbofans. www.AVBUYER.com

AirCompAnalysisMAY20.qxp_ACAn 22/04/2020 10:47 Page 2

www.AVBUYER.com HOW MANY

EXECUTIVE

SEATS

CESSNA

Citation CJ3+

(Manufactured between 2014-Present)

$8.71 Million (2019 Model)

vs.

EMBRAER Phenom 300E

(Manufactured between 2018-Present)

$9.45 Million (2019 Model)

WHICH OF THESE LIGHT JETS WILL COME OUT ON TOP? HOW MUCH

RUNWAY

3,440

Cessna Citation CJ3+

DO I NEED?

Embraer Phenom 300E

(Landing Distance ft)

1000

3,643 1500

HOW FAR

Phenom 300E

1,936

2500

PAYLOAD CAN WE TAKE?

Full Fuel with 4 Pax (nm) 1,825

5,920

Citation CJ3+

(Lbs)

2,135 2,563

Phenom 300E

HOW MANY

OPERATION?

EACH MONTH?

UNITS IN 61 157

NEW/USED SOLD

5 (5.1%)

www.AVBUYER.com

3500

4000

LONG RANGE CRUISING SPEED? Citation CJ3+

(Knots)

352 383

Phenom 300E

WHAT’S THE

COST PER HOUR?

3 (3.3%)

12-Month Average Figure Sources used: Conklin & de Decker, JETNET, B&CA and Chase & Associates.

3000

WHAT’S THE

HOW MUCH

CAN WE GO?

Citation CJ3+

2000

(% = Global Fleet For Sale)

Citation CJ3+ Phenom 300E

$1,447 $1,525

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AirCompAnalysisMAY20.qxp_ACAn 22/04/2020 12:15 Page 3

JET COMPARISON

AVBUYER.com

Table A - Payload & Range Comparison

Of the 68 Wholly -owned Phenom 300Es in operation at the time of writing, North America was home to the largest fleet percentage (73%) followed by Europe (13%) and South America (9%). Together, these regions accounted for a combined 95% of the world’s Phenom 300E fleet.

Citation CJ3+ Phenom 300E

Payload & Range Comparison

13,870 18,387

4,710

5,353

Max Fuel (lb)

MTOW (lb)

2,135

820

2,563

Max Payload (lb)

1,080

1,487

Avail Payload w/Max Fuel (lb)

Source: OEMs, B&CA

Max Payload w/Avail Fuel IFR Range (nm)

1,312 1,334 1,334

Chart A - Cabin Comparison Embraer Phenom 300E

5.08 ft

4.83 ft Source: UPCAST JETBOOK

Chart B - Range Comparison Citation CJ3+ Phenom 300E

1,825 (nm) 1,936 (nm)

When comparing business aircraft, an important area for potential operators to focus on is the payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A (left) shows the Citation CJ3+ ‘Available Payload with Maximum Fuel’ to be 820lbs, which is considerably less than the 1,487lbs offered by the Embraer Phenom 300E.

Cabin Cross-Section Comparison

Meanwhile, Chart A (left) depicts the cabin cross-sections of the Embraer Phenom 300E and Cessna Citation CJ3+. As shown, the Phenom 300E has more cabin height and width compared to the Citation CJ3+. The Phenom 300E also has a greater cabin length than the Citation CJ3+ (17.2ft vs 15.67ft). Overall, the Phenom 300E provides slightly more cabin volume (324cu.ft.) than the CJ3+ (286cu.ft.). In terms of baggage provision, while the Phenom 300E provides virtually the same internal luggage volume as the CJ3+ (66cu.ft. versus 65cu.ft.), the Phenom 300E offers an additional 19cu.ft. external space, and the Citation CJ3+ has none.

4.92 ft

4.75 ft

Cessna Citation CJ3+

1,351

4 Pax w/avail fuel 41 Pax w/avail fuel 1

Range Comparison

As depicted in Chart B (left), using Wichita, Kansas as the start point the Cessna Citation CJ3+ offers slightly less range coverage (1,825nm) than the Embraer Phenom 300E at 1,936nm, each flying with four passengers and available fuel. Note: For business jets, ‘Four Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. NBAA IFR fuel reserve calculation is for a 200nm alternate. This range does not include winds aloft or any other weather-related considerations.

Variable Cost Comparison

Source: Chase & Associates

70 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Cruise with NBAA IFR alternate fuel

Two Williams FJ44-3A engines power the Citation CJ3+, each providing 2,820lbst and burning 133 gallons per hour (gph). By comparison, the Embraer Phenom 300E is powered by a pair of Pratt & Whitney Canada PW535E engines, each offering 3,360lbst and burning 152gph. The ‘Variable Cost’, illustrated in Chart C (overleaf), is defined as the estimated cost of fuel expense, maintenance labor expense,



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2018 Gulfstream G500 s/n 72014

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

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

2011 Gulfstream G550 s/n 5312

2007 Citation CJ2+ s/n 370

Engines on RRCC, APU on MSP Gold, 14 Pax Aft Galley Universal Floorplan w/ Fwd Crew Rest Area

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

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AirCompAnalysisMAY20.qxp_ACAn 22/04/2020 12:18 Page 4

JET COMPARISON

Chart C – Variable Cost Comparison

Citation CJ3+

scheduled parts expense and miscellaneous trip expense (hangar, crew and catering). These costs DO NOT represent a direct source into every flight department and their trip support expenses. For comparative purposes, the costs presented are the relative differences, not the actual differences since these may vary from one flight department to another. The Citation CJ3+ shows a lower variable cost at $1,447/hr compared to the Embraer Phenom 300E ($1,525/hr) – a 5.4% difference.

$1,447 $1,525

Phenom 300E $0

$1,000

$500

$1,500

$2,000

Market Comparison Table

US $ per hour

Table B contains the new prices (per B&CA) for a 2019 model Cessna Citation CJ3+ and Embraer Phenom 300E. The long-range cruise speeds and range numbers are also from B&CA. The cabin volumes, the number of aircraft in operation, the percentage for sale, and average sold are from JETNET. The Citation CJ3+ had 3.3% of its fleet for sale on the used aircraft market at the time of writing, while 5.1% of the Embraer Phenom 300E fleet were for sale. The average number of new and used transactions (units sold) per month over the previous 12 months for the Citation CJ3+ is three, compared to five for the Embraer Phenom 300E.

Table B - Market Comparison Citation CJ3+ Phenom 300E

352

383

286

Long Range Cruise Speed (Kts)

324

Cabin Volume Cu Ft

1,825 1,936

$8.705 $9.450

4 Pax w/Avail Fuel IFR Range (nm)

New 2019 BC&A Price $USm

3.3% 5.1%

157

In Operation

Average Sold per Month*

% For Sale

*Average Full Sale Transactions in the past 12 months, as of Feb. 2020; Source: JETNET Data courtesy of BC&A; JETNET

Chart D - Maximum Scheduled Maintenance Equity Cessna Citation CJ3+ Assumed Annual Utilization: 320 Flight Hours Average Maximum Maintenance Equity: $1,763,602 Pct of Avg Max Mtnc Equity vs. Aircraft Age 100% 90%

Pct of Max Mtnc Equity

80% 70% 60% 50%

Maximum Scheduled Maintenance Equity

Chart D (left) and Chart E (opposite) display the Cessna Citation CJ3+ and Embraer Phenom 300E respectively, and project the Maximum Maintenance Equity each jet has available, based on aircraft age. •

•

The Maximum Maintenance Equity figure is achieved the day an aircraft comes off the production line (since it has not accumulated any utilization toward any maintenance events). The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes: Average annual utilization of 320 flight hours (in the case of the CJ3+) and 300 flight hours (in the case of the Phenom 300E); and All maintenance is completed when due.

Depreciation Schedule

40%

30% 20% 10% 30% 0%

Source: Asset Insight (www.assetinsight.com)

72 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can use accelerated depreciation of assets by taking a greater percentage of the deductions during the

Aircraft Age (Years)

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Asking Prices & Quantity

The two Phenom 300E business jets available on the used aircraft market at the time of writing showed asking prices of $8.8m and $9.95m (the latter price being greater than the B&CA 2019 model price). By comparison, eight Cessna Citation CJ3+ jets were for sale, and three showed asking prices ranging from $6.195m to $7.295m.

ď&#x20AC;š

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Chart E - Maximum Scheduled Maintenance Equity Embraer Phenom 300E Assumed Annual Utilization: 300 Flight Hours Average Maximum Maintenance Equity: $1,508,700 Pct of Avg Max Mtnc Equity vs. Aircraft Age 100% 90% 80%

Pct of Max Mtnc Equity

first few years of the applicable recovery period (see Table C, middle right). In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS), based on a straight-line method meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There is a variety of factors that taxpayers must consider in determining if an aircraft may be and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a twelve-year recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year. The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under this Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased after September 27, 2017 and placed in service before January 1, 2023. This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022 the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. Table D (right) depicts an example of using the MACRS schedule for a 2019-model Citation CJ3+ in private (Part 91) and charter (Part 135) operations over five- and sevenyear periods. Table E (overleaf) depicts an example of using the MACRS schedule for a 2019-model Embraer Phenom 300E in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods.

70% 60% 50% 40%

30% 20% 10% 30% 0%

Aircraft Age (Years)

Source: Asset Insight (www.assetinsight.com)

Table C - Part 91 & 135 MACRS Schedule MACRS Schedule for PART 91 1

20.0%

32.0%

19.20%

11.52%

5.76%

Year Deduction

MACRS Schedule for PART 135 Year Deduction

14.29%

24.49%

17.49%

12.49%

8.93%

8.92%

8.93%

4.46%

Source: NBAA

Table D: Cessna Citation CJ3+ MACRS Depreciation Schedule 2019 Cessna Citation CJ3+ - Private (Part 91) Full Retail Price - Million $8.705 Year

Rate (%)

20.0%

32.0%

19.2%

11.5%

5.8%

Depreciation ($M)

$1.741

$2.786

$1.671

$1.003

$0.501

Cum. Depreciation ($M)

$1.741

$4.527

$6.198

$7.201

$8.204

$8.705

Depreciation Value ($M)

$6.964

$4.178

$2.507

$1.504

$0.501

$0.000

2019 Cessna Citation CJ3+ - Charter (Part 135) Full Retail Price - Million $8.705 Year

Rate (%)

14.3%

24.5%

17.5%

12.5%

8.9%

4.5%

Depreciation ($M)

$1.244

$2.132

$1.523

$1.087

$0.777

$0.776

$0.777

$0.388

Cum. Depreciation ($M)

$1.244

$3.376

$4.898

$5.986

$6.763

$7.539

$8.317

$8.705

Depreciation Value ($M)

$7.461

$5.329

$3.807

$2.719

$1.942

$1.166

$0.388

$0.000

Source: B&CA

AVBUYER MAGAZINE Vol 24 Issue 5 2020

AirCompAnalysisMAY20.qxp_ACAn 22/04/2020 10:54 Page 6

JET COMPARISON

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Table E: Embraer Phenom 300E MACRS Depreciation Schedule

While each serial number is unique, the Airframe Total Time (AFTT) and age/condition of an aircraft will cause variation in the pricing of specific aircraft – 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.

Citation CJ3+ vs Phenom 300E Productivity Comparison

The points in Chart F are centered on the Citation CJ3+ and Embraer Phenom 300E. Pricing used in the vertical axis is as published in B&CA. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. 2. 3.

Four Passenger Range (nm) with available fuel; The long-range cruise speed flown to achieve that range; and The cabin volume available for passengers and amenities.

2019 Embraer Phenom 300E- Private (Part 91) Full Retail Price - Million $9.450 1

Year

20.0%

Rate (%)

32.0%

19.2%

11.5%

5.8%

Depreciation ($M)

$1.890

$3.024

$1.814

$1.089

$0.544

Cum. Depreciation ($M)

$1.890

$4.914

$6.728

$7.817

$8.906

$9.450

Depreciation Value ($M)

$7.560

$4.536

$2.722

$1.633

$0.544

$0.000

2019 Embraer Phenom 300E - Charter (Part 135) Full Retail Price - Million $9.450 Year

Rate (%)

14.3%

24.5%

17.5%

12.5%

8.9%

4.5%

Depreciation ($M)

$1.350

$2.314

$1.653

$1.180

$0.844

$0.843

$0.844

$0.421

Cum. Depreciation ($M)

$1.350

$3.665

$5.318

$6.498

$7.342

$8.185

$9.029

$9.450

Depreciation Value ($M)

$8.100

$5.785

$4.132

$2.952

$2.108

$1.265

$0.421

$0.000

Source: B&CA

Chart F - Productivity Comparison

Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed and cabin size.

In Summary

74 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

$20.0

Price (Millions)

The Embraer Phenom 300E has a higher price than a Citation CJ3+ ($9.45m vs $8.75m), and the Citation CJ3+ exhibits a lower hourly variable operating cost but with a lower long-range cruise speed (352kts vs 383kts) and significantly lower Available Payload with Full Fuel (820lbs vs 1,487lbs). Moreover, the Embraer Phenom 300E offers a larger cabin volume, and longer range with four passengers. Within the preceding paragraphs we have touched upon several of the attributes that business jet operators value. There are other qualities such as airport performance, terminal area performance and time to climb that might factor in a buying decision, however. This month’s comparison highlights where the line might be for an operator needing slightly more capability in a jet (Phenom 300E) or slightly less capability (Citation CJ3+), and approximately what that increase in capability might cost (in terms of variable operating and acquisition costs). Operators should weigh up their mission requirements precisely when picking which option is the best for them. Ultimately, there is plenty for a prospective buyer to consider when choosing the right aircraft for their mission needs. Both of this month’s featured business jets offer great value in the Light Jet market today for the savvy buyer who has their mission needs well defined. T

$16.0 $12.0

Citation CJ3+

Phenom 300E

$8.0 $4.0 $0.0

0.500

0.100

0.200

0.400

0.300

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

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 21/04/2020 14:34 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. Cabin heights in excess of six feet guarantees

76 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

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 Spring 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 7X values reported in the Spring 2020 edition of the Bluebook show $26.0m for a 2013 model, $24.0m for a 2012 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration. Note: We have included 40 aircraft models in the following Large Cabin average price guide.



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Retail Values May2019.qxp_RPG 22/04/2020 11:24 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

32.4

23.0

19.0

17.0

16.0

15.0

2014 US$M

2013 US$M

2012 US$M

2011 US$M 9.0

MODEL BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 650

11.0

BOMBARDIER CHALLENGER 605

—

10.0

13.0

12.0

11.0

10.0

9.5

13.5

13.0 11.0

10.2

9.7

BOMBARDIER CHALLENGER 604 BOMBARDIER CHALLENGER 350

26.7

19.0

16.0

14.5

14.0

BOMBARDIER GLOBAL 7500

75.0

70.0

BOMBARDIER GLOBAL 6500

56.0

55.0

BOMBARDIER GLOBAL 6000

62.3

40.0

35.0

32.0

30.0

28.0

26.0

24.0

22.0

BOMBARDIER GLOBAL 5000

50.4

34.0

30.0

27.0

25.0

23.0

21.0

19.0

18.0

15.0

19.5

18.5

BOMBARDIER CHALLENGER 300

12.0

BOMBARDIER GLOBAL EXP XRS BOMBARDIER GLOBAL EXP DASSAULT FALCON 8X

59.3

52.0

47.0

45.0

43.0

DASSAULT FALCON 7X

53.8

42.0

38.0

36.0

33.0

30.0

28.0

DASSAULT FALCON 2000LXS

35.1

29.0

26.0

24.0

22.0

21.0

20.0

DASSAULT FALCON 2000S

29.950

24.0

22.0

20.0

19.0

18.0

15.0

26.0

24.0

21.0

14.0

DASSAULT FALCON 2000LX

16.5

14.5

19.0

18.5

DASSAULT FALCON 2000DX EASY DASSAULT FALCON 2000EX EASY DASSAULT FALCON 2000EX DASSAULT FALCON 2000 DASSAULT FALCON 900LX

44.8

34.0

32.0

30.0

45.0

41.0

38.0

20.0

19.0

17.0

27.0

24.0

21.0

20.0

DASSAULT FALCON 900DX DASSAULT FALCON 900EX EASY DASSAULT FALCON 900EX DASSAULT FALCON 900C EMBRAER LINEAGE 1000E

34.0

28.0

25.0 23.0

22.0

20.0

15.0

14.0

13.0

12.0

10.0

13.0

11.0

10.0

8.0

—

40.0

EMBRAER LINEAGE 1000 EMBRAER LEGACY 650-135BJ

16.0

EMBRAER LEGACY 600-135BJ EMBRAER LEGACY 135BJ EMBRAER PRAETOR 600

20.0

EMBRAER LEGACY 500

16.0

15.0

14.0

13.0

12.0

EMBRAER LEGACY 450

14.0

13.0

12.0

11.0

10.0

GULFSTREAM G650ER

59.0

51.0

49.0

47.0

45.0

44.0

42.0

GULFSTREAM G600

56.0 32.0

30.0

28.0

26.0

25.0

GULFSTREAM G550

40.0

35.0

GULFSTREAM G500

44.0

40.0

GULFSTREAM G450

20.0

18.0

11.0

17.0

16.0

23.0

22.0

18.5

17.5

15.0

14.0

12.5

10.5

GULFSTREAM G400 GULFSTREAM G350 GULFSTREAM G300 GULFSTREAM GV GULFSTREAM G1V-SP AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM

78 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

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Retail Values May2019.qxp_RPG 22/04/2020 11:23 Page 2

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What your money buys today

Spring 2020 2010 US$M

2009 US$M

8.0

7.0

2008 US$M

2007 US$M

6.0

5.0

2006 US$M

2005 US$M

2004 US$M

2003 US$M

2002 US$M

2001 US$M

4.0

MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 650

9.0

8.5

8.0

7.5

BOMBARDIER CHALLENGER 605

6.2

5.9

5.6

5.3

7.7

7.2

6.7

6.5

5.0

4.7

4.5

BOMBARDIER CHALLENGER 604 BOMBARDIER CHALLENGER 350

9.2

8.7

8.2

6.2

BOMBARDIER CHALLENGER 300 BOMBARDIER GLOBAL 7500 BOMBARDIER GLOBAL 6500 BOMBARDIER GLOBAL 6000

14.0

13.0

12.0

11.0

10.0

9.0

17.5

16.5

15.5

14.5

13.5

12.5 11.5

BOMBARDIER GLOBAL 5000 BOMBARDIER GLOBAL EXP XRS 10.5

9.5

9.0

8.0

BOMBARDIER GLOBAL EXP DASSAULT FALCON 8X

19.0

18.0

17.0

16.0

DASSAULT FALCON 7X DASSAULT FALCON 2000LXS DASSAULT FALCON 2000S

12.5

11.5

10.5

9.0

8.5

11.0

10.0

9.5

DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASy

9.5

9.0

8.5

8.0 7.0

7.0

6.5

6.0

5.5

DASSAULT FALCON 2000EX EASy 6.5 5.0

DASSAULT FALCON 2000EX 4.7

4.3

17.5

DASSAULT FALCON 2000 DASSAULT FALCON 900LX

14.5

13.5

12.5

11.5

10.5

9.5

17.0

16.0

15.0

14.5

13.5

12.5 8.4

DASSAULT FALCON 900DX 11.5 7.4

11.0

DASSAULT FALCON 900EX EASy

8.5

8.0

7.5

DASSAULT FALCON 900EX

6.7

6.5

5.9

DASSAULT FALCON 900C EMBRAER LINEAGE 1000E

18.0

16.0

EMBRAER LINEAGE 1000

9.0 7.5

EMBRAER LEGACY 650-135BJ 7.0

6.5

6.0

EMBRAER LEGACY 600-135BJ 5.5

5.0

4.5

4.2

4.0

EMBRAER LEGACY 135BJ EMBRAER PRAETOR 600 EMBRAER LEGACY 500 EMBRAER LEGACY 450 GULFSTREAM G650ER GULFSTREAM G600

20.0

18.0

17.0

16.0

15.0

14.0

16.5

15.5

14.5

13.5

11.5

9.5

13.0

12.0

11.0

10.0

9.0

8.0

9.5

9.0

8.5

8.0

7.5

13.0

12.0

GULFSTREAM G550

8.5

7.5

GULFSTREAM G500

7.5

7.0

GULFSTREAM G400

5.0

4.5

GULFSTREAM G300

GULFSTREAM G450

7.0

GULFSTREAM G350 10.5

10.0

GULFSTREAM GV

6.0

5.7

GULFSTREAM GIV-SP

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

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AVBUYER MAGAZINE Vol 24 Issue 5 2020

Maintenance1.qxp_Finance 21/04/2020 12:06 Page 1

MAINTENANCE

AVBUYER.com

Three Buyer’s Tips on Aircraft Maintenance History How can aircraft buyers be pragmatic about an aircraft’s maintenance history, while understanding its cycles and keeping a broader market perspective? Jet Tolbert shares some tips… n the world of pre-owned business aircraft transactions, while they may be well-versed in many sophisticated aspects of acquisitions, it is not uncommon for buyers to have limited experience of the intricacies of aircraft operations and maintenance. As a result, buyers can often be easily spooked about an aircraft’s maintenance history that they don’t fully understand. Given the sums of money changing hands in an aircraft transaction and the risk of further, avoidable expense if a major problem goes undetected, this is understandable. Yet there are some tips on aircraft maintenance history that will benefit both the novice buyer and experienced buyer.

Tip 1: Take a Pragmatic Approach First

Is there something obvious about an aircraft’s maintenance history that prevents it from making your shortlist? By weeding through the available aircraft and looking for the deal killers among them, you can help shorten the list of candidate aircraft quickly. At the same time, you will determine if there are recurring maintenance items in an aircraft that are 80 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

non-standard and would require additional downtime in your future operations compared to other aircraft of the same make and model. Some items to look for, and consider carefully, might include: • •

Prolonged exposure to highly corrosive environments with little evidence of preventative maintenance performed; Structural repairs or installations (including avionics and interiors) at facilities outside the auspices of the manufacturer.

Some instances will raise a clear red flag indicating an aircraft should be removed from the list of candidates. Many will require a little bit more attention. Perhaps the aircraft’s history isn’t an outright deal-killer, for example, but can be used to get a better deal. A savvy seller will know which side of the price negotiation line they’re standing on, but an experienced broker will be equally adept at negotiating a fair price should you choose to proceed with an offer, using the maintenance history as leverage on the sale price.



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2004 CITATION CJ3 S/N 10

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2006 CITATION CJ3 S/N 87

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Maintenance1.qxp_Finance 21/04/2020 12:08 Page 2

MAINTENANCE

Tip 2: Understand an Aircraft’s Maintenance Cycle

From a valuation standpoint, as well as determining future downtime and cost, analysis of maintenance spreadsheets and forecasts is required. Most of this analysis can be done by a technical specialist. The specialist will review computerized spreadsheets and probe deeper with any necessary follow-up questions relating to past maintenance tasks. Having the right questions asked by an expert can sometimes unearth evidence of shoddy maintenance work that might have an impact on the cost of future maintenance items. This may even affect the viability of the aircraft for your operation, helping eliminate it from your list of candidates.

Tip 3: Be Sure to Understand the Market

The market may react differently to aircraft with a maintenance history that makes them ‘outliers’, depending on various factors. These could affect your exit strategy when the time comes for you to resell the aircraft. An understanding of how the market has been trading can often affect what factors of history, age and maintenance are important to this exit strategy. For example: • • •

Is there a large turnover of the aircraft make and model that includes high-time airplanes? How about airplanes of the make and model with damage history? Do market dynamics show that only the nicest, lowest time airplanes are trading?

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•

How long are the same aircraft make/model taking to sell, based on their maintenance history?

Generally speaking the lower time aircraft with the best history will have the easiest time finding buyers when you want to resell your acquisition, but perhaps the market factors are such (and a specific make/model is particularly popular) that there are more options to consider.

Bonus Tip: Stay Focussed

In the end, it is easy to get caught in the weeds with all of the options available on today’s preowned aircraft market. There are almost as many ‘what ifs’ that a buyer could ask as there are aircraft for sale. The bonus tip is to stay focused and keep a level head. This is the way to stay on track, regarding understanding an aircraft’s maintenance history, and to prevent an unhappy outcome of ‘the one that got away’. More information from www.americanaircraftsales.com T

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

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MAINTENANCE

What Fleet Percentage is Enrolled on an Engine Maintenance Program? How many of today’s business jets are enrolled on hourly engine maintenance programs? Are these programs more popular with operators of particular aircraft categories and age? Mike Chase finds the answers in his latest JETNET >>KNOW MORE review… ll leading engine manufacturers in Business Aviation offer hourly engine maintenance programs to owners and operators of aircraft powered by their engines. Adding variety to the options available, there are also some third-party providers offering programs.

Maintenance Programs: How do They Work?

The cost to maintain an aircraft varies by make, model and age. Maintenance programs tend to be based on three core parameters: • Flight Hours • Landings (also referred to as ‘Cycles’) and • Time (due to calendar-related inspections). Even if you own a brand-new aircraft, the manufacturer’s warranty doesn’t cover scheduled maintenance or major inspections. 84 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Whether the program is offered by the engine OEM or a third-party provider, it will provide various levels of coverage that an owner or operator can buy. Having chosen their preferred level of coverage, the owner/operator will pay a specified amount of money to the program provider for every hour the aircraft flies. That money will accrue to cover the maintenance costs of those powerplants. Therefore, hourly engine maintenance programs offer clear benefits to owners and operators who prefer predictable maintenance costs. These programs are also popular with aircraft financing and lease companies who see them as a way to ensure certain maintenance standards are upheld. With the advantages they provide, it might be natural to assume that the vast majority of the world’s business jet fleet is enrolled with a program, but that isn’t the case. www.AVBUYER.com

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Engine Maintenance Programs by Manufacturer

As reported to JETNET by the operators, there are 9,157 business jets enrolled with the top seven programs (ranked by number of enrollments). With an additional 387 enrolled with ‘other’ program providers, the total number of business jets enrolled with a program is 9,544 (see Table A, above). This number accounts for 42% of the total worldwide business jets in operation (22,482). Interestingly, of the ‘Top Seven’, Jet Support Services (JSSI) and Textron Aviation are the only providers that are not a manufacturer of a business jet engine. NOTE: While the data represented in Table A is gathered from the operators, it may not represent all of the reporting. In some cases, operators www.AVBUYER.com

report to JETNET that their aircraft is enrolled on an hourly engine maintenance program, but the operator declines to share which program they’re enrolled with.

Engine Maintenance Programs – by Aircraft Category

Given the benefit of making engine maintenance costs more predictable, it’s natural to assume an hourly maintenance cost program would be more attractive to operators of large jets which have higher costs associated with their powerplants. A review of JETNET data across all categories shows this is not the case, however. As illustrated in Table B (above), all jet categories have a healthy proportion of business jets enrolled on engine maintenance programs. Notably, the Mid-Size category (highlighted) has the largest number of enrollments, with 2,018

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(62%) of the 3,279 fleet on an engine maintenance program. Super Mid-size Jets follow (49%), and then Large Jets (46%). Interestingly, Very Light Jets have a higher proportion of the fleet enrolled on programs than Light Jets. Ultimately, JETNET’s data implies little correlation between aircraft size and the number of enrollments on programs.

Hourly Engine Maintenance Program Enrollment: By Aircraft Age Group

The number of business jets, by aircraft age group, that are enrolled on an Engine Maintenance Program is displayed in Table C (above). Out of the total of 9,544 business jets enrolled on programs, those aged between 11 and 15 years are the age range most commonly enrolled. Notably, 66% of the business jets enrolled on an engine maintenance program are younger than 20 years old. While relatively few (6%) are enrolled in the 0-5-year-old range, this is likely to be due to the fact newer aircraft are still under warranty.

In Conclusion

From the above summary, we can conclude that the most commonly-enrolled business jets on engine maintenance cost programs tend to be Mid-Size jets, and aircraft that are less than 20 years old (with the highest concentration among those aged between 11 and 15 years old).

t ad re ou Re Mo Ab

However, a closer scrutiny of the numbers might reveal some models adhering to the general trend more closely than others. Are engine maintenance programs really as worthwhile as they are said to be? We recommend you contact a program provider to discuss the range of coverage options they provide and the costs. You will certainly gain peace of mind over maintenance costs – but you should also seek expert help to discuss whether the costs make sense to your particular operation. In fact, the value of your aircraft may also be impacted negatively or positively depending on whether it is enrolled on a program. Again, an industry professional should help you discuss this, and choose the best option for your aircraft, if necessary. More information from www.jetnet.com T

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

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

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Is it Safe to Fly in This COVID-19 Pandemic? Andre Fodor shares a valuable lesson he can apply when deciding whether to fly or not during the COVID-19 pandemic – and at all other times too! o matter what station your television, radio or streaming application is tuned to, the subject will be COVID-19, and how it’s ravaging global health, the economy, and ultimately everybody’s life. Viruses are nothing new, of course. H1N1, H2N2, SARS and MERS are all virus acronyms that we’ve lived through. Pandemics of times past have had similar global spread patterns. Nevertheless, this is scary stuff and we are all impacted by its borderless rage. As I wrote these words, with my family quarantined at home I cruised aloft at FL430, transporting the principal’s family to their home state. Our TCAS showed very few other aircraft en route, and our routing was peppered with shortcuts. Landing at an eerily empty airport, our ADS-B receiver showed most identification tags were those of other corporate aircraft. On returning home to the hangar, the aircraft would undergo a thorough decontamination using a bio-blocking process.

Decision-Making in Times of Crisis

While it would be easy to fill an entire column with advice on preventative measures that better protect passengers, crew and aircraft from contamination, at this time it’s the advice of a great friend and mentor that taught me the most valuable lesson, preparing me for the challenges of today’s pandemic. Specifically, it addresses how flight crews can make good, practical, safety-conscious decisions as they inevitably face calls from executives to make trips during these trying times. The advice of my mentor was so useful that I

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wrote it down on an index card a decade ago and kept it in my flight bag for whenever I needed a reminder. Recently, I took that card out, and more than ever I’m applying its pointers now. The contents of that index card is simple. It reads: 1.

Is it SAFE?

Does it MAKE SENSE?

Is it LEGAL?

These are the foundations of my decision making, not only during the current pandemic but at all times.

Removing the Gray Areas

When flying under charter or air carrier rules, pilots are bound by regulations which have been approved and accepted during non-critical times. The OpSpecs are regulated, and the standard operating procedures define the modus-operandi of the company. Ultimately, they spell out what is expected of the crew and give them a solid footing in making flying decisions. Private (Part 91) aviation is not so clear. The majority of operations are small and their structures often allow direct interaction between the principal/executives and pilots, who at times can feel pressured to comply with the principal’s wishes. Such times as these are the “gray areas” my index card provides useful help in addressing. Let’s look at an example… Years ago after a major hurricane struck, I was scheduled to fly to a Caribbean location to take some passengers to their yacht. Most of the

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infrastructure of the country had been impacted, including hotels and restaurants. Nevertheless, the passengers insisted on flying because their yacht was “self-sufficient”. The concerns I shared with my crew were of poor operational support at the destination, fragile airport conditions, and a lack of available services. Applying the index card rules, I asked the three questions: Is it LEGAL? There were no NOTAMs preventing operations there, and no airspace restrictions were in place. The airport was operational, albeit without fuel (but we wouldn’t need any on the long-range jet, anyway). And we could take our mechanic to provide support. Is it SAFE? The airport authorities assured us that there was no civil unrest, and that the airport’s perimeter was secured and air traffic control was operational. We would be able to drop the passengers and reposition the jet during daylight. Does it MAKE SENSE? Here was the gray area. What makes sense to me may not make sense to someone else. Priorities are different, as are perceptions. Personally, thinking of a yacht trip while an entire nation was recovering from a hurricane made no sense to me and my crew. But then, reconciling, I

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was employed to transport passengers - that is why they spent money to fly privately.

The Bottom Line…

The process of reconciliation can be tough. If the ‘SAFE’ and ‘LEGAL’ aspects were not met, there would be no gray areas to address, and it would be easier to assert professional opinion. But the question of whether a flight makes sense is a matter of perspective. This, ultimately, may be settled as long as there is mutual respect, trust and an open channel of communication between crew and passengers. Having your principal listen to your judgement requires their understanding that you are always thinking first of how to best serve them. That will require you to keep an open mind and accept that your opinion may not be accepted or fully heard. Plant seeds – it may take time for your message to sink in. Having a practical system to assist you in working through tough decisions is essential for flying in complex times like these. And if you don’t like the index card idea, here is another memory jogger − an attempt at poetic Haiku – we’ll leave you with: Good decisions are Safe, legal and not senseless. Provide good guidelines. ❙

ANDRE FODOR ARTICLES

at AVBUYER.com

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

Is Your Data & Software Management Good Enough? Why should your flight department ensure it is collecting and optimizing all available data? How can this help streamline your flight operations? Mario Pierobon asks industry experts Scott Richter and Paolo Sommariva… or a flight department to function effectively, reliably and safely, the use of software and data management solutions is crucial. Leveraging data to derive multiple operational and financial benefits is becoming increasingly important for Business Aviation – particularly in the current COVID-19 environment. Here’s why…

Data Collection & Optimization According to Scott Richter, associate director, Business Aviation strategic business analysis, Collins Aerospace, predictive maintenance tools, Flight Operations Quality Assurance (FOQA) programs, fuel optimization and safety management are some of the most common 92 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

solutions available for the industry today. “The domains that need data to accomplish these objectives and support these solutions include aircraft maintenance, crew support, trip management, air traffic management, aircraft services related to passenger amenities and business intelligence,” he clarifies. When pursuing software and data management initiatives there should be three goals: • Digitisation • Automation and • Optimization. These entail specific activities, according to Paolo Sommariva, CEO & co-founder of FL3XX.

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Digitization: This means bringing together all those Excel sheets that are sitting around the office. “It’s about taking all that information and putting it in a database where it can be connected to multiple other applications. That transforms information into data”, Sommariva says. Automation: In the current working environment, automation is about reducing the inbox. “An automated system (such as FL3XX) exchanges data with other systems natively. Or when that is not possible, it will send an email to a handler for a handling request, for example,” Sommariva continues. “Users don’t have to write manually any more. They just need to click on a button and automatically the system will create the message, include other necessary details, attach documents, etc., and send it. “Automation implies the system knows what the data is and where it is needed and then processes it,” Sommariva explains. Optimization: “Once this ease of use is achieved, multiple Key Performance Indicators (KPIs) emerge from the system, which can then optimize for those KPIs. So, if you have to allocate a pilot to a leg, ideally the system will shows which is the best pilot for that leg, based on multiple factors such as the qualifications and economic considerations,” Sommariva illustrates. 94 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

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“For example, if there are three pilots that are equally well qualified, the system may propose to allocate the least expensive one.”

What are the Sources of Data?

Business Aviation data can be collected from multiple sources, the first being the aircraft itself. “The number of sensors on aircraft has increased significantly, generating greater information on the aircraft and its performance,” notes Richter. “This data is generally collected by the OEMs and equipment and avionics manufacturers. Service providers (whether flight planning, scheduling, IFE/IFC and/or air traffic management services) also collect vast amounts of data. Virtually any organization that provides equipment and services for Business Aviation collects data about its operation.” All of this information is spread across multiple databases, and there are literally thousands of different databases managed by the different players. “The quality of this data is not uniform,” Sommariva highlights. “Some databases are amazingly precise while others are not at all. There are several regulatory issues on whether and which type of data needs to be certified. So, the overall effort to capture this data and utilize it is significant. “Getting the data and then converting it to a format that is universally usable is a very important part of what we do,” he continues. “One of the

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requirements is to keep it up to date. We want 100% reliability, as, failing that, software may become unreliable. The user needs to know that the system consistently provides relevant and reliable information. The value of software depends very much on the quality of the underlying data.”

check as the flight happens that everything is going as planned on their mobile app. All this allows the entire team across the value chain to interact directly on one platform. No data is lost in the process” (as happens when managing documents by hand, via email, or over the phone).

Software & Data Management: How it’s Improving Your Operation

Ultimately software enables a more connected Business Aviation operation. “It enables the collection of massive amounts of data and collaboration within the Business Aviation ecosystem that creates actionable insights and drives better decision making, whether they be about aircraft maintenance, crew members, passengers, owners and/or operators,” Richter summarizes. As information technology develops, the ability to collect and quickly analyse data is becoming the newest and most exciting area of data management in business aviation, according to Richter. “Artificial intelligence (AI) technology allows large amounts of aircraft performance data to be analysed in a very short time, creating a lot of efficiencies within an operation. “Technology is quickly evolving though; what’s exciting today won’t be exciting tomorrow. In the future, we believe data exchanges will allow the industry to collaborate even more and gain even greater insights and efficiencies.” Crucially, efficient data management and software implementation does not depend on an operator’s size. It can be scaled to any operator. “There are quite a few companies out there that are providing very sophisticated data management solutions to any size operator,” concludes Richter. “As data management becomes more the mainstay, even the most sophisticated solutions will become affordable to small operators.” ❙

Software and data management are improving Business Aviation operations in many ways, allowing users to avoid cumbersome processes and access timely, accurate information. “This includes weather information so pilots can make better flight plan decisions, saving time and money,” notes Richter. “Software also allows faster data collection and analysis of aircraft equipment logs for predictive maintenance insights.” Software should also take care of all repetitive tasks, leaving more time for other things. “By improving the interface between flight planning and sales in our software, for example, when a salesperson sells a charter flight we have on average a discrepancy of less than one minute between the quoted flight time and the actual flight,” Sommariva highlights. “That has become very precise and it’s important because it impacts the price.” Software allows Business Aviation operations to streamline. Less mistakes are made as the information flows more smoothly and directly to the end users. “If you are ordering catering, for example, you can have an exact confirmation of the ordered catering,” Sommariva adds. “The pilots will see in real time every piece of information about the passengers and the flight, and all the services reserved/required. “They are able to know what to expect and 96 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Connected Business

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303 946-9105 Bloom Business Jets Inc. 2020

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AVIONICS

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What’s the Latest on Performance Based Navigation (PBN)? Discover the current and future direction of the use of PBN in Business Aviation. Ken Elliott continues his series on aircraft communication, navigation and

surveillance with a comprehensive overview of Performance Based Navigation… n the understanding that if you enable it, industry will find a way to fly it, regulatory authorities have provided navigation choices that rely on the approved performance of the aircraft and crew to fly them, largely independent of infrastructure. These Performance Based Navigation (PBN) procedures have many advantages, from elective cockpit centric operations to a reduction of ground infrastructure funding needs. PBN is, however, dependent upon the various Global Positioning Systems (GPS) as space-based radio-navigation position sources. The US-managed constellation of 32 satellites, orbiting the Earth at an altitude of approximately 11,000 miles, also includes a network of ground stations used for monitoring and control. So security is always a concern. Today, when corporate aircraft fly cross-country, over the ocean or into small airports they have more choices. This provides for redundancy, flight confidence and safer flights. For example, with dual navigation systems on board, crews can set up a WAAS LPV (see Table A) on the pilot’s primary flight display and an ILS on the co-pilot’s side when approaching an increasing number of regional airports.

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As with Communications and Surveillance (the other two crucial components of CNS), where there are several required sub-elements, there are at least six for PBN, including: • Satellite or ground-based signal • Published charts • Equipped and properly certified aircraft • Crew training • Operational approval of the flight department, crew and specific aircraft • A continued airworthiness program for the aircraft and equipment. Along with grasping the need to consider all of these elements, operators need to view PBN as an operations umbrella, covering all phases of flight.

What are the Key PBN Terms?

In simple terms, aircraft typically dispatch to join a defined flight track. They maintain it with ATC approved 3D changes. And, eventually, they join a controlled descent, approach and landing. At all times the aircraft is spaced from others, and yet provides the optimized route to minimize time, fuel use

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and, by extension, cost. To achieve this merry dance through varying air densities, the aviation community has devised many means to accomplish it. Each means is named and then abbreviated, forming familiar terms to most pilots. Table A (left) aims to summarize only the most common of these terms so the rest of this update may make sense to those without their feet on the rudder pedals.

PBN Procedures

There are two main groups of PBN Area Nav procedures, and Table B (middle, left) shows how they are applied. PBN RNAV 1 requires a total system error of not more than 1nm for 95% of the total flight time and PBN RNAV 2 requires a total system error of not more than 2nm for 95% of the total flight time. En route navigation is flown under RNAV 2 requirements. To comprehend the complexities involved in airspace PBN, one needs only to look at a Table C (bottom, left), showing various means of low visibility approaches (noting that with the added use of Enhanced Flight Vision Systems (EFVS), decision heights and runway visual range requirements may be reduced). Regarding the current population of WAAS procedures in the US – important for Business Aviation operators – the FAA continuously provides a reliable update. Tables D and E (overleaf) outline this population. Table D covers procedures and Table E covers airports.

ICAO PBN

Internationally, ICAO considers terrestrial, remote and oceanic flight tracks and routes. Not only was there the need to supplement and replace VOR-ILS and DME derived procedures, but also those that were using Inertial Navigation Systems (INS) as the primary aircraft equipage element for early PBN. ICAO’s Doc 9613 RNAV and PBN guidance provides a thorough explanation of ICAO’s navigation plan. Airworthiness authorities across the globe base their plans on the ICAO model, with local variation. Taking just the North Atlantic Organized Track System (NAT-OTS), covering one of several oceanic regions, there is a unique complexity of CNS operations. Table F (overleaf) demonstrates this complexity, showing how the CNS concept is totally

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interdependent, and highlights to aircraft manufacturers and corporate operators the need to equip and operate holistically. As demonstrated in Table F, the closer the separation limits, the greater the dependence on PBN-RNP based operations. Also note that newer equipage requirements involve packages of interconnected avionics. As an example, to satisfy the requirement for RNP4 PBCS tracks, the following is needed: • Controller Pilot Data Link Control (CPDLC) - FANS 1/A+ • Satcom communications with datalink capability • Cockpit Voice Recorder - capable of datalink recording • Dual SBAS Flight Management Systems (FMS) with RNP4 capability • Automatic Dependent Surveillance Contract (ADS-C) • Total ‘ATC-Aircraft’ data loop times to meet PBCS (for communication & surveillance) • Reduced Vertical Separation Minimums (RVSM) • Traffic Collision Avoidance System (TCAS) at Version 7.1 status • Oceanic Service Provider. As for other Oceanic Regions, the Pacific Organized Track System (PACOTS) and Australia Organized Track System (AUSOTS)-Flex Tracks, are following similar ICAO guidelines. Operators should remember that either an LOA or an OpsSpec is required to fly certain Oceanic tracks.

Europe PBN

Within and external to the US, there is the independent satellite coverage of other regions to function as primary or secondary GPS signal sourcing. GNSS • • • •

US – GPS Russia – GLONASS Europe – Galileo China – Beidou

GPS-SBAS • US – WAAS • Europe – EGNOSS • Japan – MSAS • India – GAGAN • Russia – SDCM For Europe, there are several options of GPS signals to blend into a single

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AVIONICS

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position source. Traditionally, Eurocontrol has used terms such as B-RNAV (now RNAV-5) and P-RNAV (now RNAV-1). Table H (below, left) outlines the different PBN Approaches implemented, and clearly indicates how traditional position sourcing is being replaced by GNSS/GPS for all phases of flight. A useful series of seven PBN Handbooks are available to operators and PBN developers in Europe, with books 1, 3 and 7 targeted at aircraft operations. These are available through Eurocontrol and require a user account. Access information through Skybrary-PBN.

Advanced PBN

Advancing PBN forward requires less reliance on traditional VOR, ILS and onboard INS. It means increased use of Distance Measuring Equipment, providing security against GPS vulnerability. It includes improved lateral, altitude and intrail separation. New procedures will introduce the concept of time via Dynamic RNP, optimizing the use of available airspace and runway slots. Approaches are already progressing from ‘dive and drive’ to CDAs, with a seamless transition from the top of descent. GPS signal sources themselves, will contain elements of redundancy, including dual frequency GPS constellations. More flights will include a transition into Equivalent Visual Operations (or Enhanced Low Vision Operations), ensuring the reliable completion of intended flights. EVO/ELVO includes EFVS and GBAS close in landing guidance.

In Summary

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

t ad re ou Re Mo Ab

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AVIONICS

As a summary, and looking far into the future, PBN will be a totally integrated part of the CNS evolution, an outcome of which will see replacement of CNS, as a term, with one that best describes a composite steering command. That command will be derived from off-board the aircraft, via an advanced aviation internet; a single, constantly shifting set of instructions to steer, in 4D, automated unmanned airborne vehicles. CNS becomes a word-set to navigate the airborne platform in concert with its surrounding situational airspace bubble. ❙

on AVBUYER.com www.AVBUYER.com

Wright Brothers May.qxp_Empyrean 22/04/2020 09:54 Page 1

Important Changes to the FAA’s Public Documents Room Procedures The FAA Civil Aviation Registry has issued several important new procedures affecting the Public Documents Room (PDR) in light of the continued spread and impact of COVID-19, or Coronavirus – possibly affecting the timeliness of aircraft transactions. The change in processes comes in an attempt to minimize exposure to employees, permit-holders who regularly access the PDR, their families and the public at large. There are now temporary, but significant, measures in place to help this endeavor and maintain efficiency at the Registry. The FAA intends to keep the PDR open and “provide essential services while maintaining social distancing and restricting physical public access.” While the PDR remains open for their usual hours, 7:30 to 4:00 CDT, the “filing” window has been closed, which removes the ability to immediately file documents. For now, document submissions will be collected from drop boxes located directly outside the PDR. However, all incoming physical documents, including priorities, will be quarantined for 72 hours. During this time, the Registry will not provide “minute-by-minute” filing stamps. Digital submissions are allowed if all closing documents are digitally signed and less than 20 pages. This restriction has been lifted for priority cases – multiple submissions can me made if the file is too large to be accepted at once. Documents can still be mailed via the usual means, but there is now an email option as well. Again, certain requirements must be met: all documents digitally signed, attachments 20 pages or less per document, one aircraft per email, and priority indicator. The FAA has indicated there should be no change in processing timelines of priorities submitted this way.

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Another notable change is that the FAA cannot guarantee “in by 11 out by COB” expedited processing of documents for imports. There are also changes to payment services, which should now be completed online. These changes have been evolving with the situation and could continue to do so. It may be a while before we fully see the effect they have on document filing and transactions, but there will certainly be some delay while we become accustomed to the new procedures. The FAA continues to try to mitigate transmission of COVID-19 while providing essential services and minimizing negative impacts. While disruptions inevitably continue for industries worldwide, we are encouraged by the actions our leaders and communities are taking to protect our health and help businesses continue to run. This is a summary of details regarding the FAA’s PDR changes thus far. For more information and assistance please contact us at info@WBAircraft.com

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OEM Bites

Bell has begun promoting a VIP version of the V-22 tiltrotor it produces in partnership with Boeing, designed for head-of-state transport missions. To date, Bell has sold the Osprey solely for military applications (chiefly to the US). But Bell believes the “versatile” nature of the platform could open additional sales opportunities. www.bellflight.com

Certification Hat-trick for Phenom 300E The new and enhanced Embraer Phenom 300E has been granted its Type Certificate by ANAC (National Civil Aviation Agency of Brazil), EASA (European Aviation Safety Agency) and the FAA (Federal Aviation Administration). chieving its certification goals, the Phenom 300E will now offer an intracontinental range of 2,010nm (NBAA IFR reserves with 5 passengers), a high-speed cruise of 464kts, a maximum payload of 2,636lbs, a take-off distance of 3,209ft and an unfactored landing distance of 2,212ft. Moreover, the enhanced Phenom 300E has received both avionics upgrades and improvements that lower cabin noise levels. The aircraft will be available for delivery starting in Q2.

Embraer Combats COVID-19 in Brazil Meanwhile, Embraer is working in partnership with companies and research centers on technologies that can

increase the availability of equipment and solutions to combat COVID-19 in Brazil. The actions, developed jointly with Embraer's supply chain, include the manufacturing of parts for the ventilator and respirator industry; the replacement of imported components for ventilators; the development of high-efficiency filtration systems for transforming regular hospital beds into intensive care beds; and studies for the development of simple, robust and portable respirators aimed at rapid implementation and availability. More information from https://executive.embraer.com

Understanding the Business Aviation Market - with 106 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

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Dornier Seawing’s prototype SN1003, a New Generation of the Seastar amphibious aircraft, successfully performed its first flight at the end of March at Oberpfaffenhofen airport, Germany. The flight was performed by a Dornier Seawings test pilot crew and lasted 31 minutes. www.dornierseawings.com

Textron Aviation has successfully completed initial ground engine tests on the prototype Cessna SkyCourier twin utility turboprop featuring Pratt & Whitney Canada PT6A-65SC engines. These ground engine tests verified the functionality of the fuel system and engines, as well as the interface with the avionics and electrical systems. www.txtav.com

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Joe Clark

Eric Martel

Diana Chou, founder and chairperson of Dragon General Aviation Group, is one of 22 women founders selected for the EY Entrepreneurial Winning Women Asia Pacific Class of 2020. Joe Clark, blended winglet pioneer, founder and CEO of Aviation Partners, Inc. (API), and chairman of the joint venture Aviation Partners Boeing, died on March 30. He was 78. The aviation industry was saddened at the passing of this iconic figure credited with saving more than 10 billion gallons of aviation fuel.

Andreas Meyer

Tyler Spurling has been named assistant manager of Duncan Aviation’s MRO Rapid Response Team, at all three of Duncan’s main MRO facilities. Paul Sykes is the new director, global finance – Europe, Textron Financial Corporation (TFC), offering funding on new and pre-owned Textron aircraft (Cessna, Bell Helicopter, Beechcraft).

David Velupillai, marketing communications director at Airbus Corporate Jets announced (in his own words), “It’s time for me to take a ‘new road not travelled’ into retirement”. This thoroughly pleasant and knowledgeable gentleman will be Eric Martel succeeded Alain Bellemare as president and CEO at Bombardier, effective April 6. greatly missed by his many media friends, none more so than at AvBuyer. Andreas Meyer has joined The International Dustin Walker was promoted by JetAviva Business Aviation Council (IBAC) as the new to the position of sales director. He will oversee director, ICAO Liaison, for IBAC in Montreal. Cessna Citation CJ1-series jet sales. Dan Burnstein is named chairman, Omni Aircraft Tyler Webster has been appointed by Traxxall Sales/Omni Air Transport. Mike Skow becomes as a regional sales director, based in Santa Barbara, CEO and Chris Deslongchamp is the new California. president.

David Wyndham, a well-known and respected aviation veteran, has joined business aircraft brokerage firm Par Avion Ltd, as executive sales director and acquisition specialist. Prior to joining Par Avion, Wyndham served as president and coBob Osvold, an aviation industry veteran of 25 years, has joined CFS Jets as vice president, aircraft owner of Conklin & de Decker. He was instrumental in growing the business to more than 2,000 clients sales. in approximately 40 countries. At Conklin & de Decker Wyndham helped develop an extensive Jordan Scales was promoted by JetAviva range of aviation consulting services for individuals, to the position of sales director, and is tasked with corporations and government agencies. T steering legacy Citation sales for the company. Max Oberbroeckling was promoted by JetAviva to the position of sales director, responsible for Beechcraft King Air sales.

Bob Osvold

Tyler Spurling

David Wyndham

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Products & Services May.qxp_Layout 1 23/04/2020 13:26 Page 1

PRODUCTS & SERVICES Aero-Dienst Ensures Customer & Employee Safety

During Corona-Crisis Aero-Dienst supports its maintenance customers by giving them access to its Nuremberg (EDDN) based executive charter fleet for safe and direct crew transportation between Service Center in EDDN and customer home base. Based on decades of experience in air ambulance transportation AeroDienst has implemented extensive measures to safeguard the health of our customers and employees. Aircraft will be flown exclusively by Aero-Dienst own pilots. Aircraft cabin will be disinfected before each crew transport. Now more than ever: The business aviation infrastructure remains available and operational to enable people we all rely on to manage the crisis www.aero-dienst.de

Atlas Air Service Maintains Latitude

Atlas Air Service now extends its aircraft scope of approval by providing certified maintenance services for the Cessna Citation Latitude. The Latitude, a Textron Aviation airplane, entered the market in 2015 and is named the industry's most popular midsize jet with 58 aircraft delivered in 2019. The aircraft maintenance comprises all overhaul, repair and modification services. This work is only to be carried out after approval by the European Aviation Safety Agency (EASA). In order to obtain this approval according to the so-called EASA Part 145, Atlas Air Service has successfully demonstrated its capability to the German Federal Aviation Authority (LBA) and received the approval last month www.atlasair.com

Avfuel Offers Free Training

As FBOs and fuel handlers face a myriad of challenges during the COVID-19 pandemic, Avfuel Corporation’s taking steps to ensure it serves as a useful resource to ease operational difficulties during this time, including offering free training. With a mission to help make fueling operations safer by making training more accessible, Avfuel is waiving the initial 110 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

subscription fee of its FAA-approved Part 139 Line Fuel Safety and Supervisory Courses via the online Avfuel Training System through June 30, 2020. The special offer grants Avfuel customers free access to all of the ATS’ content for a year upon a new initial signup, helping them to fulfill their new and recurrent training needs www.avfuel.com

Dassault Places Two Falcons for Operation Resilience

To deal with the health crisis linked to COVID-19, Dassault Aviation has made two Falcon business jets available to the French Defense Ministry as part of the Operation Resilience intended to supply logistics and medical support for civilian corona virus control activities. The first mission, involving the two aircraft, took place on Sunday, April 5. It brought a team of 26 doctors and other medical personnel from Brest, Brittany back to Paris. The team had accompanied COVID-19 patients to Brest on a special medical train. The two Dassault aircraft, a Falcon 8X and a Falcon 900, are equipped for 15 and 13 passengers, respectively. They are operated by Dassault Falcon Service (DFS), a subsidiary of Dassault Aviation specializing in maintenance and flight operations, based at Le Bourget airport www.dassaultfalcon.com

Duncan Develops New Aircraft Disinfection

Duncan Aviation has implemented an aircraft disinfection service that it is providing for operators who have scheduled into the company’s main MRO facilities in Battle Creek, Michigan; Lincoln, Nebraska; and Provo, Utah. All aircraft are disinfected upon arrival and before Duncan Aviation’s technicians begin work on them. They are disinfected again right before delivery back to the operator and departure from the Duncan Aviation location. “We care deeply about our customers, team members and the communities in which we conduct business,” says Jared Stauffer, Manager of Interior Services at the company’s Lincoln location. “Customers began asking about possible disinfection services so we started researching disinfectant distribution systems, disinfectant product, and proper procedures. We tested the unit and the disinfectant and are pleased to be able to offer the service to the market now.” www.duncanaviation.aero www.AVBUYER.com

Conklin & de Decker January.qxp_Layout 1 15/04/2019 11:42 Page 1

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Products & Services May.qxp_Layout 1 23/04/2020 13:26 Page 2

PRODUCTS & SERVICES IBAC Establishes online ISBAO Workshops

The International Business Aviation Council () is introducing an online webinar alternative to its program workshops, as well as offering a new temporary option for remote auditing to its International Business Aircraft Operations (ISBAO) and International Business Aircraft Handling (IS-BAH) organizations as a result of COVID-19 limitations. Participating in one of the IS-BAO Fundamentals and Auditing workshops, typically performed around the world, is one of the requirements to becoming a registered organization. Beginning in April 2020, IBAC will begin providing these workshops virtually, through an internet webinar service. Katherine Hilst, ISBAO Operations Manager commented, “We are currently testing this new format for the workshops as an alternative to on-site events due to the recent virus constraints www.ibac.org

JetHQ Makes U.S. Its Base

Leading aircraft broker and consultancy JetHQ, is now a U.S.based company with headquarters in Kansas City, Missouri. It has completed the process of moving its headquarters from Dubai, United Arab Emirates, which previously served as its international headquarters, in an effort to better serve growth for its domestic divisions. “This move is about allocating resources to better serve our customers in the areas of the most growth, the United States,” said JetHQ founder and managing director Garett Jerde. “This allows us to continue to expand while maintaining the dedicated level of responsiveness and support our clients expect from our team. Being U.S. based opens up more resources to show our expertise and service.” With a doubling of its team in the U.S. in the past year, the broker expects the move to maximize sales territorial efficiency, reporting, and client services. Late last year JetHQ opened an East Coast office at Million Air in White Plains, New York. It also plans to expand to the U.S. West Coast by adding a sales director there. It will continue to operate its Dubai office, as well as satellite locations in the UK, India, South Africa, Switzerland, and Turkey www.jetHQ.com

Duncan Refurbs GIV for Corporate Shuttle Use

Duncan Aviation recently worked with a longtime customer to refurbish a Gulfstream IV-SP to better operate as a corporate shuttle for up to 14 passengers. This longtime Duncan Aviation client uses a fleet of GIV-SPs that operate as vital corporate shuttles, often flying 12 to 14 people on longer international trips, says Austin Chambers, Airframe Service Sales Rep for Duncan Aviation’s Battle Creek, Michigan, location. One of their aircraft had a 96 month inspection due, which required that the interior be removed and replaced. It sported a configuration that did not have 112 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

divans designed for the durability they required, nor were they the client’s preferred seating option for three adults. Duncan Aviation and the customer decided an extensive cabin reconfiguration along with the inspection was the best option for the aircraft’s mission. “This was a great opportunity to show what Duncan Aviation can do, offering something truly custom for a client’s specific needs. Whenever we get the opportunity to work large, multi-shop projects like this, it’s exciting. This is where Duncan Aviation really shines,” Chambers says www.duncanaviation.aero

Castle Air Adapts to Pandemic

U.K.-based Castle Air Group is perfectly positioned to offer the whole of the U.K., a full range of helicopter services. As a result of the Covid-19 pandemic, Castle have adapted their services. While still offering essential helicopter travel for their VIP clients, Castle are also offering out their fleet of 15+ helicopters to be used for evacuations from remote locations as well as transporting time-critical cargo. Operations Manager, Declan Lehane said “For businesses operating in a time-critical environment, Castle Air can provide rapid helicopter transport solutions available 24/7. Our AW109 and AW139 helicopters are fully equipped to evacuate at-risk civilians. We are also experienced in helping deliver specialist time-critical supplies including medical equipment, food and drink. Our experienced operations team is available to help arrange any emergency flight.” Castle Air is a highly professional and respected aviation operator, with over 40 years’ experience in charter, management and aircraft sales. With a fleet of more than 15 AW109 and AW139 helicopters operating out of three key bases in the U.K. www.castleair.co.uk

StandardAero Launches Engine Exchange Program

StandardAero has launched a program that in effect will keep older turbofan-powered business aircraft flying longer, especially those aircraft whose overall values make it almost cost-prohibitive to do a complete engine overhaul. The MRO provider’s engine exchange program lets aircraft owners exchange their engines or purchase replacement engines with less flight time to extend the life of their aircraft. Other program options allow StandardAero to purchase older engines, enabling aircraft owners to recoup some value, as well as lease engines to owners and operators who choose to do extensive engine overhauls but need their aircraft flying in the interim. “As hull values for legacy aircraft drop, it is increasingly difficult for operators to financially justify the cost of a full engine overhaul,” said Marc Drobny, President of StandardAero’s Business Aviation division. “With StandardAero’s new engine exchange program, operators are provided with affordable options to keep their aircraft flying and quickly recoup the asset value of remaining engine life.” www.standardaero.com www.AVBUYER.com

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AVBUYER MAGAZINE R Vol 24 Issue 5 2020 R

115

SMS G550 February.qxp_Heeren Cit Ultra sep 22/04/2020 14:45 Page 1

S H O W C A S E

Price : Make Offer 2009 Gulfstream G550 Serial Number: Regiatration: Airframe TT: Landings:

5249 N767PL 2675.3 662

G550-5249 is an immaculate, one experienced owner/operator from new, hangared in Van Nuys until sold, no damage history aircraft. It has been 'N' Reg from day one. Enrolled on RRCC, PlaneParts, GCMP, and HAPP. There is no Internet / WiFi system on board, and APU is not currently enrolled on MSP. Aircraft has never been on charter Engines BR710-11 APU Honeywell RE220: (No MSP Program) Enrolled Programs Rolls Royce Corporate Care Engine Program Honeywell Avionics Protection Plan Gulfstream PlaneParts Program (No APU MSP Plan) Avionics Four (4) Honeywell DU-1310 Flat Panel Display Units Two (2) Honeywell DC-884 Display Controllers One (1) Honeywell DP-884 Display Brightness Panel One (1) Honeywell/Kollsman Visual Guidance System (VGS)

Three (3) Honeywell MAU-913 Modular Avionics Units One (1) Honeywell GP-500 Flight Guidance Panel Three (3) Honeywell MC-850 Multifunction Control Display Units Three (3) Honeywell AZ-200 Air Data Modules One (1) Honeywell WU-880 Weather Radar Receiver/Transmitter Antenna Two (2) Honeywell WC-884 Weather Radar Controllers Three (3) Honeywell IR-500 LASEREF V Micro Inertial Reference Units Two (2) Honeywell MRC-855A Modular Radio Cabinets Three (3) Honeywell AV-900 Audio Panels Interior & Entertainment Gulfstream Select Universal 14 passenger Interior. Featuring a forward crew rest area and forward galley which includes coffee pot plus Espresso machine, microwave and convection warming ovens, refrigerator, ice drawers, hot water, control panel incorporating Securaplane screen, with a four-place club seating group, 4 place conference group, aft cabin 2 single club chairs opposing a four-place divan, fax machine. Forward and aft vacuum flushing lavatories, 6 Individual monitors in all single seat positions, 2 x 20â&#x20AC;&#x2122; bulkhead monitor, 1 x 17â&#x20AC;&#x2122; monitor positioned above credenza and 3 external cameras. Exterior Overall Matterhorn white with Vintage red stripes

SMS Aircraft Suite 1108, Level 11 St Kilda Road Towers 1 Queens Road, Melbourne Victoria, 3004, Australia

116 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Tel: +613 9863 9550 Cell: +61 417 727 727 E-mail: gsvensen@smsaircraft.com www.smsaircraft.com

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SMS G650 May.qxp_Heeren Cit Ultra sep 22/04/2020 14:46 Page 1

S H O W C A S E

2014 Gulfstream G650 Serial Number: Airframe TT: Landings:

6101 1245 506

This G650 has had 1 fastidious owner since new, with no damage history, along with impeccable maintenance and care from the full time highly experienced crew. We are confident the ownership pedigree, and operation in a non-charter environment make G650-6101a compelling choice versus other alternatives currently available on the market Engines Rolls-Royce BR725A1-12 Left engine Right engine S/N: 25317 25316 Enrolled on RRCC USD$443.87 Per Hour / 400 Hrs Per Annum Min APU 1260 hours. S/N: P-209 Enrolled on MSP USD$132.62 Per Hour Avionics Gulfstream Planeview II / Honeywell Primus Epic Avionics Synthetic Vision - Primary Flight Display (SV-PFD) Enhanced Navigation ADS-B Out (DO-260A) Three (3) Modular Avionics Units LCD Head Up Display (HUD II) Enhanced Vision System (EVS II) Two (2) Standby Multifunctional Controllers Three (3) NextGen Flight Management Systems (FMS)

Three (3) Inertial Reference System (IRS) LASEREF VI Four (4) Multifunction Air Data Probes Automatic Emergency Descent Mode (EDM) RDR-4000 3D Weather Radar Features & Options Dual Blu-ray/DVD/CD player 17-inch HD LCD monitor in crew area 26-inch HD LCD monitors in forward right-hand bulkhead 26-inch HD LCD monitors in aft forward facing left-hand bulkhead Wireless LAN system Aircell Axxess II Iridium satellite telephone system Inmarsat satellite communications system 12.1â&#x20AC;? personal HD LCD monitors in the armrests of each single-seat Securaplane 500 with three external cameras Runway Awareness Advisory System (RAAS) Swift Broadband Exterior Matterhorn White with Two Deep Red Stripes Polished External Cabin Window Surrounds Interior Cabin Layout: Fifteen (15) Passenger, Forward Galley with Forward Crew Rest Forward Cabin: Four (4) Club Chairs Mid Cabin: Four (4) Place Conference Grouping Opposite Two Single Club Seats Aft Cabin: One Three-place Divan Opposite Two Single Club Seats Galley: Forward Full Service Galley Lavatories: Forward and Aft Vacuum Lavatories

SMS Aircraft Suite 1108, Level 11 St Kilda Road Towers 1 Queens Road, Melbourne Victoria, 3004, Australia www.AVBUYER.com

Tel: +613 9863 9550 Cell: +61 417 727 727 E-mail: gsvensen@smsaircraft.com www.smsaircraft.com

AVBUYER MAGAZINE Vol 24 Issue 5 2020

117

Jetsense Aviation Bombardier Challenger 604 February.qxp_Empyrean 22/04/2020 15:15 Page 1

S H O W C A S E

2006 Bombardier Challenger 604 Airframe TT: Landings:

4351 1883

 More aggressive pricing available for a year-end deal  Currently going through a $45K PPI at Flying Colours - SUS  ATG-5000 Wifi  -150 APU  Engines Enrolled on GE OnPoint  Paint Refurbishment in 2016  Interior Refurbishment in March 2018  Precision Plus

Dual Collins ADF-462 Dual Collins HF-9031A Dual GPS-4000 Receivers/Sensors Dual Collins TDR 94D Transponders Coltech SELCAL System Dual Collins ALT-55 Radio Altimeters Fairchild A100S CVR Interior & Entertainment Interior Configuration Fwd 4-Place Club, Aft 3Place Divan, and Aft 2-Place Club Number of Passengers 9

Engines Left engine Description: GE CF34-3B S/N: 950486 THSN: 4351 Hours TCSN: 1883 Cycles Engine Program GE OnPoint

Right engine GE CF34-3B 950484 4351 Hours 1883 Cycles GE OnPoint

Avionics & Connectivity Collins ProLine 4 System includes: Collins EFD-4077 Pro Line 4 6 Tube Dual Collins VIR-432 with FM Imm. Dual Collins DME-442 Collins TCAS II with Change 7 SATCOM ICS-200 System Collins RTA 854 Weather Radar Artex 406 Satellite ELT Honeywell EGPWS Mark V Dual Collins VHF-422C

Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047

118 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com www.AVBUYER.com

Genel Havacilik BELL 407 April.qxp 22/04/2020 10:50 Page 1

S H O W C A S E

2004 Bell 407 Serial Number: Registration: Airframe TT: Landings:

53606 TC-HLN 2470:24 4708

Engines 2434:40 / TC: 3011 (SN: CAE-847650) 60 MONTHS INSPECTIONS COMPLETED ON JUN 11, 2019 Avionic and radio standart equipment Bendix/King KMA 24 H Audio Panel Bendix/King KX-165 NAV/COM Bendix/King KT-76C Bendix/King KLN 89 GPS System Garmin GNS530A GPS/COM/VOR/LOC/GS Garmin GDL69 Artex C406-1 ELT Equipment & options Bristol Aerospace Wire Strike Protection System Air Comm Corporation Air Conditioner Kit with Dual Fwd Evaporator Air Comm Corporation Cabin Heater with windshield & Chin bubble defrost AAI high visibility crew doors AAI high visibility crew doors openers AAI automatic passenger door openers aai automatic baggage door opener AAI pre-flight step handle kit AAI folding maintenance steps AAI baggage floor protector AAI cabin floor protectors (Front)

AI cabin floor protectors (Rear) AAI slide window latch kit AAI headsets retention brackets AAI Collective safety cover kit AAI cyclic support safety cover kit Paravion snow deflector dzus fastener kit Flight environments thermal/acoustic insulation system AAI VHF Com antenna mount kit LifePort, Inc. Interiors Center Refreshment Console with Ice Chest AAI WX-500 Stormscope Ant. Mount Kit AAI Deluxe Console AAI SFIM Force Trim AAI SFIM 2-Axis Autopilot AAI steerable Landing light Shadin Fuel Flow WHELEN STROBES CHELTON EFIS SYSTEM Motorola cabin portable cellular phone hands free kit AAI Carbide skid shoes AAI Aux Tank Protector Garmin GTX-33 Transponder BHT Max Internal Gross Weight Kit BHT Expandable M/R Blade Bolt Kit AAI Deluxe Console

Genel Havacilik A.S. Serdar Tamer Ozel Hangarlar Bolgesi Istanbul, 34149, Turkey www.AVBUYER.com

Tel: +90 53056 82483 Email: alsu@genelhavacilik.com.tr

AVBUYER MAGAZINE R Vol 24 Issue 5 2020 R

119

Mesotis April.qxp 22/04/2020 10:51 Page 1

S H O W C A S E

MESOTIS JETS HAS EXCLUSIVE MANDATE TO SELL THESE THREE AIRCRAFT

1994 Bombardier Challenger 601-3R Airframe TT: 10589 • Landings: 7365 • ADSB-OUT • FMS 6.1 UPGRADE

2005 Cessna Citation CJ2 Airframe TT: 6121:54 • Landings: 4847 • ENGINES ON TAP ELITE (100%). EASA COMPLIANT • NEW PAINT (SEPTEMBER 2018) • DOC 10 (SEPTEMBER 2018) • ADSB-OUT • BELTED TOILET SEAT • ALWAYS HANGARED

1995 Cessna Citation CJ Airframe TT: 6760:25 • Landings: 6577 • ADSB-OUT • LPV/WAAS • TAP ELITE • INTERIOR REFURBISHED IN MAY 2018 Mesotis Jets Thomas Thums Fleischmarkt 7/3 1010 Vienna Austria

120 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Mob: +43-67-6590-0082 Tel: +43-1-533-757216 E-mail: tthums@mesotisjets.com www.mesotisjets.com

www.AVBUYER.com

FROG Flugservice GmbH May.qxp_Empyrean 23/04/2020 11:57 Page 1

S H O W C A S E

1997 Cessna Citation Jet with fresh engines Serial Number: Registration: Airframe TT: Landings:

525-0188 N525PA 5409 5999

ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44 Engine #1 3105,1 h TSN, 2863 cycles, 3485 h remaining to OVH Engine #2 3119,0 h TSN, 2838 cycles, 3485 h remaining to OVH

The engines are not on any engine program, but have been overhauled by Williams August 2019. Have been running 15 hours since and can be enrolled into the TAP Blue program, TBO then 4000h Avionics & Connectivity Sperry EADI/EHSI left, fully switchable Dual Garmin GTN 750 FMS/Comm/Nav/ILS, LPV capable, PRNAV Dual King KN-63 DME Dual Garmin GTX-330D Mode S Diversity Transponders, WAAS, ADS-B out King RDR-2000VP Color Radar with BFGoodrich WX-950 Storm Scope GNS/XLS FMS with Shadin Air Data King KR-87 ADF King KRA-405B Radio Altimeter Artex C406-2 ELT

Interior & Entertainment Light grey 5 place passenger interior with forward RH side facing seat (overhauled 2019), 4 place center club seating, belted lavatory ( approved as 6th seat). Condition 9/10 Exterior Overall body White with Silver and Blue stripes, condition 7/10

Reduced Price $1,075,000

1996 Cessna Citation Jet Serial Number: Registration: Airframe TT:

525-0144 N525BQ 3317.4

ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44, no engine program Engine #1 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6) Engine #2 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6)

Avionics & Connectivity (RVSM, P-RNAV and WAAS approved) Sperry EADI/EHSI left, switchable to either Garmin 430 Autopilot Sperry SPZ-5000 IFCS w.Flight Director Dual Garmin GNS 430, 8,33 Khz, WAAS, COM/NAV/GPS, switched to Avidyne 500 MFD King KY-196A as 3rd transceiver Avidyne 500 MFD Moving Map King KN-63 DME King KR-87 ADF King KRA-405B Radar Altimeter King KN 158 RMI Dual Garmin GTX 330W, Mode S diversity, ADS-B out Transponders King RDR-2000VP Color Radar switched to Avidyne 500 TCAS 1 switched to Avidyne Artex C406-2 ELT

FROG Flugservice GmbH Dr. Martin Altmann, CEO POB 5253, D-51491 Overath, Germany

www.AVBUYER.com

Interior & Entertainment Grey leather seating, four executive club seats, side facing belted seat. Belted Toilet counts as 6th seat Exterior White body with decal black, maroon and golden stripes, golden decal door and window frames

Reduced Price $730,000

Tel: +49-2204-74033 Mob: +49-170-6778833 Email: jetsales@froggy.de

AVBUYER MAGAZINE Vol 24 Issue 5 2020

121

Pacific Point Aviation April.qxp 22/04/2020 10:55 Page 1

S H O W C A S E

2002 Cessna Citation Excel Serial Number: Registration: Airframe TT: Landings:

560XL-5253 N600PY 4850 4675

• ADS-B Out/WAAS • ALTO Premium Sound • Airshow 500 • Proparts • No Damage history All big inspections done in Cessna Service Centers, ADSB-Out was installed in Cessna SAT in 2019, no expense spared, mechanical and cosmetics in Top Shape Engines (Pratt & Whitney PW545A) #1 #2 Total Time Since New 4850 hrs 4675 hrs Total Cycles Since New 4850 hrs 4675 hrs Engines & APU enrolled on JSSI Premium Plus Pro Rata 13% APU (Honeywell RE100) Total Time Since New 2850 hrs Total Landings Since New 5000 hrs Avionics & Connectivity Honeywell P-1000 Integrated Flight Director & Autopilot System • 3-tube 8x7” EFIS • Honeywell Primus II Radios with Dual Comm • Dual Nav w/8.33

• ADF, Dual DME • Dual RMI & Dual Mode S Transponders • Universal UNS-1Csp Flight management system with perm. DTU • Honeywell Primus 880 Stabilized Color Radar (Turbulence Detector) • Collins ALT-55 Radio Altimeter • Honeywell TCAS II • AlliedSignal EGPWS • Honeywell KHF-950 High Frequency Com • Loral/Fairchild A200S Cockpit Voice Recorder • AirCell AT.02 Air only • Artex 110-4 ELT • Universal Unilink with embedded VHF • Honeywell Primus II ADSb Out • KGS 200 GPS/WAA Interior & Entertainment The Fireblocked passenger seats are in light gray leather. The carpet is light/dark gray tip shear and the cabinetry is Montana walnut gloss laminate and the plating is fine-antiqued silver. Interior refurbished on 12/15. Seating for eight passengers in a center club configuration with six passenger seats and a forward two-place couch. There is a removable left-hand side-facing seat in the lavatory for a ninth passenger. Exterior Overall light and dark gray color scheme. Exterior is Overall White w/Blue & Gray Accent Stripes, refurbished on 12/15 Asking Price: Make Offer

Pacific Point Aviation Enrique Ponce 300 E Oakland Park Blvd, Ft. Lauderdale, FL 33334. USA

122 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Tel: +1 (305) 395 6589 Email: sales@pacific-point.com www.pacific-point.com

www.AVBUYER.com

SAVE THE DATE FOR THE WORLD’S LARGEST BUSINESS AVIATION EVENT Join over 23,000 industry professionals for the most important three days of business aviation, with 1,000 exhibitors, 2 aircraft displays – one inside the exhibit hall and the other outside at Orlando Executive Airport, and more than 50 education opportunities. Save the date and visit the NBAA-BACE website to learn more.

SAVE THE DATE | nbaa.org/2020

P124-127.qxp 22/04/2020 10:33 Page 1

M A R K E T P L A C E

Dassault Falcon 900LX

The Ritchie Group Price:

Make Offer

Year:

2010

S/N:

244

Reg:

TTAF:

3,528

Location: USA & Canada

Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com LOW HOURS, IMMACULATE U.S. FORTUNE-500 OWNED Heavily Optioned — 2020 Compliant with Fresh Engine MPI’s. EASy II w/ADS-B Out/FANS 1A/CPDLC. Seller Paid PreBuy completed At DFJ Little Rock. Fully Programmed. Airframe: Total Landings Since New 1,843 Landings. Maintenance Tracking CAMP. Certification Currently Operated Part 91. Engines: Program Coverage MSP Gold MSP Gold MSP Gold. Avionics: Integrated Honeywell Primus Epic avionics suite. EFIS 4 monitors Honeywell Primus Epic EASy II. FMS Dual Honeywell EASyII. Int: 2016 Paint and Interior by WestStar Aviation. Number of Passengers Fourteen (14). Galley Location Forward

www.jet-transactions.com

Bombardier Challenger 601-3AER

Mickey Castellano Price:

$1,150,000

Year:

1990

S/N:

5069

Reg:

N161PB

TTAF:

8121.5

Location: USA & Canada

Cessna Citation Bravo

Boris Peev Price:

$800,000 No VAT

Year:

2002

S/N:

550-1007

Reg:

LZ BPP

TTAF:

3533.8

Location: Bulgaria

Beechcraft King Air B200

WISS ISS Price:

$1,620,000 Plus Tax

Year:

2004

S/N:

BB-1861

Reg:

SP-RPW

TTAF:

2804

Location: Poland

Westwind 1124

Nick Lewis Price:

USD $349,000

Year:

1977

S/N:

210

Reg:

N2150H

TTAF:

6582

Location: USA & Canada

124 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

Tel: +1 (305) 914-0084 E-mail: madibamiami@gmail.com Condition Used. FlightRules IFR. Based at KFXE. Airframe: Total Landings 5180. Max Takeoff Weight 43.000 lb. Range 3500 NM. Maintenance Tracking CAMP. Winglets Yes. Landing Gear Overhaul Yes. Landing Gear Cycles Since Overhaul 759. Parts Maintenance Program None. Engine: GENERAL ELECTRIC CF34-3A2. Engine Maintenance ProgramJSSI. Avionics Packaging Honeywell RNP Yes. EFIS Dual Honeywell ED-800. MDF Dual Honeywell MG-815. IRU Tri Honeywell HG1075AE. FMS Dual Honeywell CD-810. Int: Year Interior 2010. Number of Seats 10. Galley Yes. Galley Configuration Aft. Lavatory Yes. Lavatory Configuration Forward. Ext: Painted 2005

Tel: +359 888 211 134 E-mail: office@aviobravo.com EU Registration. ENG1-PW 530A, 3533.8 H. ENG2-PW 530A, 3533.8 H. RVSM: Factory Standard. No damage history. Complete records and all log books. Special AOC Package: Commercially registered and operated in European AOC. This aircraft is in excellent condition. Aircraft's current location - LBSF. Avionics: Honeywell Primus 1000 Integrated Avionics System 3 – Tube EFIS. COMMUNICATION: Dual Bendix/King KY196B Comm. VHF NAVIGATION: Dual Bendix/King KN53 Nav Receiver. Interior: Standard Citation Bravo (7+ 2 + 1 Belted Lavatory). Center Club, two Aft Forward-facing Seats, rear Facing Seat across from Galley including Belted Lavatory. Price Reduced

Tel: +48 533 538 071 E-mail: pr@wiss.com.pl Engines: Pratt & Whitney PT6A-42, Propellers: Hartzell HC=E4N-3, Propellers inspected in 2017, Landing Gear Overhaul done in 2017, No damage history, ADS-B installed at the end of 2019. TT: 2866Hrs. Landings: 2782 cicles. All services carried out on time without exceeding the time limit. Always kept in a hangar - Privately owned by one family. CABIN Very well-kept interior - leather: – Cabin seating for six – Left-hand forward refreshment center – Two executive tables – Right-hand aft side-facing belted lavatory seat – 115 VAC outlets. – Pro Line 21 Integrated Avionics System – Collins radios with dual COM, dual NAV, dual audio control panels – Single DME – Collins TWR-850 Turbulence Weather Radar

Tel: +1 (912) 339 2824 E-mail: mreed@thekingdomgroup.net 977 Westwind 1124 with engines on MSP. TTAF: 6582 hours, 5959 cycles. Engines: Garrett TFE731-3-1G. TS Core 2078 1636. CS Core 939 262. Core Interval: 4200 hours 4200 hours. Avionics: Garmin 750 & 650 Nav’s & Comm’s. Full ADSB In/Out, Compliant with FAR 91.227. Garmin GTX 345R #1 Transponder. Garmin GTX 33ES #2 Transponder. Collins AP-105 Auto Pilot. Int: Rated 7, 2002. Eight passenger executive configuration in Dark Brown Leather. Five (5)Individual Seats, Three (3) place couch, Forward refreshment center with storage, Rear four (4) place club with two (2) large writing tables and a fully enclosed belted lavatory. Exterior is outstanding with new paint (2016) rated 10

www.AVBUYER.com

P124-127.qxp 22/04/2020 10:33 Page 2

Bombardier Learjet 36A

Leonard Price: Year: S/N:

M A R K E Tel: +1 (806) 662 5823 T Hudson Drilling Email: ronfernuik@hotmail.com P L Offer/Trade Learjet 36A, Long range capability, as configured 2,400 A nautical miles. Can be upgraded to 2,600 mile range. C 1977 Recent paint and interior, RVSM. E 36A-030

Reg:

N160GC

TTAF:

15,600

Location: USA

BELL 412EMS

Competitively priced at US $1,375,000, may take trade on a King Air or a helicopter Would consider trade for KingAir 200/300

Leonard Hudson Drilling Price:

Offer

Year:

1981

S/N:

33017

Reg:

N554AL

TTAF:

15265

Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com

Full EMS Medical 4 patient and 4 attendant interior. Recent ‘no expense spared’ airframe refurbishment at Acro Helipro within the last 100 hours. Both engines are fresh Pratt and Whitney overhauled. Immediate delivery, Meticulous records. Current with medical interior and 13 passenger utility interior are included, aircraft is ‘turn-key’ will provide Fresh annual /Export C of A

Location: USA

BELL 212 (Five Available)

Leonard Hudson Drilling Price:

Please Call

Year:

1991-1996

S/N:

Call for details

Reg:

Call for details

TTAF:

Call for details

Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com

Five, Late Model, Bell 212s In 'Off Shore’. Available for immediate use. Asking $3.1M to $3.6M USD. Serial numbers: 35034, 35048, 35060, 35088 and 35096

Location: USA

Airbus H125

Lloyd Helm

Tel: +44 (0)786 676 8376 E-mail: 5hundred.lh@gmail.com

Price:

£1,800,000 Excl. VAT One owner only two pilots fabulous aircraft. Maintenance &

Year:

2015

S/N:

8114

Reg:

GLEOG

TTAF:

1000

Inspections: COA October 2020. Avionics: Garmin GTN Nav. Garmin 350 radio. Int: 5or6 seats with front impact. Ext: Black metallic with cream stripe. Additional equipment: Helisas and Autopilot

Location: United Kingdom

Bell 407

Mark Laden Price:

$2,500,000 Excl. VAT BELL 407GX with VIP interior / AUTOPILOT / low skid gear. Interior

Year:

2011

S/N:

54315

Reg:

TTAF:

1350

Location: Belgium

www.AVBUYER.com

Tel: +32 476 699 492 E-mail: laden@ladenbxl.com colour: light grey leather corporate seats. Exterior colours: diamand black Met. / Viper Red / Silver white prl Met. In excellent condition always in hangar. Maintained in official Bell Maintenance Center. Airframe: Aux Fuel Tank Provisions 19 Gal; 28 Amps Battery ;Rotor Brake; Dual Controls; High Vis M/R Blades; Garmin G1000 Glass Cockpit. Avionics: Headliner with AC Ducting. Expanded avionics shelf. AFT ICS. Garmin GTS 800 TAS. ELT provisions. Artex C406-NHM ELT w/PGM Adaptor. Corporate interior. Corporate soundproofing. Corporate armrest. Corporate seats (light gray leather)

AVBUYER MAGAZINE R Vol 24 Issue 5 2020 R

125

P124-127.qxp 22/04/2020 10:33 Page 3

M A R K E T P L A C E

Agusta AW139

Skypro Charters Price:

Please Call

Year:

2013

S/N:

31455

Reg:

TTAF:

442,27

Location: Russian Federation

Mitsubishi Solitaire

Michael Kraemer Price:

Please Call

Year:

1979

S/N:

407SA

Reg:

N750CA

TTAF:

4.410

Location: Germany

McDonnell Douglas Helicopter 500E Anthony Draper Price:

Make Offer

Year:

2002

S/N:

0563E

Reg:

G-MDDE

TTAF:

4465

Location: United Kingdom

Airbus/Eurocopter AS 355F-2

Simon Jones Price:

ÂŁ450,000 Excl. VAT

Year:

1990

S/N:

5453

Reg:

G-BSTE

TTAF:

2264.2

Location: United Kingdom

McDonnell Douglas Helicopter 520N Mario Lauricella Price:

USD $950,000

Year:

1995

S/N:

LN067

Reg:

N105WF

TTAF:

940

Tel: +7 495 150 3300 E-mail: eo@skypro.aero Always hangared. Remedied defects, which usually occurring during the first 300 flight hours. Not based in the coastal climate, no corrosion. Interior in perfect condition due to low usage. Ergonomic interior. Airframe: Date entered service - 05.2013. Landings - 910 cycles. Seats 8. Configuration - VIP. Avionics: Honeywell Primus Epic System for visualization of flight and navigation data. Electronic Standby Instrument System (ESIS). Attitude and Heading Reference Systems (AHRS). Air Data Modules (ADM). Additional Equipment: Air collision avoidance system TCAS I KTA-970 Honeywell Bendix/King. Improved system of warning of dangerous approach to the earth EGPWS

Tel: +49 (0) 173 252 9420 E-mail: m.kraemer@tpsd.de Low time, great remaining hours. Cruise speed upto 321 KTS. Range upto 1.600 NM with 45 min reserve. Most ideal aircraft for private european buyer. EU customs cleared and VAT paid. Comes with new annual/100/200/600h inspection in 1/2020. EU service stations, pilot training and type rating TRTO available. European potential buyers to contact Michael at +49 173 2529420. US customers contact Bill at +1 401 556 5648, training and ferry available on request. Engines: TPE-331-10-511M. TT 4.410, recommended TBO 5.400. TSHS 810. RH prop due 3/2024. LH prop due 2/2027. G600 syntetic Vision. GTN750, on G600 and KMD850

Tel: +44 (0)787 680 1006 E-mail: anthony.draper@me.com Beautifully refurbished MD500e. Completed in 2018 with 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

E-mail:simon_jones@oscarmayer.co.uk Single Pilot IFR helicopter in VIP 5 seat configuration. Readily convertible to 6 seats. Landings since new: 3771. Engines: 2 Allison 250-C20F. Avionics: SFIM 3 axis autopilot. Moving terrain GPS. King KX165 Nav/Com. King KY196A Com 2. King KN53 Nav 2. King KR87 ADF. King KN63 DME. Garmin GTX 328 transponder. EFIS AH and DG. Weather radar. Radar altimeter. Standby AH. Standby Altimeter. Digital clock. King KCS 55 H.S.I. The interior is original and could do with updating. The aircraft has been re-sprayed metallic grey during her 12-yearly inspection. Updated photos to follow when available. Dual batteries. Swing doors. Low skids. EMAIL ONLY

Tel: +39 393 918 3639 E-mail: lauricellaconsulting@gmail.com Airframe TSN 940, Engine TSN 430 NDH warranty on the engine 1 year/ 300 hrs, fresh annual inspection, new fan straps.

Location: Italy

126 Vol 24 Issue 5 2020 AVBUYER MAGAZINE

www.AVBUYER.com

P124-127.qxp 22/04/2020 10:34 Page 4

Nigel Watson

Airbus/Eurocopter EC 145

Price:

Please Call

Year:

2009

S/N:

9242

Reg:

M-LUNA

TTAF:

1382

M A R K E Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 T E-mail: emma@nigelwatson.im P L Only 1382TT, 7 passenger VIP Cabin, blue and silver paint. Has A exclusively been for VIP operation. Available from November C 2019. Full valuation report and equipment lists available to E interested parties. Well maintained; airworthy & operational; fresh annual 7/19. Fully enrolled on PBH and SBH since new. Eng #1 - 1382h; Eng #2 - 1375h. Proposals for refurbishments to paint and interiors available. For more information please visit www.nigelwatson.im/brokerage/ec145

Location: France

www.nigelwatson.im/brokerage/ec145

Nigel Watson

Airbus/Eurocopter AS 365N-3

Price:

Make Offer

Year:

2008

S/N:

6815

Reg:

M-LVIA

TTAF:

930

Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 E-mail: emma@nigelwatson.im Only 930TT, 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 - 931h; Eng #2 - 931h. Proposals for refurbishments to paint and interiors available.

Location: France

Tel: +33 (0) 642 086 656 E-mail: greg.fp@live.fr

GREGORY Sonniez

Robinson R66

Price:

€800,000 Inc. VAT

Year:

2015

S/N:

637

Reg:

F-GSHS

TTAF:

222

Location: France

Beech Bonanza F33A

Optional equipment: extinguisher 14 Oz, cabin protection cover high capacity battery, 5-points safety harness, front seats. Optional avionic: COM garmin GTR 225B, GPS/COM/NAV GARMIN GTN 650 with cdi, GARMIN GMA 350H, PFD ASPEN AVIONICS EFD 1000H PRO with HSI, GARMIN GTX 330 ES MODE S, KANNAD AF 406. Additional options: painting CORPS black met L0216HL, 5 bose serie X, super protection anti corrosion, always parked in a hangar, private use, only one pilot, like new

AUGSBURG AIR SERVICE

Tel: +49 821 7003 143 E-mail: sales@aas-augsburg.de

Price: Year:

1989

S/N: Reg: TTAF:

EU-Reg, Engine 630 h TSN, WX-500 Stormscope, 2x Garmin GTN750/650, King KFC150 AP, GTX-345R Mode-S XPDR, ILS/RNAV approach, Tip Tanks, Seats refurbished - in good condition!

2.070

Location:

Alberth Air Parts

+1 832 934 0055

Spare Parts

Par Avion Ltd FALCONS • HAWKERS • LEARS

•BUY •SELL •TRADE CESSNA LEARJET HAWKER WESTWIND FALCON GULFSTREAM

www.alberthaviation.com

www.paravionltd.com SALES • ACQUISITIONS • CONSULTING

Fax: +1 832 934 0011 www.AVBUYER.com

AVBUYER MAGAZINE R Vol 24 Issue 5 2020 R

127

NAFA December.qxp_Layout 1 18/02/2020 15:14 Page 1

Join us in Napa Valley for NAFA’s 49th annual conference. Register now at www.nafa.aero Where the industry gathers to connect the people and ideas that finance the world’s business and general aviation aircraft.

Keynote Speaker Dawn Hudson

Widely recognized as one of the most important female business executives of the past decade, Dawn Hudson is the former Chief Marketing Officer at the National Football League and the former President and CEO of Pepsi Cola North America. She has led an impressive career spanning high-level posts in media, retail, consumer goods, consulting, and healthcare at some of the biggest corporations in the world.

Hudson’s work has been focused on revolutionizing and strengthening brands’ positioning and marketing, tapping into culture change as fuel for innovative business strategies, and championing inclusive leadership and diversity. She has been recognized as the “Most Vital Leader in Tech, Media, and Marketing” by AdWeek – topping a list of 50 industry titans – and twice as one of Fortune magazine’s “50 Most Powerful Women in Business.”

Some topics of importance covered at our event • State of Aviation Insurance • Detecting Fraud in Aircraft Transactions • The Future of Aviation and Urban Mobility • Aviation Industry Townhall • New Aircraft Showcase • Preowned Market Update • Desktop Appraisal Best Practices

Also included in our annual conference: • One Extra Day for Additional Content • Annual Golf Tounament • Wine Tasting Activities • Networking Find out more about the advantages of membership at www.nafa.aero. 410-571-1740 | info@nafa.aero

P129.qxp 23/04/2020 11:55 Page 1

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

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Conklin & de Decker .........................................111

JetHQ .............................................................42 - 43

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Jet Sense Aviation .............................................118

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Aircraft For Sale • AIRCRAFT • HELICOPTERS

AIRCRAFT

PAGE

AIRCRAFT

AIRBUS A318 Elite . . . . . 5, A319 VIP . . . . . . 5, A380-800 . . . . . . 38,

BOEING/MCDONNELL DOUGLAS BBJ2 . . . . . . . . . 5, BBJ3 . . . . . . . . . 33, 757 . . . . . . . . . . . 45, 787-8. . . . . . . . . . 25, 132,

BOMBARDIER Global 5000 . . . . 24, 25, 75, 132, Global 6000 . . . . 4, 24, 25, 33, 38, . . . . . . . . . . . . . . . 132, Global 6500. . . . 4, 24, Global 7500 . . . . 4, Global Express . 10, 18, Global Express XRS. 4, 10, 25, 36, . . . . . . . . . . . . . . . 132,

Challenger 300 . . . . . . . . . . . 4, 7, 10, 11, 24, 71, . . . . . . . . . . . . . . . 99, 350 . . . . . . . . . . . 10, 601 1A . . . . . . . . 25, 132, 601 3A . . . . . . . . 11, 19, 601 3A-ER . . . . . 124, 601-3R . . . . . . . . 20, 120, 604 . . . . . . . . . . . 11, 24, 118, 605 . . . . . . . . . . . 11, 18, 24, 25, 36, . . . . . . . . . . . . . . . 45, 99, 132, 850 . . . . . . . . . . . 4,

PAGE

III . . . . . . . . . . . . . 101, V. . . . . . . . . . . . . . 31, X . . . . . . . . . . . . . 7, 13, 31, 87, X +. . . . . . . . . . . . 25, XLS . . . . . . . . . . . . 13, XLS+ . . . . . . . . . . . 7, 19, CJ1. . . . . . . . . . . . . 7, CJ2. . . . . . . . . . . . . 87, 120, CJ2+ . . . . . . . . . . . 25, 71, 75, CJ3. . . . . . . . . . . . . 7, 19, 75, 81, 101, CJ3+ . . . . . . . . . . . 75, CJ4. . . . . . . . . . . . 25, 31, 38, Bravo . . . . . . . . . 124, Caravan 208 . . . 25, Encore . . . . . . . . 13, Excel . . . . . . . . . . 26, 122, Jet . . . . . . . . . . . . 26, 31, 120, 121, Mustang. . . . . . . . 19, Sovereign. . . . . . 31, 182T . . . . . . . . . . 31, 206H . . . . . . . . . . 31, 101, 340A RAN VI . . . 31, T201N . . . . . . . . . 101, Ultra . . . . . . . . . . . 101, 500 . . . . . . . . . . . . 101,

CESSNA Citation II . . . . . . . . . . . . . 101,

PAGE

CIRRUS SF50 . . . . . . . . . . 87,

DAHER SOCATA TBM930 . . . . . . . 7, TBM940 . . . . . . . 7,

DASSAULT FALCON 7X . . . . . . . . . . . . 3, 5, 11, 20, 33, 131, 8X . . . . . . . . . . . . 2, 11, 20C-5AR. . . . . . . 101, 20F-5BR . . . . . . . 7, 50 . . . . . . . . . . . . 12, 131, 50EX . . . . . . . . . . 12, 101, 900DX . . . . . . . . 99, 900EX EASy . . . 11, 12, 19, 37, 131, 900LX . . . . . . . . . 25, 124, 132, 2000 . . . . . . . . . . 11, 2000EX EASy . . 36, 2000EX EASyII 49, 2000LX . . . . . . . . 77, 2000LXS. . . . . . . 2, 25,

AIRCRAFT

PAGE

EMBRAER

HONDA

Legacy 450 . . . . 1, 25, 31, 132, Legacy 500 . . . . 12, 20, 25, 132, Legacy 600 . . . . 38, 132, Lineage 1000 . . 38, Lineage 1000E . 131, Phenom 100 . . . 19, 25, 27, Phenom 100EV. 27, Phenom 300 . . . 5, 7,

Jet HA 420 . . . . . 7,

GULFSTREAM

NEXTANT

IVSP . . . . . . . . . . 81, 109, V. . . . . . . . . . . . . . 10, 37, 99, 109, 200 . . . . . . . . . . . 10, 25, 280 . . . . . . . . . . . 26, 49, 71, 131, 400 . . . . . . . . . . . 19, 450 . . . . . . . . . . . 4, 10, 25, 44, 45, . . . . . . . . . . . . . . . 109, 132, 500 . . . . . . . . . . . 44, 71, 550 . . . . . . . . . . . 10, 33, 37, 38, 45, . . . . . . . . . . . . . . . 109, 116, 650 . . . . . . . . . . . 9, 25, 26, 33, 37, 71, . . . . . . . . . . . . . . . 117, 132, 650ER. . . . . . . . . 4, 45,

400XT . . . . . . . . . 25, 132

HAWKER BEECHCRAFT

Learjet 31A . . . . . . . . . . . 101, 35A . . . . . . . . . . . 101, 36A . . . . . . . . . . . 125, 40XR . . . . . . . . . . 101, 45 . . . . . . . . . . . . 12, 45XR . . . . . . . . . . 7, 12, 19, 43, 49, 55 . . . . . . . . . . . . 13, 101, 60 . . . . . . . . . . . . 12, 25, 99, 60SE . . . . . . . . . . 131, 60XR . . . . . . . . . . 25, 70. . . . . . . . . . . . . 81, 75. . . . . . . . . . . . . 7,

AIRCRAFT

King Air 350i . . . . . . . . . . . 36, 43, 49, A100 . . . . . . . . . . 101, B100 . . . . . . . . . . 43, B200 . . . . . . . . . . 124, B200XPR . . . . . . 101, C90B. . . . . . . . . . 101, C90GTi . . . . . . . . 109, C90GTx. . . . . . . . 7,

Beechcraft B60 Duke . . . . . . 101, Premier I . . . . . . 25, 132, Premier IA . . . . . 109, A36 Bonanza. . . 43, F33A Bonanza. . 127,

Hawker 400XP . . . . . . . . . 43, 101, 750 . . . . . . . . . . . 43, 800XP . . . . . . . . . 12, 18, 27, 71, 81, . . . . . . . . . . . . . . . 109, 800XPi . . . . . . . . 12, 24, 27, 900XP . . . . . . . . . 7, 12, 26, 71, 109, 4000 . . . . . . . . . . 81,

IAI Astra 1125SP . . 131, Westwind 1124 . 124,

MITSUBISHI Solitaire . . . . . . . 126,

PIPER Cheyenne IIIA . . 101, Saratoga . . . . . . 101,

HELICOPTERS AIRBUS/ EUROCOPTER AS 355F-2 . . . . . 126, AS 365N-3 . . . . . 127, EC 120B . . . . . . . 109, EC 145 . . . . . . . . 127, H125 . . . . . . . . . . 125,

AGUSTAWESTLAND AW109C. . . . . . . . 95, AW109 Power . . 95, AW109S Grand. 38, 95, AW109SP . . . . . . 20, AW139 . . . . . . . . . 126,

BELL 206BIII . . . . . . . 95, 212 . . . . . . . . . . . 125, 407 . . . . . . . . . . . 119, 125, 412EP . . . . . . . . . 109, 412EMS . . . . . . . 125,

MD 500E . . . . . . . . . . 126, 520N . . . . . . . . . . 126,

ROBINSON R66 . . . . . . . . . . . 127,

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