AvBuyer Magazine February 2022 by AvBuyer Ltd.

FC February 2022 AeroBuyNow.qxp_FC December 06 27/01/2022 12:36 Page 1

Volume 26 Issue 2 2022

™

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

THIS MONTH Helicopter Comparison: Airbus H125 vs Bell 505 Aircraft Buyer Questions, Part 1: Trip & Mission Profile How to Measure BizAv’s Key Performance Indicators www.AVBUYER.com

Fli M pO RO ve In r to du R st ea ry d Gu ou id r e

Learn more about this unique opportunity and our exclusive listing on pages 8 & 9

Contents JULY.qxp 31/01/2022 11:05 Page 1

The Dassault factory-owned service center team is bigger and better than ever with the addition of ExecutJet and TAG MRO facilities. Which means shared expertise in Falcon upgrades and maintenance is always nearby. Put the number one service network to work for you, today.

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Contents JULY.qxp 31/01/2022 11:06 Page 1

FOUR WAYS TO SAY FALCON SERVICE

P004.qxp 27/01/2022 14:16 Page 1

Vol.26 Issue 2

Market Indicators

Trends and Observations from Leading Business Aviation Analysts

Contents

2022

Market Insights

Interview with Tyler Bowron, Hatt & Associates

Bombardier: BizAv Aftermarket Support Insight

Buying & Selling Aircraft

Aircraft Buyer Questions, Part 1: Trip & Mission Profile

Ownership

Grant Cardone: My Experience of Private Jets

How to Measure BizAv’s Key Performance Indicators

Planning to Charter Your Jet? Assess the Market

Aircraft Price Guide

Mid-Size Jets Values

Helicopter Comparison

Airbus H125 versus Bell 505 Jet Ranger X

Flight Department Management

Five Tips for Hiring Great Contract Pilots

Avionics

An Outlook for Avionics in 2022

Community News

OEM News and Industry Appointments

Showcases

Marketplace

Advertisers’ Index

Aircraft for Sale Index

• Aircraft Buyer Questions, Part 2: Budget • How to Understand the Current BizAv Lending Environment • Cabin Refurb: Balancing Budget, Quality and Sustainability

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION MRO

MRO

STCs: Understanding the Key to a Successful Upgrade

SPECIAL

Engine Overhaul Acronyms: Understanding the Jargon

INDUSTRY GUIDE

How to Enjoy Cabin Electronics Upgrade Success!

Tips on Scheduling Engine Overhauls & Inspections How to Adjust Engine Maintenance Coverage Safely Flight Deck Upgrade: What Drives Your Options? Tips for Your Next Aircraft Paint Project

FEBRUARY 2022

4 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Ramping up MRO Support: Dassault’s Story

Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com ADVERTISING Steve Champness Publisher Americas +1 770 769 5872 steve@avbuyer.com Lise Margin Account Manager +1 703 818 1024 lise@avbuyer.com David Olcott Account Manager +1 802 233 6458 davo@avbuyer.com Maria Brabec Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com STUDIO/PRODUCTION Helen Cavalli Mark Williams +44 (0) 20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0) 20 8255 4000 Freephone from USA: +1 855 425 7638 sue@avbuyer.com AVBUYER.COM Michas Rapf michas@avbuyer.com

Next Month

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EDITORIAL Commissioning Editor Matthew Harris +44 (0) 20 8939 7722 editorial@avbuyer.com

Read our MRO Special Industry Guide starting from the back cover of this edition

Emma Davey emma@avbuyer.com MANAGING DIRECTOR John Brennan +44 (0) 20 8255 4229 john@avbuyer.com USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE AvBuyer House, 34A High Street, Thames Ditton, Surrey KT7 0RY, UK +44 (0)20 8255 4000 Freephone from USA: +1 855 425 7638 PRINTED BY Fry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055

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AeroBuyNow February.qxp_Layout 1 24/01/2022 14:20 Page 1

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<oZclj`m\ 8Zhl`j`k`fe DXe[Xk\j BEECHCRAFT B200 OR BEECHCRAFT B350 2M$ Max Budget Cash and Educated Buyer

CESSNA GRAND CARAVAN

1.5M$ Max Budget Cash and Educated Buyer

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DASSAULT FALCON 7X • DASSAULT FALCON 900EX • DASSAULT FALCON 2000EX • CESSNA CITATION CJ1 • CESSNA CITATION SOVEREIGN + BOMBARDIER CHALLENGER 604

F]]$DXib\k Fggfikle`k`\j

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AeroBuyNow February.qxp_Layout 1 24/01/2022 14:20 Page 2

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MarketIndicators.qxp_Layout 1 25/01/2022 13:16 Page 1

MARKET INDICATORS

Business Aviation Market Overview Will the hot Business Aviation marketplace spur more mergers and acquisitions in 2022? Brian Foley believes it's possible. Here’s why…

ixteen years after starting my own business, I still don’t have a good elevator speech. Judging by public forums alone, one could reasonably assume that I must write articles, speak at conferences, or develop industry outlooks and forecasts. While all of these activities would be true, none of them are even remotely what I consider to be my day job. A snapshot of 2021 saw my activities range widely, from writing expert witness reports to analyzing future market opportunities for such random items as ice detection and avionics. I also did a lot of market research as a subcontractor for other consultancies, including in the fields of Maintenance, Repair & Overhaul (MRO), Fixed Base Operator (FBO), aviation software, and aircraft finance. One of the more interesting

10 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

aspects of my activities involves mergers and acquisitions. I help investors with the due diligence of their target acquisition, such as its market positioning and future prospects. For those selling their companies, I provide guidance and help to develop a Confidential Information Memorandum (CIM) – which is a company presentation to investors, bring the deal to market, and negotiate. Having previously been a licensed Series 7 Registered Representative with a Wall Street firm provides a firm foundation. From this unique perspective I’ve provided some thoughts on how Mergers and Acquisitions (M&A) could play out in our industry in 2022. Keep in mind that Business Aviation is a very broad industry and its multitude of segments can’t all be mentioned here.

Charter and Aircraft Management

Past outside investment in this space has primarily been for purely strategic reasons, such as a foreign charter entity needing a company with a US charter certificate to be able to satisfy cabotage rules. Foreign aircraft can’t just come to the US and begin shuttling passengers around – they need a local partner with the right to fly domestic flights. In the past, Merrill Lynch tried a rollup of charter companies only to be burned by their naivety, which may have poisoned the well for others. However, a recent development has been the re-emergence of the Special Purpose Acquisition Company (SPAC), allowing companies like Wheels Up to raise funds and be listed on the New York Stock Exchange. Otherwise, investors have generally shied away from this segment, due to www.AVBUYER.com

MarketIndicators.qxp_Layout 1 25/01/2022 13:17 Page 2

AVBUYER.com

BRIAN FOLEY formed Brian Foley Associates (BRiFO) in 2006 to assist aerospace firms and investors with strategic research. In addition to his work as Market Intelligence Editor, AvBuyer, he is a regular contributor for Forbes.com and his views are published in the media worldwide. Brian serves the Transportation Research Board as a member of the Business Aviation, helicopter, commercial airline and UAV system subcommittees, and he previously served on the Board of a Wall Street financial firm. Before starting his consultancy business, Brian was marketing director at Dassault Falcon Jet for 20 years, and started his career at Boeing. He is an instrument-rated private pilot. https://www.linkedin.com/in/brifo/

the perception that the business is only as firm as the Rolodex of clients who can change when their contract is up.

Pre-owned Aircraft Brokerage

This is another segment which has traditionally been snubbed by investors, who consider the lack of brick and mortar as a no-go. To them the real value lies in the client lists, which run the risk of morphing over time as clients and salespeople come and go. A recent exception was outside investment in a newer pre-owned company which provides a suite of preowned aircraft services, rather than just buy- and sell-side assignments. This could prove to be a blueprint for others seeking investors.

FBO/MRO

These have been the big investment news stories in the industry for over a

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decade. Investors see value in consolidating these fragmented markets, and targets generally have the required revenues and profitability to be considered a sweet spot. There will certainly be more activity in these spaces for the foreseeable future, but nowhere near the level of the recent Atlantic Aviation and Signature Flight Support deals.

Aircraft Manufacturers

One could argue that Bombardier has been hard at work window-dressing for a future potential buyer. And let’s not forget the makers of smaller General Aviation propeller-driven aircraft, who could become more interesting targets from an investment standpoint as more aircraft are needed for pilot training, and for new owners circumventing the whole airline experience.

Software as a Service (SaaS)

This is a favorite of investors, providing the company is established with a proven revenue and profit history. Start-ups, not so much.

In Summary

While this is in no way an exhaustive list, Business Aviation companies riding a wave of popularity should be in their best position for years to raise growth capital, divest, or seek an acquisition. Tremendous balance sheet growth, and the lack of highyield investing alternatives, should make 2022 a very active M&A year. In the interim, I’ll keep working on that elevator speech. MI www.brifo.com



page 14

AVBUYER MAGAZINE Vol 26 Issue 2 2022

EXCLUSIVELY REPRESENTED BY

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MarketIndicators.qxp_Layout 1 25/01/2022 13:19 Page 3

MARKET INDICATORS

AVBUYER.com

Global Flight Activity Update According to WingX Advance, 2021 marked the busiest year on record for global business jet activity, with 3.3 million flights from January through December. Business jet traffic was 7% higher than in 2019, the previous high point. The growth in business jet flying activity was at its highest in December 2021, with 23% more sectors flown than December 2019. Over the holiday period (December 20th–Jan 2nd), business jets flew 127,000 sectors, 41% more than in the same period in 2019. In contrast, scheduled airline passenger traffic was down by 28% compared to December 2019, in line with the full year trend.

• •

North America

In North America (including Mexico and Canada), business jets flew 6% more sectors compared to 2019. The demand was fueled by the United States market where business jet activity was 10% higher than in 2019. Canada saw 24% fewer sectors than in 2019. The rebound in business jet demand in the US came from Fractional and branded Charter operations, up by 20% and 18% during 2021, respectively, compared to 2019. Private and Corporate Flight Departments saw a more modest recovery in activity, but nonetheless surpassed comparative 2019 activity by the end of 2021. The high points in business jet demand across the US showed up in holiday periods, and were geographically concentrated around leisure destinations. Demand was exceptionally high during the Christmas and New Year period: Between December 20th and Jan 2nd, business jets in the US flew 46% more sectors than for the same period in 2019. •

Within the US market, the busiest jet segment in 2021 was Light Jets with 662,000 sectors flown – almost one million flying hours

14 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

• •

operated – with traffic up by 15% compared to 2019. The Super Mid-size Jet segment saw the largest growth in sectors compared to 2019, up 18%. Ultra-Long Range Jet activity was well behind pre-pandemic levels during 2020 and H1 2021, but by year-end, sectors flown had nosed ahead of 2019. Heavy Jets have not yet seen a robust recovery. Bizliners flew 43% fewer sectors in 2021, compared to 2019.

Europe

Despite the hesitant recovery of European economies from lockdown, business jet activity in the region clearly surpassed 2019 levels, with 5% more sectors flown by year-end 2021. As in the US, business jet demand peaked during the Christmas and New Year holiday period, with 30% more sectors flown than during the same period in 2019. Demand was variable geographically, with the three largest markets – France, Germany and the UK – ending the year still some way short of 2019’s levels, in terms of sectors flown. In contrast, Italy and Spain saw the strongest rebounds in the EU in 2021, reflecting robust leisure demand. Russia and Turkey, with large domestic markets and looser travel restrictions, both saw consistently strong increases in business jet sectors, up by ~25% compared to 2019.

Rest of the World

Business jet activity outside the North

American and European regions constituted a small minority of the global total, with around 200,000 sectors representing around 6% of worldwide activity in 2021. There was substantial growth compared to prepandemic trends, with 28% more business jet flights operated than in 2019. The trends were diverse regionally, with Asia getting modest growth in business jet traffic, activity buoyed up in India and Australia, but stunted in China – especially in the latter half of the year. The Middle East saw some of the strongest growth in business jet demand in 2021, notably in the United Arab Emirates where sectors were up by 73% compared to 2019, contrasting with very modest growth in Saudi Arabia. Elsewhere, Brazil, Nigeria and Egypt saw much more activity in 2021 than in 2019. “Business Aviation flourished in 2021, with a very strong rebound in demand from Q2 onwards, characterized by leisure demand, and unleashed as the travel restrictions loosened,” said Richard Koe, Managing Director, WingX Advance. “The prolonged slump in scheduled airline capacity, and the persistent hygiene concerns over new virus variants appear to have migrated Business Aviation services to many new customers. The resilience of the rebound in 2021 will be tested in early 2022 by the travel behavior of business executives.” MI www.wingx-advance.com



page 18

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Contents JULY.qxp 31/01/2022 11:13 Page 1

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Contents JULY.qxp 31/01/2022 11:15 Page 1

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MARKET INDICATORS

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In-Service Aircraft Maintenance Condition & Marketability While Q4 2021 sales for Asset Insight’s tracked fleet of business jets and turboprops were lower than in Q4 2020 (587 vs. 624 units), the cause was not a lack of demand…

Lack of availability was at the core of the reduction in sales during Q4 2021; especially availability of young, low-time aircraft. The 134-model fleet reviewed by Asset Insight decreased another 6.6% in December (126 fewer units), 25.7% during Q4 2021, and 53.8% year-over-year (YoY) – or 1,028 units – exceeding 2020’s inventory fleet decrease of 902 units.

Aircraft Values

Aircraft values require an understanding of the difference between Ask Prices and Transaction Values. Average Ask Price for our meager, and heavily picked-over, tracked fleet decreased 18.7% during December, 17.5% during Q4 2021, and 18.9% YoY, resulting in a record low figure. On the other hand, younger, lower-time inventory has moved quickly, often without a public listing, and sometimes at a Transaction Value that has exceeded the seller’s expectation, primarily due to buyer demand. Thus, to assume that values have decreased for desirable aircraft would be wrong.

Inventory Fleet Maintenance Condition

With buyer preference being centered on the best available aircraft, both Quality Rating and Maintenance Exposure registered 12-month worst figures… Quality Rating decreased 0.8% in December to 5.146, the tracked fleet’s third consecutive 12-month low, equating to a decrease of 1.9% during Q4, and 3.8% YoY. The available assets remained within the ‘Very Good’ territory, although most listed aircraft are facing more near-term maintenance events. The listed fleet’s Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) increased (worsened) 7% in December, 2.7% during Q4 2021, and 6% YoY. The result is that buyers should expect maintenance events (for the limited inventory) to cost more to complete.

Maintenance Exposure to Ask Price (ETP) Ratio

The year closed with the ETP Ratio at 81% - a record high figure, but not surprising, considering the 12-month high Maintenance Exposure and record-low Ask Price figures. All four groups were negatively impacted, some more than others. The current ETP Ratio statistically evidences the difficulty sellers are encountering in remarketing their aircraft, and the reason why the listed fleet’s Days on Market increased 11% during Q4. For anyone not familiar with the ETP Ratio, the statistic is a useful indicator of an aircraft’s marketability. It is computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ (DoM) analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During Q4 2021, assets whose ETP Ratio was 40% or higher were listed for sale more than 59% longer (on average) than aircraft whose Ratio was below 40% (340 versus 541 Days on Market). Additionally, nearly 59% of our tracked models, and over 64% of all aircraft posted an ETP Ratio above the 40% excessive mark. page 22

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18 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Table A Fleet Maintenance Condition $ Million $1.60 5.40

$1.53

5.30

$1.50

5.20

5.146

$1.40

5.10 J

Quality Rating

Maintenance Exposure

Quality Rating Trendline

Table B G650ER 2.8% G500 3.0% F2000LXS 6.0% Global 6000 6.7% Citation CJ4 525C 9.6% Phenom 300 13.3% F900EX EASy 13.7% King Air 350i 14.4% Legacy 650 14.9% Citation Sovereign 680 14.9% Boeing BBJ 15.0% G150 16.2% Pilatus PC-12 16.7% Piper Meridian 18.7% Citation Encore + 18.9% F900EX 19.8% Caravan 208-675 22.7% TBM 850 23.0% Citation CJ2+ 525A 23.6% Citation Mustang 510 28.5% Global XRS 29.2% Piaggio P-180 II 29.7% King Air B200 -Post-2000 30.9% King Air 350 - Post-2000 31.4% G550 31.7% Embraer Legacy 600 32.6% Hawker 4000 33.1% Caravan Grand 208B 33.4% Citation Encore 34.9% Hawker 850XP 35.2% Phenom 100 36.4% F900B 37.4% GV 37.7%

Learjet 40 40.1% Citation X (MSG3) 40.3% King Air 350 - Pre-2001 40.5% Global 5000 40.8% Hawker 400XP 41.5% King Air 300 44.0% Citation CJ2 44.0% Citation V Ultra 45.5% King Air B200 - Pre-200148.3% Caravan 208 49.3% Citation Excel 560XL 54.4% F2000 55.0% G200 57.7% Citation CJ1 61.0% Citation VII 64.1% CL-604 65.6% TBM 700A 66.2% Hawker 800XP 68.8% Premier 1A 73.5% Hawker Beechjet 400A 74.5% Hawker Beechjet 400 82.3% Learjet 45 w/APU 83.9% GIV-SP 89.9% Learjet 60 90.8% F50 91.8% Premier 1 91.8% King Air C90 93.6% Hawker 1000A 100.1% GIV 109.3% Piaggio P-180 109.3% F20-5 109.6% Learjet 31A 112.2% Citation VI 120.2% G100 120.2% Hawker 800A 120.9% Citation V 560 124.9% Citation ISP 137.3% Citation II 137.5% CL-601-3A 138.9% Learjet 55 158.0% Citation III 179.7% Learjet 31 204.1% Citation Bravo 216.1% Learjet 35A 229.2% Hawker 125-700A 287.4% GIII 316.8% CL-601-1A 352.3%

Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of December 31 2021 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)

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Hatt & Associates February.qxp_Layout 1 24/01/2022 14:25 Page 1

2008 Hawker 4000 - Off Market • Asking Price: Make Oﬀer • 5,600 hours since new • Engines enrolled on ESP Gold

• Next Gen Avionics ADSB-Out, TCAS 7.1 • ATG-5000 High Speed Internet • Painted April 2018

E, F, and G Insp. Completed in September2016 by Standard Aero Teflon Coating completed in 2017

Unique in Experience, Global in Scope. 2003 Challenger 850 S/N: 7755. Reg: N480SJ • 12,114.1 Hours since New • Engines and APU on JSSI • Low Utilization Maintenance Program (LUMP) • 15 Passenger VIP Layout • Interior Refurbished 2013 • Paint Refurbished 2019 • Delivered w/ Gear Complete and Current on Inspections

1983 King Air F90-1 Off Market • • • •

8,963.7 hours since new 2nd Garmin GTN 750 GPS Garmin GDL-69 XM Weather Recent Hot Sections and Propeller Overhaul • New Interior in 2019

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Aircraft Wanted Hawker 900XP

File Picture

+41 22 787 08 77 / +1 301 525 4380 / +65 6221 0989 TRADING.GENEVA@SPARFELL.AERO

2007 BOEING 737-700 BBJ OFF-MARKET

TRADING.USA@SPARFELL.AERO TRADING.SINGAPORE@SPARFELL.AERO

3’500 Total Hours, VIP Bedroom & Lavatory, 15 Passengers

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File Picture

WWW.SPARFELL.AERO CHARTER

MANAGEMENT

SALES & ACQUISITIONS

LEASING

File Picture

2002 BOEING 737-700 BBJ OFF-MARKET

2015 PHENOM 300 OFF-MARKET

8’500 Total Hours, VIP Bedroom & Lavatory, 18 Passengers

3’000 Total Hours, EASA, On JSSI and EEC standard

Make Offer

File Picture

2012 GULFSTREAM G550 S/N 5349

1997 CITATION X OFF-MARKET

3’100 Total Hours, 1’250 Total Cycles, US-Based, Engines, Airframe & APU on Programs, 16 Passengers

8’500 Total Hours, Winglets Engines on Program, HAPP

Ask Price $19,000,000

Make Offer

File Picture

2006 CITATION XLS OFF-MARKET

2007 HAWKER 400XP S/N 501

6’200 Total Hours, EASA, On JSSI and ProParts

4’800 Total Hours, VMAX Engine Program, ADSB, EASA, Fresh A/B/C/D Inspections

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DESIGN

CHARTER

MANAGEMENT

SALES & ACQUISITIONS

LEASING

DESIGN

2007 AGUSTA A109E POWER OFF-MARKET

1980 BELL 206 S/N 8592

2’150 Total Hours, 4’600 Total Cycles, EASA, Engines on Aerodynamics Powerplan, 5+1 Passengers

3’750 Total Hours, 5’500 Total Cycles, EASA, Floats Equipped, Recent Paint and Interior

DEAL PENDING

Make Offer

2014 CHALLENGER 605 S/N 5966

1995 CITATION ULTRA S/N 280

3’000 TT, EASA, SmartParts, Engines GE OnPoint, APU MSP Gold, One owner since new, 12 Passengers

8’618 Total Hours, EASA, WAAS/LPV, ADS-B Out

DEAL PENDING

Deal Pending

2014 CITATION CJ4 OFF-MARKET

2013 PC12NG S/N 1349

3’400 TT, ADS-B Out v2, T-CAS 7.1, Airframe & Engines on Programs,EASA, 9 Pax, WAAS, LPV, One Owner since New

4’342 Total Hours, ESP Gold, 8 Pax Interior, Large Cargo Door, Cabin Fresh Air and Filtration System

Deal Pending

MarketIndicators.qxp_Layout 1 25/01/2022 13:22 Page 5

MARKET INDICATORS

Large Jets

Mid-Size Jets

Ask Price vs. Maintenance Exposure

$ Millions

$3.50

$1.34 $1.32 $1.30 $1.28 $1.26 $1.24 $1.22

$1.30

$3.00 $2.50

Dec-21

Nov-21

Sep-21

Jul-21

Aug-21

Jun-21

May-21

Apr-21

Oct-21

$2.17

$2.00 Jan-21

Dec-21

Nov-21

Oct-21

Sep-21

Jul-21

Aug-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

$3.30

$3.60 $3.50 $3.40 $3.30 $3.20 $3.10 $3.00

Feb-21

$13.06

Mar-21

$15.0 $14.0 $13.0 $12.0 $11.0 $10.0 $9.0

$ Millions

Asset Quality Rating

Scale -2.500 to 10.000

5.700 5.400 5.300

5.600

5.200 5.100

5.500

5.426 5.400

5.012

5.000

Market Summary

Asset Insight’s tracked fleet posted a new record-low inventory figure of 4.1% to end the year, with availability for the overall active aircraft fleet recording an even lower percentage. By way of comparison, inventory rested at 10.1% of the active fleet in December of 2020, and availability has now decreased every month since peaking during June 2020. Overall demand ended the year at a record-high 4.40, on Asset Insight’s scale of 0.00 (lowest) to 5.00 (highest). With factory-new aircraft positions not available for up to 24 months, production figures unlikely to increase during H1 2022, and an inventory comprised of too many undesirable assets, private aviation truly finds itself in uncharted territory. Large Jets: Registering the highest demand among the four groups of 4.65, and the lowest availability (3.5% of the active fleet), Large Jets posted 172 transactions during Q4 2021. In December, listings dipped 25% (56 units), equating to a 40.8% decrease during Q4, and 61% (263 units) for the year. The group’s Quality Rating decreased 2.3% to post a 12-month low figure that was also 0.5% lower for the quarter, and 4.5% for the year. At 5.426, the Quality Rating decrease dropped Large Jets from the ‘Outstanding’ to ‘Excellent’ range, but a decent Rating does not mean assets suddenly become more appealing. Maintenance Exposure did improve by 7.0%, but was still 1.6% higher (worse) than the previous quarterly figure, along with 8.9% higher YoY. Ask Price decreased 6.5% for the month, but was still up 14.5% in Q4, and 11.5% for the calendar year. All these changes negatively impacted the listed fleet’s ETP Ratio, increasing the figure to 65.7%, a number half-way between the group’s 12-month average and high. In a rush to close before 22 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Dec-21

Nov-21

Oct-21

Sep-21

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-21

Nov-21

Oct-21

Sep-21

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

4.900

year-end, some buyers agreed to acquire their aircraft with a limited pre-purchase inspection (in rare cases no inspection at all) – a financially dangerous practice. Mid-Size Jets: Q4 2021 produced 140 Mid-Size Jet transactions. There was a 5.2% availability decrease during December (27 units), a decrease of 22.5% in Q4 (69 units), and 55.7% fewer listings YoY (290 units). The number of sales came from an all-time high Demand of 4.32, combining with lowered availability to 4.9% of the fleet compared to 10.7% a year ago. The fleet mix change resulted in Quality Rating and Maintenance Exposure scoring 12-month worst figures. The Quality Rating, at 5.012, decreased 1.9% for December, 4.6% for Q4, and 6.5% YoY, but remained within the ‘Very Good’ range. Maintenance Exposure increased 3.1% for December, 3.6% for Q4, and 3.1% YoY. Ask Price set a new record-low figure, tumbling 20.1% in December, 33.3% during Q4, and 30.4% for the year. As you would expect, these statistics did not bode well for the ETP Ratio, which rose to 83.6% - the group’s 12-month high (worst) figure. With only 231 assets listed for sale as 2021 closed, spread across a 45-model tracked fleet, buyers are likely to be having difficulty identifying aircraft with the specification they desire. Light Jets: With Demand at a record-high 4.16, 155 transactions closed during Q4 for the tracked 29-model fleet, resulting in a 3.1% inventory decrease during December (17 units), 16.3% during Q4 (52 units), and 51.7% YoY (a 286-unit decrease). The group’s availability ended 2021 at 4.0% of the active fleet, compared to 9.6% the previous year. The latest inventory fleet mix led to a 1.0% lower (worse) www.AVBUYER.com

MarketIndicators.qxp_Layout 1 25/01/2022 13:23 Page 6

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Light Jets

Turboprops

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure $ Millions

$ Millions

$1.80 $1.70 $0.97

$1.60

$0.60

$1.75

$1.10

$0.55

$1.70

$1.00

$0.55

$1.65

$1.50

$0.90

$1.59 $1.55 Dec-21

Nov-21

Oct-21

Sep-21

Aug-21

Jul-21

Jun-21

Apr-21

May-21

Feb-21

Mar-21

$0.45 Jan-21

$0.80 Dec-21

Nov-21

Sep-21

Aug-21

Jul-21

Jun-21

Apr-21

May-21

Feb-21

Mar-21

Jan-21

Oct-21

$1.33

$1.30

$0.50

$1.60

$1.40

Asset Quality Rating

Scale -2.500 to 10.000

5.300 5.200

5.200

5.123 5.100 5.100 5.000

5.025

Turboprops: With 120 transactions compiled during Q4 2021, the group’s 17 tracked models represent 7.1 trades per model, the highest ratio among the four groups. Turboprops also registered the second-highest demand rate at 4.45, and the statistics led to a 6.4% inventory decrease for December (26 units), along with a drop of 24.6% for the quarter (71 units) and 46.4% YoY (189 units). Interestingly, the latest fleet mix improved the group’s Quality Rating by a nominal 0.2% during December, and 1.4% during Q4,

Dec-21

Nov-21

Oct-21

Sep-21

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Asset Quality Rating Key Outstanding Excellent 5.500 5.250 or to Greater 5.499

Very Good 5.000 to 5.249

Good 4.750 to 4.999

Below Average Average 4.500 Less to than 4.749 4.500

but the figure was 2.4% lower (worse) YoY. Maintenance exposure increased (worsened) 0.5% for December, 0.6% for Q4, and 7.85% YoY. Ask Price decreased 0.6% in December (to a figure just above the group’s 12-month low), 0.1% during Q4 2021, and remained fairly consistent YoY by decreasing a nominal 0.3%. At 42.7%, the ETP Ratio continues to hover just above the 40% excessive point. Considering the tracked fleet’s availability is as low as 3.9%, advantage remains with sellers, as has been proven during the past few months by the higher Transaction Values generated by younger, desirable units. MI www.assetinsight.com ❙

TONY KIOUSSIS is President & CEO of Asset Insight, providing valuations, audits, analytics and consulting services, and a uniform methodology for grading an aircraft’s maintenance condition. Previously he worked with GE Capital’s Corporate Aircraft Finance group; Jet Aviation; and JSSI, developing the “Tip-to-Tail” airframe maintenance program. https://www.linkedin.com/in/tony-kioussis-a366b28/

www.AVBUYER.com

Mar-21

Jan-21

Dec-21

Nov-21

Oct-21

Sep-21

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Quality Rating, that was also 3.8% lower for Q4, and 2.4% lower YoY. However, at 5.025, the Rating was insufficient to drop the group out of ‘Very Good’ territory. Maintenance Exposure worsened (increased) 2.1% during December, but actually improved (decreased) a nominal 0.1% during Q4, and 7.7% YoY. The listed fleet’s Ask Price average continued to be lower than that for Turboprops, and posted a 12-month low by decreasing 13.6% in December, 12.6% for Q4, and 24.3% YoY. The impact on the ETP Ratio was an increase to 118%, which was 10.5 percentage points higher than December 2020’s figure. The problem facing sellers is not so much their aircraft’s maintenance status as its age – making its pricing incongruous with the asset’s embedded maintenance, and the unrecoverable cost for any refurbishments desired by the buyer.

Feb-21

4.900

5.000

UNDERSTAND THE BIZAV MARKET with AvBUYER.com

AVBUYER MAGAZINE Vol 26 Issue 2 2022

1 Freestream January.qxp 27/01/2022 09:53 Page 1

2020 Boeing BBJ MAX 8 S/N: 63431. Green Delivery

2007 in Service 2010 BBJ S/N: 36090 Airframe Total Time: 2,451 hours Aircraft. Aircraft Total Cycles: 724 FREESTREAM AIRCRAFT LIMITED

London +44 207 584 3800 sales@freestream.com

FREESTREAM AIRCRAFT (H.K.) LIMITED

Hong Kong +852 2724 5620 info@freestreamhongkong.com

2 Freestream February.qxp 27/01/2022 09:54 Page 1

2016 Global 6000

2016 G450 -

- under 1000hrs since new

2015 G650ER -

Off Market – coming into inventory soon

2011 Falcon 2000LX -

2018 G650 -

Off Market – coming into inventory soon FREESTREAM AIRCRAFT LIMITED

London +44 207 584 3800 sales@freestream.com

Off Market – coming into inventory soon FREESTREAM AIRCRAFT (H.K.) LIMITED

Hong Kong +852 2724 5620 info@freestreamhongkong.com

Market Insights 1.qxp_MARKET INSIGHTS 27/01/2022 09:45 Page 1

MARKET INSIGHTS

Market Insights – Tyler Bowron, Hatt & Associates What do the latest trends and observations in the pre-owned aircraft sales industry indicate for buyers and sellers planning a move into the market this year? AvBuyer’s Matt Harris spoke to Hatt & Associates’ Tyler Bowron to seek insights…

oming from an aviation background (his father was in military aviation in the 1950s before becoming a corporate airplane pilot) Brad Hatt, Founder of Hatt & Associates followed in his father’s footsteps when he embarked on his own aviation career, selling aeronautical radios for an OEM. He soon found his feet in the industry, moving to Hawker Beechcraft in the 1990s where he spent 17 successful years. He became the OEM’s youngest-ever executive, and eventually was appointed President in 2005. After five years at the helm, he left to start Hatt & Associates, his own independent global aircraft sales company. With a team experienced in the global jet marketplace, Hatt & Associates is experienced with OEMs, FBOs, fractional ownership companies, and aircraft suppliers. “We assist our clients along every step of the journey to aircraft ownership – from airframe selection, to financing, to take-off,” the company promises. “While we specialize in the Beechcraft King Air and Hawker lines, ultimately our expertise is in all turbine lines,” Tyler Bowron, a Partner at Hatt & Associates told AvBuyer. “We have lots of involvement with Cessna Citations, Dassault Falcon models, and Gulfstreams in particular.

26 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

“It’s really dependent on the needs of our clients, though,” he explains, adding that in a typical year the company can expect to complete between 25 and 30 transactions, worth over $100m. Tyler, like Brad, caught the aviation bug at an early age, having a neighbour within cycling distance who had a grass strip and hangar. “That gave me the chance to fly in a Piper Cub, and an open-cockpit Wako,” he recalls. Though he studied aviation and learned to fly, Tyler’s career began in the gas and oil sector, working for a company, owned by T Boone Pickens, which happened to operate multiple business jets. It was Pickens himself, who, discovering Tyler was a pilot, urged him to pursue a career in aviation. “I began working in aviation in 2007, for Cerretani Aviation,” he says, “learning the ropes and building my own book of business contacts.” At the time Cerretani had an agreement with a leading Fractional Ownership company, selling its Citation jets once they’d been retired from the fleet. Eventually, the Fractional Ownership company acquired Cerretani, and while Tyler continued to work on behalf of his own clients, he was also appointed to run the European sales office for whole aircraft. Just as he was preparing to relocate to London, Covid-19 put his plans on ice.

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Market Insights 1.qxp_MARKET INSIGHTS 27/01/2022 09:46 Page 2

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Seeking a new challenge, he found it with Hatt & Associates, who he joined in 2021 as a Partner alongside Jayson Hatt. Brad Hatt oversees the company as President. With a rich and extensive background in the business aircraft pre-owned sales market, AvBuyer caught up with Tyler to tap his and Hatt & Associates’ insights and expertise in the marketplace today. AvBuyer: Tyler, tell us about the year you’ve just seen in the pre-owned aircraft sales industry. We’ve heard it described as being ‘unique’ by some, while others likened it to 2008 just before the Great Recession. How do you see it? TB: Last year was certainly an exciting year. In terms of its uniqueness, and although the lead-up to the Great Recession in 2008 felt similar, 2021 was certainly different. For example, the available inventory today is well below what we’ve ever seen before. In 2008, the popular markets had around 5% available inventory. Today, some of the popular pre-owned markets have zero available inventory. That’s not to say that aircraft aren’t available to buy. They’re just selling before they reach the open market in most cases.

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AvBuyer: What were the challenges, both to the aircraft broker community, and to buyers and sellers, in 2021? TB: The lack of inventory made it difficult for buyers and brokers alike. We at Hatt & Associates found it important to be part of a network of brokers in the form of the International Aircraft Dealers Association (IADA). Together with other IADA members, and friends within the wider brokerage community, we were able to navigate the market with relatively little interruption. The market conditions did demand much more work in locating aircraft for clients, though, as you can imagine. For sellers, this was, and continues to be a market presenting price challenges. Prices have gone up drastically over a short period of time. Every time a new pricing precedent was set, prices seemed to go up with the next transaction. Knowing how to maximize on the sale of the aircraft can be difficult in today’s market. That’s where working alongside an experienced broker makes a big difference. AvBuyer: According to a couple of sources we’ve read, the scarcity of great quality inventory in the pre-owned market led some desperate buyers to forego important procedures like the pre-purchase inspection in order to

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

Market Insights 1.qxp_MARKET INSIGHTS 27/01/2022 09:46 Page 3

MARKET INSIGHTS

AVBUYER.com

quickly bag their preferred jet. How would you advise under-pressure buyers who are in a hurry to purchase an aircraft today? TB: It’s unbelievable, but we saw it too: buyers forgoing a pre-purchase inspection, or having minimal inspections. Many of these were buyers with little or no representation on their side of the transaction. You need representation in this (or any) market – and not just somebody who will represent your short-term acquisition needs, but somebody to protect your longer-term interests regarding the ownership experience and future re-sale of the aircraft. Today, as always, it is critical to be patient when you’re buying a pre-owned aircraft. Sure, the market is frustrating, and there are a lot of buyers champing at the bit to jump in with a purchase, but it’s absolutely necessary to slow down and analyse exactly what you are buying. Also, be prepared to pay more. Every jet aircraft went up by hundreds of thousands of dollars, and some went up by multiple millions. AvBuyer: Most sellers will be hoping to achieve higher prices for their aircraft in today’s market. Who is really likely to benefit from price increases, and who – in reality – is ‘hoping against hope’ in this regard? TB: This market really benefits aircraft owners who have held on to their older aircraft. There have been many aircraft transactions for those previously difficultto-sell legacy aircraft, those that may have been all-but-forgotten in previous years but are now fetching multi-million dollar prices, owing to lack of newer inventory. At the opposite end of the spectrum, the market is also benefiting sellers who bought newer aircraft, say, two or three years ago. If they purchased their aircraft for $7m, and sell it for $9m in today’s market, they effectively have had all their flying paid for, purely because of price appreciation in today’s heated marketplace. On the other side of the fence, there were buyers hoping for an opportunity to buy low, due to the pandemic, who are having to adjust their price expectations. The anticipated flux of ‘distressed’ sellers as a result of Covid-19 never materialized. Prices didn’t come down – they went up. That’s another major difference between now and in 2008. This market is not in a financial crisis. AvBuyer: What are the markets that are catching your eye at the moment and why? Which do you expect to see stand out over the course of 2022? TB: The Hawker 850 and Hawker 900 markets are notable, and are largely being driven by first-time buyers. Jets in the $2-5m range are popular today among that buyer demographic, and are likely to 28 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

“Today, some of the popular pre-owned markets have zero available inventory.” continue to see strong activity throughout 2022. In contrast, there are signs in the larger jet legacy markets (such as the Gulfstream G550 market) that prices are starting to stabilize and possibly soften. We’re expecting to see inventory creep up in this part of the pre-owned marketplace, which should result in a softening in this market over the course of 2022. The pace we have seen in the market over the last year, though unprecedented, still allows for buyers to make a sound purchase, but it’s vital to have a full understanding of the equipment you’re buying.



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Jet HQ inventory FP February.qxp_Layout 1 27/01/2022 12:38 Page 1

Your Headquarters for Global Aircraft Sales

2020 BEECHCRAFT KING AIR 360 • Serial Number: FL-1236 • TT: 189 • Total Landings: 94 • One Private Owner • Delivers with Fresh Pre-Buy • ADS-B Out/WAAS/LPV • GoGo Advance L3 Wi-Fi • Special Edition Lava/Saddle Interior; • Two-Tone Split Base Paint Stripe

2004 EUROCOPTER EC-130-B4 • Serial Number: 3802 • TT: 2,636.07 • Total Landings: 4,099 • Six Passenger Configuration • Always Hangared • Freon Air Conditioning • Freshly Refurbished Interior – June 2021

2005 PREMIER 1 • Serial Number: RB-133 • TT: 3,004 • Total Landings: 2,292 • Engines and Avionics on Programs • One Owner Since New • Collins Pro Line 21 w/ADS-B Out & RVSM • Always Hangared

Market Insights 1.qxp_MARKET INSIGHTS 25/01/2022 13:07 Page 4

MARKET INSIGHTS

AVBUYER.com

JAYSON HATT (PARTNER), BRAD HATT (PRESIDENT), AND TYLER BOWRON (PARTNER) OF HATT & ASSOCIATES

AvBuyer: Looking at the market more widely over the coming year, what do you expect to see happen? Are we likely to be looking back on another record year for sales come New Year 2023? TB: The sales numbers we’ve just seen in 2021 will be nearly impossible to duplicate, purely due to the lack of inventory that’s available. Over the course of 2022, many first-time buyers of 2020 and 2021 will likely evaluate their choice to move into aircraft ownership along with the cost of ownership, and some – especially those flying less than 100 hours annually – will be looking to sell as a result. The additional inventory this will make available will coincide with the OEMs ramping-up production, and as other buyers take ownership of their factory-new jets, they will also place their existing jets on the market for sale, further replenishing the pool of available inventory. This should lead to some market stabilization, but it won’t be seen in earnest until 2023. Ultimately, 2022 will be another strong year, but not on the same scale as 2021. AvBuyer: Finally, we’ve all heard about the many firsttime users of business aircraft that emerged from the pandemic. Some will be looking for their first move into ownership this year, having experienced the benefits of

Business Aviation through charter and fractional ownership. What’s your advice to them as they make their first steps into owning a jet? TB: The advice remains the same, regardless of the market: Ensure the aircraft matches your mission; and understand the full cost of ownership – this is critical. The high demand for charter flights has brought an increase in the cost to hire a flight (in some cases, the cost to charter is outrageously high). But the current high charter rates are probably not sustainable. If you find you have a need to fly 100 hours annually, it may make sense for you to consider ownership, but don’t rely on the high revenues from charter in this unique market to offset your cost of ownership. And then there’s just common sense: As mentioned, be sure to have a reputable broker involved from the beginning of the process, to ensure both your short- and long-term interests are being protected. Most first time buyers will find themselves looking for another aircraft within a few years, and when it comes time to sell your initial investment, a sound purchase now will make the transition to your next aircraft a much more enjoyable experience. More information from www.hattaviation.com; email: tyler@hattaviation.com ❚

MATT HARRIS is commissioning editor for AvBuyer. He is an experienced General and Business Aviation journalist and has edited a variety of titles across the last two decades. These include AvBuyer, BizJet Advisor and GA Buyer Europe. https://www.linkedin.com/in/ matthew-harris-avbuyer/

30 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

UNDERSTAND THE MARKET BETTER with AvBUYER.com

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GLOBAL 6500 s n 6 0038

GULFSTREAM IVSP

FALCON 8X

1 37 1

4 06

GULFSTREAM G280

GULFSTREAM IV

114 8

FALCON 900EX EASY

CITATION X s n 9 0

LEGACY 600

HAWKER 800XP s n 25 8382

LEARJET 60

2 072

18 1

1014

293

INFO@AVPROJETS.COM WWW.AVPROJETS.COM l Annapolis, MD 21401 l (410) 573-1515

900 Bestgate Road, Suite 412

Market Insights 2.qxp_MARKET INSIGHTS 25/01/2022 13:04 Page 1

MARKET INSIGHTS

Bombardier: BizAv Aftermarket Support Insight

Looking for insights into the current and future challenges faced by the leading business jet OEM aftermarket support networks today? AvBuyer’s Matt Harris asked Bombardier’s Chris Debergh for his perspectives on the sector.

here’s a lot more to business jet manufacturers than simply building and selling airplanes. A big part of their activities involves taking care of the ongoing needs of owners and operators long after the aircraft have flown away from the factory with their new owners. That support ensures the aircraft remain in optimal condition, providing the functionality they were built to deliver; are modified to remain airworthy where necessary; can be upgraded when improved solutions become available to enhance the flying experience; and are expertly maintained long after the factory warranty expired. All of this ensures operators of newer, and out-ofproduction pre-owned jets, alike, can enjoy flying those aircraft with peace of mind.

32 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

For this reason, the leading aircraft manufacturers have extensive support networks, usually spread strategically around the planet, ensuring the necessary assistance reaches operators where it’s needed, when it’s needed.

Worldwide Support

Bombardier is no exception with nine strategically located service centers around the world, 11 Line Maintenance Stations (LMS), and a highly efficient and flexible Mobile Response Team (MRT). With 30 mobile trucks and aircraft atthe-ready, Bombardier says it can respond to any customer need in any part of the world quickly and efficiently, and supplements this capability with 16 Authorized Service Facilities (ASF). Its worldwide aftermarket network is connected by its

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Market Insights 2.qxp_MARKET INSIGHTS 25/01/2022 13:05 Page 2

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aftermarket parts and MRO business around the world. “It’s a dynamic, intense role – one I thoroughly enjoy,” he says. “I am given the opportunity to implement operating models to influence and maximize the delivery of Bombardier’s service experience on every level. “The overriding goal here at Bombardier is to ensure we provide customers with the best service experience possible…” he adds. “It’s a challenging job, but we have a very dynamic, dedicated team of more than 2,500 people around the world to ensure it happens on a consistent basis.” Despite the busy nature of his work, Chris found time to sit down with AvBuyer recently and share both his and Bombardier’s insights on the aftermarket services sector in Business Aviation today… AvBuyer: Covid-19 has driven a lot of first-time users into the Business Aviation market, which generated a lot of demand for new and pre-owned jets over the past 18 months. Can you tell us about the impact you’re seeing on the maintenance services sector right now? Is it substantial, as many are saying?

24/7 Customer Response Centre in Montreal, the ‘nerve center’ that orchestrates prompt responses to all customer needs. In 2020, Bombardier serviced more than 1,800 aircraft at its service facilities, Line Maintenance Stations, and through its Mobile Response Teams. “We are in the midst of growing our aftermarket division significantly around the world, adding new service facilities and greatly enhancing existing service centers,” Chris Debergh, Bombardier’s Vice President and General Manager, OEM Parts and Services told AvBuyer. “It’s about flexibility and expediency – providing prompt, efficient, attentive service throughout our extensive aftermarket network. “This year, we will celebrate new service center projects in Miami and Melbourne, Australia, and add comprehensive enhancements to our Biggin Hill and Singapore service facilities.” Chris joined Bombardier in 2017 as Vice President of Delivery, bringing with him a solid background that included several senior leadership roles in business strategy and development Today, he leads the teams managing Bombardier’s

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CD: As more customers are seeing the value in private aviation, we have seen increased levels of flying, driving OEM maintenance services throughout 2021 and continuing into this year. A large majority of these are pre-buy inspections specifically combined with major inspections and aircraft upgrades. As a result, our maintenance facilities are in high demand for all services – mechanical, interior and paint – which is driving an aggressive recruiting and training focus for all our service centers worldwide. Throughout the pandemic, we have maintained a steady stream of traffic across our service center network. The aircraft modification market has been a strong growth opportunity, and a stabilizing force throughout all economic cycles. Many of our customers have taken advantage during this period to advance their scheduled maintenance, or upgrade their business jets to increase their aircraft’s resale value, or to simply catch up on installing products that would increase the owners’ business productivity and comfort (i.e, highspeed internet, and ensuring the aircraft meets all the airworthiness mandates). Some examples of upgrades that have taken the spotlight among our customers are the Bombardier Challenger 604 Fusion upgrade, and our Smart Link Plus connected aircraft service offering. Ka-band and DU-875 installs also remain the most popular upgrades for Bombardier customers.

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

Market Insights 2.qxp_MARKET INSIGHTS 25/01/2022 13:05 Page 3

MARKET INSIGHTS

AvBuyer: In tandem with high demand, there have been concerns expressed in the MRO industry over supply chain issues, slowing the availability of, and time to obtain, spare parts, etc. How long will it take for these to be resolved, and how are both Bombardier, and the wider maintenance industry, working to manage this? CD: It’s definitely true that the effects of the pandemic, and the increased flying hours, have stretched the limits of the global supply chain. Our focus has been to reduce the risk of exposure to these challenges by implementing a robust risk mitigation plan. Some highlights of that plan include a significant increase in headcount across all parts services teams; an increase in inventory; implementing Artificial Intelligence (AI) technology in our forecasting model; a robust supplier intervention plan; and much more. We also continue to focus on lean thinking by improving our efficiency and driving out waste. This is critically important to offset any rising costs from our supply chain, while minimizing the impact to our customers. We are confident that we have put the proper measures in place to navigate through these unprecedented times. AvBuyer: Looking ahead over the coming year, do you see ongoing high levels of demand for maintenance services, or do you see changes ahead? What factors do you believe will contribute to that outcome? CD: We predict demand for maintenance services will remain solid for this year, and for years to come. Aftermarket trends are often consistently aligned with current industry trends – which have indicated significant growth from the Mid-size and Large Jet categories, with

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Bombardier Learjet, Challenger and Global jets operators continuing to make plans to upgrade, even as more travel restrictions are lifted. This was also the case just before the pandemic. With this in mind, we have aligned the current development and growth of our aftermarket footprint around these trends, developing new products and services for our Challenger and Global aircraft operators. This is reflective in the development of our new and existing service centers, with improved services and facilities for Learjet, Challenger and Global customers – including increased maintenance capacity to service more aircraft. We are also enhancing our footprint in Wichita to create a Centre of Excellence for our Learjet, Challenger and Global customers. This includes a number of key enhancements such as new hangars, enhanced parts storage, additional engine and maintenance capabilities, increased CRO [Component Repair & Overhaul] services, and more. AvBuyer: Are there any other elements that you see as being pivotal to shaping the maintenance services industry in 2022 and beyond? CD: There are numerous trends we are monitoring in this regard. One of the most pressing industry-wide issues that is pivotal in shaping the future of all OEMs and their maintenance services strategy will be recruiting the next generation of qualified technicians. As the increased demand for business jets continues to grow, it will only put more pressure on these labor shortages. Attracting and retaining talent is front and center for these high-paying jobs. To attract the next generation to the aviation industry, we

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General Aviation February.qxp_Layout 1 24/01/2022 14:50 Page 1

Market Insights 2.qxp_MARKET INSIGHTS 25/01/2022 13:06 Page 4

MARKET INSIGHTS

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PHOTOS COURTESY OF BOMBARDIER

are investing in Science, Technology, Engineering and Math (STEM) and apprenticeship programs to actively engage with local colleges and organizations to create viable aerospace pipelines that will fuel the development of new, talented mechanical engineers and technicians across our networks. We also have a strong focus on our local communities, and are building links to our MRO network to develop new talent. With all our upcoming service center expansion projects, we are actively seeking talented individuals to ensure we continue to provide our customers with the service excellence they demand and deserve. Another key trend is the use of big data and new technologies to streamline and develop new maintenance capabilities. With our Smart Link Plus Connected Aircraft program, aircraft operators are provided with an integrated digital experience that enables them to access real-time data at their fingertips – the chance to make faster, data-driven troubleshooting decisions, increasing operational efficiency. This data also provides us with aggregated fleet-wide data to predict and fix issues before they occur, creating advance analytics to better predict maintenance needs, or enhance predictability of parts availability and rotables inventory. It’s an invaluable technology that will save time and money – for both the operator and OEM.

AvBuyer: Finishing on a practical note, with scheduled maintenance, operators can be proactive in planning ahead to ensure they get the service they need, when they need it. But how would you advise business aircraft owners and operators to act and help alleviate the risk of longer-thanexpected waits for unscheduled maintenance work? CD: To ensure customers receive the best service experience possible, it’s imperative we work closely with them at all stages of the maintenance cycle. Sharing the latest information is critical – we frequently provide them with updates, advice, and best practice notifications and guidance on evolving modifications, upgrades and technical improvements. Working hand-in-hand with the Customer Support team and service sales team allows our customers to properly plan well into the future to map the requisite and maintenance requirements, and available enhancements, to secure the maintenance opportunities at our factory service centers. In the event an aircraft does require support for a technical issue, our customers can seek turn-key Aircraft on Ground (AOG) coordination and mobile support by engaging with our 24/7 Customer Support Centre. More information from www.bombardier.com. ❚

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BUYING & SELLING AIRCRAFT

Aircraft Buyer Questions, Part 1:

Trip & Mission Profile What key questions do buyers need to answer when determining which aircraft models best meet their travel needs and mission requirements? René Armas Maes explores.

efore buying a business aircraft, due diligence is key. While the required capital and direct operating cost expenditure are, of course, important, you need to ensure your aircraft provides a good return on investment. Here are some tips in that regard relating to the trip and mission profile of your future airplane. Before evaluating the several possible aircraft options on the market and narrowing the choices down to the right one for your mission, there are a number of questions that need answering.

38 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

What are the most popular or frequent city-pair destinations that you’ll fly?

It is essential to understand any requirements for your future aircraft with regard to the airports you will regularly use. This includes climb gradient, payload restrictions, noise abatement, hot and high performance, special steep approach requirements, and more. By analyzing aircraft performance against specific airport performance requirements, the end goal is to narrow down the suitable aircraft that you know will www.AVBUYER.com

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“Either buy with the need to trade, and upgrade the aircraft built into the plan accordingly, or consider an aircraft that allows for the anticipated change in mission requirement.”

What is the projected ‘average stage length’ in your mission profile?

Quite simply, the average stage length is defined as the length of the flight from take-off to landing, in nautical miles, aggregated over the course of a year, and divided by the number of departures. The answer to this equation will provide you with the average mission (in nautical miles) that your future aircraft will be required to fly. Ultimately, the aircraft should meet 80% of those anticipated missions. It is unrealistic to expect an aircraft to achieve 100% of the missions without buying too much aircraft for the majority of your mission requirements – which inevitably increases your cost of purchase and operating costs unnecessarily. For these trips, it is possible to charter a larger jet ad hoc, or buy block hours of charter if you anticipate more than 20 hours of longer-range flying is needed annually, or make fuel stops (see below).

How could your future mission requirements change?

meet, or exceed, the mission requirements in terms of airport accessibility.

Where is the operating base going to be located?

For similar reasons, the home base for the aircraft is a key question, too. Aircraft performance limitations (runway length, airport altitude, glide slope requirements, hot and dry conditions, etc.) needs to be factored, and will narrow the available choices available to you. As an example, not all airport runways are created equal, with some being longer, and some shorter, restricting the aircraft that can use them. You’ll need to match up these airport specifics to any aircraft type you consider buying. www.AVBUYER.com

Is your typical mission profile likely to change in the near future? As businesses enjoy success, their travel requirements may include traveling further afield, or visiting new locations with airports that have limiting factors that would prevent the existing aircraft from accessing it. While an aircraft purchased to fulfil a 3,000 nautical mile trip profile may work in the short term, if mission requirements change in the nearterm (i.e. within two to three years), an aircraft upgrade will be needed. Either buy with the need to trade, and upgrade the aircraft built into the plan accordingly, or consider an aircraft that allows for the anticipated change in mission requirement. If you would be happy to make a fuel stop en route in order to meet 20% of your typical missions that are otherwise beyond its range capability, then you can expect to pay a lower capital expenditure and lower operating costs. Let’s illustrate with the

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BUYING & SELLING AIRCRAFT

FIGURE 1: Weighing the Value of Non-Stop Flying vs a Fuel Stop

example of a trip from Bogota, Colombia (SKBO) to London City Airport (EGLC) in the UK, highlighted in Figure 1 (above). The estimated trip length is 5,500nm with IFR and fuel reserves but, in this case, let’s assume the owner has a private jet with a range of 4,100 nautical miles. In order to complete their required trip, the owner must fly to the US (Opa-Locka Executive Airport - KOPF, in this example), make a fuel stop, and then fly across to EGLC. While an Ultra-Long-Range Jet could make the flight non-stop, does the larger jet always make financial sense? If our 4,200nm jet costs $32m brand-new, and a 5,500nm brand-new plane costs $42-50m, you’re looking at spending $10-15m more for the non-stop option (less, if you’re shopping the pre-owned market). Remember, the final aircraft choice should cover 80% of your planned yearly flying, not the other 20%. For corporations requiring 5,000nm range for just 20% of the time, a quick turn and fuel stop makes far greater sense, compared to spending several million US$ more on a longer-range jet.

What is the average passenger load you will need to carry?

The number of passengers that will typically travel in the aircraft is a key question to consider to ascertain what the typical payload will be, the number of seats and special requirements. When considering your average passenger load, you should factor the available payload when the aircraft is fully-fueled. This ensures that no compromises need to be made between passengers (and their luggage) and fuel. 40 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Are you considering the cabin size and seating configurations?

It is important to understand your cabin space requirements, along with any special seating arrangements (divans, club seating, conference table and enclosed (or not) areas for meetings, rest, and privacy. Doing so will, again, help reduce the viable options on the market for you, but ensure the aircraft you buy is fit for your purposes. Will you primarily be transporting executives, technicians, family (including children) and friends? How is the cabin equipped to meet their needs? Will passengers need to sleep aboard the aircraft? If so, how many, and does the existing configuration facilitate this? (As an example, a typical Super Midsize Jet will usually allow four people to sleep in the cabin at one time.) What will be the catering requirements, and does the galley allow for this? And is there a fully private lavatory installed? Don’t overlook the door width and cabin height. The latter is sometimes considered a critical factor for taller passengers. Indeed, Very Light and Light Jets can become uncomfortable for larger-than-average people on trips lasting two or more hours. Consider, and measure, target aircraft cabin volumes (in cubic feet), as depicted in Figure 2 (overleaf) (which represents aircraft ranging between Super Mid-size to ‘Ultra-Large’ Jets within their groupings). This will help clarify which jets offer the best cabin volume in relation to range. Nevertheless, you should keep in mind that the more space the aircraft offers, the higher its acquisition and operating cost will be, generally speaking.

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BUYING & SELLING AIRCRAFT FIGURE 2: Business Jet Cabin Volume vs Range Sample Analysis

Don’t forget any special luggage and cargo requirements If you have any special, bulky cargo needs, they should be considered now, while you’re making your final shortlist of candidate aircraft to buy.

• Will passengers be carrying standard business luggage, or leisure (golf bags, skis, etc.)? • Will they be returning same-day, staying away for a couple of nights, or carrying luggage for a longer trip? • How might the luggage needs change over time? Is accessibility to luggage from the main cabin during the flight a requirement? If not, passengers need to remember that any item not taken from the cargo compartment before departure can only be picked up upon landing, and adequate space to stow such items will be needed within the cabin.

A Few Other Key Questions

Is the ultimate purpose of travel going to be business, pleasure, or a mixture of both? Also, are you planning to offset some your fixed operating costs by placing your aircraft on an aircraft management company’s charter certificate? This has implications for the preferred colors and

textures of the interior, as well as the configuration and desired equipage – potentially limiting the range of aircraft you will consider buying. And last, but certainly not least, consider your target aircraft’s residual value. One of the largest hidden costs of operating a business jet can be its residual value. So this needs to be a key element in your buying decision.

In Summary

As demonstrated by this article, a customer trip and mission profile analysis is necessary, and explores a large number of areas, all of which will have a bearing on your aircraft selection. Your analysis is key to making the most of your final purchase decision, both from an investment and asset disposal perspective. Indeed, having a clear idea of your mission and airport base requirements will help sharpen your focus and define your trip and mission profile. Consequently, it will allow you as an aircraft owner to make the correct operational and financial decisions. Having explored the trip and mission profile here, in Part 2, we will continue our discussion with a focus on developing your budget in advance of buying your aircraft. Stay tuned! T

RENÉ ARMAS MAES is vice president, Commercial at Jet Link International LLC and an international consultant with a broad experience in business aircraft sales. He has developed multiple analyses and studies for a number of US Fortune 500 companies and Venture Capital firms, and participated as keynote speaker at a number of business aircraft conferences. https://www.linkedin.com/in/ren%C3%A9-armas-maes-4935b842/

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Grant Cardone: My Experience of Private Jets Do private jets really add value to businesses and entrepreneurs? Grant Cardone, CEO of multi-billion dollar Cardone Enterprises and Cardone Capital speaks to Fabrizio Poli about his experiences of aircraft ownership… rant Cardone was into drugs and drinking in his early twenties. The people in the rehab center were convinced they would see him again, and that he would never amount to anything. But Grant was ready to change. He realized that if he wanted to be a successful entrepreneur, he needed to master the art of sales. He started working for a used car dealership, reading business and personal development books, attending seminars, and applying what he learnt. As his car sales increased Grant started investing in real estate, and built his wealth. Today Grant is happily married to the woman of his dreams – Elena – and they have two daughters, Scarlett and Sabrina. He is the CEO of Cardone Enterprises and Cardone Capital, an international speaker, entrepreneur, author of New York Times bestseller ‘The 10X Rule’, and creator of 21 best-selling business programs. He also owns and operates seven privately-held companies and a $4bn portfolio of multifamily properties. Named the #1 marketer to watch by Forbes Magazine, Grant is also the founder of the The 10X Movement and The 10X Growth Conference, the world’s largest business and entrepreneur conference.

44 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

What really distinguishes Grant from many other entrepreneurs is that he is unafraid to do things differently, to try something new, or think and act outside the box. You can clearly see how he is the real deal by watching Discovery Channel's ‘Undercover Billionaire’. Grant says that starring on that show was the most difficult thing he’s ever done. He was not allowed to use his real name, was only given a car and $100, and was delivered to Pueblo in New Mexico. Here in 90 days he took $100 and turned it into a business valued over $5.5m.

The Journey into Private Jet Ownership

Grant’s journey into the world of private jets began in 2015, when he bought an eight-year-old pre-owned Gulfstream G200 for USD$8m. In his first year of operating it, the jet flew 250 hours. He likens it to a holiday home, in that if you own one you’ll use it. Elena has had a great influence on Grant, inspiring him to think bigger, and it was she who encouraged him to buy a private jet in the first place. Grant had flown over three million miles with commercial airlines over his career, and saw a lot at 40,000 feet. He once broke up a fight between Seattle www.AVBUYER.com

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“Elena has had a great influence on Grant, inspiring him to think bigger, and it was she who encouraged him to buy a private jet in the first place.”

GRANT AND ELENA CARDONE

and San Diego; experienced a bomb scare flying from Richmond to Denver; and experienced an actual bird strike that took a Delta flight down out of JFK on his way to LAX. It became tempting for him to stop traveling and try to replace the long cross-country flights and delays with live streams and social media, but, possibly now more than ever, there is nothing more powerful than a face-toface meeting. When Grant first spoke to his accountant to do the math on buying his own jet, he repeatedly bragged that there was no making sense of the investment. As he tried to justify why it cost too much, however, Grant watched the most successful companies, including Apple, Coca-Cola, Facebook, Nike, and Amazon buying new jets, and then trading them out for new jets every three years. “So, who is right?” he asked himself. The accountant isn't thinking about the expansion, they are thinking only of the expense. They will never calculate the emotional and physical cost of the anxiety, stress, uncertainty, delays, changes, abusive flight attendants, TSA, or the cost of cancellations. The question becomes how anyone makes sense of the next level, moving from charter to buying their own www.AVBUYER.com

$50m private jet, then paying another $3m a year to maintain and fly their new acquisition. That’s a much longer debate – one where there will never be a consensus. One way that private jet owners justify their decision to purchase, however, is the extension of 100% bonus depreciation in the first year of ownership. This was a very big factor in Grant’s decision to upgrade from his pre-owned Gulfstream G200 to a factory-new Gulfstream G550. In the past, depreciation was spread across five years (20% depreciation per year). Then, in 2020 Grant had a few people call him wanting to buy the G550. Eventually he sold, moving into a Gulfstream G650ER. “Buy bigger than you think you need, go one level higher,” he told AvBuyer. “You will not regret the extra cabin space at 45,000 feet.”

Action-Ready with a Private Jet

A couple of years ago Grant heard that Shark Tank star and entrepreneur Daymond John was in Miami and couldn’t find a flight to Las Vegas. Grant rang Daymond’s agent and told him he was going to Las Vegas in his G550, and that Daymond could have a free ride if he liked. Daymond agreed, and Grant immediately phoned other contacts in Las Vegas to arrange meetings, and add more value to the trip. As a result, Grant and Daymond are still doing business together today, and Daymond is a regular speaker at Grant’s 10X Growth Conferences. Yet, had he not owned a private jet, Grant would never have had the opportunity to meet Daymond. On another occasion, just before the end of 2021 Grant was looking to do a large Real Estate deal in Houston. Ryan Tseko, Grant’s right-hand man at Cardone Capital had been on the phone seventeen times trying to arrange a meeting, but the guy in Houston had declined.

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GRANT CARDONE AND DAYMOND JOHN

Grant told Ryan to prepare the G650ER for a visit to Houston. Once they landed Grant called their contact, telling him they’d landed and were ready to meet. The $189m deal was concluded the next day, and more-than paid for Grant’s new $60m G650ER. Grant only flew 65 hours last year, and some people have told him that so few hours doesn’t justify jet ownership – but he disagrees. Owning a Gulfstream G650 sends a clear message to those he wishes to do business with. The opportunity to be able to spring into action at a moments’ notice, is priceless, he adds. “Forget the cost of the hours. Walking into a meeting with no stress, or the delays and hassle of airline travel, is key in getting deals done successfully. “The ability to get face-to-face and close the distance between you and the goal or target: Nothing does that better than a private jet, until we get teleportation,” he says. Grant has gone from having never stepped onto a private jet in 2015 to owning a Gulfstream G200, a G550, and now a G650ER – all in just six years. His Real Estate portfolio has increased from $250m to $4bn, more than ‘10Xing’ his business. He credits jet ownership in being the key tool in helping him scale his business.

Flexibility and Kudos…

Grant has planned both a European and World Tour with his Gulfstream G650ER this year. He explains that other times he has launched out on a world tour he has planned a few destinations, but along the way, as he continued to communicate with his social media audience, other opportunities surfaced, and he flew to see those people too. Having your own jet gives you flexibility and kudos. Add the 7,500nm range of the G650ER, and Grant can take his business anywhere on the planet. His formula is simple: To scale your business, buy a jet (a bigger one than you are initially thinking). This will set you on the road to 10X your business, the Grant Cardone way!

“Grant has gone from having never stepped onto a private jet in 2015 to owning a Gulfstream

Learn more about Cardone Capital via cardonecapital.com

G200, a G550, and

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now a G650ER.”

Watch Fabrizio’s video interview with Grant, here: https://www.youtube.com/watch?v=V4XQiBwHKa8 T

FABRIZIO POLI is Senior Consultant at Orville Aviation. He is also an Airline Transport Pilot. Mr. Poli has over 35 years experience in the aerospace sector, both as an aviator and in business. Fabrizio is also founder of popular YouTube channel, Biz Jet TV. Visit Biz Jet TV at www.youtube.com/channel/UCavizueJievdH4TwxiSlX3g

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How to Measure BizAv’s Key Performance Indicators What are the Key Performance Indicators that highlight the benefit of Business Aviation to your company, and how can you conduct a meaningful analysis using them? René Armas Maes provides an outline…

here is no doubt that business aircraft are a productivity enhancement tool – but how do you measure the Key Performance Indicators? To begin with, the use of a business aircraft provides flexible scheduling, and helps entities optimize revenue growth opportunities, as well as facilitating more valued face-to-face customer interactions. Other benefits include enabling the increased agility and mobility of executives and managers, who may even be able to visit multiple destinations in one day. It is well documented that companies using business aircraft consistently outperform those who don’t. But how can companies measure the 48 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

performance of their business aircraft as they aim to optimize revenue, employee productivity, improve efficiency and enhance profitability? Which performance indicators should be considered? How is performance measured? We’ll explore the answers over the following paragraphs.

The Five Key Drivers of Enterprise Value

There are a number of metrics available to measure your enterprise’s value, but here are the five key metrics… Total Return: Includes an evaluation of the enterprise’s stock value, dividends, interest, and capital gains over a given period of time. Focus on the growth of the enterprise over a five- and ten-year timeline. www.AVBUYER.com

Ownership 2.qxp_Finance 26/01/2022 09:32 Page 2

AVBUYER.com EBITDA, Earnings Growth & Measures of Profitability: Focus on corporate profitability metrics while using this indicator to compare the entity’s performance. For further comparison and analysis, find out what the industry averages are. As an example, NASDAQ provides visual representation of analyst expectations in terms of earnings growth, which are algorithms based on a company's historical reporting dates. Return on Assets and Average Asset Turnover: Measure how efficiently (or not) the company uses its assets to generate a profit. Focus on a single industry, since companies within the same industry will share the same asset base. Return on Equity: Find out how well the company is managing the capital that shareholders have invested. A higher number means improvement in efficiency, in terms of management’s ability to generate income and growth from its equity. As per the ‘Return of Assets’ metric, it is important to focus on, and compare, companies within the same industry. Revenue Growth: Yearly and quarterly revenue growth measures the increase in a company's sales from one period to another. Focus on successive quarters of sales performance, and seek to understand your sales growth. How consistent is revenue growth over a period of several quarters and years? It’s crucial to understand any business seasonality relating to revenue growth when comparing this

against other entities. Other indicators, such as Stock Price performance and Market Capitalization, may be used for further analysis and comparison. After gathering the data, the next step, as shown in Chart A (below), is to plot each individual metric discussed above and compare Business Aviation user entities with non-users, while assessing performance over a five-to-ten-year timeline. The benchmark peer group should consist of 15-25 companies. Validate where and how Business Aviation has been associated with key performance drivers, and whether it has driven enterprise.

Employee Productivity – Another Key Metric

Using a business aircraft improves employee productivity in several ways. To measure the contribution of a business aircraft when moving employees around, start by assessing how a business aircraft saves employee time, and how productivity is improved by the time savings resulting from door-todoor travel. For example, in a recently-undertaken corporate travel assessment, one entity needed to evaluate whether it could productively fly four executives from Point A to B, and hold two full-day meetings at Point B without diminishing their employees’ productivity at Point A. The key question that needed answering was, “How will travel time impact our employees’ productivity if they fly on scheduled airlines, versus a business jet?” A number of assumptions were made, including the number of trips per month, executive compensation, onboard productivity, passenger loads, and more.

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Chart A: Business Aviation Users vs Non-Users Performance Trend Line (Years 1-10)

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

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AVBUYER.com Chart B: Employee Productivity Analysis: Scheduled Airline Service vs. Business Aviation

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The wasted round-trip productivity time when using scheduled airline services was 23 hours per trip, or 552 hours annually. By comparison, the wasted round-trip productivity when using a business jet was only two hours per trip, or 48 hours annually – an improvement of 91% (see Chart B, above). Ultimately, the entity found it could save almost US$3m per year using Business Aviation, while freeing up nearly 3,000 man-hours per year (the equivalent of 62 weeks). Such key findings within these types of study have proved to be enlightening for many a board member around the world.

Other Benefits Associated With Business Aircraft

There are, of course, other benefits that should be factored in when using a business aircraft, including the flexibility to access many more airports than the scheduled airlines. Many of those airports are conveniently located closer to customer facilities, allowing for efficient and quick access to final destinations. In addition, a business aircraft can reduce travelrelated stress for employees, since an operation can control its own scheduling, routing, departure and arrival times. And, by eliminating travel-related fatigue (i.e. by avoiding long queues and waiting times at airports) that is associated with scheduled airline travel, employees can even conduct business onboard the aircraft, without any distractions, threats to privacy, or loss of productivity.

Business Aviation

In Summary

Ultimately, with enhanced mobility, companies that operate a business aircraft can increase decision making, accelerate market penetration, and respond rapidly to market opportunities and key customer issues. The geographic reach of an entity’s sales force can be extended through easy access to efficient, more flexible transportation. Business Aviation can improve customer and employee relationships, since a business aircraft can secure more face-time with customers, and an entity can benefit from a closer and more intimate relationship. This can naturally translate into a long stream of revenue opportunities. Customer satisfaction can be enhanced as employees spend more time building and expanding those relationships, and more time can be spent in quizzing customers about future product development. Moreover, time-savings gained from using Business Aviation will help keep valued employee satisfaction high, nurturing a culture of loyalty and higher productivity, which further enhances enterprise value creation. The benefits of using a business aircraft cannot be denied. However, the actual extent of those benefits will differ from one enterprise to another. Hence the recommendation to conduct your own Key Performance Indicator survey as it applies to your own business airplane use. We suspect, like many of those who have already done so, the results will be eye-opening. T

RENÉ ARMAS MAES is Vice President Commercial at Jet Link International LLC, an international aviation consultancy. He has built a successful track record for delivering Business Aviation consulting projects for Fortune 500 companies, Venture Capital firms, and HNWIs in North America, the Middle East, Europe and Latin America. His expertise includes corporate travel assessments, business aircraft analysis, aircraft financing and sales.

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Ownership 3.qxp_Finance 25/01/2022 12:58 Page 1

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Planning to Charter Your Jet? Assess the Market Following on from the previous discussion ‘Is it worth chartering out your jet?,’ René Armas Maes provides a sample market analysis to provide guidance on determining charter demand for your aircraft… or those business aircraft owners, or prospective owners, planning to charter their aircraft out when it’s not being used, it’s important to assess the market size and understand the importance of the charter market both domestically, and internationally. By having a knowledge of the leading players and market size, you can identify the best Part 135 players that could help you offset some of the fixed costs of ownership by placing your aircraft under an aircraft management agreement with them. You’ll also form a good idea of the most common areas of charter demand, and how your aircraft can possibly help meet that demand. But how can you approach such a market analysis? Within the following article, we have utilized some historical data on the Canadian charter market in 2019. This data is not intended to provide up-to-date charter market analysis, but is simply included with the intention of sharing insights on how to do an effective market size analysis.

How to Conduct a Charter Market Survey

Conducting a detailed analysis of the size of a country’s corporate jet charter market involves a number of different steps. 52 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Several databases, including ARGUS TRAQPak, AMSTAT, Cirium fleet analytics, and annual statistics collected by industry trade groups should be reviewed for accuracy against independent data collected directly from airports and civil aviation authorities. To develop our sample ‘2019 Business Jet Charter Market Size Survey’ for Canada, first we needed to identify the current charter fleet in the country, the number of aircraft movements, and hours flown. The focus of this analysis was exclusively on Canada’s C-registered business jet activity. For simplicity’s sake, we excluded from the analysis any US and international inbound and outbound charter traffic to or from Canada. Based on data from Cirium fleet analytics, Canada had 489 C-registered business jets in 2019, and 57% of those were actively flying charter services, either on a full-time or a part-time basis (i.e. when not being used by the aircraft’s owner). Taking the fleet size into account, and using ARGUS TRAQPak data from 2019, we were able to discover that close to 36,000 hours were flown on domestic and international charter services in Canada by Cregistered business jets over the course of the year. The split was 32% domestic flights, and 68% international. www.AVBUYER.com

Ownership 3.qxp_Finance 25/01/2022 12:58 Page 2

AVBUYER.com CHART A: Year 2019 C-Registered Business Jet Fleet for Charter

Source: Cirium; Consultant analysis. Note: Tier 1 is defined as fleet operators with eight or more jets

By understanding how large a charter market is, and whether it has grown over the years, aircraft owners are better positioned to understand the potential demand from charter users for their aircraft, and to negotiate not only charter rates, accordingly, but also comprehensive aircraft management agreements that will defray a portion of the aircraft’s costs.

in the conservative scenario to CAD$285m in the optimistic/ aggressive scenario. Having understood the total market size, aircraft owners can potentially negotiate a better per-hour rate and overall contract terms and conditions with the management company.

Potential Revenue Analysis

Next, we evaluated these same aircraft’s movements and flight-hour data, but rather than applying an average charter rate per cabin segment, the revenue that must be generated to cover the aircraft operating costs plus a profit margin are estimated, for which AMSTAT’s operating cost data is used. Assuming a profit margin, the estimated annual revenue generated by C-registered business jets ranged between CAD$264m to CAD$280m in 2019. Note: Market size estimates in this analysis covered only a subset of the entire Canadian C-registered annual charter revenue in 2019.

To come up with a historic domestic and international Cregistered business charter market size estimate in 2019, the first methodology involves conducting a survey and understanding average charter rates in the business jet segment, to calculate the revenue that could potentially be generated. Using this method, and after making a number of assumptions, the estimated annual charter revenue generated by Canada’s C-registered business jets ranged from CAD$255m to CAD$265m during 2019, in a conservative scenario. (This estimate takes into account the cabin segment breakdown shown in Chart B, below). Three scenarios (including pessimistic, conservative and optimistic/aggressive), based on a number of assumptions, should be built into the Market Size Analysis. In the case of our sample analysis of 2019 Charter in Canada, estimates ranged from CAD$260m

CHART B: Domestic vs. International Canadian Charter Travel in 2019, by Cabin Segment

Source: ARGUS TRAQPak. Consultant analysis

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Movements & Flight Hour Data

Top Domestic and International Charter Market City-Pairs

Next, Toronto, Calgary, Montreal and Edmonton accounted for 43% of all business jet charter departures in 2019, while the average domestic stage length, by cabin segment, was approximately 450nm. Interestingly, no clear difference was found across multiple cabin segments. In fact, Light and Very Light Jets’ average stage length was 455nm, while Midsize/Super Mid-size and Large/Ultra-Long-Range Jets averaged 450 and 446nm, respectively. On the other hand, the top five international citypairs for charter services are shown in Chart D, overleaf. The average international stage length (in nautical miles) by cabin segment in 2019 was 545nm for the Light and Very Light Jet segment, while the Mid-size and Super Mid-size Jet, and Large and Ultra-Long-Range Jets averaged 875nm and 1,111nm, respectively. This information is key to understanding how many potential hours per trip your aircraft may fly, how much revenue you may derive per agreed charter trip, and whether any extra wear and tear budget should be built into an aircraft owner financial model.

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

Ownership 3.qxp_Finance 26/01/2022 09:36 Page 3

OWNERSHIP

AVBUYER.com CHART C: Top Three Domestic Canadian Business Jet Charter City-Pairs in 2019

Note: CYEG – Edmonton; CYYC – Calgary; CYUL – Montreal; CYYZ – Toronto; and CYOW – Ottawa Sources: ARGUS TRAQPak and Great Circle Mapper.

CHART D: Top Five International Canadian Business Jet Charter Markets in 2019

Future Market Potential Estimates

In order to estimate the future growth of the market, it is key to collect annual statistics by industry trade groups such as the Airports Council International and Canadian airports. In addition, corporate charter information needs to be collected from Transport Canada, and they must be cross-checked and validated with the multiple data sources available. While our sample study covered the Canadian charter market, your own study will focus on the region your aircraft is based in. Regardless of geography, the information you source should be detailed. At the very least it should include operation type, aircraft category, routing, and flight time as filed in the flight plan. Passenger loads will add an extra layer of detail, but may not be easy to access, due to confidentiality. From this sample market size analysis, it is clear that aircraft owners can understand the size of the existing charter market within their region to determine how much market demand there is likely to be for their aircraft, using the information to leverage favorable rates with a prospective management company. We have also demonstrated how to analyze average stage lengths the aircraft may fly when chartered out, the most common airport hubs, how many hours were flown historically, and how demand may look in the future. It is hoped this analysis sample further quips you to answer the question, ‘Is it Worth Chartering Out Your Jet?’ (AvBuyer, December edition, p34; January edition, p62). T

Note: CYUL – Montreal; CYYZ – Toronto; KTEB – Teterboro; KPBI – Palm Beach; MYNN – Nassau; and KAPF – Fort Lauderdale Executive Airport Source: ARGUS TRAQPak and Great Circle Mapper.

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Values Intro.qxp_Finance 26/01/2022 11:34 Page 1

VALUES - MID-SIZE JETS

AVBUYER.com

Business Aircraft Values: Mid-Size Jets Of all the business jet categories, none does more to balance capability with utility than the Mid-Size Jet segment; and no segment provides more options, either.

or the purpose of our Retail Price Guide, Mid-Size Jets are loosely defined as aircraft with a Maximum Take-Off Weight between 20,001-40,000 lbs. There’s no disputing the advantages of space as you step into a Mid-Size Jet cabin, particularly when applied to longer trips. That is ultimately where the Mid-Size Jets’ basic advantage comes into play over the Light Jet segment. Mid-Size Jets tend to cruise towards the upperend of the private jet speed range (between Mach 0.78 and Mach 0.85). While on average faster than the Light Jet, a Mid-Size Jet’s superior speed generally provides only a few minutes of gain on the typical Business Aviation trip of 350 to 500 miles, but the difference will become noticeable on longer legs exceeding 1,000 miles. In terms of range, the average Mid-Size Jet can reach most of the US non-stop from almost anywhere else within the US, making them excellent candidates for the operator with regular transcontinental travel needs. That range capability also gives the crew the flexibility to string together a sequence of stops that total the same distance – making it possible for a Mid-Size Jet to cover multiple locations and still get home at the days’ end, without buying fuel along the way. Runway requirements for Mid-Size Jets are generally longer than the average length needed

56 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

by a Light Jet – but nevertheless Mid-Size Jets can still access a significant percentage of the secondary airports serving most of the 150 largest metropolitan areas in the US. Indeed, Mid-Size Jets generally can match their Large Cabin kin in terms of speed and, to a point, their range, while providing reasonable office amenities that are competitive with most larger aircraft. With all of the above considered, it is little wonder that the Mid-Size Jet segment is the biggest selling, deepest segment across the business aircraft market.

Medium Jet Price Guide

The following Mid-Size Jet Average Retail Price Guide represents current values published in the Aircraft Bluebook–Price Digest. The study spans model years from 2002 through Winter 2021. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Embraer Praetor 500 values reported in the Winter 2021 edition of the Bluebook show $12m for a 2016 model, $11m for a 2015 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration.

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Retail Values.qxp_RPG 26/01/2022 11:30 Page 1

VALUES - MID-SIZE JETS

Mid-Size Jets: Average Retail Price Guide MODEL YEAR $

2021 US$M

2020 US$M

2019 US$M

22.0

20.0

19.0

2018 US$M

2017 US$M

2016 US$M

2015 US$M

16.0

15.5

15.0

2014 US$M

2013 US$M

2012 US$M

11.5

11.0

MODEL BOMBARDIER CHALLENGER 350

17.5

BOMBARDIER CHALLENGER 300

14.5 12.0

BOMBARDIER LEARJET 75 LIBERTY

9.25

8.5

BOMBARDIER LEARJET 75

9.75

8.75

BOMBARDIER LEARJET 70

7.5

6.75

6.25

5.75

5.25

4.75

4.25

7.0

5.5

4.5

4.0

3.5

BOMBARDIER LEARJET 60XR

3.5

3.3

BOMBARDIER LEARJET 60SE BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR

3.6

BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR

2.8

BOMBARDIER LEARJET 40 CESSNA CITATION X+

9.0

8.5

8.0

7.5

7.0

CESSNA CITATION X

6.0

CESSNA CITATION LONGITUDE

23.0

21.0

19.5

CESSNA CITATION LATITUDE

17.5

15.5

14.5

13.5

12.5

11.5

10.5

16.0

15.0

14.0

13.0

12.0

11.0

CESSNA CITATION SOVEREIGN+

10.0

CESSNA CITATION SOVEREIGN CESSNA CITATION XLS+

10.5

9.8

9.0

8.5

8.0

7.5

7.0

6.5

20.0

17.0

16.0

15.0

14.0

13.0

12.0

14.0

13.0

12.0

11.0

10.0

9.0 9.0

8.5

6.1

5.9

CESSNA CITATION XLS CESSNA CITATION EXCEL DASSAULT FALCON 50EX EMBRAER LEGACY 500 EMBRAER LEGACY 450 EMBRAER PRAETOR 600

23.0

22.0

20.0

EMBRAER PRAETOR 500

17.5

16.0

15.0

14.0

13.0

12.0

11.0

GULFSTREAM G280

22.0

20.0

19.0

18.0

17.0

16.0

15.0

14.0

12.0

11.0

7.0

6.5

6.0

5.5

5.1

GULFSTREAM G200 GULFSTREAM G150 GULFSTREAM G100 HAWKER 4000

3.6

HAWKER 900XP

5.0

HAWKER 850XP (PRO LINE) HAWKER 800XP/XPi (PRO LINE) HAWKER 800XP HAWKER 750 AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM

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Retail Values.qxp_RPG 26/01/2022 11:31 Page 2

AVBUYER.com

What your money buys today

Winter 2021 2011 US$M

2010 US$M

2009 US$M

2008 US$M

2007 US$M

2006 US$M

2005 US$M

2004 US$M

2003 US$M

2002 US$M

MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 350

10.5

10.0

9.5

9.0

8.5

8.0

7.5

7.0

6.5

BOMBARDIER CHALLENGER 300 BOMBARDIER LEARJET 75 LIBERTY BOMBARDIER LEARJET 75 BOMBARDIER LEARJET 70

3.1

2.9

2.7

2.5

2.3 2.3

BOMBARDIER LEARJET 60XR 2.1

2.0

1.9

BOMBARDIER LEARJET 60SE 1.8

3.4

3.2

3.0

2.8

2.6

2.35

2.15

1.95

1.75

2.2 2.6

2.4

2.2

2.0

1.8

1.9

1.7

1.5

1.4

1.5

1.3

1.6

1.4

1.2

1.7

BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR

1.3

BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR

1.0

BOMBARDIER LEARJET 40 CESSNA CITATION X+

5.5

5.0

4.5

4.0

3.6

3.4

3.2

3.0

2.8

2.6

CESSNA CITATION X CESSNA CITATION LONGITUDE CESSNA CITATION LATITUDE CESSNA CITATION SOVEREIGN+

8.0

7.5

7.0

6.5

5.7

5.5

5.3

5.1

4.8

4.6

6.0

5.5

5.0

4.5

CESSNA CITATION SOVEREIGN CESSNA CITATION XLS+

4.4

5.0

4.2

4.8

4.0

4.6

3.8

CESSNA CITATION XLS

3.0

2.9

2.8

CESSNA CITATION EXCEL

4.4

4.2

4.0

DASSAULT FALCON 50EX EMBRAER LEGACY 500 EMBRAER LEGACY 450 EMBRAER PRAETOR 600 EMBRAER PRAETOR 500 GULFSTREAM G280

6.4

6.0

5.6

5.2

4.8

4.6

4.3

3.9

3.5

3.2

2.9

3.4

3.2

2.8

2.6

HAWKER 4000

4.5

4.0

3.6

3.2

HAWKER 900XP

3.3

3.0

2.4

2.8

4.2

4.0

3.8

3.6

GULFSTREAM G200 GULFSTREAM G150

2.2

2.0

1.8

1.6

GULFSTREAM G100

2.5

HAWKER 850XP (PRO LINE) 2.2

HAWKER 800XP/XPi (PRO LINE) 2.1

2.8

2.3

1.9

2.0

1.9

HAWKER 800XP

1.8

HAWKER 750

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

www.AVBUYER.com

AVBUYER MAGAZINE Vol 26 Issue 2 2022

JetNet February.qxp_Layout 1 24/01/2022 15:04 Page 1

EXPLORE THE EXCITING, REIMAGINED, JETNET VALUES JETNET’s single-source asset valuation platform, Values, combines historical market data and reported sold prices with current market values and 60-month estimated residual values - all while providing you the ability to analyze individual or multiple aircraft simultaneously. Request a demo today and see why JETNET leads the industry in business aviation intelligence.

KEY FEATURES INCLUDE: • Current and historical asking prices • Real reported sold prices • Estimated Values powered by the “eValues™” tools from Asset Insight, LLC JETNET Values is an add-on service available exclusively for JETNET Evolution Marketplace and Marketplace Manager subscribers.

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Action Aviation February.qxp_Layout 1 27/01/2022 11:47 Page 1

OFF MARKET 2020 Bombardier Global 7500

Very low hours off market FAA-registered 2020 Global 7500 • Heads-Up Display (HUD) Specifications available to qualified end-buyers and mandated brokers for immediate delivery.

• Lightning Detection System (LDS) • Predictive Windshear (PWS) • Global Regulatory Package (GRP)

• Excellent Condition 2020 Global 7500 Aircraft

• Lufthansa Technik Nice® Touch Cabin

• Cabin Configured for 16 Passengers in 4 Zones with

• Management System

• Forward Crew Rest

• (3) Personal Tablet Plug-in Arm Stands

• Engines Enrolled on GE OnPoint

• External Camera System

• APU Enrolled on Safran PowerCare

• Datalink Graphical Weather System (Worldwide)

• Inmarsat’s Ka-band High Speed Internet with WiFi

• Aircraft Under Manufacturer Warranties

• Synthetic Vision System (SVS)

• FAA Part 135 Compliant

WANTED AIRCRAFT • Dassault Falcon 900 EX EASy - engine • Bombardier Learjet 45XR - all options will programs preferred be considered • Gulfstream G550 - 2003-2010, all maintenance • Bombardier Challenger 300/350 - all options completed will be considered • Cessna Citation XLS+ - all options will be • Dassault Falcon 2000S or 2000LXS considered

jetsales@actionaviation.com • Hamish Harding +1 760 884 4535

AirCompAnalysis FEB22.qxp_ACAn 26/01/2022 10:47 Page 1

HELICOPTER COMPARISON

AIRBUS H125

BELL 505 JET RANGER X

Helicopter Comparison: Airbus H125 vs Bell 505 Jet Ranger X Mike Chase provides information on two popular single-engine light turbine helicopters with a view to pinpointing the Airbus H125 (formerly the Eurocopter AS350B-3e) and Bell 505 Jet Ranger X within the market.

ver the following paragraphs, we’ll analyse the performance of the Airbus H125 and the Bell 505 Jet Ranger X to see how they compare within the new and pre-owned helicopter market. We’ll consider a variety of productivity parameters (including payload, range, speed, and cabin size), along with the current market values. Are all single-turbine engine helicopters created equal? Currently, there are 40 single-turbine light helicopters in operation, and 18 have a Maximum Take-off Weight (MTOW) below 4,000lbs, while twenty-two exceed 4,000lbs MTOW. In this comparison we have chosen an aircraft from each side of the 4,000lbs bar, including the Airbus H125 (MTOW 4,960lbs) and the Bell 505 Jet Ranger X (3,680lbs). Despite this difference, both helicopters offer the same cabin volume (61 cubic feet). So what are the pros and cons of each, and to whom would each appeal?

Airbus H125

The original model within this series, the Eurocopter AS350B-3, was produced between 1998 and 2012, being replaced by the Eurocopter AS350B-3e model between 2013 and 2015. In 2016, Airbus renamed the AS350B-3e model the Airbus H125. The Airbus H125 can be configured for four or five passengers (plus one pilot seat). Featuring a new dualchannel FADEC (Full Authority Digital Engine

62 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Control)-equipped Turbomeca Arriel 2D engine and a dual LCD-screen Vehicle and Engine Multi-function Display (VEMD), the H125 is an extremely popular model in today’s single-engine turbine helicopter market.

Bell 505 Jet Ranger X

The Bell 505 Jet Ranger X has been in production since 2015. It is a short-range, light single-engine five-seat helicopter (including one pilot), and features a fully integrated Garmin G1000H glass cockpit with twin LCD screens, and a Turbomeca Arrius 2R engine with dual-channel FADEC.

Fleet Data: Worldwide Appeal

As of this writing, there are 1,040 Airbus H125s, and 337 Bell 505 Jet Ranger X helicopters in operation worldwide. The Airbus H125 is owned by operators across 72 countries, with the United States accounting for 24% (252 units), and China 9% (97 units) of the total fleet. By comparison, the Bell 505 is owned by operators across 52 countries, with the United States accounting for 23% (76 units), and China 11% (38 units) of the total fleet. The largest Airbus H125 fleet owners are REACH Air Medical Services, LLC (USA) and Sky Helicopters, SA (Spain), with 15 units each. By comparison, the largest Bell 505 Jet Ranger X single fleet owner is EDIC Horizon International Flight Academy (United Arab Emirates), with 12. www.AVBUYER.com

AirCompAnalysis FEB22.qxp_ACAn 26/01/2022 09:10 Page 2

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BELL

AIRBUS H125

505 Jet Ranger X

vs.

(Produced 2013 - Present)

(Produced 2015 - Present)

HOW MANY

EXECUTIVE

SEATS

$3.17 Million (2021 Model)

$1.72 Million (2021 Model)

How Will These Helicopters Compare? HOW FAR

CAN WE GO? (Tanks Full) 359nm

Airbus H125 Bell 505 Jet Ranger X

306nm

HOW MANY

UNITS IN

OPERATION? 337

WHAT’S THE

HOW MUCH

PAYLOAD CAN WE TAKE?

Airbus H125

LONG RANGE (Lbs) 1,926

Bell 505 Jet Ranger X

1,370

HOW MANY NEW/USED SOLD

EACH MONTH?

CRUISING SPEED? Airbus H125 Bell 505 Jet Ranger X

(Knots) 127 125

WHAT’S THE

COST PER HOUR?

7 (5.3%) 1,040

13 (1.4%)

Airbus H125 Bell 505 Jet Ranger X

$498 $487

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

(% = Global Fleet For Sale)

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

AirCompAnalysis FEB22.qxp_ACAn 26/01/2022 09:11 Page 3

HELICOPTER COMPARISON

AVBUYER.com

Table A - Payload Comparison Payload Comparison

Airbus H125 Bell 505 Jet Ranger X

4,960

3,680

939

544

MAX Fuel (lb)

MTOW (lb) Source: OEMs, B&CA

1,926

1,370

MAX Payload (lb)

987

826

Avail Payload w/Max Fuel (lb)

1,312 1 334

Chart A - Cabin Comparison Airbus Helicopters H125

Bell 505 Jet Ranger X

359

306

Tanks Full Range (nm)

The data contained in Table A (left) is sourced from each OEM. As we have mentioned previously, a potential operator should focus on payload capability as a key factor. The Airbus H125’s ‘Available Payload with Maximum Fuel’ (987lbs) is higher than that offered by the Bell 505 Jet Ranger X (826lbs).

Cabin Comparison

Chart A (left), courtesy of UPCAST JETBOOK, offers a cross-section comparison, showing the Airbus H125’s cabin has more width (5.41 ft. vs 4.8 ft.) but slightly less height (4.26 ft. vs 4.41 ft.) than the Bell 505 Jet Ranger X’s cabin. Not depicted by the cross-section, the cabin length of the Airbus H125 is shorter than that of the Airbus H125, at 6.56ft. vs 7.17ft. The Airbus H125 has 35cu.ft of external luggage space, but none internally, whereas the Bell 505 Jet Ranger X has 18cu.ft of external baggage space and none internally. The typical seating configuration for Airbus H125 offers more passenger seats than the Bell 505 at 6 seats (including one crew member). The Bell 505 Jet Ranger X offers four passenger seats, and one seat for the pilot.

Range Comparison

Source: UPCAST JETBOOK

Chart B - Range Comparison Airbus H125 Bell 505 Jet Ranger X

359 (nm) w/Tanks Full 306 (nm) w/Tanks Full

As depicted by Chart B (bottom, left), using Columbus, Mississippi as the origin point, the Airbus H125 helicopter – with a ‘Tanks Full’ range of 359nm – travels further than the Bell 505 Jet Ranger X (306nm range), per OEM data.

Powerplants

As mentioned previously, the Airbus H125 is powered by a single Turbomeca Arriel 2D turbine engine that offers 952shp output. By comparison, the Bell 505 Jet Ranger X is powered by a single Turbomeca Arrius 2R turbine engine producing 505shp at takeoff, and 459shp continuous.



COMPARE, CONTRAST, DECIDE Note: For Helicopters “Tanks Full Range” represents the maximum IFR range of the aircraft at Long Range Cruise with tanks full. Does not include winds aloft or any other related obstacles. Source: Chase & Associates

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HELICOPTER COMPARISON

AVBUYER.com

Chart C: Airbus H125 vs Bell 505 Usage Comparison (per January 2022)

Helicopter Usage Comparison

Chart C (left) shows the usage of both helicopters broken into market groupings. As depicted, the largest defined usage for the Airbus H125 helicopter is ‘Charter’ (35%) followed closely by Business (31%). The most popular defined usage for the Bell 505 Jet Ranger X (apart from ‘Other’) is ‘Business’ (48%) and ‘Charter’ (13%).

BUSINESS CHARTER

13%

14%

30%

GOVERNMENT

7% AIRBUS H125 N = 1,040

31% BELL 505 N = 337

TRAINING SCHOOL MEDICAL

4% 5%

PERSONAL

35%

13%

OTHER

48%

Cost Per Mile Comparison

Chart D (left) details the ‘Cost per Mile’ for our comparative helicopters (per JETNET data), factoring the direct costs (no depreciation), and with each aircraft flying a 200nm mission. The average US Jet A fuel cost used for December 2021 was $5.04 per gallon. The Airbus H125 shows a higher cost per nautical mile at $5.83, than the Bell 505 ($4.99); a difference of 16.8%.

Total Variable Cost

Chart D – Cost Per Mile Comparison

Airbus H125

$5.83

Bell 505 JRX

$4.99 $0.00

$3.00

$6.00

$9.00

US $ per nautical mile * Based on a 200nm mission cost (No Depreciation) Source: JETNET

Chart E – Variable Cost Comparison Airbus H125

$498

Bell 505 JRX

$487 $0

Source: JETNET

66 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

$200

$400

US $ per hour

$600

The ‘Total Variable Cost’ illustrated in Chart E (bottom, left) is defined as the Cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The Total Variable Cost for the Airbus H125 computes at $498 per hour, which is 2.3% more per hour than the Bell 505 Jet Ranger X ($487 per hour), as sourced from JETNET.

Market Comparisons

Table B (overleaf) contains the ‘new’ price (2021 model) for each helicopter, as sourced from JETNET Market Values report. The average speed, cabin volume and maximum payload values are from each OEM, while the number of helicopters in-operation and percentage ‘For Sale’ are as reported by JETNET. The Airbus H125 had 1.4% of its fleet ‘For Sale’ at the time of writing, compared to 5.3% for the Bell 505 Jet Ranger X. The average number of new and pre-owned transactions per month for the Airbus H125 averaged 13 units per month, over the preceding 12 months, compared to the Bell 505 Jet Ranger X (seven units).

Asking Prices & Quantity

The used helicopter market for the Airbus H125 showed a total of 13 helicopters ‘For Sale’ (at the time of writing) with 11 displaying asking prices ranging between $1.9m and $3.17m.

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The Private Jet Company February.qxp_Layout 1 24/01/2022 15:05 Page 1

2004 Citation CJ2 S/N 216

5,800 Hours, Engines enrolled on Tap Elite Blue, Airframe enrolled on Proparts, Winglets, WiFi, 2015 Paint, 2017 Interior, Make Offer

2011 Hawker 4000 S/N RC-52

1,880 Hours, Engines enrolled on ESP Gold, APU enrolled on MSP, ATG-5000 WiFi, Turnkey Opportunity, Make Offer

AirCompAnalysis FEB22.qxp_ACAn 26/01/2022 09:13 Page 5

HELICOPTER COMPARISON

Table B - Market Comparison Table

Eighteen used Bell 505 Jet Ranger X helicopters available for sale were also reviewed, eleven of which had asking prices which ranged between $1.2m and $1.9m. While each serial number is unique, the Airframe (AFTT) hours and age/condition will cause great variations in price. Of course, the final negotiated price remains to be agreed between the seller and buyer before the sale of an aircraft is completed.

Airbus H125 Bell 505 Jet Ranger X

127

125

Long Range Cruise Speed

359

Cabin Volume Cu Ft

306

1,040

$3.170 $1.720 New 2021 Price $USm

Tanks Full Range (nm)

337

1.4% 5.3%

In Operation

*Average Full Sale Transactions in the past 12 months; Source: JETNET Data courtesy of JETNET; Each OEM

2 13

New & Pre-Owned Sold *

% For Sale

Table C - Airbus H125 Sample MACRS Depreciation Schedule 2021 Airbus H125 - Private (Part 91) Full Retail Price - Million $3.170 1

Rate (%)

20.0%

32.0%

19.2%

11.5%

5.8%

Depreciation ($M)

$0.634

$1.014

$0.609

$0.365

$0.183

Depreciation Value ($M)

$2.536

$1.522

$0.913

$0.548

$0.183

$0.000

Cum. Depreciation ($M)

$0.634

$1.648

$2.257

$2.622

$2.987

$3.170

Year

2021 Airbus H125 - Charter (Part 135) Full Retail Price - Million $3.170 1

Rate (%)

14.3%

24.5%

17.5%

12.5%

8.9%

4.5%

Depreciation ($M)

$0.453

$0.776

$0.554

$0.396

$0.283

$0.141

Depreciation Value ($M)

$2.717

$1.941

$1.386

$0.990

$0.707

$0.424

$0.141

$0.000

Cum. Depreciation ($M)

$0.453

$1.229

$1.784

$2.180

$2.463

$2.746

$3.029

$3.170

Year

Source: JETNET

Table D - Bell 505 Jet Ranger X Sample MACRS Depreciation Schedule 2021 Bell 505 Jet Ranger X - Private (Part 91) Full Retail Price - Million $1.720 1

Rate (%)

20.0%

32.0%

19.2%

11.5%

5.8%

Depreciation ($M)

$0.344

$0.550

$0.330

$0.198

$0.099

Depreciation Value ($M)

$1.376

$0.826

$0.495

$0.297

$0.099

$0.000

Cum. Depreciation ($M)

$0.344

$0.894

$1.225

$1.423

$1.621

$1.720

Year

2021 Bell 505 Jet Ranger X - Charter (Part 135) Full Retail Price - Million $1.720 1

Rate (%)

14.3%

24.5%

17.5%

12.5%

8.9%

4.5%

Depreciation ($M)

$0.246

$0.421

$0.301

$0.215

$0.154

$0.153

$0.154

$0.077

Depreciation Value ($M)

$1.474

$1.053

$0.752

$0.537

$0.384

$0.230

$0.077

$0.000

Cum. Depreciation ($M)

$0.246

$0.667

$0.968

$1.183

$1.336

$1.490

$1.643

$1.720

Year

Source: JETNET

Depreciation Schedule

Helicopters that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period. In certain cases, helicopters may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight-line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There are a variety of factors that taxpayers must consider in determining if a helicopter may be depreciated, and, if so, the correct depreciation method and recovery period that should be utilized. For example, helicopters used in charter service (i.e., Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelve-year recovery period. Helicopters used for qualified business purposes, such as Part 91 business use flights, are depreciated under MACRS over a period of five years, or by using ADS with a six-year recovery period. There are certain uses of the helicopter, such as non-business flights, which may have an impact on the allowable depreciation deduction available each year. Table C (left) depicts an example of using the MACRS schedule for a 2021-model Airbus H125 in private (Part 91) and charter (Part 135) operations over five- and sevenyear periods, assuming a new 2021 retail price of $3.17m, per JETNET Market Values. Table D (left) depicts an example of using the MACRS schedule for a 2021-model Bell 505 Jet Ranger X in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a new 2021 retail price of $1.72m, per JETNET Market Values.

Productivity Comparisons

The points in Chart F (top, right) are centered

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Others may choose different parameters, but serious helicopter buyers are usually impressed with Price, Range, Speed and Cabin Size. After consideration of the Price, Range, Speed and Cabin Size, we can conclude that the Airbus H125 displays a high level of productivity, but at nearly twice the cost (purchased new). The Airbus H125 posts a much higher costs per mile (+16.8%) and variable operating costs per hour (+2.3%) than the Bell 505 Jet Ranger X. For the additional cost, the Airbus H125 provides a higher ‘tank-full’ range than the Bell 505, and, though the two models share the same cabin volume, the H125 model provides a greater available payload with full fuel. The greater cabin width of the H125 allows for extra seating within its typical cabin configuration. We have also explored popular usage of each model and discovered that ‘Business’ and ‘Charter’ rank as the top-two specific missions for each. Essentially, we can see two very viable models within the market for operators with slightly different mission requirements. The Bell 505 provides a competitive solution for operators needing to transport fewer passengers over marginally shorter ranges than those who would need the Airbus H125. Operators should weigh up their mission requirements precisely when picking which option is the best for them, establishing exactly where their the need for additional capability might come.

Chart F - Productivity Comparison $4.0 $3.5

Price (millions)

on the same helicopters. Pricing used in the vertical axis is as published in the JETNET Market Price values for model year 2021. The productivity index requires further discussion in that the factors used can be arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. Tanks Full Range with available fuel; 2. The Long-Range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

$3.0

Airbus H125

$2.5 $2.0 $1.5

Bell 505 $1.0 0.000

1.000

2.000

3.000

4.000

5.000

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

In Summary…

Within the preceding paragraphs we have touched upon several of the attributes that helicopter operators value. However, there are other qualities that might factor in a buying decision too. The Airbus H125 and the Bell 505 Jet Ranger X continue to be popular today, and current and prospective operators in the market should find the preceding comparison useful. Our expectations are that both models will continue to do well in the new and used helicopter market for the near-term future. T

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

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

Flight Dept 1.qxp_Finance 25/01/2022 12:23 Page 1

FLIGHT DEPARTMENT MANAGEMENT

Five Tips for Hiring Great Contract Pilots At a time demand for flying is skyrocketing, how can you find and hire the best contract pilots to cover staff shortages in your flight department? Andre Fodor shares tips…

recent call caused me to think about the need to ensure we have a good pool of contract pilots to draw from in the event of staff absences within the flight department. The following five tips are the sum of my musings, offering advice on how to attract, and communicate with, outsourced cover. Despite promising my family some quality time, very early in the morning on New Year’s Day my phone rang. At first I ignored it, but the caller was persistent. Finally, I answered. It was a man I’d met during my last recurrent training. Very apologetically, he told me that his team had dropped their principal and family at a Caribbean island two weeks before, taking airline flights home for the holidays. During the break one of the pilots had fallen ill and was unable to fly. They were due to make a return trip in two days’ time, and the caller wondered if I could take an airline to the island with him, and fly the principal back. My first thought was to decline. Uninterrupted holidays at home are rare for anyone in our line of business. But then I imagined myself facing the same situation, keen to provide great service to 70 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

the principal. I accepted the assignment. As I traveled to the Caribbean, I pondered how I had covered holes in our schedule before. After all, it’s inevitable that people need time off for medical reasons, which has a big impact, especially on a small flight department. As good Flight Department Managers, we should be sensitive to our team members, accommodating them within reason. With the current demand for private aircraft soaring, finding available cover has become a challenge, however. With full-time piloting jobs readily available, the relatively few pilots who focused exclusively on contract flying are now accepting salaried positions which provide stability, benefits, and longevity. Who could blame them? The high cost of training to keep current for the sake of contract work can be prohibitively expensive, especially for Large Jets. I recently met a contract pilot who self-funds his training. His annual recurent costs are $38,000, plus hotels and airlines. Even by applying his daily charge of $1,700, he must work nearly thirty days per annum just to cover his training costs. www.AVBUYER.com

Flight Dept 1.qxp_Finance 25/01/2022 12:23 Page 2

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Tips for Hiring a Contract Pilot

#1 Try before you Buy: Personally, I like to know a contract pilot before engaging them for an actual flight. So, I’m happy to invite and pay for a good prospect – somebody with a flexible or predictable schedule, with good experience, and a friendly demeanor – to fly in via the airlines and spend a day with our team. In the grand scheme of things, this is a small expense that will provide good insights into who will be interfacing with our passengers, should we hire them. If they prove to be a good fit with our operation, their visit gives us the chance to discuss our basic Standard Operating Procedures, duty assignments, and to work together during an emergency procedures drill before they actually fly with us. #2 Obtain Documentation in Advance: As I build my rolodex of contract pilots, I ask them to send me the documentation needed for insurance and international travel requirements. Copies of passports, licenses, medical certificate, and other miscellaneous documents www.AVBUYER.com

are uploaded to our database and we fill all paperwork necessary for our contractors to be paid punctually. #3 Be Quick to Pay: Speaking of pay, I always like to make sure that our contract pilots have as few out-of-pocket expenses as possible. We purchase airline tickets using our corporate credit card, pay all hotels and meals, and, ideally, invoices should be settled nearly immediately upon the conclusion of the assignment. There is nothing better for a contract pilot than to know that a client pays fast. It is important to be specific about how and what your Flight Department will pay. In our case – and I believe this should be an industry-wide standard – when booking work days with a contractor, there is a commitment to provide payment, even if the trip is canceled or shortened. In the event of a cancelation, negotiate a retainer to be paid. And when coverage is needed for a full week of non-booked trips, negotiate a guarantee for the pilot’s availability and standby time.

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Flight Dept 1.qxp_Finance 25/01/2022 12:24 Page 3

FLIGHT DEPARTMENT MANAGEMENT

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Be prepared to pay from the moment the contract pilot starts working on behalf of your flight department until the moment they walk back through their front door. Resist the temptation to be overly thrifty if you are expecting excellent service in return. #4 Specify your Expectations: Give the contract pilot every opportunity to deliver great service by clearly explaining your expectations. We know what excellent corporate pilots do in a perfect world: They fly with proficiency, but also carry and load bags, stock the catering, clean and service the cabin and toilets, and carry out many other small tasks that, added together, deliver outstanding service. To hire a contract pilot to just show up and sit in the cockpit will fail to deliver excellence to the passengers, and will most likely cause frustration. We must also be sensitive to the fact that a contract pilot will be unaware of our modus operandi, having only been partially indoctrinated in our operations, and they will not know everyone’s peculiarities. Their hearing is unlikely to be tuned to your aircraft’s call-sign, so radio answers may be ‘spotty’, initially. And regardless of your thorough briefings and explanations, they may not know all the call-outs and detailed procedures specific to your operation. Doubtless, an experienced contract pilot has a ‘chameleonic’ ability to adapt, and will build up to your expectations quickly. But do your part to help, slowing down and clearly explaining your expectations, or what the contract pilot can do to make the flight run smoothly. #5 Where to Look for Good Contract Pilots: You may be wondering about the best source for contract pilots. Social media plays a huge role in this. Job boards are also a great place to locate contract crew. Beyond personal and social networks and wordof-mouth, however, charter and fractional pilots know their pre-set monthly schedules, and may be able to commit ahead of time, if permitted by their employer.

“...charter and fractional pilots know their pre-set monthly schedules, and may be able to commit ahead of time, if permitted by their employer.”

In Summary

Ultimately, an experienced contract pilot may bring new techniques to the table, which can be a benefit to your flight department, helping you think outside the box. During my New Year trip to the Caribbean, the passengers arrived with a substantial number of heavy suitcases, which I doubted would fit the cargo hold. My colleague showed me a novel way of backfilling the cargo, which, in ten years of flying the same aircraft model, I had never seen. I now have a new technique that will yield better service to my own principal. ❚

ANDRE FODOR With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer. https://www.linkedin.com/in/andrefodor/

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Gulfstream 450

Gulfstream 550

Several aircraft available

2015 Citation XLS+

2012 Embraer Phenom 300 1,495 hours. ESP Gold and Embraer Executive Care. EU Ops compliant. Synthetic Vision. In-flight phone and datalink. ADS-B compliant

1,725 hours. Power Advantage Plus. Aux Advantage. ProParts. ADS-B compliant. Iridium satcom

Gulfstream GIV SP

Gulfstream GV

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2002 Eurocopter EC135T2

2005 Airbus EC120B

2670 hours. Air conditioning. Single/Dual pilot IFR

1490TT. Recent paint and interior. Air conditioning. Engine particle filter

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AVIONICS.qxp_Finance 25/01/2022 11:48 Page 1

AVIONICS

An Outlook for Avionics in 2022 What will happen in the avionics industry during 2022? Which types of upgrade will be in demand, and what will drive the demand? Ken Elliott shares his outlook…

ovid-19 variants, supplychain issues, and workforce migration all directly impact avionics, which complicates any attempt to provide an outlook for the trade in 2022. Nevertheless, we will attempt to do so. One certainty is that whenever there is uncertainty people and companies seek a safe harbor – this holds true within the aviation and avionics industries, too. Indeed, one avionics-related safe harbor worth mentioning is a trend towards less custom equipage and upgrades. During 2022, manufactures will build for predictability, as more customers turn to standard equipment and installations, having greater confidence in product availability, skilled manpower familiar with the tasks, and (presumably) lower cost. Outlook #1: Expect to see a growth in standard factory and third-party upgrades where equipment and parts are available and not ‘custom produced to order’. As the year progresses, factors limiting availability should improve and more custom orders can be taken.

76 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Where Does Your Aircraft fit in the Forecast?

A forward-look of avionics will likely differ between groups of business jets and turboprops, and their age. Thus, the term ‘legacy’ can be assumed as the period commencing after the expiration of factory warranty. Irrespective of warranty considerations, where the factory and third parties become involved in avionics upgrades is not clear cut. For most legacy upgrades undertaken after the warranty period expires, both Original Equipment Manufacturer (OEM) and third parties will compete in an open playing field. However, some upgrades can only be offered by the factory, regardless of the aircraft’s age. Within the warranty period there are likely to be several factory-only system upgrades – both mandated and optional – which upgrade avionics to the latest version to include new features, and provide product issue resolutions. Within the legacy, or pre-owned aircraft group, there are aircraft that were initially factory-equipped and subsequently had several minor upgrades over the years. There are also those that were recently

upgraded in a significant way. Take, for example, the Bombardier Challenger 604 upgrade from Collins Pro Line IV to Pro Line 21 Fusion: Here the major avionic suite is upgraded impacting large sections of the cockpit and remote equipment. Clearly, those legacy Challenger 604s that remain largely in their existing configuration will have different outlook needs than those with the newer avionics suites, despite the age of each airframe.

Groups can be assumed as: •

New Business Jets/Turboprops and Transport Helicopters - OEM only - Third Party, or both OEM and Third Party www.AVBUYER.com

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•

Legacy Business Jets/ Turboprops - Equipped as originally configured, with several minor upgrades since delivery - Recently upgraded with major system changes

Depending on your aircraft, your operation, and your personal or business situation, the ongoing and upcoming avionics upgrades will have a unique applicability and priority – there is no ‘one-size fits all’. Working with your preferred factory OEM, third-party MRO, or avionics shop, look at all the options available to you. Your aircraft type, model and serial www.AVBUYER.com

number is likely one of a limited number sub-group. Only focus on what applies to your airframe to avoid disappointment. Outlook #2(a): Transactions of preowned business aircraft that are already retrofitted with modern avionics suites will be in high demand. The HNWI’s will be looking for pre-owned airplanes that are close to new, as they become available in this tight market. Outlook #2(b): As company fortunes fluctuate during dynamically changing economic cycles, owners and businesses who can budget for it will endeavor to keep their aircraft market-ready, by

installing essential (cockpit) and attractive (cabin) avionic features. With the possibility of each serial number aircraft being unique, there will be significant variation in retrofit activity. It is worth noting that some upgrades are not economically viable for an individual aircraft or will not satisfy the budget of the current owner or operator. There are other ways to achieve equipage goals, and here is where both your local avionics shop and a consultant can be very helpful. A familiar avionics shop will know what you need – but they may be tied, via their owned Supplemental Type Certificate (STC) – to a specific solution. Other facilities, identified by a

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AVIONICS.qxp_Finance 25/01/2022 11:51 Page 3

AVIONICS

Table A: Catch Up Technologies (Cockpit) Flight Deck Solutions Flight Deck Displays CPDLC Advanced Radar LPV-APV-RNP Digital Standby Instruments ADS-B Out Satellite Weather SVS (not for navigation) Laseref/AHARS CVR/DFDR SBAS TCAS 7.1 EVS (not for navigation) Cockpit Satcom or ATG LED Cockpit Lighting EFBs

Suites of avionic upgrades Between 2-5 LCD displays Controller Pilot Data Link Control (FANS 1/A+, DCL, LINK 2000+) Turbulence detection, vertical detection, lightning detection+ Lateral Path (Vertical) / Appr Path Vert. /Required Navigation Proc. All in one emergency cockpit instrument package Automatic Dependent Surveillance - Broadcast (Mandated) SiriusXM Synthetic Vision with moving maps for situational awareness Attitude and Heading updated Cockpit Voice Recorder / Digital Flight Data Recorder (Digital-Combined) Satellite Based Augmentation System capable Flight Management Systems Traffic Collision Avoidance System latest version Enhanced Vision System (IR camera) for situational awareness Iridium L Band, Air To Ground, Ku or Ka Band aircraft satcom Incandescent to LED replacements Electronic Flight Bags

search or a consultant, may have access to different STCs that provide a more economical or, in some cases, a more viable solution. STCs can be traded between avionics shops and MROs (but not always). Furthermore, a facility may be reluctant to offer alternatives for individual business reasons.

aircraft, for reasons of schedule predictability, hygiene safety, and service flexibility. 6. In 2022, no less than the current 5.4% of growth in worldwide avionics sales recorded between 2020 and Q1-3 2021 are projected (data only, from Aircraft Electronics Association).

A High-Level Aviation and Avionics Forecast

Outlook #3: What this all means for avionic sales and integration is: 1. High demand for pre-owned aircraft will drive the retrofit market. 2. International transactions will lead to demand for upgrades and retrofits to meet different regional operating requirements. 3. A desire for luxury cabin upgrades from HNWIs partially assumes long lead-times and low delivery numbers from the aircraft OEMs due to parts delays, steer some new aircraft buyers towards the pre-owned market. 4. Demand for high-speed broadband with an international (anytime, anywhere) service that is as proficient as current US continental services. 5. Because of the rebound in flight activity, there will be growth in Turboprop and Light to Mid-size Jet sales (though not as strong as Large Jets). Mostly to satisfy domestic operations, avionics retrofits will include Air-To

Various forecasts highlight significant indicators for how business aircraft and avionics will shape up for 2022. Notwithstanding disasters, conflicts, viruses, high inflation or political and economic upsets, here is a summary: 1. Between 2020 and 2021 there were more than 800 additional pre-owned business jet transactions, with no indication of a slowdown for the next 12 months. 2. Anticipate over 4% growth of worldwide jet transactions, up to the close of 2022. 3. Expect a greater number of new jet orders but, with lower delivery levels and greater backlog potentially over 1.5 years. 4. New and pre-owned Large Jets will be in higher demand, driven by a significant increase of HNWIs and UHNWIs worldwide. 5. Business jets will, in part, replace seats on commercial 78 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

“...apart from requirements to operate within different airspace regions, there is very little most operators need to equip for that they have not already implemented.”

Ground (ATG) broadband, Departure Clearance using FANS (DCL) and other helpful tools for domestic flying.

Mandates or Operational Requirements

Airworthiness authorities worldwide, are tweaking existing mandates, such as ADS-B Out, Performance Based Navigation and FANS. In some cases, there have been delays to implementation dates due to the pandemic. However, apart from requirements to operate within different airspace regions, there is very little most operators need to equip for that they have not already implemented. Outlook #4: Unless, as an owneroperator, you are playing catch-up, look to meeting individual operational requirements and not mandates (such as ADS-B Out). While those requiring equipage mostly need for international or oceanic trips, some domestic ‘flight advantage requirements’ such as digital Departure Clearance (DCL), are also in the forecast for 2022 avionics activity.

Limitations to a Positive Avionics Outlook

The situation resulting from Covid19 and other non-aviation issues, has created an environment that could hinder a positive avionics www.AVBUYER.com

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Table B: Forward Looking Technologies (Cockpit) ADS-B Space Based EFVS CVS Cloud Based Cockpit Applications QAR-HUMS ADS-B In LEO Ku Band Cockpit Flight Information Tracking & Reporting

outlook. These are mostly global in scope and indirect in their influence, including:1. Manpower shortage, especially for skilled labor: For avionics, this is especially concerning, as it is a somewhat esoteric profession to the average high school or college graduate. The shortage leads to less available hangar slots, and longer integration times. 2. Parts and material shortage: From electronic chips to copper wire, anything in short supply or delayed, and will lead to longer equipment and integration lead-times. 3. Cautious investment: New product development, company growth and capital equipment acquisition are at risk when investors hold back. Current investors look for quick returns and predictability, both of which are in short supply at present. 4. Shortage of engineering and certification specialists: Most retrofits and upgrades require certification. Equally, most need some level of engineering. While facilities may have avionic technicians, they also rely on avionic engineers and certification personnel. These specialists are highly sought, and any glitch in their availability adds to schedule delays. Remember that certification requires airworthiness authority oversight, and if that involves an understaffed entity it further adds to the delay.

Systems Available to Purchase and Integrate in 2022 Avionics systems can be grouped for the different categories of www.AVBUYER.com

Automatic Dependent Surveillance - advanced Enhanced Flight Vision Systems - for navigation Combined Vision Systems (with SVS) - for navigation Off aircraft flight operations and aircraft health tools Quick Access Recorders / Health & Usage Monitoring Cockpit access to ADS-B data Worldwide Ku broadband low-cost data for cockpits Aircraft status and tracking live

business aircraft, and it is worth mentioning that, along with many of them, there will be an additional opportunity for: 1. Optional capabilities, including service provider and database features. 2. An extension or commencement of service programs, provided by the equipment manufacturers, which support the maintenance of new or upgraded systems. In line with the different stated outlooks, it is helpful to categorize available avionics into four groups. Your aircraft may need to catch-up on its technology, or it may be a candidate for the forward-looking technologies that were/will be newly introduced to the market in 2021 and 2022. As indicated previously, delays in engineering and STC certification can delay aircraft integration, even if the equipment itself is ready. These potential delays can apply to either catch-up or forward-looking technologies. The dynamics in 2022 that drive the outlook for each group, will also be different. The four groups are as follows: • Catch-Up Technology (Cockpit) • Catch-Up Technology (Cabin) • Forward-Looking Technology (Cockpit) • Forward-Looking Technology (Cabin) The term ‘Catch-Up’ is a catchall for technologies that have been designed, built, installed, and certified for several years, and in some cases many years, in several types of aircraft. Meanwhile, the term ‘Forward Looking’ is a catch all for technologies that are relatively new or still evolving, to a large extent.

One example of why a preowned aircraft would not be equipped with ‘Catch-Up’ technology could be that it did not need it for the type of operation previously flown. Another would be that some companies who are IT-sensitive have been reluctant to provide broadband or satcom connectivity to their passengers. That attitude can change over time, or with new aircraft ownership. So, it is not unusual to encounter pre-owned aircraft needing ‘Catch Up’ technology. Tables A and B (above and left), and Tables C and D (overleaf) provide the different technologies within each group. Outlook #5: Increased interest for ‘Catch-Up’ avionic systems is anticipated, as the shortage or delay of new and newer pre-owned aircraft platforms creates a demand for older models that are less likely to have desired or necessary avionics, both in the cockpit and the cabin. While HNWIs and corporations will seek out new avionic suites and a full cabin refresh, fractional and charter operators will seek to mirror the equipage in their existing fleets. Mirrored upgrades will be more functional in nature, and possibly minimalistic. Outlook #6: Some new technologies, such as cloud-based applications, are not yet mature enough for a high uptake. Some, such as Space-Based ADS-B, are not requiring equipage just yet, and should not require anything more than a service provider contract. Others – such as Quick Access Recorder devices – which capture, and (if connected) send crucial engine performance data in

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AVIONICS

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Table C: Catch Up Technologies (Cabin)

real-time, have an acceptance, linked to other aircraft systems. Outlook #7: Expect a significant demand for 4G-, and soon 5Gcapable ATG broadband internet services and, as they come on-line, Low Earth Orbit (LEO) satellite versions of the same. Outlook #8: As Head-Up Displays (HUDs) shrink in size and cost, and as both equipage and operational certification of low vision operations become less of a hurdle, expect to see a flurry of new and novel vision solutions, for both new and pre-owned aircraft types, some of which should blossom in 2022. Outlook #9: Obsolescence of both cockpit CRT-based displays and legacy Cabin Management Systems (CMS) will drive up demand for replacements, which will be potentially lucrative to the industry. At least for cockpit display replacements, STCs are usually required. Where an STC doesn’t already exist, a new one will need to be developed at considerable effort, unless your aircraft model is listed on the ‘Approved Model List’ with an AML STC. Outlook #10: There will be plenty of work to go around and plenty of avionics choices for buyers to purchase. 2022 should look a lot like 2021 until all the pent-up demand is exhausted. Worldwide inflation and the necessity to save

CMS Upgrade Connectivity Voice, Data & Internet Moving Maps Cabin LED Lighting Satellite TV Cabin Ports Galley Upgrades Seat and Zone Access Panels Fax and Scanner On Demand Streaming (Stored) Cabin Connectivity Services

Replacement of legacy obsolete systems Iridium L Band, Satcom Ka-Ku Band ATG VoIP Airshow and other map & info programs A full range of upgrades to incandescent lighting Specific live streamed TV news and shows AC Power, USB-DC Power, HDMI, Ethernet and others Galley packages at different levels of food & beverage service Upgraded switch panels and touchscreens Options for ‘office in the sky’ Onboard stored entertainment New or expanded service provided connectivity

Table D: Forward Looking Technologies (Cabin) Use of Personal Devices 1 Use of Personal Devices 2 Speaker-less Audio LED Special Effect Lighting Cloud Based Apps for Cabin LEO Ku Band 5G Internet Ku to Ka Band

Wireless personal devices use and control for cabin features Wireless personal devices for entertainment + Cabin (speaker) audio using transducers on cabin interior Mood, accent, effect, star cabin lighting Specific real time cloud apps for cabin features & entertainment Worldwide broadband connectivity at low cost (OneWeb/Starlink) 3G to 5G internet ATG connectivity Upgrade of Ku Satcom features to Ka

our planet could usher in a levelling of growth across all of aviation as Q4 2022 comes to a close.

In Summary

This article has not addressed the emerging avionics technologies required for urban air transport (eVTOL), unmanned, and supersonic aircraft. Designs and prototypes for these are fast emerging, and 2022 should see the emergence of specialized avionics for these innovative platforms. Aircraft manufacturers have much to benefit from the demand for efficient, low-cost, time-saving cockpit technology. MROs and avionics shops have many preflown aircraft to modernize and enable for operations in different regions, as global transactions multiply.

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

80 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Colleges and learning facilities must ramp up and qualify more avionics technicians, designers, engineers and certification specialists, while equipment manufacturers must rethink both their supply chains and business models. Employee retention will be crucial in 2022. Existing, financially driven, decisions may need to broaden and include the family needs of skilled personnel. These considerations will have an impact on avionics business, across the board. Optimistically, the pandemic cloud is clearing somewhat to release the wound-up coil of pentup demand. This will see growth in sales of new ‘large aircraft’ avionics, 4G and 5G broadband systems, plus pre-owned aircraft flight deck and cabin retrofits, as the big winners of 2022. ❙

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COMMUNITY

OEM Bites

Augsburg Air Service Named Cirrus Jet Authorized Service Center

Bell started 2022 celebrating its twinengine Bell 429 surpassing 500,000 global fleet hours. Popular for its large cabin, intuitive display, and excellent performance, the 429 continues to showcase its versatility across the corporate, HEMS, law enforcement, and utility sectors. More than 400 Bell 429s serve an array of customers around the world. www.bellflight.com

Augsburg Air Service is offering line and base maintenance for the Cirrus SF50 Vision Jet, having been named as an authorized service center. The company was already a sought-after service center for Cirrus piston aircraft from all over Europe.

lanned Cirrus SF50 jet service at Augsburg Air Service includes not only the usual maintenance measures, but also engine services, including engine checks and other routine on-wing inspections. And Augsburg will aim to offer replacement services for the CAPS parachute system, including line-cutter kits, in time for when the maintenance cycle for the first generation Vision Jet is due. “We have been an Authorized Service Center for Cirrus aircraft for more than 20 years,” said Markus Pöschel, Aircraft Inspector and Lead Manager of Augsburg Air Service's piston aircraft department, which is centrally located at

Augsburg’s airport. “During our many years of cooperation with Cirrus Aircraft we were able to follow the continuous optimization through all aircraft generations, and gain valuable experience with the Cirrus CAPS parachute system, which is also integrated in the Vision Jet. “These are ideal conditions, then, to ensure top-class maintenance in all areas of the Cirrus Vision Jet as well.” The new Cirrus SF50 jet service is initially open to Cirrus jets with Nregistration, but will become available for all EASA-approved registrations in the near future. More information from www.aas.ag

Gulfstream’s all-new Gulfstream G700 – which is due to begin customer deliveries in Q4 2022 – made great strides in its flight-test program during 2021, capping the year with additional accomplishments, including the use of a sustainable aviation fuel (SAF) blend on 83% of G700 flights launched from the Savannah-based Gulfstream Flight Test Center. www.gulfstream.com

Honda Aircraft Company recently surpassed the milestone of 200 HondaJets delivered. The HondaJet has been certified in over 13 countries, with total flight hours of over 98,000. The company first delivered the HondaJet in December 2015, upgrading it to the HondaJet Elite in 2018. In May 2021, the company announced further upgrades to the design with the HondaJet Elite S. www.hondajet.com

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OEM Bites

Pilatus has commissioned its latest solar plant, which was connected to the power grid in January. The plant occupies an area of 190x70m, and is equipped with almost 5,000 solar modules. This investment marks another big step by Pilatus toward climateneutral aircraft production. www.pilatus-aircraft.com

Comlux Welcomes First Ever ACJ TwoTwenty for Completion

Extraordinary Commissioner of Piaggio Aerospace Vincenzo Nicastro

Piaggio Aerospace announced the formal re-opening of the bidding process for the sale of the business complexes of Piaggio Aero Industries and its subsidiary Piaggio Aviation in January. The two companies, operating under the Piaggio Aerospace brand, are currently under Extraordinary Administration. www.piaggioaerospace.it

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Comlux took delivery of the first ever Airbus ACJ TwoTwenty at the Airbus Canada facility in Mirabel, Canada. The all-new Pratt & Whitney GTF-powered jet subsequently landed at Comlux’s Indianapolis facility for cabin completion.

ince its successful purchase at the Dubai Air Show 2021, the first ACJ TwoTwenty is now owned by FIVE, the Dubai-based Group with verticals in Real Estate, Hospitality, Investments and Philanthropy. Comlux Completion will engineer, fabricate and integrate the interior of the VIP cabin which FIVE selected from among the multiple cabin arrangements and options that the ACJ TwoTwenty offers.

3D Modelization Technology

The ACJ TwoTwenty completion process incorporates the latest in 3D modelization technology. Comlux engineers have integrated it into a virtual reality system allowing the ACJ TwoTwenty customers to immerse themselves into the future cabin environment. Beyond aesthetics, the system provides virtual interactive capability, and allows

the interior to be analyzed from an ergonomic, equipment functionality, and maintainability standpoint, demonstrating how the aircraft will perform in service. “I am delighted to welcome home the first ever ACJ TwoTwenty,” said Daron Dryer, CEO of Comlux Completion. “Our design and engineering teams have been working on the program jointly with the ACJ team for more than two years, and now she is here! “Thanks to the new virtual reality tool we have especially developed for this program, the completion process will be the most efficient, stringent and reliable we have ever achieved, allowing us to guarantee an entry into service at the beginning of 2023,” he promised. “We could not dream of a better start in the new year!” More information from www.comlux.com



AVBUYER MAGAZINE Vol 26 Issue 2 2022

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COMMUNITY

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New AeroLEDs STC Approval for Sikorsky Models AeroLEDs has received FAA-STC approval for the SunSpot 36 and 46 Series LED Landing and Taxi lights on various Sikorsky helicopter models, adding to the company’s already-expansive list of FAA certifications.

his newest STC is available exclusively through Sterling Helicopter, enabling owners of rotorcraft covered under the STC to immediately upgrade to what AeroLEDs is calling “the highest performing LED technology on the market today”. “These new LED lights far outperform what is currently offered on the Sikorsky S-76 series helicopters, increasing lamp life, night flight visibility and terrain awareness,” said Edward Allen, Director of Engineering, Sterling Helicopter. Many pilots worldwide have already benefited from this upgrade as AeroLEDs landing, taxi, and recognition lighting products are already FAA and EASA approved for thousands of applications. The SunSpot Series landing and taxi lights feature less drag, less draw, more lumens output (total light output), and are vibration and shock resistant, making them unaffected by adverse environmental conditions.

Thirty-Mile Visibility

Sunspot Series LED landing and taxi lights can be seen from up to 30 miles away, and can be left on in all phases of flight as they draw 40% less power, significantly reducing the electrical load on the aircraft battery and alternator/generator system. They also maintain their full light output even at low engine RPM, which is critical for landing configuration. Designed not interfere with NVG equipment, the LEDs are

available with integrated pulse for optimum visibility during extreme operating conditions, negating the need, and extra weight and cost of external pulse light boxes. Aircraft listed on this STC include (but are not limited to) Sikorsky S-76A, S-76B, S-76C, S-76D; all S-76 models produced to date are included. More information from www.aeroleds.com

Industry Appointments Jake Banglesdorf was appointed Executive Vice President of Assent Aeronautics’ aircraft transaction and advisory business unit. Banglesdorf will lead and manage the Assent Live Private Aircraft Auction Series, traditional aircraft brokerage, and Assent’s aviation lease management practice. Catherine Buchanan joined the STACK.aero team recently as Director of Business Development. Her mandate is to raise the company’s profile internationally, qualify prospective clients, and drive adoption of the upcoming second generation of the STACK.aero system. Catherine Buchanan

84 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Mike Pryor is the new Director of Market Intelligence at Coleman Jet Solutions, a boutique aircraft transaction firm that provides individuals and businesses with technical, regulatory, and financial advisory services. Mr. Pryor brings over 30 years of aviation industry experience to the role.

Mike Pryor

Chadd Smith has joined OGARAJETS’ expanding Research Department, becoming a Market Analyst for the company. He will support Austin Bass in market research responsibilities. Mr. Smith has a background in parts sales. T Chadd Smith

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Clip Group 2020 Bell 505 Jet Ranger X August.qxp_Heeren Cit Ultra sep 27/01/2022 11:54 Page 1

S H O W C A S E

2020 Bell 505 Jet Ranger X Serial Number: Registration: Airframe TT:

65253 SP-MRW 26

 As owner, we are proud to present  this BRAND NEW Bell 505  Price from Bell in this configuration  (including ferry to EU) was $1,85M  Now reduced to $1,72M Airframe Delivery hours: 26 hours Dual Pilot Controls Wire Strike protection Engine Dual-channel FADEC engine control system Auxiliary Control Unit (backup for HMU) Automatic startup Surge and flame-out protection Engine parameter recording for maintenance (BOOST compatible) Automatic cycle and flight hour counting

ADS-B GPS / WAAS receiver VHF COM transceiver VHF NAV and glideslope receivers Exterior Painted 2020 Metallic Black with Dynamic White Bell 505 logo Interior 2020 Premium interior with black leather seats Floor protectors: Baggage bay, Cockpit & Cabin A20 Bose headsets w/Bluetooth Air-Conditioning Location Swarzędz Gmina, Greater Poland, Poland Contact: Agnieszka Hips

Avionics ADS-B Equipped Garmin G1000H™ avionics suite Integrated on PFD / MFD Traffic Information System (TIS) Moving Map Fuel and NAV range HTAWS, and Synthetic Vision System

STS Centrum Dystrybucji Samochodów Sp. z o.o. Swarzedz, Poland

www.AVBUYER.com

Tel: +48 663 792 802 E-mail: agnieszka.hips@clip-group.com

AVBUYER MAGAZINE Vol 26 Issue 2 2022

Vienna Jets February.qxp_Empyrean 27/01/2022 14:17 Page 1

S H O W C A S E

2003 Cessna Citation CJ2 Serial Number: Registration: Airframe TT: Landings:

525A-167 EASA / D-ILDL 4050 3468

 No programs  Garmin GTN-750  WAAS/LPV  Fresh Doc 10 in 11.2021  On CESCOM Engines Total Time 3950hrs TSO 400hrs No Programs Avionics Collins Pro-Line 21 Integrated Flight Direct/Autopilot with Three-Tube EFIS Single KMR 675 Marker Beacon Garmin GTN-750 WAAS/LPV Garmin GTN-650 Universal UNS-1L FMS Dual Collins ADC-3000 Dual AHRS Collins AHC-3000 Dual Garmin GTX-330D transponder Artex C406-2 ELT Cockpit Voice Recorder (Provisions only) Collins ALT-55B Altimeter RVSM capable

Maintenance & inspections Fresh Doc 10 in 11.2021 Interior & Entertainment 6+1 Belted Lav No Wifi Location Germany Price: Please call

Vienna Jets Thomas WIESER, Managing Director Kolschitzkygasse 2/18 1040 Vienna, Austria

86 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Tel: +43 676 7217335 Email: sales@viennajets.com www.viennajets.com

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P087-089.qxp 26/01/2022 14:55 Page 1

2013 Gulfstream G650

The Ritchie Group Price:

Please call

Year:

2013

S/N:

6015

Reg:

TTAF:

1,509.8

Location: USA, CA

M A R K E Tel: +1 (314) 409-4791 T E-mail: sales@jet-transactions.com P L LOW TIME, EXCELLENT PEDIGREE. Inquire Today! U.S. Registered, A Professionally Maintained and Operated, Excellent Pedigree. C Engines & APU Enrolled on JSSI Platinum Program 100% Coverage. 96-Month Inspection Completed April 2020. Block Point 2’ (ASC E 902A & ASC 038A Incorporated). ADS-B Version II (DO-260B). CB 162 FMU and Fuel System Upgrade Completed. ASC 093 Flight Control Computer software (V7.1). REU and MEC Reliability Updates. ASC 098 Horizontal Stab Control Unit Mod 4. Main Entrance Door Lock, Latch Actuator and Rigging Improvements. Avionics: The Gulfstream G650 is Equipped with the Gulfstream PlaneView™ II /Honeywell Primus Epic Avionics Suite

www.jet-transactions.com

Bombardier Global Express XRS

Price:

For Lease

Year:

2011

S/N:

Reg:

TTAF:

1950

Location: UAE

BELL 412EMS

Tel: +971 509 616 916 E-mail: Bsarhan@icleasing.aero

IC LEASING

Available for medium to long term lease. Low Hours, Very Good Pedigree, Recent 120m Inspection Completed, 14 Pax Configuration. KU Internet, iPad & Apple TV Entertainment System, On JSSI Program. Interior & entertainment: Excellent Condition 14 Pax Configuration FWD Galley FWD & AFT Lavatory

Leonard Hudson Drilling Price:

Offer

Year:

1981

S/N:

33017

Reg:

N554AL

TTAF:

15265

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

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

Location: USA

BELL 212 (Five Available)

Leonard Hudson Drilling Price:

Please Call

Year:

1991-1996

S/N:

Call for details

Reg:

Call for details

TTAF:

Call for details

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

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

Location: USA

Airbus/Eurocopter AS 350B-1

Mark Chapin Johnson Price:

Please email

Year:

1989

S/N:

2265

Reg:

N350CM

TTAF:

1185

Tel: +1 (714) 305 8360 E-mail: mark@markchapinjohnson.com

One owner executive 350 AStar B1 hangared always and in immaculate low time condition. Owner will consider sale or lease. Possibly lowest time, best condition 350B1 anywhere. Equipped with all newest technology. Maintained in meticulous condition. Location Southern California. Serious inquiries only

Location: USA, CA

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AVBUYER MAGAZINE R Vol 26 Issue 2 2022 R

P087-089.qxp 26/01/2022 14:55 Page 2

M A R K E T P L A C E

Cessna Grand Caravan EX

Flycom Aviation d.o.o. Price:

Make offer

Year:

2019

S/N:

208B-5504

Reg:

S5-CIK

TTAF:

842

Location: Slovenia

Airbus H125

CENTERVOL

Tel: +386 40 86 04 70 E-mail: gasper.kralj@flycom-aviation.si

Type of engine: PT6A-140 (867 SHP). Cycles: 549. CAMO: YES (CAMP system). Programs: ProParts program. Interior: Canyon Group Scheme (The high contrast black and khaki of Canyon). Configuration: 11 Place Commuter Seating. Exterior: Standard Cessna Blue and white. Anti-ice system: YES (TKS fluid). Avionics: G1000 NXi. Weather radar: YES (GWX70 Weather Radar). Propeller: McCauley 4-Blade Propeller. Air-condition: YES. Oxygen system: YES (17 port). Tires: Oversized Tires, 29". MTOW: 8.807 lbs. MLDGW: 7.800 lbs. Damage history: NO

Tel: +34 (0) 626 571 821 E-mail: GERENCIA@CENTERVOL.ES

Price:

€2,350,000 Excl. VAT Close to new aircraft, Airbus H125 (AS350b3e), with very low

Year:

2020

S/N:

8853

Reg:

EC-NKK

TTAF:

261

time and with dual hydraulic system. In perfect condition, no damage better view and in stock in our facilities. Engines: Arriel 2D. Avionics: Garmin 500. Garmin GNC255A. Garmin GTN650H. Garmin GTX335R. ELT Integra AP-H. Interior: 10/10. Exterior: Yellow 10/10. Additional equipment: Dual hidrualic system, tail rotor arch, cable cutter, cargo swing fixed parts, mirror rh fixed parts, anticrash fuel tank

Location: Spain

Airbus H125

CENTERVOL

Tel: +34 (0) 626 571 821 E-mail: GERENCIA@CENTERVOL.ES

Price:

€2,450,000 Excl. VAT Only 15 hours from new!! Very rare oportunity to found in stock

Year:

2021

S/N:

9140

Reg:

EC-NSS

TTAF:

and ready for delivery very very close to new H125. The helicopter is ready in our facilities for inmediatly delivery. Engines: Arriel 2D. Avionics: Garmin 500. Garmin GNC255A. Garmin GTN650H. Garmin GTX335R. ELT Integra AP-H. Interior: 10/10. Exterior: Yellow 10/10. Additional equipment: Cargo hook fixed parts, mirror fixed parts, enhanced Thermal protection, Left and right rear sliding door

Location: Spain

Airbus/Eurocopter AS 350B-3

H2I HELICOPTERS Price:

Please email

Year:

2009

S/N:

Reg:

TTAF:

2185

Location: France

Airbus H155 B1

Alan Hudson Price:

Please call

Year:

2016

S/N:

7020

Reg:

G-TBUC

TTAF:

915

Tel: +33 (0) 617 675 405 E-mail: h2i.helicopters@gmail.com FEW HOURS ! / DIRECT OWNER. Delivered Brand New by Eurocopter in 2009. 2190 hours Since New / 5950 Cycles NG Since New. Currently in operation until mid-november (will be more hours / more Cycles Ng at the end of operations). As Is Where Is. Engines: ARRIEL 2B1. Avionics: Radio FM Motorola (STC + FP & MP). RAD ALT : RADAR ALTIMETER. VFR Day & Night package. AIM 205-1 BL Gyro directional. UI 9560 turn and Bank indicator. Honeywell KX165A VHF/VOR/LOC/GS. Int: Basic Aircraft components : AS 350B3 06.100.01.F AS350 B3+ Baseline Aircraft. Ext: Basic Aircraft components : AS 350B3 06.100.01.F AS350 B3+ Baseline Aircraft Blue / Grey. Pilot side wind screen wiper (MP & FP) Copilot side Double seat (FP)

Tel: +44 (0)788 137 1738 E-mail: al.hudson@kjet.co.uk Versatile Long-range helicopter carrying up to 6 passengers, this excellent condition aircraft is a twin-engined helicopter developed by Airbus and is designed for a wide range of missions in mind, including private passenger transport, offshore support, VIP corporate transport and casualty transport duties. Highlights include: 6 seat VIP installation (4 + 2) – with partition. Presents as New with Immaculate VIP Interior. SPHERIFLEX® Rotor Head. Ultra-Smooth Ride. No Damage History. Maintained by Airbus (UK). All ADs & SBs complied with. EU Taxes Paid

Location: United Kingdom

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P087-089.qxp 26/01/2022 14:56 Page 3

Arthur Ingles

Piper Meridian

Price:

€995,000

Year:

2008

S/N:

4697378

Reg:

F-HNMB

TTAF:

2618

Location: France

Aircraft Spare Parts

Wheels, Starters, Brakes, etc. Outright and Exchange

M A R K E Tel: +33 (0) 615 892 988 T E-mail: arthur.ingles@flymoove.com P L New Int & Ext – New Boots - ADSB In & Out – WAAS & LPV – CAMP A Engine monitoring. Airframe: 1.884 CSN. Engines: P&W PT6A42 C S/n PCE RM0398 TBO 3.600 h. 74 5 h Since Hot Section. Hartzell HC-E4N 3Q S/n HH3512 TBO 4.000 h or 6 years 219 h Since OH E (Last OH : 25/01/21). Avionics: Avidyne Flightmax Entregra Flat Panel Display System with: Dual EXP 5000 Primary 10.7inch LCD Flight Displays with HIS. EX5000 Multi-Function Display. Garmin GMA-340 Audio Panel with Marker Beacons and Intercom. Brand New Interior. 4+1 Passengers interior Fwd cabin 4 club seats Bar Table. Brand new Exterior (M600 Style). Overall white with stripes. Avidyne Multi-Link System with XM Weather, Traffic and C Max

Par Avion Ltd

Cessna, Learjet, Hawker, Westwind, Falcon, Gulfstream, Global Express

FALCONS • HAWKERS • LEARS

Tire Inflation Cage, Hydraulic Wheel Dolly, Lav Cart Brake Bleed Kits, O2 & N2 Single Bottle Carts, Socket Kits Mobile A/C Cart, Oxygen Fill Adapter, Jack Adapters

www.paravionltd.com

Manufacturer of Select GSE & Speciality Tooling Preowned GSE also available

www.AlberthAviation.com

Buy * Sell * Trade

SALES • ACQUISITIONS • CONSULTING

832-934-0055

JETAPPRAISALS Performed by Accredited Senior Appraisers

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Desktop Aircraft Appraisals / On-Site Asset Verification and Logbook Review Residual Values / Customized Analysis

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AVBUYER MAGAZINE R Vol 26 Issue 2 2022 R

P90 AIRCRAFT INDEX.qxp 27/01/2022 14:35 Page 1

Aircraft For Sale • AIRCRAFT • HELICOPTERS

AIRCRAFT

PAGE

AIRCRAFT

AIRBUS A318 Elite . . . . . . . . . . . 5 A319 VIP . . . . . . . . . . . . 5

BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . . . . . . 24, 92 BBJ2 . . . . . . . . . . . . . . . 37 BBJ3 . . . . . . . . . . . . . . . 92 737-700 . . . . . . . . . . . . . 20 767-300ER . . . . . . . . . . . 5, 6 787-8 . . . . . . . . . . . . . . 5

BOMBARDIER Global 5000 . . . . . . . . . . 92 Global 6000 . . . . . . . . . . 25, 92 Global 6500 . . . . . . . . . . 31 Global 7500 . . . . . . . . . . 61 Global Express XRS. . . . 5, 12, 87

Challenger

604 . . . . . . . . . . . . . . . . 51 605 . . . . . . . . . . . . . . . . 21 850 . . . . . . . . . . . . . . . . 19

Learjet

45XR . . . . . . . . . . . . . . . 37 60 . . . . . . . . . . . . . . . . . 31

PAGE

AIRCRAFT

PAGE

CESSNA

AIRCRAFT

PAGE

EMBRAER

Citation

III . . . . . . . . . . . . . . . . . . 51 X. . . . . . . . . . . . . . . . . . . . 20, 3, XLS . . . . . . . . . . . . . . . . . . 20, 37 CJ2 . . . . . . . . . . . . . . . . 67, 86 CJ2+ . . . . . . . . . . . . . . . 92 M2 . . . . . . . . . . . . . . . . . 15 Grand Caravan. . . . . . . . 88 Sovereign. . . . . . . . . . . . 35 Ultra . . . . . . . . . . . . . . . . . 21 172SP Skyhawk.15 . . . . . 182T Skylane. . . . . . . . . . 15

Legacy 600 . . . . . . . . . . 31 Legacy 650 . . . . . . . . . . 92 Phenom 300. . . . . . . . . . 20

GULFSTREAM IV . . . . . . . . . . . . . . . . . . 31 IV SP . . . . . . . . . . . . . . . 31 200 . . . . . . . . . . . . . . . . 5 280 . . . . . . . . . . . . . . . . 31 450 . . . . . . . . . . . . . . . . 25 550 . . . . . . . . . . . . . . . . 5, 13, 20 650 . . . . . . . . . . . . . . . . 25, 87

HAWKER BEECHCRAFT

CIRRUS SR22 . . . . . . . . . . . . . . . 15 SR20 . . . . . . . . . . . . . . . 15 Conquest . . . . . . . . . . . . 37

DASSAULT FALCON 7X . . . . . . . . . . . . . . . . . 5, 35 8X . . . . . . . . . . . . . . . . . 31 50-40 . . . . . . . . . . . . . . . 91 50EX . . . . . . . . . . . . . . . 43 900EX . . . . . . . . . . . . . . 12, 51 900EX EASy. . . . . . . . . . 31 2000 . . . . . . . . . . . . . . . 35 2000LX . . . . . . . . . . . . . 25

King Air

250 . . . . . . . . . . . . . . . . 92 350i . . . . . . . . . . . . . . . . 35 360 . . . . . . . . . . . . . . . . 29 F90-1 . . . . . . . . . . . . . . . 19

Beechcraft

1900D . . . . . . . . . . . . . . 8 Premier 1 . . . . . . . . . . . . 29

Hawker

400XP . . . . . . . . . . . . . . 20 800XP . . . . . . . . . . . . . . 31 4000 . . . . . . . . . . . . . . . 19, 67

PIAGGO

PILATUS PC-12 NG. . . . . . . . . . . . 21

PIPER PA46-350P . . . . . . . . . . . 8 Meridian . . . . . . . . . . . . 89

HELICOPTERS

AIRBUS/ EUROCOPTER AS 350B-1 . . . . . . . . . . . 87 AS 350B-3 . . . . . . . . . . . 87 EC 120B. . . . . . . . . . . . . 8 EC 130 B4 . . . . . . . . . . . 29 H125 . . . . . . . . . . . . . . . 88 H155 . . . . . . . . . . . . . . . 87

AGUSTAWESTLAND AW109E Power. . . . . . . . . 21, 65 AW109S Grand . . . . . . . . 65 AW139. . . . . . . . . . . . . . . 65

BELL 206 . . . . . . . . . . . . . . . . 21, 65 212 . . . . . . . . . . . . . . . . 8, 412EMS . . . . . . . . . . . . . 87 505 Jet Ranger X. . . . . . 85

ROBINSON

P180 Avanti . . . . . . . . . 91

R44 II Clipper. . . . . . . . . 15

Advertiser’s Index 1st Source Bank ........................ 55 Action Aviation ............................61 AeroBuyNow........................1, 8 - 9 AMSTAT .................................... 74 Aradian Aviation ........................ 73 Assent Aeronautics .....................75 Avpro ........................................ 31 Carolina GSE ............................ 55 Castle Air ....................................65 Central Business Jets ............... 91 Clip Aviation .............................. 85 Dassault Falcon Pre-Owned .. 2 - 3 Duncan Aviation ........................ 37 Eagle Aviation .............................15 Freestream Aircraft ............ 24 - 25 General Aviation Services.......... 35

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MRO Section Index Aero-Dienst 25 Aero LEDs 53 Atlas Air Service AG 20 - 21 ATP 65 Augsburg 31 Bombardier 13 C&L Aviation Group 63 Castle Air 57 Concorde Battery 59 Dassault 7 Duncan Aviation 27 Elliott Aviation 35 Engine Assurance Program 19

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ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION MRO

MRO

I STCs: Understanding the Key to a Successful Upgrade I Tips on Scheduling Engine Overhauls & Inspections

SPECIAL

I Engine Overhaul Acronyms: Understanding the Jargon

INDUSTRY GUIDE

I How to Enjoy Cabin Electronics Upgrade Success!

I How to Adjust Engine Maintenance Coverage Safely I Flight Deck Upgrade: What Drives Your Options? I Tips for Your Next Aircraft Paint Project

FEBRUARY 2022

I Ramping up MRO Support: Dassault’s Story

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AVBUYER MAGAZINE Vol 26 Issue 2 2022

Editor Welcome F FEB22.qxp_JMesingerNov06 26/01/2022 12:40 Page 1

Editor’s NOTE

Matt Harris

Matt Harris is commissioning editor for AvBuyer. He is an experienced General and Business Aviation journalist and has edited a variety of titles across the last two decades. These include AvBuyer, BizJet Advisor and GA Buyer Europe. https://www.linkedin.com/in/ matthew-harris-avbuyer/

Keeping Maintenance on Track During Peak Demand ver the course of the last year, we’ve been hearing about the busyness of MRO shops around the world. As business aircraft flying increased during 2021, surpassing the number of flying hours recorded pre-Covid in 2019, and as the aircraft sales environment continues to move at a blistering pace, pressures have inevitably been mounting on the schedules of maintenance centers. First, there is high demand for pre-purchase inspections, which are an essential procedure prior to buyers accepting delivery of their aircraft. And second, with aircraft flying more frequently, more scheduled events are coming up. “The increased aircraft utilization post-Covid-19 is driving a higher demand for engine inspections, with many service centers running at capacity,” Andy Robinson, SVP Customers and Services – Business Aviation at Rolls-Royce, told AvBuyer. Although much is made of the supply chain problems faced by the industry, the MRO sector enjoys a little more flexibility than the OEMs in managing these, according to Robinson. The “issues affect new engine deliveries [for example] much more than the MRO environment,” he explains. “In the MRO world, it’s possible to make use of serviceable parts, whereas for new engines only new material can be fitted.” According to Robinson, however, OEMs like RollsRoyce can move parts from engines further back in the MRO cycle, “buying them time to continue to deliver while working to get the supply chain back on track”.

Anticipate and Book Early

All the same, with scheduling pressures high across the MRO industry, owners and operators of business jets should be proactive, anticipating and booking their maintenance slots earlier than they might have done a year or two ago. This is especially the case when other upgrade work will be attached to the downtime, and new avionics, cabin electronics, or materials for a cabin make-over need to be chosen and ordered. In relation to anticipating your upcoming maintenance needs, there are some excellent tracking solutions available to help. Rolls-Royce, for example, offers “a robust fleet forecasting and planning process where we can predict and flex as needed,” says Robinson, who reveals the company is ramping-up capacity to meet the demand.

4 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

In this MRO Special Edition…

Within this special MRO edition, AvBuyer presents a wide array of content giving practical insights, tips and advice for planning your next MRO shop visit – whether that’s providing a better understanding of the basics (i.e. how to understand Supplemental Type Certificates and plan an upgrade or modification accordingly; or unpacking some of the common terms and acronyms associated with overhauls), or something more complex. While engine inspections and overhauls are crucial events in the business jet owners’ calendar, Gerrard Cowan asks the experts about the key differences, as well as the common challenges they pose to aircraft owners today. Engine maintenance programs are known to provide predictability to the cost of engine maintenance, but Chris Kjelgaard asks some of the leading program providers whether it is ever feasible to adjust your coverage level, and, if so, how and when this should happen without incurring unforeseen risk? Beyond the engines, you may be considering an upgrade to the cabin electronics, tying in with some upcoming downtime for your aircraft. Brian Wilson highlights why you ought to consider the different functions of your aircraft’s cabin space, and how to ensure everybody will be happy with the outcome. Or perhaps it’s the flight panel that’s due an upgrade: With a dizzying array of avionics solutions on the market, Ken Elliott shares his expertise about the factors that will ultimately shape your project. Finally, for those considering a paint refurbishment, Rebecca Applegarth asks two leading professionals within the industry about some of the important factors to consider, while, as the first Falcon 6X deliveries approach later this year, we discover how Dassault is looking to the future of MRO, while keeping a close eye on the maintenance needs of existing Falcon owners. We trust the content within this special MRO guide will have a practical use. We believe that our MRO editions provide information that will be as useful in a few years’ time as it is today – so even if your next major MRO shop visit isn’t due imminently, this guide is worth reading, then keeping for future reference. Enjoy! Matt Harris Commissioning Editor, AvBuyer

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F CONTENTS FEB22.qxp 27/01/2022 10:25 Page 1

Contents

MRO Special Industry Guide 4 Editor’s Note: Keeping Maintenance on Track During Peak Demand

8 STCs: Understanding the Key to a Successful Upgrade

14 Tips on Scheduling Engine Overhauls & Inspections

22 Engine Overhaul Acronyms: Understanding the Jargon

28 How to Adjust Engine Maintenance Coverage Safely

38 How to Enjoy Cabin Electronics Upgrade Success!

46 Flight Deck Upgrade: What Drives Your Options?

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Ramping up MRO Support: Dassault’s Story

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MRO

STCs: Understanding the Key to a Successful Upgrade What should aircraft owners understand about Supplemental Type Certificates when planning to modify or upgrade their jets? How should existing STCs be understood and planned around? Dave Higdon provides insights…

hough complex to understand and highly technical in nature, it’s worth aircraft owners and operators taking the time to fully research Supplemental Type Certificates (STCs) to understand their implications for a planned upgrade. STCs are issued by the US Federal Aviation Authority and come in all kinds of flavors – from those covering airframe modifications, to those allowing reconfiguration within the interior, to those allowing the aircraft to employ different performance limitations (such as an increase in gross operating weight). This can also allow a change of powerplant to achieve a longer Time Between Overhaul (TBO), better range or climb specifications, and/or reduced fuel consumption, etc — so there is a wide variety of STCs available. Decoding the language used to promote the STC can be a challenge, since some of the terms are common to other types of work on the airplane, while others are exclusive to a particular STC. Almost universally, however, aircraft STCs exist to correct a deficiency or improve an aspect 8 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

of the aircraft’s performance and/or function, so it’s in the aircraft owner’s interest to learn their language. Understanding an STC’s language is vital to identifying which one is best for achieving the desired goal, whether that’s improved performance, reduced fuel flow, longer TBO periods, or simply saving money when compared to undergoing an engine overhaul. Currently, Blackhawk Aerospace is an industry leader in developing STC packages for Pratt & Whitney Canada’s PT6A-powered turboprop engines, while STCs also exist for Falcon jet engine upgrades, and Beechjet 400As. Such upgrades (and their related STCs) typically include more than a new engine, however, covering cowling, engine trend-monitoring, and new engine gauges. And, at a time when passenger safety is at the forefront of everybody’s mind in relation to Covid19 transmission, Duncan Aviation, together with Dassault Aviation, recently developed STCs and installation packages for the Aviation Clean Air www.AVBUYER.com

MRO.qxp_Finance 25/01/2022 15:24 Page 2

AVBUYER.com

(ACA) ionization system for three pre-owned Dassault Falcon Jet models, including the Falcon 7X, Falcon 2000/2000EX, and Falcon 900/900EX aircraft (including all EASy variants). While there is a multitude of STCs available for most aircraft make/models within Business Aviation, some of the terms accompanying STCs are not always clearly defined, and understanding them is key to making the most appropriate decision when shopping for the one that will provide the desired upgrade to your business airplane.

The Difference Between PMAs and STCs

On the one hand, Parts Manufacturer Approval (PMA) “is an approval granted by the FAA to a manufacturer of aircraft parts. The holders of a PMA are permitted to make replacement parts for aircraft, even though they may not have been the original manufacturer of the aircraft”. The part produced under a PMA must comply with the quality-control and performance standards of the original part. www.AVBUYER.com

Conversely, as explained by the FAA, an STC is a Type Certificate (TC) issued when an applicant has received FAA approval to modify an aeronautical product from its original design and original type certificate. The STC, which incorporates by reference the related TC, approves not only the modification, but also how that modification affects the original design. The benefits of the avenues provided by PMAs and STCs means aircraft can be upgraded and improved without the involvement of the original manufacturer, perhaps offering a path to alternatives that may cost less. Before the FAA issues an STC allowing some kind of change to an aircraft, however, the applicant must produce documentation showing the effect of the installed STC on an aircraft. The STC applicant has the option (in most cases) of justifying their design by an engineering analysis, or by testing. If engineering analysis is chosen, a factor of 1.3 must be used as a safety buffer. Put another way, if the aircraft requires 9G forward-loading conditions for seats, then the



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MRO

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engineering analysis must prove the design to be 1.3 times 9G, or 11.7G. The design is frozen once it has cleared all obstacles and passed the engineering or testing requirements. Once the decision is made to proceed, the design is executed, and a prototype built (sometimes followed by several more iterations).

Selected Additional Terms Relating to STCs

Approved Model List (AML): AMLs are part of some aircraft STCs showing the different aircraft into which the STC can be installed. AMLs are typically developed and added to the STC after the initial approval by the FAA. The FAA reviews, and approves or rejects additions to the original STC. Designated Airworthiness Representative (DAR): The FAA uses DAR as inspectors in lieu of sending FAA employees to inspect individual projects. A Designated Airworthiness Representative is an individual appointed in accordance with 14 CFR § 183.33 who may perform examination, inspection, and testing services necessary to the issuance of certificates. There are two types of DARs, including manufacturing (DAR-F) and maintenance (DAR-T). Designated Engineering Representative (DER): A DER is an individual, appointed in accordance with 14 CFR § 183.29, who holds an engineering DAVE HIGDON is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com

10 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

degree or equivalent; possesses technical knowledge and experience; and meets the qualification requirements of Order 8100.8. DARs and DERs are often part of a company team developing STCs, PMAs, and new type certificates for their products.

Onus Remains with the Owner/Pilot

A Supplemental Type Certificate doesn't relieve a pilot or operator of their responsibility to operate the aircraft as approved by the FAA in the original Type Certificate, unless otherwise specified by the STC. For example, if an aircraft is certified to a service ceiling of Flight Level 410, an engine STC giving that aircraft the capability to exceed that altitude doesn’t automatically allow it to use the higher altitude unless the STC specifically says so (that’s an issue involving the airframe and pressurization system). The key to what the STC allows is in the documentation, which should be incorporated into the aircraft and engine logs. We hope, from the preceding paragraphs, that the message rings clear. It’s important to both research and understand the STCs available for your aircraft, and also the terminology contained within. This will be the key to a trouble-free upgrade that delivers the capability and permissions you need. ■

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Tips on Scheduling Engine Overhauls & Inspections Engine inspections and overhauls are crucial events in the calendar for business jet owners, helping ensure the safety and health of the aircraft. Gerrard Cowan asks what are the key differences, and what are the common challenges aircraft owners and operators face today?

he difference between an aircraft overhaul and an inspection is essentially related to scale. An aircraft inspection is usually conducted on-wing and can be done on site with limited maintenance, ensuring the engine is at optimal operational condition, while an overhaul is a larger, much more time-consuming operation. The aircraft engine inspection could involve the use of torches, mirrors and similar, relatively simple equipment to inspect various areas of the engine, such as fan blades or wiring. It is also likely to involve the use of a borescope, a camera on a cable that can be “manoeuvred through various parts of the engine to ensure the core parts are in proper condition”, Stewart D’Leon, Director, Environmental and Technical Operations at the National Business Aviation Association (NBAA), explains. By comparison, an overhaul must take place at

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certain intervals, as determined by the engine manufacturer and outlined in the engine maintenance manual, says Robert Burda, engine product line specialist manager at Jet Support Services, Inc (JSSI), a provider of maintenance support and financial services to Business Aviation. Overhauls are the most detailed inspections that take place on an engine, encompassing the inspection of individual engine components against the allowable criteria set forth by the OEM. The allowable criteria in areas like cracks, burns and missing material are minimal at this inspection. “The reason for this is that the next overhaul inspection interval for this engine model could be thousands of hours into the future,” Burda says. “If these components were not repaired or replaced at the current overhaul, it could cause serviceability issues with the engine during continued operation.” JSSI provides a range of engine maintenance www.AVBUYER.com

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event management services, working with both clients and MRO facilities. Burda notes that the cost and time involved in an overhaul will depend on the engine make and model, and said that material availability and MRO slots need to be planned well in advance to reduce aircraft downtime. “If your operation doesn’t allow for the aircraft to be down, you’ll need to plan for lease engines to be installed to keep the aircraft in service during this maintenance,” he advises. “This could take more than 90 days.” Regardless of whether an aircraft operates on a hard-time engine program or an on-condition maintenance program, “an overhaul-level inspection will not be avoidable forever”, Burda warns. It’s therefore important to understand the costs associated with these inspections; JSSI offers an hourly cost maintenance program (HCMP) with the aim of offering budget stability, he highlights. www.AVBUYER.com

Pay Now or Pay Later

Elliott Aviation provides maintenance, avionics, paint, interior, engine and accessory work across its four MRO facilities. In regards to engines, its focus is primarily line maintenance services, and it works with outside vendors to deliver the majority of overhaul and heavier inspections, says Mike Saathoff, the company’s Director of Sales Operations & Engine and Accessory Sales. Saathoff said that at times of economic pressure – as was recently experienced due to Covid-19 – “there’s been a tendency for people to want to complete the minimum to be compliant to keep their aircraft in the air”. He warns that operators should be sure to follow manufacturer recommendations, “because doing the minimum can push upcoming maintenance to be more expensive and cause longer downtimes”. Operators should also be aware that capacity will

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be strained due to industry-wide staffing shortages, he adds. “Getting aircraft in [to the maintenance shop close to the event] may be a lot tougher than customers planned for, so expect to see input dates further out than they usually are.”

Be Proactive as Overhaul Approaches – Especially Today

Business jet operators should ensure they work with companies that are “experienced in your engine model and can provide guidance and communication throughout the maintenance event”, says Burda. “Working with the MRO facility to plan material in advance could be a proactive way to reduce aircraft downtime and the need for lease engine installation.” Operators also need to be prepared for possible overhaul-level inspections pending the results of lower-level inspections, Burda says. “This can come at an inopportune time in the aircraft schedule if the potential inspection results are not fully understood and accounted for in advance.” 16 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

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The supply chain issues experienced in aerospace and other industries in recent months should also be a focus for business jet operators, says D’Leon, highlighting that a lot of parts manufacturers are having trouble keeping up with demand. This means that operators must order any necessary parts well in advance, potentially affecting the timescale and structure of their inspection and overhaul work. Otherwise, a potential discrepancy or issue could cause downtime for the aircraft, unless it is in a flyable condition. “In many cases, it won’t be,” D’Leon adds. “You need to be aware before you start your inspection that you could end up exceeding the timeframe you had scheduled, ultimately not returning the aircraft to service in the time you had planned.” Stacy Hollis works for Duncan Aviation as an Engine Service Sales Representative. Duncan Aviation is a provider of a range of engine overhaul and repair services for several different OEMs and engine models. Hollis says that business jet owners and operators should be aware that

“This means that operators must order any necessary parts well in advance, potentially affecting the timescale and structure of their inspection and overhaul work.”  www.AVBUYER.com

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“currently in today's market everyone is experiencing manpower shortages, rental engine shortages, engine parts shortages and things of that nature” that are extending in-shop turn times. Where it was once possible to schedule engine and airframe events just a few weeks ahead, it’s now a case of “the more lead time, the better”. For major overhauls, he recommends scheduling several months in advance. “Some airframe events need to be scheduled six months to a year in advance to secure hangar slots.” Partly, this is because business jets are being used more heavily, Hollis suggests, meaning “these events are coming up quicker than they used to”. He has seen a number of situations over the past six months or so where customers “have reached the engine event interval, and they haven’t done any preplanning”.

GERRARD COWAN is a freelance journalist who focuses on aerospace and finance. In addition to his regular features in AvBuyer, Gerrard's work has appeared in the Wall Street Journal and Janes, among others. Gerrard can be found on Twitter: @GerrardCowan

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According to Hollis, this goes beyond financial considerations, impacting the ability to even place an aircraft into a facility and get the work done. The message is clear. “It really comes down to scheduling months and months in advance.” Today, owners and operators facing near-term overhauls and inspections should be anticipating them, understanding the scope of work (both actual and potential), and putting in place as many plans as possible to ensure today’s industry-wide challenges don’t cause problems when their aircraft’s maintenance event comes due. ❚ More information from: Duncan Aviation: www.duncanaviation.aero Elliott Aviation: www.elliottaviation.com Jet Support Services Inc: www.jetsupport.com NBAA: www.nbaa.org

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Engine Overhaul Acronyms: Understanding the Jargon Engine overhauls are a complex area, further complicated for uninitiated aircraft owners by various acronyms. Dave Higdon dissects what’s implied when your LLCs need changing, or an HSI is necessary – and what the TBO for your powerplants implies anyway!

topic most pilots and operators dread discussing, business airplane overhauls and major inspections loom at set periods in the operating life of every aircraft. They’re an inevitable fact of life. Without an engine maintenance program in place, they can be unpredictably expensive. And even with a program in place, they are time consuming, grounding the jet for a period of weeks. They also need to be understood in order for the owner/operator to keep a handle on planning ahead, and managing the process from their side of the equation. Part of that is to understand exactly what will be involved – which will help explain the high costs and time required. For that, insights into what some of the acronyms stand for is important. 22 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

TBO: Time Between Overhaul

The Time Between Overhaul (TBO) of an engine is set by the engine manufacturer and submitted to the FAA as part of the manufacturer’s typecertificate application. This number usually runs into the thousands-of-hours for mature engines. Operators of turboprop aircraft will find that propellers – especially constant-speed props – also operate with a TBO that is set by the OEM, as do some of the analog flight instruments installed in many a business jet and turboprop panel. In fact, the attraction of longer TBOs is one of the motivations cited by operators who are upgrading their aircraft with digital, glass cockpits. For operators flying well above the average number of annual hours in Business Aviation, the need to overhaul Horizontal Situation Indicators is one incentive cited for moving to digital Primary www.AVBUYER.com

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Flight Displays (PFDs). Some Horizontal Situation Indicators have relatively low TBO cycles that high-time operators can hit more than once annually – giving such operators justification to switch to PFDs, based on the high costs of overhauling their Horizontal Situation Indicators two or three times a year. Operators can predict whether – and if so, when – an Overhaul (or other major inspection) is likely to be invoked during their time of ownership, based on their average annual flying hours. For example, if the TBO is set at 5,000 hours, and 4,000 hours have been flown either since the jet was new, or since the last overhaul, the next overhaul will be due in 1,000 hours. Assuming in this example that the owner has an average annual utilization of 250 flight hours, it becomes clear that an overhaul will be due in four years’ time, with www.AVBUYER.com

plenty of time to plan for it. It is helpful to consider the overhaul looming at the end of the TBO as the ultimate recycling plan. Each engine is removed from the airplane, and technicians disassemble them. Components eligible for re-use are measured, and, if they measure up as required, go back into the engine during reassembly. The engine undergoes some testing, before being returned to active service, and the TBO meter starts to tick off the hours until the next overhaul is due.

LLCs: Life-Limited Components

You’ll notice in our outline of the overhaul we mentioned the components that were eligible to be reinstalled in the engine. These do not necessarily include the Life-Limited Components (LLCs), some of which may have reached the end

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of their time limits. LLCs come with a set number of hours before they must be replaced, as set by the OEM. Those limits may be measured in hours or cycles (an aircraft take-off and landing represents one cycle). Once the limit is reached, they must be replaced – either by another part manufactured by the original OEM, an approved part manufactured under license by a third-party company, or a previously-used part, operated in another engine, but with ample life remaining in it. Each option has its own cost implication.

HSI: Hot Section Inspection

Turbine engines all sport an intake fan, a compressor section, a combustion chamber, and hot sections (turbines spun by the hightemperature, high-pressure gas exiting from the combustion chamber, in turn driving the compressor). Exposed to extremely high pressures and vast temperature variations, the hot sections require periodic inspections hence the term ‘HSI’. These look for signs of wear, impending failure, and cracks to determine the condition of these components, which include: 24 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

• • • • • • • •

The air compressors, Combustion chambers and liners, Turbine wheels, Power and compressor turbines, Stationary vane rings, Turbine-shroud segments, Temperature sensors and connections, and Compressor inlet.

Traditionally, Hot Section Inspections require engine removal and partial disassembly to access the relevant parts, but for the past few years the industry’s leading engine OEMs have designed their newer engines to enable inspection while they’re still installed on the airplane, with borescopes being the main tool for viewing inside the relevant areas. Components failing the HSI will need to be replaced or repaired, while other items may simply be logged for future attention if they don’t directly impact the integrity of the powerplant. If significant deterioration isn’t found in the engine’s hot section components, the HSI will tend to be a relatively low-cost major maintenance event, and in some cases may only ground the airplane for a few days.

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“If significant deterioration isn’t found in the engine’s hot section components, the HSI will tend to be a relatively low-cost major maintenance event, and in some cases may only ground the airplane for a few days.” The Onus is on the Operator

Though the TBO and HSI are the two predominant terms when discussing engine overhaul, the inspections and operating limits of engines require deeper knowledge. There is a need for operators to know, understand, and follow engine issues since the powerplants account for about half the value of the aircraft. Failure to maintain the engines in top condition can adversely, and significantly, impact the fair-market value of the jet, as well as its dispatch reliability and fuel efficiency, and increase direct operating costs. It is to give the company’s airplane its maximum potential that more and more operators are turning to hourly maintenance programs to handle their maintenance demands.

DAVE HIGDON is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com

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Whether covered by a factory program (like those from GE Engines, Rolls-Royce or Pratt & Whitney Canada), or from a third-party provider (like Engine Assurance Program or JSSI), such programs make maintenance costs predictable, and maintenance more reliable. Remembering that the company plane is a business asset that adds value to its owner by being reliably available at short notice keeps its worth apparent. But getting the maximum value out of this time machine requires keeping it wellmaintained and contributing to the company’s bottom line. A small part of that, of course, is making it your business to familiarize with the mandated overhaul, inspections, and the terminology associated with them. ❚

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How to Adjust Engine Maintenance Coverage Safely When is it feasible to adjust your engine maintenance program coverage level, and how should you achieve this without unnecessary risk? Chris Kjelgaard asks the industry’s experts…

ngine maintenance program coverage can offer various options, for a variety of monthly payment rates — but not always. The options provided by the coverage available for your engines, usually priced and predicated on a per-flight-hour basis, can depend on the engine type powering your aircraft; the company which made the engines; and the company providing the coverage. Two of the largest Business Aviation engine manufacturers, GE Aviation and Rolls-Royce, have decided for their respective OnPoint and CorporateCare maintenance plans to offer only comprehensive programs, covering all scheduled maintenance requirements; all airworthiness directive compliance work; line maintenance; and most unscheduled maintenance events — particularly those which require an engine to be removed from the aircraft for repair. In cases of ingested foreign object debris (FOD) damage to engines (for which the repair costs above a set deductible amount are covered by the aircraft’s hull and

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liability insurance policy), OnPoint and CorporateCare will also support aircraft owners by leasing them replacement engines and providing engine removal, transport, logistics and installation services. Indeed, Rolls-Royce subsequently introduced CorporateCare Enhanced in 2018, an even more comprehensive level of maintenance coverage, for its BR710, BR725, and brand-new Pearl 15 BizAv turbofan engines. Another large Business Aviation engine manufacturer, Pratt & Whitney Canada, has historically offered four levels of coverage in its Eagle Service Plan (ESP), but is evolving towards two levels for a given engine model - a move that it says is driven by declining interest in the less inclusive plans. By focusing on the two higher level plans, P&WC aims to simplify and streamline the offering and customer experience for its more-than 75 different engine models across the turboprop, turboshaft, and turbofan market segments. www.AVBUYER.com

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For similar reasons Honeywell, a fourth large manufacturer of BizAv turbine engines and auxiliary power units, also offers three levels of its Maintenance Service Plan (MSP) hourly coverage — MSP, MSP Gold and MSP Gold NRL. Based in North America two non-OEM maintenance coverage providers, Jet Support Services, Inc (JSSI) and Engine Assurance Program (EAP), also offer plans for various Business Aviation engine types. EAP specializes in covering several widely-used, slightly older turbofan engine types, providing comprehensive coverage for those. JSSI covers an extensive range of Business Aviation engines, and offers a wide variety of coverage options to suit the needs – and pockets – of its many customers worldwide. For a variety of reasons aircraft owners may have occasion to consider amending, either by augmenting or cutting back, the levels of coverage their engine hourly maintenance plans provide. But, as you might expect, this is never a decision that you should take lightly, or on the spur www.AVBUYER.com

of the moment. The implications of changing coverage levels can severely impact the resale value and the marketability of an aircraft, as well as the ability of the aircraft to perform required missions, according to four experts interviewed for this article.

When is Best to Adjust Coverage?

Sean Lynch, Program Coordinator for EAP, says the best time to consider and shop for the options owners want from their engine coverage is before they buy the aircraft whose engines will be covered. This generally refers to owners looking to buy used aircraft either offered for sale with no engine coverage, or with a level of coverage that the would-be owner wishes to change. (New-production aircraft usually are sold with comprehensive engine maintenance warranty already in place, but owners usually elect to have them fully covered as well.) According to Lynch, owners will typically want to change

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coverage levels — and/or entire plans — for one (or a combination) of three reasons: 1. The level of customer service the plan provider offers; 2. Plan pricing; and/or 3. The level of aircraft dispatch reliability a change in coverage will offer. During the pre-buy engine coverage decision process, the wouldbe owner of the aircraft must evaluate a series of important factors in determining the level of coverage they want for the engines; particularly whether the level of any existing plan covering them should be changed. Overhaul Status: One factor is the status of the engines in terms of time elapsed between overhauls, or until the next mid-point inspection, says Lynch. If the engines only have, say, 200 flight hours remaining before the next overhaul is due, any newly commissioned plan provider will require the new owner to provide a 30 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

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buy-in to cover the cost of the engine operating time elapsed since the previous overhaul. Unscheduled Maintenance: Another vital consideration for the new owner is to carefully evaluate the potential costs of unscheduled maintenance events — particularly catastrophic damage — before deciding if the maintenanceplan coverage required needs to include coverage for unscheduled maintenance. Maintenance performed during scheduled shop visits such as midpoint inspections, hot section inspections and overhauls probably only accounts for less than 60% of the total maintenance costs associated with an engine, according to Lynch. The other 40%, “the real cost, is the stuff that breaks between those events”. He cites the example of one owner who experienced an engine oil pump failure during the first flight of the aircraft after purchase, requiring a $28,000 repair. Two trips later, one of the engines had an N1 (low pressure

turbine speed sensor) monopole issue that cost $27,000 to repair. Just 30 flight hours after that, an engine’s number 4 carbon seal began leaking and required replacing, at a cost of $180,000 overall.

Understand the 100% Coverage Benchmark…

People need to understand the ‘benchmark’ of what 100% coverage provides, and the considerable potential financial risks of declining it, before deciding whether or not to contract for a comprehensive plan, says Lynch. “It includes rental engines, at $40k a month. It includes shipping, which is $12-17k internationally, and $3-7k inside the US, depending on how fast you need the engine,” he elaborates. “It covers LLPs [the replacement of which could cost well over $1m per engine] and on condition parts. It even includes engine removal and replacement, anywhere from $19-39k each. “Don’t assume you have 100% coverage,” just because you have an

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hourly engine maintenance plan contract, he warns. Do not assume you are saving money by taking the engine off the program. “You are losing value in the asset if you do,” Lynch stresses. “If the aircraft is financed, you could be ruining bank covenants by unenrolling the engines. Banks mandate that engines should be on a program — otherwise they have no collateral,” he explains. “Without engine coverage, the aircraft the banks are financing have little resale value.” Ultimately, engine programs are good for the entire industry, Lynch asserts. “A lot of aircraft scrapping is occurring because a lot of engines are not covered”.

Optional and Comprehensive Coverage

When a provider offers different engine maintenance program coverage levels as options, some plans may offer “cycle only” coverage, which covers the costs of replacing lifelimited parts (LLPs) and other parts only when they are replaced during scheduled maintenance events, says Steve McManus, one of two Senior Sales Directors for the OnPoint program in GE Aviation’s Business Aviation division. Such plans leave the costs of 32 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

replacing those parts during unscheduled maintenance to the owner. In today’s overheated used-aircraft market, “owners are over-paying for aircraft, so now the dumbest thing to do is to put it on a cheap engine program,” Greg Ryan, Senior Sales Director in GE Aviation’s Business Aviation Division says, adding this can be a real “Gotcha”. Comprehensive coverage has particularly important and positive repercussions for aircraft resale values, Ryan says, adding “if you have light coverage, it makes a big difference in resale value.” It is even more important if the owner is relying on a bank loan or lease to pay for the acquisition of the aircraft. “Ninety percent of financed aircraft are required to have a program, and the financier would want to have more complete coverage,” says Ryan. “We are seeing banks require an assessment on the [engine] program, and to have it assigned to them. They want to understand what is covered in the program.”

The Importance of LLP Coverage

Similarly, notes P&WC’s Delray Dobbins, “buyers need to exercise due diligence” when deciding whether to buy a plan that covers the cost of LLP

(Life Limited Parts) replacement during unscheduled or scheduled maintenance, or one that does not. For example, if an owner is buying an aircraft with engines that have LLPs requiring replacement at 13,000 hours, but the LLPs in the engines have several thousand hours’ operating life left before then (in other words, many years of operating life for a typical privately operated business jet), then the owner might decide it is worth chancing not having LLP replacement costs covered. However, warns Dobbins, “one significant ‘Gotcha’ I’m seeing occur over and over right now is when exfractional [ownership] aircraft enter the used market, usually in the $1-2m range. The Gotcha is the LLPs in the engine.” Such aircraft are often offered with engines containing LLPs which have accumulated as many as 11,000 cycles and 12,000 hours, so if the aircraft is to be operated at a utilization rate anything higher than 200-300 hours annually, it is quickly going to need a major overhaul, so the LLPs can be replaced.. If the new owner hasn’t paid to include coverage of LLP replacement in the hourly maintenance program, Dobbins estimates it will cost $1.5m per engine to replace them when they run out. The owner either has to cough up $3 million for replacement LLPs on a pair of engines, or scrap what had been an aircraft investment of up to $2m not long before. Taking seriously the idea of LLP replacement coverage is all the more important because “the biggest variability in engine programs is LLPs,” says Dobbins. In many pre-purchase inspections, “even appraisers tick a box and don’t go into details” on www.AVBUYER.com

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checking remaining LLP life. “Those details are going to bite you hard,” if they aren’t taken into account.

Replacement Parts Versus New Parts

While it should be the goal of every plan provider to keep each covered engine on wing as long as possible, for reasons both of cost (in this case of paying for unscheduled maintenance) and also of market reputation, sometimes oversight by a plan provider might falter. McManus cites an example known to GE of a business jet owner whose CF34-3B1 engine plan had catastrophic coverage, which was invoked because a part failed. In this case the plan provider, which wasn’t GE, had a used serviceable replacement part installed in the business jet engine, but didn’t notice that the replacement part had come from a CF34-3B1 engine which had been on a regional jet. That engine had been operating on an 18,000-cycle airline-operations cycle, but the replacement part was now installed in an engine operating under a 3,000-cycle private-operations cycle. The owner had no idea this had happened until he contacted GE about coverage and found that the value of his aircraft had fallen by $2m as a result of an unsuitable replacement part being installed in one of its engines. McManus says that in 90 percent of the cases where GE Aviation has to install a replacement part in an engine, it will install a new part. The only exceptions are when aircraft are grounded in parts of the world where it would take days for a new replacement part to arrive. In such cases GE will always install a business jet-cycle used www.AVBUYER.com

PHOTO COURTESY OF P&WC

serviceable part of the latest operational specification and configuration. “We know how a new part will perform, but not a used part,” says Ryan. “Time on wing is everything — it is really a focus of ours.”

Evidence of Engine Condition

Just because an owner wants to change the maintenance-plan coverage level for the aircraft’s engines doesn’t mean that it can be accomplished automatically. In some cases it can’t be accomplished at all. This is because the chosen plan provider “will want to see some basic engine parameters” before deciding whether or not it is prepared to offer maintenance coverage on the engines, notes Lynch. During the pre-purchase inspection conducted on the aircraft, the plan provider will require physical evidence of the condition of the engines — such as performing a spectral oil analysis, checking all of the aircraft’s logbook entries for reports of engine issues and condition, and conducting a borescope inspection of each engine to look for potential FOD damage. McManus says GE requires even more evidence of the aircraft’s past and likely future operating history before it decides whether or not it is able to

offer OnPoint coverage for the engines. The first step for GE is to determine whether the engines were previously ever covered under an hourly maintenance plan. GE then requires borescope inspections of all three engine modules (fan, compressor and hot section); no current engine-unserviceability findings in the aircraft’s maintenance records; a ground power run of the engines; an inter-stage turbine temperature margin of at least 18°C between the highpressure turbine stages and the low-pressure turbine stages; data on the engines’ past performance trends; details of where – and in what climatic environments – the engines were previously operated; and where and how the aircraft is expected to be operated in the future. Evaluating all this information, if GE then finds the engines suitable for OnPoint coverage, it will offer an individually priced plan.

When Does Adjusting Coverage Make Sense? Most of the time, customers who contract for an OEM such as Pratt & Whitney Canada to provide hourly engine maintenance plan coverage maintain the same coverage throughout the entire time they continue to own the aircraft.

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catastrophic support? It’s an end-of-life question, and the answer is different for every owner.”

Advice for Owners

PHOTO COURTESY OF P&WC

“We don’t really see customers changing levels, because our coverage is so comprehensive,” says Dobbins. “Over 20 years, programs have become more and more comprehensive. “Coverage stays the same, for the most part, through the life of the aircraft” — particularly when an hourly plan can be passed on when the aircraft is sold to a new owner, though in some cases this might require the new owner to pay a program buy-in amount up front. However, there are a couple of important exceptions to this rule of thumb. “Really the only midstream tweak” that P&WC sees, is for customers to make their coverage more comprehensive (upgrading to ESP Platinum coverage, for instance) to provide maintenance coverage for any corrosion found in their engines, and to cover the costs of line maintenance. “Everybody wants AOG, freight, engine removal and corrosion coverage,” says Dobbins. However, in some cases — particularly where owners have more than one aircraft they can use to fulfill a required mission — some customers choose to dispense with ESP coverage for “alternate lift”, otherwise known as “supplemental lift”. This coverage comes into effect 34 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

when a customer needs to lease an engine for a short term from P&WC in order to replace an engine which has been removed for repair, allowing the aircraft to keep operating. But if P&WC doesn’t have a spare engine available to lease, it will provide a reimbursement to the customer, allowing the customer to charter a suitable alternate aircraft. More generally, according to all four experts interviewed, there is one common situation in which reducing coverage levels, or dropping coverage entirely can make sense. This is when an aircraft and its engines are approaching the ends of their operating lives and a new (or an existing) owner recognizes that he or she is almost certainly going to be the aircraft’s last owner. Dobbins cites the hypothetical example of a 70-year-old owner whose aircraft is 25 years old, and the engines have always been on an OEM’s hourly maintenance plan. If the engines are, say, 4,000 hours away from their next overhaul, but the owner is only flying the aircraft for an average of 100 hours per year, Dobbins asks, “does it make sense to put 300 hours [of coverage] a year into it? “You might make a change then. Marketability is not really an issue. Would it make sense for AOG-only

McManus sees things similarly to Dobbins. “The only time you want to think hard about a program is when your engine gets very old,” he says. “The whole aircraft is worth maybe $1m, and you’re probably the last owner. “That end of life is when programs start to be worth thinking a little harder about. You can’t get cycle parts or LLPs any more. That’s about the only time we’ll turn people away [as potential customers].” “It comes back to that reputational thing,” says Ryan. “We’d rather have that heart-to-heart talk with the owner of the airplane than mislead the owner into thinking it is worth paying for several hundred hours of comprehensive engine maintenance coverage a year.” One other way in which OEMs are prepared to adjust coverage on engines installed on a used aircraft bought by a new owner is when the aircraft’s operating circumstances and mission profile are likely to change materially. For instance, says Ryan, GE is quite happy to adjust coverage for an aircraft’s engines when under its new owner it is moving from operating, say, 400 hours a year on five-hour average segments in North America to operating 150 hours a year on segments averaging 90 minutes in the Middle East. “Then you don’t need the 400 hour minimum, and we’ll adjust the hours per year down and make the associated rate adjustment. We’ll go down to 100 hours and below.”

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“We don’t really see customers changing levels, because our coverage is so comprehensive...” Delray Dobbins, P&WC

than the price of its 150-hour minimum plan, “So you might as well go to 150 hours,” Ryan adds. “Any time you are shaving off coverage, you are just cutting corners,” Lynch says. “Don’t give away engine rentals and shipping unless you are in the same city as the MRO shop. And pay attention to yearly minimums. “There is no need for a high yearly minimum [of covered operating hours] with engines that aren’t on calendar overhaul. You’ll get a bill if you don’t meet the minimum engine hours covered under the plan,” he concludes. ■ PHOTO COURTESY OF P&WC

However, because the variable unscheduled maintenance cost risks associated with such low plan levels far outweigh the plans’ fixed costs of scheduled maintenance and continuing airworthiness compliance, GE can’t charge less

More information from: • Engine Assurance Program: www.eap.aero • GE Aviation: www.geaviation.com/bga/services/onpointbizjets • Pratt & Whitney Canada: www.pwc.ca • Rolls-Royce: https://www.rolls-royce.com/ products-and-services/civil-aerospace/ aftermarket-services/business-aviation.aspx

CHRIS KJELGAARD has been an aviation journalist for 40 years, with a particular expertise on aircraft maintenance. He has served as editor of ten print and online titles and written extensively on many aspects of aviation. He also copy-edits most major documents published by a global aviation industry trade association.

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CABIN ELECTRONICS.qxp_Finance 26/01/2022 13:50 Page 1

CABIN ELECTRONICS

How to Enjoy Cabin Electronics Upgrade Success! From including the right people in the planning, to considering the different functions of your aircraft cabin, there are ways to ensure your next cabin electronics upgrade meets, and exceeds, the expectations of your passengers. Brian Wilson shares tips…

hose fortunate enough to have worked with an architect to design a custom home will understand the advantage of proper space and functionality planning. For example, you don’t place the master bedroom next to the kids’ playroom! Taking the same approach when you are planning your next major retrofit for your aircraft – and particularly the cabin electronics – can save a lot of second-guessing, and clashing of activities among your passengers. Business jets today act as an extension of the main office. But it’s important not to forget that comfort and relaxation are just as essential aboard the aircraft. When planning a major cabin electronic retrofit, it’s very important to break the cabin down into zones, or areas. While in most cases you won’t be able to close a door, or walk down the hallway to avoid noise or lighting, it is possible to design a layout to satisfy both business and pleasure needs simultaneously. 38 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Where to Begin the Planning…

The best place to start, is by having both electronic and paper copies of the interior layout prepared. Unlike a home where you can buy new furniture, or move items around to fit your needs, certification costs will mostly prohibit moving seats, divans and other monuments within an aircraft cabin. In most cases, you will be working around an existing interior layout, and considering how to optimize the way the cabin’s electronics work within that arrangement. The next step is to focus on the systems that will facilitate the needs of your passengers. These include: •

In-Flight Connectivity

•

In-Flight Entertainment (IFE)

•

Cabin Management System (CMS)

•

Lighting

•

Environmental

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In relation to these, be sure to define the profile and mission required of the aircraft, including: • • • • •

What are the specific passenger expectations (business and pleasure)? Will the airplane fly mostly domestic trips, or internationally? What is the average number of passengers flying on these trips? What is the normal/average flight duration? Will the aircraft be utilized for charter, too?

Seek input from multiple different people when planning a cabin electronics retrofit. The discussion should include the crew, maintenance and other flight department personnel, and the passengers. If the aircraft is primarily used for business, it’s imperative to have the CEO, CFO and any other key personnel involved in the decision-making. www.AVBUYER.com

Major cabin retrofits are expensive, meaning that meeting both the passengers’ expectations and staying within budget can be an arduous task.

Galley Electronic Considerations

The main galley is usually located just aft of the cockpit, and is the first zone you encounter when you walk up the airstairs. A forward galley configuration allows the flight attendant to easily support both the crew and passengers. Aft galleys are cumbersome because the flight attendant must regularly pass through the cabin, which can disturb passengers who may be trying to work or rest. Galleys can also be noisy due to expresso machines, cooking and meal preparation. For this reason, most galleys are isolated from the main cabin by a bulkhead and pocket door. When it comes to upgrading the electronics in the cabin, focus on proper lighting in both the headliner and cabinets of the galley so the flight

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attendant can be as efficient and quiet as possible with their activities. The main galley switch panel should also be configured to control all the cabin lighting and environmental systems.

Forward Cabin Electronic Considerations

Aft of the galley is the forward cabin, which is normally the work zone and the area in which the CEO or other VIP sits. Typically, the VIP seat is the first forward-facing seat on the right-hand side. At one time, the VIP control panel was a colossal array of switches, but today new touchscreen technology has replaced buttons and switches. It’s very important to ensure the CEO/VIP has the master control for both environmental, audio, and video within this zone, and today’s connectivity systems can be configured to make sure the CEO/VIP is given priority bandwidth allocation. Since this is the cabin zone for conducting business, focus your cabin electronics refit on creating a complete business suite, including: • USB and wireless charging stations • Power for laptops • HD monitor • Wireless printer • HDMI and Ethernet ports. Ensure the Wi-Fi router is properly placed in the aircraft. Pocket doors and close-out panels can impact the strength of the signal, creating problems if this is not well planned.

Aft Cabin Electronic Considerations

Next, of course, is the aft cabin. Many times, there is a couch and divan in this zone which is used 40 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

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more for entertainment and relaxation. On larger jets there is usually a pocket door separating the forward and aft cabin. Regardless, proper planning must be undertaken to reduce interference between the two zones. The couch doubles as a belted seat configuration for three passengers, and is also a place to relax and spread your legs out. Here, it will be important to position the monitor and speakers so they transmit noise away from the forward cabin. If possible, have a monitor that pops out of the divan and can swivel fore and aft. And have a few high-end wireless headsets available in the divan, or install a Bluetooth device so passengers can listen to audio through their ear buds. The standard chargers and interface units listed in the forward cabin should be conveniently located in this zone too. Moreover, the two zones should have separate lighting and controllers. Since the aft cabin tends to be focused more on relaxation, consider installing lower intensity lighting, or even mood lights. The divan and end tables at the couch can incorporate small, focused reading lights. Rounding out the cabin will depend on the size of the aircraft: The Large Cabin/Ultra-Long-Range Jet and Businessliner class might have another room designed specifically for rest and relaxation. This could include either a small bed, another couch, or two large, facing chairs that reconfigure into a fully-flat bed. For the rest of the fleet, the very rear of the accessible cabin area is usually an aft galley,

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lavatory, closet, and storage area. The larger aircraft can even support a stand-up shower. The focus in this zone should be proper lighting, temperature control, and comfort.

Meeting Passenger Expectations

Personal Electronic Devices (PEDs) are part of our everyday lives. Many of your passengers will have a smartphone, a tablet, and a laptop. As far as they are concerned, the aircraft is no different than their homes and place of work: They will expect chargers, mounts, and video and audio interface capabilities. No doubt the passengers will want to interface the content they have stored on their devices with the InFlight Entertainment and CMS systems. Trying to interface new off-the-shelf technologies with older onboard electronics can require a new or partial upgrade, however – or at least a software revision. Both require weeks, if not months, to design and execute. One great place to start when trying to meet your passengers’ expectations is to ask them! While it may sound like a no-brainer, in my career I’ve found myself in many meetings with a lot of smart people trying to determine what their passengers need and want. Though CEOs and VIPs are very busy people, they

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will be the first to let you know if something doesn’t meet their expectations. Major OEMs and MROs have the technology to create a virtual walk-through of the cabin and its features. If one positive thing has arisen since the pandemic, it’s the explosion of video calls and meetings. Whether it’s a CEO or a wealthy individual, surely, they can find the time to ensure their needs will be met aboard the company airplane. A cabin electronics retrofit will cost a lot of money, and require substantial downtime for the aircraft. Planning should ultimately commence at least a year before the scheduled downtime, which is usually associated with a major maintenance inspection or overhaul. Budgets need to be prepared, and quotes should be solicited. MRO selection will take a minimum of 2-3 months, while lead times for equipment and software modifications can take 3-6 months. Cabin retrofits usually occur every 6-7 years, or when an aircraft changes hands. To avoid a stressful outcome when the time comes around for yours: i) invite everyone to the party; ii) plan your strategy thoroughly; iii) execute the plan. It’s the only way for your next cabin electronics upgrade to truly meet your passengers’ expectations. ■

BRIAN WILSON is the Director, Key Accounts at Gogo Business Aviation, an industry-leading provider of in-flight connectivity and entertainment solutions. Prior to Gogo, he sat on numerous Dealer Advisory Boards along with being a member of the AEA Board of Directors.

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AVIONICS FLIP.qxp_Finance 26/01/2022 13:58 Page 1

AVIONICS

Flight Deck Upgrade: What Drives Your Options? Are you considering a flight panel upgrade during an upcoming MRO shop visit? You’ll need to know your options, and the factors shaping your ultimate upgrade. Ken Elliott explores these, providing different options and considerations to help your planning process…

ny major business aircraft cockpit upgrade or retrofit is a big deal, and for many owners who are used to their legacy avionics, it can be an overwhelming experience. To that end we begin this article with a true story… Back in the 1990s, the Ohio-based avionics shop I worked at welcomed a Citation II/SP jet into our hangar all the way from the Philippines for a significant flight deck upgrade. The pilot had saved up all his avionics faults over a period of several years, and arrived with one operational Nav & Comm system. In fact, he strapped a Garmin GPS to the glareshield of this eight-passenger corporate jet, and that was how he navigated his way to Columbus Ohio International Airport, via 21 hours of flying time which had required lots of oceanic flying en route from Manila. After several weeks, a complete flight deck Electronic Flight Instrument System (EFIS) upgrade, and $100,000 worth of repairs to the existing avionics, the aircraft was towed onto the ramp and underwent several flight tests. The pilot had ample training on the new flight deck (which included a new flight management system (FMS)), and demonstrated proficiency. 46 Vol 26 Issue 2 2022 AVBUYER MAGAZINE

Very late on the Friday evening, the aircraft was fueled and prepared for the first leg of its long return flight to the Far East. The pilot emerged to board the aircraft with three bags. The first was his personal luggage, the second his flight bag, and the third was a mystery. “Sir, is there anything else you need from us, and would you like us to review the flight deck one more time before you depart,” we asked. “Oh no – that will not be necessary,” he replied, unzipping the mystery bag. Pulling out his trusted Garmin GPS, he proceeded to strap it back on the glareshield. As we stood flabbergasted, he lightly tapped the GPS as if it were his favorite pet. “This GPS got me here, and this GPS will take me home,” he proudly proclaimed. “This, I can trust.” Apart from avoiding potential sticker shock, flight departments and owners can be wary of major flight deck changes, favoring ‘the familiar’. MROs, OEMs, and avionic shops should spend time ensuring buyers that they will support new products, providing adequate familiarity training. They should www.AVBUYER.com

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spend extra time up-front, showing intuitive features, allowing for more ‘out the window’ flying.

Key Reasons for a Flight Panel Upgrade

The most important reason for any cockpit upgrade is safety. Many flight departments have justified the business case for an avionics upgrade or retrofit using valid safety-related aspects. The second most significant reason is a change in the operation of the aircraft, followed by obsolescence, and then mandates. Taking each governing reason outlined in Figure 1 (right), we will explore how each influences the flight panel upgrade decision process and include some important considerations.

FIGURE 1: Governing Reasons of Flight Deck Upgrade Options 1) 2) 3) 4) 5) 6) 7) 8)

Safety Operational change(s) Obsolescence Mandates Reducing operating costs Resale Connectivity Modernization

Many cockpit features are designed or installed with safety in mind. Here are just three of them…

Upgrading standby instruments is a common and wise move. Having digital altitude, airspeed, turn and bank, attitude, heading, vertical speed and navigation data in one instrument saves on power and panel space.

Standby Instruments: Designed to back up primary information, crucially standby instruments are totally independent of standard equipment, including their power source.

Redundancy: Achieved by duplication (and for some aircraft triplication) of primary systems, such as communication, navigation and surveillance (CNS) systems. Triplication occurs with flight management and reference gyros.

1) Safety

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2) Operational Changes FIGURE 2: Some avionic upgrades are specifically safety related, for example: • • • •

406 MHz Emergency Locator Transmitter (ELT). Flight Tracking System – for global flight tracking of real-time aircraft position. Digital Standby Instruments – to replace mechanical 3-6 pack of analog devices. Quick Access Recording (with real-time downloads) – for engine and other system performance monitoring.

* Certain features of other systems mentioned in this article will have distinct safety advantages

In Large Jets, it is common to upgrade with a third Flight Management System (FMS) that’s independently referenced and used as a third position source for each of the two primary systems. Power Management: Often overlooked on pre-owned aircraft upgrades, both pilots should have equal control, and be able to access the different busses of electrical distribution, from their seats. Especially, there should be an ability to isolate the cabin from power. While aircraft are engineered with bus priority and pilot control in mind, issues may occur with aftermarket upgrades. Ask your avionics facility to check the functionality of power bussing, with safety in mind. This extends to bus loading and electrical load analysis, where each aircraft should have a current document that reflects all removed and installed equipment over the aircraft’s life. It is not uncommon for the electrical loads of an upgrade to be amending an out-of-date load analysis.

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Operational changes refer to moving the operation of an aircraft from one region to another, as often occurs after the transfer of ownership. Especially in today’s tight market aircraft buyers may need to compromise on a purchase and then equip to meet their individual needs, rather than wait to find the ideal aircraft. Moreover, the buyer of a pre-owned jet may have different standards of comfort, and while the equipage of an aircraft may suit one owner, it may be insufficient for another. While the aircraft meets the new owner’s minimum equipage requirements, they may feel more comfortable, and have the budget, to upgrade to newer systems. These upgrades do not include ‘required equipage’ (covered later under ‘Mandates’). Perhaps the aircraft’s new owner plans to change the jet’s operations from domestic US flying, to European domestic operations. There is a wealth of information for equipage requirements for different regions available to NBAA members at www.nbaa.org. Meanwhile EASA published a December 2021 version of the 2,000-plus page ‘Easy Access Rules for Air Operations’ – Regulation (EU) No 965/2012, which can be referenced for compliance if your aircraft is based in Europe. Moreover, owners/operators can expect to have incountry requirements, even down to placards, which must be visible in the cockpit or cabin. Requirements are always changing, especially in Europe. Compliance dates often move, or apply differently across the region. Do not forget that even though you may be basing an aircraft in Europe, having purchased it from a US-based owner, and plan to operate domestically, you still need to get the airplane there, and certain oceanic requirements must be met.

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AVIONICS FLIP.qxp_Finance 26/01/2022 15:50 Page 4

AVIONICS FIGURE 3: Examples for Improved Operation Equipage •

Flight Deck Displays: Enabling intuitive and user-friendly operations.

•

Advanced Radar: Providing more than weather protection, such as

•

Sirius XM: Virtual real-time digital weather.

•

• • •

•

Full Avionic Suites: Enabling a host of features to improve operations.

turbulence and lightning.

Synthetic Vision System (SVS): For improved situational awareness. Enhanced Flight Vision System (EFVS): For low vision operations.

Electronic Flight Bags (EFBs): For digital flight support of maps, charts

and more. The same EFB features may be available, as an option, within some cockpit display upgrades.

Satcom (or added Satcom) Features: Necessary for some operation

mandates, but a general advantage because of their global reach and

digital capabilities.

FIGURE 4: Mandates Come in Two Flavors… 1. Equipage required to operate in regions that affect most flyers. Business aircraft examples include… • • • • • •

Emergency Locator Transmitters with 406 MHz capability (406 ELT) Traffic Avoidance & Warning System (TAWS) Reduced Vertical Separation Minimum (RVSM) VHF 8.33KHz Communications Traffic Awareness System/Traffic Collision Avoidance Systems (TAS/TCAS) Automatic Dependent Surveillance Broadcast (ADS-B) Out, including upgraded transponder systems

Note - with ADS-B Out there are 2 versions, v1 and v2. While v2 is good anywhere, if you still have v1 and are relocating the aircraft, you may well need to upgrade.

2. Equipage required by only those who need to operate on specific routes or fly specific procedures where, in most cases, other less efficient options are available. Examples being. • • • • • •

Performance Based Navigation (PBN) as RNP, RNP-AR, B-RNAV, RNAV-1, RNAV-2, LP, LPV, APV, GBAS and others TCAS Version 7.1 CPDLC – DCL CPDLC – VDL Mode 2 CPDLC- FANS 1/A (+) Data recording (Updated voice recorder)

General mandates have thinned in most regions recently, and remaining ADS-B Out region-specific due dates will also expire soon. Nevertheless, some future potential mandates that could involve cockpit software and/or hardware upgrades include: • Domestic Enroute Data Comm • ADS-B In (aircraft are currently required to have ADS-B Out) • Advanced PBN, using RNP • Trajectory Based Operations, including evolution to Dynamic • Low Visibility Operations with: o Combined Vision (EVS and SVS) o Synthetic Vision Guidance o Surface Movement • Advanced DME (as a backup for GPS shut down) • Space-Based ADS-B for Oceanic and Remote FANS • Technological improvements to support environmental performance • Active Surveillance Collision Avoidance for 3nm en route separation, and for parallel runways operations. • Technologies and improvements to support Supersonic, eVTOL and UAS requirements.

3) Obsolescence

Recently, the most significant obsolescence issue has centered on cockpit displays, in which Cathode Ray Tube (CRT)-based monitors can no longer be supported. An example is the Honeywell DU 875/885 replacement for the DU 870. Some third-parties are offering support for the DU870/880 and other derivatives through 2025 – but either way, aircraft that are still equipped with any CRT-based equipment should be replacing them with available ‘plug n play’, flat panel, Liquid Crystal Display (LCD) or newer, technology. For obsolescence in general, aircraft operators should remain current with aircraft and equipment manufacturer notices, alerts and bulletins. These are the mechanisms for communicating support issues, including an inability to supply replacement parts and sub-assemblies. Typically, sufficient advance notice is provided, as with the Honeywell displays that have been a future obsolescence notice for many years now.

4) Mandates

At times, mandated requirements have been the more significant reason for cockpit upgrades, and as with any upgrade, it is sometimes necessary to change major components or even systems to access and enable necessary features. Also check options available during an upgrade. In some cases, it is the option that provides the feature(s) that meets the mandate.

5) Reducing Operating Costs

Many cockpit upgrades are promoted as providing a reduction in operating costs. Depending upon how you use the product, that may indeed be the case. For longer transcontinental flights fuel-saving routes are a cost benefit, resulting in immense popularity for upgrades enabling these. Any equipage that supports the trajectory of an aircraft in favored high-altitude transcontinental/Oceanic routes, including FANS 1/A (+), ADS-C, Dual HF, Ku/Ka-band Satcom, and Data Recording, represents a saving in operating costs. Depending upon where and how you operate, low-visibility solutions can significantly save operating costs, too. If adequate Runway Visual Range (RVR) is a constant issue for your take-off and landing, upgrading with EFVS should be a bonanza. Just make sure you consider the flight department, aircraft and airport runway approvals, as well as equipage, for any low-vision operations.

6) Resale

For resale, most aircraft are tidied up and checked for mandate compliance. The tidying is usually a focus on the cabin appearance and exterior paint, and it is most likely that the mandate compliance

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will be current. In some cases, however, the buyer may request an upgrade as a condition of sale, but with a tight market over the next few years there may not be so much of a bargaining opportunity. Savvy sellers will ensure their aircraft for sale has differentiators, helping to sway an undecided buyer toward their aircraft. If an aircraft is compliant (but not state-of-the-art) in its equipage, the seller may lose out to an aircraft that is, even though the better-equipped aircraft’s price may be higher. Of course, not all aircraft are placed on the resale market. Some are traded against new, or for a different pre-owned model. The better-equipped aircraft garners the higher tradein value. From the brokers’ perspective, apart from the popularity value of different models, based on demand, it is much easier to sell a trade-in aircraft that’s likely to accumulate a sizable sum of flight hours before the next significant upgrade becomes necessary. It should be noted that when undergoing a prepurchase inspection, there will be repairs and routine inspections that may reveal further requirements. These could involve significant software or hardware changes. With mandates or factory-recommended modifications it’s common to have nuances that only apply to specific serial numbers or models of aircraft. These arise from service bulletins, STCs, or other procedural documents that call out applicability by part number. Make sure all your equipment part numbers have been verified as current and applicable to any work requirements that result from inspections. The ‘inspection’ may be a logbook review verifying the aircraft and its equipment is up to date. There have been occurrences where aircraft have delivered as non-complaint because of an oversight, or, worse, an incorrect assumption of part number, modification status, or SW level for different equipment. This, in turn, can lead to an expensive post-delivery effort in terms of access, wiring, factory upgrade of equipment, and certification.

7) Connectivity

Both voice and data communications are forms of connectivity. Internet is another. All three have uses in the cockpit, as well as in the cabin. As cockpits move away from voice and obtain clearances digitally, upgrades such as digital departure clearance and, in the future, digital en route clearance, will become popular with business aviation. The two other significant upgrades that provide the most connectivity benefits are Satcom and Broadband Internet. Many aircraft already have some form of L-band, Ku-, or Ka-band. For them, the upgrades of interest will offer greater bandwidth and more features, while operating at higher speeds. GoGo and Smartsky are now offering incentives to install, or upgrade their versions of Air-to-Ground (ATG) internet services, especially for equipment that is 5Gready. www.AVBUYER.com

FIGURE 5: Examples of Cockpit-Related Upgrades Associated with Resale •

TCAS 7.1, where aircraft previously did not need 7.1 to operate, but

•

LCD displays – buyers do not want the burden of dealing with

buyers require it.

obsolescence or support issues.

•

Any of the mandate equipage required for different operations.

(Could be anything from WAAS-LPV to CPDLC, VDL or FANS.)

•

Cockpit DC power, USB and other ports, requested by the buyer subject

to a completed pre-purchase inspection.

FIGURE 6: Important Upgrade Considerations Over-and-Above the Eight Governing Reasons Within this Article •

Reduction of Workload

•

Cost of Repairing Legacy Equipment vs. New

• • • • • •

Redundancy of Displayed Data Improved Aircraft Access

An Extension of the Life of a Legacy Aircraft

Reflection of the Update in both VREF and Aircraft Bluebook Greater Situational Awareness

More Intuitive Human Factors in the Cockpit

“The most important reason for any cockpit upgrade is safety...” A feature of CPDLC FANS connectivity that should not be overlooked in pricing, is the requirement to record the digital ‘conversations’ when operating under FANS, and where a voice recorder is required. Traditional voice recorders are not capable of recording digital data, and will need to be modified or replaced, eventually.

8) Modernization

A catch-all for many upgrades, ‘modernization’ refers to a general approach, in this instance, to bring the aircraft upto-date. To capture the most benefits of modernization during an MRO or avionics shop visit, consider the factory or third-party upgrade of the primary avionic suite, such as Collins Aerospace’s ProLine IV to ProLine 21; ProLine 21 to ProLine Fusion; or aircraft type-specific Honeywell Primus Elite offerings. Integrated Flight Deck upgrades are also available from Garmin with its G3000 and G5000, and Universal Avionics with its Insight. Major manufacturers have partnered with MROs and avionics shops to develop aircraft specific STCs that permit an upgrade of major avionic systems to legacy

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platforms. In some cases, there are multiple options and in others only one. When considering modernization, take advantage of the recent advancements in Head-Up Displays (HUDs) and Enhanced Flight Vision Systems (EFVS), where developments have led to smaller HUDs and lower-cost multispectral cameras. Garmin, Collins Aerospace and Universal Avionics (Elbit) are all offering aftermarket and new aircraft solutions. Also, Honeywell offers interesting Synthetic Vision Guidance System (SVGS) and runway awareness solutions.

In Summary…

For each aircraft operator there is an individual set of considerations and reasons to upgrade their cockpit. Apart from minor changes, it is sensible to consult with others regarding improvements to avionic systems. If you are not dealing directly with the aircraft manufacturer, it makes sense to work with a consultant aircraft specialist who understands the aircraft you need to upgrade. This will be in addition to the MRO or avionics shop who will price, and complete the work. Taking a business perspective for an upgrade is also sensible. The relationship between upgrade cost and

aircraft value is of importance, as well as ROI over time. Other factors, such as personal value to the operator, preparing an aircraft for resale, and avoiding potential obsolescence, are hard to quantify but relevant. Here, we have reviewed eight reasons that govern flight deck upgrades, and there may be others. The best strategy is to stand back, consult with experts, and complete your own flight department due diligence. Always obtain a second opinion or proposal, and do not be swayed by appearances. Consider product support and look for issues, such as FAA Airworthiness Directives, Service Bulletins and other data that may indicate product difficulties in the field. Safety mostly governs an upgrade, and this area cannot be compromised. Beyond safety, however, look at the broader values of the upgrade to your flight department. It may be a very different set of values than for another operator with the same aircraft model, flying to the same places as you. Ensure you set out your reasons, budget, company vision, and specific operation requirements to reach the value points necessary for smart flight deck upgrade decisions. ■

KEN ELLIOTT has 52 years of aviation experience focused on avionics, in General and Business Aviation.

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

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COURTESY OF DUNCAN AVIATION

PAINT REFURBISHMENT

Tips for Your Next Aircraft Paint Project When your next aircraft paint refurbishment is approaching, what are some of the important factors to consider? Rebecca Applegarth asks Flying Colours Corp’s Kevin Kliethermes, and Duncan Aviation’s Jeff Beaudette.

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effects to be realized. “The more complex a design, the longer the application will take, and the longer the masking times, painting times, and drying times will be,” he explains. Thus, for those with the budget for specialist and/or complex paint schemes, additional downtime should be planned into the project. “We’ve had clients with very intricate logos, or they’ve wanted their signature on the aircraft,” Kliethermes highlights. “All of this is incorporated in the design process, but will add time and, ultimately, cost.” And on the subject of price, it’s important to establish ahead of time exactly what is included in your paint refurbishment, or not. This can vary, according to Beaudette. “Duncan Aviation includes everything from the noseboot being replaced, to painting the gear, the nose wheel, the inside of the baggage door frames, the MED entry door openings, as well as replacing the step tread,” he explains. But it is worth clarifying this with the paint shop before the project begins, ensuring there will be no nasty surprises at the end of the project, when you thought you were paying for something that wasn’t included in the package.

Forward-Planning For Your Paint Refurb The time it takes to complete an aircraft repaint will generally depend on the type of

 COURTESY OF FLYING COLOURS CORP

ust like any element of aircraft Maintenance, Repair and Overhaul (MRO), a paint refurbishment will need some detailed planning, with several specific considerations for the aircraft owner to make. For example, when it comes to your budget, Kevin Kliethermes, Director of Sales for Flying Colours Corp., says the type of paint, the complexity of the pattern, and the age of the fuselage (specifically, what lies beneath the existing paint) will affect the cost. “When a pre-owned aircraft is stripped, that’s when any potential wear and tear, or corrosion, will become apparent,” he notes. To ensure a flawless application of the fresh paint, this will need treating before the new paint is applied. Duncan Aviation customers often ask for paint schemes to match their business, family crest, or logo colors, according to Jeff Beaudette, Senior Completions & Modifications Sales Rep. “As long as the customer is able to offer a sample color, it can be matched.” Nevertheless, design will have an impact on price, notes Kliethermes, who says external paintwork designs are normally provided by specialists in the field; specialists who understand the complexities and visual aspects needed for stripes, swirls or paint

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aircraft, the complexity of the paint work design and the types of paint being used. All aircraft will need to be properly prepared for paint application, and then the paint application itself requires several coats. Kleithermes estimates the time for a paint application will normally be around two weeks for a Light Jet, whereas a Large Jet (such as a Bombardier Global model) could take up to four weeks. Beaudette agrees, adding that the largest Ultra-Long-Range business jets would take an estimated five-to-six weeks, in the case of the more extravagant paint schemes. In addition to the timeframe of the project itself, it’s advisable to book a slot early. “Things have changed,” Beaudette says. “At Duncan Aviation, it used to be a month or two ahead that you could schedule a repaint – now you’re looking at around three or four months. “With fewer available openings, customers are needing to plan further in advance,” he warns, adding that Duncan Aviation manages around 250 paint refurbishments per year, across its three painting facilities.

Understanding Paints and Processes

along with special effect paints that includes mica, pearl, or other minerals. “Flying Colours offers clients a number of paint brands, but some clients do specify the brand of paint,” Kleithermes notes. “I would estimate that 30% prefer a certain brand.” Chromalusion paint – paint that changes colour, depending on your viewing point – is becoming popular, either for the whole aircraft or for the stripes and patterns, and Kliethermes sees a rise in requests for darker base colours – some with, and some without, stripes. “Integrated patterns on certain parts of the aircraft, like engine nacelles and vertical stabilizers, are also on the rise as clients look to stamp an identity on the aircraft whether the jet is being used for personal or corporate use,” he says. “It is an extension of the trend we see in the cabin designs for owners to include their personality in the design. The use of metallic paint is always a trend, and is in-demand constantly for base and accent colours. It can look striking, when done well.” Duncan Aviation uses conventional and high solids paints and primers, since these seem to adhere the best, and hold longevity for the aircraft. “We measure mil thickness, and try to work within the perameters of the manufacturer’s recommended advisories within

 COURTESY OF FLYING COLOURS CORP

Along with the standard white paint often used on aircraft fuselages, there are many special effects available to owners who turn to Flying Colours Corp. for their paint refurbishment, and the full spectrum of colours can be used,

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AVBUYER.com REBECCA APPLEGARTH has been brought up around Aviation for as long as she can remember. She aspires to develop her passion for writing and flying as an Aviation Journalist.

the maintenance manuals,” Beaudette explains. Some rudders can only be certain mil thicknesses, “so we do measure those precisely,” Beaudette assures, adding that the company also takes its paint down to the original composites, aluminum, and primers, building the aircraft back up. “We do this for quality and durability reassurance, because if the paint layer is too thick, the chances of the paint cracking are higher,” he explains.

In Summary

It appears the options for exterior paint on today’s business jets are almost as dizzying as the interior refurbishment choices available. Those choices are likely to be limited only by budget, and potentially charter use (for owners who are contemplating making their aircraft available for hire when not flying them. Nevertheless, a familiar message is coming across loud-and-clear. This area of the industry sees paint shops increasingly busy – just like so many other wings of the MRO centers, with lead times growing before a slot can be scheduled. Be sure to factor the extra time into your paint refurbishment planning.

“...the time for a paint application will normally be around two weeks for a Light Jet, whereas a Large Jet (such as a Bombardier Global model) could take up to four weeks.”

COURTESY OF FLYING COLOURS CORP

More information from www.duncanaviation.aero and www.flyingcolourscorp.com ■

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MRO SUPPORT

Ramping up MRO Support: Dassault’s Story As Dassault Aviation prepares to deliver its latest business jet, the Falcon 6X, the manufacturer is looking to the future of MRO, with a range of efforts underway in maintenance, training, spare parts provision and beyond. Gerrard Cowan spoke with Dassault’s Geoff Chick to find out more…

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GEOFF CHICK, SR. VP, WORLDWIDE SERVICE NETWORK, DASSAULT

assault Aviation is aiming for certification of the ultra-widebody jet by the end of this year, and three pre-production aircraft are currently flying, with the flight test organization having completed more than 150 flights comprising about 500 hours. Moves are also in progress to prepare for the MRO support of this new jet. The aircraft recently operated for several days from Le Bourget to evaluate performance under typical user conditions; this was conducted by flight crews from Dassault’s Operational Pilot Group, which supports flight departments and other customers. In Q1 2022, the fourth 6X aircraft – equipped with a full interior – will make an around-the-world tour, aimed at evaluating the platform in real operations and providing access to MRO facilities in the Dassault global network.

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“We have been preparing for years for service entry, and these are the final steps,” says Geoff Chick, Dassault’s Senior Vice President, Worldwide Service Network. The French airframer is focusing its preparations on different levels. It has been developing technical training, Chick says, embedding its technicians with the Falcon 6X flight team in Istres, France. It has also serviced the 6X at Dassault Falcon Service (DFS) facilities at Le Bourget “just as any certified aircraft,” he said, including fuelling it with sustainable aviation fuel. Dassault has coordinated the tooling and ground support requirements for the aircraft, Chick adds, while it is defining support requirements in areas such as Aircraft on Ground (AOG) services and line and base maintenance, with a focus on meeting requirements by region.

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“We’re also already distributing spare parts around our network to support the 6X,” Chick highlights. Service technicians from TAG Maintenance Services and Dassault Falcon Service have now worked with the new aircraft in the Istres flight test center, with the aim of communicating the lessons learned with their own MRO centers, and beyond.

Existing Aircraft Support

While the Falcon 6X will be the latest entrant to a successful line of business jets, Dassault is also looking to further optimize the support it provides to its existing aircraft, with more than 2,000 Falcon jets in use around the world. “You should expect to look to Dassault Aviation for upgrades that keep your aircraft up to date and able to operate in a modern air traffic control system,” Chick explains. This means providing flight deck upgrades along with new capabilities for existing cabins, such as satellite communications (satcom) and in-flight entertainment systems. “We constantly take fleet age into consideration as we develop programs to keep each model in optimal

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condition,” Chick says. “That’s very important when you consider that older Falcons – such as early Falcon 900s, first delivered in 1984 – still represent incredible efficiency and capability within their segments.”

MRO Network Development

Dassault’s main focus is to “respond to the specific needs of our growing and increasingly globalized fleet”, Chick says. In 2019, it took a number of steps to expand its service capacity, aiming to “stay ahead of fleet growth and to fill in the map with factory service locations”. This expansion included acquiring ExecuJet MRO Services, TAG Maintenance Services and the Business Aviation operations of RUAG in Switzerland. These acquisitions mean now has 40 factory service locations and more than 60 service center locations when authorized facilities are included, Chick notes. “We’re sharing Falcon expertise across this network, allowing us, for example, to start offering major Ccheck inspections in Kuala Lumpur, Perth, Sydney and Dubai for the first time,” he highlights. “Customers are

“...expansion included acquiring ExecuJet MRO Services, TAG Maintenance Services and the Business Aviation operations of RUAG in Switzerland.”

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delighted to have this level of service within their regions.” The focus is now on organic growth, “investing in the service network we have to build modern new facilities and upgrade capabilities”. For example, Dassault is building a new and larger replacement facility in Kuala Lumpur, Malaysia, to provide more capacity and expertise for current and new aircraft. This includes the Falcon 6X and the under-development Falcon 10X. Beyond this, it is building a new facility in Dubai and expanding its operation in Reno, Nevada in the US. According to Chick, customers appreciate the company’s new, centralized sales and planning team for facilities in Europe, the Middle East and Asia. “This ‘single front door’ approach to scheduling service makes life easier and more efficient for our customers,” Chick adds. This is part of a second phase of Dassault’s MRO expansion, following the acquisitions. The aim is to make its global network more integrated, with heavy maintenance expertise shared around the

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world. The company’s MRO ‘GoTeams’ are available in more places, providing a higher level of service and more flexibility. For example, ExecuJet MRO Services Malaysia conducted its first Falcon Ccheck inspection – for a Falcon 2000LXS – in the first half of 2021. This effort involved experts from DFS in France, while TAG Maintenance Services in Geneva sent two technicians to assist. A DFS structural engineer in India also provided advice for the effort. As it looks to the future of MRO, Dassault will continue to support operators of its older aircraft, Chick stresses. He points to the Falcon 7X, early versions of which are now 15 years old. The company is “preparing options for their operators as they start thinking about their major 2C-check which will start to become due in 2023”, he concludes. “We stay ahead of the planning curve, so we are ready to support Falcons new and old.” More information from www.dassaultfalcon.com ■

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AvBuyer Magazine February 2022

Articles inside

How to Measure BizAv’s Key Performance Indicators

Five Tips for Hiring Great Contract Pilots

An Outlook for Avionics in 2022

Aircraft Buyer Questions, Part 1: Trip & Mission Profile

Bombardier: BizAv Aftermarket Support Insight

Interview with Tyler Bowron, Hatt & Associates

Grant Cardone: My Experience of Private Jets

Planning to Charter Your Jet? Assess the Market