AvBuyer Magazine September 2014

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AVBUYER WORLD

B U S I N E S S

September 2014

A V I A T I O N

I N T E L L I G E N C E

is pleased to present the Embraer Lineage 1000 #19000243 and the following “World Class” opportunities: 2001 Airbus A319 CJ 2002 Airbus A320 VIP 2007 Boeing Business Jet 2014 Global 6000 (2) 2015 Global 6000

THIS MONTH Business Aviation & The Boardroom Plane Sense on Cockpit Avionics GAMA 2Q 2014 Shipment Analysis & Report Aircraft Comparative Analysis – Citation CJ3 Steve Schulte Photography

Formerly World Aircraft Sales Magazine

www.AVBUYER.com

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AC Index September 20/08/2014 15:00 Page 1

Aircraft For Sale • AIRCRAFT • HELICOPTERS • PRODUCT & SERVICE PROVIDERS AIRCRAFT

PAGE

AERO L-39C Albatross . 31,

AIRBUS A318 Elite. . . . . . 28, 29, A319CJ . . . . . . . . 1, 77, A320 VIP . . . . . . 1, ACJ318 Elite . . . 131,

BOEING/MCDONNELL DOUGLAS 737-200 VIP . . . . 41, BBJ . . . . . . . . . . . 1, 23, 41, 42, 55, 68, . . . . . . . . . . . . . . . 69, CRJ-200 ER . . . . 25, CRJ-200 LR . . . . 42, 148, DC8 VIP . . . . . . . 41, MD 87 . . . . . . . . . 143, Super 727-200 . 41,

BOMBARDIER Global 5000 . . . . 10, 42, 135, 148, Global 6000 . . . . 1, 43, 148, Global 7000 . . . . 142, Global Express . 10, 24, 41, 43, 69, 77, . . . . . . . . . . . . . . . 87, Global Express XRS . 10, 115, Global XRS . . . . 24, 43, 148,

Challenger 300 . . . . . . . . . . . 12, 71, 87, 148, 601-3A . . . . . . . . 20, 68, 91, 601-3A/ER. . . . . 12, 601-3R . . . . . . . . 91, 148, 604 . . . . . . . . . . . 36, 49, 63, 65, 148, 605 . . . . . . . . . . . 39, 42, 64, 77, 148, 850 . . . . . . . . . . . 42, 142, 148,

Learjet 24E . . . . . . . . . . . 48, 95, 31A . . . . . . . . . . . 49, 31ER . . . . . . . . . . 47, 35A . . . . . . . . . . . 48, 121, 36A . . . . . . . . . . . 141, 40 . . . . . . . . . . . . 64, 40XR . . . . . . . . . . 121, 126, 45 . . . . . . . . . . . . 13, 49, 91, 129, 45XR . . . . . . . . . . 91, 127, 148, 60 . . . . . . . . . . . . 49, 68, 91, 142, 60SE . . . . . . . . . . 48, 148, 60XR . . . . . . . . . . 36, 49, 91,

CESSNA Citation ISP . . . . . . . . . . . 46, II. . . . . . . . . . . . . . 46, 142, III . . . . . . . . . . . . . 13, V. . . . . . . . . . . . . . 13, 48, VII . . . . . . . . . . . . 32, X . . . . . . . . . . . . . 12, 51, 87, 91, 147, XLS . . . . . . . . . . . 48, 87, 93,

AIRCRAFT

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XLS+ . . . . . . . . . . 12, 48, 87, 138, CJ. . . . . . . . . . . . . 46, CJ1. . . . . . . . . . . . 13, CJ1+ . . . . . . . . . . 31, 91, CJ2. . . . . . . . . . . . . 13, 31, 42, 48, 77, 91, CJ3. . . . . . . . . . . . 21, 46, 77, 91, 93, CJ4. . . . . . . . . . . . 13, M2 . . . . . . . . . . . . 31, 414A . . . . . . . . . . 47, 560 XLS . . . . . . . 130, 650 . . . . . . . . . . . 93, Bravo . . . . . . . . . 48, 69, 89, 125, Excel . . . . . . . . . . 12, Jet . . . . . . . . . . . . 87, 121, Mustang . . . . . . . 13, 48, 89, Sovereign. . . . . . 12, 41, 51, Ultra . . . . . . . . . . 13, 87, 91, 139, 140,

Conquest I . . . . . . . . . . . . . . 31,

Grand Caravan VIP Caravan. . . . 41,

DIAMOND DA-40 . . . . . . . . . 143,

EMBRAER EMB-135LR . . . . 41, ERJ-145EP. . . . . 41, Legacy 500 . . . . 20, Legacy 600 . . . . 41, 148, Lineage. . . . . . . . 68, Phenom 300 . . . 67, 77,

FAIRCHILD DORNIER 328 . . . . . . . . . . . 31, 328/300 . . . . . . . 77, F300 . . . . . . . . . . 143,

FALCON JET 7X . . . . . . . . . . . . 3, 11, 51, 77, 146, 10 . . . . . . . . . . . . 11, 48, 20F . . . . . . . . . . . 147, 20-5F. . . . . . . . . . 121, 50 . . . . . . . . . . . . 11, 63, 64, 77, 95, . . . . . . . . . . . . . . . 115, 140, 146, 147, 50-40 . . . . . . . . . 146, 147, 50EX . . . . . . . . . . 3, 11, 93, 146, 100 . . . . . . . . . . . 11, 900B . . . . . . . . . . 3, 11, 20, 41, 42, 49, . . . . . . . . . . . . . . . 91, 146, 147, 148, 900C . . . . . . . . . . 11, 58, 146, 148, 900DX . . . . . . . . . 133, 900EX . . . . . . . . . 25, 146, 148, 900EX EASy . . . 3, 146, 147, 148, 900LX . . . . . . . . . 11, 2000 . . . . . . . . . . 10, 11, 41, 48, 51, . . . . . . . . . . . . . . . 91, 95, 2000EX. . . . . . . . 148, 2000EXEASy . . 24, 42,

AIRCRAFT

PAGE

2000LX . . . . . . . . 3, 20,

09.14 AIRCRAFT

PAGE

SABRELINER 65 . . . . . . . . . . . . 48,

FOKKER 100 Executive Jet . 141,

GULFSTREAM IV . . . . . . . . . . . . . 10, 59, 68, 69, 91, . . . . . . . . . . . . . . . 121, 148, IVSP . . . . . . . . . . 10, 24, 32, 41, 43, . . . . . . . . . . . . . . . 64, 67, 148, V. . . . . . . . . . . . . . 10, 20, 21, 32, 39, . . . . . . . . . . . . . . . 91, 147, 100 . . . . . . . . . . . 48, 63, 150 . . . . . . . . . . . 20, 32, 95, 115, 200 . . . . . . . . . . . 7, 21, 48, 63, 64, 95, . . . . . . . . . . . . . . . 128, 134, 147, 450 . . . . . . . . . . . 7, 10, 21, 33, 41, 69, . . . . . . . . . . . . . . . 148, 550 . . . . . . . . . . . 7, 25, 33, 41, 43, 69, . . . . . . . . . . . . . . . 87, 132,

HAWKER BEECHCRAFT Beechcraft 400 . . . . . . . . . . . 95, 400A . . . . . . . . . . 13, 49, 64, 89, Premier 1A. . . . . 136,

King Air 350 . . . . . . . . . . . 21, 49, 91, 115, 121, B200 . . . . . . . . . . 47, 87, 89, 143, C90 . . . . . . . . . . . 77, 121, C90B . . . . . . . . . . 13,

Hawker 400XP . . . . . . . . . 89, 91, 121, 700A . . . . . . . . . . 49, 800A . . . . . . . . . . 46, 140, 800XP . . . . . . . . . 7, 12, 48, 51, 63, 64, . . . . . . . . . . . . . . . 91, 121, 134, 137, 850XP . . . . . . . . . 64, 900XP . . . . . . . . . 64, 143, 1000A . . . . . . . . . 142, 1000B . . . . . . . . . 148, 4000 . . . . . . . . . . 64, 121,

IAI Astra . . . . . . . . . . 48, Astra SP . . . . . . . 115, Westwind II . . . . 140,

PIAGGIO

SOCATA TBM 700B . . . . . 48, TBM 700C2 . . . . 48, TBM 850. . . . . . . 89, 91,

HELICOPTERS AGUSTAWESTLAND A109E Power. . . 14, A109S Power . . 14, A119 KE . . . . . . . 77, AW109 SP . . . . . 77,

BELL 206 L4. . . . . . . . . 141, 212 . . . . . . . . . . . 141, 407 . . . . . . . . . . . 14, 91, 412 EMS . . . . . . 141, 429 . . . . . . . . . . . 14, 68,

EUROCOPTER AS 350 B2 . . . . . 77, AS 350 B3 . . . . . 77, AS 355 F . . . . . . 41, AS 365 N3 . . . . . 148, BK 117C1. . . . . . 77, EC120B . . . . . . . 77, EC 130 B4 . . . . . 87, EC 135 P2i . . . . . 14, EC 135 P2+ . . . . 77,

SIKORSKY S-76C+ . . . . . . . . 14, S-76C++ . . . . . . 25,

CORPORATE AVIATION PRODUCTS & SERVICES PROVIDERS Aircraft Engine /Support . 15, 45, . . . . . . . . . . . . . . . . . . . . . . . . 119, Aircraft Perf & Specs . . . . . 120, 123, Aircraft Title/Registry . . . . 101, 117, Finance . . . . . . . . . . . . . . . . 111, Ground Handling . . . . . . . . 123, Legal. . . . . . . . . . . . . . . . . . . 123,

Avanti P180 . . . . 51,

PILATUS PC12/45. . . . . . . 47,

PIPER Cheyenne II . . . . 77, Meridian . . . . . . . 47,

THE WORLD’S LEADING

AIRCRAFT DEALERS & BROKERS find one today 4

AVBUYER MAGAZINE – September 2014

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Contents

Volume 18, Issue 9 – September 2014

Featured Articles Business Aviation and the Boardroom 16

Common Need, One Market: Whether new or pre-owned, business aircraft can address a company’s or entrepreneur’s fundamental need to travel.

18

Trust and Verify: Most Business Aviation professionals are worthy of all the trust you place in them… and a very small percentage is not. Pete Agur explains.

26

Avoid Misuse of the Business Aircraft: Don’t blame Business Aviation! Executives without proper Board direction - not business aircraft abuse shareholders.

34

What is the Same About the Difference: Jay Mesinger ruminates on the nature of the market for business aircraft in the years following the 2008 financial crisis.

40

War Risk Insurance: Recent tragedies involving airliners, terrorist attacks

16

at airports and the specter of global instability has the market for War Risk insurance reeling…

70

50

Avoiding the Flight Department Company Trap: Obtaining authorization from the FAA to conduct flights for compensation and reward is sophisticated and time-consuming, explains Troy Rolf...

54

Large Cabin Jet Value: A look at the benefits of the Large Cabin jets, and a listing of values for the models built over the last 20 years.

Main Features 60

Flight Dept. Management Skills – High Trust Leadership (3 of 4) – Great leaders and managers have trustworthiness in common. That’s partly down to ‘Competence’ and ‘Connection’. Here’s how…

62

Flight Dept. Management Skills – Steps for Budgeting – Walter Kraujalis outlines four steps to implementing an effective flight department budget.

70

Aircraft Comparative Analysis – Citation CJ3 – How does the performance of the CJ3 stand up against the Learjet 31A and Hawker 400XP? Plane Sense on Cockpit Avionics –

82

88 Regular Features 76 110 114 118

Aircraft Specs & Performance Tables Market Indicators BizAv Round-Up Aviation Leadership Roundtable

88 94 98

100

GAMA 2Q 2014 Shipment Analysis & Report: Evidence of recovery continues to abound in the latest report from the General Aviation Manufacturers Association. Mike Potts analyses the numbers...

106

Scaling an SMS: In the last of his three-part study, safety consultant Mario

Next Month’s Issue Business Aviation and the Boardroom

Pierobon considers the complexities of scaling an SMS to a small flight operation, this month focussing on ‘Implementation’.

Safety Focus – IS-BAH Aircraft Comparative Analysis (Global 6000)

108

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AVBUYER MAGAZINE – September 2014

NextGen: How will you manage the Transition? asks Brian Wilson. A practical, and manageable guide for getting your aircraft compliant for NextGen. Beyond the NextGen Cockpit: NextGen’s on everyone’s lips, but there’s plenty to stay focussed on in the current flight panel including safety, status awareness and aircraft performance.

The Front-Office Panel Makeover: Dave Higdon outlines the financial and operating benefits (some obvious and some less so) of updating the flight panel with a retrofit.

The Cost of Maintenance: While today’s avionics are highly sophisticated, they can be costly to fix. Steve Watkins offers planning tips to prevent maintenance costs from sky-rocketing.

Charter Customer Services: When it comes to customer service in the competitive charter market, little things make a big difference. www.AvBuyer.com

Aircraft Index see Page 4

Panel Sept14 20/08/2014 10:44 Page 2

AVBUYER

CHANGE OF NAME BUT NOT OF MISSION !

EDITORIAL Deputy Editor (London Office) Matthew Harris 1- 800 620 8801 editorial@avbuyer.com Editor - Boardroom Guide J.W. (Jack) Olcott 1- 973 734 9994 Jack@avbuyer.com

WORLD

www.AvBuyer.com ™

The global marketplace for business aviation

Editorial Contributor (USA Office) Dave Higdon Dave@avbuyer.com

June 2014

2014 GULFSTREAM G450, SN 4303 See pages 32 - 33 for further details

Consulting Editor Sean O’Farrell +44 (0)20 8255 4409 Sean@avbuyer.com

ADVERTISING Brittany Davies VP Sales Cell: 303-917-0186 Bd@avbuyer.com Linda Blackburn 1- 614 418 7064 Linda@avbuyer.com

Maria Brabec +420 604 224 828 Maria@avbuyer.com STUDIO/PRODUCTION Helen Cavalli / Mark Williams 1- 800 620 8801 Helen@avbuyer.com Mark@avbuyer.com

We are delighted to announce this brand consolidation and the renaming of our magazine to: AvBuyer.

Is Now

AVBUYER WORLD

B U S I N E S S

September 2014

A V I A T I O N

I N T E L L I G E N C E

is pleased to present the Embraer Lineage 1000 #19000243 and the following “World Class” opportunities: 2001 Airbus A319 CJ 2002 Airbus A320 VIP 2007 Boeing Business Jet 2014 Global 6000 (2) 2015 Global 6000

CIRCULATION Barry Carter 1- 800 620 8801 Barry@avbuyer.com

THIS MONTH Business Aviation & The Boardroom

Safety Matters: Autumn Aviating Aircraft Comparative Analysis – Citation CJ3 Steve Schulte Photography

Formerly World Aircraft Sales Magazine

www.AVBUYER.com

Emma Davey Emma@avbuyer.com

USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE Cowleaze House, 39 Cowleaze Rd, Kingston, Surrey, KT2 6DZ, UK +44 (0)20 8255 4000 PRINTED BY Fry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055

The magazine will continue to offer the best in Business Aviation writing and the latest inventory listings and the best in Business Aviation products and services. The change of name to AvBuyer reflects our continued commitment to meet the needs of today’s aircraft buyer by delivering the market intelligence and operational insights they require. Thus, the magazine’s new tagline— Business Aviation Intelligence — truly sums up the value that AvBuyer magazine delivers.

We look forward to your comments and feedback as we move into this exciting new chapter in our history. Please feel free to contact us at any time.

Plane Sense on Cockpit Avionics

AVBUYER.COM Nick Barron Nick@avbuyer.com

PUBLISHER John Brennan 1- 800 620 8801 John@avbuyer.com

Building on the success of our magazine, we launched AvBuyer.com in 1998 and have been honored to watch it become one of the Internet’s premier platforms for listing and researching pre-owned business aircraft and associated products and services.

While successfully operating under two names for many years, the time has come to bring our magazine and digital media brands together all under one designation.

an AvBuyer.com Publication

Karen Price 1- 800 620 8801 Karen@avbuyer.com

World Aircraft Sales Magazine has been privileged to serve the Business Aviation community for 18 years through its unique blend of high quality editorial content and aircraft advertising.

Warm regards John Brennan Publisher

AVBUYER ONLINE : IN PRINT : BROADCAST

AVB UYER IS A MEMBER OF THE FOLLOWING ORGANISATIONS: Aircraft Electronics Association (AEA) British Business and General Aviation Association (BBGA) British Helicopter Association (BHA European Business Aviation Association (EBAA) Helicopter Association International (HAI) National Aircraft Finance Association (NAFA) National Aircraft Resale Association (NARA National Business Aviation Association (NBAA)

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September 2014 – AVBUYER MAGAZINE

9

Avpro September 18/08/2014 12:45 Page 1

GLOBAL 5000 VISION 2015 DELIVERY POSITION

GLOBAL EXPRESS XRS SERIAL NUMBER 9387

GLOBAL EXPRESS SERIAL NUMBER 9010

GULFSTREAM V SERIAL NUMBER 525

GULFSTREAM G450 SERIAL NUMBER 4024

GULFSTREAM G200 SERIAL NUMBER 203

GULFSTREAM G200 SERIAL NUMBER 205

GULFSTREAM IVSP SERIAL NUMBER 1292

GULFSTREAM IV SERIAL NUMBER 1176

FALCON 2000S SERIAL NUMBER 711

900 BESTGATE ROAD z SUITE 412 z ANNAPOLIS, MARYLAND 21401 z TEL 410-573-1515

Avpro September 18/08/2014 12:46 Page 2

WWW W W W . AVPROJETS AV P R O J E T S . C COM OM

VIEW W VIDE IDEO EO OF OU UR R EX XCLUSIVE CLUSIVE LISTINGS!

FALCON F ALCON 2000 SERIAL NUMBER 105

FALCON F ALCON 77X X SERIAL NUMBER 366

FALCON 900LX F ALCON 900 LX SERIAL NUMBER 190

FALCON 900C F ALCON 900 C SERIAL NUMBER 1955

FALCON 900B F ALCON 900 B SERIAL NUMBER 3

FALCON 50EX F ALCON 50 EX SERIAL NUMBER 27 2755

FALCON F ALCON 50 SERIAL NUMBER 158

FALCON FALCON 10 SERIAL NUMBER 89

INFO@AVPROJETS.COM

EMS S

FALCON F ALCON 50 SERIAL NUMBER 1599

F FALCON ALCON 100 SERIAL NUMBER 206 206

WWW.AVPROJETS.COM

Avpro September 18/08/2014 12:46 Page 3

CHALLENGER 300 SERIAL NUMBER 20043

CHALLENGER 601-3A/ER SERIAL NUMBER 5041

HAWKER 800XP SERIAL NUMBER 258562

HAWKER 800XP SERIAL NUMBER 258404

HAWKER 800XP SERIAL NUMBER 258293

CITATION SOVEREIGN SERIAL NUMBER 278

CITATION X SERIAL NUMBER 251

CITATION X SERIAL NUMBER 72

CITATION XLS+ SERIAL NUMBER 6022

CITATION EXCEL SERIAL NUMBER 5161

900 BESTGATE ROAD z SUITE 412 z ANNAPOLIS, MARYLAND 21401 z TEL 410-573-1515

Avpro September 18/08/2014 12:46 Page 4

V ISIT ISIT

W WWW W W . AVPROJETS AV P R O J E T S . C COM OM VIIEW W VIIDEO OF OU UR R EX XCLUSIVE CLUSIVE LISTINGS!

CITATION CITATION I ULTRA ULTRA SERIAL E NUMBER 439

CITATION C ITATION V SERIAL NUMBER 234

CITATION CITATION III SERIAL NUMBER 152

CITATION CITATION CJ1 CJJ1 SERIAL NUMBER 495

C CITATION ITATION CJ2 CJ2 J SERIAL NUMBER 15

CITATION CITATION CJ4 CJJ4 SERIAL NUMBER 17

LEARJET L EAR RJET 45 SERIA ERIAL AL NUMBER UMBERS S 200 & 201

CITATION CITATION MUSTANG MUSTANG SERIAL NUMBERS UMBERS 171 & 204 2

B BEEC HJET 400 A BEECHJET 400A SER ERIAL RIAL NUMBER RK-67 RK-67

KING KING AIR AIR C90B C90B SERIAL NUMBER LJ-1453 LJJ-1453

INFO@AVPROJETS.COM

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Avpro September 18/08/2014 12:47 Page 5

AGUSTA A109E POWER SERIAL NUMBER 11145

AGUSTA A109E POWER SERIAL NUMBER 11770

AGUSTA A109E POWER SERIAL NUMBER 11831

AGUSTA A109S POWER SERIAL NUMBER 22031

AGUSTA A109S POWER SERIAL NUMBER 22137

BELL 429 SERIAL NUMBER 57090

BELL 429 SERIAL NUMBER 57056

BELL 407 SERIAL NUMBER 53127

EUROCOPTER EC135P2i SERIAL NUMBER 0691

SIKORSKY S-76C+ SERIAL NUMBER 760464

900 BESTGATE ROAD z SUITE 412 z ANNAPOLIS, MARYLAND 21401 z TEL 410-573-1515

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BUSINESS AVIATION AND THE BOARDROOM

Common Need, One Market Possibly the world’s most recognized expert on the value of Business Aviation, Jack Olcott is a former Editor and Publisher of Business & Commercial Aviation magazine and Vice President within McGraw-Hill’s Aviation Week Group. He was President of the Aviation Business National Association from 1992 through 2003, and today Jack’s network and personal knowledge of Business Aviation uniquely qualifies him to oversee Business Aviation and the Boardroom.

More information from Jack@avbuyer.com

Transportation’s universal role in economic development and quality of life.

Whether new or pre-owned, business aircraft have a unique capability to address a company’s or entrepreneur’s fundamental need to travel, observes Jack Olcott. rom the earliest days of recorded history, transportation has been a required component in the economic and social fabric of a society. The Old Testament Bible references the vital trade routes traversed by men, mules and camels between Egypt and the region we know today as Iraq. The first president of the USA, George Washington, urged his

F

congress to build roads and canals to grow the economy. President Lincoln promoted the completion of our nation’s first transcontinental railroad to unite our growing nation, and President Eisenhower championed the Federal-Aid Act of 1956, which launched the Interstate Highway System.

Rather than reduce the importance of travel in today’s fast-paced business world, cell phones and the Internet have increased the pace of commerce, thereby expanding the need for rapid transportation. Nothing replaces the benefits of meeting customers and colleagues face-to-face when introducing products and services, when finalizing a contract or when resolving conflicts.

Being at the point of action before the competition arrives also is essential. Thus the principle form of transportation for business today involves air travel by either the Scheduled Airlines or Business Aviation. Enlightened Boards establish travel policies that integrate the best of both public and private carriage by air.

COMPLEMENTARY ROLES The importance of Business Aviation as a component of transport by air is reflected in the number of company jets and turboprops in service worldwide. According to JETNET, a highly respected organization that tracks the nature of aircraft transactions and documents aircraft ownership, there are more than 34,300 turbine-powered business aircraft (excluding helicopters) operated by nearly 24,700 corporate entities or owners as of July 1, 2014. Sixty percent of those business aircraft are registered in the USA. JETNET reports that nearly 20,000 turbinepowered business aircraft are jets; the remainder are powered by turbine engines turning

16

AVBUYER MAGAZINE – September 2014

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Aircraft Index see Page 4

BG 1 Sept14_FinanceSept 19/08/2014 15:08 Page 2

What the Boardroom needs to know about Business Aviation propellers—i.e., turboprops. Boeing placed the number of airliners in worldwide service, regardless of manufacturer but not including turboprops, at nearly 21,000 at the end of 2013.

Between 2014 and 2033, the company forecast the worldwide airline fleet will double in size to reach nearly 42,200 jet airliners in service.

Bombardier anticipates that an additional 22,000 business jets will be delivered worldwide between now and 2033, down by 2,000 units from its 20-year forecast issued last year but still impressive. While that number of new business jet sales is noticeably less than the 36,770 airliners Boeing forecast will be delivered between 2014 and 2033, the sizes of the airline and business aircraft fleets are likely to be about the same in the future since nearly 42 percent of all new airline deliveries will replace older, less fuel-efficient aircraft.

Thus it is clear that Scheduled Airlines and Business Aviation will continue to serve the travel needs of companies and entrepreneurs, each offering their unique form of air transportation. The Scheduled Airlines concentrate on a few highly travelled markets between major cities, and only about 50 percent of their passengers will be traveling for business reasons. Business Aviation offers safe, efficient travel—primarily for business—to many more locations, most with little or no scheduled service. Neither form of air transportation now or in the future, will replace the other.

SOPHISTICATED OPERATORS All users of Business Aviation have a common characteristic—their need for transportation that is efficient, quick and safe. Fortunately, several avenues exist to fulfill that requirement. For the company or entrepreneur desiring ownership of aviation assets, excellent products are available from manufacturers of new aircraft and from existing owners who wish to transition into a different aircraft or possibly withdraw from a position of ownership in favor of some other means of air transportation, such as the airlines or charter.

Our nation’s transportation infrastructure provides several options to satisfy the common need for air travel.

Several decades ago Business Aviation was neither as developed as today or as well understood.

Typically companies with sufficient capital or credit allocated budgets to purchase new equipment, electing to rely on the deeper resources of OEMs rather than deal with the less mature brokerage community that existed at the time. When price was the primary consideration, potential buyers automatically looked to the pre-owned arena.

The marketplace, however, has changed significantly. More buyers now understand that business jets, typically flying less than 20 percent of the annual hours of an airliner, are designed and manufactured to the same basic FAR Part 25 requirements as airliners in scheduled service.

Advertising Enquiries see Page 9

The vast majority of today’s business aircraft are well maintained and operated by highly trained crews. Computer programs track and document maintenance procedures. Independent consultants are available to help with aircraft selection, providing expert advice regarding the suitability of a particular model to the company’s or entrepreneur’s needs, whether new or pre-owned.

Today’s purchaser of business aircraft has access to excellent new and pre-owned equipment, as well as the technical expertise to make the best selection to address travel needs. The common need for efficient, effective and safe transportation has created one broad market for Business Aviation.

Do you have any questions or opinions on the above topic?

Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 18

www.AVBUYER.com

September 2014 – AVBUYER MAGAZINE

17

BG 2 Sept14_FinanceSept 19/08/2014 15:10 Page 1

BUSINESS AVIATION AND THE BOARDROOM

Trust and Verify How often do you audit your Business Aviation Services?

Peter Agur Jr. is managing director and founder of The VanAllen Group, a business aviation consutancy with expertise in safety, aircraft acquisitions, and leader selection and development. A member of the Flight Safety Foundation’s Corporate Advisory Committee and the NBAA’s Corporate Aviation Managers Committee (emeritus), he is an NBAA Certified Aviation Manager.

Contact him via www.VanAllen.com.

“ As a result, the risk and frequency of such incidents is underexposed and, therefore, underappreciated.”

18

AVBUYER MAGAZINE – September 2014

Most Business Aviation professionals are worthy of all the trust you place in them… and a very small percentage is not, observes Pete Agur.

T

he Director of Aviation for a large, closely held company was recently indicted for embezzling $2.7 million. It is the first time in my memory that a Business Aviation professional has been publicly exposed for alleged criminal wrong doing. Like most white collar crime, the normal course of action is usually much more private. Few companies and owners want to publicly air their dirty laundry. As a result, the risk and frequency of such incidents is underexposed and, therefore, underappreciated.

The following are examples of serious breaches of law and trust of which I have personal knowledge. To avoid further embarrassment to the victims, I have not identified companies, geography or individuals. If you think you can connect the dots, don’t bother. You may be wrong and could be assuming someone is guilty of misdeeds when it is really their evil twin on the other side of the country.

EXAMPLES OF FISCAL BREACHES OF TRUST 1. The Chief Pilot for a major company tells the aircraft salesman to include a Mercedes Coupe, by serial number only, as part of the loose equipment of the company jet or the salesman won’t get the deal.

2. The owner of a small aircraft management company uses his customer’s hangar to run an illicit aircraft parts warehouse, placing the owner at risk in a wide variety of ways. U www.AVBUYER.com

continued on page 22 Aircraft Index see Page 4

Passion.

Achieving success requires experience,

Inteligently delivered.

complex challenges. Delivering success

intelligence, and creative solutions to is not only our job, it’s our passion.

BROKERAGE & ACQUISITIONS +1 303 444 6766 • JETSALES.COM

FOR SALE • NEW TO MARKET

2006 Gulfstream G150 Serial Number: 204 Asking Price: Please Call Hours: 2,518 TTAF Landings: 1,267

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• MSP Gold (Engines & APU), Gulfstream PlaneParts • Dual Collins FMS-6100 Flight Management System with WAAS-LPV Upgrade • Collins IFIS with Dual File Server Units (JeppView Paperless Cockpit Capable)

FOR SALE

2001 Gulfstream GV

• Two owners since new • E ngines enrolled on Rolls-Royce Corporate Care • 1 44 Month Inspection complied with June, 2013 at Gulfstream, Savannah

Serial Number: 642 Asking Price: $13,900,000 Hours: 10,963 TTAF Landings: 4,108

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1990 Challenger 601-3A Serial Number: 5073 Asking Price: $2,395,000 Hours: 6,788 TTAF Landings: 3,656

• Well-Established FAR Part 91 Professional Flight Department • Meticulously Maintained & Operated • Approx. 5,200 hrs until next Engine O/H • Aircell Gogo Biz® ATG-4000 Broadband Data System with Wi-Fi

Serial Number: 149 Asking Price: $7,695,000 Hours: 5,002 TTAF Landings: 2,519

• Anticipated 2014 Airworthiness & Q4 Delivery • Spec’d with over $1.3M in Options • ADS-B Out & TCAS II Version 7.1 • 9 Passenger Interior with 3 Place Divan • Enhanced Cabin Management System

Asking Price: $18,500,000 + Options + Escalators Projected Serial Number: 12

FOR SALE

FOR SALE

1995 Falcon 900B

2014 Embraer Legacy 500

• P rofessionally Maintained and Operated • Excellent Maintenance Records • B eautiful and Spacious Fifteen Passenger Cabin • Sirius Satellite Radio System

2008 Falcon 2000LX Serial Number: 147 Asking Price: $19,975,000 Hours: 2,113 TTAF Landings: 1,530

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• E xcellent Pedigree - 1 U.S. Large Corporate Owner • Engines Enrolled on ESP Gold • APU Enrolled on MSP • Delivered with a Fresh C-Check, Baseline EASy II Upgrade & New Paint

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FOR SALE

2004 King Air 350 Serial Number: FL-398 Asking Price: $2,950,000 Hours: 2,494 TTAF Landings: 1,938

DEAL PENDING

• • • • • •

One Owner Since New Excellent Pedigree Professionally Maintained & Operated Collins Pro Line 21 Cockpit & Avionics Collins DBU-5000 Data Base Unit Raisbeck Aft Body Strakes

DEAL PENDING

2008 Gulfstream G450 Serial Number: 4118 Hours: 2,308 TTAF Landings: 716

2000 Gulfstream G200 Serial Number: 28 Hours: 5,660 TTAF Landings: 3,386

• • • • •

Engines enrolled on ESP Gold APU enrolled on MSP One U.S. Owner Excellent Pedigree Dual UNS-1C+ FMS

RECENTLY COMPLETED - SOLD

• Excellent 1 U.S. Owner Pedigree • Currently Operated Part 135 • Gulfstream Maintained • Certification Foxtrot • Gulfstream Broadband Multi-Link (BBML)

RECENTLY COMPLETED - SOLD

2007 Citation CJ3 Date Completed – July 2014

RECENTLY COMPLETED - BOUGHT

FILE PHOTO

2000 Gulfstream GV

2006 Gulfstream G450

Date Completed – July 2014

Date Completed – August 2014

Mesinger Jet Sales • Brokerage & Acquisitions Read our industry blog at jetsales.com/blog • Follow us on twitter @jmesinger Watch airplane videos at jetsales.com/inventory

+1 303 444 6766 • Fax: + 1 303 444 6866 jetsales.com

BG 2 Sept14_FinanceSept 19/08/2014 15:10 Page 2

What the Boardroom needs to know about Business Aviation 3.

The Chief Pilot for a very high-net-worth individual overbills the owner for various aviation services, with which he buys a new, exotic automobile.

4. The married Director of Aviation for a high-networth individual uses, without permission, the owner’s aircraft to pick up his girlfriend in a neighboring state. The direct operating costs of the flights exceed $10,000.

5. The area sales representative for a foreign aircraft manufacturer offers consultants and aviation department members a “finder’s fee” for any sales brought his way.

EXAMPLES OF PHYSICAL BREACHES OF TRUST 1. The First Officer for a closely held company tells the executive responsible for aviation services his concerns over the Chief Pilot’s high-risk behaviors. The executive tells him to take it up with the Chief Pilot. Within a few weeks, both pilots are killed, along with several top executives, in a pilot-induced accident.

2. The Chief Pilot for a small company developed a vision problem in one eye. He told neither his employer nor the FAA of the malady. He walks away from a crash in his personal airplane caused by his impaired depth perception and hides the wreckage in his personal hangar. He then has a hard landing in the company jet.

3. A helicopter charter company operates and maintains its customers’ aircraft. The service provider has a fatal accident. The NTSB investigation finds the probable cause to be maintenance-related.

The operator continues to advertise on its web page an accident-free history and tells potential customers the NTSB got it wrong.

4. During the background check of an apparently excellent candidate for the position of Aviation Director, a newspaper article chronicling the individual’s arrest for rape is discovered. The article reported he had gotten a flight attendant drunk, and it went downhill from there. Somehow the charges were dropped.

5. An entrepreneur hires a slick-talking and underexperienced operator to fly his large personal jet.

For years the aircraft takes off from the home mountain airport too heavy to assure an engineout departure. There is an elementary school at the base of the hill at the end of the runway.

CONFIDENCE IN PERSPECTIVE These examples are only a few of the dozens of which I am aware. My friend, Jeff Baker, Ph.D. is a clinical psychologist. Jeff specializes in abnormal (criminal) behavior. He says about one-in-thirty males engages in antisocial activities. It is possible that professional aviators have a higher incidence, since one marker for these folks is “his/her dynamic confidence”.

If there is one behavioral characteristic we all want in our surgeons and pilots, it is confidence. On the other hand, if that confidence is oriented by a skewed

22

AVBUYER MAGAZINE – September 2014

moral compass, the results can be surprising and most unfortunate. In my reflection on the cases I have witnessed, many transgressors had two behavioral characteristics in common: 1. The offenders often emulated Eddy Haskell of Leave it to Beaver fame. They behaved well around adults, but their divergent true selves emerged amongst their peers.

2. They really did have an over-abundance of confidence—so much so that descriptors like arrogant, egotistical and over-confident applied in abundance.

It is highly likely your Business Aviation professionals deserve your trust and confidence. So do your accounting and finance professionals. How often do you have your company’s books audited? Who selects the auditor? Are the auditors’ findings taken seriously? Then why would you not use the same standards for your Business Aviation service providers? In other words: Trust and Verify.

Do you have any questions or opinions on the above topic?

Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 26

www.AVBUYER.com

Aircraft Index see Page 4

1 Freestream x2 aircraft July 25/06/2014 17:34 Page 1

FREESTREAM AIRCRAFT LIMITED SALES & ACQUISITIONS

Boeing BBJ/28579

Boeing BBJ/29273

Boeing BBJ/30076 Boeing BBJ S/N: 36714. Reg: VP-BFT

• Make Offer • Into Service 2009 • 18 Passenger - Andrew Winch Interior Design • Full Factory Warranties

Boeing BBJ/36714 • Very Low Hours • PATS 6 tank Configuration (5 aft, 1 fwd) • Aft state room with private lavatory and shower • Airshow Network • Five external cameras

Global XRS/9195

Gulfstream G550/5025

Gulfstream G450 2Q 2012

Gulfstream GV/512

Boeing BBJ S/N: 29273. Reg: VP-BBJ • Make Offer • Total Time: 3743 hours / Landings: 917 • One Owner Since New • One of the Lowest Time BBJ's on the Market Hawker 850XP/258812

• One of Two Longest Range BBJ's Flying • PATS 9-Tank Configuration • SFR88 Modification • 18 Passenger Interior Hawker 850XP/258812

FREESTREAM AIRCRAFT LIMITED

FREESTREAM AIRCRAFT USA LTD

FREESTREAM AIRCRAFT (BERMUDA) LIMITED

London +44 207.584.3800 sales@freestream.com

New York 201.365.6080 aircraftsales@freestream.com

Hamilton, Bermuda +441.505.1062 sales@freestreambermuda.bm

NEW YORK | LAS VEGAS | LONDON | HONG KONG | BEIJING | MEXICO | MOSCOW | BERMUDA

www.freestream.com

2 Freestream July 25/06/2014 17:35 Page 1

FREESTREAM AIRCRAFT LIMITED SALES & ACQUISITIONS 1996 Gulfstream GIVSP S/N: 1283 • Total Time: 9842 hrs • Landings: 4220 • APU on MSP • Honeywell Avionics covered through Honeywell HAPP • MSG-3 Maintenance Program with CMP

Boeing BBJ/28579

• No Damage History Boeing BBJ/29273 • Collins SAT-906 SATCOM • Secure-A-Plane • 13 Passenger Interior

2005 Falcon F2000EX EASy S/N: 056. Reg: N056BL • Total Time: 2703 • Total Landings: 2010 • APU: P-357 Type:BBJ/30076 Garrett GTCP36-150(F2M) (On MSP) Boeing

Boeing BBJ/36714

• CAMP/OCIP • ‘C’ Check, SB171 Dry Bay Mod, SB185 L/G Dampening, August 2011 • Seating: 10 passenger; 4 forward club seats

2003 Global Express S/N: 9129. Reg: N725LB

Global XRS/9195

• Total Time: 3,271.9 Gulfstream G550/5025 • Total Landings: 1520 • APU: Allied Signal RE220 Auxiliary Power Unit • LCD Displays • Batch 3 Installed, & Numerous Other Upgrades • JAR OPS 1 and Part 135 Compliant • Primarily Maintained at Bombardier – Hartford • FANS 1/A+, RNP 4 30/30, SBAS with LPV capability

GlobalGulfstream XRS S/N: 9195.

N4T G450 2QReg: 2012

Gulfstream GV/512

• US$25,950,000 • Total Time: 3401 hours / Landings: 1116 • On CAMP • Engines on Condition • Second GPS (Honeywell GPS550) • Bombardier Enhanced Vision System (BEVS) / HUD • FDR Upgrade •13 Passenger Hawker 850XP/258812

Hawker 850XP/258812

FREESTREAM AIRCRAFT LIMITED

FREESTREAM AIRCRAFT USA LTD

FREESTREAM AIRCRAFT (BERMUDA) LIMITED

London +44 207.584.3800 sales@freestream.com

New York 201.365.6080 aircraftsales@freestream.com

Hamilton, Bermuda +441.505.1062 sales@freestreambermuda.bm

NEW YORK | LAS VEGAS | LONDON | HONG KONG | BEIJING | MEXICO | MOSCOW | BERMUDA

www.freestream.com

3 Freestream September 20/08/2014 11:33 Page 1

FREESTREAM AIRCRAFT LIMITED SALES & ACQUISITIONS 2005 Gulfstream 550 S/N: 5070 • Time since new: 4’550 hrs (as per 15. July 2014) • Cycles since new: 1’544 Cyc (as per 15. July 2014) • Engines: Rolls Royce BR700-710C4-11 (G550) • APU: Honeywell RE220 (G550) • 4 Honeywell Display Units DU-1310

Boeing BBJ/28579

Boeing BBJ/29273 • EASA approved: RVSM / RNP5 / RNP10 / MNPS • Thirteen (13) passenger configuration • Only one Owner aircraft

Falcon 900EX S/N: 87. Reg: OE-IMI • Make Offer • Total Time: 4113 hours / Landings 2371 • Will deliver with Engines & APU on MSP

Boeing BBJ/30076

• Avionics on Honeywell Advanced Protection Plan

Boeing BBJ/36714

• Honeywell SSFDR & SSCVR • Satcom Collins SRT-2000 • Airshow 400/Genesis • 14 passenger w/forward crew and aft lavatories

CRJ-200ER S/N: 7508. Reg: VP-BER Global XRS/9195

• Make Offer

Gulfstream G550/5025 • Total TIme: 4036 hours / Landings 2671 • EASA Compliant • 32 Pax Interior Refurbished in 2012 • -150 APU • TCAS II Chg 7.0 • A/F Inspection c/w Feb 2013 • No Damage History

Gulfstream G450 2Q 2012 Sikorsky S-76C++

Gulfstream GV/512

S/N: 760757. Reg: B-7336 • Make Offer • Low Time • Single Pilot IFR Equipped • EGPWS • CVR • Pop-out Float

Hawker 850XP/258812

Hawker 850XP/258812

FREESTREAM AIRCRAFT LIMITED

FREESTREAM AIRCRAFT USA LTD

FREESTREAM AIRCRAFT (BERMUDA) LIMITED

London +44 207.584.3800 sales@freestream.com

New York 201.365.6080 aircraftsales@freestream.com

Hamilton, Bermuda +441.505.1062 sales@freestreambermuda.bm

NEW YORK | LAS VEGAS | LONDON | HONG KONG | BEIJING | MEXICO | MOSCOW | BERMUDA

www.freestream.com

BG 5 Sept14_FinanceSept 19/08/2014 15:12 Page 1

BUSINESS AVIATION AND THE BOARDROOM

Avoiding Misuse of the Business Aircraft: David Wyndham is co-owner and President of Conklin & de Decker where the focus of his activities is on aircraft cost and performance analyses, fleet planning, and life cycle costing for clients. Mr. Wyndham can be contacted at david@conklindd.com

The need for, and role of Board policy.

Don’t blame Business Aviation, says David Wyndham.

Executives without proper Board direction, not business aircraft, abuse shareholders.

T

he Aviation Manager and I were sitting with the CEO, CFO and Senior Vice President of Manufacturing for the purpose of developing requirements for their company’s next business aircraft. Travel was a major issue as the company dealt with expansion. For example, the Senior VP had been on the road 237 days during the prior year. The company was developing new manufacturing plants in China to go with its cur-

rent plants in North & South America and Europe. It was clear it needed a bigger, global-capable business jet.

We talked about the requirements for passenger comfort, galley, crew-rest, in-flight communications and non-stop range. The CFO sat quietly throughout this discussion. When we asked the CFO if he had anything to say, he did. “I don’t want to see us with a royal barge.”

CLEAR OBJECTIVE In ten words, the CFO stated both his financial and mission-related requirements. The new business aircraft had to be a business tool. All the requirements were to be business-related, and he had to be able to explain the “why we have this aircraft” to any Board Member or shareholder. In his eyes, getting too much aircraft, or too luxurious an aircraft, was a misuse of the shareholders’ money.

He was right. Board governance sets the tone for using all company resources efficiently.

Board direction should be documented in unambiguous policy. An aviation manager cannot set the policies for the use of the business aircraft. That’s U

continued on page 30

26

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

Aviatrade single September_Layout 1 18/08/2014 14:19 Page 1

Aviatrade July 24/06/2014 10:40 Page 1

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Aviatrade July 24/06/2014 10:40 Page 2

x

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BG 5 Sept14_FinanceSept 19/08/2014 15:13 Page 2

What the Boardroom needs to know about Business Aviation the responsibility of senior leadership. People are a company’s most valuable asset. Time is a non-renewable resource. A business aircraft should enable company personnel to make the most efficient use of their time in delivering shareholder value.

But be advised: Business aircraft can also be a source of abuse. It is the Board’s responsibility to create policy to prevent misuse.

AVOIDING ABUSE One area that is ripe for abuse, or the perception of abuse, is personal use of the business jet by the senior leadership. On June 16, 2011 the Wall Street Journal had a cover article: “Corporate Jet Set: Leisure vs.

Business” (link to: http://online.wsj.com/news/articles). That 2011 Wall Street Journal article not only documented the abuses by various public corporations, but also calculated the cost of those personal trips using data generated by Conklin & de Decker. The WSJ then compared that cost to what companies disclosed to investors. The comparison was not pretty.

In recent US presidential elections, the term “Fat Cats and Their Private Jets” was liberally used to condemn both use and abuse of the business aircraft.

Selecting an aircraft based on business needs, however, and presenting a transparent set of use policies make the public justification of the aircraft easy to explain.

Furthermore, there are several issues associated with personal use of a company aircraft. FAA regulations prevent an employee from reimbursing the company for personal use of the business aircraft out of his own funds unless the aviation department is also an FAA licensed commercial operation (i.e., holds an FAA Part 135 Operators’ Certificate).

The IRS has rules about imputed income resulting from an individual’s use of the business aircraft, and the ability of a company to depreciate the business aircraft for purposes of taxes can be in jeopardy with non-business use. The issue is multi-dimensional and complicated, and in most cases it is wise for the Board to place clear constrains on personal use of corporate assets. Under all circumstances, check with legal counsel when vetting the company’s use policy for business aircraft.

An executive compensation package can include the use of an aircraft for private transportation of the CEO and his or her family provided the cost of such transportation is included as taxable income. A better way to avoid the stigma of personal use of the business aircraft, however, is to provide the senior executive with a jet card or fractional aircraft share for personal use. In this manner, the exact value of the perk is clearly known, the business avoids the negative press, and tax depreciation is secure as the company aircraft remains 100% a business tool.

Another area to address in avoiding the reality or the appearance of abuse involves employee spouse travel. The IRS stipulates how such travel is allowed under business use, and how it is to be valued. Travel that is deemed for entertainment also requires careful consideration. Meeting your top customers in the business aircraft and taking them to an entertainment venue like a sporting event should be carefully

30

AVBUYER MAGAZINE – September 2014

addressed in the aircraft use policies and reviewed by council—such practice must be judiciously monitored.

This concept is worth repeating: There needs to be clear policy regarding how the business aircraft is to be used, who can use it and what records must be maintained to justify the business reason for each trip.

The Board must define what is considered abuse and develop a process to minimize the likelihood of such behavior occurring.

FINAL THOUGHT The problem is the abuse, not the asset (i.e., the business aircraft). Employees watching cat videos on their company PC during work hours is an abuse of a business asset. But it doesn’t make for a good news story.

The business aircraft is a high-visibility item and makes for juicy headline fodder.

No one suggests removing corporate PCs and cell phones due to personal use. It is the same for the business aircraft. The best way to assure efficient application of Business Aviation is through proper use policies.

“There needs to be clear policy regarding how the business aircraft is to be used”

Do you have any questions or opinions on the above topic?

Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 34

www.AVBUYER.com

Aircraft Index see Page 4

Eagle September 18/08/2014 14:54 Page 1

Eagle Aviation, Inc. 2861 Aviation Way, West Columbia, SC 29170 Phone: (800) 849-3245 International: (803) 822-5520 Email: sales@eagle-aviation.com or visit www.eagle-aviation.com

Citation Specialist Do you want your Citation Sold too? If so, call the experts at Eagle!

2014 CITATION M2, S/N 525-0822

2006 CITATION CJ1+, S/N 525-0620

2004 CITATION CJ2, S/N 525A-0203

2003 CITATION CJ2, S/N 525A-0192

1999 EXECUTIVE 328 JET, S/N 3121

1981 CONQUEST I, S/N 425-0109

135 Engines

1981 CONQUEST I, S/N 425-0063

1979 AERO L-39C ALBATROS, S/N 931529

After hours contact • Dennis Dabbs +1 803 822-5533 • Lee Thomas +1 803 822-5526 Matt Fullerton +1 316 722-4375 • Ralph Lacomba +1 803 822-5578

Aircraft Sales, Maintenance, Avionics, Paint & Interior, Executive Charter, 24/7 Line Service

Project1_Layout 1 26/08/2014 12:46 Page 1

Project1_Layout 1 26/08/2014 12:47 Page 1

BG5 Sept14_FinanceSept 19/08/2014 15:14 Page 1

BUSINESS AVIATION AND THE BOARDROOM

What is the same about the Difference?

Jay Mesinger is the CEO and Founder of Mesinger Jet Sales.

Jay serves on the Jet Aviation Customer and Airbus Corporate Jets Business Aviation Advisory Boards and was a Member of the Board of the National Business Aviation Association (NBAA), and the Chairman of the Associate Member Advisory Council (AMAC). Contact him via Jay@jetsales.com.

“Even as aircraft age, as sales territories expand, as regulations become more complex... the very foundational support of our community remains the same.”

34

AVBUYER MAGAZINE – September 2014

The more things change the more they stay the same…

Jay Mesinger ruminates on the nature of the market for business aircraft in the turbulent years following the financial crisis of 2008.

S

ix years have elapsed since we encountered the most impactful downturn our industry has ever experienced. Now, as we see the signs of recovery, it is interesting to explore the differences in market characteristics before the downturn, when times were great, and what exists now. What indeed are the differences, and what are the similarities? If we do not recognize both the differences as well as the similarities, we may be misguided as buyers and sellers entering this recovery.

Much has changed. Sales activity has grown in several areas of the world, resulting in changes in fleet composition.

Regulations related to avionics differ between regions. Our industry has grown as the boundaries of sales activity have expanded compared with earlier years. Yet the fundamentals have not changed.

aircraft, per se, we should be concentrating on people and their needs. The marketplace consists of people selling other people aircraft, people fixing other people’s aircraft, people piloting and managing aircraft— these activities are the cornerstones of our community.

The significant reductions in the values and other differences we all experienced during the last six years U continued on page 38

BASICS The basic foundation of our industry is exactly the same today as it was in the past. The market for aircraft transactions has always been, and will always be a people business. Even as aircraft age, as sales territories expand, as regulations become more complex and airspace becomes more congested, the very foundational support of our community remains the same.

People are the key ingredient of our community.

This fact, which is not meant to oversimplify the differences between various phases in market cycles, is great news. Rather than focusing on www.AVBUYER.com

THE WINDS OF CHANGE HAVE NOT SHIFTED THE MARKET FUNDAMENTALS

Aircraft Index see Page 4

Bombardier March_Layout 1 14/04/2014 12:54 Page 1

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O'Gara September 19/08/2014 15:10 Page 1

O'Gara September 19/08/2014 15:11 Page 2

BG5 Sept14_FinanceSept 19/08/2014 15:15 Page 2

What the Boardroom needs to know about Business Aviation

do not affect the wonderful parts of our industry.

As our community emerges from its long downturn, the demand for Business Aviation expands solidly throughout the four corners of the globe. In the 2007 time frame Africa was not as developed a market as it is today. Emerging markets are still emerging.

Areas that had started to demand business aircraft after 2004 still show signs of growth. India, China, Russia and the Middle East all continue to be interesting, not just because of their size, but more importantly because of the role that people play in those markets.

New trade associations have emerged in the Middle East and in Africa, reflecting the confidence that regional leaders have in Business Aviation and the positive momentum of the industry’s growth globally. Associations created within the regions help foster safety, promote acceptance of business aircraft and improve the flow of information about operating in these regions of the world. Like the community’s more mature associations (NBAA in the US and EBAA in Europe), these people-centric groups will help regions expand their use of Business Aviation.

PRICING AND OTHER DIFFERENCES Pricing for business aircraft as a result of the downturn presents opportunities. First-time prospects who may have been discouraged by price before the downturn now realize that the benefits of Business Aviation are within their reach. That fact is a positive.

With the advent of so many new regulatory authorities in emerging markets, however, there are distinct differences in regulations and requirements for operating in some regions.

As complex as this situation may be, business

38

AVBUYER MAGAZINE – September 2014

leaders and regulators are expanding their knowledge of Business Aviation and growing in capabilities as well. Differences that appear to be obstacles are being overcome.

Looking back and then looking forward, we see many changes that on the surface seem like differences. With greater perspective, however, we see that the people of our industry are continuing to develop the educational as well as communication tools to bridge these apparent differences and instead see them as similarities—indeed as opportunities.

The present period may be the best time in the history of our industry. Now may be an optimum time for companies that were considering Business Aviation to embrace this excellent form of transportation. Providers of Business Aviation offer many options ranging from helping firms establish a flight department to selling charter on an ad hoc basis— there are many ways for a company or entrepreneur to participate in the benefits of Business Aviation.

Remember, Business Aviation is a people business.

The community offers knowledgeable people in the areas where expertise is required. Because responsible, dedicated professionals are available, more companies throughout the globe will embrace the use of business aircraft. As we digest the ingredients of our community’s recovery from the stress of the last six years, be confident in the value of Business Aviation and the people who facilitate this excellent form of transportation. Get involved and be a positive difference.

“The present period may be the best time in the history of our industry.”

Do you have any questions or opinions on the above topic?

Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 40

www.AVBUYER.com

Aircraft Index see Page 4

Aradian September 18/08/2014 14:56 Page 1

2011 Bombardier Challenger 605

Price ex India: Make offers

Serial Number: Registration: Airframe TT: Landings:

8.33 kHz spaced radios and FM immunity EFIS/EICAS with Synoptics Lightning detection system Enhanced maps on MFD Interior 9 passenger interior in Beige leather. Forward - 4-place club with executive tables. Aft – 2-place club opposite a 4-place berthable divan in fabric. High gloss, wood veneer cabinetry. Satin Almond Gold plate accessories. Aft toilet with vanity. LH forward storage closet and RH forward galley with coffee maker, microwave oven, sink with hot and cold water and storage drawers. Sheepskin covers on crew seats. Entertainment centre includes Airshow ASXi, dual DVD/CD/MP3 player, two 21” forward and aft bulkhead monitors and individual monitors Exterior Overall White with Blue and Gold stripes

5848 VT-MKJ 595 452

Engines On GE On Point APU Honeywell GTCP 36-150CL on MSP 830 Avionics Collins Proline 21, 4-tube EFIS Com Dual Collins VHF 4000 Nav Dual Collins VIR 4000 ADF Dual Collins ADF 4000 DME Dual Collins DME 4000 Transponder Dual Collins TDR 94D FMS Dual Collins FMC 6000 GPS Dual Collins GPS 4000A

Rad Alt Dual Collins ALT 4000 ELT Artex 406 IRS Dual Honeywell Laseref V ADC Dual Collins 850E HF Dual Collins HF 9000 w/ SELCAL Radar Collins TWR 850 FDR L3 FA 2100 CVR L3 FA2100 (120 min) EGPWS Honeywell Mk VII TCAS Collins TCAS 4000 Change 7 Features RVSM and MNPS compliant Autothrottle 115V AC outlets in cockpit and cabin Iridium satellite phone system with Datalink and 2 handsets Life vests and life rafts Smoke googles, flashlights and crash axe in the cockpit

1999 Gulfstream V Airframe TT: Landings:

5050 1760

Engines Engines on Rolls Royce Corporate Care Left Right Total Hours: 4828 4967 Engine Cycles: 1626 1652 APU Honeywell RE220 with 3783 hours total time Avionics Com Triple Collins VHF-422D ADF Dual Collins ADF-462 HF Dual Collins HF-9000 Transponder Dual Collins TDR-94D FMS Triple Honeywell NZ-2000 IRS Triple Honeywell Laseref IV

EGPWS Allied Signal Mark V w/Windshear Protection Radar Honeywell Primus 880 CVR B&D Stormscope WX 1000+ Nav Dual Collins VIR-432 DME Dual Collins DME-442 Rad Alt Dual Honeywell RT-300 ELT Artex 406 GPS Dual 12-Channel TCAS Honeywell TCAS II w/Change 7 ELT Artex FDR B&D Features RVSM and MNPS compliant Global Sat-AFIS data link system Honeywell MCS 6000 6-Channel Satcom with Magnastar C2000 phone system

UK office Tel. +44 1481 233001 Fax.+44 1481 233002 steverogers@aradian.com Also in: South America, South Africa, Russia, Spain, Germany, India & UAE

External camera system Honeywell HUD 2020 Head Up Display Securaplane 450 security system Interior Fourteen passenger configuration in Light Beige leather with Gold plate accessories. Side panels and headliner in coordinating Beige. High gloss, light wood veneer cabinetry.

Forward – four-place club; Mid cabin – four-place club; Aft cabin – Two-place club opposite a four-place berthable divan.

Forward, galley with microwave and convection oven, dual coffee makers, hot and cold water and storage for crystal, china, cutlery, food, beverages and ice Exterior Overall White with Brown stripes

US office: Mesa Tel. +1 480 396 9086 Fax. +1 480 393 7008 rick@aradian.com www.aradian.com

BG 5 Sept14_FinanceSept 19/08/2014 15:17 Page 1

BUSINESS AVIATION AND THE BOARDROOM

War Risk Insurance...

Is There a Rate Increase In Your Future?

Stuart Hope is a co-owner of Hope Aviation Insurance. His career as an aviation insurance broker began in 1979, and today he is a frequent speaker/author on insurance & risk management topics. He also serves on the NBAA Tax, Insurance and Risk Management Committee. Mr. Hope can be contacted at shope@hopeaviation.com

40

AVBUYER MAGAZINE – September 2014

Recent tragedies involving airliners, several terrorist attacks at airports and the specter of global instability has the market for War Risk insurance reeling, observes Stuart Hope.

M

arch 8th of this year, Malaysia Airlines Flight MH370 disappeared with 239 fatalities. The aircraft, a Boeing 777, was insured for a hull value of $100m, 50% of which was paid by the War Risk underwriters after adjusters determined that although not conclusive, there was enough evidence the crash may have been caused by some deliberate action.

Passenger liability claims associated with MH370 are still to be settled.

In addition, there is an ancillary provision under most aircraft insurance policies that provides coverage for search and rescue expenses.

The coverage limit for accidents such as MH370

www.AVBUYER.com

normally is a specified maximum sub-limit per occurrence. Whether by mistake or negotiation, however, the sub-limit provision was left off the Malaysia Air policy, thereby exposing the airline to the entire liability limit of $2.25b. By tradition, governments do not seek recompense from airlines for search and rescue expenses, and Malaysia, Australia and China would normally share the costs of the search efforts, but now those governments may look to Malaysia Airline’s insurer for reimbursement.

June 9th, Taliban militants stormed Pakistan’s Karachi Airport, killing 27 in an alleged attempt to hijack an airliner. At least one aircraft parked in the continued on page 44 cargo area was destroyed. U

Aircraft Index see Page 4

Corporate Concepts September 19/08/2014 15:13 Page 1

Corporate Concepts International, Inc. Like-New 2003 Global Express For Sale Financing Available - Some Trades Considered

New Paint, New Refurbished Interior, Fresh 8C Insp. with Landing Gear OH, Batch 3 Upgrade, FANS-1/A & more: • This like-new Global Express will be ready in August 2014 • Fresh 8C inspection & landing gear overhaul • Batch 3 Avionics Upgrade • FANS-1/A, WAAS/LPV, SBAS - TCAS II with 7.1 • New Iridium SATCOM with WiFi • Honeywell Swift Broadband • LED Cabin Lighting

Motivated Owner - Owner Financing Available

Additional Aircraft Available for Sale or Lease, Some Trades Considered ■ Gulfstream G-550 ■ “Green” Boeing BBJ ■ McDonnell Douglas DC-8 VIP ■ Boeing Super 727-200 ■ North American T-28B ■ Boeing 737-200 VIP ■ Citation Sovereign ■ Gulfstream G-IV SP ■ Legacy 600 ■ Gulfstream G-450 ■ ERJ 145EP ■ Falcon 2000 ■ EMB 135LR ■ Falcon 900B ■ Cessna VIP Caravan ■ Eurocopter AS 355F See www.flycci.com for details and photos Dennis Blackburn +1 832 647 7581

Chris Zarnik +1 919 264 6212

Larry Wright +1 704 906 3755

Shailon Ian +55 (21) 982-010605

Fernando Garcia +52 55 54077686

Project1_Layout 1 26/08/2014 12:48 Page 1

Project1_Layout 1 26/08/2014 12:49 Page 1

BG 5 Sept14_FinanceSept 19/08/2014 15:18 Page 2

What the Boardroom needs to know about Business Aviation ANTICIPATE A RATE INCREASE IN YOUR BUDGET TO AVOID SURPRISES GOING FORWARD.

July 13th, Libya’s main airport was shelled by militia, damaging or destroying 20 aircraft. Earlier the control tower was damaged by rockets. The resulting liability for bodily injury or death claims and property damage are to be settled.

July 17th, Malaysia Airlines Flight 17, also a Boeing 777, was shot down over Ukraine killing 298.

All of the preceding losses occurred within five months of each other, and all involved claims resulting from a War Risk peril. Therefore, most of the burden of the losses falls on the War insurers.

INSURANCE REALITIES First, let’s understand the size of the market we are discussing. The War Risk market specifically provides coverage for approximately 25 war-related perils that are universally excluded under all aviation hull & liability and airport liability policies.

These perils include war, acts of foreign enemies, malicious acts, riots, political or terrorist acts, sabotage, confiscation and hijacking. The coverage is offered by the War Risk insurers in the form of a “buy back”, which deletes the exclusions from the aircraft or airport policy (all except those defined as nuclear are removed).

War Risk is quoted separately as a line item of the overall aviation insurance premium. From a War Risk coverage perspective only, the total estimated claims for the above losses are north of $600m, with premiums of $65m taken in this year by War Risk insurers to cover the cost.

Airline insurance premiums are generally negoti-

ated annually and the resulting insurance contract is set for a year. However, after the events of 9/11, War Risk underwriters inserted additional language in the War Risk coverage that allows them various review and cancellation options. Those options include: 1) The ability to review and amend the premium or geographical policy limits with seven days’ notice to the insured; 2) The ability to cancel all, or certain parts of the War Risk coverage with 48-hours’ notice; 3) The ability to cancel all War Risk coverage with seven days’ notice to the insured.

While the insurance mechanism is sound and will provide coverage for the +$600m in potential claims, with a thin premium pool exhausted in a very short period of time, it is only reasonable to predict the War Risk insurers will either exercise their rights under the policy contract language and take action now (i.e., raise rates), or wait until the annual renewal of each aviation policy.

This rate action affects all aircraft owners, not just the airlines since we are all considered a part of the same small insurance pool. As I tell my wife, rarely I have been known to be wrong. But if nothing else, at least be aware of the potential of a rate increase when budgeting flight department costs going forward.

How much? That’s anyone’s guess…

“This rate action affects all aircraft owners, not just the airlines since we are all considered a part of the same small insurance pool.”

Do you have any questions or opinions on the above topic? Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 50

COMPARE AIRCRAFT FOR SALE USING OUR

Aircraft Comparative Facility at www.AVBUYER.com

Whilst selecting from the World’s finest Business Jets, Turboprops and Turbine Helicopters for sale

44

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

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South Carolina (CAE) • 803.822.4114 Colorado (GJT) • 970.243.9192 Texas • 214.904.9800 Aircraft Sales & Acquisitions

1984 Hawker 800A

1979 Citation II

1999 Citation CJ

•

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AIRCRAFT@BELLAVIATION.COM

258008

1981 Citation II

•

550-0337

550-0047

2007 Citation CJ3

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525B-0147

525-0318

1981 Citation ISP

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501-0260

•

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1991 Learjet 31ER

•

31-033

2006 Piper Meridian

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4697251

2004 Piper Meridian

•

4697196

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1981 King Air B200

•

BB-894

1996 Pilatus PC-12/45

1978 Cessna 414A Ram IV

•

414A-0084

Jetbroker's September_Layout 1 19/08/2014 12:21 Page 1

Jetbroker's September_Layout 1 19/08/2014 12:21 Page 2

BG 6 Sept 14_FinanceSept 19/08/2014 15:21 Page 1

BUSINESS AVIATION AND THE BOARDROOM

Avoid the Flight Department Company Trap Troy Rolf manages the Minnesota office of GKG Law P.C., and concentrates his practice in the areas of business aircraft transactions and operations. He is a qualified Commercial Pilot and Advanced Ground Instructor.

Contact him at Trolf@gkglaw.com

Charging passengers (or their company) for flights requires a Part 135 certificate.

Obtaining authorization from the FAA to conduct flights for compensation and reward, even if all passengers are employees of a particular company, is sophisticated and time-consuming, notes attorney Troy Rolf. ost corporations pay particular attention to protecting shareholders and principals from risk. Thus it is understandable that Directors and corporate officers might assume that establishing a separate company to own and operate a business aircraft for the transportation of employees would be advisable. The flight department would operate independently, thereby isolating the corporation from litigation. Beware: such a scenario is loaded with landmines.

Most flight departments function as integral parts of the corporation they serve, operating as a service within the corporate structure. The Federal Aviation Administration allows such operations under the provisions of FAR Part 91, which essentially prohibits any form of compensation or reward accruing to the operator for the services rendered. The flight department must be a business unit within the structure of the corporation or private enterprise to be authorized for operations under FAR Part 91, and all costs for such transportation must be borne by the corporation (although there can exist means for allocating documented costs to specific users within the corporation).

Thus the next question is why not obtain the necessary approvals to fly for hire? The concept of establishing a flight department as a standalone company that provides transportation services to a corporation (i.e., the Flight Department company) is tempting.

Before embarking on that route, however, consider what is required to receive approval from the federal government for providing transportation services for U compensation and reward.

M

DON’T GET STUNG FROM LACK OF PLANNING

50

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

General Aviation September_Layout 1 18/08/2014 14:34 Page 1

BG 6 Sept 14_FinanceSept 19/08/2014 15:22 Page 2

W craft is deemed “small”.) Therefore, most flight departments would be exempt from the vigorous DOT regulatory process that governs air carriers using large aircraft. The applicant simply pays a nominal fee and files with the DOT an OST Form 4507 Air Taxi Operator and Commuter Air Carrier Registration.

Safety Authority, which involves the following five phases of application, is issued by the FAA. The successful completion of these steps is required to be authorized to operate under FAR Part 135.

1. Pre-Application Phase: The Pre-Application Phase begins with a meeting with the local FAA Flight Standards District Office (FSDO) to discuss the types of operations to be conducted by the applicant, and to review the application process itself. The applicant must also submit an FAA Form 8400-6 Pre-Application Statement of Intent (PASI) to the FSDO. The PASI is a fairly simple document containing only basic, general information about the applicant's anticipated operations.

Following the meeting, the FSDO will assign a Certification Project Manager (CPM) to work with the applicant throughout the certification process.

2. Formal Application Phase: The Formal Application Phase begins with the submission of a Formal Application Letter. The FSDO will require that the Formal Application Letter contain a variety of attachments, which may include, without limitation: •

•

•

“An operator must obtain two forms of certification to be a legal provider of air transportation for hire and reward.”

52

AVBUYER MAGAZINE – September 2014

FAR PART 135 Although provisions within FAR Part 91 allow reimbursement from unrelated third parties for certain expenses including fuel usage, the outright charge for transportation such as a charter fee or a ticket price is prohibited. An operator must obtain two forms of certification to be a legal provider of air transportation for hire and reward. One authorization—known as Economic Authority—is granted by the Department of Transportation (DOT) and is relatively easy to obtain. The other—known as Safety Authority—is issued by the Federal Aviation Administration, and it is a multi-task and time intensive process.

Obtaining Economic Authority is a fairly simple process for applicants who intend to conduct ondemand charter operations using small aircraft, which in the parlance of the DOT means any aircraft with 60 or fewer passenger seats. (Note: the DOT and the FAA use different definitions of what size of airwww.AVBUYER.com

•

•

•

A Schedule of Events Attachment listing all the events, items, activities and programs that must be inspected by the FAA before certification; A Management Qualification Resume Attachment listing the qualifications of the person who will exercise operational and maintenance/inspection control of the applicant's operations and aircraft; Documents of Purchase, Leases, Contracts, and/or Letters of Intent Attachments establishing that the applicant has obtained, or is in the process of obtaining, all aircraft, facilities and services necessary to conduct the intended flight operations; An Initial Compliance Statement Attachment listing all regulations under Part 135 applicable to the applicant's proposed operations, and how each regulation will be satisfied; A Company General Manuals Attachment containing instructions and information necessary to permit operations and maintenance personal to perform their duties with a high degree of safety; and An Initial Company Training Curriculum Attachment containing training curricula for the applicant flight crew members.

Thus it can be seen that preparation of the Formal Application Letter and associated attachments is a very detailed and time-consuming process.

Submission of the Formal Application Letter to the Aircraft Index see Page 4

BG 6 Sept 14_FinanceSept 19/08/2014 15:22 Page 3

What the Boardroom needs to know about Business Aviation FAA should be at least 90 days prior to the anticipated commencement of revenue operations.

After the FAA has conducted a preliminary review of the Formal Application Letter and found it reasonably complete, the applicant and the Certification Project Manager (CPM) will schedule a Formal Application Meeting at which the Formal Application Letter will be discussed and any omissions, deficiencies or open issues be resolved.

The discussions during this meeting will focus on the ability of the applicant and the FSDO to meet the schedule set forth in the Schedule of Events Attachment and on the subsequent phases of the certification process. Within a few days after the Formal Application Meeting, the CPM should formally accept the Formal Application Letter. If not accepted, the FAA should provide a written explanation of the reasons why it was not accepted.

MORE REQUIRED: 3. Document Compliance Phase: During this phase the Certification Project Manager will conduct a thorough review of all documents submitted to the FAA and will work with the applicant to correct any deficiencies.

4. Demonstration and Inspection Phase: This Phase will likely begin prior to completion of the Document Compliance Phase as these aspects of the vetting process generally tend to overlap. The applicant will be required to demonstrate its ability to comply with the applicable regulations and to conduct operations in a safe and efficient manner.

The applicant will be required to operate as an ondemand charter air carrier for some period of time, which will include a number of actual flights, albeit without revenue passengers. The amount of time and number of flights will be dictated at least in part by the level of experience of the applicant’s personnel.

The costs associated with operating these non-revenue flights can be significant.

5. Certification Phase: During the Certification Phase, the CPM will prepare and finalize the applicant's Air Carrier Certificate and Operations Specifications.

DELIBERATE AND POTENTIALLY COSTLY PROCESS The entire process to obtain an FAA Part 135 certification typically takes at least six months to complete, although a year or longer is not uncommon.

Timing also depends upon current workload of the FAA’s local Flight Standards District Office (FSDO).

Furthermore, the FSDO will likely require that the bulk of the work be completed personally by the person or persons who will actually manage the applicant's day-to-day flight operations and aircraft. This requirement emphasizes a key purpose of the certification process, which is to assure the FAA that such person or persons has/have the requisite knowledge of the applicant's operations and the applicable regulations, documents, manuAdvertising Enquiries see Page 9

als, etc., to ensure that the applicant's flight operations are conducted in a safe and efficient manner.

As a result of this requirement, an applicant cannot simply hire an attorney or a consultant to obtain a certificate on behalf of the applicant. An experienced aviation attorney may, however, assist in the endeavor and expedite the process by guiding an applicant through the process and providing assistance with document preparation.

This review provides only an introduction to the process of obtaining Economic and Safety Authority to operate under Part 135. A company considering the formation of flight department that can fly for compensation and reward must appreciate the magnitude of the task.

Do you have any questions or opinions on the above topic?

Get them answered/published in AvBuyer Magazine. Email feedback to: Jack@avbuyer.com Business Aviation and the Boardroom continues on Page 54

www.AVBUYER.com

“The entire process to obtain an FAA Part 135 certification typically takes at least six months to complete...”

September 2014 – AVBUYER MAGAZINE

53

BG 8 Sept14_FinanceSept 19/08/2014 17:29 Page 1

BUSINESS AVIATION AND THE BOARDROOM

The Large Cabin Choice There are occasions when the mission dictates an aircraft of larger capacity. This month our value study focuses on our definition of Large Cabin business jets. he average Large Cabin and Ultra-LongRange airplanes share more in common than they differ, with similar cabin sizes and comparable cruise speeds ranging roughly between 450 and 500 ktas. 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 pounds and 100,000 pounds.

Large Cabin jets have much in their favor. Seatsfull range capabilities typically go up to, and into the 6,000-nautical mile range, making these effective non-stop continent and ocean-crossing machines.

The fewer the stops, the shorter the overall trip time!

One disadvantage the Large Cabin jets have over their smaller Light 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 transoceanic traveller, the

T

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 for this category of jet typically will 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 standup cabin comfort, while seating capacity (depending on configuration) of eight to eighteen is typical for this category.

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 essentially, for the company with the need and budget, the Large Cabin business jet will rarely, if ever, prove too small - and will 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 1995 through Summer 2014. Values reported are in US$ millions. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Bombardier Challenger 300 values reported in the Summer 2014 edition of the Bluebook show $15.5m US$ for a 2010 model, $18.0m US$ 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 includ e d 38 aircraft m o d e ls in the fo llo w ing Large Cab in ave rage p rice guid e , ho w e ve r, fo r ad d itio nal assistance and inte re st, Co nk lin & d e De ck e r’s Pe rfo rm ance and Sp e cificatio ns d ata fo r the se Large Cab in m o d e ls can b e re fe rre d to , b e ginning o n p age 76 o f this issue .

U

54

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

THE WORLD’S FIRST and only STREET LEVEL CORPORATE AVIATION SHOWROOM exclusively presents for sale:

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– In Service June 2002 – True VVIP Configuration – Low Density Seating – Five Individual Cabin Areas – Aft Master Stateroom with En-Suite – 8 PATS Auxiliary Fuel Tanks – 6,000 NM Range

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Retail Price Guide Sept14_RPG 19/08/2014 15:27 Page 1

BUSINESS AVIATION AND THE BOARDROOM

LARGE CABIN JETS AVERAGE RETAIL PRICE GUIDE YEAR OF MANUFACTURE $ MODEL

2014 US$M

BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 605

31.0

2013 US$M

2012 US$M

2011 US$M

2010 US$M

29.0

21.0

19.0

25.0

21.5

19.0

SUMMER 2014

2009 US$M

2008 US$M

2007 US$M

2006 US$M

18.0

17.0

16.0

15.0

14.0

17.5

16.5

15.5

14.5

BOMBARDIER CHALLENGER 604

2005 US$M

12.0

11.0

10.0

BOMBARDIER CHALLENGER 601-3R BOMBARDIER CHALLENGER 300

24.9

20.6

18.0

BOMBARDIER GLOBAL 6000

62.0

56.0

49.0

BOMBARDIER GLOBAL 5000

50.2

41.0

BOMBARDIER GLOBAL EXPRESS XRS

17.0

15.5

14.5

13.5

12.5

11.5

11.0

36.0

32.0

30.0

29.0

27.0

24.0

22.0

20.0

44.5

39.5

37.5

35.5

33.5

30.5

28.5

27.0

BOMBARDIER GLOBAL EXPRESS

24.0

DASSAULT FALCON 7X

52.8

49.0

DASSAULT FALCON 2000S

27.7

27.0

44.0

DASSAULT FALCON 2000LXS

32.9

31.5

DASSAULT FALCON 2000LX

31.5

26.5

41.0

23.5

DASSAULT FALCON 2000DX EASY

37.0

35.0

33.0

31.0

22.5

20.0

19.0

17.7

17.5

15.5

14.5

19.5

18.5

DASSAULT FALCON 2000EX EASY

17.0

15.8

15.2

11.3

10.8

10.3

DASSAULT FALCON 2000EX DASSAULT FALCON 2000 DASSAULT FALCON 900LX

42.2

38.0

34.0

32.0

DASSAULT FALCON 900EX EASY

30.0 28.0

26.5

24.0

23.0

22.0

21.0

21.0

20.0

19.0

18.0

17.0

16.0

DASSAULT FALCON 900EX DASSAULT FALCON 900DX DASSAULT FALCON 900C

15.0

DASSAULT FALCON 900B EMBRAER LINEAGE 1000E

53.0

EMBRAER LINEAGE 1000

47.0

40.0

39.0

38.0

EMBRAER LEGACY 650-135BJ

31.6

28.0

23.0

22.0

20.0

EMBRAER LEGACY 600-135BJ

26.0

23.0

19.0

18.0

17.0

37.0

14.0

12.0

11.0

EMBRAER LEGACY 135BJ

10.0

9.5

GULFSTREAM G650

71.0

70.0

68.0

GULFSTREAM G550

60.0

53.0

47.0

43.0

41.0

39.0

37.0

35.0

33.0

32.0

39.0

37.0

35.0

32.0

31.0

28.0

25.0

24.0

33.0

28.0

26.0

25.0

24.0

21.0

19.0

18.0

26.0

23.0

21.0

20.0

19.0

16.0

14.0

13.0

GULFSTREAM G500 GULFSTREAM G450

42.2

38.0

GULFSTREAM G400 GULFSTREAM G350 GULFSTREAM G300 GULFSTREAM G280

24.5

24.0

22.0

GULFSTREAM GV GULFSTREAM G1V-SP AIRCRAFT BLUEBOOK DATA - CARL JANSSENS, EDITOR. EMAIL: CARL@JETAPPRAISALS.COM

56

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

Retail Price Guide Sept14_RPG 19/08/2014 15:28 Page 2

What the Boardroom needs to know about Business Aviation

What your money buys today 2004 US$M

2003 US$M

2002 US$M

2001 US$M

2000 US$M

1999 US$M

1998 US$M

1997 US$M

1996 US$M

1995 US$M

YEAR OF MANUFACTURE $ MODEL BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 605

9.1

8.1

7.4

6.7

6.4

5.9

5.7

5.4

5.0 3.8

10.5

BOMBARDIER CHALLENGER 604 3.7

10.25

BOMBARDIER CHALLENGER 601-3R BOMBARDIER CHALLENGER 300 BOMBARDIER GLOBAL 6000 BOMBARDIER GLOBAL 5000 BOMBARDIER GLOBAL EXPRESS XRS

21.0

19.5

18.5

17.0

16.5

16.0

BOMBARDIER GLOBAL EXPRESS DASSAULT FALCON 7X DASSAULT FALCON 2000S DASSAULT FALCON 2000LXS DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASY

14.3

DASSAULT FALCON 2000EX EASY

12.9

11.9

10.0

9.0

20.0

19.0

DASSAULT FALCON 2000EX 8.5

8.2

7.5

7.0

6.5

6.2

5.8

5.4

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

16.250

15.5

14.750

14.0

13.250

12.5

13.5

13.0

12.250

11.5

11.0

10.0

12.0

11.0

10.5

11.750

11.0

11.0

DASSAULT FALCON 900EX DASSAULT FALCON 900DX

14.0

DASSAULT FALCON 900C 10.0

9.5

9.0

DASSAULT FALCON 900B EMBRAER LINEAGE 1000E EMBRAER LINEAGE 1000 EMBRAER LEGACY 650-135BJ EMBRAER LEGACY 600-135BJ

9.0

8.5

8.0

EMBRAER LEGACY 135BJ

30.0

29.0

GULFSTREAM G550

23.0

22.0

GULFSTREAM G500

GULFSTREAM G650

17.0 15.0

GULFSTREAM G450 14.0

GULFSTREAM G400

10.0

GULFSTREAM G300

12.0 11.0

GULFSTREAM G350

GULFSTREAM G280 22.0

20.0

18.5

17.5

16.5

15.5

15.0

14.5

11.5

10.5

9.9

9.0

8.5

8.0

7.5

7.0

GULFSTREAM GV GULFSTREAM G1V SP

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September 2014 – AVBUYER MAGAZINE

57

Donath August_Layout 1 21/07/2014 15:07 Page 1

2001 Falcon 900C SN 191 3100 hours with recent major inspections.

This 900C factors nicely in your value equation.

If you’re looking for the newest, lowest time Falcon 900 that also meets your capital budget, the right answer may very well be the Falcon 900C. Pairing the international range and large cabin size of a 900B with the 900EX Primus 2000 cockpit, the Falcon 900C presents a true value opportunity.

2001 SN 191 delivers this value without compromise. It is an exceptional aircraft with one corporate owner and just 3100 hours.

Plus, SN 191 recently completed its 2C (6 year) inspection and landing gear overhaul! It has no damage history and is covered under MSP engine as well as avionics maintenance programs.

This aircraft offers a spacious, open cabin with seating for 12 passengers, including 4 club seats forward and aft, with a 4-place conference group in the middle. SN 191 is well appointed and is in exceptional condition.

To learn how Falcon 900C SN 191 can factor into your value equation, call Jim Donath at Donath Aircraft Services.

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GIV SN 1049 delivers all of the above. It’s a low-time aircraft with excellent pedigree, and has been upgraded to the highest level of any GIV on the market. This includes: » ASC 190 (Gross Weight Modification) » Gulfstream PlaneDeck with DU-885 Display System » Triple FMS with NZ 2000 6.1 Software » Triple CDU 820 » TCAS Version 7.1 » LPV - WAAS » ADS B-Out » -150 APU enrolled on MSP Gold » High Speed Data and WiFi » 2011 Gulfstream Paint And best of all, SN 1049 has been priced to sell. Advance your aircraft acquisition with this outstanding GIV. Contact Jim Donath at Donath Aircraft Services.

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Flight Dept Mng1 Sepdt final_Finance 19/08/2014 15:42 Page 1

FLIGHT DEPARTMENT MANAGEMENT SKILLS

HOW’S YOUR COMPETENCE ?

High-Trust Leadership: Leaders establish patterns of behavior that motivate others to follow.

by George Dom his is the third article in a fourpart series addressing trust in situations requiring effective leadership. In July we covered why trust matters, and in August we summarized key ingredients to earn trust—‘the 5C’s of Trustworthiness’: Character, Commitment, Competence,

T

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AVBUYER MAGAZINE – September 2014

Connection and Communication, with a focus on Character and Commitment. We established that for each element of trust there was a question my teams were asking about me in my capacity of Flight Leader of the Blue Angels in order to make judgments about my trustworthiness as we flew our precision demonstrations. Your team, your boss, your www.AVBUYER.com

vendors and your professional colleagues are undoubtedly asking the same questions as you manage your flight department.

This month we will address Competence and Connection, including training tips to improve your trustworthiness, the effectiveness of your leadership and the efficacy of your professional reputation.

Aircraft Index see Page 4

Flight Dept Mng1 Sepdt final_Finance 19/08/2014 15:46 Page 2

COMPETENCE: ARE YOU SKILLED AND RELEVANT? Resumes provide an applicant’s qualifications and list of previous jobs, all important factors in assessing someone’s suitability for holding a position requiring trustworthiness. In building a high performance team, however, vitally important characteristics such as qualifications and experience are not as significant as character and commitment, followed closely by the individual’s competence.

Without competence, qualifications and experience are not sufficient. And without character and commitment, competence doesn’t matter. Someone who lacks an honorable character or is not committed to the team’s success becomes a cancer to team cohesion and performance.

Conversely, if new hires “walk their talk” and are fully committed and engaged, you can teach them what they need to know to be competent.

Every day before our Blue Angel preflight briefing, I would look around the table and see the same questions in all of my wingmen’s eyes: Are you good enough to be our leader today? Are you better than you were yesterday, but not as good as you will be tomorrow? If we were going to achieve and sustain the highest levels of excellence, we all needed to continuously improve our skills in every aspect of our roles on the team.

Unfortunately, too many leaders reach a level of success and then stop learning, stop growing and lose their relevance as the world changes around them. Such stagnation says something about their character and commitment, and leads to a loss of competence. Think about how different your job is today compared with a few years ago. Will it stay the same in the years ahead?

How many leaders do you know who claim to have 15 years of experience, but really have only one year of experience repeated 15 times?

Training tip: Identify one key skill that would significantly improve your competence. Make it a priority for the next month. Repeat.

understood what I was asking them to do.

If there had been any doubt, there would have been hesitancy, separation and disengagement. Hopefully, such connectivity is not dissimilar for you and your team.

You’ll notice the question wasn’t, “Do I believe I understand them?” What mattered was “What do THEY think?” When teammates believe they are understood by their leader, where the leader intuits their challenges, their sacrifices, their ideas and their recommendations, they will follow enthusiastically. People don’t need to get their way all the time, but they do need to feel heard and understood.

Most leaders miss this concept of connectivity, a key component of leadership, because they are unable - or unwilling - to see the world through their teammates’ eyes. Leaders can become isolated, get defensive and act too busy to pay attention. You may not agree with your teammates’ point of view, but they need to believe that you can see the situation as they see it.

The importance of connection also applies in your relationship with your boss. Does he or she feel understood? How do you know?

Training tip: Take a walk with one of your teammates or your boss this week and ask a few open-ended questions to gain greater understanding of his or her

challenges, ideas and concerns. Do NOT defend, deny or seek to persuade him or her to your point of view. Seek only to show you understand theirs.

Next month we will conclude this FourPart series on high-trust leadership with the final C: ‘Communication’. Remember, Business Aviation is in the trust business.

❯ Captain George Dom, USN(Ret) is president and founder of NFS Advisors, an aviation consultancy that exclusively represents buyers of business jets and aviation services. During his military career, he served as Commander, Carrier Air Wing Seven; flight leader of the U.S. Navy Flight Demonstration Squadron—the Blue Angels - and instructor pilot at the Navy Fighter Weapons School (“Topgun”). A nationally-known speaker on leadership and teamwork, including NBAA Leadership, International Operators, and Flight Attendants/Flight Engineers conferences, he can be reached at gdom@NFSjets.com or www.NFSjets.com. ❯ Do you have any questions or opinions on the above topic? Get them answered/published in AvBuyer Magazine. Email feedback to Jack@avbuyer.com ■

CONNECTION: DO THEY BELIEVE YOU UNDERSTAND THEM? Doing formation aerobatics, my wingmen and I flew only 24-36 inches apart at 300400mph, and at very low altitude. As the leader in the #1 jet, I could change the trajectory of maneuvers as necessary to avoid clouds, buildings and ridgelines, simply by changing the inflection of my voice on the radio. It sounds incredible, but it was possible because my wingmen knew I Advertising Enquiries see Page 9

ARE YOU CONNECTED TO YOUR TEAM?

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September 2014 – AVBUYER MAGAZINE

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Flight Dept Mng2 Sept final_Finance 19/08/2014 15:49 Page 1

FLIGHT DEPARTMENT MANAGEMENT SKILLS

Four Steps to Implement a Budget: Certification basics for Business Aviation managers...

by Walter Kraujalis he aviation professional must understand and be able to implement an operating budget for his or her flight department through analysis of forecasted needs, assessment of actual expenses and management of possible revenues. The primary steps to budgeting are preparing the annual budget, monitoring expenses against that budget to identify deviations and reporting results to relevant parties within the corporation.

The purpose of budgeting, monitoring, and reporting is to manage the cash necessary for operations. Money has to be available to pay the bills. It is embarrassing and disruptive to be unable to pay a bill or to scramble for a bridge loan. And no one likes surprises.

T

STEP 1 – DETERMINE FORECASTED NEEDS The size of the budget will depend primarily upon the expected use of the aircraft for the

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AVBUYER MAGAZINE – September 2014

coming year. The expected use can be determined by examining the current trend of where and how often you fly and collecting information on whether that trend will continue. Combine those data with any possible new travel patterns, which can be broken down into the following steps: • Take all of your flight logs for the past year and collate a list of the city-pairs flown (i.e. departure city and destination city).

• Document the specific purpose for that trip. Be as detailed as possible. For example, note if the flight was to transport the CEO to New York City to meet with bankers or to fly the National Sales Manager on a store tour.

• Identify flights that were technical in nature, such as repositioning, stopping for fuel or customs, conducting a maintenance check flight, pilot training, or similar functional purposes. Estimate the likelihood of these flights recurring in the coming year. www.AVBUYER.com

•

•

•

•

•

List the principal passenger or person responsible for authorizing each city-pair flown.

Visit with each of those principals and ask their opinion as to whether they are likely to fly to those same destinations during the coming year.

Ask principals if they anticipate working on any new projects that will require new travel compared to last year.

Recognize that you may be unable to obtain this level of detail. If the information is considered confidential or sensitive, you may be able to list only the destinations, principal passenger, and top management’s assessment of how often these destinations are likely to be visited in the coming year.

Revise your list of city-pairs for passengers for the coming budgeting year.

Calculate the flight times to complete all the trips. Anticipate the effects of weather and traffic flow. For example, flying to Chicago in January might have winter ❯ continued on page 66 Aircraft Index see Page 4

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Project1_Layout 1 26/08/2014 12:52 Page 1

Project1_Layout 1 26/08/2014 12:52 Page 1

Flight Dept Mng2 Sept final_Finance 19/08/2014 15:49 Page 2

FLIGHT DEPARTMENT MANAGEMENT SKILLS

• •

weather delays and take more flight time.

Add your anticipated technical flight needs to support these trips.

Use these calculations to forecast your department’s level of utilization.

STEP 2 – DETERMINE EXPENSES The forecasted level of utilization is the keystone of calculating the expenses for the coming budget year. Multiply the number of expected flight hours by the historical cost of operation. This can be broken down into the following steps: • Gather cost information such as DOCs and flight-related expenses for the past year. Add fixed costs—those that had to be paid whether the aircraft flew or not – such as salaries, hangar rent, training and insurance.

• Calculate the expected cost of all items for the coming year based upon your forecasted level of utilization.

• Adjust for the difference between your historical costs information and your estimate of future costs (which may require additional research). Using trade publications and insight from vendors, consider the uncertainty of fuel costs. No one can accurately predict the future, but make your best calculations and be conservative.

• Handle fixed costs somewhat differently, assuming your current infrastructure can accommodate the forecasted level of utilization. For example, hangar rent for next year is probably set by contract.

Another example is salaries. You need to determine the size of raises and add that figure to fixed costs.

• Consider the impact of utilization on fixed cost items such as personnel and equipment.

STEP 3 – DETERMINE REVENUES (IF ANY) It is rare that a corporate flight department budgets for revenues. But there can be two possible sources: a cost recovery plan, commonly referred to as “chargebacks”, and revenue generated from chartering out the aircraft.

Chargebacks are a means by which a company allocates the costs of operation back to the department or division that uses the aircraft. There are various methods for calculating an appropriate chargeback rate.

Chargebacks may be listed as revenue on the flight department budget. However, it is not unusual that they are not listed as revenue, but merely used to distribute flight department costs to other departmental budgets.

A company may make their aircraft available for charter, which involves the compli-

66

AVBUYER MAGAZINE – September 2014

cated process of having the flight department obtain their own air carrier certificate. More commonly, flight departments partner with an existing charter company to qualify their aircraft for generating revenue. Charter flights may be revenue generators or, similar to chargebacks, may be considered as items of cost recovery.

•

STEP 4 – MONITOR AND REPORT DEVIATIONS

Report your findings on the cost differences and recommendations for the remainder of the budget to your management so that adjustments can be made. Remember, it takes money for an aircraft to fly, and no one likes surprises.

You must monitor how actual costs are incurred in relationship to the budget that upper management approves. Track all bills and invoices received by posting costs into the category listed in your budget. Your company will likely provide you with the accounting software tools that handle such processes.

Your company’s accounting department should provide you monthly summaries of actual costs compared to your budget. If for some reason they don’t provide such reports, it is highly recommended that you do this comparison yourself, perhaps by employing simple accounting software such as QuickBooks.

Look for differences in the actual costs you are experiencing compared to your anticipated costs. Determine the reason for any differences. Then ask these questions: • Was this a one-time difference unlikely to happen again? Why are you certain it will not reoccur? www.AVBUYER.com

•

•

Should you adjust the remainder of the budget to include this new cost?

Is this difference a timing related issue (i.e., the cost was expected later in the year but has occurred now)?

Does this difference reveal a miscalculation or a missing item in the original budget?

❯ Walter Kraujalis is president of AeronomX LLC, an aviation consulting firm providing advice in business jet and helicopter acquisitions, travel analysis, ownership structure, aircraft management, aircraft appraisals, flight department start-ups, operational safety audits, safety engineering, loss control procedures, and IS-BAO audits. He is also an IBAC Approved IS-BAO Auditor and president, National Jet Sales, a service of National Aero LLC. Do you have any questions or opinions on the above topic? Get them answered/published in AvBuyer Magazine. Email feedback to Jack@avbuyer.com ■ Aircraft Index see Page 4

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AirCompAnalysisSEPT14final_ACAn 19/08/2014 12:04 Page 1

AIRCRAFT COMPARATIVE ANALYSIS CESSNA CITATION CJ3

HAWKER 400XP

LEARJET 31A

Cessna Citation CJ3

by Michael Chase n this month’s Aircraft Comparative Analysis, we provide information on a selection of pre-owned business jets in the $1.6m-4.0m range for the purpose of valuing the preowned Cessna Citation CJ3.

We’ll consider the productivity parameters - payload/range, speed and cabin size, and cover current and future market values.

The field in this study also includes the Hawker 400XP and the Bombardier Learjet 31A.

with eight seats and an enclosed lavatory.

With an exceptional interior, highly sophisticated flight deck, powerful engines and longer wings than other aircraft in its class, the CJ3 is permitted to operate with a single pilot (under US registry only). It received full FAA type certification in October 2004.

Today, there are 411 CJ3s in operation, the highest total number of units built for any specific CJ model. A total 1,329 CJ-series aircraft are currently in operation, as shown in Table A (right).

CURRENT HISTORY

Chart A represents the in-operation aircraft Market Share (as of July 2014) for the Cessna CJ3 (48%), Hawker Beechcraft 400XP (28%), and Bombardier Learjet 31A (24%). There are currently 859 total aircraft in operation for these three models.

I

The CitationJet is a low-wing aircraft with a T-tail pressurized cabin, and powered by two turbofan engines pylon-mounted on the rear fuselage. The Model 525 CitationJet was the basis for an entire subsequent family of jets encompassing the CJ1, CJ1+, CJ2, CJ2+, CJ3 and CJ4 models.

The CJ3 light jet is powered by two Williams International FJ44-3A turbofans, offering a remarkable power-to-weight ratio (up to 2,820 pounds of take-off thrust per engine). The aircraft is typically configured

70

AVBUYER MAGAZINE – September 2014

MARKET SHARE

PAYLOAD AND RANGE The data contained in Table B (overleaf) is sourced from Conklin & de Decker and also published in the B&CA May 2014 issue. As we have mentioned in past articles, a potential operator should focus on payload ❯ www.AVBUYER.com

TABLE A IN OPERATION (BY MODEL) M o d el Citation Citation Citation Citation Citation Citation TOTAL

N u m b er 197 238 411 102 225 156 1 ,3 2 9

CJ1 CJ2 CJ3 CJ1+ CJ2+ CJ4

SOURCE: JETNET; IN-OPERATION JULY 2014

CHART A -

MARKET SHARE

TOTAL 859 AIRCRAFT - JULY 2014 Cessna CJ3 (2004 - 2014) Hawker 400XP (2003 - 2010) Bombardier Learjet 31A (1991 - 2003)

Learjet 31A 24%

CJ3 48%

H400XP 28%

SOURCE: JETNET

Aircraft Index see Page 4

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AirCompAnalysisSEPT14final_ACAn 19/08/2014 12:05 Page 2

AIRCRAFT COMPARATIVE ANALYSIS CESSNA CITATION CJ3

TABLE B - PAYLOAD & RANGE Model

MTOW (lb)

Max Fuel (lb)

Fuel Usage (GPH)

Max Payload (lb)

Avail Payload w/Max Fuel (lb)

Max Fuel Range (nm)

Max P/L w/Avail fuel IFR Range (nm)

Cessna CJ3

13,870

4,710

155

1,925

775

1,891

1,172

Hawker 400XP

16,300

4,912

200

2,015

603

1,519

750

Bombardier Learjet 31A

17,200

4,124

182

2,297

1,873

1,337

900

SOURCE: DATA COURTESY OF CONKLIN & DE DECKER; JETNET; B&CA MAY 2014 PLANNING HANDBOOK & AUG. 2014 OPERATIONS PLANNING GUIDE

capability as a key factor.

The Citation CJ3 ‘Available Payload with Maximum Fuel’ at 775 pounds is greater than that offered by the Hawker Beechcraft 400XP (603 lbs), but significantly less than the Bombardier Learjet 31A (1,873 lbs). However, according to Aircraft Cost Calculator, also represented, the CJ3 burns just 155 gallons of fuel per hour (GPH), which is 22.5% less than the Hawker 400XP (200GPH), and 15% less than the Learjet 31A (182GPH).

CABIN VOLUME

CHART B - CABIN CROSS-SECTIONS

SOURCE: UPCAST JETBOOK

RANGE COMPARISON

CHART C - RANGE COMPARISON Hawker 400XP Cessna Citation CJ3 Bombardier Learjet 31A

According to Conklin & de Decker, the cabin volume of the CJ3 is 286 cubic feet. This is 1.8% greater than the Learjet 31A (281 cubic feet) and 6.2% less than the Hawker 400XP (305 cubic feet). The CJ3 cabin length, at 15.67 feet, and the Hawker 400XP (15.5 feet) are nearly the same, and both are longer than the Learjet 31A (12.9 feet) by about 2.7 feet.

As represented in Chart B (illustrated by UPCAST JETBOOK), the CJ3 and Hawker 400XP height are also greater than the Learjet 31A, however, the cabin width for the CJ3 is less than the other two.

1150.5 Nm 1339.6 Nm 1180.7 Nm

Chart C shows the ranges from Wichita, Kansas, for the business jets in our field of study, as sourced from Aircraft Cost Calculator (ACC). The CJ3 shows more range coverage than either the Hawker 400XP or the Learjet 31A. Note: For jets and turboprops, ‘Seats-Full Range’ represents the maximum IFR range of the aircraft at Long-Range Cruise with all passenger seats occupied. ACC assumes NBAA IFR fuel reserve calculation for a 200nm alternate. The lines depicted do not include winds aloft or any other weather-related obstacles.

POWERPLANT DETAILS As mentioned above, each of the CJ3 Williams FJ44-3A engines offer a thrust rating of 2,820 pounds. The Hawker 400XP is

72

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

AirCompAnalysisSEPT14final_ACAn 19/08/2014 12:05 Page 3

AIRCRAFT COMPARATIVE ANALYSIS CESSNA CITATION CJ3 powered by a pair of Pratt & Whitney JT15D-5R engines, each with a thrust rating of 2,965 pounds, while the Learjet 31A is powered by two Honeywell TFE731-2 powerplants, each offering 3,500 lbst.

CHART D - COST PER MILE*

$3.84

Bombardier Learjet 31A

COST PER MILE COMPARISONS Using data published in the May 2014 B&CA Planning and Purchasing Handbook and the August 2014 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet A fuel cost in the August 2014 edition was $6.18 per gallon at press time, so for the sake of comparison we’ll chart the numbers as published.

Note: Fuel price used from this source does not represent an average price for the year.

Chart D (top, right) details ‘Cost per Mile’, and compares the CJ3 to the Hawker 400XP and Learjet 31A factoring direct costs, and with each aircraft flying a 1,000nm mission with 800 pounds (four passengers) payload. The CJ3 cost at $3.23 per nautical mile is lower compared to both the Hawker 400XP at $3.49 and the Learjet 31A at $3.84 on a cost per mile basis.

$4.00

US $ per nautical mile • 1,000NM MISSION, 800 LBS PAYLOAD

CHART E - VARIABLE COST $1,860

Hawker 400XP

$1,843

Bombardier Learjet 31A

$1,354

Cessna CJ3

$1,000

$0

$2,000

US $ per hour

TABLE C - COMPARISON TABLE Long Range Speed (kts)

Cabin Volume (cu ft.)

Max Payload w/avail fuel range(nm)

Vref (Used) Price $ M

In Operation

% For Sale

Sold*

Cessna CJ3

348

286

1,172

$4.0m ‘04

411

5.6%

76

Hawker 400XP

410

305

750

$1.6m ‘04

242

9.1%

51

Bombardier Learjet 31A

417

281

900

$1.7m ‘02

206

18.9%

28

AIRCRAFT COMPARISON TABLE

Advertising Enquiries see Page 9

$3.50

$3.00

$2.50

Model

Table C (right) includes the average pre-owned retail price from Vref for each aircraft. The last two columns of information show the number of each aircraft in-operation, and the percentage ‘For Sale’ (per JETNET).

It is interesting to note that of the 411 CJ3s in operation today (54% new and 46% pre-owned), ❯ only 5.6% of the fleet is ‘For

$3.23

Cessna CJ3

TOTAL VARIABLE COST COMPARISONS The ‘Total Variable Cost’, illustrated in Chart E (right), is defined as the cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The total variable cost for the CJ3 at $1,354 is considerably less than the Learjet 31A ($1,843) and the Hawker 400XP ($1,860).

$3.49

Hawker 400XP

SOURCE: DATA COURTESY OF CONKLIN & DE DECKER; JETNET; OPERATIONS PLANNING GUIDE B&CA *Full Sales Transactions past 12 months - JETNET STAR reports

www.AVBUYER.com

September 2014 – AVBUYER MAGAZINE

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AirCompAnalysisSEPT14final_ACAn 19/08/2014 15:38 Page 4

AIRCRAFT COMPARATIVE ANALYSIS CESSNA CITATION CJ3

TABLE D - PART 91 & 135 MACRS SCHEDULE Following is the MACRS schedule for PART 91: Year 1 2 3 4 5 6

Following is the MACRS schedule for PART 135:

Deduction 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%

Year 1 2 3 4 5 6 7 8

Deduction 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46%

SOURCE: NBAA

TABLE E - MACRS DEPRECIATION SCHEDULE

SOURCE: ACC - www.aircraftcostcalculator.com

Sale’ (traditionally representing a seller’s market).

Considering the whollyowned CJ3 aircraft fleet only, according to JETNET North America is home to the majority with 74%, followed by Europe with 17%. Currently, 13 CJ3 aircraft are in shared ownership, and there are two in fractional ownership arrangements.

DEPRECIATION SCHEDULE FOR BUSINESS AIRCRAFT Aircraft that are used in a trade, business, or for the production of income that are primarily

74

AVBUYER MAGAZINE – September 2014

operated domestically, and not used in common or contract carriage (e.g. Part 91) may be depreciated over a five-year Modified Accelerated Cost Recovery System (MACRS) schedule.

Aircraft used in common or contract carriage (e.g., Part 135) are depreciable under seven-year MACRS (see Table D).

Table E, meanwhile, depicts an example of using the MACRS schedule for a 2004 model Citation CJ3 in private (Part 91) and charter (Part 135) operations over five and seven-year periods assuming a Vref retail value of $4.0 million.

ASKING PRICES VS AFTT, AGE & ENGINE THRUST Chart F (opposite), sourced from the Multi-dimensional Economic Evaluators Inc. (www.meevaluators.com), shows a Value and Demand chart for the pre-owned CJ3, Hawker 400XP, and Learjet 31A business jets.

The current pre-owned market for these aircraft shows a total of 81 units ‘For Sale’.

Forty-seven of the 81 have an asking price - thus, we have plotted those 47. The equation that we derived from these asking prices and other criteria

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used should enable sellers and buyers to compare, and perhaps adjust their offerings if necessary. Demand and Value are on opposite sides of the same Price axis. The market treats the CJ3, Hawker 400XP and Learjet 31A in much the same way.

The Demand Equation for these vehicles is Price $m = 23.7 Quantity-1.09. The slightly steep slope (exponent <-1.0) indicates that there is slightly more revenue in the two uppermost bins than there is in the two lowermost bins. This equation is very well correlated, with an adjusted R2 of 99.3%, a Pearson’s2 of 99.7% a P-Value of 0.02% and a Standard Error of $17,400.

Their Value Equation is Price = 0.00352 *Years -0.445 *Volume/Passenger 6.180 *AFTT -0.282. We find that the Value Equation for these vehicles is well correlated, with an Adjusted R2 of 83.5%, a Pearson’s2 of 89.1% and a Standard Error of $465,000 (with P-Values of 0.01%, 1.79E-07 and 0.16% for Years, Volume/Passenger and AFTT, respectively).

The influence of the Volume per Passenger term, at 6.18, is especially strong, and seldom seen.

In this case, given that all of the vehicles have similar speeds and passenger capacities (and that range in this case did not impact value in a statistically significant way), the market price equation makes a strong distinction in the available space per passenger.

In this market, unlike others we have witnessed, aircraft age and the Total Time on the Airframe (TTAF) are too highly correlated with one another to use them at the same time.

However, with the addition of Range and Max Mach, we can include other important influencing features.

Thus, the market for used Cessna Citation CJ3s, Hawker 400XPs, and Learjet 31As respond to at least the five features depicted here: Years, AFTT, Volume/Passenger, Price and Quantity.

Aircraft Index see Page 4

AirCompAnalysisSEPT14final_ACAn 19/08/2014 12:07 Page 5

AIRCRAFT COMPARATIVE ANALYSIS CESSNA CITATION CJ3 PRODUCTIVITY COMPARISONS The points in Chart G center on our field of aircraft. Pricing used in the vertical axis is as published in the 2014 Vref pricing guide. 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.

CHART F - VALUE/DEMAND

1. Range with full payload and available fuel; 2. The long-range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

Advertising Enquiries see Page 9

CHART G - PRODUCTIVITY $6.0

Price (Millions)

The result is a very large number so for the purpose of charting, each result is divided by one billion. The examples plotted are confined to the aircraft in this study. A computed curve fit on this plot would not be very tight, but when all business jets are considered the “r” squared factor would equal a number above 0.9. Others may choose different parameters, but serious business jet buyers are usually impressed with price, range, speed, and cabin size.

After consideration of the value and fuel savings, we can conclude that the CJ3, as shown in the productivity index is productive and has been popular with a high market share. The CJ3 offers significant operating cost saving with greater range.

Overall, the greater range, speed and cabin capacity will weigh in favour of the CJ3 for many operators – although purchase prices are proportionally higher.

So, ten years after first delivery, the CJ3 is set to be replaced by the CJ3+. History tends to show that after an aircraft model has been in production for ten years – especially one that sells as well as the CJ3 – that the introduction of an improved model (the CJ3+ in this case) will continue to maintain that success in the face of the everincreasing sophistication of Business Aviation technology.

$4.5

Cessna CJ3

$3.0

Learjet 31A

$1.5 $0.0 0.000

Hawker 400XP 0.050

0.100

0.150

0.200

0.250

0.300

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

SUMMARY Within the preceding paragraphs we have touched upon several of the key attributes that business jet operators value.

However, there are often other qualities such as service and support that factor in a buying decision, but which are beyond the scope of this article.

The Cessna Citation CJ3 business jet has its advantages at its

price-point - so those operators in the market should find the preceding comparison of value.

Our expectations are that the CJ3 will continue to do very well in the pre-owned market for the foreseeable future, but it’s worth keeping a watch for how the new aircraft market develops with the CJ3+. The entire story of the CJ family has been remarkable.

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❯ For more information: Michael Chase is president of Chase & Associates, and can be contacted at: 1628 Snowmass Place, Lewisville, TX 75077; Tel: 214-226-9882; Email: Mike@avbuyer.com; Web: www.mdchase.com September 2014 – AVBUYER MAGAZINE

75

ACSpecs IntroSEPT14_AC Specs Intronov06 19/08/2014 11:52 Page 1

AIRCRAFT SPECIFICATIONS: LARGE CABIN JETS

OCTOBER ISSUE: Medium Jets NOVEMBER ISSUE: Entry Level & Light Jets DECEMBER ISSUE: Turboprops JANUARY ISSUE: Large Cabin Jets

Aircraft Performance & Specifications Description of Cost Elements he AvBuyer Magazine Guide to Aircraft Performance and Technical Specification Data is updated by Conklin & de Decker on a regular basis. The Guide is much more comprehensive and informative, providing more aircraft types and models and including variable cost numbers for all models.

This month’s category of aircraft Large Cabin Jets – appears overleaf, to be followed by Medium Jets next month.

Please note that this data should be used as a guide only, and not as the basis on which buying decisions are taken. The data presents aircraft aged below 20 years of age only, but Conklin & de Decker provides details of older airplanes too.

If there are any other ways in which we can improve the content or presentation of this information, please let us know.

T

❯ Tel: +44 (0) 208 255 4000; Fax: +44 (0) 208 255 4300; Email: editorial@avbuyer.com. © 2011 Conklin & de Decker Associates, Inc., P.O. Box 1142, Orleans, Massachusetts, 02653, Tel. 508-255-5975, www.conklindd.com

76

AVBUYER MAGAZINE – September 2014

The following describes the content of each cost element used in The Aircraft Cost Evaluator. There are no sales taxes included in these costs.

VARIABLE COST PER HOUR Includes fuel, maintenance reserves for routine maintenance, engine/ propeller/APU reserves, and miscellaneous expenses.

SPECIFICATIONS - GENERAL: CABIN DIMENSIONS Cabin Height, Width, and Length are based on a completed interior. On “cabin-class” aircraft, the length is measured from the cockpit divider to the aft pressure bulkhead (or aft cabin bulkhead if unpressurized). For small cabin aircraft, the distance is from the cockpit firewall to the aft bulkhead. Height and width are the maximum within that cabin space. Cabin Volume is the interior volume, with headliner in place, without chairs or other furnishings. Cabin Door Height and Width are the measurements of the main passenger cabin entry door.

BAGGAGE Internal baggage volume is the baggage volume that is accessible in flight by the passenger. This amount may vary with the interior layout. External baggage volume is the baggage volume not accessible in flight (nacelle lockers, etc.).

CREW SEATS/SEATS EXECUTIVE This is the typical crew and passenger seating commonly used on the aircraft. This is not the maximum certificated seats of the aircraft. These numbers may vary for different operations (Corporate, Commercial, EMS, etc.).

WEIGHTS: • Maximum Take-Off Weight and Maximum Landing Weight are specified during aircraft certification.

• Basic Operating Weight is the empty weight, typically equipped, plus unusable fuel and liquids, flight crew @ 200 pounds each and their supplies.

• Useable fuel is the useable fuel in gallons x 6.7 pounds per gallon (Jet fuel) or 6 pounds per gallon (AVGAS).

• Payload with Full Fuel is the useful load minus the useable fuel. The useful load is based on the maximum ramp weight minus the basic operating weight.

• Maximum Payload is the maximum zero fuel weight minus the basic operating weight.

SPECIFICATIONS PERFORMANCE RANGE: • Range - Seats Full is the maximum IFR range of the aircraft with all passenger seats occupied. This uses the NBAA IFR alter-

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nate fuel reserve calculation for a 200 N.Mi. alternate. This is used for jet and turboprop aircraft.

• Ferry Range - is the maximum IFR range of the aircraft with the maximum fuel on board and no passenger seats occupied.

This uses the NBAA IFR alternate fuel reserve calculation for a 200 N.Mi. alternate. This is used for jet and turboprop aircraft.

• VFR Range - Seats Full is the maximum VFR range of the aircraft with all passenger seats occupied. This is used for all helicopters and piston fixed-wing aircraft.

• VFR Ferry Range - is the maximum VFR range of the aircraft with the maximum fuel on board and no passenger seats occupied. This is used for all helicopters and piston fixed-wing aircraft.

BALANCED FIELD LENGTH BFL is the distance obtained by determining the decision speed (V1) at which the take-off distance and the accelerate-stop distance are equal (fixed-wing multi-engine aircraft only). This is based on four passengers and maximum fuel on board (turbine aircraft). For single-engine and all piston fixed-wing aircraft, this distance represents the take-off field length at Maximum Takeoff Weight (MTOW).

LANDING DISTANCE (FACTORED) For fixed-wing turbine aircraft, landing distance is computed using FAR 121 criteria. This takes the landing distance from 50/35 feet (depends on certification criteria) and multiplies that by a factor of 1.667. No credit is given for thrust reversers.

Configuration is with four passengers and NBAA IFR Fuel Reserve on board. For fixed-wing piston aircraft, this figure is the landing distance over a 50 foot obstacle.

RATE OF CLIMB (Ft/Min) The rate of climb, given in feet per minute, is for all engines operating, at MTOW, ISA conditions. One Engine Out rate of climb is for one engine inoperative rate of climb at MTOW, ISA. CRUISE SPEED (Knots True Air Speed - KTAS) Max Cruise Speed - is the maximum cruise speed at maximum continuous power. This may also be commonly referred to as High Speed Cruise. Normal cruise speed is the recommended cruise speed established by the manufacturer. This speed may also be the same as Maximum Cruise Speed. Long Range Cruise is the manufacturer’s recommended cruise speed for maximum range.

ENGINES The number of engines, manufacturer and model are shown.

❯

Aircraft Index see Page 4

Boutsen September_Layout 1 18/08/2014 15:24 Page 1

AIRCRAFT SPECIFICATIONS

BO MB AR DIE RC HA LLE BO NG MB ER AR 30 DIE 0 RC HA LLE BO NG MB ER AR 35 DIE 0 RC HA LLE BO NG MB ER AR 60 DIE 1-3 RC R HA LLE BO NG MB ER AR 60 DIE 4 RC HA LLE BO NG MB ER AR 60 DIE 5 RC HA LLE BO NG MB ER AR 85 DIE 0 RC HA LLE BO NG MB ER AR 85 DIE 0C RG S LO B AL BO EX MB PR AR ESS DIE RG LO BA GL LE OB XP AL RE 50 SS 00 XR S

AircraftPer&SpecSEPT14_PerfspecDecember06 19/08/2014 11:57 Page 1

LARGE CABIN JETS MEDIUM JETS $3,200.45

$3,243.52

$4,348.26

$3,850.76

$3,583.48

$3,745.35

$4,092.97

$5,664.97

$5,637.20

$5,397.57

CABIN HEIGHT FT.

6.08

6.08

6.1

6.08

6.08

6.08

6.08

6.25

6.25

6.25

CABIN WIDTH FT.

7.17

7.17

8.2

8.17

8.17

8.17

8.17

8.17

8.17

8.17

CABIN LENGTH FT.

28.6

28.6

28.3

28.4

28.4

48.42

48.42

48.35

48.35

42.47

CABIN VOLUME CU.FT.

930

930

1146

1146

1146

1964

1964

2002

2002

1889

DOOR HEIGHT FT.

6.22

6.22

5.83

5.83

5.83

5.8

5.8

6.16

6.17

6.17

DOOR WIDTH FT.

2.5

2.5

3

3.08

3.08

3.08

3.08

3

3

3

BAGGAGE VOL. INT. CU.FT.

106

106

115

115

115

202

100

190

195

195

BAGGAGE VOL. EXT. CU.FT.

-

-

-

-

-

-

292

-

-

-

CREW #

2

2

2

2

2

2

2

2

2

2

SEATS - EXECUTIVE #

8

8

9

10

10

15

18

13

13

13

MTOW LBS

38850

40600

45100

48200

48200

53000

53000

95000

98000

92500

MLW LBS

33750

34150

36000

38000

38000

47000

47000

78600

78600

78600

B.O.W. W/CREW LBS

23850

24800

26250

27100

27150

34618

32257

50300

51200

50861

USEABLE FUEL LBS

14045

14150

17635

19850

19852

18274

14305

43158

44642

38959

PAYLOAD WITH FULL FUEL LBS

1105

1800

1365

1263

1298

358

6688

1792

2408

2930

MAX. PAYLOAD LBS

3350

3400

4750

4815

4850

9382

11743

5700

4800

7139

RANGE - SEATS FULL N.M.

3065

3200

3380

3756

3756

2456

2178

5940

6055

5200

MAX. RANGE N.M.

3340

3600

3590

4119

4123

3096

2416

6125

6226

5350

BALANCED FIELD LENGTH FT.

4810

4853

6500

5765

5840

6305

6305

6170

6170

5540

LANDING DIST. (FACTORED) FT.

3833

3850

4500

3833

3833

4120

4120

3667

3667

3667

R.O.C. - ALL ENGINES FT PER MIN

4240

-

4259

4345

4345

3395

3600

3450

3300

3450

R.O.C. - ONE ENGINE OUT FT PER MIN

474

-

1207

680

581

443

443

522

474

704

MAX. CRUISE SPEED KTAS

470

470

459

488

488

459

459

505

511

511

NORMAL CRUISE SPEED KTAS

459

459

443

459

459

442

442

488

488

488

L/RANGE CRUISE SPEED KTAS

459

459

425

425

425

425

425

459

471

471

2

2

2

2

2

2

2

2

2

2

HTF 7000

HTF 7350

CF34-3A1

CF34-3B

CF34-3B

CF34-3B1

CF34-3B1

BR 710 -A2-20

BR 710 -A2-20

BR 710 -A2-20

VARIABLE COST PER HOUR $

ENGINES # ENGINE MODEL

Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.

78

AVBUYER MAGAZINE – September 2014

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Aircraft Index see Page 4

AIRCRAFT SPECIFICATIONS

BO MB AR DIE RG LO BA L6 DA 00 SSA 0 UL TF AL CO N2 00 DA 0 SSA UL TF AL CO N2 00 DA 0D SSA X UL TF AL CO N2 00 DA 0E SSA X UL TF AL CO N2 DA 00 0E SSA XE UL AS TF y AL CO N2 00 DA 0LX SSA UL TF AL CO N2 00 DA 0LX SSA S UL TF AL CO N2 DA 00 0S SSA UL TF AL CO N9 00 B

AircraftPer&SpecSEPT14_PerfspecDecember06 19/08/2014 11:58 Page 2

LARGE CABIN JETS $5,458.22

$4,082.54

$3,362.24

$3,464.05

$3,329.16

$3,273.06

$3,273.06

$3,342.99

$4,283.58

CABIN HEIGHT FT.

6.25

6.2

6.2

6.2

6.2

6.2

6.2

6.2

6.2

CABIN WIDTH FT.

8.17

7.7

7.7

7.7

7.7

7.7

7.7

7.7

7.7

CABIN LENGTH FT.

48.35

31

31

31

31

31

31

31

33.2

CABIN VOLUME CU.FT.

2002

1028

1028

1028

1028

1028

1028

1028

1218

DOOR HEIGHT FT.

6.17

5.6

5.6

5.6

5.6

5.6

5.6

5.6

5.7

DOOR WIDTH FT.

3

2.6

2.6

2.6

2.6

2.6

2.6

2.6

2.7

BAGGAGE VOL. INT. CU.FT.

195

134

131

131

131

131

131

131

127

BAGGAGE VOL. EXT. CU.FT.

-

-

-

-

-

-

-

-

-

CREW #

2

2

2

2

2

2

2

2

2

SEATS - EXECUTIVE #

13

10

10

10

10

10

10

10

12

MTOW LBS

99500

35800

41000

42200

42200

42200

42200

41000

45500

MLW LBS

78600

33000

39300

39300

39300

39300

39300

39300

42000

B.O.W. W/CREW LBS

52230

22750

23190

23190

23190

24440

24440

24750

25275

USEABLE FUEL LBS

44716

12155

14600

16660

16660

16660

16660

14600

19165

PAYLOAD WITH FULL FUEL LBS

2804

1095

3410

2550

2550

1300

1300

1850

1260

MAX. PAYLOAD LBS

5770

5910

6510

6510

6510

5260

5260

4950

2945

RANGE - SEATS FULL N.M.

5890

2841

3378

3878

3878

3817

3817

3613

3450

MAX. RANGE N.M.

6080

3130

3440

4045

4045

4255

4255

3681

4080

BALANCED FIELD LENGTH FT.

6476

5440

5300

5585

5585

5850

5850

4652

5144

LANDING DIST. (FACTORED) FT.

3667

4333

4333

4333

4333

4450

4450

4450

3633

R.O.C. - ALL ENGINES FT PER MIN

3300

3730

4575

4375

4375

4350

4350

4350

3755

R.O.C. - ONE ENGINE OUT FT PER MIN

474

377

490

490

490

490

490

490

645

MAX. CRUISE SPEED KTAS

511

475

482

482

482

482

482

482

500

NORMAL CRUISE SPEED KTAS

488

459

459

459

459

459

459

459

466

L/RANGE CRUISE SPEED KTAS

471

430

442

442

442

442

442

442

428

2

2

2

2

2

2

2

2

3

BR 710 -A2-20

CFE 738 -1-1B

PW308C

PW308C

PW308C

PW308C

PW308C

PW308C

TFE 731 -5BR-1C

VARIABLE COST PER HOUR $

ENGINES # ENGINE MODEL

Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.

Advertising Enquiries see Page 9

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September 2014 – AVBUYER MAGAZINE

79

AIRCRAFT SPECIFICATIONS

DA SSA UL TF AL CO N9 00 DA C SSA UL TF AL CO N9 00 DA DX SSA UL TF AL CO N9 00 DA EX SSA UL TF AL CO N9 00 DA EX SSA EA UL Sy TF AL CO N9 DA 00 LX SSA UL TF AL CO N7 X EM BR AE RL EG AC Y6 00 EM BR AE RL EG AC Y6 50 GU LFS TRE AM G2 80

AircraftPer&SpecSEPT14_PerfspecDecember06 19/08/2014 12:02 Page 3

LARGE CABIN JETS $4,096.10

$3,841.84

$4,090.01

$3,773.17

$3,707.19

$4,133.17

$3,965.10

$4,106.37

$3,220.88

CABIN HEIGHT FT.

6.2

6.2

6.2

6.2

6.2

6.2

6

6

6.25

CABIN WIDTH FT.

7.7

7.7

7.7

7.7

7.7

7.7

6.9

6.9

7.2

CABIN LENGTH FT.

33.2

33.2

33.2

33.2

33.2

39.1

49.8

49.8

32.25

CABIN VOLUME CU.FT.

1218

1218

1218

1218

1218

1506

1656

1656

888

DOOR HEIGHT FT.

5.7

5.6

5.6

5.6

5.6

5.6

5.6

5.6

6

DOOR WIDTH FT.

2.7

2.6

2.6

2.6

2.6

2.6

2.5

2.5

2.75

BAGGAGE VOL. INT. CU.FT.

127

127

127

127

127

140

286

286

34

BAGGAGE VOL. EXT. CU.FT.

-

-

-

-

-

-

-

-

120

CREW #

2

2

2

2

2

2

2

2

2

SEATS - EXECUTIVE #

12

12

12

12

12

12

13

13

8

MTOW LBS

45500

46700

48300

49000

49000

70000

49604

53572

39600

MLW LBS

42000

42200

44500

44500

44500

62400

40785

44092

32700

B.O.W. W/CREW LBS

25275

25800

24700

24700

26400

36600

30081

31217

24150

USEABLE FUEL LBS

19165

18830

21000

21000

21000

31940

18170

20600

14600

PAYLOAD WITH FULL FUEL LBS

1260

2270

2800

3500

1800

1660

1507

1910

1000

MAX. PAYLOAD LBS

2945

5064

6164

6164

4464

4400

5193

4939

4050

RANGE - SEATS FULL N.M.

3450

4100

4500

4500

4800

5490

3091

3661

3387

MAX. RANGE N.M.

4080

4290

4725

4725

5000

5870

3485

3980

3690

BALANCED FIELD LENGTH FT.

5144

4890

5215

5215

5215

5600

5614

5741

4750

LANDING DIST. (FACTORED) FT.

3633

3633

3750

3750

3833

3583

3850

3927

5083

R.O.C. - ALL ENGINES FT PER MIN

3755

3880

3880

3880

3880

-

2639

3022

5000

R.O.C. - ONE ENGINE OUT FT PER MIN

645

796

755

703

703

615

761

757

844

MAX. CRUISE SPEED KTAS

500

482

482

482

482

-

455

459

482

NORMAL CRUISE SPEED KTAS

466

459

459

459

459

488

447

447

470

L/RANGE CRUISE SPEED KTAS

428

430

430

430

430

459

424

425

459

3

3

3

3

3

3

2

2

2

TFE 731 -5BR-1C

TFE 731-60

TFE 731-60

TFE 731-60

TFE 731-60

PW307A

AE 3007A1E

AE 3007A2

HTF 7250G

VARIABLE COST PER HOUR $

ENGINES # ENGINE MODEL

Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.

80

AVBUYER MAGAZINE – September 2014

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Aircraft Index see Page 4

AircraftPer&SpecSEPT14_PerfspecDecember06 19/08/2014 12:02 Page 4

G6 50

G5 50

GU LFS TRE AM

GU LFS TRE AM

GU LFS TRE AM

G5 00

GV

G4 50

GU LFS TRE AM

GU LFS TRE AM

GI V-S P

GU LFS TRE AM

GU LFS TRE AM

G4 00

G3 50

GU LFS TRE AM

GU LFS TRE AM

G3 00

AIRCRAFT SPECIFICATIONS

LARGE CABIN JETS $5,238.45

$5,072.42

$5,241.42

$5,408.05

$5,116.73

$5,581.24

$4,953.74

$4,980.15

$5,373.54

CABIN HEIGHT FT.

6.2

6.2

6.2

6.2

6.2

6.2

6.2

6.2

6.4

CABIN WIDTH FT.

7.3

7.3

7.3

7.3

7.3

7.3

7.3

7.3

8.5

CABIN LENGTH FT.

45.1

45.1

45.1

45.1

45.1

50.1

50.1

50.1

53.6

CABIN VOLUME CU.FT.

1658

1658

1658

1658

1658

1595

1812

1812

2421

DOOR HEIGHT FT.

5

5

5

5

5

5

5

5

6.28

DOOR WIDTH FT.

3

3

3

3

3

3

3

3

3

BAGGAGE VOL. INT. CU.FT.

169

169

169

169

169

226

226

226

195

BAGGAGE VOL. EXT. CU.FT.

-

-

-

-

-

-

-

-

-

CREW #

2

2

2

2

2

2

2

2

2

SEATS - EXECUTIVE #

13

14

13

13

14

13

18

18

18

MTOW LBS

72000

70900

74600

74600

74600

90500

85100

91000

99600

MLW LBS

66000

66000

66000

66000

66000

75300

75300

75300

83500

B.O.W. W/CREW LBS

43700

43000

43700

43700

43200

48400

47900

47900

54000

USEABLE FUEL LBS

26700

25807

29281

29281

29281

41000

34940

41000

44200

PAYLOAD WITH FULL FUEL LBS

2000

2493

2019

2019

2519

1500

2660

2500

1800

MAX. PAYLOAD LBS

5300

6000

5300

5300

5800

6100

6600

6600

6500

RANGE - SEATS FULL N.M.

3486

3680

3880

3880

4100

6250

5620

6490

-

MAX. RANGE N.M.

3820

3900

4166

4166

4400

6675

5991

6950

-

BALANCED FIELD LENGTH FT.

4700

5065

5700

5700

5770

6200

5385

6200

-

LANDING DIST. (FACTORED) FT.

4417

4417

4417

4458

4417

3750

3667

3667

4167

R.O.C. - ALL ENGINES FT PER MIN

3805

3960

3640

3640

3760

3610

3950

3650

-

R.O.C. - ONE ENGINE OUT FT PER MIN

767

736

701

701

712

820

707

594

-

MAX. CRUISE SPEED KTAS

500

500

500

500

500

508

508

508

516

NORMAL CRUISE SPEED KTAS

476

476

476

476

476

488

488

488

-

L/RANGE CRUISE SPEED KTAS

445

445

445

445

445

459

459

459

488

2

2

2

2

2

2

2

2

2

TAY 611-8

TAY 611-8C

TAY 611-8

TAY 611-8

TAY 611-8C

BR 710 -A1-10

BR 710 -C4-11

BR 710-C4-11

BR 725 A1-12

VARIABLE COST PER HOUR $

ENGINES # ENGINE MODEL

■

Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.

Advertising Enquiries see Page 9

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September 2014 – AVBUYER MAGAZINE

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Plane Sense on Cockpit Avionics

82

NextGen: How will you manage the transition?

88

Beyond the NextGen Cockpit: Adding to safety and aircraft performance with ‘non-NextGen’ technologies.

94

The Front-Office Panel Makeover: The carrot and stick arguments for an upgrade.

98

Today’s Cockpit Avionics: The Cost of Maintenance.

A

‘NextGen’ How will you manage the transition?

by Brian Wilson

s a dedicated runner over the last 40 years (covering races ranging from five kilometres to the Marathon), I have learned that mentally it’s better to just take one mile at a time. Standing at the starting line thinking about covering 26.2 miles can be intimidating. Breaking the distance down into smaller, manageable segments eases your anxieties and gives you confidence to achieve your overall goal.

The same approach can be used when figuring out how you are going to manage the transition to ensure your flight department and aircraft meet all the requirements of NextGen. Imagine standing at your starting line having received an email from the Aviation Director asking for an update on: • • •

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AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

FANS 1A ADS-B ADS-C Aircraft Index see Page 4

Plane Sense 1 Sept14_FinanceNov 19/08/2014 13:19 Page 2

• • • •

CPDLC LINK 2000+ TCAS 7.1 RPN.

Advertising Enquiries see Page 9

STEP 1: FMS UPGRADE As an operator, you will need to do your homework prior to performing these sequential upgrades to ensure the equipment and software is covered under the pending STC. I recommend that you first focus on your Flight Management System (FMS), budgeting this upgrade at your next MX interval, along with transponder wiring provisions for Automatic Dependent Surveillance–Broadcast (ADS-B).

Future Air Navigation Systems (FANS) will require your FMS to have Wide Area Augmentation System (WAAS)/Controller Pilot DataLink Communication (CPDLC) abilities. WAAS is needed so that the position updates to your transponders are adequate for ADS-B operation. CPDLC allows the crew www.AVBUYER.com

to communicate with ATC using short, scripted messages which typically include flight level changes, position reporting and departure and arrival clearances.

Many larger airframes already have WAAS-enabled computers. If yours does, you still need to confirm they meet the standards for the mandate. Since these upgrades can be quite costly, some repair stations are opting to install a third stand-alone FMS to save on cost and still comply with the mandate.

In most cases a third standalone FMS will come with a remote Course Deviation Indicator (CDI) and new Data Transfer Unit (DTU). If available panel space becomes an issue; consider requesting a portable DTU in lieu of a fixed mounted version.

It is important to remember the FMS associated with your FANS solution does not have to be coupled to the instrumentation. For clarification - updating your existing FMS to WAAS does provide other immediate benefits

▲

You can multiply this task accordingly if you have numerous different airframes in your flight department. And the above acronyms only cover the equipment aspect!

You will still need to account for Pilot training (textbook and operational); Minimum Equipment List (MEL); Amendments; and Letters of Authorization (LOA) for “N” registered aircraft. Your reply to the Aviation Director should stipulate, “This will be an allhands team-effort, and we had better get started now!”

By way of a quick primer, this sophisticated upgrade should only be performed by a quality-approved repair station with demonstrable ability to do the job right. The repair station should be instantly able to answer

your questions without “getting back to you”.

Does it have the resources to complete the certification path (both on the equipment and operability approval process)?

September 2014 – AVBUYER MAGAZINE

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Plane Sense 1 Sept14_FinanceNov 19/08/2014 13:20 Page 3

FIRST, FOCUS ON YOUR FLIGHT MANAGEMENT SYSTEM

“Hopefully your next major MX inspection falls into a new calendar and budgetary year allowing new funds to be allocated for the Cockpit Voice Recorder (CVR), Satcom and Data Management Unit (DMU) modifications.” like Localizer Performance with Vertical guidance (LPV) approaches; it’s just “not” required for FANS if you choose the third FMS option.

The new FMS will also handle the requirements of Automatic Dependent Surveillance Contract (ADS-C) by reporting the current aircraft position via satellite or VHF datalink to ATC. ADS-C improves the surveillance of en route aircraft and provides the path to reduced, and even potential elimination of annoying HF transmissions.

STEP 2: CVR, SATCOM & DMU

84

AVBUYER MAGAZINE – September 2014

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ADS-B: DON’T WAIT Automatic Dependent Surveillance Broadcast (ADS-B) is either something you need to budget for immediately or can be put off for a while, based on where you fly your aircraft. This “broadcast” sends the aircraft’s position, identification, altitude, velocity and other critical information to ATC. Countries like Australia and areas in the Aircraft Index see Page 4

▲

After the FMS upgrade and ADS-B provisional wiring have been completed we can focus on the next step. Hopefully your next major MX inspection falls into a new calendar and budgetary year allowing new funds to be allocated for the Cockpit Voice Recorder (CVR), Satcom and Data Management Unit (DMU) modifications. Again, you should always seek to confirm the upgrade is part of a certified solution.

CVRs by definition were designed to record all aural sounds in the cockpit over the preceding 30 minutes. FANS-compliant CVRs must have two hours of recording time, and must be able to record the text messages (CPDLC) sent by the FMS. Some CVRs can be upgraded by the vendor while most will need to be replaced.

A word of caution for those with upgradeable units: since the DMU will also be changed it is important to verify compatibility of the two units. You can do this by asking the manufacturer if the CVR and the new DMU are on their ‘approved’ list. Units on the list have not only passed the compatibility test, they also have the software written to extrapolate the data from the CVR. Many aircraft already have a DMU on board, providing basic datalink information.

Currently these legacy units are not upgradeable; vendors have been very slow to provide an upgrade solution, and most engineering companies have decided to use new FANS-

approved units.

All of the certification paths, I have reviewed have confirmed this to be true. Link 2000+ which is already activated in portions of Europe requires a specific ship-set of messages transmitted from a VHF Digital Link Mode 2 (VDL-2) transceiver. Your new DMU should have this internal feature to ensure you don’t need another unit installed at a later time.

Since this is a VHF line-of-sight transmission, prepare and budget for the possibility of a new antenna on the lower aft fuselage. A possible money-saving tip would be to have a coaxial relay installed so the existing Aerodrome Flight Information Service (AFIS) unit and new DMU could share the same existing antenna. Some configurations only allow the crew to transmit flight plans and other specific data through the existing AFIS system.

The same communication functionality must be provided by your Satellite Communications (Satcom) system when flying over the ocean and outside of line-of-sight coverage. For those fortunate enough to already have modified your legacy voice-only Satcom system for one capable of sending and receiving data you might already be FANS compliant. Others will have to put aside funds to modify their system or install a compatible FANS Over Iridium (FOI) system.

FANS requires a dedicated channel to the cockpit to ensure the crew can send and receive CPDLC messages. Vendors who are vested in the Satcom industry continue to introduce new solutions that should surely benefit the operators with a more affordable path. Choices include a remote DataLink Unit (DLU) featuring a built-in Iridium transceiver that bolts onto an existing system. Another offers cost incentives to upgrade the existing system and add a Data Interface Unit (DIU) to meet compliance.

Essentially, it is important to remember that you have choices when it comes to the Satcom and you should always ask “why” if you are told your current system will be replaced.

In addition, visual alerts must be in view of both crew members and an aural alert atypical to any other sound is required in the cockpit to ensure the crew is cognizant of any message sent by ATN to the aircraft.

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Plane Sense 1 Sept14_FinanceNov 19/08/2014 13:20 Page 4

TCAS 7.1 VS 7.0 continue to increase in the coming months as the deadline looms closer. Couple this with an agency that is short-staffed and probably will not be adding additional personnel, and a warning begins to form not to let this issue slide to the deadline...

I have also heard that the level of knowledge for NextGen varies greatly from agency to agency. It is said that there is no better time to prepare than the present. I hope you heed this writer’s warning not to procrastinate and get your transition plan for NextGen in order now.

Brian Wilson oversees all activities related to SOURCE: SKYBRARY

Asia Pacific regions already require your aircraft to be ADS-B equipped. Europe will follow in 2017 and the United States in 2020. I cannot stress highly enough, however, the importance of not waiting to the last calendar month to get this task done. Not only do you receive the benefits of increased situation awareness and safety for you and your passengers, but there simply is not enough installation capacity to meet the deadline if you wait to the last minute.

ADS-B upgrades require a STC, and your transponders will have to be replaced or modified to meet the mandate. As mentioned above, a new WAAS-compliant FMS will provide the needed position updates critical for proper operation. New wiring will also be required between the FMS and the transponders, and in addition, regulations require an annunciator to warn the crew in the event the system is not able to broadcast the necessary data.

vres in the rare case that two aircraft were given similar evasive coordinates.

SUMMARY We have all heard the statement; the work is not complete until the paperwork is done!

This holds true for NextGen. You will need to set aside the funds, and just as importantly commit the time required to get the crew trained, the manuals revised, and seek approval for the infamous Letter of Authorization (LOA).

Regulatory agencies have seen a recent increase in requests for LOA approvals for FANS. I anticipate the number of requests will

Banyan Air Services’ avionics department - including sales promotions, aircraft avionics installations, bench and line troubleshooting, engineering and used avionics component sales. His avionics career started 30 years ago, when he joined the U.S. Navy as an Avionics Technician. Wilson has also worked at Midcoast Aviation, Raytheon, Bombardier/Learjet and Jet Aviation in West Palm Beach where he headed the Avionics, Engineering and Interior departments. He serves on the Rockwell Collins Dealer Board, and sits on the AEA Board. Brian can be reached at 954-2323606 or email bwilson@banyanair.com ■

TCAS 7.1: DON’T UNDERESTIMATE The European Union will implement Traffic Collision Avoidance System (TCAS) change 7.1 for retrofit aircraft in December 2015. Do not underestimate the costs needed to perform this upgrade as many existing TCAS processors will need to be replaced, and STCs will need to be amended.

Units that can be modified will probably require sending to the manufacturer, so schedule this during an MX event and expect a part-number change. This software update allows the processor to automatically compute and command “reversal” avoidance manoeu-

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www.AVBUYER.com Aircraft Index see Page 4

Charlie Bravo September_Layout 1 18/08/2014 15:32 Page 1

PS 2 Sept14_FinanceNov 19/08/2014 13:24 Page 1

Plane Sense on Cockpit Avionics

Beyond The ‘NextGen’ Cockpit owadays, few venture beyond the elements of NextGen when discussing new or current technologies - especially when dealing with cockpits. In fact the true relevance of NextGen can be very confusing, especially when technology developers and marketers continuously establish tenuous links to NextGen. For clarification, NextGen applies to four major areas of airborne technology:

N Adding to safety, status awareness and aircraft performance with ‘non-NextGen’ technologies.

by Ken Elliott

AVBUYER MAGAZINE – September 2014

•

Performance Based Navigation (PBN) Surveillance (ADS-B In and Out) Communication (FANS/CPDLC and ADS-C) and The lesser-known Low Vision Ops (GBAS and EFVS).

It also applies to significant areas of Air Traffic Control implementing ground technologies and procedures that utilize the aircraft equipage and accommodate NAS-wide operations. For the sake of international future airborne equipage under SESAR and ICAO the situation outlined largely applies across the globe.

So identifying technologies and resources within the aircraft cockpit that are outside the ‘buckets’ of NextGen is not necessarily an easy matter. Long before a flight crew enters the cockpit of a business jet, advanced cockpit-related technologies play their role.

In an endless stream of simplicity, technology enables integrated flight planning, maintenance diagnostics and flight and trip www.AVBUYER.com

▲

88

• • •

analysis, ensuring operational success anywhere in the world.

Via tablet devices, pilots can plan, download, review and upload complex flight data.

Aircraft readiness and status may be assessed, route logistics and international trip planning can all be prepared from the comfort of the flight department, or an FBO. Once within the cockpit all the pre-flight data can be downloaded into the aircraft systems using complex and intuitive software.

Aircraft software is the heart of today’s technology and is carefully managed by strict standards of certification.

Technology beyond NextGen plays a significant role in guiding the aircraft and crew during all phases of flight - including ramp preparation, taxi, take-off, cruise, approach to landing, taxi and post flight. After landing, downloaded data may be analyzed for continual improvements in flight operations, incident review and much more. Using the flexibility of WiFi and the portability of PEDs, QARs and tablets, data is available instantaneously wherever it is needed.

From a government perspective it is advantageous to drive equipage and infrastructure away from airports and airways into the aircraft cockpit where costs to equip, maintain, train and provide continued airworthiness are borne by the operator.

Airlines in particular take a different position, and all users understandably resist technology requirements where the business case may favor one user group, appear political, or just does not make good sense.

Aircraft Index see Page 4

Elliott Aviation September_Layout 1 18/08/2014 15:40 Page 1

PS 2 Sept14_FinanceNov 19/08/2014 13:24 Page 2

CRM, SMS & HRM Beyond the equipage and its software related to the complete flight regime are three other areas being increasingly supported by technologies and interrelated processes. The first is Cockpit Resource Management (CRM) where the use of cockpit technology is carefully monitored to ensure pilots are focused on the primary objective of flying the aircraft.

CRM defines equipment responsibilities to ‘pilot flying’ and ‘pilot not flying’, all documented in individual flight department CRM guidelines. CRM also addresses automation dependency and the common problem of information overload.

Another area is Safety Management Services/Systems (SMS), where managing safety by reducing risk, is a systematic approach to cockpit safety.

Finally, there is Health and Resource Management (HRM). Data - both real time and stored - is provided in-flight and on the ground to crews and their maintenance support. Equipment suppliers receive direct health information from engines and other systems to enable monitoring, thus providing a product support level never experienced before. Monitoring, recording, analyzing and improving aircraft performance are all key functions of HRM. Regarding the technology itself, Table A (right) outlines some of the major areas of cockpit-centric technologies.

T ABLE A – COCKPIT-CENTRIC TECHNOLOGIES (Not NextGen-Specific) D ata

L ink

A ware

D isplay

T rack/Position

EFB/Tablet

Cockpit Data Com

Radar

Flat Panels

Dual IRS

Interface Modules

Air/Ground Datalink

SVS

Stand Alone

CVDR

PEDs

Providers

EVS beyond IR

EFB/Tablets

Third FMS

Apps

Land & Taxi

DATA

90

AVBUYER MAGAZINE – September 2014

“As there is a plethora of devices, software and applications you should be selective in what works best for your operation - first consulting with the aircraft OEM or primary avionics OEM who may have tested, or be beta-testing fully integrated solutions.” including individual operators, as potential benefits are realized. As there is a plethora of devices, software and applications you should be selective in what works best for your operation - first consulting with the aircraft OEM or primary avionics OEM who may have tested, or be beta-testing fully integrated solutions.

Indeed, legacy aircraft operators (with a vast array of avionics and systems equipage) face the biggest challenges in this area.

PEDs are a subset of HRM and also used for other purposes. There are risks with these devices, as covered under CRM. National Business Aircraft Association (NBAA), Flight Safety Foundation (FSF), along with reports emerging from Eurocontrol’s initiated portal www.AVBUYER.com

SKYbrary are all very helpful in addressing PEDs as well as cockpit distraction from Class 1 and 2 devices.

Existing EFIS upgrades are another way that some of the data features are appearing in cockpits. There are several major aircraft and equipment OEM upgrade programs available. While some include the flat panel displays themselves, others add a variety of paperless data options to existing advanced displays.

LINK ‘Link’ covers communication/data means between the cockpit and the ground (as opposed to cabin communications widely featured in publications and news today).

Aircraft Index see Page 4

▲

Perhaps the largest and fastest growing area of technology for aviation departments is that of Data. The paperless cockpit replacing charts and bringing weather onto devices separate to PFD/MFDs, has expanded way beyond the initial goals. Today, especially for fleets, equipment and software allows real time and post-flight performance data to be shared from anywhere to anywhere, to anyone who has access, at any time.

Linked to the equipment and aircraft manufacturers are very unique Tablet Interface Modules (TIM), acting as firewall buffers to allow system architecture that has been extensively certified, to be accessed for the acquisition of protected data-bus information that may be displayed to the crew, sent over airborne communications to ground-based centers, to company personnel, or be downloaded after landing for flight department use.

Cockpit tablet devices and their interface modules provide outputs via WiFi, USB, digital to ACARS and Satcoms, monitoring multiple aircraft systems - including Quick Access Recorders (QARs) and Surveillance Video. A lot of data acquisition serves the needs of HRM (mentioned above). It becomes increasingly important to all,

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Year

Model

Serial No.

1990

Challenger 601-3A

5066

1995

Challenger 601-3R

5176

2005

Citation CJ1+

525-0603

2002

Citation CJ2

525A-0099

2009

Citation CJ3

525B-0293

1994

Citation Ultra

560-0260

1997

Citation X

750-0016

2000

Citation X

750-0121

1988

Falcon 900B

30

1988

Falcon 900B

45

1994

Falcon 900B

138

1998

Falcon 2000

75

1987

Gulfstream GIV

1021

1987

Gulfstream GIV

1050

1998

Gulfstream GV

545

2003

Hawker 400XP

RK-358

2005

Hawker 400XP

RK-407

1997

Hawker 800XP

258317

2001

Hawker 800XP

258531

1995

King Air 350

FL-126

2000

Learjet 45

079

2008

Learjet 45XR

383

2000

Learjet 60

198

2001

Learjet 60

229

2007

Learjet 60XR

320

2007

Learjet 60XR

333

2014

Socata TBM-850

673

1997

Bell 407

53121

PS 2 Sept14_FinanceNov 19/08/2014 13:26 Page 3

capacity is available.)

Finally some of the data-link services such as Honeywell’s long-lasting Global Data Center offer Safety Management Integration and uplink of flight plans, as well as other messaging, oceanic, weather and NextGen communication-related services. This connecting of the dots between cockpit activity, SMS, CRM and HRM with ground-based real time support services, is a relatively new and exciting evolution of aviation.

AWARE

A MODERN, CONNECTED COCKPIT (ABOVE), AND A BUSY STAND-ALONE SYSTEM COCKPIT (BELOW).

The newer radars such as Rockwell’s Multiscan with predictive windshear and Honeywell’s IntuVue series, are taking predictive awareness to a new level using 3D penetration and therefore painting the full picture for flight crews.

Add the equivalent to human eye experience, using infrared EVS cloud-top and low visibility day and night penetration, from new Enhanced Vision Systems and you add a new dimension to cockpit awareness.

Upcoming multi-spectral cameras promise features not yet available with existing IR devices. View the EVS on the upcoming Elbit Skylens wearable HUD and you are truly situated with one foot in the future.

If that level of awareness was not enough, some of the newer landing and surface awareness tools such as Honeywell’s Smart Runway and Smart Landing, and Rockwell’s Fusion surface awareness providing similar features, greatly enhance safety and situational awareness. These products provide useful features such as runway, taxiway alert guidance and aircraft configuration setting reminders, like flaps.

Apart from integrated solutions on PFDs and MFDs, stand-alone synthetic vision systems, such as Universal’s Vision 1, provide both exocentric and egocentric landscape views of the external environment.

DISPLAY

The NextGen component of ‘Link’ is FANS. Beyond FANS, in part, is the ability for cockpits to participate in HRM - reporting the status and health of aircraft engines and other on-board systems.

The air to ground downlink to flight departments and company headquarters is becoming increasingly important to flight crews as we meet the expectations of our ‘now’ generation.

Some of the newer cockpit-related data services are called safety services and are not the same as the higher-cost broadband. Some of those relate to operational benefits of cockpit external linking providing efficient real-

92

AVBUYER MAGAZINE – September 2014

time routing, saving time and fuel. External data linked to EFB/Tablet devices is also available via safety services.

With the introduction of the new Ka-band (as opposed to existing Ku-band), the service capabilities of satellite, aircraft equipment and service providers will be greatly increased allowing (for example) more simultaneous voice and data connectivity.

Already a feature of the Iridium OpenPort Aero service, this feature will be facilitated

by Iridium even further with 66 new NEXT satellites, launching soon. (ViaSat and its popular Yonder is also expanding into Kaband for business aircraft when coverage www.AVBUYER.com

A number of MROs and aircraft OEMs provide sophisticated flat panel upgrade programs, often bundled with NextGen features such as FANS, PBN and ADS-B. However, as with Rockwell’s PL21 or just its IFIS, and Honeywell’s (Gulfstream GIV & GV) PlaneDeck, or G400, G450 & G550 PlaneView, additional features are provided to cockpits.

These and other current display devices include external video capability allowing them to display approved camera information such as enhanced vision. They also introduce useful tools such as a Flight Path Vector (FPV) providing on-screen flight guidance, reflecting the energy state of the aircraft and incorporating aircraft acceleration into flight direction cues.

Aircraft Index see Page 4

PS 2 Sept14_FinanceNov 19/08/2014 13:27 Page 4

Competition is ripe in the area of cockpit technology, and with Garmin fully-engaged in the Part 25 world, features useful to pilots and unique to a brand, are becoming the decision differentiators.

TRACK/POSITION Tracking and position of an aircraft is becoming more of an issue, and not just for the airlines. You would be surprised by all the cockpit-controlled systems that enable optimum position and tracking.

Some of those with a strong cockpit presence are: • A third FMS (increasing redundancy and dispatch), • Dual IRS (for oceanic operations, or for when GPS satellites or reception go down), • 4D trajectory and time prediction via advanced FMS and autothrottles (even dual), • 3D FMS mapping (predicting aircraft performance requirements).

Additionally, satcom systems provide the ability to track. As coverage becomes more global and user fees come down, users will

incorporate more of satcom’s enhanced features allowing 4D positional awareness at any time, to anyone, anywhere.

Deployable recorders combined with ELTs, and providing both voice and flight data have long been a desire of the NTSB to ensure recoverable information in the unfortunate event anything happens to an aircraft.

These may migrate into civil aviation going forward, as well as the visual recording of cockpit activity, if sensitivity concerns are ever overcome.

SUMMARY It is apparent with all the cockpit technologies covered in this article, that there is a lot of connectivity between various sub-systems that were previously stand alone.

The needs for data, communication, 4D positional tracking, and a way of displaying or sharing while being constantly aware of your situation are immediate. Because today’s generation Tweet, blog, message, Facebook and network all in ‘the now’ a similar expectation is apparent and emerging in the cockpit environment.

The ability to outreach or connect anywhere, anytime, with anyone, is all but avail-

able - or soon will be. Everything connects in so many ways so that SMS, CRM and HRM become just as much a part of the airborne experience as the flight profile itself. They enhance it, adding to safety, status awareness, and aircraft performance. The technologies and the software that enable them are all, in their own way, ‘NextGen’.

Ken Elliott is an avionics veteran of 40 years and more recently focused on NextGen. His work within the NextGen Advisory Council sub-committee brings him close to current and intended development effort.

Equally, his specialization in low-vision operations provides a deeper insight into one of the pillars of NextGen. Ken has served the aviation industry on three continents from light GA to large corporate aircraft. His current employer, Jetcraft, is a leading aircraft brokerage company with worldwide presence.

More from www.jetcraft.com, email: kenelliott@jetcraft.com ■

Security. Trust. Confidence.

2006 CJ3 | S/N 117 1795 TSN, SATPHONE, DFDR, CVR, PROV FOR HF, TAP ADVANTAGE ELITE/PROPARTS BELTED LAV, BRAVO STYLE ENTRY STEPS EU OPS 1 APPROVED DOCs 1, 11 & 12 c/w JULY/2014, DOC 8 c/w NOV/2010

2007 CJ3 | S/N 200 PHONE FAX

HOUSTON: 1 . 713 . 681 . 0075 1 . 713 . 681 . 0035

sales@paravionltd.com www.paravionltd.com

Years

AVION LTD PAR

as

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September 2014 – AVBUYER MAGAZINE

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PS 3 Sept14_FinanceNov 19/08/2014 13:36 Page 1

Plane Sense on Cockpit Avionics

The Front-Office Panel Makeover The carrot and stick arguments for an upgrade.

by Dave Higdon

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

MICROPROCESSOR WISE, TRANSISTOR FOOLISH The first-line ‘push back’ heard in discussions of panel upgrades seems to focus on the upfront costs, to the exclusion of other considerations. The beneficial aspects of a WAAS navigator, for example, factors in every time the LPV approach saves the flight from a diversion. Depending on the installation, it can also help an aircraft meet standards for Performance Based Navigation (PBN) Area Navigation (RNAV) and Required Navigation Performance (RNP) make up PBN and describe the ability of an aircraft to navigate under performance standards.

The RNAV aspect enables aircraft to fly on any desired flight path within the coverage of ground or space-based navigation aids – that is, within the capability limits of the on-board systems, or a combination of both capabilities.

Using RNP requires RNAV with the addition of on-board performance monitoring and alerting capability. A defining characteristic of RNP flying comes from the ability of aircraft navigation systems to both monitor its own performance and alert the flight crew should the aircraft stray from the performance requirement during an operation. The performance requirements of PBN are conveyed to the operator through navigation specifications that define the

▲

94

C

onsider this: By the time you read these words the FAA offers pilots nearly 3,500 commissioned LPV approaches; you know, ‘Localizer Performance with Vertical guidance’, those three-dimensional arrival procedures based solely on the Wide Area Augmentation System (WAAS). According to the FAA those nearly 3,500 runway ends populate 1,690 airports. A list of 404 airports boast localizer-performance approaches exceeding 550 runway ends.

Of course, all that satellite- and groundbased science may as well be from an episode of Star Trek for all the good it provides aircraft lacking a TSO'd WAAS GPS navigator, with the approved installation

needed for legal use in Instrument Meteorological Conditions (IMC). Runway ends lacking other precision options (and even less-precise WAAS GPS options) will all become inaccessible to such operators at one time or another. And the numbers of available runways will continue to shrink, significantly, on the FAA's approach to NextGen. Consider: every time an airplane fails to get in on a localizer approach – when WAAS GPS likely could have – the trip invokes costs beyond those of the successful arrival.

Yet we've heard operators and owners express their reluctance to upgrade with the necessary avionics “because we already have all the capabilities we need”.

That’s as may be - such owners often continue to maintain ADF receivers though they don't fly outside the US. And they often have older GPS navigators capable of guiding the aircraft through a GPS overlay approach for the NDB. If you are one such owner, however, we re-emphasize: runway options available to you will shrink as NextGen approaches. Conversely, updated avionics offer ways to increase your aircraft's utility –not merely to hold it even – and pay-off operationally.

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degree of precision required: RNAV 1, RNP 1, RNAV 2, RNAV 5, RNP 10, RNP 4 as well as RNAV (GPS) and RNAV (RNP) approaches.

So what does the above have to do with the economics of upgrading a panel on an older aircraft? If it is possible to meet one of these standards, savings in time and fuel spent - both en route and maneuvering for approach - can add-up quickly. And there is the ability to access some runway ends otherwise unavailable via an ILS or LOC Approach. The FAA's Performance Based Navigation Dashboard (www.faa.gov/nextgen/pbn/dashboard/) shows the airports and use of these standards. As NextGen continues to advance look for ever-more spots to show up on the map you see.

PENNIES SAVED MAY BE SPENT LATER...

Modern avionics are not exactly maintenance free. Nothing is in aviation, level of participation notwithstanding. Any avionics technician can attest to the reality that some electronics and mechanical components deteriorate over time, typically meaning more maintenance, and the potential for more-frequent delays or cancellations because the airplane is “in the shop again”.

Thus, one element to consider when weighing the costs of a panel makeover can come from examining the past few years of main-

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AVBUYER MAGAZINE – September 2014

“If it is possible to meet one of these standards, savings in time and fuel spent - both en route and maneuvering for approach can add-up quickly.” tenance costs for the avionics and electronics.

That is not usually at the front of the mind, however, when a decision-maker only sees the dollar signs for the upgrade in isolation from all other factors. The sophistication level of the stack and its capabilities may be a factor when the upgrade options serve to simplify both operational and maintenance needs, however, particularly when replacing glass cockpit stacks still based on 20th Century cathode ray tube (CRT) display technology, where an upgrade may also help boost the useful load of the aircraft (equating to extra carrying capacity, courtesy of the lighter weights of so many retrofit systems).

Seldom does a pilot or owner ruminate over having excess carrying capacity. And www.AVBUYER.com

every 6.76 pounds taken out in a panel upgrade translates into another gallon of Jet A the aircraft could carry. For every pound shed in the upgrade, another pound can go into the airplane elsewhere (cabin, luggage, etc.). When an operator begins to learn the benefits available from a panel refurbishment, spending those precious dollars becomes far more palatable.

MAKING CENTS OF A SENSIBLE DECISION Business aircraft operators enjoy the benefit of depreciating the costs of a panel upgrade at tax time. The net effect: A reduced final cost for the work. The company or individual's tax accountant can help define the limits and guidelines for employing depreciation to the company aircraft. With bonus depreciation those benefits can be reaped very quickly – or, alternatively, stretched over the more-typical depreciation schedule.

The ultimate decision needs the informative participation of a tax accountant. But regardless of the time-frame used and the level of upgrade, the tax benefits serve to reduce both tax liability and the net costs of the panel makeover. Here's where the news gets a little better than in recent years: •

First, lenders today increasingly view older aircraft as less risky prospects than at the peak of the great recession a few years back.

Aircraft Index see Page 4

PS 3 Sept14_FinanceNov 19/08/2014 13:37 Page 3

•

•

Second, so many options are available to renovate business turbine panels, and lenders are more eager to help out – even for older aircraft past the 20-year mark (and even for some of the fleet older than 30 years).

Third, the financing costs of upgrading the aircraft are typically deductible along with the capital costs for the system. And with terms today more flexible than in recent years – and with interest rates still uncharacteristically low – a window stands open to those willing to move before the window closes.

Evaluating the project with all the number-considerations in view can help assuage any fears held by the CFO.

FUTURE FLIGHT: KEEP UP OR FALL BEHIND....

Changes coming through NextGen implementation provide something of a catalyst, regardless of how unwelcome such spending might be, if the operator wants the aircraft to remain viable and efficient in the future airspace system. For an outline to a staged approach to becoming NextGen compliant, see ‘NextGen: How Will You Manage the Transition?’ on p82 of this edition.

The ADS-B Out mandate takes effect in 2020; FAA officials made clear at several recent appearances that the proliferation of Advertising Enquiries see Page 9

“And avionics shop owners already warn against waiting until 2018 or worse, 2019 to make the move. ‘[Such operators] likely will find the queue ahead of them stretches into mid-2020 or beyond...’” new solutions at various cost levels satisfies them that no implementation delay is needed – meaning, essentially, that it's up to operators to beat the deadline.

And avionics shop owners already warn against waiting until 2018 or worse, 2019 to make the move. “[Such operators] likely will find the queue ahead of them stretches into mid-2020 or beyond,” the owner of a Midwest avionics shop told AvBuyer Magazine. “We're only now starting to hear from customers about updating their old jets or turboprops – and we're putting them on a list and getting to them as fast as we can… But that list grows a little longer every quarter.”

Still, such a decision demands consideration of one more factor: How long the operator/owner expects to keep the www.AVBUYER.com

aircraft in question.

“If the owner plans to trade or sell inside the next couple of years, we like to talk to them about what they plan to do to replace it,” added an avionics shop foreman in Florida. “We'll do whatever they want, and if it's an upgrade that they expect will make the airplane more valuable or easy to sell, we try to explain that the theory doesn't always work...”

The aircraft being upgraded needs to be kept for at least long enough to take advantage of the full depreciation available, various operators counsel. “Still, you can't count on getting back out, dollar-fordollar, what went into even a recent upgrade,” the foreman added.

Another avionics shop operator takes a different view, however. “If the aircraft is destined to be sold any time within four years of an upgrade, then consider shopping for an airplane already equipped as desired – or, one that meets the changing mission that you can upgrade to your needs.”

In the long term, he concluded, the panel upgrade is a value leader that benefits the operator on many levels, and which can increase mission-completion rates from the very start. “The performance options, the alternative approach options, the reduced maintenance – and the lower demand on the electrical system...what's not to like?” ■ September 2014 – AVBUYER MAGAZINE

97

Plane Sense 4 Sept14_FinanceNov 19/08/2014 13:38 Page 1

Plane Sense on Cockpit Avionics

Today’s Cockpit Avionics: The Cost of Maintenance.

by Steve Watkins

C

ockpit avionics are a lot different now than when I started as a newly minted mechanic and pilot, more than 40 years ago. The most sophisticated avionics system that I experienced back then was a NavCom radio with a VOR Indicator. It was a few years after my start in aviation when they came out with the latest and greatest navigation aid, the Apollo LORAN. Some of you may recall LORAN, but the only place to find these units today is in an aircraft that is on display at a museum.

It is common knowledge that flight crews like to improve the safety of flight with all the bells and whistles that do more than just look pretty. Head-Up Displays, infrared/thermo cameras, traffic, weather and ground avoidance systems, are now relatively common, with the Future Air Navigation System (FANS), Automatic Dependent Surveillance-Broadcast (ADS-B) being the latest technologies that will soon be a requirement in the cockpit to reduce human error and improve safety. But there is a price to pay to keep all this technology performing the way it is intended.

Cockpit avionics maintenance can become a costly challenge when you need to diagnose where a failure originated.

There are Avionics Maintenance Programs that cover the repair of the aircraft electronics and some may include troubleshooting allowances. For an annual and/or hourly fee, these programs offer repairs and, if necessary, loaner units, and they can be a good cost-effective program for many operations. If you have no avionics repair needs, these programs may look expensive, but it does not take many equipment failures to make a program worthwhile over a period of time.

EXPENSIVE FIX? Today, most avionics boxes are exchanged with a loaner as long as the problem is isolated to the black box or instrument, but when it turns into wiring, circuit breakers, or some other component that provides information to the black box, it usually means extended hours of troubleshooting that may or may not be covered by a main-

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AVBUYER MAGAZINE – September 2014

tenance program and can become an expensive fix.

In the good old days, a technician could climb into the bowels of the aircraft with the trusty Volt/Ohm meter and perform minor tests. With today’s complex wiring, transistors, diodes and computers, the old troubleshooting methods do not even come close to adequate.

Now it takes special training, sophisticated test equipment, laptops or tablets with special software that many shops may not have at their disposal. So troubleshooting labor hours can run into astronomical numbers, and budgeting for this can be a major challenge for the maintenance department.

For older equipment, there are still ‘Mom and Pop’ avionics shops across the country, but for newer, more complexly equipped aircraft, you need access to trained and knowledgeable technicians.

Several of the large non-OEM-associated maintenance shops go through the extra expense to obtain repair authority and factory train their technicians. This allows them to provide in-house advanced avionics troubleshooting and repair.

Some of these shops also have remote locations and provide road service, if requested. When your selected shop sends technicians to a remote location, you should expect to pay for their travel cost, labor hours for the travel, and their expenses, but it can be well worth it to get the airplane back in the air.

Avionics repairs in remote areas of the world should be considered in your maintenance budget planning too. Consider the capabilities of the shops in the regions you plan to visit, and then consider worst-case scenarios. (This caution should be applied to all aspects of maintenance on these types of international or remote flights.)

Your passengers can live through a flight without movies or the internet functioning, but a failure of your HF radios below your minimum number can cause you to not only cancel the flight, but require both loaner units and technicians to be brought to your aircraft... Needless to say, it can be costly. www.AVBUYER.com

CONSIDERING MEL Thankfully, today’s sophisticated equipment is very reliable, with redundant systems along with a Minimum Equipment List (MEL) for your aircraft, so you can usually get the aircraft to a location that is qualified to work on your equipment. A problem can occur when a company has a MEL that is not specific for their aircraft.

Using the manufacturer’s MEL or a “Generic MEL” that can be obtained easily through the OEM or on the internet without a lot of expense is sufficient 90% of the time. If you have a Minimum Equipment List specifically designed for your aircraft with its current avionics, it should allow you to relocate to another location with facilities that have appropriate capabilities to make the repairs.

A well thought out and approved Minimum Inspection List is even more critical when you are operating in locations like Africa or Asia.

Avionics in today’s aircraft are the most reliable that I have seen in my aviation maintenance career. Gone are the days of a gyro tumbling or a needle sticking on the indicator glass. But troubleshooting any related failures on cockpit systems today is more complex, calling for qualified and experienced technicians to avoid any unexpected budget-breaking maintenance events.

Steve Watkins is Technical Services Manager, Western Region for Jet Support Services, Inc. (JSSI). Steve has been an A&P mechanic, IA and Private Pilot for over 35 years and was a Designated Mechanics Examiner in Wichita, KS and Long Beach, CA. He has also spent time as Director of Maintenance and Chief Inspector for various FAR 135 and FAR 145 operations, owned his own maintenance shop as well as instructed at an A&P technical school and is an active member of the AMT Society.

Contact Steve at: SWatkins@jetsupport.com ■ Aircraft Index see Page 4

Jetblack September_Layout 1 18/08/2014 16:22 Page 1

GAMA SEPT14_GAMA DEC05 19/08/2014 13:07 Page 1

GAMA SECOND QUARTER 2014 SHIPMENT ANALYSIS

GAMA Second Quarter 2014 Shipment Analysis

by Mike Potts ood news! Evidence of the developing recovery continues to abound in the latest quarterly report of Business Aviation aircraft deliveries and billings issued by the General Aviation Manufacturers Association. Aircraft shipments for the first half of 2014 reached 1,110 units, up 4.8 percent from the 1,059 aircraft delivered during the same period in 2013.

Billings rose proportionately, by 4.5 percent to $10.9 billion, which is an encouraging sign indicating that the recovery is beginning to spread more evenly through the industry. By contrast, at this time last year billings were up 26.4 percent while deliveries rose a more modest 8.9 percent.

The year would finish with billings up 24 percent on a deliveries gain of just 4.3 percent. The balance we are seeing this year is symptomatic of a much more healthy and widespread recovery.

Also unlike last year, business jets are leading the recovery in 2014 with 318 units, up 12.4 percent from a year ago when jets were the worst-performing category in the market, trailing the previous year’s deliveries by 4.1 percent.

Turboprops, which led the market last year with an astounding 70.6 percent gain, are the weakest segment in the current GAMA report, with 272 units, down slightly from the 276 delivered in the same period last year. Piston products are up 4.0 percent at 520 units.

Overall, the market appears to be in the midst of a solid - but not especially spectacular - upswing. Both the timing and rate of growth appear to be consistent with what Honeywell and other industry forecasters

G

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AVBUYER MAGAZINE – September 2014

predicted the market would perform like in the remaining years of this decade. The good news is that those forecasts predict a period of steady growth, culminating in a return to market levels similar to what we enjoyed in the 2005 through 2007 timeframe (some of the strongest years in our industry’s history).

Adhering to GAMA’s previous position that the current recovery is fragile, GAMA President and CEO Pete Bunce remarked “there is still a great deal of work that remains to make this recovery sustainable over the long term.” He called on US leaders in Washington to implement the Small Airplane Revitalization Act and re-authorize the US Export-Import Bank to help finance future aircraft purchases.

A new piston OEM joined GAMA’s list this quarter, and with the release of the current report GAMA simultaneously issued an amended version of its 2013 Year-End report containing TECNAM deliveries for that year for comparison purposes. And for the first time, the shipments of Beechcraft and Cessna were combined under the listing of Textron Aviation.

Furthermore, Gippsland is now known as Mahindra Aerospace (its GA8 Airvan is now called the Airvan 8), and Liberty Aircraft is now called Discovery Aviation.

THE JET MARKET Turning to the specifics of the jet market, we see that the lower end of the segment, which has been in recession since 2008, is finally beginning to turn around. Of the eight jet makers reporting deliveries this year, four have improved numbers, one is even and three did not match their last-year www.AVBUYER.com

totals. Taken at face value, this may not have the sound and feel of recovery, but the companies with gains have mostly double-digit percentage increases while the companies trailing last year’s results did so only by small margins. Moreover, three of the four with gains are significant producers of smaller jets.

Bombardier continues to lead in business jet deliveries, with 81 units for the year, down from the 84 reported last year for the same period. For just 2Q 2014 Bombardier had 38, compared with 45 last year. Bombardier’s totals were negatively affected in the short-term by its transition from the Challenger 300 to the new Challenger 350 model, its second largestselling product. It seems unlikely that Bombardier will finish 2014 with a negative delivery total.

Close behind Bombardier, and close to challenging for the lead in jet deliveries is Gulfstream with 77 units, up 18.4 percent from the first half of last year when it delivered 65 aircraft. For just 2Q 2014, Gulfstream delivered 38 units, up from the 36 it reported in 2013.

Third in jet deliveries was Cessna with 71 units, up a remarkable 36.5 percent from last year, when it had 52. 2Q 2014 was particularly strong for Cessna, with 36 jet ❯ deliveries, up on the 20 it reported in 2Q Aircraft Index see Page 4

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GAMA SEPT14_GAMA DEC05 19/08/2014 14:54 Page 2

GAMA SECOND QUARTER 2014 SHIPMENT ANALYSIS

CESSNA’S M2 - HELPING THE LIGHT JET UNIT UPTICK

2013. This is strong evidence that the lighter-end of the jet market is on the upswing. Prior to this year, jets below the super-midsize category have not been selling as well as the larger models.

Gulfstream is the billings leader in the jet category with a total $3.9 billion for the six-month period. Bombardier was second with $3.16 billion, followed by Dassault with $1.03 billion. (It’s difficult to gage the combined billings of Beechcraft and Cessna, since the $1.31 billion incorporates billings for turboprops and pistons.)

The companies with lower delivery and billings numbers are nonetheless also doing well. Embraer finished fourth for deliveries with 49 units, up from the 41 it had last year. Dassault was fifth with 25 units, down from the 29 deliveries in the first half of 2013. Newly rejuvenated Eclipse made nine deliveries in the first half, including four in 2Q. The airliner-based business jet appears to be back to normal after faltering slightly.

Both Boeing and Airbus delivered three units in the first half of this year, the same number as last year for both OEMs. Beechcraft continues to act as a spoiler in the jet market, with the six units it delivered at fire-sale prices to clear inventory in 1Q 2013 hanging on like Marley’s ghost.

Without the Beech deliveries, this year’s jet market is actually 14.8 percent larger than last year’s.

THE TURBOPROP MARKET The turboprop market was basically flat in the last quarter, with traditional business turboprops (not counting the agricultural aircraft) totaling 162 units, compared with

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AVBUYER MAGAZINE – September 2014

165 a year ago. While turboprops had the weakest growth performance among the segments, the turboprop market is actually doing pretty well. In fact, it is the segment that is closest to being “fully recovered” from the downturn that followed 2008.

The market today is slightly ahead of the 158 units it recorded during the same period in 2006 (at that time considered a banner year) and is slightly above the 157 deliveries in the first half of 2010. By comparison, the jet market for the same period in 2006 was at 414 units and in 2010 was at 355 units. So while turboprops are approximately equal with their 2006 and 2010 numbers, the jet market is still 23.18 percent below its 2006 benchmark and 10.42 percent behind 2010.

Compared to the market-high year of 2008, when turboprop deliveries totaled 221 and jets reached 663 at the mid-year point, today’s turboprop market is 26.7 percent off the peak pace while business jets are 52 percent behind. So while we would prefer to see the turboprop numbers continuing to climb, this is still the best performing segment of the market compared with historic peak performance, and the market is generally quite healthy. Of the nine turboprop makers reporting deliveries to GAMA in the first half of this year, two have improved numbers, three are even and four are down - although of the four with negative totals, two were off by only a single unit, one was down by just two and the other by three.

Beechcraft leads the turboprop market in 2014 with 56 units, down from 58 last year, but the company’s performance was bolstered by a strong 2Q in which it delivered 34 units, up from 24 the year before (a 41.67 www.AVBUYER.com

percent gain).

Cessna was in second place with 42 turboprop deliveries, down from 45 a year ago. Cessna and Beech swapped the number one and number two positions between 1Q and 2Q, largely because of Beech’s strong 2Q performance. Cessna led Beech at the end of 1Q by 24 units to 22. Collectively Textron Aviation, which now owns both Beechcraft and Cessna, represents 60.5 percent of the total business turboprop market.

The rest of the turboprop market is performing well: Socata, which is introducing an upgraded version of its TBM this year, vaulted into the somewhat unexpected position of third place in the market on the strength of a particularly strong 2Q performance. Of the 20 airplanes Socata delivered this year, 15 came in the second quarter. Socata’s total is 17.6 percent ahead of the 17 units it delivered in the first half last year.

Pilatus (which has traditionally held the number three position in recent years) finished fourth with 18 units for the half and 11 for 2Q. Both the half-year and the quarterly totals matched last year’s results. Also recording the same numbers this year was Piper, which had 14 for the half and eight for the quarter.

Rounding out the turboprop market was Quest with eight units for the half and four for the quarter (down from last year), and Pacific Aero which had three this quarter (up from last year). Extra, which delivered one turboprop in the first quarter of last year, has so far delivered none this year.

THE PISTON MARKET GAMA reports the piston market growing at a rate of four percent so far in 2014, an improvement over the 2.7 percent it grew in 2013. With the addition of new companies such as TECNAM, it becomes more difficult (but not impossible) to assess the market. It is clear that the piston market has a long way to go to match the 1,186 airplanes delivered in the first half of 2006 – the best year for piston deliveries in what GAMA considers the modern era of business aircraft manufacturing (since 1994).

The piston market is about 52.25 percent below its peak – or at about the same point in the recovery cycle as the jet market is today. The addition of TECNAM’s totals skews these numbers, however. This year TECNAM adds 43 airplanes to the pistonengine count (about 9 percent of the total).

In one-way thinking, this could mean the piston market has been artificially enlarged by nine percent through the addition of a new manufacturer. On the other hand it could be argued that piston manufacturers come and go all the time (Mooney, Aircraft Index see Page 4

GAMA SEPT14_GAMA DEC05 19/08/2014 16:54 Page 3

GAMA SECOND QUARTER 2014 SHIPMENT ANALYSIS for example) and that the customer base for piston airplanes is a constant. Based on this assumption, the market will buy as many aircraft as it needs, wants or can afford, regardless of who builds the products.

Looking at the piston market’s performance last quarter, there were 12 piston OEMs that reported deliveries to GAMA (discounting the agricultural airplane OEM). Of these, five had improved numbers in the first half of 2014 and seven had declines (including newcomer TECNAM).

The market leader was Cirrus with 140 units, up from 130 last year. Second was Diamond with 103, up sharply from the 52 it reported last year. Cessna was third with 78, down 24.3 percent from the 102 reported last year. Cessna’s second quarter totals were also well below last year’s, at 44 units compared with 66 in 2013. Piper was fourth with 23 units for the quarter and 44 for the year (down from 55), while newcomer TECNAM was fifth with 31, down from 35.

Collectively these five OEMs accounted for 83 percent of all single-engine piston deliveries. Others included Beechcraft with 17, down from 18; Extra with 17, up from 15; American Champion at 12, down from 13; and the newly-renamed Mahindra Aerospace with 10, up from eight.

Rounding out the single engine market were Waco with six, up from four; Cubcrafter with five, down from seven; and

Maule with one, down from two.

The piston twin segment had a threeunit loss, down from 58 to 55 in spite of the addition of TECNAM to the mix. Diamond led the piston twin market with 21 units, up from 12 last year. TECNAM and Piper were tied with 12 each for the half, although TECNAM’s total represented a two-unit gain from a year ago while Piper had five fewer units than in 2013.

Beechcraft brought up the rear with 10 piston twin deliveries, down from 19 last year.

Like the jet and turboprop markets, the piston segment still has a majority of players in negative numbers. Until the majority of manufacturers are reporting gains from a year ago, the quality of the current recovery has to be considered suspect. Nonetheless, the trend is upward and it is very encouraging to see the lower portion of the jet market starting to perform better as well as the upper tier.

The long-term prospects for this recovery are likely to be quantified in the next two quarters. If the recovery continues to develop we could see a jet market approaching 800 units by year’s end. That would qualify as a homerun, and anything above that number should make the industry’s leaders ecstatic. ❯ To view a full reproduction of GAMA’s Second Quarter 2014 shipment report, see ❯ overleaf.

Airplane shipments1,2,6 by type: MANUFACTURED WORLDWIDE SINGLE-ENGINE PISTON

Airplane shipments1,2,6 by type: MANUFACTURED IN U.S. ONLY 3

Q1

Q2

YTD

214

251

465

SINGLE-ENGINE PISTON

Q1

Q2

YTD

134

169

303

MULTI-ENGINE PISTON

25

30

55

MULTI-ENGINE PISTON

10

12

22

TOTAL PISTON AIRPLANES

239

281

520

TOTAL PISTON AIRPLANES

144

181

325

SINGLE-ENGINE TURBOPROPS

103

113

216

SINGLE-ENGINE TURBOPROPS

90

84

174

MULTI-ENGINE TURBOPROPS

22

34

56

MULTI-ENGINE TURBOPROPS

22

34

56

TOTAL TURBOPROP AIRPLANES

125

147

272

TOTAL TURBOPROP AIRPLANES

112

118

230

BUSINESS JETS

154

164

318

BUSINESS JETS

89

80

158

TOTAL TURBINE AIRPLANES

279

311

590

TOTAL TURBINE AIRPLANES

201

198

388

GRAND TOTAL

518

592

1,100

GRAND TOTAL

345

379

713

NOTES FOR THE ABOVE AND FOLLOWING TABLES: 1. A shipment occurs when a general aviation airplane is shipped from its production facility to a customer located anywhere in the world. 2. Shipments may include deliveries to a fractional operator owned by the company or to an aircraft dealer. 3. An aircraft is considered manufactured in the United States when produced under an FAA production approval and in Europe when under an EASA production approval. 4. Military airplane shipments are not included in shipment table totals. 5. Company billings are not reported.

Where available, GAMA estimates total billings using public information including B&CA Purchase Planning Handbook 2014. 6. CubCrafters CC11, Diamond Aircraft HK36 Motor Glider and Flight Design GmbH ASTM CT Series models are included in civil make-model shipment total, but not summary tables. This change is intended to properly capture all deliveries by the companies listed while maintaining a consistent baseline of shipments from previous years' reports. GAMA will further integrate CS-VLA and S-LSA aircraft into future shipment reports.. 7. Airbus and Boeing twin aisle shipments will be identified in the report as opposed to in the footnotes going forward. GAMA, however, is not including the value of twin aisle airplane shipments in the calculation of billings. 8. Discovery Aviation was previously reported as Liberty Aircraft. 9. Mahindra Aerospace and the Airvan 8 were previously reported as GippsAero Pty. Ltd. and the GA-8 Airvan. 10. Piaggio Aero does not provide quarterly data, but reports airplane deliveries to GAMA on an annual basis.

11. TECNAM Aircraft is a new addition to the GAMA shipment report in second quarter 2014. The 2013 report has been amended to also include TECNAM data. 12. Textron Aviation was formed on March 14, 2014 and includes shipments by Beechcraft Corporation and Cessna Aircraft Company combined. 13. Textron Aviation first quarter data includes 8 King Air, 1 Bonanza, 1 Baron, and 2 T-6 airplanes delivered by Textron Aviation.

Advertising Enquiries see Page 9

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September 2014 – AVBUYER MAGAZINE

103

GAMA SEPT14_GAMA DEC05 19/08/2014 14:55 Page 4

GAMA SECOND QUARTER 2014 SHIPMENT REPORT

Second Quarter Airplane Shipment Report 2014 MAKE & MODEL

Q1

Q2

YTD

AIRBUS7

MAKE & MODEL

Q1

Q2

YTD

CIRRUS SR22T

26

35

61

ACJ318

0

0

0

TOTAL UNITS

60

80

140

ACJ319

1

0

1

TOTAL BILLINGS

$40,204,845

$51,555,749

$91,760,594

ACJ320

0

2

2

CUBCRAFTERS 6

ACJ321

0

0

0

CC11-100 SPORT CUB S2

0

0

0

ACJ330

0

0

0

CC11-160 CARBON CUB SS

14

11

25

TOTAL UNITS

1

2

3

CC18-180 TOP CUB

0

5

5

TOTAL BILLINGS 7

$83,000,000

$182,000,000

TOTAL UNITS

14

16

30

TOTAL BILLINGS

$2,946,744

$3,553,152

$6,499,896

$265,000,000

AIR TRACTOR AT-401B

1

0

1

DASSAULT FALCON JET 5

AT-402A

0

0

0

FALCON 900LX

1

1

2

AT-402B

3

9

12

FALCON 2000LXS

2

5

7

AT-502A

0

1

1

FALCON 2000S

3

2

5

AT-502B

18

13

31

FALCON 7X

3

8

11

AT-504

2

1

3

TOTAL UNITS

9

16

25

AT-602

5

4

9

TOTAL BILLINGS

$349,500,000

$684,500,000 $1,034,000,000

AT-802

3

7

10

DIAMOND AIRCRAFT 6

AT-802A

13

8

21

HK-36

0

0

0

TOTAL UNITS

45

43

88

DV20

0

0

0

TOTAL BILLINGS

$21,449,673

$21,647,255

$43,096,928

DA20-C1

3

3

6

DA40 (ALL)

48

49

97

AMERICAN CHAMPION 7EC CHAMP

0

0

0

DA42 (ALL)

9

12

21

7ECA AURORA

2

0

2

TOTAL UNITS

60

64

124

7GCAA ADVENTURER

0

0

0

TOTAL BILLINGS

$24,602,325

$26,947,300

$51,549,625

7GCBC CITABRIA EXPLORER

1

2

3

DISCOVERY AVIATION 8

8GCBC SCOUT

0

2

2

XL2

0

0

0

8KCAB SUPER DECATHLON

2

0

2

TOTAL UNITS

0

0

0

8KCAB EXTREME DECATHLON 3

0

3

TOTAL BILLINGS

$0

$0

$0

TOTAL UNITS

8

4

12

ECLIPSE AEROSPACE, INC.

TOTAL BILLINGS

$1,402,200

$635,600

$2,037,800

BOEING BUSINESS JETS7

ECLIPSE 550

5

4

9

TOTAL UNITS

5

4

9

$14,475,000

$11,580,000

$26,055,000

BBJ

0

0

0

TOTAL BILLINGS

BBJ 2

0

1

1

EMBRAER 5

BBJ 3

0

0

0

PHENOM 100

3

6

9

BB787-8

2

0

2

PHENOM 300

14

16

30

BOEING 747-8

0

0

0

LEGACY 600/650

2

6

8

TOTAL UNITS

2

1

3

LINEAGE 1000/E190 VVIP

1

1

2

TOTAL BILLINGS 7

$0

$68,000,000

$68,000,000

SHUTTLES (ERJS AND E-JETS)

0

0

0

TOTAL UNITS

20

29

49

$248,453,000

$394,046,000

$642,499,000

BOMBARDIER LEARJET 70/75

6

2

8

TOTAL BILLINGS

LEARJET 60XR

0

0

0

EXTRA AIRCRAFT

CHALLENGER 300/350

14

9

23

EA300

8

9

17

CHALLENGER 605

6

8

14

TOTAL UNITS

8

9

17

GLOBAL 5000/6000

17

19

36

TOTAL BILLINGS

$3,120,000

$3,510,000

$6,630,000

CL850/870/890

0

0

0

FLIGHT DESIGN GMBH 6

43

38

81

TOTAL UNITS TOTAL BILLINGS

$1,569,500,000

$1,587,900,000 $3,157,400,000

CIRRUS AIRCRAFT

ASTM CT SERIES

20

24

44

TOTAL UNITS

20

24

44

TOTAL BILLINGS

$2,313,940

$2,830,320

$5,144,260

12

18

CIRRUS SR20

6

16

22

GULFSTREAM AEROSPACE CORP. 5

CIRRUS SR22

28

29

57

GULFSTREAM 150 / 280

104

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

6

Aircraft Index see Page 4

GAMA SEPT14_GAMA DEC05 19/08/2014 14:56 Page 5

GAMA SECOND QUARTER 2014 SHIPMENT REPORT MAKE & MODEL

Q1

Q2

YTD

MAKE & MODEL

Q1

Q2

YTD

GULFSTREAM 450/550/650

33

26

59

P92JS

2

2

4

TOTAL UNITS

39

38

77

P2002JR

0

0

0

TOTAL BILLINGS

$2,093,200,000

$1,810,000,000 $1,903,200,000

P2008JC

8

10

18

P2006T

6

6

12

AIRVAN 8

9

1

10

TOTAL UNITS

50

51

101

TOTAL UNITS

9

1

10

TOTAL BILLINGS

$7,240,340

$7,786,245

$15,026,585

TOTAL BILLINGS

$6,849,270

$761,030

$7,610,300

TEXTRON AVIATION 12

MAHINDRA AEROSPACE 5, 9

MAULE AIR, INC.

BEECHCRAFT CORPORATION 13

M-4-180V

0

1

1

BONANZA G36

6

11

17

MX-7-180B

0

0

0

BARON B58

3

7

10

M-7-260C

0

0

0

KING AIR C90GTX

2

5

7

M-9-235

0

0

0

KING AIR 250

7

10

17

TOTAL UNITS

0

1

1

KING AIR 350I/ER

13

19

32

TOTAL BILLINGS

$0

$60,000

$60,000

TOTAL UNITS

31

52

83

MOONEY AIRCRAFT

TOTAL BILLINGS (BEECHCRAFT) $161,983,610

$248,819,660

M20R OVATION

0

0

0

CESSNA AIRCRAFT COMPANY

M20TN ACCLAIM

0

0

0

172R SKYHAWK

0

0

0

TOTAL UNITS

0

0

0

172S SKYHAWK SP

25

30

55

TOTAL BILLINGS

$0

$0

$0

182T SKYLANE

0

0

0

T182T TURBO SKYLANE

0

0

0

PACIFIC AEROSPACE LTD. PAC 750XL

1

3

4

206H STATIONAIR

0

0

0

TOTAL UNITS

1

3

4

T206H TURBO STATIONAIR

6

12

18

TOTAL BILLINGS

$1,830,000

$5,366,005

$7,196,005

400 CORVALIS TTX

3

2

5

208 CARAVAN 675

2

5

7

PIAGGIO AERO 10 P.180 AVANTI II

N/A

N/A

0

208B GRAND CARAVAN / EX

22

13

35

TOTAL UNITS

0

0

0

510 CITATION MUSTANG

1

2

3

TOTAL BILLINGS

$0

$0

$0

525 CITATION M2

11

8

19

525A CITATION CJ2+

1

1

2

PILATUS PC-6

0

0

0

525B CITATION CJ3

3

3

6

PC-12

7

11

18

525C CITATION CJ4

6

6

12

TOTAL UNITS

7

11

18

560 CITATION XLS+

4

6

10

TOTAL BILLINGS

$31,892,000

$50,116,000

$82,008,000

680 CITATION SOVEREIGN+

9

7

16

750 CITATION X+

0

3

3 191

PIPER AIRCRAFT, INC PA-28-161 WARRIOR III

0

0

0

TOTAL UNITS

93

98

PA-28-181 ARCHER III

11

8

19

TOTAL BILLINGS (CESSNA)

$432,128,560

$470,686,970

PA-28R-201 ARROW

0

4

4

TOTAL BILLINGS (COMBINED)13 $594,112,170

$719,506,630

PA-34-220T SENECA V

0

2

2

THRUSH AIRCRAFT, INC.

PA-44-180 SEMINOLE

$1,313,618,800

7

3

10

S2R-T34

1

2

PA-46-350P MALIBU MIRAGE 6

9

15

S2RHG-T65

0

0

0

PA-46R-350T MATRIX

4

2

6

S2R-T660

0

0

0

PA-46-500TP MERIDIAN

6

8

14

S2R-G10

0

1

1

TOTAL UNITS

34

36

70

S2R-H80

11

8

19

TOTAL BILLINGS

$28,370,640

$33,161,709

$61,532,349

TOTAL UNITS

12

11

23

TOTAL BILLINGS

$12,739,120

$9,424,424

$22,163,544

QUEST AIRCRAFT COMPANY KODIAK 100

4

TOTAL UNITS

4

TOTAL BILLINGS

$7,100,000

4

8

WACO AIRCRAFT COMPANY

4

8

2T-1A-2

2

1

3

$7,900,000

$15,000,000

YMF-5D

2

1

3

TOTAL UNITS

4

2

6

TOTAL BILLINGS

$1,543,000

$810,250

$2,353,250

GRAND TOTAL AIRCRAFT 6

773

873

1,646

SOCATA TBM 900

5

15

20

TOTAL UNITS

5

15

20

TOTAL BILLINGS

$18,400,000

$55,510,000

$73,910,000 GRAND TOTAL AIRCRAFT BILLINGS

TECNAM AIRCRAFT 11 ASTM - LSA

32

26

58

P2002JF

2

7

9

Advertising Enquiries see Page 9

3

$5,609,863,343

$6,483,921,669

$12,093,785,012

■ www.AVBUYER.com

September 2014 – AVBUYER MAGAZINE

105

SMS SEPT14_Pre-Owned Sales Jan06 19/08/2014 14:58 Page 1

SMS & SMALL FLIGHT OPS - PART 3

Scaling an SMS: Establishing Safety Management Systems in Small Operations (Part 3).

by Mario Pierobon his month we conclude a threepart series on Safety Management System (SMS) implementation for small air operators. Using the Input-ProcessOutput (IPO) functional mode as our framework, our focus has been on the requirements for the implementation of SMS scaled to small operators (the input), and the specific efforts needed for implementation (the process).

The implementation process comes with a first thorough risk assessment of the organization whereby the key hazards and risks faced by the organization are defined together with the necessary additional defences needed for improved safety performance. Once the system is in place – the output is available - the organizational effort needs to be on how to keep the output to a good standard – a SMS that is current and functional.

T

106

AVBUYER MAGAZINE – September 2014

A pre-requisite for the ongoing functionality and currency of the SMS is the organisational buy-in (in relation to this management tool), as discussed when the requirements for implementation were introduced in Part 1.

The developers of the SMS framework at the International Civil Aviation Organisation (ICAO) have foreseen an important component of SMS in support of its on-going currency and functionality, namely the continuous improvement component of safety assurance in SMS. This concept is ‘borrowed’ from quality management and refers to continuous alternation of the components of the ‘Plan > Do > Check > Act’ quality loop for ever-improved ‘customer satisfaction’.

Small flight departments – like all other organizations with SMS implemented – can only continuously improve if they are proactive in their effort to do so. Safety management canwww.AVBUYER.com

not be considered as a ‘one off’ exercise. It cannot rely only on an initial risk assessment because – in James Reason’s (author of Managing the Risks of Organisational Accidents) words – “there are currents acting within the safety space that lead the organization towards increased vulnerability. One of these currents is complacency.”

For an organization with an implemented SMS to be considered as operating safely, it needs to use all kinds of relevant and risk-assessed safety information – most eminently the information derived from the reports of near misses - and carry out the risk-mitigation actions required.

SAFETY VACCINES The implementation of the SMS will have come with an air safety reporting system in place. The reporting system is certainly to be Aircraft Index see Page 4

SMS SEPT14_Pre-Owned Sales Jan06 19/08/2014 14:59 Page 2

Near misses can provide qualitative insights into how small defensive failures can line up to create large disasters...

used in those serious instances that lead to ‘mandatory occurrence reports’, but should also be used in the cases of ‘near misses’ which Reason defines as “those instances that could have bad consequences but actually do not”.

Reason discusses several advantages related to collecting data from, and analysing near-misses. If the right conclusions are drawn and acted upon, they work like ‘vaccines’ to mobilize the system’s defences against more serious occurrences in the future - without damaging anybody or anything in the process.

Near misses can provide qualitative insights into how small defensive failures can line up to create large disasters, summarizes Reason.

Because near misses occur more frequently than bad outcomes, they yield the numbers required for more penetrating quantitative analyses. Near misses also provide a powerful reminder of the hazards confronting the Advertising Enquiries see Page 9

system, thus reinforcing a healthy sense of fear that prevents operational short-cuts.

SMALL ORGANIZATION HURDLES The problem with small organizations however is that available resources are scarce; especially in terms of time available for adequate oversight of the SMS by safety-competent personnel that could already be involved in several other tasks. Furthermore, small organizations may have very low aircraft utilization rates, leading to the availability of literally only a handful of air safety reports each year. Statistical analysis on such a limited dataset may be of limited use.

One way to overcome the problem of limited time among safety-competent personnel in small flight departments is to hire a safety manager as an external service provider. This practice is common in the Business Aviation www.AVBUYER.com

community (even with regard to the hiring of flight crews). Hiring a ‘part-time’ safety manager brings a two-fold benefit: the financial output is reduced by not having an additional ‘full-time’ staff member, and the return is maximized because of the experience brought in by a subject matter specialist.

The limited annual scope for data analysis can be overcome via the ever-increasing tendency for aviation safety data-sharing. The Commercial Aviation community has a wellestablished tradition for the sharing of ‘deidentified’ safety information - a trend that has already been undertaken more recently by several proactive players in the Business Aviation community.

The benefit of safety data-sharing is that contributors to such industry databases are enabled to access a data-set that is more comprehensive to the one they are able to access when focused on their operation only.

If you missed either of the previous two parts to this article outlining the input needed for adequate SMS implementation within a small organization, and the process of implementation in small organizations, feel free to contact us and request copies via editorial@avbuyer.com.

❯ Mario Pierobon holds a Master’s Degree in Air Transport Management from City University London and works as a Safety Management Consultant and Content Producer. He regularly writes about aviation safety and is currently involved in a major airside safety research project at Cranfield University in the UK. Contact Mario via marioprbn@gmail.com September 2014 – AVBUYER MAGAZINE

107

Charter Customer Services_Finance 19/08/2014 14:48 Page 1

CHARTER CUSTOMER SERVICES

Little Things, Big Difference Certification basics for Business Aviation managers.

by Patrick Margetson-Rushmore

ublic opinion is unusually important in the aviation industry. Customer research has shown that consumers discuss aviation and computing more than any other two types of industry. Travel can be emotive – business people do not quickly forgive or forget missing a vital meeting, or being too tired and frustrated at the meeting to function properly.

Executive aviation is, of course, synonymous with bespoke customer service. We operate with a fundamental goal that everything is possible and no request is a problem.

We want the passenger to arrive refreshed and at their best to conduct the day’s business. All executive charter operators pursue these objectives, but self-evidently not all operators are the same. What makes the difference?

Great staff are made, not born. Throughout the company, from office staff to pilots, cus-

P

108

AVBUYER MAGAZINE – September 2014

tomer service training should be valued as highly as operational training.

When a Personal Assistant telephones the operations department for a flight quote, the charter company’s representative on the line needs to be more than just polite: He or she should be able to respond quickly and comprehensively, supported by a suitable Customer Relationship Management (CRM) system. Don’t ask a past passenger if they have any particular needs or preferences; you should already know.

Equally, however, charter operators should not lazily assume that past requirements apply again, nor should they be afraid to ‘challenge the brief’ with informed, practical advice. Regular customers might not think to explain their exact requirements for a specific trip, merely requesting the service to which they have become accustomed. The operator therefore always has to be thinking creatively.

As an example, LEA operates from seven www.AVBUYER.com

bases around London. Regular customers who live and work to the west of London may have become used to flying from Luton or Farnborough airport. As arrangements are being made, the onus is on us to ask whether the customer is aware that LEA now operates flights from London Oxford and would that airport be more convenient?

Has the customer previously always flown from London to Paris with a group of four or five people in a Cessna Citation Excel aircraft (for example)? If travelling with only one colleague on this same trip, it should be pointed out that the Citation Mustang might be a more appropriate option on this occasion.

Great customer service does not mean unthinkingly doing whatever the customer suggests. Great customer service means understanding the customer’s wishes and then doing everything possible to meet those objectives, perhaps offering options the Aircraft Index see Page 4

Charter Customer Services_Finance 20/08/2014 10:50 Page 2

CHARTER CUSTOMER SERVICES customer was not even aware were options previously.

As the flight arrangements will probably have been made by a PA, the customer’s own first and main point of contact with the operator will be the pilots (and cabin attendant on larger aircraft). These visual first impressions really matter. Captain and crew are ambassadors, and should be wellgroomed and well-presented in every possible way. Interaction with customers must be utterly professional, thoroughly covering all the key aspects of safety, but should not be cold and mechanical.

Pilots who move to executive aviation after a career flying for commercial airlines, where customer interaction is minimal, often struggle with the transition to a more comprehensive blend of professional and personal skills. Again, training can help with that transition but, even so, not everybody makes the grade. I am always amazed when I see pilots standing by (but never LEA pilots, I hasten to add!) while the passengers carry their own luggage.

The cabin environment is essential too, which is one of the reasons why an operator should never shy from investing not only in new aircraft but also in new types. New air-

craft naturally look and smell pristine, as well as offering the latest standards in cabin comfort and design. Nevertheless, the older aircraft in the fleet should look and smell new too. Regular refurbishment of the cabin interior will help ensure that even the longserving aircraft continue to offer the latest in passenger luxury.

Too often, when the flight has been completed, the customer is forgotten. It is essential for an operator to value the post-flight relationship. This follow-up can be a very effective process, both in securing customer loyalty and as a means to improve service through feedback. In these challenging economic times, maintaining strong relationships with existing customers is arguably more important than ever before.

Every company, in any line of business, should have a unique selling point. After all, executive aviation, despite its connections with luxury and glamour, remains fundamentally a mechanical exercise. In so many ways, therefore, any two operators will be almost identical, meaning that you have to strive to make the difference.

For example, LEA was the first European operator to offer an inflight spa service for passengers on our larger jets, with fully-

trained clinicians providing beauty therapies and massages. And spa or not, the passengers on a flight should feel as relaxed as though they were sitting at home. The differences between two operators may only be small, but that is why those differences are so important. In customer service, detail is everything!

❯ Patrick MargetsonRushmore is a founding member of LEA and is responsible for the overall strategic development and financial control of the company. In the 1980s and early 1990s he worked in the City of London in corporate finance advising both private and public companies. Patrick is a board member of AirClub, the world’s leading corporate jet alliance, and also sits on various committees for the BBGA (British Business and General Aviation Association).

❯ More from www.flylea.com.

Do you have any questions or opinions on the above topic? Get them answered/published in AvBuyer Magazine. Email feedback to editorial@avbuyer.com

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September 2014

September 2014 – AVBUYER MAGAZINE

109

■

MarketIndicators Sept14_Layout 1 19/08/2014 15:01 Page 1

Market Indicators Pre-Owned Jet, Turboprop & Helicopter Markets

BizAv Activity US & Canada US-based July flight activity posted an increase from June to finish the period up 1.4% overall. All operational categories posted increases from the previous month with the fractional segment posting the largest increase, up 3.5% from June. Part 91 and Part 135 flight activity increased 0.2% and 2.5% respectively.

Aircraft category results were also positive with the exception of large cabin aircraft, down -1.2% from June. Turboprops, along with small and mid-size cabin aircraft posted increases of 2.6%, 1.7% and 0.9% in that order.

The largest month-over-month increase occurred in the fractional turboprop market which finished up 10.7%.

Reviewing year-over-year flight activity (July 2014 vs. July 2013), TRAQPak data indicates that July 2014 posted an increase of 1.5%; the eighth month in a row that we have seen a year-over-year increase in flight activity.

The results by operational category showed increases in the Part 91 and Frac-

110

AVBUYER MAGAZINE – September 2014

TABLE A

J une In Operation Fleet Aircraft # For Sale % Fleet For Sale 2014 % Fleet For Sale 2013 Change – % For Sale Full Sale Transactions Average Days on Market Average Ask Price (US$M)

W orldwide Trends B usiness Aircraft H elicopters J et T urbo T urbine P iston 1 9,719

1 4,256

2 0,185

9 ,649

C ommercial Airline J et T urbo

T OTAL A ll

2 5,196

9 ,554

9 8,559

2 ,332

1 ,104

1 ,305

5 99

5 51

4 58

6 ,349

1 1.8% 1 3.2%

7 .7% 7 .7%

6 .5% 6 .2%

6 .2% 6 .2%

2 .2% 2 .3%

4 .8% 4 .3%

6 .4%

- 1.4pt

0 .0pt

0 .3pt

0 .0pt

1 ,186 3 46 $ 4.508

- 0.1pt

0 .5pt

J anuary to June 2014 5 79 5 83 4 01

9 00

2 99

3 51

4 02

2 81

4 11

4 88

$ 1. 218

$ 1.278

$ 0.211 - 15.8%

- 18.4%

- 11.3%

75

1 51

3 ,948

Y TD – January to June 2014 vs 2013 % Change (Sale Transactions) Change (Avg Days on Market) % Change (Avg Ask Price)

8 .5%

- 16.1%

- 9.9%

- 57

36

-4

- 52

- 8.2%

- 1 4.4%

1 4.9%

- 8.3%

SOURCE: JETNET

increase in average asking price.

Commercial airliners are also reported by JETNET. Commercial turboprop YTD sale transactions are significantly lower, at 299, than commercial jets (900). For the first six months of

2014 there have been nearly 4,000 pre-owned jets, turboprops and helicopters sold, with both business jets and commercial jets leading all types.

MI www.jetnet.com

J uly 2014 vs June 2014 T urboprop S mall Cabin Jet M id-Size Jet L arge Cabin Jet A ll Combined

P art 91 0.9% 1.1% 0.4% -3.4% 0.2%

P art 135 5.0% 2.8% -0.2% 0.8% 2.5%

F ractional 10.7% 1.0% 2.8% 6.0% 3.5%

A ll 2.6% 1.7% 0.9% -1.2% 1.4%

P art 135 -3.2% -2.1% 2.2% 7.4% -0.4%

F ractional -7.1% 26.8% -3.0% -0.4% 2.0%

A ll -1.8% 4.0% 1.9% 5.0% 1.5%

J uly 2014 vs July 2013 T urboprop S mall Cabin Jet M id-Size Jet L arge Cabin Jet A ll Combined

P art 91 -0.7% 4.4% 4.9% 5.0% 2.7%

tional markets, up 2.7% and 2.0% respectively.

The Part 135 market recorded a slight decrease, down -0.4%; this marks the first yearover-year decline in the charter sector since September 2012.

Flight activity by aircraft category was up for all the jet categories with large cabin flight activity leading the way, again, up 5.0%. Small www.AVBUYER.com

and mid-size cabin aircraft posted year-overyear increases of 4.0% and 1.9% in that order.

The turboprop industry posted a slight yearover-year decrease, down -1.8%. The largest growth for an individual segment continues to occur in the small cabin fractional market with a year-over-year increase of 26.8%.

MI www.argus.aero

▼

Highlighted in Table A are key worldwide trends across all aircraft market segments, comparing June 2014 to June 2013, as released

by JETNET. “Fleet For Sale” percentages for business jet and commercial jet market sectors were down in the June comparisons, but stayed the same or increased slightly in the other markets...

The numbers represent the lowest fleet percentage (11.8%) of business jets ‘For Sale’ that JETNET has seen since the great recession began. However, the total number ‘For Sale’ is still well above the 2,300 mark. Some very good news, however, is that business jets are showing a strong start in the first six months of 2014.

Along with an 8.5% increase in pre-owned sale transactions, they are taking less time to sell (57 days) than last year. This is likely a direct result of an -8.2% decrease in average asking price.

Conversely, business turboprops decreased -16.1% in sale transactions, with a double-digit decrease in asking price of -14.4% as well.

Both turbine and piston helicopters saw declines in YTD sale transactions, down -9.9% and -15.8% respectively. Turbine helicopters recorded an increase in average asking price, at 14.9% in the YTD comparisons through June 2014, and was the only segment to show an

Aircraft Index see Page 4

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1s t s o u r c e .c o m /s fg Photo courtesy of Pilatus

MarketIndicators Sept14_Layout 1 19/08/2014 15:01 Page 2

2

Market Indicators

In-Service Aircraft Technical Condition & Price

Maintenance Rating (ATC Score): Average Asset Technical Condition Score (our rating relative to each aircraftâ&#x20AC;&#x2122;s optimal maintenance condition) decreased 9.5 AI2 basis points, to 5.394 from Mayâ&#x20AC;&#x2122;s 5.489, but remained comfortably above the MidTime/Mid-Life 5.000 level â&#x20AC;&#x201C; on the ATC Score scale of -5 to 10.

Financial Rating (ATFC Score): Average Asset Technical Financial Condition Score (grading scheduled maintenance events cost associated with the aircraft ATC Score) decreased 10.2 AI2 basis points, falling below the Mid-Time/Mid-Life 5.000 level â&#x20AC;&#x201C; on the zero to 10 ATFC Score scale â&#x20AC;&#x201C; by registering 4.957 versus the previous monthâ&#x20AC;&#x2122;s 5.059.

Asset Exposure (ATFE Value): The average Asset Technical Financial Exposure Value (an aircraftâ&#x20AC;&#x2122;s accumulated maintenance financial exposure) worsened by nearly $14k last month, raising the average aircraftâ&#x20AC;&#x2122;s accrued maintenance expense to $1.326 Million.

While continuing to register the best asset quality amongst the four aircraft groups, Large Jets ended the quarter weaker than three months ago, Medium Jets came in second, while Small Jets once again fell into third place. Although Turboprops registered generally positive figures this month, the groupâ&#x20AC;&#x2122;s asset quality improvement was insufficient to lift them out of fourth place.

Exposure to Price Ratio Spread in the ratio of Asset Exposure to

BizAv Activity Europe 68,048 European Business Aviation flight departures for July, as reported by WINGX, mark a 2.7% YOY decline, with July 2014 11% below the 2008 peak as the least active July on record since 2005... â&#x20AC;&#x153;July was the busiest month, as expected, but the historically-low peak confirms that the incipient recovery in European Business Aviation activity has lost its way,â&#x20AC;? noted Richard Koe, Managing Director of WINGX Advance. â&#x20AC;&#x153;This

112

AVBUYER MAGAZINE â&#x20AC;&#x201C; September 2014

aircraft Ask Price (ETP Ratio) widened substantively this month, but the Overall Market average for aircraft tracked decreased to 42.4% from 45.4%. Asset Insight consider anything over 40% to be an excessive ATFE Value in relation to the Aircraft Ask Price, so the industry average is still high. However, last monthâ&#x20AC;&#x2122;s increase, led primarily by a Large Jets spike, appears to have been an anomaly and, assuming Ask Prices do not deteriorate, the Overall Market ETP Ratio should continue to improve. Table B lists the ETP Ratio for selected aircraft models.

Market Outlook While good news was somewhat difficult to spot this month, there were some positive developments. The average Ask Price for Large Jets increased by 17.7%, even though overall Ask Prices for the models tracked fell -5.7% to $5.63m. Assuming Ask Prices remained stable, and operators elected to conduct maintenance during the summer months â&#x20AC;&#x201C; per last year â&#x20AC;&#x201C; Overall Market asset quality figures should improve during the third quarter.

In the previous â&#x20AC;&#x153;Asset Insight Index Market Report,â&#x20AC;? it was stated with respect to Small Jets that â&#x20AC;&#x153;the elements appear to be in place for potential buyers and expectant sellers to find common groundâ&#x20AC;?. It would appear many did just that, based on the decrease in the number of Small Jets listed for sale at the end of July.

Lastly, Turboprop Ask Prices increased again this month, from $1.69m to $1.71m, matching the highest figure achieved during the past five months. With average Ask Prices trending within a narrow band, serious buyers would be best focusing on identifying the highest available asset quality rather than the lowest Turboprop aircraft price.

MI www.assetinsightinc.com

month, owner-flying was particularly tepid, especially out of large markets such as France, Germany and Switzerland. Evidently the Ukraine crisis has undermined the market, with European flights to the CIS down 24%, and East-West European connections down by 15%.â&#x20AC;?

YTD, 2014 activity is 0.7% below the 2013 trend. A 5% fall in flights from Europeâ&#x20AC;&#x2122;s largest market, France, had the biggest negative influence on aggregate activity. Switzerland fell 10%, and crisis-hit Russia and Ukraine were respectively 12% and 49% adrift YOY. There were regional growth spots, however, including the UK, now 3.3% up for the year, the

www.AVBUYER.com

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Baltic States and Iberia. Also, summer activity out of Greece peaked at more than 17% over last yearâ&#x20AC;&#x2122;s activity.

While business jets and piston activity subsided, turboprop flights did increase 2.3%. Overall, owner flights fell 4%, this yearâ&#x20AC;&#x2122;s largest monthly decline in private missions. This was felt most in business jet activity. Business jet charter flights also subsided in July, but both piston and turboprop charters were up.

Overall however, July extended the 2014 YTD run of successive months without growth in aggregate charter activity.

MI www.wingx-advance.com

â&#x2013;ź

An Asset Insight Index analysis of 76 fixedwing models and 1,532 aircraft listed â&#x20AC;&#x2DC;For Saleâ&#x20AC;&#x2122; researched on June 30, 2014, evidenced a slight deterioration in Overall Market asset quality compared to the previous monthâ&#x20AC;&#x2122;s figures.

Aircraft Index see Page 4

MarketIndicators Sept14_Layout 1 19/08/2014 15:02 Page 3

Market Indicators

3

The Escalating Maintenance Bill…

Advertising Enquiries see Page 9

MRO and Customer continue to dispute, that once-gleaming Legacy sits in the open, deteriorating day after day, and with it its market value!

You see, not only do the physical aspects of the aircraft deteriorate (read the water streaks), more importantly, so do calendarlimited items such as landing gear and airframe checks. Worse still, the engines should be blanked under a care and maintenance programme. These weren’t. We’re not saying both engines will require full rebuild, but when you remember that each AE3007 can have a disk stack cost of close to US$1,700,000, and can easily cost circaUS$1,000,000 or more for a Level 3 shop visit, you can begin to see how any potential purchaser of this aircraft can leverage these costs to his or her advantage.

To get this aircraft airworthy again would probably at the very least require a borescope inspection of each engine. Those overdue calendar items will need addressing - at cost.

And on top of this, there is still that unpaid bill for US$400,000. By now, hopefully you should be getting the picture, but in case you didn’t: the client’s refusal to pay that US$400,000 bill has opened up a whole host of new problems and additional expense to

www.AVBUYER.com

go with it. And to add salt to the wound – the value of the aircraft is deteriorating more rapidly than if the client had just paid up in the first place.

On the subject of market values, there’s already the rather soft market value currently affecting used Legacy 600s. Assuming it’s fully airworthy, ready to go, and enrolled on an engine maintenance program, IBA believes a 2006 Embraer Legacy 600 is probably worth circa US$8,500,000 thanks to notable inventory levels and its continued suppression on trading values. But in this case, the aircraft has been abandoned for some considerable time. With an outstanding maintenance bill, and an accrual of overdue tasks as a result, there is no chance the aircraft will still be worth anywhere near US$8,500,000.

The moral of the story, then, is: think twice about what you risk doing to the condition and value of your prized possession before you start disputing a maintenance bill that seemed a touch high. Disputing a bill that is worth barely 5% the value of the aircraft can end up costing you considerably more.

MI www.ibagroup.com

■

Jonathan McDonald of IBA Group Ltd. which provides independent expert business analysis and advice to the aviation industry - outlines the risks of disputing a maintenance bill that can start relatively small before escalating out of control.

Picture this; a surveyor arrives at the MRO facility and is greeted by the Duty Manager. Mission, Bank wants a physical inspection and subsequent appraisal of an eight-year-old Embraer Legacy 600 as it’s up for sale. After a quick exchange of calling cards, the surveyor is led to that “lovely” 2006 delivery Legacy 600 that he’s been contracted by the bank to inspect, before sending the necessaries to the appraiser for a valuation.

It’s February, and most of Northern Europe/USA is – let’s face it – pretty miserable.

So the surveyor is happy to be indoors while it’s warm, in a cosy hangar full of gleaming, protected business jets that their owners treat more like family pets than machines. In the corner sits a lovely Falcon 2000, flanked by a CJ1. Opposite that is a rather tasty G550, itself flanked by a Lear 45. All are lovingly preserved or being worked on. But there’s no Legacy – at least not in the nice, dry, warm hangar. Our surveyor scratches his head, thinking there’s been a mistake.

The Duty Manager then leads the Surveyor out of the hangar on to a rain-swept apron, whereupon they stumble across a rather sorry-looking Legacy 600. By ‘sorry’, we mean ‘sorry’… No blanks on the engines or pitot tubes, leaving potentially millions of dollars’-worth of sensitive AE3007 blades and disks at the mercy of the elements. Undercarriage oleos, struts fully exposed? Oh yes... Months of exposure to the unforgiving elements have left ugly water streaks running down the fuselage that have collected at the bottom of each window. This really isn’t how you expect to see a high-class business jet. In total shock, the Surveyor asks the Duty Manager what went wrong.

The answer is very simple, the Duty Manager explains; The customer thought the bill of US$400,000 for some routine maintenance was excessive, and refused to pay. The MRO’s response, quite fairly, was to move the aircraft out of the hangar to make way for other customers’ aircraft, whose owners do pay, and let it stay there until settlement is made. The customer, being of a stubborn disposition, had allowed this to escalate into a dispute. Such disputes do not get settled overnight. The only problem is that while the

September 2014 – AVBUYER MAGAZINE

113

BusAviationNewsSept_Layout 1 19/08/2014 15:03 Page 1

BizAv Aircraft Review AgustaWestland The sale of an AW139 medium sized twinengined helicopter in the United Kingdom, complete with VIP/corporate configuration was announced by AgustaWestland. The aircraft will be delivered to an undisclosed customer in autumn 2015.

This latest contract further expands the

Bell Helicopter The 200th Bell 429 was delivered last month, to Miramar Empreendimentos Imobiliários, a hi-rise residential construction and real-estate company serving the coastal area of São Paulo, Brazil. The aircraft will be used for corporate transportation and charter around Miramar’s projects and key areas in Santos, São Paulo.

Cessna Aircraft A successful first flight of Cessna’s second production Citation Latitude aircraft has taken place. This flight marks the latest in a series of milestones for the program, all of which have occurred on, or ahead of schedule. This first flight lasted 2.7 hours and reached a maximum altitude of 45,000

Piaggio Aero Piaggio delivered the first P.180 Avanti II "Extended Range" to SR Jet, part of Beijing-based Sparkle Roll Investment Holdings Limited. The SR Jet aircraft is the first Avanti aircraft able to fly for more than 1,720 nautical miles due to the installation of a permanent additional fuel tank - which

Pilatus Aircraft Some 35,000 spectators watched as Pilatus officially unveiled its first ever PC-24 prototype at Buochs airfield in central Switzerland recently.

The PC-24 is the world's first ever business jet to come equipped as standard with a cargo door, with the kind of performance

114

AVBUYER MAGAZINE – September 2014

www.agustawestland.com

success of the AW139 for VIP transport missions in the United Kingdom, bringing to five the total number of aircraft of this type sold into the country in the last three years.

Indeed, since entering service in 2003, the AW139 has become one of AgustaWestland's most influential products.

www.bellhelicopter.com

The Bell 429 is said to be one of the most advanced light twin helicopters ever developed, delivering exceptional speed, range, hover performance and enhanced safety margins with a fully-integrated glass cockpit, advanced drive system and best-in-class WAAS navigation and IFR capability.

www.textronaviation.com

feet and a maximum speed of 305 KIAS and 0.80 Mach.

During the flight, the crew evaluated the autopilot, autothrottle, landing gear, pressurization, engine operating characteristics, environmental systems, and flight control systems.

www.piaggioaero.com

replaces only half of a closet in the toilet, without need for changes to the airframe.

Sparkle Roll General Aviation Ltd (SR Air) was founded in September 2013 and has ordered multiple Avantis for its operations.

www.pilatus-aircraft.com

specification that allows it to operate in and out of very short runways or even unmade strips.

Three prototypes will be produced for the PC-24 test flight program. The maiden flight of the first is expected in spring 2015.

www.AVBUYER.com

❯

Aircraft Index see Page 4

J Hopkinson 1 July 23/06/2014 14:59 Page 1

Tel: (403) 291 9027 Fax: (403) 637 2153 sales@hopkinsonassociates.com www.hopkinsonassociates.com

follow us on twitter@HopkinsonAssoc

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Gulfstream G150 698 AFTT, Long Range Oxygen Bottle, Part 135 Certification, 7 Passenger, New Paint & Interior soft-goods in 2012

Gulfstream Astra SP 7097 AFTT, Engines on MSP, TCAS II, EGPWS, GNS XLS FMS, RVSM and VIP Configuration with 6 pax

Falcon 50 13,502 hrs, Engines on MSP Gold, Collins Pro-Line 4, Dual Honeywell Laser Ref III, Magnastar Airphone C-2000, Airshow 400, MGTW Increase, 8 Passenger Seating

King Air 350i 599 AFTT, Rockwell Collins Pro Line 21/FGC 3000, CVR, TCAS II, TAWS+, Air Conditioning, and Eight Heated Cabin Chairs

John Hopkinson & Associates Ltd. 1441 Aviation Park NE, 2nd Floor, Box 560, Calgary, Alberta, T2E 8M7

BusAviationNewsSept_Layout 1 19/08/2014 15:03 Page 2

2

BizAv People Jonathan Archer: General Aviation Manufacturers Association (GAMA) recently announced that Jonathan Archer, a 24-year aviation industry veteran, has joined the association as director of engineering and airworthiness.

Maria Brabec

Kristen Cloud

Maria Brabec: Was appointed as an account manager/consultant for AvBuyer Magazine. Based in Prague, Czech Republic, Maria will work closely with international clients, and brings experience to the role from previously-held sales and translation positions.

During the past 17 years her career has also seen her travel the world extensively.

Kristen Cloud: Leading Edge Aviation Solutions - a leading aircraft sales, brokerage, consulting and dealer firm - has hired Kristen Cloud for the position of VP, aircraft sales. Ms. Cloud will be responsible for international aircraft sales, marketing and business development. She has built her extensive aviation career as a market researcher, sales manager, pilot, aircraft owner and founder of an aircraft brokerage firm.

Darrell Frey: Gulfstream Aerospace recently named

Tony Gilbert

Darrell Frey director of International Service Center Operations. In his new role, Frey oversees the company’s three international service centers in Beijing, China; Luton, England; and Sorocaba, Brazil.

1,800 layoffs in the coming months. Hachey leaves the company after six years as COO. The new organizational structure consists of four business segments, namely Bombardier Commercial Aircraft, headed by Mike Arcamone; Bombardier Business Aircraft, led by Eric Martel; Bombardier Transportation, overseen by Lutz Bertling; and Bombardier Aerostructures and Engineering Services, a new segment whose leader will be announced in the next few weeks.

Henry Lisboa: Dallas Airmotive announced that industry veteran Henry Lisboa has joined the company as its newest territorial director. He will lead the company's sales efforts in the Central and South American territories.

Pete Pedicino: Fractional aircraft ownership firm Executive AirShare hired industry veteran Pedicino as regional vice president of sales for Dallas and South Texas.

Brian Wilson: Banyan Air Service named Brian Wilson director of sales and business development. He will now be part of the technical sales team. Wilson served as director of avionics since January 2007. In other news, the company received the 2013 Platinum Award from Garmin for achieving excellent sales performance among Garmin distributors, and was named HondaJet dealer for the Southeastern United States.

Tony Gilbert: Jet Support Services, Inc. (JSSI), the leading provider of hourly cost maintenance programs for the Business Aviation industry, announced Tony Gilbert has been named the new vice president of business development for South America.

Brian Wilson

Guy Hachey: Bombardier announced the retirement of Bombardier Aerospace president and COO Guy Hachey as part of a wider restructuring that will see

AWARDS NBAA is to award Robert “Bob” Hoover and R.W. “Bill” de Decker with its Meritorious Service to Aviation Award and John P. “Jack” Doswell Award, respectively. The awards, among the highest given by the association, will be presented in October at the 2014 NBAA Business Aviation Convention & Exhibition in Orlando.

BizAv Events 2014 If you would like your event included in our calendar email: sean@avbuyer.com

Jet Expo Business Aircraft Europe (BAE) Mediterranean Business Aviation NBAA: Business Aviation Regional Forum AOPA Fly – In Central Asian Business Aviation EBAA Regional Forum AOPA Home Coming Fly – In African Air Expo Helitech International 2014 Int’l Business Aviation Symposium NBAA: (Business Aviation Convention & Exhibition) AOPA Fly – In First Saudi Int’l Civil Av. Exhibition Singapore Private Aircraft Conference & Expo CEPA (Central European Private Aviation) Expo MEBA 2014 Middle East Business Aviation

116

AVBUYER MAGAZINE – September 2014

Sep 4 - 6 Sep 10 – 11 Sep 12 Sep 18 Sep 20 Sep 25 – 26 Oct 2 - 3 Oct 4 Oct 9 – 11 Oct 14 – 16 Oct 16 - 17 Oct 21 – 23 Nov 8 Nov 16 – 20 Nov 19 – 20 Nov 19 – 20 Dec 8 – 10 www.AVBUYER.com

Moscow, Russia London Biggin Hill Airport, UK Sliema, Malta Dallas, TX, USA Chino, CA, USA Almaty, Kazakhstan St. Petersburg, Russia Frederick, MD, USA Accra, Ghana Amsterdam RAI, Netherlands Republic of San Marino Orlando, FL, USA McKinnon Airport, GA, USA Dammam, Saudi Arabia Singapore Prague, Czech Republic Dubai, UAE

www.jetexpo.ru www.miuevents.com www.aeropodium.com www.nbaa.org www.aopa.org www.aeropodium.com www.ebaa.org www.aopa.org www.adairexpo.com www.reedexpo.com www.aeropodium.com www.nbaa.org www.aopa.org wwwsaudiairshow.com www.miuevents.com wwwcepa.aero www.meba.aero Aircraft Index see Page 4

AIC Title October_Layout 1 22/07/2014 15:20 Page 1

JMesinger Sept14_JMesingerNov06 19/08/2014 15:06 Page 1

THE AVIATION LEADERSHIP ROUNDTABLE

The Opportunity: It’s Not Gone Yet still believe that ‘Flat’ will be the new ‘Up’. I still believe that transactions and real business are on the up-tick. I hold firm to my belief that more first time buyers are coming into the market at rates that equal pre-downturn numbers. And I absolutely believe that the Glass is Half-Full.

I am not sure what to believe, however, about prices and a sustainable leveling-out.

During the last ninety days as we rode a wave of reports that the majority of prices across age and model lines held flat with no or very little – reduction, transaction numbers rose. The question has to be ‘will this be sustainable for the next quarter?’…

Unfortunately I am still seeing the email blasts daily broadcast, “Price Lowered”. We have in fact done it ourselves with many of our listings. Of course, with a few of our reductions we just adjusted to the realization of the market, but that is a very fine-line distinction, and each offering reduction should not be misinterpreted as a continuing weakening of the market. This distinction will be critical to what we as an industry consider as we discuss ‘Half-Full’ and use words like ‘recovery’ and ‘business is better’.

It might be time to come to the realization that these phenomena may not be in parallel, but that one precedes the other. If we see prices continue to erode in certain markets, the real activity leading to real transactions must be heralded as a precursor to an actual recovery. In our office we are very excited about a continuing increase in activity. We’ve had, and continue to have more aircraft under contract, more pre-buys going on, and of course - the final piece - more aircraft closing.

Many fellow aircraft sales professionals are reporting the same positive news, so the following column explores the idea that there are still significant opportunities in our market. As I have mentioned in several recent articles, first-time buyers are calling daily and hiring us and our fellow sales profes-

I

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AVBUYER MAGAZINE – September 2014

sionals. This is a huge boost to our industry.

Remember, when a first-time buyer crosses our radar and purchases an aircraft, so many positive things happen: not only aircraft sales, but all of the critical industry-strengthening events occur.

For the last six years there has been so much focus on the fact that aviation means jobs. We have used that mantra to battle congress and correct perceptions that the industry is not filled with “Fat Cats” flying around in private jets drinking champagne and using the center aisle for putting, but instead filled with hard-working people and corporations utilizing an amazingly efficient and productive business tool and job creator! But what happens when someone takes the opportunity to buy at prices that have never before been seen in the history of our industry? Jobs are created: in manufacturing, servicing, fueling, piloting, legal and tax. Simply put, our industry gets back to work.

So focusing on price alone as a leading indicator of recovery would be wrong. No doubt, if transactions continue at this pace, inventory will continue to shrink and prices will firm and be sustainable. It would not surprise me if, when the new reporting books are published in the next few weeks, some segments may have a downward trend again representing the pricing movement during the last three months. So we, as industry participants and spokespersons, have a tremendous responsibility to be sure we guide the conversation with our clients that the glass is not half-empty but half-full.

As the people closest to the industry, we need to constantly interpret the marketplace and report and guide appropriately. We must share our daily experiences with those that call and try to understand the internal signals. It would be wrong to only tell half the story. It would be completely right to weave the occurrences together to describe the entire scenario.

Prices possibly are still struggling to firm at every level, and we may not be in an upwww.AVBUYER.com

market yet, but the landscape is becoming flat. If we help our clients and prospects do the math we can show them enough information to view the market like we do: one that abounds with opportunity; one that can be considered safe to enter; one that can actually help them meet the growing complexities of competing in a more complicated world and help them get out in front of their customers, and ahead of their competition to grow their business.

It will be up to us industry professionals to carry the banner and show the steps to the increased success that using these powerful business tools can achieve. Using these data points to help add-up the reasons why the opportunity to enter the market is far from over, one can start today feeling great about the future of our industry (and thereby each of our positions within it).

Please join me in waving the flag and shouting the news: Business is up, jobs are being created, and we are headed for a long, sustainable future! Welcome back! ❯ Jay Mesinger is the CEO and Founder of Mesinger Jet Sales. Jay serves on the Jet Aviation Customer and Airbus Corporate Jets Business Aviation Advisory Boards (BAAB). Jay was a Member of the Board of the National Business Aviation Association (NBAA), and the Chairman of the Associate Member Advisory Council (AMAC). If you would like to join in on conversations relating to trends in Business Aviation, share your comments on Jay’s blog www.jetsales.com/blog, Twitter and LinkedIn. For more information visit www.jetsales.com.

Do you have any questions or opinions on the above topic? Get them answered/published in AvBuyer Magazine. Email feedback to: editorial@avbuyer.com Aircraft Index see Page 4

Banyan September_Layout 1 18/08/2014 16:35 Page 1

Jetnet September_Layout 1 18/08/2014 16:38 Page 1

[ seek ]

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1988 Gulfstream GIV • s/n 1069 • N813PD

2003 Hawker 800XP • s/n 258622 • N850RG

Engines on RRCC • APU on MSP / Avionics on HAPP • Recent Excellent Cosmetics • Recent 72 / 24 Month Inspections • WIFI • Satellite TV • 2 Owners Since New Ready for immediate Delivery

Engines and APU on MSP • Pro Line 21 • Winglets • New Paint 2012 • 2,950 TT • 48 Month c/w 2012 at HB • Motivated Seller

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2012 Lear 40XR • s/n 2133

Only 700 TT • Engines on ESP Gold • APU on MSP Gold • Avionics on warranty • WIFI • FDR • Loaded with options • Batch 3 c/w

Only 570 TT • Dual UNS-1EW FMS’s • TCAS II • Aircell • Freon Air • Latest model 40XR in the world

2006 Hawker 400XP • s/n RK-448

1982 Falcon 20-5F • s/n 444 • LV-BIY

Only 1730 TT • Dual FMS 5000 • TCAS II, • Undergoing import inspection now

12,000 TT • Engines on MSP Gold • Fresh 2C Check • Gear OH in Progress • Excellent Cosmetics • Turn Key Aircraft available in Ft. Lauderdale

1993 Citation Jet • s/n 29

1980 King Air C90 • s/n LJ-871

5100 TT • TAP Elite • Jar Ops • New Paint • New Interior • Garmin 500W • Fresh Doc 10

8400 TT • 7700 TC • Engines on MORE program • Recent Paint and Interior • Asking 395K

AIRCRAFT WANTED: Challenger 300 - all models considered • Gulfstream G200 - all models considered • Challenger 604 - 2000 or newer • Hawker 800XP - 2003 or newer • Lear 31A/45/60 - all models considered • Citation Excel/XLS - all options considered

1992 Lear 35A, sn 674: 7900 TT/ 6,000 TC, engines on MSP Gold, fresh 3000 Cycle and Landing Gear Inspections, TR’s, Cargo Door, UNS1B FMS, TCAS I, RVSM, no damage complete records.

FT FT.. LA LAUDERDALE UDERDALE

ALSO AVAILABLE: 2000 King Air 350, sn FL-277: 3500 TT, HBS maintained since new, Motivate Owner.

CHARL CHARLOTTE OTTE

SÃO SÃO PAULO PA AULO

LONDON L ON NDON

1120 NW 51s 51stt C Court ourt F Ft. t. Lauder Lauderdale, dale, FL 33309 US USA A

17718 King’s Point Point Dr., Dr., Ste. Ste. A Cornelius, Cornelius, NC 28031 USA USA

AV A VC Copacabana opacabana 177-Alpha 177-Alphaville ville 06453-041-São Paul Paulo-Brazil o-Brazil

C Conway onway House - Cranfield Cranfield MK43 MK4 43 0FQ 0FQ - United Kingdom Kingdom

Tel: T e el: +1 (954) 377-0320 Fax: Fax: +1 (954) 377-0300

Tel: T e el: +1 (704) 990-7090 Fax: Fax: +1 (704) 990-7094

Tel: T el: e +55 (11) 3588-0311

Tel: T el: + e +44 (1234) 817-770

(In (Invoicing/Contracting voicing/Contracting A Address) ddress)

O OFFICES FFICES W WORLDWIDE ORLDWIDE

BUSINESS AVIATION CONVENTION & EXHIBITION | OCTOBER 21, 22, 23 | ORLANDO, FL

Join 25,000 industry professionals for the most important three days of business aviation this year, with over 1,000 exhibitors, 100 business aircraft on static display, and dozens of education sessions. Visit the NBAA2014 website to learn more and register today.

www.nbaa.org/2014/AvBuyer

P123_Layout 1 20/08/2014 09:46 Page 1

Advertising Enquiries see Page 9

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ACC September_Layout 1 21/08/2014 16:51 Page 1

Visit us at Booth 764 at NBAA Orlando

Northern Jet Citation Bravo September 19/08/2014 14:54 Page 1

S H O W C A S E

2003 Citation Bravo Serial Number: Registration: Airframe TT: Landings:

550-1073 N899B 5924 4895

Engines Left Engine 423 SOH Right Engine 1920 SOH Avionics • Honeywell Primus 1000 Integrated Flight Director & Autopilot System 3-tube 8x7” EFIS • Dual 196B Comm Radios with 8.33 Capabilities • Dual Nav • Dual RMI • Dual Mode S Transponders • Dual DME • Universal UNS1 L FMS • Honeywell TCAS II • Honeywell Mark VII EGPWS • Honeywell Primus Radar 660 • ARTEX 406 Emergency Locator Transmitter • Cockpit Voice Recorder • N1 Computer Indicator • Radio Altimeter

Exterior Overall Snow White with Silver Platinum Metallic and Black Stripes Interior Fire-blocked eight passenger executive interior in a center club configuration with an aft belted seat for a ninth passenger. Left and Right executive tables with Sienna leather inlays in the center club. Seating is finished in Sienna leather with Henna lower sidewalls and finished Cocoa Maple wood gloss laminate Optional Equipment • Freon Air Conditioner • Ski Tube • AOA w/Indexer • Iridium Satellite Flight Phone • Cabin/Cockpit Fire Extinguishers • Interior 110V AC • Lead Acid Battery • Tail Cone Flood Lights • RVSM Capable

Northern Jet Management Gerald R. Ford International Airport 5500 - 44th Street, SE • Grand Rapids, MI 49512

Advertising Enquiries see Page 9

www.AVBUYER.com

Tel: 800 462 7709 Tel: +1 616 336 4737 Cell: +1 616 648 2656 Fax: +1 616 336 4709 mserbenski@northernjet.net www.northernjet.net September 2014 – AVBUYER MAGAZINE

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Northern Jet Lear 40XR September 19/08/2014 14:55 Page 1

S H O W C A S E

2008 Learjet 40XR • Extended Range Fuel Serial Number: Registration: Airframe TT: Landings:

40-2100 N959RP 3,365 2,735

• Smart Parts Airframe Factory Warranty Smart Parts Engines Left Engine 3,378 / Right Engine 3,370 MSP Gold Avionics • Honeywell Primus 1000 Integrated Flight • Director & Autopilot System • 4-tube 8x7” EFIS • Dual Universal UNS1 L FMS • Dual Comm radios with 8.33 Capabilities • Honeywell HF 1050 Comm • Dual Nav and RMI • Dual Mode S Transponders • Dual DME • Single ADF • Honeywell TCAS II • Honeywell Mark VII EGPWS • Honeywell Primus Radar 660 • ARTEX 406 Emergency Locator Transmitter

• Cockpit Voice Recorder • Radio Altimeter • XM Satellite Weather Exterior Overall Matterhorn White with Blue and Yellow Stripes Interior Fire-blocked Six passenger executive interior in a center club configuration with an aft belted seat for a seventh passenger. Two Left and one Right executive tables with Imbuia gloss inlays in the center club. Seating is finished in Almond Crunch leather with Surfside lower sidewalls and finished Imbuia wood gloss laminate Optional Equipment • Freon Air Conditioner • AOA w/Indexer • Iridium Satellite Flight Phone • Cabin/Cockpit Fire Extinguishers • Interior 110V AC • Lead Acid Battery • Tail Cone Flood Lights • RVSM Capable • Airshow Cabin Audio/Video System • XM Satellite Radio • Extended Range Fuel Aircraft management Services Available

Northern Jet Management Gerald R. Ford International Airport 5500 - 44th Street, SE • Grand Rapids, MI 49512

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Tel: 800 462 7709 Tel: +1 616 336 4737 Cell: +1 616 648 2656 Fax: +1 616 336 4709 mserbenski@northernjet.net www.northernjet.net Aircraft Index see Page 4

Northern Jet Lear45XR September 19/08/2014 14:56 Page 1

S H O W C A S E

2009 Learjet 45XR Airframe TT: Landings:

2,336 1,826

Northern Air Inc is pleased to offer this 2006 Lear 45XR to the marketplace for immediate sale • MSP and Smart Parts Engines Left Engine 2,336 Right Engine 2,336 Avionics • Second Universal UNS-1E FMS • Enhanced Mode S Transponders • Dual KHF-1050 Communication with SELCAL • Steep Approach Capability • Second Automatic Direction Finder (ADF) • Cockpit Voice Recorder • Digital Flight Data Recorder • Electronic Flight Bag (EFB)

Exterior Off White with Sandalwood Tan Stripes Interior Eight passenger seats in a double club configuration with a belted lav seat certified for takeoff and landing. Interior is finished in tan tones and satin nickel plating.

Optional Equipment • Concorde Batteries-38 Ampere-Hour (Exchange) • Tail Illumination Package • Exterior Lighting Package • Lighted Control Wheel Chart Holders • Pulsating Recognition Lights • Aircraft Locking Package • Foreign Certification

Entertainment • Airshow 410 • Forward monitors • DVD system • Cabin audio • XM Radio

Northern Jet Management Gerald R. Ford International Airport 5500 - 44th Street, SE • Grand Rapids, MI 49512

Advertising Enquiries see Page 9

www.AVBUYER.com

Tel: 800 462 7709 Tel: +1 616 336 4737 Cell: +1 616 648 2656 Fax: +1 616 336 4709 mserbenski@northernjet.net www.northernjet.net September 2014 – AVBUYER MAGAZINE

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JetPro Texas G200 September_Heeren Cit Ultra sep 20/08/2014 09:28 Page 1

S H O W C A S E

2007 Gulfstream G200 Airframe TT: Landings:

2,131 827

• On Gulfstream CMP Engines Pratt and Whitney PW-306A’s with 6,040 lbs of thrust each. On Pratt and Whitney’s ESP Gold.

Engine 1 s/n PCE-CC-0328 2,131 SNEW 857 CSN Engine 2 s/n PCE-CC-0330 2,131 SNEW 857 CSN APU Honeywell GTCP36-150 Times: 1,469 Cycles: 1535 Inspection To be delivered with Fresh ARCS by Gulfstream, Dallas, TX. 3A/2C/4C c/w Aug. 2013 by Gulfstream, Westfield, MA, 1A/1C c/w June 2012, 2A c/w Oct. 2012

Interior Ten passenger interior arranged in a forward club, aft four place conference group opposite a three place divan belted for two during takeoff and landing. The forward right-hand Galley features ample workspace with microwave, draining ice drawer, stemware storage, dry goods storage and coffee maker. The Galley and Cabin are divided by a forward pocket door. Seats are finished in beige leather with complimentary carpet, Ultra Leather headliner and Mahogany woodwork.

Cabin entertainment is provided by Collins Airshow 4000 with Tail Camera, dual DVD Exterior Overall White with Blue and Gold Stripes

Avionics 5 Tube Collins Proline-4 Flight Deck Dual Collins FMC-6100 Dual Collins GPS-4000 GPS Receivers Dual Collins RTU-4220 Tuning Heads Dual Collins VHF-4000 Comms Dual Collins NAV-4500 Nav’s Additional Equipment Safeflite Auto-Throttles ICS-200 SATCOM Rosen Monorail Sunvisors Honeywell VHF/SAT AFIS

Don and Sam Starling

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Tel: +1 (254) 848 9192 Mob: +1 (254) 716 2981 E-mail: sales@jetprotexas.com www.jetprotexas.com Aircraft Index see Page 4

JetPro Texas Lear 45 September_Heeren Cit Ultra sep 20/08/2014 11:18 Page 1

S H O W C A S E

2005 Bombardier Learjet 45 Airframe TT: Landings:

3,463 2,594

Engines Honeywell TFE731-20AR-1B Engines with 3,500 lbs of thrust each Enrolled on Honeywell’s MSP Gold Engine 1 s/n P-116634 3,463SNEW 2,594 CSN 558 SMPI Engine 2 s/n P-116632 3,463SNEW 2,594 CSN 558 SMPI APU Honeywell RE100 s/n P-311: TTSN 1,626 Enrolled On Honeywell’s MSP Gold Inspection Full Prepurchase Survey c/w 12/2013 by BAS-AMS <br> Phase A c/w 12/2013 at 3,436 by BAS next due 12/2015<br> Phase B c/w 4/2013 at 3,320 by BAS next due 9/2017<br> Phase C c/w 9/2013 at 3,417 by BAS next due 9/2017<br> Phase D c/w 9/2009 at 2,378 next due 9/2017

Additional Equipment EU OPS Compliant Steep Approach RVSM, MNPS, P-RNAV & RNP-10 Capable Collins Airshow 400 w/ Dual Screens Audio International DVD Player 110v Inverter and outlets Interior The eight passenger interior is arranged in a double club with an additional 9th belted lavatory seat. Seats are finished in steel blue leather with new gray Kalogridis carpet, and Ultra Leather headliner. Amenities include a forward right-hand galley with dry storage and hot coffee dispenser, ice drawer with overboard drain. Cabin entertainment and outfitting includes Airshow 400 with forward and aft bulkhead monitors with DVD Player and 110v Outlets in the cabin. There is a private aft flushing lavatory with vanity with hot and cold running water Exterior Overall DeSoto Matterhorn White with Columbia Blue Metallic, Flight Red and Cumulus Gray metallic stripes. Refurbished 3/2014

Avionics 4 Tube HONEYWELL PRIMUS 1000 EFIS Universal UNS-1E FMS Dual Honeywell RCZ-851 Comm Units Dual Honeywell RNZ-851 Nav Units Honeywell PRIMUS 660 RADAR Honeywell PRIMUS 1000 Autopilot

Don and Sam Starling

Advertising Enquiries see Page 9

www.AvBuyer.com

Tel: +1 (254) 848 9192 Mob: +1 (254) 716 2981 E-mail: sales@jetprotexas.com www.jetprotexas.com September 2014 – AVBUYER MAGAZINE 129

Jason Palmer September 19/08/2014 11:38 Page 1

S H O W C A S E

2004 Cessna Citation 560 XLS Serial Number: 560-5533 Registration: N104PC Airframe TT: 2384 Landings: 2329 Engines Pratt & Whitney PW545B Engine Total Times: 2329 Engine Cycles: 2329 APU GRT RE 100XL APU Serial #: P456 APU Total Time: 1478 Maintenance Program CESCOM, Cessna Service Center Maintained Avionics Honeywell Primus 1000 Electronic Flight Information Triple DU-1080 8x10 Display System Honeywell Primus 1000 Dual Digital Air Data System Dual AZ-950 Micro Air Data Computer GPS Dual LCR-93 AHS computers Dual FX-220 Flux Detector System Honeywell Primus 1000 Auto Pilot System IC-615 Pilot Display/Guidance Computer (with Autopilot, TCAS, and FMS) IC-615 Copilot Display/Guidance Computer (with TCAS, no Autopilot) PC-400A Autopilot Controller Dual Universal UNS-1ESP with GPS Flight Management System Dual CD-820 FMS Control Displays Universal Performance Data Base Honeywell AFIS

DL-900 Data Loader Integrated Radio System, Honeywell Primus II SRZ 850 (8.33) Dual RM-855 Radio Management Unit with TCAS CD-850 Clearance/Delivery Unit Dual RCZ-833K Integrated COMM Unit (8.33) Dual TR-850 COMM with 2 antennas Dual SX-852 Mode S Transponders(Enhanced) Dual RNZ-850 Integrated NAV Unit Dual NV-850 VOR with dual VOR/LOC antenna Dual DM-850 DME DF-850 ADF System with dual antenna Honeywell Mark V EGPWS Honeywell AA-300 Radar Altimeter Artex ELT C406-2 dual frequency JAA FDR with MFDAU JAA 120 Minutes CVR Honeywell KHF-1050 with Coltech CSD-714 SELCAL HI frequency Air-cell AST-3100 with Handset Flight Phone Interior Seven passenger executive configuration. Leather Seating, Four pedestal seats, Aft right side, side facing 2-place couch, forward, right side facing seat, forward 3-place club area. Pumice Caravan patterned sidewall. Butternut tip shear carpeting.

Forward left side refreshment center with microwave and retractable preparation table.

Exterior Always hangared Matterhorn White with Chocolate, Brown and Gold

Jason Palmer

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Tel: +1 (702) 521-5235 Email: Aviationvortex@gmail.com

Aircraft Index see Page 4

Global Jet Airbus ACJ318 Elite September 21/08/2014 09:56 Page 1

S H O W C A S E

Airbus ACJ318 Elite Serial Number: Airframe TT: Landings:

3100 3589 1236

• Very exclusive exterior and interior concept done by Pegasus Design: Ideal lay-out with luxurious feel for corporate or governmental flights!

• This airbus is certified for commercial operations under EU-OPS1 and has a massive baggage compartment able to accommodate up to 80 bags.

• One owner since new.

• First class maintenance track records!

• Entry into service in 2008 • 19 seats certified for occupancy during taxi, takeoff and landing

Global Jet Monaco Florian Van Der Cruyssen, Aircraft Sales Director, L'Albatros, 9, bd Albert 1er, MC - 98000 Monaco

Advertising Enquiries see Page 9

www.AvBuyer.com

Tel: +377 97 77 01 04 E-mail: florian.vandercruyssen@ globaljetmonaco.com www.globaljetconcept.com September 2014 – AVBUYER MAGAZINE

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Aviation Advisors September 21/08/2014 10:03 Page 1

S H O W C A S E

Currently undergoing Annual Inspection

2004 Gulfstream G550 Serial Number: Airframe TT: Landings:

5033 1750 870

• One owner since new • One of a kind designer interior in like new condition • Enhanced Navigation Upgrade & TCAS 7.1 • RVSM/RNP-1, 4, 5 & 10. MNPS. CPDLC. ADS-C • Securaplane 450 Security System • Airshow 4000 System • Four 5.6” Monitors, one 12” and one 20.0” Monitor • Single 5-Disc Audio CD Player / Controller • Two Multi-Region DVD Players • Miltope Cockpit Printer & Cabin Laser Printer • SATCOM and Ethernet: - Wireless LAN - One (1) Honeywell MCS-7000+ Satcom System - One (1) Honeywell AIRSAT 1 Satcom System - One (1) MagnaStar C2000 Radiotelephone (Functions also as a PBX connecting all handsets to each other and to the Honeywell MCS-7000 INMARSAT System.

• JSSI “Platinum” (pro-rated)

Engines RR BR-710 Engines: 1750 hrs (as of January 23, 2014) Enrolled in JSSI Platinum Honeywell RE220 (G550) APU: 2053 Hours Avionics Certification “Foxtrot” basic completed August 2011, Navigation upgrade “Enhanced” c/w June 2013 (ASC 84B & ASC 96), Runway Awareness Advisory System (RAAS), 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, One (1) Honeywell MT-860 Third Navigation /Communication Cabinet Two, (2) Honeywell RT-300 Radio Altimeters, One (1) L3 Cockpit Voice Recorder (CVR), One (1) Cockpit Voice Recorder (CVR) Control Panel, One (1) L3 Flight

Aviation Advisors International Inc 8191 N. Tamiami Trail, Sarasota, Florida, 34243-2032

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Data Recorder (FDR), Two (2) Davtron Digital Clocks, One (1) Goodrich EBDI-4000 Radio Magnetic Indicator (RMI), One (1) Goodrich Magnetometer, One (1) Goodrich GH-3100 Standby Attitude/Airspeed/Altitude Indicator, One (1) Honeywell RT-951 (TCAS 2000) 7.1 (ASC 103), Two (2) Mason Cursor Control Devices, One (1) Thales Satcom antenna, One (1) Honeywell LP-860 processor, One (1) Honeywell LU-860 controller, One (1) Honeywell AT-855 brick antenna, One (1) Honeywell LSZ-860 Lightning Sensor System (LSS) Interior 18 Passenger custom designer interior w/ fwd galley including convection oven & microwave.

Flight attendant seat. Fwd & aft vacuum lavatories. Fwd cabin: Six individual seats of which two are berthable. Mid-cabin: Four-place club arrangement. Aft-cabin: Two four-place divans.

Interior is in excellent like new condition Asking Price: Call!

Tel: +1 (941) 351-5400 Tel: +1 (210) 490 1883 - San Antonio office Email: bobd@aaisrq.com www.aviationadvisorsintl.com Aircraft Index see Page 4

IBA Falcon 900DX June_Empyrean 19/08/2014 11:42 Page 1

S H O W C A S E

2005 Dassault Falcon 900 DX Serial Number: Registration: Airframe TT: Landings:

604 G-TAGF 2931 1339

Engines Engine Type & Model Honeywell TFE 731-60-1C No 1 Engine Serial Number P112622 No 1 Engine Hours Since New 2711 No 1 Engine Cycles Since New 1254 No 1 Engine Hours Since Restoration 378 No 1 Engine Cycles to First Limiter 5746 No 2 Engine Serial Number P112598 No 2 Engine Hours Since New 2897 No 2 Engine Cycles Since New 1317 No 2 Engine Hours Since Restoration 382 No 2 Engine Cycles to First Limiter 5693 No 3 Engine Serial Number P112621 No 3 Engine Hours Since New 2865 No 3 Engine Cycles Since New 1312 No 3 Engine Hours Since Restoration 416 No 3 Engine Cycles to First Limiter 5688 APU Type & Model Honeywell GTCP 36-150F APU Serial Number P-494 APU Hours Since New 3492 APU Overhaul Interval 4500 Hrs APU Hours Since Overhaul 2107 Landing Gear Nose Landing Gear Cycles Since Overhaul N/A Nose Landing Gear Cycles Remaining 466/July 2018 LH Landing Gear Cycles Since Overhaul N/A LH Landing Gear Cycles Remaining 4661/July 2018

RH Landing Gear Cycles Since Overhaul N/A RH Landing Gear Cycles Remaining 4661/July 2018 Interior Configuration and Optional Equipment Pegasus Designed Interior Seating 14 Passengers Forward Double Club Seating Dining Group Dual 3 Seat Divans Seating Convertible to 4 Beds, Suitable For Sleeping Up To 6 Forward and Aft Safety Equipment Stowage Cabin Attendant Seat Forward and Rear WCs Honeywell MH Entertainment & Cabin Management System Multiple LCD Monitors Multi-region DVD Player DT Systems Premium Speakers Sony Stereo headsets Maintenance Status 1A & 1A+ Inspections Completed April 2013 C Check Completed 2012 Honeywell Avionics Protection Plan Engines and APU on MSP Gold Avionics EASy Cockpit with EASy II Upgrade EASy Modular Avionics Dual Honeywell AZ-200 Air Data Computers EASy Data Acquisition and Central Maintenance Computer EASy Jeppesen Electronic Charts EASy IFCS TCAS – Honeywell TCAS-2000 with 7.1 Upgrade

International Bureau of Aviation Contact: Ben Jacques

Advertising Enquiries see Page 9

www.AVBUYER.com

Radio - Triple Honeywell TR866B CVR – Honeywell SSCVR DME – Dual Honeywell DM-855 FMS – Triple Honeywell EASy with Dual GPS-90X HF Radio – Dual Collins HF-9000 Satcom – Thrane Aero H+ TT-5000 HSD+ with ICG handset Transponder Dual Honeywell XS-855A Weather Radar – Honeywell Primus 880 Honeywell EGPWS

Tel: +44 (0) 1372 22 44 88 Email: ben.jacques@ibagroup.com

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Mente 2009 Gulfstream G200 & Hawker 800XP September 19/08/2014 14:49 Page 1

S H O W C A S E

2003 Hawker 800XP

Brian Proctor Cell: +1 (817) 307-7720 E-mail: brian@mentegroup.com

Serial Number: Registration: Airframe TT: Landings:

Beautiful nine passenger executive interior, featuring a well appointed, spacious forward galley. A forward fourplace club arrangement with foldout tables. The spacious mid cabin boasts another single seat across from a side facing three-placed divan.

Seating is tastefully finished in light earth-tone leathers.

Interior is complemented by luxurious carpeting found throughout the cabin. Forward galley poses ample storage and a microwave oven.

Cabin Entertainment includes: Worldwide Airshow 400, and Airshow briefing system, forward and aft 14inch computer display capable LCD monitors, DVD, CD. The aircraft also has power outlets for laptops and other electronic devices.

Exterior Original Paint 2003 By Hawker Beechcraft Matterhorn white and dark blue base coat with dark and light blue stripes. Winglets installed November 2010

258641 N513ML 4337.3 3624

Engines TFE 731-5BR-1H – 100% JSSI-Premium Plus Program Left: S/N P107839 4337.3 Hours 3624 Cycles Right: S/N P107840 4337.3 Hours 3624 Cycles APU Garrett GTCP 36-150W - 100% JSSI S/N P-748 3422 Hours Avionics Collins Proline 21 Avionics Suite ADF: Dual Collins ADF-462 AFIS: Honeywell AFIS Autopilot: Collins FGC-3000 IFCS Avionics Package: Collins FGC-3000 IFCS / Pro Line 4

Communication Radios: Dual Collins VHF-422C w/8.33 spacing CVR: Universal CVR-120 DME: Dual Collins DME-442 FDR: Honeywell DFDR full rack & wiring provisions Flight Director: Collins FGC-3000 IFCS SATCOM: AirCell w/four handsets FMS: Collins FMS-6000 w/dual GPS Hi Frequency: Collins HF-9000 w/SELCAL (provisions for 2nd) Navigation Radios: Dual Collins VIR-432 Radar Altimeter: Collins ALT-4000 TCAS: Collins TCAS-4000 TAWS: Honeywell Mark V EGPWS w/windshear Stormscope: Honeywell LSZ-850 lightening sensor Transponder: Dual Collins TDR-94D Mode S Interior Original Installation 2003 by Hawker Beechcraft.

2009 Gulfstream G200

Mark Payne Cell: +1 (972) 897-3246 E-mail: mark@mentegroup.com

Serial Number: Registration: Airframe TT: Landings:

Interior Well appointed, nine (9) passenger interior features forward four place club seating and aft three(3) place divan opposite two (2) place club. Upon entering this beautiful aircraft, you notice the well-appointed forward galley, including TIA Wavejet Microwave, two (2) hot liquid dispensers, wine storage, large serving area, and generous ice drawer and trash receptacle. The medium toned, high gloss, wood veneers are accentuated by mushroom leather seating and a brown fabric divan. The intricately woven, 100% wool carpet shows little wear and compliments the interior perfectly. Passenger will be entertained with an Airshow 410 system as well as forward and aft 17” LCD monitors and a multi-region dual DVD player Exterior Overall, White w/Zephyr Orange & Black Accent Stripes

230 N331BN 1972.5 1174

Engines ESP Gold P&W306A Engine 1: PCE-DF0103 1821.4 SNEW Engine 2: PCE-DF0104 1821.4 SNEW Auxiliary Power Unit Honeywell 36-150IAI SN: P-339 982 Total Time 1187 Total Cycles. MSP Gold Avionics 5 Tube EDS / Collins Proline 4. 2 Collins VHF-422D Comms. 2 Collins VIR-432 Navs. 1 Collins ADF-4500 ADF. 2 Collins DME-4000 DME. 2 TDR-94D Mode S W/ FLT ID TDR. 1 Collins TWR-850 Radar.

2 Collins FMC-6000 FMS. 2 Collins GPS-4000A GPS.

1 Honeywell KTR-653 W/Selcal HF. Collins TTR-4000 W/CHG 7 TCAS. Honeywell DMU-AFIS AFIS. ICG Iridium ICS-200 SAT/COM. Artex 406 W/Nav Interface ELT. Honeywell Mark V W/ WS & RAAS EGPWS. Universal CVR -120 CVR. Collins FCC-4005 CAT II Autopilot Special Features In Service 12/22/2009. RNP-5/-10 / MNPS. RVSM/8.33/FM Immunity. Emergency Lighting.

Aircell Axxess II. ATG 4000. Collins MDC-4000.

Dual M850A Davtron Clocks. Collins ALT-4000.

WX-1000E Stormscape. EICAS / Collins DCU-4010.

Mfg Warranty until 12/22/2014. 1A/2A Insp C/W 12/13/13. C/2C/4C Insp C/W 12/13/13.

12/24/48 MTH C/W 12/13/13. Eng Boroscopes C/W 12/13/13. GoGo Biz High Speed Internet, Increased Gross Weight Mod. 5C Inspection due 12/14

Mente Group, LLC 15301 North Dallas Parkway, Suite 1010 Addison, TX 75001

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Tel: +1 214 351 9595 www.mentegroup.com

Aircraft Index see Page 4

Twinjet August 19/08/2014 11:49 Page 1

S H O W C A S E

2009 Global 5000 Serial Number: Registration: Airframe TT: Landings:

MSN: 9337 M-ATAK 940:23 391

Built for maximum comfort and speed, the Global 5000 easily outclasses all competitors within the same business class, offering more space, more technology and more performance. MSN 9337 has the manufacturer’s modification to increase fuel capacity, offering outstanding city pairs, including non-stop from Europe to the US West Coast Engines Rolls-Royce BR700-710A2-20 Serial Numbers: 12787 & 12786 Engine 1: Total Engine Time: 940:23 Cycles: 391 Engine 2: Total Engine Time: 940:23 Cycles: 391 Program Coverage: Rolls-Royce Corporate Care APU Honeywell RE220 (GX) Serial Number: P-464 Total Hours: 1,814 Program Coverage: Honeywell MSP Avionics Equipped with a Honeywell Primus 2000 XP 6-Tube EFIS Avionics Suite, including: • Head-Up Guidance System (HGS) • Enhanced Vision System • Full Authority Digital Engine Control (FADEC) • Dual E/R HF/COM Rockwell Collins HF-9031A •Triple E/R VHF NAV Honeywell RCZ-833

• Dual E/R VHF COM Honeywell RCZ-833 • Electronic Flight Bags Interior This immaculate Global 5000 offers seating for 13 passengers and features a fully equipped right-hand forward galley, a left-hand galley annex, a spacious right-hand forward lavatory and sliding door separating the main cabin from the galley. The main cabin comprises a forward four place club seating with pull out tables, a mid-cabin four place conference group with hi-low conference table, a credenza opposite, an aft right-hand side three place berthable divan, with two single executive seats opposite. The aft cabin features a lavatory, wardrobe and storage cabinet Exterior Overall Matterhorn White with Navy Blue and Grey accent stripes Options & Avionics Upgrades • Batch 3 – FANS 1/A with WASS • ADS-B OUT • TCAS II with Change 7.1 • Provisions for CVR Recording • Third FMS • RAAS and EVAS Additional Equipment Options • Wireless LAN • Airshow World Explorer Guide & Day-Night Map with Time Zones • Direct Broadcast Satellite TV • Upgrade for Bulkhead Monitor from 21.3” to 24” (each) • Portable Multi-Media Input Port (RCA Jack) • 10.4” Touchscreen Monitor, Plug-In (each) • Espresso Coffee Maker • Sunshield (Cockpit), Winglet Viewing Mirror (Cockpit)

Twinjet Aircraft Sales (UK) Limited Essex House, Proctor Way, London Luton Airport , Beds LU2 9PE, UK

Advertising Enquiries see Page 9

www.AVBUYER.com

Tel: +44 (0) 1582 733615 Fax: + 44 (0) 1582 400098 Email: jk@twinjetsales.com www.twinjet.co.uk September 2014 – AVBUYER MAGAZINE

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CAI 2011 Beechcraft Premier 1A September 21/08/2014 14:50 Page 1

S H O W C A S E

2011 Beechcraft Premier 1A Serial Number: Airframe TT:

RB-283 491

Engines Williams/RR FJ44-2A (3,600 Hour TBO) #1: 491 SNEW #2: 491 SNEW Avionics/Radios Standard equipped Premier IA with Rockwall Collins Pro Line 21 Integrated Avionics System: Collins Integrated AFD-3010E Electronic Flight Instrumentation System Collins FGC-3000 Automatic Flight Guidance System Dual Collins ADC-3000 Air Data Computers Dual Collins AHC-3000 Altitude Heading Reference System (AHRS) Collins FMS-3000 Flight Management System with Database Collins TCAS 4000 Traffic Alert and Collision Avoidance System (TCAS II) Honeywell Mark V Enhanced Ground Proximity Warning System Artex ELT-C406-2 Emergency Locator Transmitter Dual Collins VHF-4000 Digital VHF Communication Collins NAV-4000 Digital Navigation Receiver Collins NAV-4500 Digital Navigation Receiver Collins DME-4000 Digital Distance Measuring Equipment (DME) Collins ALT-4000 Radio Altimeter GPS 4000A Global Positioning System (GPS) Collins WXR-800 Weather Radar Avionics Options Collins TWR-850 Turbulence Weather Radar

Interior Six (6) passenger executive interior (not including the two (2) pilot seats.)

Interior Colors: Cabin Headliner: Beechwood Shimmer Fabric Sidewall Armrest: Figured Satinwood Laminate Upper Sidewall: Bamboo Leather Lower Sidewall: Cameo Allure Fabric Upper Partition/Mirror: Bronze Jetmirror Floor Covering; Aisle Carpet: Toffee Frieze Carpet Table Work Surface: Bamboo Leather Chairs: Bamboo Leather Seatbelt/Harness: Fawn Metal Plating: Medium Aged Antique Brass Laminate: Figured Satinwood Exterior Beechcraft Demo Paint Scheme Dark Bottom Paint Nevada Tan, $23,800 Option Custom Exterior Paint Stripe: Regal Red Mica ($4,700 Option) Custom Exterior Paint Stripe: Bermuda Tan Mica ($4,700 Option) Painted Tail, 3rd Stripe Color (Additional Mask/Spray), Painted Logo ($17,000 Option) 4th Window Painted: Post Delivery Modification Features Single FMS. Overwing Fueling RVSM Certified Inspection Status Maintained since new by Hawker Beechcraft Services Not on Engine Program - Approximate Buy-in $150,000

J.P. Hanley Corporate AirSearch Int'l Inc. Palm Beach, South Florida

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Palm Beach Tel: Fax: Cellular: Email: Website:

(561) 433-3510 (561) 433-3842 (561) 289-3355 jp@caijets.com www.caijets.com Aircraft Index see Page 4

Aerosmith Penny Hawker 800XP February 19/08/2014 12:42 Page 1

S H O W C A S E

1996 Hawker 800XP Serial Number: Registration: Airframe TT: Landings:

258289 N881AF 10,001.6 6291

• Aviation Partners Winglets • Interior new 2012 standard eight place • Exterior, 2012 Overall White Blue and white with blue stripes • MSP Airframe & Engines TFE731-5BR ENROLLED IN HONEYWELL MSP APU GTCP35-150W 4513 APU HRS 6048 APUS Avionics FMS: DUAL HONEYWELL NZ2000’S RADIO SYSTEM: HONEYWELL PRIMUS II INTEGRATED COMMS: DUAL HONEYWELL RCZ-851w/8.33spacing NAVS: DUAL HONEYWELL RNZ-850 RMS: DUAL HONEYWELL RM-850 TRANSPONDER: DUAL HONEYWELL RCZ-833k HF: DUAL BENDIX/KING KHF-950 R/ALT: HONEYWELL RT-300 AHRS: DUAL AHZ-600 RADAR: HONEYWELL PRIMUS 870 ADC: DUAL HONEYWELL AZ-810

AFCS: DUAL HONEYWELL DFZ-800 EFB: SINGLE FG7000 Adv. Data Research TCAS: HONEYWELL ACSS TCAS II W/CH.7 CVR: UNIVERSAL CVR-30B EGPWS: ALLIED SIGNAL Extras AVIATION PARTNERS WINGLETS CAMP MAINTENANCE PROGRAM DUAL HONEYWELL PRIMUS II SRZ-850 DATA LOADER LSZ-850 LIGHTNING SENSOR ARTEX C406-1 ELT HONEYWELL N1 DEECS Interior New 2012 STANDARD EIGHT PLACE INTERIOR Exterior 2012 Overall White Blue and white with blue stripes

AeroSmith Penny II LLC 8031 Airport Blvd., Suite 224, Houston, TX 77061

Advertising Enquiries see Page 9

www.AVBUYER.com

Tel: +1 (713) 649-6100 Fax: +1 (713) 649-8417 Email: aspinfo@aerosmithpenny.com www.aerosmithpenny.com September 2014 – AVBUYER MAGAZINE

137

Sun Jet International Citation XLS+ September 21/08/2014 10:16 Page 1

S H O W C A S E

2011 Citation XLS+ Serial Number: Registration: Airframe:

560-6065 XA-LOS 1,160

Engines PW545C 5,000 Hrs. TBO Left Eng: 1,160 Hrs. TTsnew Rigth Eng: 1,160 TTsnew Auxiliary Power Unit (APU) Honeywell RE-100 (XL) 652 Hrs. TTSNEW Avionics FDR: Fairchild FA2100 GPS: Collins GPS-4000S TCAS: Collins TCAS-4000 Autopilot: Collins Pro Line 21 IFCS Flight Director: Collins Pro Line 21 IFCS Communication Radios: Collins Pro Line 21 DME: Collins DME-4000 ADF: Collins NAV-4000 Hi Frequency: Provisions FMS: Dual Collins FMS-3000 Compass: Dual Collins AHC-3000 AHR Weather Radar: Collins TWR-850 Doppler Avionics Package: Collins Pro Line 21 IFCS / Pro Line 21 Interior The Aircraft Interior Consist in Two Crew and Nine Executive Seats Configuration in Beige Leather Interior, Forward RS 2-Place Side-Facing Couch, Standard Mid-Cabin Club Seating, Aft LS Removeable Side-Facing Seat W/Fold Down Seatback Cushion, Sheepskin-Covered Crew Seats, Forward LS Refreshment Center, High-Gloss Wood Veneer Cabinetry, Dual

Executive & Dual Slimline Tables W/Leather Inserts, Forward RS Rosen Flight View Moving Map System, Data Outlets, Seat Back Pockets Except Seat 3, Satin Silver Accents, Aft Cabin Dividers W/Mirror/Veneer Sliding Privacy Doors, 110-Volt AC Outlets, RS Non-Belted Externally-Serviceable Lav, Headrest Slipcover Pillows & Indirect Lighting, Forward RS Closet, Aft Side-Facing Seat W/Overwater Life Vest & Storage & RS Flushing Toilet Exterior White w/royal blue & Manhattan gray stripes Additional Aircell Axxess II Iridium SATCOM, Data Outlets, Collins IFIS-5000 File Server System, Collins CCP-3310 Cursor Control Panels, Crew Accessories: Sunshade & Sunvisors, Cockpit Flood Lights Maintenance Always Hangared No Damage History Completed Logbooks Engine Maintenance Program- Power Advantage Plus

Sun Jet International Inc 1770 SkyPlace Blvd, San Antonio, TX 78216

138

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Eugenio Gonzalez Tel: +1 (210)667-8180, +1 210.805.3141 E-mail: info@sunjetinternational.com www.sunjetinternational.com Aircraft Index see Page 4

J Hopkinson 2 June 21/05/2014 10:39 Page 1

Tel: (403) 291 9027 Fax: (403) 637 2153 sales@hopkinsonassociates.com www.hopkinsonassociates.com

follow us on twitter@HopkinsonAssoc

19 Sold 6 Remaining that Must Be Sold!

Cessna Citation Ultras AVIONICS Honeywell Primus 1000 3 - Tube EFIS Honeywell Primus GNS-XL FMS System

Honeywell MKVII EGPWS Honeywell TCAS II w/Change 7 L3 Cockpit Voice Recorder Global-Wulfsberg AFIS INTERIOR Seven Passenger Interior & Belted Lav Seat Aft Tailcone Baggage w/Ski Tube.

Zephyr Air Conditioning.

Recently refreshed Interior

EXTERIOR Recently completed Permaguard sealed Exterior MAINTENANCE Fresh Phase 1 - 5 completed by Landmark, Scottsdale Zero Engine Option

1441 Aviation Park NE, 2nd Floor, Box 560, Calgary, Alberta, T2E 8M7

P140-145 19/08/2014 17:26 Page 1

Marketplace Westwind II

Thomas Jets LLC Price:

Make Offer

Year:

1984

S/N:

409

Reg:

N629WH

TTAF:

5102

Location: USA

Tel: +1 (613) 991 2935 E-mail: paul@thomasjets.com This no damage, RVSM compliant aircraft, is an excellent, late model Westwind II, Flight Director: Collins FDS-85, Auto Pilot: Collins APS-80, Comms: Dual Collins VHF-20B, ADF: Collins ADF-60A, Keith Freon Air, Airshow 200, Wireless Headsets, The cabin is equipped with five individual executive seats and a forward three place couch. The fully enclosed lavatory, located in the rear of the cabin, has a belted flushing potty and sink. Seats and couch was recovered 2013. Good condition. Feb 2005

www.thomasjets.com

Dassault Falcon 50

Thomas Jets LLC Price:

Make Offer

Year:

1986

S/N:

168

Reg:

N514MB

TTAF:

5750

Location: USA

Tel: +1 (613) 991 2935 E-mail: paul@thomasjets.com Landings: 3268, This is an exceptional, low time Falcon 50 with excellent maintenance status and history. 4C & Corrosion Protection Control Program (CPCP) complied with August, 2013, New Paint, MPI’s (Weststar Alton, IL), Gear Overhaul August, 2011. New paint August, 2013 (Weststar Alton, IL) Excellent Condition. Six Individual Grey Leather Seats With a Three Place Divan and Jump Seat, Keurig Coffee Maker, Sony DVD Player, CD and Pull Out Wide Screen LCD Monitora

www.thomasjets.com

Westwind II

Thomas Jets LLC Price:

USD$595,000

Year:

1982

S/N:

1124A-365

Reg:

N73CL

TTAF:

7516

Location: USA

Tel: +1 (613) 991 2935 E-mail: paul@thomasjets.com An exceptional, low time Westwind II. Landings: 5451.

Engines: LE: 77478 “0” SCZI MSP Gold DEECS RE: 77480 40 hours left to CZI MSP Gold DEECS. Avionics: ADF: Dual Collins ADF-60A, IFCS: Collins FDS-85 Proline, Comms: Dual Collins VHF-20B, Navs: Dual Collins VIR-30A, CVR: Universal CVR-80, DME: Dual Collins DME40. Int: Aft 4-place club, side facing 3-place divan opposite single seat all in beige leather, belted lav. Ext: Overall white with black and gold stripes

www.thomasjets.com

Hawker 800A

Capital Jet Group Price:

$1,950,000

Year:

1993

S/N:

258241

Reg:

XA-CHA

TTAF:

5875

Tel: +1 (703)-917-9000 E-mail: sales@capitaljetgroup.com MSP GOLD for engines. API winglets for added range and performance. 2011 paint. 2013 48 month inspection.

Global AFIS. Aircell Iridium satphone. Dual GPS. Digital FDR. HF. TCAS 2000 8 passenger interior with DVD/CD/Airshow system with dual monitors

Location: USA

Citation Ultra

Capital Jet Group Price:

$1,995,000 USD

Year:

1998

S/N:

490

Reg:

N565NC

TTAF:

9742

Tel: +1 (703)-917-9000 E-mail: sales@capitaljetgroup.com Great blend of performance, DOC’s, cabin, acquisition cost, and single pilot flexibility. 910 hours since P&W engine overhaul. Recent Phase 1-4, 2009 paint & interior.

XM radio, AFIS, Aircell ST-3100, WAAS GPS, EGPWS, TCAS II. Many extras on this turn-key aircraft. Call for additional details

Location: USA

140

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Aircraft Index see Page 4

P140-145 19/08/2014 17:27 Page 2

Marketplace Learjet 36A

Leonard Hudson Drilling Price:

US $1,695,000

Year:

1977

S/N:

36A-030

Reg:

N160GC

TTAF:

15,600

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

Learjet 36A, Long range capability, as configured 2,400 nautical miles. Can be upgraded to 2,600 mile range.

Recent paint and interior, RVSM. Competitively priced at $1,695,000 USD, may trade on helicopter

Location: USA

BELL 206L4

Leonard Hudson Drilling Price:

Please Call

Year:

2002

S/N:

52265

Reg:

N339MG

TTAF:

1700

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

We are offfering our 2002 Bell 206 L4. Pictures do not

do justice to the helicopter, and the colors are very vibrant, it is ready for immediate work. It has had both a Bell/Edwards completion and maintenance with immaculate records, of course no damage of incidents. 1700 TTSN, Two corporate owners.

Location: USA

BELL 412EMS

Leonard Hudson Drilling Price:

US $3,875,000

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

MJET GmbH

Fokker 100 Executive Jet

Price:

Make offer

Year:

1992

S/N:

11403

Reg:

OE-IIB

TTAF:

30935

Tel: +43 (0) 1 706 2700 720 Email: asset@mjet.eu Retrofitted to Executive/V.I.P. configuration - first quarter of 2007; 28 passenger seats; - AFTS (additional fuel tank system) - 4,800 km (~ 2,600 nm) range; - CAMP Maintenance Management System; - Honeywell Entertainment & Environment Management System (DVD, VCR, CD players, LCD Displays, cabin temperature & lighting controllers); - Satellite Phone System (Aircell)

Location: Austria

Advertising Enquiries see Page 9

www.AVBUYER.com

September 2014 – AVBUYER MAGAZINE

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P140-145 19/08/2014 17:27 Page 3

Marketplace Hawker 1000A

Tel: 1 (850) 213 3218 E-mail: jetmarkets@aol.com

International Jet Markets, Inc. Price:

Make Offer

Year:

1992

S/N:

259010

Reg:

N52SM

TTAF:

5400

MSN 259010, ESP Gold, Honeywell Avionics, Excellent 9 Pax Interior, Well maintained, 2 Corporate Owners, Replaced & excess to needs $2,450,000.00 but Make Offer Contact: Bill Pilker Mobile 1-770-330-2691

Location: USA

Cessna Citation II

USA:

Tel: +407 497 1684 E-mail: bruce@ghholdingsusa.com Price:

$750,000

Year:

1978

S/N:

550-0033

Reg:

N300GH

TTAF:

9042

UK:

Tel: +44 (0) 757 871 4666 E-mail: bill.leathers@bluebottle.com

Owner Motivated to Sell The aircraft has undergone a complete refurbishment during the last 16 months costing in excess of $650,000. Refurbishment included a complete repaint of the fusalage, full new leather interior, LED lighting, Walnut cabinetry etc.

Owner willing to take part exchange, motor vehicles, real estate, jewelry or Robinson Helicopter.

Location: USA

Learjet 60

Tel: +1 (561) 948-8202 E-mail: kthorup@eigerair.com

Eiger Air, LLC Price:

$1,925,0000 USD

Year:

1994

S/N:

037

Reg:

N101HW

TTAF:

8450

Excellent two-owner Lear 60. Painted 2013 by Duncan Aviation. Seven (7) place interior with enclosed lavatory and forward galley. Current Part 135. Engines ESP Gold, 7200hr TBO (1730/990 TSO). Collins Proline 4, Dual UNS1B+, TCAS II Change 7, King KGP860 TAWS, RVSM, 406Mhz ELT

Location: USA (FL)

Bombardier Challenger 850

Comlux the Aviation Group Price:

Make offer

Year:

2006

S/N:

TBD

Reg:

TBD

TTAF:

4474

Tel: +41 (0) 44 205 50 70 severine.cosma@comluxaviation.com

This Challenger 850 suitable for 14 passengers features an extremely comfortable cabin with two club-2 at the front, followed by a Club-4 and a divan. The private compartment at the rear is composed of a club 2 and a sofa and gives access to a beautiful VIP lavatory.

Contact: Severine Cosma

Location: Switzerland

www.comluxaviation.com

Bombardier Global 7000

Comlux the Aviation Group Price:

Please Call

Year:

2016

S/N:

TBD

Reg:

TBD

TTAF:

New

Location: Switzerland

Tel: +41 (0) 44 205 50 70 severine.cosma@comluxaviation.com

With its four distinct living spaces, the Global 7000 business jet provides unparalleled spaciousness, luxury, and comfort, in a homelike environment that can be as productive or as leisure-friendly as any moment demands.

Seats position you perfectly to take in the view from the largest cabin windows in its category. Enjoy exquisite dining experiences at a table for six, journeying non-stop between key cities such as London and Singapore. Engines: General Electric’s Passport™ Engine.

www.comluxaviation.com 142

AVBUYER MAGAZINE – September 2014

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Aircraft Index see Page 4

P140-145 19/08/2014 17:28 Page 4

Marketplace Beech King Air 200 Blackhawk -61 Upgrade

Tel: +44 8452 606727 Email: sales@adl.aero

Aerodynamics Ltd. Price:

USD$2,650,000

Year:

2003

S/N:

BB1833

Reg:

G-CIFW

TTAF:

5637.3

Blackhawk -61 upgrade New paint and interior 0 hour props and engines RVSM Capable TCAS with change 7 For full specs please contact us or visit www.adl.aero

Location: UK

www.adl.aero

Diamond DA-40

Tel: +46 70 650 8917 Email: flygargarden@msn.com

TFK, Sweden Price: Euro 155,000 no VAT Year:

2001

S/N:

40069

Reg:

SE-LOY

TTAF:

1800

Eng: Lyc.IO-360M1A,180Hp, 20Hours SMOH, Prop: MT 3Blade 20Hours, Nosegear strout new stronger, Eng. mount new stronger, GPS: Bendix/King KLN94TSO IFR aprov.

DME: Bendix/KingKN62A TSO, X-ponder:Bendix/KingKN76CTSO, Nav/Com: Bendix/King KX165A TSO, Autopilot: Bendix/KingKAP140, coupled aproaches approved, Skitube located behind backseats, Airworthy until: 2014-09-08.

Location: Sweden

www.flygargarden@msn.com

Fairchild F300

Milenium Air Servicios Aereos Integrados SA de CV Price:

Please call

Year:

1984

S/N:

518

Reg:

XA-CMT

TTAF:

7691:07

Location: Mexico

Premier Avia

McDonnell Douglas MD-87

Price:

Please call

Year:

1987

S/N:

49412

Reg:

P4-AIR

TTAF:

45683

Location: Switzerland

Hawker 900XP

Beechcraft GmbH Price:

Please Call

Year:

2012

S/N:

TBD

Reg:

N-Reg

TTAF:

1.046

Tel: +52 (0) 1 554 880 2924 Email: mgarcia@mileniumair.mx

Total airframe cycles since new: 5526, A,B,C & D Checks complied on July 2014. All SB´s & AD´s up-to-date, Max operating speed: 265 knots (up to 24 300 feet) Range: 1938 NMI (2231 MI, 3591 KM) With six occupants, at 26 000 feet, Rate of climb: 2650 ft/min, Passenger capacity: 8 passenger + 2 crew members, 9 passengers + 1 crew member, Perfect Condition, No damage history since new, All maintenance accomplished by authorized service centers

Tel: +7 (0) 985 762 9787 Email: a.kondratyev@premieravia.ru Nineteen seats. Aft ownerís private stateroom with a double bed and private lavatory. 2 forward crew rest areas. Galley with three refrigerators. Three 42î, two 32î, two 20î, two 15î video monitors. Maximum range 7000km(3780nm).

Additional Fuel Tanks System, composed of eleven auxiliary fuel tanks (2200 gal or 6680 kg). One original aft auxiliary fuel tank (784 gal or 2374 kg). AC meets requirements for RVSM/MNPS/CATIIIa/TCASII Change 7/EGPWS/ICAO An16 Vol1 Ch4. Iridium ICS-200 Satcom

Tel: +49 (0)821-7003-100 Email: sales@beechcraft.de N-Reg, Pro Line21, 2xHF-9000, 2xFMS-6000, 2xTDR-94D XPDR, TCAS II, RVSM capable, SSFDR, Aircell & Highspeed Internet, on JSSI, with several Warranties – Aircraft like new!

Location: Europe

Advertising Enquiries see Page 9

www.AVBUYER.com

September 2014 – AVBUYER MAGAZINE

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P144 21/08/2014 10:35 Page 1

Par Avion Ltd FALCONS • HAWKERS • LEARS

www.paravionltd.com SALES • ACQUISITIONS • CONSULTING

Alberth Air Parts

+1 832 934 0055

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

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

Copy date for the October issue

Wednesday 17th September 2014 AvBuyer (USPS 014-911), September 2014, Vol 18, Issue No 9 is published monthly by AvBuyer Ltd, 1210 West 11th Street, Wichita, KS 67203-3517 and has a targeted circulation to decision makers within business and corporate aviation throughout the world. It is also available on Annual Subscription @ UK £40 and USA $65. POSTMASTER: Send address changes to: AvBuyer Magazine 1210 West 11th Street, Wichita, KS 67203-3517. Postage is paid at Wichita, KS and additional mailing offices © Copyright of AvBuyer Ltd. Every effort is made to ensure the accuracy of material published in AvBuyer Magazine.

However, the publishers cannot accept responsibility for claims made by manufacturers, advertisers or contributors. The views expressed are not necessarily those of the Editor or the publishers. Although all reasonable care is taken of all material, photographs, CD & DVDs submitted, the publishers cannot accept any responsibility for damage or loss. All rights reserved. No part of AvBuyer Magazine Advertising, Design or Editorial - may be reproduced, stored in a retrieval system, or transmitted in any other form, or by any other means, electronic, mechanical, photographic, recording or otherwise, without prior written permission of the publishers.

Advertiser’s Index 1st Source Bank......................................................111

Donath Aircraft Services ....................................58-59

MEBA.........................................................................124

21st Century Jet Corporation ...............................146

Duncan Aviation ..................................................63, 85

Mente Group ............................................................134

888 Aero ........................................................................5

Eagle Aviation..............................................................31

NBAA Convention...................................................122

AeroSmith/Penny.....................................................137

Elliott Aviation..............................................................89

Mesinger Jet Sales ..............................................19-21

AIC Title Services ....................................................117

Freestream Aircraft USA....................................23-25

Northern Jet Management ............................125-127

Amjet .............................................................................95

General Aviation Services ........................................51

OGARAJETS........................................................36-37

Aradian Aviation..........................................................39

Global Jet ..................................................................131

Par Avion ......................................................................93

Aviation Advisors .....................................................132

Gulfstream Pre-Owned ......................................32-33

Rolls-Royce .................................................................45

Aviatrade ................................................................27-29

IBA ..............................................................................133

Sojourn Aviation ...................................................64-65

Avjet Corporation.................................................68-69

Intellijet International .................................................6-7

Southern Cross Aviation ........................................121

Avpro ......................................................................10-14

Jason Palmer ............................................................130

Sun Jet International ...............................................138

Banyan .......................................................................119

Jet Black.......................................................................99

Tempus Jets .................................................................67

Bell Aviation...........................................................46-47

Jet Support Services (JSSI) ....................................15

The Jet Business ........................................................55

Bombardier..................................................................35

JetBrokers .............................................................48-49

TwinJet Aviation ........................................................135

Boutsen Aviation ........................................................77

Jetcraft Corporation..............................1, 42-43, 148

Wright Brothers Aircraft Title ................................101

Central Business Jets .............................................147

Jeteffect ........................................................................91

Charlie Bravo...............................................................87

JETNET ......................................................................120

Corporate AirSearch Int’l .......................................136

JetPro Texas .....................................................128-129

Corporate Concepts .................................................41

John Hopkinson & Associates ....................115, 139

Dassault Falcon Jet Europe....................................2-3

Leading Edge..............................................................71

144

AVBUYER MAGAZINE – September 2014

www.AVBUYER.com

Aircraft Index see Page 4

08 -10 DECEMBER 2014

DUBAI WORLD CENTRAL, UAE

www.meba.aero

ORGANISED ON BEHALF OF:

MEET US AT NBAA: STAND 1643

REGISTER TO ATTEND OR DISPLAY YOUR AIRCRAFT

VISIT WWW.MEBA.AERO MebaAdvert_WAS_205x270.indd 1

14/08/2014 09:26

21st Century March 19/02/2014 17:14 Page 1

Tri-Jets have earned a stellar reputation among owners and operators and usually command higher resale values than the competition.

With efficient space management the Falcon 900 aircraft have a larger passenger seating area than the Gulfstream IV. These Tri-Jets weigh 15 tons less and are 22 feet shorter, providing a more beneficial ramp presence.

The 900EX can speed across the Atlantic with all seats full at 0.84 IMN; and has 300 NM greater range than the Gulfstream IV-SP. Furthermore, the 900EX can fly from London to Kansas City, Buenos Aires to New Orleans and Anchorage to Seoul at 0.75 IMN with eight passengers and NBAA IFR reserves.

Revolutionary and the world's first purpose built fly-by-wire (FBW) business jet, the Falcon 7X capitalizes on Mach 2 technology.

If you are considering the sale or acquisition of your business jet, call 21st Century Jet Corporation today for details before making a decision.

DISTINCTIVE BUSINESS JET SALES & ACQUISITIONS. INCORPORATED IN 1989 TEL: 1.775.833.3223

INTERNET: WWW.TRI-JETS.COM

E-MAIL: sales@tri-jets.com

CBJ September_CBJ November06 19/08/2014 12:05 Page 1

General Offices

Mexico office

Minneapolis / St. Paul

TEL: 52.55.5211.1505

TEL: (952) 894-8559

CELL: 52.55.3901.1055

FAX: (952) 894-8569

E-MAIL: Enrique CBJets.com

EMAIL: INFO@CBJETS.COM

Celebrating 30 Years!

GULFSTREAM V SN 594

GULFSTREAM G200 SN 199

Of fered by Original Fortune 100 Corporation, Over 40+ Year History as a Fleet Operator of Gulfstream Aircraft, Honeywell Satcom with Wifi, Immaculate Maintenance, RRCC Engine Program

1960 TT / 1040 Landings, ESP Gold, Meets all EASA / JAR OPS Requirements, Impressive List of Options including Aerial View Camera

GULFSTREAM V SN 546 Single Owner, Forward Galley, Owners New G650 Has Arrived, Only 4100 Hours TT, Impeccable List of Options

FALCON 50 SN 177 Just over 5000 Hours TT, Upgraded 3D MSP Gold Engines, Recent New Interior from Window Ledges down including Seats, Cabin Switching, Carpet, Airshow 4000, External View Cameras, etc.

FALCON 900EXy SN 121

FALCON 50-40 SN 25

Single Owner, Former Falcon Demonstrator, Most Systems are Triple, 2529 Total Hours, FWD & AFT Lavs, AFT Cabin Divider, MSP Gold

Last Falcon 50 Ever to be Multi-million Dollar Converted, Proline 21 cockpit, TFE-40 Engines on MSP Gold, 50EX Interior New 2010

FALCON 900B SN 67 Spectacular Honeywell EPIC Cockpit Upgrade, MSP Gold Engines, Upgraded Interior, Owners New Global Express Arriving Shortly

FALCON 900B SN 155 Always US Owned, 6400 TT, MSP Gold, Forward & Aft Lavs, Dual Aft Couches

FALCON 20F SN 470 - FALCON 900C ENGINES & APU MOD 7827 TT / 5009 Landings, MSP Gold, Collins Proline II EFIS Cockpit, Dual Collins Radio Tuning Units, Dual Universal 1Lâ&#x20AC;&#x2122;s w/WAAS, ETC

CITATION X SN 37 Single Midwestern Owner, Chairman Flown, Citation Factory Services, Rolls Royce Corporate Care, Aircell AGT-5000 with WIFI, New Replacement Aircraft Has Arrived

www.cbjets.com ALSO AVAILABLE: Falcon 900EXy SN238 (Lease Only)

This being the aviation industry, you’d think more companies would share our

51,000 foot view.

Up here, the air and the competition are rare. Our birds-eye view of the aircraft brokerage market comes from our unmatched combination of over 50 years’ experience and a large, global network of partners and customers. That means you have more buy, sell and trade options.

Better perspective on market trends. And worldwide connections that put a tailwind on your transaction. Call us and see. You’ll love the view. www.jetcraft.com I info@jetcraft.com I Headquarters +1 919-941-8400

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2011 Challenger 605 - SN 5855

1,328 Hours; 556 Cycles - 12 Pax Configuration Engines Enrolled on GE OnPoint

2007 Challenger 850 - SN 8051

New to Market - Low Time 1,568 Hours; 625 Cycles Engines/APU Enrolled on JSSI

9-2014_WAS_Back Cover_51000 ft.indd 1

1992 Gulfstream GIVSP - SN 1324 New Low Price, Call for Details 13,707 Hours; 6,806 Landings 2007 Challenger 300 1994 Challenger 601-3R 1998 Challenger 604 2009 Challenger 605 2010 Challenger 605 2005 CRJ 200LR 2003 Eurocopter AS 365 N3 2007 Falcon 2000EX 2004 Falcon 900B 2002 Falcon 900C 2006 Falcon 900EX 2005 Falcon 900EX EASy

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2012 Global 5000 2014 Global 6000 2015 Global 6000 2009 Global XRS 2010 Global XRS 2010 Gulfstream 450 1998 Gulfstream IV 2005 Hawker 1000B 2007 Lear 45XR 2004 Lear 45XR Q4 2015 Lear 60SE 2008 Legacy 600

2003 Global 6000 - SN 9620

2015 Delivery - Trades Encouraged A Natural Transition from your Global 5000

2009 Global 5000 - SN 9289

Airframe on Smart Parts Plus JAR OPS1 & FAA Part 135 Compliant

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I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

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