5 FC Rolls Royce July.qxp_FC December 06 17/06/2020 11:38 Page 2
Volume 24 Issue 7 2020
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ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
THIS MONTH Jets Comparison: Legacy 650E vs G280 vs Challenger 350 Importing Jets: Should you Leverage Offshore Registries? Engine Special Issue See pages 15, 104 & 105 for further details
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Editor Welcome.qxp_JMesingerNov06 16/06/2020 16:27 Page 1
Guest Editor’s VIEWPOINT Joe Moeggenberg
COVID-19 and the Impact on the Business Aviation Industry he aviation industry, and the world for that matter, have truly entered unprecedented times. Over the last few months, we have watched normal life come to a halt across the planet, and Business Aviation has not been immune. The rapid draw-down of flight activity by airlines and Business Aviation operators has been swift and dramatic. We came into 2020 with indications of another strong year for Business Aviation. Our forecasting data was showing growth for the first six months of the year. Then came COVID-19 – a relatively unknown virus. Aviation proved to be a big factor to its spread. In the blink of an eye, our industry was shuttered as operators ceased flights due to a lack of demand. But now summer is here, and while no one has been immune from the impact of COVID-19 (especially aviation), our industry is finally clearing for take-off. Before COVID-19, the worst month for North American flight activity in the ARGUS TRAQPak database was February 2009, which was the bottom month for the Great Recession. Unfortunately, March, April, and May 2020 have all seen worse traffic numbers than February 2009, and their annual drops were 31%, 71% and 49% respectively. The numbers in Europe haven’t been much better as March, April and May 2020 have recorded yearly drops of 31%, 71% and 62% in that order. While that has painted a dismal picture of where we have been, May 2020 just recorded an 84% increase in activity from April in North America, which means we have already made up one-third of our losses from COVID-19, and June is looking just as strong.
T
Sunnier Skies Ahead? For an industry that is used to responding to flight requests very quickly, Business Aviation’s agility will pay off as companies and individuals look to get moving again on a moment’s notice. Additionally, as social distancing continues to remain in effect, people can choose to fly privately, instead of boarding a commercial aircraft with passengers that they do not know. As states have already begun opening in the US we have seen activity almost double from our April lows and the current trends show us reaching 73% of normal in June, and 83% of normal in July and August. If the August forecast holds then we will see approximately 225,000 Business Aviation flights in North America for the month, off from the 2019 monthly average of 260,000 but representing a 300% increase from our April low of 74,771 flights.
4 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
How Will a Recession Impact the Recovery? Since we are most likely entering some form of a global recession, bets are off on exactly what our recovery will look like. We do know what a recession looks like for Business Aviation and it is heavily tied to the financial markets. As things begin to settle down, we will gain more clarity on what our industry will look like in the coming months. However, if the short-term trends are any indication, we will probably return to 15-20% of normal in July and August with activity showing a closer correlation to the ease of quarantine and ‘stay at home’ orders. That should change as we enter late summer and early fall with a better understanding of the financial impact, and this is where we can expect flight activity to become more sensitive to what is happening on Wall Street. If the financial damage isn’t too bad, then our industry should be able to make up the remaining losses over the next 12-18 months. In any event, we live in a global, connected world and Business Aviation will be essential to our recovery. As we face down this new, unforeseen challenge, our industry will rise to the occasion and will play a key role in the recovery. More information from www.argus.aero
❙
Joe Moeggenberg is the founder and president of ARGUS International, Inc. Having over 40 years of experience in the aviation industry, he is a commercially-rated pilot with over 4,000 hours of flight experience, was formerly the president & CEO of Executive Jet Management, and is also the former president of NetJets.
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Contents Layout MAY20.qxp 17/06/2020 11:14 Page 1
4
2020
16
Contents
Vol.24 Issue 7
40 44 50 54 58 62 66 74 80 82
Guest Editor
Joe Moeggenberg, ARGUS
Market Indicators
Trends and observations from the leading analysts…
EDITORIAL Commissioning Editor Matthew Harris +44 (0)20 8939 7722 editorial@avbuyer.com
Market Insights
Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com
Buying & Selling
Consulting Editor Sean O’Farrell +44 (0)20 8255 4000 sean@avbuyer.com
Used Aircraft Sales Market Update How to Prepare a Helicopter for Resale
Ownership
Importing Jets: Should you Leverage Offshore Registries? An Overview of the GAO Report on the FAA
Finance
How to Evaluate a Business Aircraft Lease Solution Financing an Aircraft? Did You Check the Small Print?
Jet Comparision
Embraer Legacy 650E vs Gulfstream G280 vs Bombardier CL350
Aircraft Price Guide
Entry Level & Light Jet Aircraft Values
Flight Department Management
Airline Redundancies: An Answer to BizAv Pilot Shortages? Flight Departments: Why go Digital With Your Ops Manuals?
86
Avionics Fly-by-Wire for BizJets: What’s the Status?
90
Connectivity
98
Engines How is BizJet Engine Maintenance Evolving?
103
Time for an Overhaul: What are Your Options?
106
The Advantages of Engine Maintenance Programs
110
Which Engine Maintenance Program: OEM or Third-Party?
The Best Way to Upgrade Your Cabin Electronics (Pt 1)
116
How to Prepare for an Upcoming Engine Overhaul
120
Engine Update: What are the Latest OEM Developments? Community News
126
OEM News and Industry Appointments
129 135 141 145 146
Products & Services Showcases Marketplace Advertisers Index Aircraft for Sale Index
Next Month
• What Your Charter Money Buys Today • Popular Myths in Buying & Selling Aircraft • Five Top Cabin Control Systems for Retrofit 14 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
ADVERTISING Steve Champness - Publisher Americas 770 769 6872 Steve@avbuyer.com Lee McLoughlin - Account Director US Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 lee@avbuyer.com Matt Chappell - Account Manager US & Canada Aircraft & Services Sales Freephone from USA: +1- 855 425 7638 MattC@avbuyer.com Lise Margin - Account Manager US Aircraft Sales +1- 703 818 1024 lise@avbuyer.com Maria Brabec - Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com UK Head Office +44 (0)208 549 9508 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0)20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 sue@avbuyer.com AVBUYER.COM Jayne Jackson jayne@avbuyer.com Emma Davey emma@avbuyer.com MANAGING DIRECTOR John Brennan +44 (0)20 8255 4229 john@avbuyer.com USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE AvBuyer House, 34A High Street, Thames Ditton, Surrey KT7 0RY, UK +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 PRINTED BY Fry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055 www.AVBUYER.com
Rolls Royce single page July.qxp_Empyrean 17/06/2020 10:10 Page 1
Sponsored Column
First immersive virtual reality training for Business Aviation customers launched Even during the COVID-19 pandemic, we continue to ensure world-class support for our global customer base. As part of our IntelligentEngine vision we are further expanding the use of immersive Virtual Reality technology for customer training. The latest addition to the remote training program is an instructor led distance learning course, providing a comprehensive overview of the construction, design and operation of the BR725 engine that powers Gulfstream’s current flagship G650 business aircraft family. After completion of this comprehensive two-day training course, participants will be able to service the engine and undertake nonroutine maintenance. Andy Robinson, SVP Customers and Services - Business Aviation, said: “Rolls-Royce has been the leading engine supplier for business aircraft for more than two decades thanks to our
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continued commitment to the highest levels of service support. We are tremendously proud to have been voted number one in the latest Engine Product Support Services Survey of Aviation International News (AIN) by our operators. Digitalization plays a vital role in bringing our IntelligentEngine vision to life; we use it to design, test and maintain our engines. This new immersive live Virtual Training tool is nothing short of a game-changer - it
makes us the leader in technical training and allows customers to participate in the new training, wherever they are in the world. They just need an internet connection, and the required VR equipment, which will be shipped directly to their door,” Andy added. While not intended to completely replace practical training, we see the value Virtual Reality adds for our customers, such as higher flexibility and the elimination of the need to ship a fullsize training engine. The user finds himself as part of two realistic scenarios – the engine installed on the aircraft in a virtual hangar and the BR725 engine alone, just like it would be in our inperson training courses. The immersive environment allows them not only to watch the process steps to get familiar with the respective task, but to interact with the engine and the tools, and actually accomplish the task under the constant supervision of the instructor.
AVBUYER MAGAZINE Vol 24 Issue 7 2019
15
MarketIndicators JULY20.qxp_Layout 1 17/06/2020 09:39 Page 1
MARKET INDICATORS
Business Aviation Market Overview As we enter a time of year when the business aircraft sales market is traditionally quieter, Rolland Vincent considers the state of play with the added burden of COVID-19, highlighting a number of positives to take into the second half of 2020… uly is typically a month of high-profile airshows, and this year was to be no exception. In a coincidence that seems perplexing, both the Farnborough International Airshow 2020 and AirVenture were set to begin in the same week in July. These two must-attend industry gatherings — one focused on military and commercial aerospace, and the other on experimental and homebuilt designs with a sprinkling of warbirds and military flight demonstrations — have been cancelled in response to the global coronavirus pandemic.
J
16 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
In the previously unheard-of and now commonplace Zoom town-hall virtual meetings, we have quickly become acclimatized to the new online way of meeting and greeting. While saving millions of tons of airborne carbon and probably our sense of hearing, the aerial displays of Farnborough and Oshkosh will be dearly missed this year. The Greatest Recruiting Shows on Earth will no doubt return on another day to awe the young and the young-atheart, and hopefully they will come back on a staggered schedule to allow aficionados to attend both glorious events. www.AVBUYER.com
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AVBUYER.com With 35+ years in the aviation industry, Rolland Vincent, president, Rolland Vincent Associates (RVA) has served as a trusted consultant at Textron, Bombardier and ICAO in various roles in strategy, marketing, business development, aviation economics and aviation statistics. Identifying a need for enhanced insights into the state of the business aviation marketplace, Rolland Vincent Associates partnered with JETNET in 2010 to create JETNET iQ. Mr Vincent is chair of the Transportation Research Board’s Standing Committee on Light Commercial and General Aviation, and is president, RVA, a consultancy focused on aviation market research, strategy, and forecasting. Contact him via rvincent@rollandvincent.com
OEMs looking to secure fresh sales in today’s quieter-thanplanned marketplace. Until travel and border restrictions are lifted and we collectively return to some semblance of normalcy in the world of business aircraft sales, the simple things we took for granted – like salespeople actually meeting with customers; customers actually kicking tires and taking demo flights; dealers, brokers and appraisers actually examining the aircraft and logbooks on-site – are difficult at best. Is it any wonder that anxieties to return to normal and to move unsold inventory are peaking just as the heat of the Northern Summer builds?
BizAv is Relatively Untarnished
There is Some Good News
July, the preferred vacation month for many in the Northern Hemisphere, is typically a relatively sluggish period for pre-owned business jet transactions, and the Year 2020 will be no exception. With April 2020 jet sales off by a stunning 50% YoY and the May data well down (and still being counted), most sales professionals may want to consider enjoying the sun before worrying too much about that unachievable sales plan that was budgeted some time late last year. The good news (and there’s lots of it) is that transaction and activity levels have already begun to rebound off of the April 2020 floor, while inventory ‘for sale’ has increased only modestly in the wake of COVID-19. With 10.3% of the worldwide fleet for sale at press time, there has been no apparent “rush to the exits” from current business jet owners as was witnessed in the aftermath of the Global Financial Crisis (GFC) of 2008/2009. In fact, of the 2,300 business jets listed for sale (per JETNET) at the time of press, only 9% (~200 units) were delivered new since 2015. This presents relatively modest competition to the www.AVBUYER.com
While market conditions have swung demonstrably in the past few months, with pessimists now outnumbering optimists by a significant margin in the latest Q2 2020 JETNET iQ Global Business Aviation Survey, the image of Business Aviation in mid-2020 is relatively untarnished. This is a far cry from the situation the industry faced postGFC. In a word, it is smart to own and operate a business aircraft. It’s what successful companies, individuals and their families do. It’s how they ensure safety, security, and connectivity for the most important people in the world – their families, friends, and colleagues. While we expect overall sales of new business aircraft to remain subdued for the time being, new and nearlynew models remain in demand, and the spectrum of pre-owned business aircraft models available on the market offers enticing features and high performance at attractive price points. Although we expect sales to recover noticeably by year-end, the dealmaking that we always associate with year-end can’t come quickly enough in 2020 to satisfy our collective thirst for brighter skies and better days ahead. MI www.navigating360.com
page 22
AVBUYER MAGAZINE Vol 24 Issue 7 2020
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2 0 0 4 G u l f s t re a m G 4 0 0 s /n 1 5 3 0
NEW LISTING
AIRCRAFT SALES & ACQUISITIONS
4,857 Total Time. Two Owners Since New. U.S. Based & Maintained. CorporateCare. MSP. 14 Passenger.
www.DuncanAviation.aero/aircraftsales 2 0 1 6 L e a r 75 s /n 4 5 - 0 5 3 3 NEW LISTING
Acquisitions In Search Of Falcon 50EX: Late Model, Low Time, On Programs, ProLine 21
788 Total Time. Warranty 3/2021. Garmin Vision Flightdeck. Sat Data-Link/Weather. ATG-5000 WIFI. One US Owner.
2 0 0 1 H aw ke r 8 0 0 X P s /n 2 5 8 5 1 8
Global XRS: 2009 or Later, 120-Month Completed Legacy 600 Legacy 600 Falcon 900EX Citation Sovereign+
One U.S. Owner Since New. ADS-B. Wi-Fi ATG-4000. MSP Engine & APU. Servie Center Maintained.
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Duncan Aviation has been assisting companies around the world with the sales and acquisition of aircraft for 60 years.
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COMING SOON
• •
2005 Global 5000 2016 Learjet 75
2 0 1 5 E c l i p s e 5 5 0 s /n 5 5 0 -1 0 0 1
• •
Challenger 300 & 604 2006 Falcon 2000EX EASy
1 9 9 2 C i t a t i o n V s /n 5 6 0 - 0 1 76 NEW LISTING
348 Total Time. Operational 2018. Engines on ESP. ADS-B Out Enabled. Autothrottles. Sixth Seat Option.
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REDUCED PRICE
2,539 Total Time. Engines on PowerAdvantage Plus. Duncan Aviation Owned, Operated, & Maintained Since New.
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2 0 0 8 Fa l co n 7 X s /n 3 3 REDUCED PRICE
A LONG-TIME DUNCAN AVIATION MAINTENANCE CUSTOMER HIRED OUR AIRCRAFT SALES AND ACQUISITIONS TEAM TO PERFORM MARKET RESEARCH AND FIND A LATE-MODEL AIRCRAFT WITH LOW FLIGHT TIME AND A CABIN THAT HAD PLENTY OF SHOULDER ROOM.
2,047 Total Time. U.S. Ownership. Excellently Equipped. Ready To Be Place In Operation
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1 9 9 8 H aw ke r 8 0 0 X P s /n 2 5 8 376
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Spacious 6 Passenger Configuration. ADS-B. MSP. Interior Updated in 2014.
IN ORDER TO STAY WITHIN THE PRICE RANGES, OPERATIONAL COSTS OF OWNERSHIP, AND PERFORMANCE PARAMETERS THE CUSTOMER WANTED, WE DETERMINED HE SHOULD FOCUS ON A FALCON 2000LX. AFTER AN EXTENSIVE MARKET SEARCH WE FOUND THE APPROPRIATE ONE IN THAILAND. WHEN THE SALE CLOSED, THE NEW OWNERS ELECTED TO HAVE DUNCAN AVIATION ADD FANS 1/A, RECONFIGURE AND REFURBISH THE INTERIOR, AND PAINT THE EXTERIOR.
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6/8/2020 8:47:28 AM
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MARKET INDICATORS
AVBUYER.com
Flight Activity – North America TRAQPak’s review of year over year (YoY) flight activity, measuring May 2020 against May 2019, showed another significant decline, down 49.2%. However, a significant increase was recorded in May compared to April 2020, with activity rising by 84%... Measuring Year-over-Year, the results by operational category were all red with Fractional activity posting the largest yearly decrease from 2019, and Part 91 activity not far behind. By aircraft categories Large Jets recorded the largest YoY drop in flight activity. May’s Business Aviation flight activity did, however, post the largest month over month increase on record when compared to April. Unsurprisingly, results by operational category were all positive for the month, with Fractional flight activity posting an astounding triple digit increase. The aircraft categories were also positive for the month, with Mid-size Jets posting a triple-digit monthly increase, and Lights Jets almost hitting triple digits, too.
MAY 2020 vs MAY 2019 North America Flight Activity
PART 91
PART 135
FRACTIONAL
ALL
TURBOPROP
-46.7%
-40.6%
-65.4%
-45.0%
LIGHT JET
-40.8%
-43.1%
-45.7%
-42.2%
MID-SIZE JET
-58.9%
-44.8%
-54.6%
-53.1%
LARGE CABIN JET
-62.1%
-61.5%
-63.0%
-61.9%
ALL
-50.5%
-45.4%
-54.2%
-49.2%
MAY 2020 vs APRIL 2020 North America Flight Activity
PART 91
FRACTIONAL
ALL
TURBOPROP
67.6%
41.3%
123.0%
56.0%
LIGHT JET
98.2%
84.8%
149.3%
98.5%
MID-SIZE JET
99.8%
111.8%
139.6%
113.6%
LARGE CABIN JET
93.3%
86.7%
130.1%
93.3%
ALL
85.0%
70.4%
140.3%
84.0%
June Activity Forecast
Looking ahead to June’s activity, TRAQPak analysts estimate there will be a 26.6% decrease in overall flight activity Year-over-Year.
PART 135
MI www.argus.aero
Flight Activity – Worldwide Trends Global Business Aviation activity trailed by 51% when comparing May and the first few days of June 2020 with the same period in 2019, says WingX Advance. Unsurprisingly North America was the most robust region, with activity recovering to 49% of normal levels… Starting May with a rolling 7-day average of 3,800 daily ‘sectors’, North America ended the month at around 6,200, an improvement of 63%. In the US, sectors flown in the week that included Memorial Day were down only 3% compared to the same dates in 2019. After North America, the bulk of Business Aviation activity operated out of Europe, with trends still ~60% below normal. Oceania has recovered the most with traffic only 25% below normal, and South America is now running 27% below par. In Asia, flight activity since the start of May was down just over 50%, year on year. At the start of the May, only half the normally-active worldwide fleet was operational, but by the end of the month fleet employment was down only 20% on normal. By country, Business Aviation demand appears to be most robust in Australia and Sweden, with jets and turboprops operating 20% below the comparative period in 2019. Germany was the busiest country in Europe, but flights were 44% below usual levels. Flight activity in Russia and France was down 53% and 63% respectively, while the countries seeing the largest negative impacts remain the UK, Spain and Italy where flight activity 22 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
was reduced by 70% or more. “The US market appears to be entering a faster recovery phase, with holiday travel in the last week seeing close to normal activity for the end of May,” says Richard Koe, managing director, WingX Advance. “Generally, aircraft management companies have the strongest overall trend, although some charter operators have almost regained usual levels. “Europe was still lagging, with Business Aviation traffic down by 60%, though this was still much better than the scheduled airlines.” page 26 MI www.wingx-advance.com
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IN SERVICE DECEMBER 2010, AIRFRAME ON SMART PARTS PLUS, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, ONE OWNER SINCE NEW, BATCH 3.3, FANS 1/A, CPDLC, TCAS 7.1, ENHANCED VISION SYSTEM (EVS), HEAD-UP DISPLAY (HUD), INMARSAT SWIFTBROADBAND & INMARSAT SWIFT 64
2009 BOMBARDIER CHALLENGER 605 SERIAL NUMBER 5765
ONE OWNER SINCE NEW, 96 MONTH INSPECTION COMPLIED WITH JULY 2017, PROLINE 21 ADVANCED UPGRADE, AIRFRAME ON SMART PARTS PLUS, ENGINES ON GE ONPOINT, APU ON HONEYWELL MSP GOLD
2011 BEECHCRAFT KING AIR 350i
SERIAL NUMBER FL750 – REGISTRATION N404SA FRESH INTERIM SERVICE AAS AUGSBURG, CLEAR MAINTENANCE 100 HOURS / DECEMBER 2020, LOW TIME
THE WORLD’S FIRST AND ONLY STREET LEVEL CORPORATE AVIATION SHOWROOM.
EXCLUSIVELY REPRESENTED BY
2008 GULFSTREAM G550 SERIAL NUMBER 5174
WILL DELIVER WITH FRESH 144 MONTH INSPECTION, FOURTEEN PASSENGER EXECUTIVE CONFIGURATION, ENGINES ON ROLLS ROYCE CORPORATE CARE, TCAS 2000 WITH CHANGE 7.1, GULFSTREAM PLANEVIEW CERT. FOXTROT, NEW EXTERIOR PAINT, LED UPWASH LIGHTING, HONEYWELL MCS-7120/HD-710 PHASE IV STAND-ALONE SATCOM WITH HIGH SPEED DATA UNIT, SATCOM DIRECT ROUTER FOR 3G DATA ACTIVITY ON GROUND, DIPLEXER (DLNA) FOR INMARSAT SWIFT BROAD BAND (SBB) OPERATION, ASC 84D ENHANCED NAVIGATION, FANS-1/A, CPDLC, ETC., ASC 105C ADS-B OUT
2005 GULFSTREAM G550 SERIAL NUMBER 5058 – REGISTRATION N2480H
ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, CUSTOM 14 PASSENGER FLOORPLAN BY GULFSTREAM SAVANNAH IN 2009, AFT GALLEY & FORWARD CREW REST, U.S. REGISTERED / FAA PART 135, ADS-B OUT, FANS-1/A, CPDLC, BROAD BAND MULTI-LINK (BBML) HIGH SPEED DATA WITH GEN 2.5 SERVER (YONDER SERVICE), SWIFT BROADBAND, 12 MONTH / 500 HOURS INSPECTION C/W FEBRUARY 2020
1997 GULFSTREAM G-V SERIAL NUMBER 506 – REGISTRATION M-FISH
LOW TIME, ENGINES ON ROLLS ROYCE CORPORATE CARE, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, MECHANICAL PARTS ON HONEYWELL MECHANICAL PROTECTION PLAN, NO DAMAGE HISTORY, OPERATED PRIVATELY – NOT FOR CHARTER, FAA COMPLIANT – PART 91, FORWARD GALLEY & CREW REST, NEW EXTERIOR PAINT & INTERIOR IN 2015, SPACIOUS 8+1 PASSENGER CONFIGURATION FEATURING AFT PRIVATE MASTER BEDROOM WITH FIXED FULL SIZED BED
25 Park Lane, London W1K 1RA EU +44 (0) 203 603 0000 | US +1 917 414 1995 sales@thejetbusiness.com | www.thejetbusiness.com
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MARKET INDICATORS
AVBUYER.com
Large Business Jet Sales Cool As the last decade commenced, the world had an insatiable appetite for the biggest of corporate jets. More recently though, that love affair has broken up, says Business Aviation analyst Brian Foley… Last decade, the large jet category was still a relatively new jet segment with demand outstripping supply. Impatient buyers were known to have paid multimillion dollar premiums to existing order holders to jump to the front in the line instead of waiting for their new airplane like everyone else. During the financial crisis of 20072008, these jets proved to be recession-proof too. As the lower end of the business jet market collapsed (partly due to buyers not having the financial wherewithal to weather the storm), large business jet order-holders stood pat, having their own sources of financing to keep their orders intact. Today, the demand drivers that seeded this wave of orders have waned, however. Emerging markets, once a primary purveyor of long range jets, have fallen victim to lackluster stock markets, geopolitical instability and a dive in natural resource prices. Other factors resulting in less big cabin buyer interest include a relatively strong US dollar, which when converted to local currencies magnifies lofty list prices. While one may naturally assume plunging oil prices would be a boon for fuel-thirsty large aircraft, quite the opposite is true. Some analysts postulate that up to one in five big corporate jets sold are either directly or indirectly dependent on the health of the oil
industry, which has recently seen prices fall from over $60/barrel into the $20s.
Smaller-End Activity Growing
Field intelligence from brokers of used business jets is that most of their activity has been on the smaller cabin end. This is corroborated by AMSTAT, showing that Large Jets are now accounting for a fifth of all pre-owned transactions, down from a fourth. When splitting new bizjet delivery statistics provided by GAMA into cabin sizes, the percentage of new, large aircraft delivered has steadily declined from half of all 2013 deliveries to less than a third in 2019. The sales sag may also be presenting itself as workforce cutbacks. Gulfstream announced 699 layoffs this month on top of 446 employees let go in October.
Other large jet OEMs have mostly gone the rolling furlough route, at least for now.
Future Pendulum Swing?
Longer-term, the pendulum will swing back towards an improvement in Large Cabin sales. There is a plethora of brand new large business jets now available or coming in the next couple of years, which should stimulate sales. Emerging markets and oil prices won’t be downtrodden forever, and when they do return there’s the added interest of flying internationally in a more germfree environment. Until then, both new and used smaller business jets will garner most of the attention, a distinction not seen in ages. MI www.brifo.com
AEA Q1 Avionics Market Report Analysis The Aircraft Electronics Association released its Q1 2020 avionics market report recently, and in the first three months of the year, total worldwide Business & General Aviation avionics sales amounted to ~$660.5m, an 8.8% decrease compared to Q1 2019. The Q1 2020 AEA report brought an end to a streak of twelve consecutive quarters with reported increases in year-over-year sales. Nevertheless, Q1 2020 sales showed a 3.2% increase compared to Q1 2018, when sales were ~$639.8m. Of the reported Q1 2020 sales, 52.3% came from the retrofit market (avionics equipment installed after original production), while forward-fit sales (avionics equipment installed by airframe
26 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
manufacturers during original production) amounted to 47.7% of sales. According to the companies that separated their total sales figures between North America (US and Canada) and other international markets, 75.2% of Q1 2020 sales occurred in North America, while 24.8% took place in other international markets. “With the passing of the January 1, 2020, deadline to equip aircraft with ADS-B Out avionics in the United States, the end to 12 consecutive quarters of sales growth may not come as a surprise,” says AEA president and CEO Mike Adamson, adding the impact of COVID-19 is as yet unknown. MI www.aea.net www.AVBUYER.com
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MARKET INDICATORS
In-Service Aircraft Values & Maintenance Condition
While the number of aircraft transactions continued to be fewer than normal during May, primarily as a result of buyer uncertainty caused by the COVID-19 Pandemic, assets listed for sale continued to increase – albeit at a slower pace. Asset Insight’s May 31, 2020 market analysis of 134 fixed-wing models revealed a 0.7% inventory fleet increase over April, the smallest percentage increase during 2020 and a year-to-date (YTD) rise of 6.5% to the tracked fleet. Turboprop inventory led the way through a 2.4% rise in May, followed by Large Jets (1.0%), and Medium Jets (0.3%). Small Jet inventory decreased 0.3%.
Aircraft Values
Average Ask Price for aircraft in the tracked fleet decreased 4.4% in May, with all groups contributing. • • • •
Large Jets lost 6.4% Medium Jets were down 3.9% Small Jets reduced by 1.3%, and Turboprops lost 2.3%.
Inventory Fleet Maintenance Condition
After posting a 12-month best (highest) asset quality rating for two consecutive months, May’s ‘for sale’ fleet mix revealed fewer nearterm maintenance events, although individual event costs are anticipated to run slightly above the 12-month average. The tracked inventory registered the following figures… •
•
Quality Rating: The ‘for sale’ fleet’s Quality Rating remained within the ‘Excellent’ range for 2020, posting a figure of 5.301 in May (versus April’s 5.311) on Asset Insight’s scale of -2.5 to 10. Maintenance Exposure: After last month’s improvement, Maintenance Exposure – an aircraft’s accumulated/embedded maintenance expense – increased (worsened) 0.9% to $1.39m, signaling upcoming maintenance for the latest fleet mix would be slightly more expensive to complete.
Maintenance Exposure to Ask Price (ETP) Ratio
The ETP Ratio is a useful indicator of an aircraft’s marketability. It is computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During Q1 2020, assets whose ETP Ratio was 40% or more were listed for sale nearly 68% longer (on average) than aircraft whose Ratio was below 40% (246 versus 413 Days on Market). Our May analytics revealed that 51.4% of our tracked models, and 54.6% of our tracked fleet, posted an ETP Ratio greater than 40%. May’s fleet ETP Ratio remained unchanged at 69.8%, keeping the figure about half-way between the worst (highest) 12-month figure and the 12-month average Rating. • For the sixth consecutive month, Turboprops registered the lowest ETP Ratio at 43.5%, only slightly higher than the group’s page 32 12-month lowest/best figure.
www.AVBUYER.com
Table A
Fleet Maintenance Condition
5.35
$ Million $1.39
5.25
$1.50 $1.45
$1.40 5.301
5.15
$1.35 $1.30
J
J
A
Quality Rating
S
O
N
D
J
Maintenance Exposure
F
M
A
M
Quality Rating Trendline
Table B G650ER CL-650 F2000LXS G650 Citation CJ3+ Global 6000 Challenger 350 F7X Learjet 75 G280 Boeing BBJ Citation X+ Legacy 650 F2000LX Citation CJ4 525C Phenom 300 F900EX EASy King Air 350i CL-605 Citation Encore + Pilatus PC-12 F900DX Piper Meridian TBM 850 G450 Citation Sovereign 680 G150 Hawker 900XP Caravan 208-675 Citation CJ3 KingAir 350 - Post-2000 Nextant 400XTi Phenom 100E G550 Global XRS Citation XLS GV F900EX Global 5000 CL-300 Learjet 45XR Citation CJ2+ 525A Citation Encore Citation Mustang 510 F50EX Hawker 4000 Caravan Grand 208B Piaggio P-180 II Learjet 60XR KingAir B-200 - Post-2000 Caravan 208 Citation CJ1+ Hawker 850XP Phenom 100
3.9% 5.0% 5.3% 5.8% 7.5% 7.9% 8.0% 8.1% 8.6% 10.2% 11.5% 12.1% 12.5% 13.1% 13.9% 14.5% 15.1% 15.6% 16.9% 17.1% 19.0% 19.6% 19.8% 21.5% 21.8% 21.9% 22.7% 23.7% 24.2% 24.9% 26.2% 26.3% 26.6% 26.6% 28.2% 28.6% 29.4% 30.8% 31.1% 31.5% 32.7% 33.0% 34.8% 35.0% 36.2% 36.5% 36.5% 37.3% 37.6% 38.1% 38.4% 38.8% 39.3% 39.7%
Citation CJ2 Embraer Legacy 600 F900B KingAir 350 - Pre-2001 Hawker 750 Citation Excel 560XL F900 G200 CL-604 KingAir B-200 - Pre-2001 Premier 1A KingAir 300 Hawker 400XP TBM 700A GIV-SP (MSG3) Citation Bravo G400 Citation V Ultra Learjet 40 Citation CJ1 Learjet 40XR GIV-SP Learjet 45 w/APU Hawker Beechjet 400A Global Express F2000 Learjet 45 Premier 1 Citation VII Hawker 800XP Citation V 560 Learjet 60 Learjet 55C Hawker Beechjet 400 Hawker 1000A Citation VI Learjet 31A CL-601-3R Piaggio P-180 KingAir C90 F50 G100 Citation ISP Citation II Learjet 36A Hawker 800A Learjet 55 GIV Citation III CL-601-3A Learjet 31 Citation I F20-5 Learjet 35A CL-601-1A Hawker 125-700A GIII
41.2% 41.5% 42.1% 42.3% 43.2% 44.6% 46.0% 47.9% 51.9% 52.2% 54.5% 56.2% 56.9% 57.9% 60.5% 62.1% 62.6% 63.0% 66.6% 67.5% 68.2% 71.9% 71.9% 75.3% 76.8% 81.1% 81.2% 84.8% 84.9% 92.0% 92.1% 93.5% 106.4% 109.1% 116.5% 118.3% 119.9% 120.7% 123.1% 124.7% 131.9% 135.1% 136.6% 136.7% 143.8% 150.4% 173.8% 179.8% 181.3% 189.0% 199.2% 249.4% 283.1% 286.4% 306.0% 332.1% 666.3%
Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of May 31 2020 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
AVBUYER MAGAZINE Vol 24 Issue 7 2020
27
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2004 HAWKER 400XP • Serial Number: RK-374 • RVSM and Currently on a FAR 135 Certificate • Based and Registered in the US Since New
2007 LEARJET 45XR • Interior Carpet and Leather Refurbishment – Jan. 2019 • Always Hangared
2016 KING AIR 350I • Serial Number: FL-1040 • ADS-B Out • Aircell ATG-5000 WIFI • Low Hours - 911 Since New
• Delivered with Recent A - D Inspections • Paint and Interior Refurbished - 2016
2009 HAWKER 4000 RC-24 • Collins Pro Line Fusion • Fresh Textron Pre-Buy Assurance Program Inspections
1981 KING AIR B100 • Serial Number: BE-118 • 2020 ADS-B Compliant • Executive Wings Winglets • Chelton EFIS Avionics Package
• Serial Number: 45-346 • Engines and APU Enrolled on MSP • Next Gen Avionics: ADSB-Out, TCAS 7.1
• Honeywell Primus Avionics Suite • Block Point Inspections / Load 20 Mod Output Completed
• ADS-B In & Out • Enrolled on Engine, APU, and Avionics Programs
1996 BEECHJET 400A • Phase 1-4 Inspections CW August 2019 • McCauley Black Mac 5 Blade Props
• Serial Number: RK-120 • Enrolled on IFA- Increased Flight Activity Program • Fresh Hot Section Inspection1,980 Hours Until Next Event
• ADS-B Compliant • New Paint- February 2020; Freshly Refurbished InteriorMarch 2020 • FDR Equipped
MarketIndicators JULY20.qxp_Layout 1 17/06/2020 09:48 Page 6
MARKET INDICATORS
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Large Jets Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
Market Summary
11.3% of the tracked fleet was listed for sale in May, compared to 10.7% in April. The lowest (best) figure was again captured by the Turboprops (7.1%). Large Jets were next (10.7%), followed by Small Jets and Medium Jest (11.4% and 13.1%, respectively). Large Jets: Inventory for the tracked fleet increased by five units in May, with the latest fleet mix maintaining the group’s Quality Rating at a record high 5.733 for the second consecutive month to remain within ‘Outstanding’ territory. However, Maintenance Exposure increased (worsened) 1.7% (though that figure was
Scale -2.500 to 10.000
5.279
5.300
$1.30
$3.00
May-20
Asset Quality Rating
$1.35
$3.25
Apr-20
Medium Jets: For the second consecutive month, little movement was noted for both the group’s Quality Rating and Maintenance Exposure, with the former improving (after worsening for three consecutive months) to remain within the ‘Excellent’ range, while the latter worsened (increased) 0.6%, although bettering the 12-month average. Inventory increased by two units, with the new fleet mix posting a 3.9% loss in Ask Price to a figure half-way between the 12-month high and average figures. The group’s ETP Ratio did manage to post a second consecutive 12-month low (best) figure, but with 13.2% of the tracked fleet listed for sale, buyers should be able to locate some good values.
Medium Jets
$3.27
$3.50
5.200
32 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
5.000
Oct-19
$1.25
Jun-19
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
$1.27
Jul-19
5.100
$2.75
$2.50
Mar-20
only slightly higher than the group’s 12-month best). With Ask Prices decreasing another 6.4%, great values are available for prospective buyers, assuming they carefully analyze their selected aircraft. The group’s ETP Ratio rose to 66.0% in May making some low-pried aircraft poor value for money.
$ Millions
$3.75
Feb-20
Jun-19
May-20
Apr-20
Mar-20
Jan-20
Feb-20
Dec-19
Nov-19
Oct-19
Sep-19
Jul-19
Aug-19
Jun-19
Large Jets worsened slightly, but held on to second place at 66.0%. For the second consecutive month, Medium Jets registered a 12-month best (low) figure (71.2%). Small Jets worsened to 88.5%, a figure that approached the group’s 12-month worst Rating.
Ask Price vs. Maintenance Exposure
5.500
Sep-19
•
$2.80
Aug-19
•
$3.05
5.600
Jan-20
$3.00
Dec-19
$11.0
5.700
Nov-19
$3.20
5.733
Oct-19
$12.0
$10.0
•
$3.40
Sep-19
$11.7
$13.0
5.800
Aug-19
$3.60
Jul-19
$14.0
Scale -2.500 to 10.000
www.AVBUYER.com
MarketIndicators JULY20.qxp_Layout 1 17/06/2020 09:48 Page 7
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MARKET INDICATORS Tony Kioussis is president of Asset Insight. The company provides audit and valuation services and has developed a standardized Asset Grading System scale that evaluates an aircraft’s maintenance condition.
Small Jets
Ask Price vs. Maintenance Exposure $ Millions
$1.95
Asset Quality Rating Scale -2.500 to 10.000
$0.90
5.300
5.182
$0.89 $1.85
5.200
$1.83
$0.80
$1.75
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
5.000 Jul-19
$0.70
Jun-19
May-20
Apr-20
Mar-20
Jan-20
Feb-20
Dec-19
Nov-19
Oct-19
Sep-19
Jul-19
Aug-19
Jun-19
$1.65
5.100
Maintenance Exposure decreased (improved) 1.8%, and that Small Jets: Inventory decreased by two units in May, but that still helped stabilize the ETP Ratio at 43.5% (versus April’s 43.2%), placed the listed fleet at 11.4% (an increase of 58 assets YTD). even though Ask Prices fell 2.3%. While an improvement from April’s 11.6%, buyers are still in the The percentage of the active fleet listed for sale decreased driving seat. To make things worse for sellers, Asset Quality slightly to 7.1% from 7.2% which bodes well for this group, as decreased 1.2% to 5.182 (staying within the ‘Very Good’ range), there is sufficient selection for buyers while sellers continue to see while Maintenance Exposure increased another 1.1% to post the pricing hold above the group’s 12-month average. group’s second consecutive 12-month high (worst) figure. page 36 MI www.assetinsight.com Following April’s 3.3% Ask Price increase to a 12-month best figure, May saw prices recede 1.3% and the ETP Ratio increase to 88.5%, just below the group’s worst 12-month figure of 90.2%. As we suspected last month, April’s Ask Price increase was Asset Quality Rating Key unable to take hold, and the spread between Ask Price and Insight (www.assetinsight.com) actual Transaction Value is Asset expected toanalytics widen approaching the Very Below Outstanding Excellent Good Good Average Average end of Q2.
5.500 or Greater
Asset Insight analytics (www.assetinsight.com)
Turboprops: Inventory rose by another 11 units in May, increasing the number of near-term maintenance events for the tracked fleet but keeping Asset Quality within the ‘Very Good’ range at 5.01.
Turboprops
www.AVBUYER.com
5.051
May-20
Apr-20
4.750
Mar-20
$0.50
Feb-20
4.850
Jan-20
$0.55
Dec-19
4.950
Nov-19
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
$1.40
Jun-19
$0.55
Less than 4.500
5.050
Oct-19
$0.60 $1.50
4.500 to 4.749
5.150
Aug-19
$1.60
$0.65
Jul-19
$0.70 $1.57
4.750 to 4.999
Scale -2.500 to 10.000
Jun-19
$1.70
5.000 to 5.249
Asset Quality Rating
$ Millions
Sep-19
Ask Price vs. Maintenance Exposure
5.250 to 5.499
AVBUYER MAGAZINE Vol 24 Issue 7 2020
33
O'GaraJets July.qxp_Layout 1 15/06/2020 12:43 Page 1
AIRCRAFT FOR SALE
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GULFSTREAM G550 SN 5199 Excellent Two Owner, U.S. Pedigree RollsRoyce Corporate Care Engine Coverage Triple FMS w/ WAAS/LPV
GULFSTREAM G280 SN 2028 Aircell GoGo Biz WiFi CabinView Cabin System w/ Dual Monitors Honeywell MSP Engines & APU
FA LCO N 2 0 0 0 E Xy S N 2 7 Pro Line 21 w/ Synthetic Vision System FANS 1A+ / CPDLC / ADS-B Out 1C Insp & Landing Gear Overhaul June 2016
CHALLENGER 601 SN 5005 Fresh Pre-Purchase Inspection - March 2020 GE OnPoint Engines / Honeywell MSP APU WAAS / LPV / ADS-B Out
O'GaraJets July.qxp_Layout 1 15/06/2020 12:43 Page 2
HAWKER 900XP SN HA-151 MSP Gold Engines & APU CASP Avionics Plan Flightdocs Maintenance Tracking
HAWKER 800XPi SN 258732 Low Total Time Since New ADS-B Out Compliant Like New Paint - 2016 by Textron
PHENOM 100 SN 151 10-Year Inspections Complete Fresh Landing Gear Overhaul ADS-B Out Compliant
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C I TAT I O N E XC E L S N 5 6 0 - 5 1 3 9 Two U.S. Ownership Since New ESP Gold Lite Engines Honeywell MSP APU Coverage
HAWKER 400XP SN RK-504 Like New Paint - 2016 by Textron ADS-B Out Compliant Low Total Time Since New
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Q1 2020 GAMA Shipment Analysis How did COVID-19 impact the market for new business aircraft shipments? Mike Potts assesses GAMA’s latest numbers for Q1 2019 and pieces together the overall picture… It’s well known that the COVID-19 pandemic is having a heavy impact on the economy, and based on the numbers issued by the General Aviation Manufacturers Association at the end of May for Q1 2020, the Business Aviation industry is no exception. In a terse three-paragraph news release GAMA reported the jet deliveries were down 19.1% (114 units versus 141 in Q1 2019; turboprops were down 41.8% (71 units versus 122 a year ago), and piston airplanes were down 11.7% (219 against 248 in Q1 2019). Billings for Q1 2020 totaled $3.4bn, down about 21.3% from $4.1bn last year. Coming off the strongest year for business aircraft in more than a decade and with hopes that this year might soar yet higher, this is clearly a major disappointment. Since the pandemic did not sweep through the US until more than midway through the quarter, it is likely that Q2 results will reflect an even bigger downturn. Nonetheless, here is where we are today…
The Business Jet Market
Not every business jet OEM finished in negative numbers. Of 10 jet-makers regularly reporting to GAMA, three had improved results, three were even with a year ago, four lost ground and one only reports mid-year and year-end. The general roiling of the market brought about a shift in market leadership, however, at least for Q1. Bombardier led the market with 26 units shipped, up from 24 it reported a year ago. In recent years Bombardier has most typically occupied the number three position. 36 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Textron’s Cessna unit, the usual market leader, shared the number two position with Gulfstream, both with 23 deliveries. This represented a stiff downturn for both companies. Gulfstream was off 32.35% from the 34 deliveries reported in Q1 2019, while Cessna was down 47.73% from 44 shipments a year ago. In a not terribly distant fourth place Cirrus reported 18 jet deliveries, a gain over last year’s 14. In a more normal economy, however, Cirrus would probably have expected a total in the mid- to high-20s, based on their results in Q3 and Q4 of 2019. Fifth position in jet deliveries for Q1 2020 went to Embraer with nine units, down from 11 a year ago. Sixth place resulted in a tie between Honda and Pilatus with seven deliveries each. Honda matched their total from a year ago while Pilatus was ahead of Q1 2019 by two units. Bringing up the rear in the jet market were, as usual, the Bizliner OEMs Airbus and Boeing. Airbus reported one delivery – down from two a year ago – while Boeing had none in either period. The total new business jet market will actually be a little larger than GAMA’s 114 unit total since Dassault hasn’t reported. In 2019, Dassault reported 17 units in H1. If their result this year were down by the industry average of 19.15%, they probably made between five and seven deliveries in Q1 2020, bringing the total market to about 120 units. GAMA continues to list ONE Aviation as an active jet market, meaning ONE continues to support its type certificate. Given the softness of the current jet market it seems unlikely it will reemerge as an active manufacturer this year, however.
The Business Turboprop Market
Turning to the turboprop market we see a much more difficult situation than in the jet market, with only one of the nine www.AVBUYER.com
MarketIndicators JULY20.qxp_Layout 1 17/06/2020 09:21 Page 9
MARKET INDICATORS
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turboprop OEMs reporting positive results compared to Q1 2019, while two are even and six are in negative numbers. GAMA reported 71 turboprop deliveries but in fact 36 were agricultural aircraft from builders Air Tractor and Thrush. Looking just at traditional business aircraft there were just 35 turboprop deliveries, including 11 twin- and 24 single-engine models. That compares with 80 (23 twins and 57 singles) in Q1 2018. That’s a total market drop of 56.25%. Amidst the gloom, however, there is one significant point of light – a new turboprop manufacturer. Epic Aircraft of Bend, Ore., successfully achieved type certification for its all-new single-engine turboprop, the Epic E1000, in December and recorded its first delivery during Q1 2020. Elsewhere in the business turboprop market, good news is scarce. In 2019 when jets and piston products had sensational years the turboprop segment lagged, so they weren’t entering 2020 from a position of strength. The current economic crisis is hitting turboprops hard. Textron’s Beechcraft unit and Pilatus finished the quarter in a tie for first place with 11 deliveries each. Pilatus was close to the 12 units shipped in Q1 2019, but Beechcraft took a heavy hit of 52.17% fewer shipments compared to the 23 units shipped in Q1 2019. In a distant third position was Cessna with just deliveries (down 76.19% from the 21 shipped a year ago). Daher was in fourth place with four deliveries, down from eight deliveries in the same period last year. In addition, Daher’s Kodiak model that it acquired last year had no deliveries, down from seven a year ago. Piper captured fifth place in the turboprop segment with three units, down from seven last year, followed by Epic in sixth place with one. Three turboprop OEMs recorded no deliveries, including Pacific Aerospace (down from two), along www.AVBUYER.com
with Avic and Piaggio which had no deliveries in either quarter.
Piston Shipment Summary
Amid all the chaos among the turboprops, the piston market is actually looking pretty good, down just 11.7% from a year ago. The 219 piston units delivered in Q1 2020 included 188 single engine models and 31 twins (comparing with 248 last year, comprised of 214 singles and 34 twins). Looking at all the companies collectively the picture isn’t very bright, with just three firms in positive numbers while one is even and 10 have fewer deliveries than a year ago. On the bright side, two of the three with positive numbers are the market leaders, Cirrus and Textron’s Cessna unit, and they represent a significant percentage of the total market.
In Summary
The second quarter is likely to look worse than the first, but that remains to be seen. In our view, we need to turn our eyes to 2021 in the hope that it will prove to be the year that 2020 wasn’t. We can know with certainty that the coronavirus pandemic will pass, and there can be little doubt that Business Aviation will play a key role in recovery when it comes. T
Mike Potts is respected industry-wide as an aviation journalist. He has worked in the communications departments of Beech Aircraft, Sino Swearingen and M7 Aerospace, and has been analyzing GAMA’s delivery reports for AvBuyer since 2003 where he has built an excellent track record for accurate shipment predictions. Contact him via mpotts1@satx.rr.com
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Used Aircraft Sales Market Update What are the dealers and brokers saying about the used aircraft sales market during the COVID-19 pandemic? What are the obstacles to making sales right now, and how are the professionals keeping business ticking over? Dave Higdon reports… ew would dispute the coronavirus pandemic has enveloped virtually every aspect of modern life, Business Aviation included. Unemployment exploded in April and May, and continued to rise – albeit more slowly – into June. Tens of thousands of aircraft workers, in the US, Asia, Canada and Europe received stay-at-home orders and layoff notices in one fell swoop. And new aircraft deliveries plummeted in Q1 2020, according to the latest General Aviation Manufacturers Association report. Likewise, sales of new and retrofit avionics slipped. Many of these outcomes were easily discerned thanks to data reported by governments and associations. Sales of used business aircraft, however, have been a little more difficult to gauge. As one broker observed, “We can't get registration changes through the FAA like normal, slowing the process.” In late March the FAA Civil Aviation Registry in Oklahoma City instituted a number of changes affecting the way (and how quickly) aircraft transactions are processed in the public document room (PDR) during the pandemic. The agency
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noted it instituted the new procedures to slow the spread of the disease and minimize exposure for FAA employees, PDR permit holders, families and the general public. Instead of the normal open-access for PDR permit holders to file documents at the registry throughout the day, the FAA is accepting or picking up documents on a limited schedule. At the same time, parties can continue to mail documents to the FAA, and the agency is now accepting email filing of documents under certain circumstances. During the pandemic, the FAA cannot guarantee expedited processing as in the past. Beyond those changes, all incoming documents received by mail or filed in the PDR are subject to a 72-hour quarantine. This includes documents that would normally be eligible for priority processing. However, documents properly submitted through the email portal will be processed without delay. Beyond the slowdown in the document processing at the Registry, the FAA stayed busy with a lengthy series of exemptions and waivers to help alleviate pressures on medical facilities and practitioners, and to accommodate countless other
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“...with the filing of records at an ebb, with closed offices, and with so many working away from their usual records access, catching up with the data will likely stretch well into Q3 2020.” issues, including for the expiration of medical certificates for pilots and mechanics. Understandably, with so many variables in play covering so many different issues, tracking preowned business aircraft sales has added challenges.
State-by-State Variations Hamper Sales Efforts
Working from home became a new experience loaded with possible challenges and limitations for millions of American job-holders. “I often make marketing calls from home, so the work-from-home order wasn't completely without precedence,” noted a Southeast US broker. “I already knew how to make in-person appointments, schedule demo flights and show calls. “The difference came when neither my sales target nor I could legally go to the airport to conduct a demo flight with an airplane in quarantine.” Meanwhile, a West Coast broker told AvBuyer how he has learned to produce digital demos and brochures in the hope of holding buyer interest until a real flight could be scheduled. However, international sales activity brings with it the prospect of a 14-day quarantine for visiting or coming from any nation imposing such restrictions. Some US states have imposed similar restrictions on visitors from other states, and some other countries too. “Overall, it's been a waiting game with time split between trying some cold-calling and lining up new prospects, ready for when we can resume demo flights and visits in-person,” the Southeast dealer lamented. 42 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Sales are Occurring
Sales have been happening, sources assured AvBuyer, but with the filing of records at an ebb, with closed offices, and with so many working away from their usual records access, catching up with the data will likely stretch well into Q3 2020. “Don't forget, we've lost a record number of events and shows this year,” stressed the West Coast broker. “Almost every one of those canceled shows would have produced leads, even sales that we're only now getting back to pursuing.” Reaching out for some quantifiable input, the question comes down to this: If you had to make a guess (based on what you hear, not on what the registry says), where is used aircraft sales activity right now? The almost universal response was to acknowledge the market is down – not terribly, not irreparably, but down by low double-digits. Between the quarantines, stay-at-home orders, travel restrictions and obstacles to meeting and showing and aircraft to the client, it's an answer that feels right. “[The market is] off and we can't expect to make up the lost ground until we return to a real normal – not merely a return to the office,” one East Coast broker suggests. “Speaking for only myself, that can't happen quickly enough.” T Dave Higdon is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via Dave@avbuyer.com
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How to Prepare a Helicopter for Resale Michael Roberts shares insights with those looking to market and sell a helicopter. How can the asset be accurately represented, and how can the deal be structured to ensure the best outcome for the seller? o sell a helicopter, you and your organization will need to fulfill many roles. From secretary, to marketing strategist, to import/export compliance expert, to babysitter – your goal is to facilitate the sale of your client’s rotorcraft from start to finish. Let’s take a closer look at the core elements needed for you to carry a deal to a successful closing.
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Prepare All Data Ahead of Time
Your top priority before bringing any machine to market should be to compile all of the data a potential buyer may want to see. This might sound like common sense, but within your organization the vital information you need could be spread across several different departments. 44 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Make a concerted effort to gather this data together in advance, before moving forward with marketing. Most sellers usually bring their helicopter to market with good intentions. They may plan to get the necessary documentation together within a week, but that can easily turn into a project that is still not complete when the helicopter is advertised. We all have competing pressing matters vying for our time, and in the end best intentions can be forgotten. As a result, though, the seller’s helicopter won’t be a top consideration for any buyer because the buyer doesn’t have the information they need. Realistically, compiling all the essential information can take time, and it is vital to making sure the client’s rotorcraft is ready for prospective buyers. www.AVBUYER.com
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aircraft. Walk around the helicopter and take 20 to 25 pictures (these can be compressed and sent in a single email). Buyers ultimately just want to get an idea of what the helicopter looks like currently, so fresh photos that were recently taken are essential. As a marketing strategy, hiring a professional photographer is an option. Some people prefer touched up photos that appear more polished, but this is not essential to creating a quality helicopter advertisement.
Marketing Strategy and Advertising
Create a ZIP File
Another seemingly common-sense step, but just as important, is to simplify how you respond to leads. Combining all of the helicopter’s logs into a single ZIP file allows you to reduce the files down to a manageable size that can be emailed and shared via Google Drive. The person responsible for answering leads will now have a single, comprehensive document containing the machine’s logs (including photographs of hard-copy logs) which can be attached to an email in response to any potential buyer’s inquiry. Holding all of the helicopter’s information in one place will make both your and the buyer’s job a lot easier, especially if you're selling to them internationally. Before they invest in coming to look at the helicopter in person, they can be presented with everything they need to know in a single file.
Take Great Photos of the Helicopter
You don’t have to be a professional photographer to understand what a potential buyer wants to see before moving forward with a purchase. The main points of interest for buyers include images depicting: • • • •
Both sides and the front of the helicopter Seating arrangements The flight panel The data plate
Ensure the photographs are clear and show accurately the aesthetics and the condition of the
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The marketing strategy you choose will often depend on the individual owner or operator of the helicopter for sale. For example, I’ve had sellers request that I only sell their aircraft outside of their competitive region to prevent their competition from using their helicopter to secure local contracts. In such a case, an international marketing campaign is preferable as my client needs to see the helicopter leave their region. Once you have a clear understanding of your seller’s needs, consider the following marketing options… Directly Contact Potential Buyers: You may send the helicopter’s specs directly to people that you know could be potential customers; usually these are contacts within your own network. Alternatively, if asked, aircraft maintenance facilities may have customers who could be interested in the aircraft your client is selling. Advertising on Relevant Websites/Publications: There is no need to list the helicopter on every site in the world. Do your research, selecting sites that offer high-quality leads. The same is true for print advertising. Notifying Subscriber Services: Seek out research services such JETNET and AMSTAT, which keep track of the worldwide fleet of non-military jets and helicopters. When you inform these subscriber services that a helicopter is for sale, the information will be circulated amongst their dealer and broker network of subscribers. Email Marketing Campaigns: Some organizations, including AvBuyer, hold a list of persons who are in the aviation industry. For a nominal fee, these companies will create a mass email campaign to distribute amongst the opted-in recipients on their list.
The Logistics of Setting up a Deal
By this stage in the process, your goal is now to move the buyer towards making an offer. Throughout this process, you’ll want to keep the following steps and options in mind.
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Vetting Your Buyers: When a buyer approaches you, aim to be the most efficient and professional broker they receive information from. Find out what that buyer’s needs are and determine if they're serious enough about buying from your client. Entering Into a Contract: If the buyer makes an acceptable offer and you’ve settled on an agreement, you can begin to write up the basic conditions of the deal. You may choose to go directly into a contract if both parties are on the same page. Use a contract template and customize it to align with the specifics of your deal. Setting Up an Escrow: Over 90% of all the deals I’ve ever done have been through an escrow company. Setting up an escrow prevents a lot of headaches because the escrow company's job is to be neutral. They will follow the specifics of your contract and simultaneously release the money and the documents needed to transfer the title of the helicopter. Direct Exchange of Funds: It is also possible to facilitate a deal where payment is exchanged directly from one operator to another. In a case like this, it is reasonable for the broker to bill for commission afterwards. Parameters of the Inspection: The majority of deals require an inspection. Do not move forward with an inspection until the potential buyer has made a commitment in writing, or paid a deposit. Clear steps and expectations should be set up ahead of time to determine how and when an inspection will be carried out. Thoroughly discuss the scope of the 46 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
inspection (the last thing you need is for an unknown party to come in and disassemble your perfectly maintained helicopter over the weekend).
Details of the Contract
From my experience brokering both helicopter and fixed-wing aircraft, I have encountered damage during inspections, late payments, registration disagreements and components of the aircraft going missing. The problems I've had to solve while closing aircraft deals will give you an idea of why a professional and detailed contract is so important. Damage During Inspections: On one occasion, when a repair station was completing an inspection for one of my clients, they dropped the aircraft on the ground causing serious structural damage. Since I was working for the seller I needed to manage the situation in a way that would allow me to do the job I had promised to the seller. However, a section of the contract stipulated that if the aircraft was damaged during an inspection the buyer had the right to walk away with their deposit. On behalf of the seller, I was able to convince the insurance company to promise in writing that the aircraft would be repaired to its original, airworthy condition. This was enough to seal the deal with the buyer. The aircraft was fully repaired, and in the end, the buyers flew it for years afterward without incident. If I had been the buyer's broker, perhaps I would have advised them to walk away from the deal. Remember: there are always two sides to any situation, and then there's the contract. As long as the parameters of the contract are respected, all parties should be protected.
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“Prepare your data ahead of time, understand what’s in each contract, and know when to walk away from a disagreement.” Late Escrow Payments: I’ve had people pay into escrow several weeks later than they originally agreed, putting everybody involved on hold. Yet, in these cases the seller still doesn’t want to lose the deal and may agree to give the buyer a few more days. The key to managing late payment situations is communication. At the beginning of any deal, part of vetting a buyer includes observing their habits. If the lead starts out with a pattern of lateness and excuses, then the buyer may not be ready to commit but could be struggling to communicate that. Try to address this issue as soon as possible to reduce the chance of late escrow payments. Problems can also arise that aren't necessarily in the paperwork requiring both flexibility and creativity. Missing Parts: Emotions can run high when dealing with million-dollar transactions. Your clients may become hung-up on all sorts of mental distractions that are not essential to the deal. For example, many hundreds of emails once passed between a client and me regarding ground handling wheels that were originally photographed on the helicopter of interest. These ground handling wheels had gone missing. No one involved knew whether those wheels belonged to that aircraft, if they were only borrowed for the photo, or if they belonged to another aircraft altogether. It became the biggest headache and I lost much
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productivity going over the same issues again and again with my client. In a circumstance like this, it’s important to know that it may be worth simply gifting the item that went missing. Even if it is not your responsibility to cover the cost of doing so, your time and productivity can be more important elsewhere. Changes to the Timeline: Very rarely does everything fall exactly on the dates agreed in the contract. As with a late escrow payment, some flexibility should be allowed. However, your goal is to close the deal. If milestones aren’t being fulfilled anywhere near the dates in writing, you will need to check in with the buyer and ask why. Having all sides comply loosely with the agreed-upon dates will allow the deal to be closed within a reasonable timeline.
In Summary
Preparing a helicopter for resale requires you and your company to be both flexible and multifaceted in your skillset. Whether you are de-escalating an argument between two parties, or reviewing a 24-page aircraft sales contract on the fly, your goal should always be to close the deal in an amicable, timely way. Prepare your data ahead of time, understand what’s in each contract, and know when to walk away from a disagreement. ❙ More information from jetvend.com or email michael@jets.aero
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Importing Jets: Should you Leverage Offshore Registries?
Could an offshore aircraft registry help with the import and operation of a business jet? Cooling & Herbers’ Jessica Pownell discusses the upsides and the downsides to help provide a measured answer… lthough many aircraft owners still register their aircraft on the FAA Registry (or other large and long-standing registries), in recent years, an increasing number of aircraft owners have utilized – or have at least considered utilizing – smaller aircraft registries around the world. Though the FAA Registry (for instance) is a welldeveloped and well-regulated registry that allows for registration by both US citizen owners and nonUS citizen owners through either the non-citizen trust or the ‘based and primarily used in the US’ options, for various reasons, an aircraft owner may elect to place an aircraft on a smaller foreign registry. In particular, the speed and efficiency offered by these smaller registries can help accelerate a transaction as well as implementation of the new owner’s aircraft operations.
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Key Benefits of Foreign Aircraft Registries
Many smaller aircraft registries offer a lot of the same opportunities as the larger ones. These include: • • •
A lien registry An option to choose the aircraft’s specific registration number, and In some cases, options for reimbursements between certain affiliated companies, or to obtain a charter certificate (provided such operations comply with the laws of the countries within which the aircraft is operated) while also offering additional benefits.
As noted, smaller registries often operate quickly and efficiently and offer personalized and direct service. Many of these registries can process registrations and airworthiness inspections in as www.AVBUYER.com
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Jessica L. Pownell is an attorney with Cooling & Herbers, P.C. She focuses her practice in the areas of acquisition, sale, leasing, and registration and related regulatory matters. Contact Jessica via jpownell@coolinglaw.com
little as 1-2 days, which can be a major benefit to a new aircraft owner who is looking to close an acquisition and begin operating quickly. A number of the smaller registries are run like private companies with a focus on customer service and up-to-date technology. As many of the aircraft on these registries are owned and based around the world, registry personnel typically are multilingual and are often available during flexible hours. Some registries have office locations outside of the registry country to serve registrants located in different areas. Some registries have online portals where registrants can manage their aircraft records, approvals, and other documents, and many also value the privacy of their registrants’ information and preserve such privacy whenever possible; some have well-developed legal systems with laws that specifically protect the confidentiality of registrant information. Smaller registries can also offer cost savings – for instance the Bermuda Registry recently announced an approximately 40% reduction in its Certificate of Airworthiness fees for corporate and General Aviation aircraft. Perhaps more importantly, however, some smaller registries accept Supplemental Type www.AVBUYER.com
Certifications (STCs) from both the FAA and the European Aviation Safety Agency (EASA), which can tremendously reduce the costs associated with transferring an aircraft to the new registry. As an example, aircraft modifications may have been made to some previously FAA-registered aircraft that required STCs. While these STCs were acceptable to the FAA, they may not be acceptable to other agencies (i.e. EASA). Any STCs not acceptable to an applicable new registry could be expensive to remove or reengineer. In fact, it’s sometimes the case that transfer to another registry is difficult, prohibitively expensive, or would take an inordinate amount of time to accomplish if there is an unacceptable STC. This burden is lifted if a registry will accept the applicable FAA or EASA STCs.
Common Registry Options & Typical Requirements
Aircraft owners considering a smaller registry have a number of registry options from which to choose, including Aruba, Bermuda, the Cayman Islands, Guernsey, Isle of Man and San Marino. The aircraft registration process for these registries is fairly similar to the FAA aircraft registration process (though, as noted, it may have some additional benefits). Generally speaking, an aircraft must meet the applicable registry’s technical requirements for registration, and must receive a Certificate of Airworthiness from the registry. Similar to the FAA Registry, smaller registries will typically require that the aircraft be inspected by an authorized individual to confirm that it meets that registry’s requirements for issuance of a Certificate of Airworthiness. The aircraft’s owner and operator must also meet the registry’s requirements, as applicable, which may include a due diligence financial and legal assessment. Eligible registrants typically include entities formed in the applicable country and which have their registered office or principal
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“...there are a number of benefits to registering an aircraft on a small, foreign aircraft registry.” place of business in the country. Many times, the applicable aircraft owner or operator can meet this requirement by forming a company in the applicable country of registration and then either leasing or transferring ownership of the aircraft to that company.
Considerations when Operating a ForeignRegistered Aircraft in the US
Despite the benefits of registering an aircraft on a foreign registry there are a few downsides to consider, too. For example, a private aircraft placed on a registry other than the FAA – even if owned, controlled, or operated by a US citizen - is a ‘foreign civil aircraft’ under FAA regulations and cannot be operated for remuneration or hire to, from, or within the United States. Moreover, the exceptions provided under 14 C.F.R. § 375.37 that allow for certain cost
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reimbursements for US-registered foreign civil aircraft do not apply (as the applicable ‘foreign civil aircraft’ is foreign-registered, not US-registered). And an aircraft’s presence in certain US states – particularly if the aircraft is based in a US state – may trigger sales or use tax in such states. The aircraft may also still need to be registered in the US state in which it is based despite its foreign registration.
In Summary
For some owners and operators who have considered and understood the potential downsides, there are a number of benefits to registering an aircraft on a small, foreign aircraft registry. Indeed, the speed and efficiency provided by such registries may help accelerate a transaction and help a new aircraft owner or operator to quickly begin operations More information from www.coolinglaw.com T
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Overview of the GAO Report on the FAA The US Government Accountability Office released its report on the FAA Registry recently, but what are some of the key findings, and what questions do they raise regarding aircraft registry costs and efficiencies going forwards? NAFA shares an overview… n March 2020, at the request of Congressmen Stephen Lynch and Peter King with the Subcommittee on National Security and the Committee on Oversight and Reform, the US Government Accountability Office (GAO) released its long-awaited report on the FAA Registry’s ability to handle fraud and abuse risks in aircraft registrations. As the title of the report clearly implies, the GAO found that the FAA Needs to “Better Prevent, Detect, and Respond to Fraud and Abuse Risks in Aircraft Registration”. More specifically, however, the report found that the FAA needs to better review and vet the actual owners of aircraft. The FAA currently takes filed documents at face value, and records them if they meet certain requirements as set by the FAA itself. While the rest of the industry has been subject to more demands to Know Your Customer, and to adhere
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to KYC and OFAC guidelines, the FAA has remained immune. This report suggests that it is time for the FAA itself to do more due diligence and better vet the entities registering aircraft on its registry. There is also a clear need to allow law enforcement agencies more access to the data contained in the FAA registry. Currently, registration information is mostly provided in .pdf format which is not easily searchable or accessible. Many law enforcement agencies expressed frustration with an inability to have easy access to this information, and the report outlines opportunities for the FAA to be a center point to house data that could help law enforcement agencies to not only have better access to information, but to potentially allow for better cross-agency coordination to crack down on illegal activity involving the registration and use of General Aviation aircraft.
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Opaque Ownership Structures
The report seems to focus on increasing transparency in ‘Opaque Ownership Structures’ for registering aircraft, which the GAO believes are at the highest risk for fraud and abuse. Opaque Ownership Structures are legitimate business structures that are widely used by corporations and individuals to facilitate commerce as well as for asset and tax management. However, they lack transparency related to aircraft registrations and can create challenges for safety and lawenforcement investigators seeking information about beneficial owners to support timely investigations. These ownership structures can include: • • • • •
Shell companies, especially in cases where there is foreign ownership that is spread across jurisdictions; Complex ownership and control structures involving many layers of shares registered in the name of other legal entities; Formal nominee shareholders and directors where the identity of the beneficial owner is undisclosed; Trusts and other legal arrangements that enable a separation of legal ownership and beneficial ownership of assets; Use of intermediaries in forming legal entities, including professional intermediaries.
It is worth noting that the report specifically excludes publicly traded companies, shifting the focus of these security measures away from commercial airlines and towards the General Aviation industry.
Executive Action Recommendations & Issues
On pages 58 and 59 of the report, the GAO outlined 15 recommendations for Executive Action by the FAA. Many of the recommended improvements to the FAA system are expected to be implemented in the FAA’s modernization project, slated to be completed by October 2021. Generally speaking, the modernization project is expected to help streamline and automate the aircraft registration process, and make the FAA records available to the public at all times. The GAO report includes recommendations for using this new system to improve the FAA’s vetting process of owners registering aircraft on the FAA’s system, and using that technology to allow law enforcement officials more access to registry data. Initial conversations with the FAA indicate it is on track to complete this project by the stated October 2021 deadline. While the GAO has many recommendations to the FAA, there are still many questions to be answered, among which are: •
How much transparency will there really be? Will all aircraft ownership information be made available to the public, or only some? Will
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•
•
•
there be sections of registry data that remain ‘private’ and only made available to authorized government agencies? That remains to be seen. The report is clear that the $5 filing fee set in 1964 is not enough to cover even today’s operating expenses, much less the costs to modernize the system. The FAA has been talking about increasing registration costs for years, so an increase can probably be expected. The question of how much remains unanswered. How much will it cost to register an aircraft in the future? Time is money, so questions about increases in registration time also remain. If the FAA will be doing more vetting of its registrants, how much time will that take? How much longer will it take to register an aircraft with the FAA, and what will this do to aircraft closing timelines? The report expresses clear concern for the FAA’s ability to issue Declarations of International Operations without knowledge or consent of specific law enforcement agencies. The FAA currently expedites requests for international flights on a daily basis for the General Aviation community, but will it be able to do that in the future? Or will there be a more stringent system of checks and balances required to issue Declarations of International Operations? How long will it take to finally have one issued?
The FAA has yet to officially respond to the GAO’s report, but has updated its website on the CARES Initiative to enhance and modernize the FAA registration services. To learn more about it, visit: https://www.faa.gov/about/initiatives/cares/. Furthermore, on March 30, 2020, the FAA issued its Third Request for Information from the industry. Participate here: https://beta.sam.gov/opp/8b7d6e20940d4d5b8b 4e8e9e76a991b3/view. NAFA continues to monitor the proposed changes and the FAA’s eventual response, and will report those to its membership. In the meantime, the full report can be found here: https://www.gao.gov/assets/710/705505.pdf. More information from www.nafa.aero T www.AVBUYER.com
Hatt & Associates July.qxp_Layout 1 15/06/2020 12:48 Page 1
2007 Falcon 2000EX EASy II
S/N: N331HA Reg: 117 5,458.4 hours since new 3,223 landings Engines enrolled on ESP Gold, APU enrolled on MSP Gold Next Gen Avionics FANS 1/A,
CPDLC, ADSB-Out, TCAS 7.1 Interior Refurb completed by West Star - Grand Junction March 2019 Fresh Paint completed by Stevens Aviation - April 2020
Make Offer
E, F, and G Insp. Completed in September2016 by Standard Aero Teflon Coating completed in 2017
Unique in Experience, Global in Scope. 2016 King Air 350i S/N: FL-1040 • Asking Price: Make Offer • 992.9 hours since new • ADS-B Out • Aircell ATG-5000 WiFi • Pre-Buy Assurance Program completed
April 2019 by Textron - Tampa
2009 Hawker 4000 S/N: RC-24. Reg: N308HQ • Asking Price: Make Offer • 1,930.4 hours since new • Engines enrolled on ESP Gold and APU enrolled on MSP Gold • Next Gen Avionics ADS-B Out, TCAS 7.1 • Delivered with fresh Pre-Buy from MCAS in Wichita, KS • Paint touch-up January 2020
+1.303.790.1050 hattaviation.com
1999 Cessna Citation X S/N: 750-0094. Reg: N84EA • Asking Price: $2,450,000 • 7,390 hours since new • Engines enrolled on RRCC • FMS 6.1, WAAS, TCAS 7.1, ADS-B and Aileron Re-Gearing Mod • US Owned and Operated • New Interior in 2014, New Exterior in October 2016
Hatt & Associates: Global Aviation Sales Acquisitions | Brokerages | Consulting Scottsdale | Denver | Breckenridge | Wichita | Dubai | Calgary | Miami
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René Armas Maes is an international consultant and aviation professional with 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.
How to Evaluate a Business Aircraft Lease Solution What are the aircraft lease options available today?
René Armas Maes shines a spotlight on the leasing market,
highlighting which options make sense, for whom, and when… n uncertain economic times, leasing a business aircraft could be a short- to medium-term solution for enjoying the many benefits Business Aviation offers at a fraction of the cost. This option comes without substantial debt or longer-term commitments. With coronavirus fears prominent regarding the use of airports, travel restrictions, and social distancing recommendations by health authorities, could this be an opportunity for a larger base of users to benefit from Business Aviation? Certainly the option of leasing a business aircraft could be very attractive for some. But first, it’s important to understand more about leasing business aircraft.
I
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What are the Types of Leases?
The two most common business aircraft lease types are dry and wet leases, though other types exist. We’ll explore these here… Dry Lease: Under a dry lease, no flight crew is supplied, and neither are maintenance or insurance providers. These are left to the lessee to arrange. Typically, dry lease contracts range between two to five years. Wet Lease: These are intended for shorter periods of between a month and two years. Wet lease contracts include at least one crew, along with maintenance and insurance. www.AVBUYER.com
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Capital Lease: A capital lease has the economic characteristics of asset ownership for accounting purposes, and therefore the lessee can take advantage of tax benefits. These type of agreements come with an option to own the asset at the end of the term. Operating Lease: Allowing a lessor to take advantage of tax benefits associated with ownership, the operating lease also allows a lessee to eliminate the potential risks associated with aircraft residual values, since at the end of the lease term, the operator hands the aircraft back to the lessor. Synthetic Lease: Ultimately, a synthetic lease is an operating lease for accounting purposes and a capital lease for tax purposes. This allows the lessee to take advantage of tax benefits while the lessor remains the owner for accounting purposes. While the above list gives a very brief outline of the main types of business aircraft lease, other leasing arrangements could include master leases and sub-leases, among others. For oversight purposes, aviation regulatory bodies need to understand and clearly identify which party (lessor or lessee) has operational control of the aircraft, and the intended type of operation as different rules apply depending on whether the operation is commerciallyoriented (Part 135), privately (Part 91), or both. Sale & Lease Back: While it’s a common instrument used by airlines to increase liquidity, corporations or private individuals may also choose to sell their business jets to a lessor or financial institution and lease it back without any interruption to their operations. This solution can allow current business aircraft users to continue having access to the aircraft under weaker economic conditions. Nevertheless, owners considering this option need to be careful about the timing of the transaction, and the condition of the pre-owned aircraft inventory as a larger than expected loss could be anticipated if market conditions are less than ideal. In such circumstances, it might be better to continue operating the jet than selling and leasing it back.
Which Aircraft Lease Option Makes Financial Sense?
Under several circumstances, leasing a business jet can be the right solution. Here are some considerations when deciding whether an aircraft lease makes sense for you…
Capital Outlay and Cash Flow Requirements: An entity or a private individual might not have the financial strength and desire to purchase a whole jet, but still have the need of flying a number of hours annually. A short-term lease is less expensive than outright aircraft ownership, therefore it can be the right solution to preserve cash for working capital requirements while one reinvests financial resource and expands a business where stronger returns can be achieved. Flexibility and Peace of Mind: Under a leasing agreement, a lessee has the flexibility to cancel a contract before the term www.AVBUYER.com
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finishes (although penalties will apply), thus enhancing convenience. Moreover, a lease contract can be renewed and an option to purchase the assets at the end of the term can be negotiated. Leasing an aircraft is a great opportunity to experience the benefits of Business Aviation before moving up a level into joint or full aircraft ownership. And leasing might be advantageous to those whose requirements could change (in terms of average stage length and mission). Taxes, Depreciation and Off-balance Sheet Treatment: As mentioned, capital and synthetic leases allow lessees to take advantage of tax benefits without aircraft ownership. In addition and by using bonus depreciation, the owner of the asset (the lessor) is able to write-off tax depreciation, while the lessees can negotiate and benefit from lower lease rates. This lessor write-off can be done not only for new aircraft, but also for pre-owned aircraft acquired and placed into service after Sept. 27, 2017, and before Jan. 1, 2023. In addition, based on the latest amendments made to the Financial Accounting Standards Board (FASB), leases with contract terms up to one year can still be treated as offbalance sheet expenses allowing a lessee to treat a lease as an off-balance-sheet item. Residual Value Risk: A business jet typically depreciates between 25% and 30% during its first year of operation, and depreciates at a rate of 3-5% per year thereafter. With a leasing contract, there is no risk associated with aircraft residual values as, at the end of the term, the aircraft is returned to the lessor. Aircraft residual values can be highly impacted by a number of conditions including the pre-owned aircraft market, fair market values and the timing a jet is put in the market for sale. Because of those uncertainties even in the short-term, leasing an aircraft could be the preferred option for some. Technology: At the end of a lease contract, the aircraft can be swapped for a more modern, technologically advanced aircraft.
When Does an Aircraft Lease Make the Most Sense?
Typically, leasing a business jet can be an advantageous proposition for corporations and private individuals that fly between 100 and 150 hours (or more) annually, and who seek flexibility and convenience at a reasonable hourly cost, compared to other types of private jet solutions. To structure a lease contract, lessors require: • • •
A refundable lease security deposit, A monthly lease fee covering indirect operating costs, and An operating hourly fee.
Other additional fees could include fuel tax surcharge, international fees, etc. In addition, asset return and usage provisions will be included in the contract, as well as reporting requirements (such as flight and block times).
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AVBUYER.com FIGURE A: Potential Lease Solution vs. User Profile Needs & Wants Corporation A
Individual A
Corporation B
Individual B
• Profile
• Profile
• Profile
• Profile
• Solution:
• Solution:
• Solution:
• Solution:
o One yr. upcoming business expansion project requires to mobilize executives o ROI expected 30% o Leasing rate:5% o Aircraft ownership is viewed as non-core assets and shortterm solution o Wants to minimize upfront cost but needs 125 hrs./yr.
o Three yr. upcoming business expansion project o Avg. stage length & cabin specs. might change by year 2 o Privacy associated with competition is a concern o Corporation earns 40% on investment, rental payments at 8%
Wet lease
o Residual value riskaverse investor o Wants to lower upfront cost o Needs 150 hr./yr. for 2 yr. o Wants guaranteed departure times in 6 hr. notice that previous charter operator never met o Not the time to commit long-term
Operating lease
Dry lease
It’s also important to note that leasing a business jet can also be a solution for current business aircraft owners. A short-term wet lease solution can assist aircraft owners during prolonged Aircraft On Ground (AOG) events, periods of extended maintenance and refurbishment, and even while waiting for an aircraft to be delivered by the manufacturer. Figure A highlights when a business jet leasing solution might make sense, based on different users’ needs and wants.
Why Lease Instead of Charter?
So why lease a jet instead of charter one? Although chartering an airplane could be least expensive option, with a lease solution the jet can be conveniently located at your home airport, thus reducing any repositioning costs. Other business jet solutions include fractional ownership, joint or sole aircraft ownership (managed or
o Concerns to share space due to health situation (COVID-19) o Unease to invest in assets due the weak economic outlook o Needs an early exit clause if market conditions deteriorate o Wants to avoid large debt payment o Tax benefit is important
Synthetic lease
not), right up to dedicated in-house flight department (see Figure B). Ultimately, leasing agreements are less expensive than outright ownership, dependent on a number of circumstances including aircraft utilization and others). They provide greater liquidity in the short- and mediumterm. But over the long run, leasing will generally costs more than whole aircraft ownership. It’s important to remember that each solution has its pros and cons, and should be evaluated in terms of upfront cost, long-term commitments, size of debt payment, total hourly cost per option, guaranteed departure at short notice, residual value risk, opportunity cost, and privacy (to name a few). You’d be well advised to seek the guidance of an expert in the field to work through your own Business Aviation needs when deciding whether aircraft lease makes sense for you… T
FIGURE B: Leasing vs. Other BizAv Solutions (Based on Number of Annual Flight Hours) Today, there are a number of Business Aviation options 1-10
Ad-hoc Charter
Block charter agreements
Travel Card programs
100 LEASING
200
400+
Fractional business < 225
Joint ownership managed operation Joint-ownership In-house operation Sole ownership In-house operation 250+
t ad re ou Re Mo Ab
BUSINESS AVIATION FINANCE
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1st Source February.qxp_Layout 1 18/05/2020 14:22 Page 1
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Rohit Jaggi holds airplane and helicopter licenses and frequently conducts flight tests of airplanes and helicopters for print and video. He held a number of news editing and reporting posts with the Financial Times before becoming a freelance writer. Find out more via rohitjaggi@gmail.com
Financing an Aircraft? Did You Check the Small Print? When it comes to the small print in an aircraft financing agreement, what are the bits you canâ&#x20AC;&#x2122;t afford to skip and why? Rohit Jaggi asks the industryâ&#x20AC;Ś
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e’re told to read the small print all the time. Yet we don’t. With the burgeoning of small print explanations and disclaimers online, and the simplicity of an ‘I agree’ button to click, it’s quite possible we are doing it even less. Not that long ago, Londoners were promised free Wi-Fi connectivity if they met conditions in the small print of a contract they had to agree to. Those conditions clearly stated that the recipient “agreed to assign their first-born child to us for the duration of eternity”. Quite a few people signed up. One might hope that those signing a multimillion-dollar contract for a loan to buy an aircraft might take a bit more care than someone looking for a free Wi-Fi signal to continue watching football on their phone. Not all do, however, and Gary Crichlow, director, Aviation Finance at London-based finance brokerage and advisory firm Arc & Co, explains why buyers need to beware. “Without putting too fine a point on it, aircraft are potentially lethal pieces of kit, and everything about them comes with a price tag with a lot of zeros attached,” he says. “With the stakes that high, it's perfectly reasonable to expect financiers to do everything they can to protect their interests and mitigate risk by baking provisions into the financing contract.” So it’s important for borrowers to read the small print, says Paul Jebely, who leads the private wealth and asset finance practice of law firm Pillsbury Winthrop, because for them “it often contains landmines”.
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All Responsibility With the Owner/Lessee
Aoife O’Sullivan, partner and co-founder of the Air Law Firm, says it’s important to understand that, while with a lease the lessor owns the aircraft and with a loan the borrower owns the asset, “in reality, all responsibility for the aircraft rests with the lessee or owner. “Whoever signs the loan or lease is duty-bound to comply with regulation, and is duty bound to make sure the aircraft is operated properly.” Even with a tripartite agreement, where an operator is the third party, if the operating company fails to honour the terms “the owner/lessee still is responsible,” she says. “The buck will always stop with the owner.” All is not lost, though. Crichlow notes, “financiers who specialize in aviation, in my experience, by-and-large stick to broadly reasonable requirements that are based both on expertise gained by hard experience in the sector, and by pragmatic commercial nous. “This is why it's key to have equally specialist expertise on your side when negotiating a contract, so that you have a clear understanding as to why certain small-print provisions are there, and www.AVBUYER.com
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can take a fully educated view on the practical ramifications of accepting (or rejecting) them.”
How Stringent are the Requirements?
Lenders are keen to protect the value of their asset. That’s one reason many require aircraft to be under maintenance contracts. It’s important to understand how stringent such requirements are, though – and whether allowing a maintenance contract to expire, for example, could require the lender to insist on early repayment of the loan. There may be limitations on use, too. An owner who starts out intending to use the aircraft for his or her own use but then wants to defray some of the costs by offering it out to charter might find that is against the provisions of the loan. Crichlow says it is vital to “keep an eye on the section of the contract setting out default provisions - what events would trigger an event of default, what the financier's obligations are leading up to the declaration of an event, and what powers the financier can exercise if an event is declared.” The most obvious trigger for a default is if the borrower or lessee stops paying, says O’Sullivan. “But a default could also arise if the aircraft isn’t maintained properly,” she says, “or if it’s flown into a jurisdiction it isn’t allowed to fly into.”
Be Clear About Your Obligations
It is important also to be clear about your obligations at maturity, says Crichlow. “Particularly for operating leases,” he says. “Poorly drafted or ambiguous return conditions can strongly tip the balance of favor from one party to another.” Tax is another issue. Usually, indemnities written into contracts mean that any tax liabilities become the owner’s responsibility. Brexit has retreated from the front of people’s minds, but where there’s potential that it could impact your aircraft, checking the small print with a Brexit focus is a good idea until all the issues are resolved. Even apart from the UK’s relationship with the EU, keeping an eye on cross-border and jurisdictional issues would be wise. And it’s worth bearing in mind that some jurisdictions do not recognise mortgages over aircraft, and several require substantial stamp duty payments for mortgages. Enforcement is also key – under some local laws a court-ordered auction is the way mortgages are enforced.
The COVID Effect
There are a few specific issues that have surfaced in the wake of the shock of the Coronavirus global pandemic. Just a few weeks ago many experts were confident about the trajectory of aircraft values. “Aircraft are considered to maintain their future value relatively well compared to other assets, and they have a predictable likely market value during the term of any financing,” were the words of one
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“One might hope that those signing a multi-million-dollar contract for a loan to buy an aircraft might take a bit more care than someone looking for a free Wi-Fi signal to continue watching football on their phone.” finance specialist, adding, “Many aircraft models are easily re-marketable.” Now, however, aircraft values could be in freefall. While it’s hard to be clear on prices and values because relatively few deals are going through, assumed slides in value have tripped loan-to-value ratios. Thus borrowers are finding that they could be in for an uncomfortable margin call by their lender. Fortunately, most lenders have not yet done so. Another effect of the COVID-19 crisis has been an awful lot of borrowers finding that their contracts with lenders did not include a force majeure clause, or any other way of dealing with an extraordinary event. In the future contracts might have a clause to deal with the unexpected, but it would be wise to check – and to make sure any such wording is not weighted in the wrong direction.
The All Important Small Print Aid
The crucial thing is to get good advice from an expert in the field – preferably the specific field. “When it comes down to it, financiers operate in both the legal and the pragmatic spheres, and they tend to prefer to operate in the latter if they can,” Crichlow points out. In other words, the more you can anticipate their concerns, the more you will understand their small print. 64 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Some lenders, especially in the US (and particularly non-bank lenders) can be very aggressive, says Jebely, “and occasionally obnoxious” in asserting that their terms are not negotiable. Nevertheless, he says, it is always worth focusing on “default triggers, related remedies and grace periods, affirmative and negative covenants as well as aircraft preservation requirements and restrictions. “This is, of course, is in addition to the key commercial and economic terms, including loanto-aircraft-value ratios and default interest.” As O’Sullivan says: “We try to help individuals or corporates delegate responsibilities that they cannot possibly know about.” And as for the fate of those first-borns? Fortunately the provision of the Wi-Fi hotspot, with its rather onerous but legally cast-iron “Herod clause” in the small print, was a test carried out by a Finnish security company to see how alert Londoners would be. A significant proportion were not. The Finns, however, were forgiving. “We have yet to enforce our rights under the terms and conditions,” the company said. “As this is an experiment, we will be returning the children to their parents.” T www.AVBUYER.com
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The key to simplifying your next aircraft transaction is our experience. \ Business Aviation Simplified.
The goal of every business aviation transaction is the same—to get people from point A to point B as quickly and efficiently as possible. On the other hand, the needs of each business aviation client are unique. Which is why we focus on creating customized financial solutions designed to meet your unique requirements. From freeing up cash to meeting aggressive deadlines, our goal is simple: to provide the most straightforward process in the industry and make aircraft financing simpler. It’s what happens when you’re only focused on one thing.
Leasing & Lending Solutions 844.436.8200
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GJCP 24438 - AvBuyer - June 2020.indd 1
5/7/20 11:52 AM
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JET COMPARISON
Jet Comparison: Legacy 650E vs Gulfstream G280 vs Challenger 350 Now available from the OEM at comparable price points, how does the larger Embraer Legacy 650E compare with the Gulfstream G280 and Bombardier Challenger 350 private jets? Mike Chase explores in this month’s Jet Comparison article… hen a manufacturer lowers the price of an aircraft (as Embraer has for its Legacy 650E), will it stimulate more demand? The purpose of the following comparison is to consider how much additional payload, range, cabin size and overall productivity is available, and whether it follows that just because a larger aircraft is priced competitively, it is automatically the right aircraft for the buyer. What other factors play into the decision to upsize? These questions will be considered over the following paragraphs
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Embraer Legacy 650/650E
Announced in 2009, the original Embraer Legacy 650 is a longer-range version of the Legacy 600 capable of flying 3,919nm nonstop with four passengers. Almost 100 units were produced (96 were in operation at the time of writing), before Embraer upgraded the model as the Legacy 650E (the ‘E’ representing Evolution) in 2017. The Legacy 650E includes Primus Elite avionics from Honeywell, and it carries up to
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14 passengers in three cabin zones. Compared to the Legacy 650, the aircraft features automation, technology updates and restyled seats among other things. A ten-year, or 10,000 flight-hour warranty and a lower price is now offered by Embraer, and the price of the Legacy 650E has been reduced from $31m to $25.9m. Currently, there are 96 Legacy 650 jets and 13 Legacy 650Es in operation and, as of May 2020 Europe accounted for the largest combined Legacy 650/650E fleet percentage (38%), followed by Asia (36%) and North and South America (12% each), according to JETNET. Interestingly, Legacy 650/650Es have a large percentage (38%) of fleet owners, with Air Hamburg being the largest, with 15 aircraft.
Gulfstream G280
Entering service in 2012, the super-midsized G280 is an improved G200 model (by way of a 288nm increase in range, 4,150 pounds of added MGTOW, and a 210-foot reduction in balanced field length). Moreover, the
Gulfstream G280 has four more side windows than the G200 and improved insulation, aiding the cabin environment. The performance improvements owe to a re-designed wing (based on that of the G550), a larger tail, and Honeywell HTF7250G engines, each offering 1,584lbst. Other improvements include additional cabin length and Honeywell’s Plane View 280 glass cockpit avionics package. As of May 2020, there were 193 G280 aircraft in operation worldwide (191 are wholly owned), and North America has the largest fleet percentage (84%), followed by Asia (6%) and Europe (7%), for a combined total of 97%, per JETNET data.
Bombardier Challenger 350
Launched in May 2013, the Bombardier Challenger 350 has different engines, new winglets, a different interior, and new avionics compared to the original Challenger 300. Bombardier launched the Challenger 350 to better compete in the market. At the time of writing, there were 342 www.AVBUYER.com
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HOW MANY
EXECUTIVE
SEATS
EMBRAER Legacy 650E
(Manufactured between 2017-Present)
13
$25.9 Million
vs.
(2019 Model)
GULFSTREAM
8
G280
(Manufactured between 2012-Present)
$24.5 Million
vs.
(2019 Model)
BOMBARDIER
8
Challenger 350
(Manufactured between 2014-Present)
$26.7 Million (2019 Model)
WHICH OF these jets WILL COME OUT ON TOP HOW MUCH
Legacy 650E
RUNWAY
Gulfstream G280
DO I NEED?
2500
HOW FAR
CAN WE GO?
(Nautical Miles. 4 Pax)
3,919
Gulfstream G280
3,646 3,250
Challenger 350
5,160
Challenger 350
(Balanced field length, ft)
Legacy 650E
5,804
3000
5,090 3500
4500
4000
CAN WE TAKE?
(Lbs) 4,939
Legacy 650E Gulfstream G280
4,000 3,400
Challenger 350
5500
6000
LONG RANGE CRUISING SPEED? Legacy 650E
(Knots)
425
Gulfstream G280
488 459
Challenger 350
459
HOW MANY
HOW MANY
WHAT’S THE
OPERATION?
EACH MONTH?
PER HOUR?
UNITS IN
NEW/USED SOLD 1 (7.3%)
109 341
190
6 (3.5%)
4 (8.3%)
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6500
WHAT’S THE
HOW MUCH
PAYLOAD
5000
VARIABLE COST
$2,780
Legacy 650E
Gulfstream G280
$2,420
Challenger 350 $2,260
12-Month Average Figure (% = Global Fleet For Sale)
Sources used: OEMs, Conklin & de Decker, JETNET, B&CA, Chase & Associates
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JET COMPARISON
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Table A - Payload & Range Comparison Legacy 650E Gulfstream G280 Challenger 350
53,572 39,600 40,600
20,600 14,600 14,045
MTOW (lb)
Max Fuel (lb)
4,939
4,000
Max Payload (lb)
3,400
1,910
950
1,905
3,076
2,577
2,719
MAX P/L w/avail. fuel IFR Range (nm)
Avail Payload w/Max Fuel (lb)
Source: OEMs, B&CA.
Chart A - Cabin Comparison Bombardier Challenger 350
6.92 ft
6.08 ft
6.25 ft
Gulfstream G280
6.00 ft
Embraer Legacy 650E
7.20 ft
7.17 ft
Source: UPCAST JETBOOK
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Chart B - Range Comparison
Legacy 650E Gulfstream G280 & Challenger 350& &
'
&&&&&&& &&&&&&& &&&&&&&
3,919 nm (w/4 Pax) & &&&&&&&&&&&: & 3,646 nm (w/4 & && Pax) & & 3,250 &nm &&&&&& (w/4 Pax)
& & &
& & &
& & &&&&&&&&&&&&&&
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Challenger 350 aircraft in operation worldwide, 235 of which were wholly owned and 103 of which were fractionally owned, according to JETNET. One Challenger 350 has been retired. North America is home to the largest Challenger 350 fleet percentage (74%), followed by Europe (19%). Together these regions account for a combined total of 93% of the world’s fleet.
Payload & Range
The data contained in Table A ( left) are published in the June 2019 edition of B&CA. As we have mentioned previously, potential operators should focus on payload capability as a key factor. The Legacy 650E ‘Available payload with Maximum Fuel’ at 1,910lbs is only slightly greater than the Challenger 350 (1,905lbs), but almost twice that of the Gulfstream G280 (950lbs).
Cabin Cross-Sections
Chart A (left) depicts the cabin cross-sections of the Legacy 650E, the Gulfstream G280 and the Challenger 350. As shown, the Gulfstream G280 business jet has greater cabin width at 7.2ft and height at 6.25ft (albeit with a dropped floor aisle). However, the cabin length for the Legacy 650E is significantly more than the rest of the field, at 49.8ft. Overall, the Legacy 650E provides more cabin volume (1,656 cu ft) compared to the Gulfstream G280 (935cu.ft) and the Challenger 350 (860cu.ft). Typical executive seating for the G280 is nine, the Challenger 350 is 10, and the Legacy 650E is 13.
Range Comparison
As depicted by Chart B (left) and using Hamburg, Germany as the origin point, the Legacy 650E (3,919nm) shows more range coverage than either the Gulfstream G280 (3,646nm) or the Challenger 350 (3,250nm). Meanwhile, the maximum certified ceiling is 45,000ft for the Gulfstream 280 and Challenger 350, whereas the Legacy 650E has a lower ceiling at 41,000ft. Note: For business jets, ‘four pax with available fuel’ represents the maximum IFR range of the aircraft at Long-Range Cruise with four passenger seats occupied. NBAA IFR fuel reserve calculations are for a 200nm alternate. The lines depicted do not include winds aloft or any other weather-related considerations.
Powerplant Details
Source: Chase & Associates
n S
Cruise with NBAA IFR alternate fuel reserve calculation for a 200
68 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
The Legacy 650E is powered by two RollsRoyce AE3007A2 engines with a thrust rating of 9,020lbs. The Gulfstream 280 is powered by two Honeywell HTF7250G engines with less trust rating (7,624lbs). Lastly, the Challenger 350 is also powered by two
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7
Leading Edge 8 to view July.qxp_Layout 1 16/06/2020 10:05 Page 1
2011 Challenger 300 s/n 20337
2009 Hawker 900XP s/n HA-108
New Paint & Interior May 2020, 96 Mo. Inspection c/w Jan 2020, GoGo L5 Avance Hi-Speed Data, For Sale or Lease
2,400 Hours TT, Engines & APU on MSP Gold, Immaculate Paint & Interior by Duncan Aviation June 2017, GoGo AVANCE L5 Wi-Fi, WAAS/LPV
1999 Hawker 800XP s/n 258400
2018 Gulfstream G500 s/n 72014
Engines & APU on 100% JSSI, ATG-5000 Wi-Fi, Currently Part 135, ADS-B w/ WAAS & LPV
U.S. Registered, Engines on P&WC PurePower Premium, APU on MSP Gold, Recent Price Reduction
2011 Gulfstream G550 s/n 5312
2007 Citation CJ2+ s/n 370
Engines on RRCC, APU on MSP Gold, 14 Pax Aft Galley Universal Floorplan w/ Fwd Crew Rest Area
Low Time – 1,535 Hours TT, Collins Pro Line 21, Two U.S. Owner Pilots Since New, Looks Like New
2013 Gulfstream G280 s/n 2013
2011 Challenger 605 s/n 5858
Hallmark 10 Pax Configuration, Engines & APU on MSP Gold, GoGo ATG-5000 WiFi, ADS-B Out v2 and TCASS-II w/ Change 7.1
One U.S. Owner Since New, 12 Pax Floorplan, ATG-5000 Gogo Biz Wi-Fi, Operated & Maintained Part 135
Leading Edge Aviation Solutions is one of the world’s premier private aviation brokers/dealers with 850+ aircraft transactions, 50+ years of experience & over $10 billion in aircraft transactions. Not just aircraft brokers, they offer a deep suite of service that can be employed long before and long after any aircraft transactions are contemplated.
AirCompAnalysis JULY20.qxp_ACAn 16/06/2020 17:14 Page 4
JET COMPARISON
AVBUYER.com
Chart C – Variable Cost Comparison
J
Honeywell HTF7350 engines each offering 7,323lbst.
Total Variable Cost
Legacy 650E
The ‘Total Variable Cost’ illustrated in Chart C (left) is defined as the cost of fuel, maintenance labor, scheduled parts and miscellaneous trip expenses. The Total Variable Cost for the Legacy 650E is $2,780/hour, which is 14.9% more expensive than the Challenger 350 ($2,420/hour). The G280 has the lowest variable cost at $2,260/hour, per JETNET.
$2,780
Challenger 350
$2,420
Gulfstream G280
$2,260 $1,000
$0
$2,000
$3,000
Aircraft Comparison Table
$4,000
US $ per hour
Source: JETNET
Table B - Market Comparison Legacy 650/650E Gulfstream G280 Challenger 350
425
459
459
1,656
Long Range Cruise Speed (Kts)
935
860
Volume Cabin 28,000 30,300 Cu Ft
30,800
3,919 3,646 3,250
$25.9 $24.5 $26.7
4 PAX w/available Fuel IFR Range nm
2019 Price 'New' per B&CA ($m)
96/13
190
341
7.3%
8.3%
3.5%
% For Sale
In Operation
1/>1
4
6
Average Sold Per Month*
* Average Full Sale Transactions in the past 12 months as of May 2020; Source: JETNET. Date courtesy of B&CA; JETNET
Table B (middle, left) contains the new prices (per B&CA) for a 2019 model Legacy 650E, Gulfstream G280 and Challenger 350. The long-range cruise speed and range numbers are sourced from B&CA, while the cabin volumes are from Conklin & de Decker. The numbers of aircraft in operation, percentage for sale, and average sold are all from JETNET. At the time of writing, the Legacy 650 had 8.3% of its fleet for sale, although there were no 650E models on the market. This compared with 7.9% of the Gulfstream G280 fleet, and 3.5% of the Challenger 350 fleet for sale. All three aircraft could be described as being a sellers’ market. The average number of new and used transactions (units sold) per month over the previous 12 months for the Legacy 650/650E (combined) is one unit, compared to four for the Gulfstream G280 and six for the Challenger 350.
Maximum Scheduled Maintenance Equity
Chart D - Maximum Scheduled Maintenance Equity Embraer Legacy 650E Assumed Annual Utilization: 247 Flight Hours Average Maximum Maintenance Equity: $4,750,272
Charts D (left), E and F (overleaf) display the Embraer Legacy 650E, Gulfstream G280 and Bombardier Challenger 350 respectively. They depict (and project) the Maximum Maintenance Equity each jet has available based on its age. •
Pct of Avg Max Mtnc Equity vs. Aircraft Age 100% 90%
Pct of Max Mtnc Equity
• 80%
70% 60% 50%
40%
30%
1
2
3
4
5
6
Source: Asset Insight (www.assetinsight.com)
70 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
7
8
9
10
Aircraft Age (Years)
11
12
13
14
15
The Maximum Maintenance Equity figure was achieved the day an aircraft came off the production line (since it had not accumulated any utilization toward maintenance events). The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes: - Average annual utilization of 247 annual flight hours (Legacy 650E), 333 annual flight hours (Gulfstream G280) and 470 annual flight hours (Challenger 350). - All maintenance is completed when due.
Depreciation Schedule
Aircraft that are owned and operated by businesses are often depreciable for income
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7
The Private Jet Company June.qxp_Layout 1 19/05/2020 12:41 Page 1
For Immediate Sale
2016 Lear 70 S/N 2129
2002 Citation Excel S/N 5233
1,720 Hours, MSP, Smart Parts, ADSB-Out, WiFi, Make Offer
5,490 Hours, ALL Programs, 2016 New Paint & Interior, Wifi, Make Offer
2004 Citation CJ3 S/N 10
2002 Gulfstream GIV-SP S/N 1484
3,540 Hours, Tap Elite, ADS-B Out, WiFi, 2016 Interior, 2017 Paint, Make Offer
2,900 Hours only, 2016 New Paint & Interior, WiFi, High Pedigree, Asking $5.5m
2008 Hawker 850XP S/N 258915
1997 Hawker 800XP S/N 258344
2,434 Hours, MSP Gold, Fresh 12 Year & Gear OH, SVS - WAAS/LPV, Asking $3.2m
+1.561.691.3545
5,185 Hours, MSP Gold, 2019 Interior, 2018 Interior, Asking $845,000
Info@ThePrivateJetCompany.com
AirCompAnalysis JULY20.qxp_ACAn 16/06/2020 17:15 Page 5
JET COMPARISON
Chart E - Maximum Scheduled Maintenance Equity Gulfstream G280
Assumed Annual Utilization: 333 Flight Hours Average Maximum Maintenance Equity: $4,031,572 Pct of Avg Max Mtnc Equity vs. Aircraft Age
100%
Pct of Max Mtnc Equity
90%
80%
70% 60% 50%
40% 30% 30%
3
2
1
5
4
6
7
8
9
10
11
12
14
13
15
Aircraft Age (Years)
Source: Asset Insight (www.assetinsight.com)
Chart F - Maximum Scheduled Maintenance Equity Challenger 350
Assumed Annual Utilization: 470 Flight Hours Average Maximum Maintenance Equity: $4,202,224 Pct of Avg Max Mtnc Equity vs. Aircraft Age
100%
Pct of Max Mtnc Equity
90% 80% 70% 60% 50% 40%
30% 20% 30% 10%
1
2
3
5
4
6
7
8
9
10
11
12
13
14
15
Aircraft Age (Years)
Source: Asset Insight (www.assetinsight.com)
Table C - Legacy 650E MACRS Depreciation Schedule 2019 Embraer Legacy 650E - Private (Part 91) Full Retail Price - Million $25.900 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
20.0%
$5.180
$20.720 $5.180
2
32.0%
3
19.2%
4
11.5%
5
11.5%
$4.973
$2.984
$2.984
$1.492
$13.468
$18.441
$21.424
$24.408
$25.900
$7.459
$4.476
$1.492
Asking Prices & Quantity for Sale
6
5.8%
$8.288
$12.432
$0.000
2019 Embraer Legacy 650E - Charter (Part 135) Full Retail Price - Million $25.900 Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
1
14.3%
$3.701
$22.199 $3.701
2
24.5%
$6.343
$15.856 $10.044
Source: Vref
72 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
3
17.5%
4
12.5%
5
8.9%
6
8.9%
7
8.9%
8
4.5%
$4.530
$3.235
$2.313
$2.310
$2.313
$1.155
$14.574
$17.809
$20.122
$22.432
$24.745
$25.900
$11.326
$8.091
$5.778
$3.468
tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can 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, aircraft 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 is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelveyear recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six- year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year. Table C (bottom, left) depicts an example of using the MACRS schedule for a 2019 Embraer Legacy 650E aircraft in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods, assuming a used retail value of $25.9m, per B&CA. Table D (top, right) depicts an example of using the MACRS schedule for a 2019 Gulfstream G280 aircraft in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods, assuming a used retail value of $24.5m, per B&CA. Table E (middle, right) depicts an example of using the MACRS schedule for a 2019 Bombardier Challenger 350 aircraft in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail value of $26.67m, per B&CA.
$1.155
$0.000
At the time of writing, there were seven Legacy 650s (but no Legacy 650E business jets) available on the used aircraft market. Two showed asking prices ($15m and $15.5m). By comparison, there were 16 Gulfstream G280s for sale, with four showing asking prices between $12m and $17.4m. Twelve Challenger 350s were on the market with four showing asking prices ranging between $12.98m and $17.2m. While each serial number is unique, the www.AVBUYER.com
w
AirCompAnalysis JULY20.qxp_ACAn 16/06/2020 17:15 Page 6
AVBUYER.com Airframe Total Time (AFTT) and age/condition of an aircraft will cause great variation in the price of a specific aircraft (even between two aircraft from the same year of manufacture). The final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.
Productivity Comparisons
The points in Chart G (bottom, right) are centered on the same aircraft. Pricing used in the vertical axis is as published in B&CA. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:
Table D - G280 MACRS Depreciation Schedule 2019 Gulfstream G280 - Private (Part 91) Full Retail Price - Million $24.500 Year
2
1
Rate (%)
32.0%
20.0%
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
$4.900
$19.600 $4.900
4
3
11.5%
19.2%
5
11.5%
6
5.8%
$7.840
$4.704
$2.822
$2.822
$1.411
$12.740
$17.444
$20.266
$23.089
$24.500
$11.760
$4.234
$7.056
$1.411
$0.000
2019 Gulfstream G280 - Charter (Part 135) Full Retail Price - Million $24.500 Year
2
1
Rate (%)
24.5%
14.3%
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
$3.501
$20.999 $3.501
$6.000
$14.999 $9.501
4
3
12.5%
17.5%
5
8.9%
6
8.9%
$4.285
$3.060
$2.188
$2.185
$13.786
$16.846
$19.034
$21.219
$7.654
$10.714
$5.466
$3.281
7
8
8.9%
4.5%
$2.188
$1.093
$23.407
$24.500
$1.093
$0.000
Source: Vref
Others may choose different parameters, but serious business aircraft 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 all three business jets display a high level of productivity. The Legacy 650/650E provide a substantially larger cabin volume compared to the Gulfstream G280 and Challenger 350, and the aircraft also provides greater ranges than the other two aircraft types in this study. However, the Gulfstream G280 has a slightly lower acquisition cost, and both the Challenger 350 and G280 have lower operating costs, which can build up over several flight hours. Operators should weigh their mission requirements precisely when picking the option that is the best for them. There needs to be a solid business case for buying a larger business jet because, although the initial acquisition prices may be similar, other factors such as range and operating costs must be factored to ensure an owner isnâ&#x20AC;&#x2122;t taking on too much aircraft for their mission needs. For some, the price reduction in the Legacy 650/650E will make a larger, more productive aircraft available that they can fully justify purchasing, but for others, the smaller sized, but still highly productive models remain the way forward. There are other qualities, such as airport performance, terminal area performance, and time to climb that might factor in a buying decision, too. Operators in the market should weigh all these factors carefully, with the help of professional analysis. Our expectations are that all three business jets in this field of study will continue to do very well in the market for the foreseeable future. T www.AVBUYER.com
Table E - Challenger 350 MACRS Depreciation Schedule 2019 Bombardier Challanger 350 - Private (Part 91) Full Retail Price - Million $26.673 1
Year
20.0%
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
$5.335
$21.338 $5.335
2
32.0%
4
3
11.5%
19.2%
5
11.5%
6
5.8%
$8.535
$5.121
$3.073
$3.073
$1.536
$13.870
$18.991
$22.064
$25.137
$26.673
$12.803
$4.609
$7.682
$1.536
$0.000
2019 Bombardier Challanger 350 - Charter (Part 135) Full Retail Price - Million $26.673 Year
1
Rate (%)
Depreciation ($M)
Depreciation Value ($M) Cum. Depreciation ($M)
14.3%
$3.812
$22.861 $3.812
2
24.5%
$6.532
$16.329
$10.344
4
3
12.5%
17.5%
5
6
8.9%
8.9%
7
8.9%
8
4.5%
$4.665
$3.331
$2.382
$2.379
$2.382
$1.190
$15.009
$18.340
$20.722
$23.101
$25.843
$26.673
$8.333
$11.664
$5.951
$3.572
$1.190
$0.000
Source: Vref
Chart G - Productivity Comparison $28.0
Price (Millions)
1. Range with four passengers and available fuel 2. The long-range cruise speed flown to achieve that range 3. The cabin volume available for passengers and amenities
2019 Challenger 350
2019 Legacy 650E
$26.0
$24.0
$22.0 0.000
2019 Gulfstream G280
1.000
2.000
3.000
4.000
Index (Speed x Range x Cabin Volume / 1,000,000,000)
Mike Chaseâ&#x20AC;&#x2122;s analytical and consultancy services are highly valued within the Business Aviation industry. He is founder and president of Chase & Associates, and works closely with several respected sources to compile his unique Aircraft Comparative Analysis features. Contact Mike via mike@avbuyer.com
AVBUYER MAGAZINE Vol 24 Issue 7 2020
73
Values Intro.qxp_Finance 16/06/2020 15:10 Page 1
VALUES - LIGHT JETS
AVBUYER.com
Business Aircraft Values: Light Jets Where performance and value are dominant factors for a mission need, remember this: there’s nothing lightweight about the value and flexibility of the Entry-Level & Light Jets. s business jets increase in size from Entry-Level & Light jets to the low end of the Large Cabin models, six to eight seats generally remains the standard configuration across size-category lines. And while cabins increase in volume generally (enabling more productive workspace for those traveling longer distances), full-fuel payload doesn’t seem to grow proportionally in most cases. As jets get bigger and heavier their runway needs increase, with no appreciable gain in how many people or equipment can fly – and thus we touch upon the key advantages of the Entry-Level & Light jet category - the value and flexibility offered to those who typically fly shorter legs. Fully-fuelled, an Entry-Level or Light jet can often barely carry the typical passenger load of three persons, unless one or two of them doubles as a crew member. Nevertheless, with the average mission length below 750 miles and the nominal maximum-range of Light jets around 1,200 miles, the crew enjoys the option of flying lighter and saving fuel. Fueling for the mission with NBAA reserves allows larger cabin loads, making three or four - plus crew - possible. The time difference between Entry-Level & Light jets and Large jets to fly a typical 750nm mission is small (about 10 to 12 minutes, overall) and is not a large time-saving for costs that may be considerably higher for the larger aircraft. Further, beyond these speed-range-payload operational
A
74 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
basics, the Light jet crew will have the option of far more airports, often closer, more convenient and less expensive than what’s needed for the Medium and Large jets. Thus, it’s hard to escape the heavyweight value of the Entry-Level & Light jet. So what exactly is a Light jet? Today we consider a jet “light” when its MTOW falls between 10,000 and 20,000 pounds. About a decade ago the Light segment represented the bottom rung of the business jet ladder. That was before the Entry-Level Jets entered the market, differentiated by weights below almost everything ever built at less than 10,000 pounds.
Entry-Level & Light Jet Price Guide The following Entry-Level & Light Jets Retail Price Guide represents current average values published in The Aircraft Bluebook – Price Digest. The study spans a twenty year period, from 2001 through Summer 2020, and covers 34 models. Values reported are in US$m, with each reporting point representing the current average retail value published in the Bluebook by its corresponding calendar year. For example, the Cessna Citation CJ3+ average value reported in the Summer 2020 edition of Bluebook shows $5.7 million for a 2016 model, $5.5 million for a 2015 model and so forth. Note: We have included 34 aircraft models in the following Light Jets average price guide.
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Retail Values JULY20.qxp_RPG 16/06/2020 15:12 Page 1
VALUES - LIGHT JETS
Entry Level & Light Jets: Average Retail Price Guide MODEL YEAR $
2020 US$M
2019 US$M
2018 US$M
2017 US$M
2016 US$M
2015 US$M
2014 US$M
2013 US$M
2012 US$M
2011 US$M
MODEL BEECHCRAFT PREMIER 1A
2.1
2.0
3.9
3.7
3.2
2.9
BEECHCRAFT PREMIER 1 BOMBARDIER LEARJET 45XR BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR BOMBARDIER LEARJET 40
CESSNA CITATION XLS+ 560
10.5
9.0
8.2
7.8
7.3
6.8
6.4
5.9
5.6
5.6
5.3
5.0
CESSNA CITATION XLS 560 CESSNA CITATION ENCORE+ 560 CESSNA CITATION V ENCORE 560 CESSNA CITATION EXCEL 560-XL CESSNA CITATION BRAVO 550 CESSNA CITATION CJ4 525C
8.5
7.5
6.8
6.5
6.2
5.9
CESSNA CITATION CJ3+525C
7.2
6.8
6.3
5.7
5.5
5.3
CESSNA CITATION CJ3 525B
5.3
5.1
4.9
4.7
4.5
CESSNA CITATION CJ2+525A
4.4
4.2
4.0
3.8
3.6
2.9
2.7
CESSNA CITATION CJ2 525A CESSNA CITATION M2 525
4.3
3.9
3.7
3.3
3.1
CESSNA CITATION CJ1+525
2.8
CESSNA CITATION CJ1 525 CESSNA CITATION MUSTANG 510
CIRRUS VISION JET SF50
2.850
2.5
1.850
2.650
2.350
1.8
1.7
ECLIPSE 550
2.150
1.9
1.850
1.750
ECLIPSE 500
1.8
1.7
1.6
1.450
1.350
6.0
5.6
5.4
2.2
2.1
1.9
2.0
1.6
1.4
1.650
EMBRAER PHENOM 300E
8.750
8.250
EMBRAER PHENOM 300
8.0
7.7
7.5
EMBRAER PHENOM 100EV
4.2
3.8
3.6
EMBRAER PHENOM 100E
3.2
7.3
3.0
6.9
2.7
6.5
2.5
EMBRAER PHENOM 100
HAWKER 400XP HAWKER BEECHJET 400A HONDAJET HA-420
4.5
3.7
9.5
9.0
NEXTANT 400XTi
3.3
3.0 3.1
PILATUS PC-24
11.135
2.9
2.5
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
76 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
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Retail Values JULY20.qxp_RPG 16/06/2020 15:13 Page 2
AVBUYER.com
What your money buys today
SUMMER 2020 2010 US$M
2009 US$M
2008 US$M
2007 US$M
2006 US$M
2005 US$M
2004 US$M
2003 US$M
1.9
1.8
1.7
1.6
1.4 1.150
1.050
0.950
3.5
3.3
3.1
2.9
2.7
2.5
2.3
2.1
2.5
2.2
2.0
1.8
1.7
2.6
2.4
2.2
2.0
1.8
1.4
1.7
1.5
1.3
3.8
3.6
2.6
2.4
2.2 2.9
2.8
1.650
1.550
1.450
1.350
5.4
5.2
5.0
4.4
4.2
4.0
3.5
3.2
2.9
2002 US$M
2001 US$M
MODEL YEAR $ MODEL BEECHCRAFT PREMIER 1A
0.850
0.8
BEECHCRAFT PREMIER 1 BOMBARDIER LEARJET 45XR
1.6
1.5
BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR
1.2
BOMBARDIER LEARJET 40
CESSNA CITATION XLS+ 560 3.4
CESSNA CITATION XLS 560 CESSNA CITATION ENCORE+ 560 1.9
1.8 2.7 1.250
1.7
CESSNA CITATION V ENCORE 560
2.6
CESSNA CITATION EXCEL 560-XL
1.150
CESSNA CITATION BRAVO 550
4.7
CESSNA CITATION CJ4 525C CESSNA CITATION CJ3+525C
4.3
4.1
3.9
3.5
3.4
3.3
3.5
3.3
3.1
2.9
2.7
2.6
2.6
2.5
3.2
CESSNA CITATION CJ3 525B CESSNA CITATION CJ2+525A
2.4
2.3
2.2
2.1
CESSNA CITATION CJ2 525A CESSNA CITATION M2 525
2.6
2.4
2.2
2.0
1.9
1.8 1.7
1.5
1.4
1.3
1.2
CESSNA CITATION CJ1+525 1.6
1.5
1.4
1.3
1.1
CESSNA CITATION CJ1 525 CESSNA CITATION MUSTANG 510
CIRRUS VISION JET SF50
ECLIPSE 550 --
--
1.0
0.9
0.7
ECLIPSE 500
EMBRAER PHENOM 300E 5.2
5.0
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1.7
1.6
1.4
1.750
1.650
1.550
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1.450
1.350
1.250
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1.050
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HAWKER BEECHJET 400A HONDAJET HA-420 NEXTANT 400XTi PILATUS PC-24
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: CHRIS.REYNOLDS@INFORMA.COM
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AVBUYER MAGAZINE Vol 24 Issue 7 2020
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2009 Boeing BBJ3 S/N: 37560 Airframe Total Time: 2,925 Hours. Aircraft Total Cycles: 886 cycles
2019 BBJ 787-8 Airframe Total Time: Delivery Hours. Aircraft Total Cycles: Delivery Cycles FREESTREAM AIRCRAFT LIMITED
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2016 Gulfstream G650
2014 Global 6000
Airframe Total Time: 1850 hours Aircraft Total Cycles: 585 cycles
Airframe Total Time: 1687.17 hours Aircraft Total Cycles: 734 cycles
2009 Falcon 7X
2018 Gulfstream G650 S/N: 6312
2018 Gulfstream G650ER S/N: 6286
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Airframe Total Time: 245.9 hours Aircraft Total Cycles: 77 cycles
FREESTREAM AIRCRAFT LIMITED
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Airframe Total Time: 7419.5 hours Aircraft Total Cycles: 2700 cycles
FREESTREAM AIRCRAFT (BERMUDA) LIMITED
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FREESTREAM AIRCRAFT (H.K.) LIMITED
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Flight Dept 1.qxp_Finance 16/06/2020 14:45 Page 1
FLIGHT DEPARTMENT MANAGEMENT
Airline Redundancies: An Answer to BizAv Pilot Shortages? With Business Aviation flying expected to resume faster than airline flying, the potential for airline pilot redundancies is significant. Will the pool of available pilots be an answer to Business Aviation’s shortages? Andre Fodor reflects with an eye on hiring the right fit…
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AVBUYER.com With a focused approach on global excellence and creativity, Andre Fodor has managed flight operations for the U.N. and Flight Options as well as being a senior demonstration pilot and instructor for Embraer Aircraft. He is the Aviation Director for his current employer.
mentor once taught me that to survive a career in aviation I would need a strong stomach to digest crew meals, deal with the stress of long schedules away from home, and to endure the ups and downs of being a professional aviator. Sure enough, I discovered we have to grow thick skins to past industry hiccups, downsizings, downgrades, furloughs and cost cutting – we need to endure these to survive. There have been times that the “Will fly for food” sentiment was a painful reality, not just a joke printed on a tee-shirt. Now, with the strain of the last recession still fresh in our minds, corporate flying has been slashed to a trickle in the face of the coronavirus pandemic. The effects will reverberate for years to come. The airlines are ailing and bleeding cash. Their mega infrastructures cannot be sustained without massive utilization, and that’s unlikely to recover anytime soon. Furloughs, layoffs and unemployment are likely to increase and the market is going to be flooded with pilots looking for new employment. Some say that pilot-age retirements will dampen the lay-off numbers, but I disagree. There are not enough retiring pilots to nullify such a scale of reduction. In a nutshell, times may be tough for a while… Our industry could be luckier than the airlines, however… With projections that Business Aviation will recover faster than the airlines, and a pool of out-of-work airline pilots becoming available, could an answer be found to the pilot shortage problem that has foxed our industry for the last several years? If so, does that mean diving in and recruiting the moment the pool of available pilots starts to form?
A
A Thought on Pilot Recruitment
When I was part of the flight operations management team for a fractional ownership company, I participated in the selection process of new-hire flight crew. As our numbers increased, we noticed that the personality of the pilots we hired was distinct. We had been choosing congenial people who were highly personable and sociable. This wasn’t a conscious choice, but it seemed we had all been looking for people with whom we could happily spend many days working with away from home, completing busy flying schedules. Over time, we had acquired a cadre of pilots who were known for their demeanor, great customer service and solid team spirit. The point is that not everyone is cut out for Business Aviation. It requires a distinct personality to embrace the lifestyle and accept the additional workload that comes with flying corporate jets. In Business Aviation there’s more to the pilot’s job than ad re Re Mo
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climbing into the cockpit and flying the airplane. (How many of us haven’t found ourselves with a lavatory pot in our hands looking for the dump station at the FBO?) Flying is the easy part of the day, usually after you’ve finish your duties as ground crew, flight planner, dispatcher, load master, security officer and baggage loader. Without fully embracing the myriad of tasks required of a corporate pilot, the choreography of flying privately will not yield an amazing customer flight experience. And anything less than that is unacceptable in Business Aviation. When hiring for the flight department, consideration must also be given to the economic sense. As demand returns, many furloughed airline pilots will likely make the choice to return to airline cockpits, meaning that the costs of training the new hire and the efforts invested in integrating them into the flight department may be lost within a relatively short time. The transition to Business Aviation requires new skills to be learned, which will only be honed with time and repetition. Consideration needs to be given as to whether there will be a return on investment. With that said, there will be opportunity to recruit individuals who are able to make the transition successfully. My current co-captain transferred from the airlines, as did our previous pilot. But it was a natural transition; he is outgoing and sociable and desired more interaction and an ever-changing working environment that are the tenets of corporate flying. The previous pilot struggled with the flexible schedules and chose to return to the more predictable lifestyle with the airlines. It’s all about finding the right match.
An Answer to the Pilot Shortage?
The above discussion begs further questions. If a readilyavailable pool of airline pilots became available to recruit in Business Aviation, would there really no longer be a pilot shortage? One could begin to answer with a further question: Where are we going to get the next group of corporate aviation leaders and career tracked flight crew? For now, the recent volatility of pilots moving from Business Aviation to the airlines (and job changes in general) has ended. Everyone is likely to stay put. Nevertheless, demand will eventually return and our focus needs to be on retaining our people, keeping them current, healthy, focused and sharp (as it always does). In fact, when the demand returns we will have to be razor-sharp in building back our proficiencies to deliver the safety and unequaled service that our industry is well known for. ❙
ANDRE FODOR ARTICLES
at AVBUYER.com
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FLIGHT DEPARTMENT MANAGEMENT
AVBUYER.com
F
Mario Pierobon is a safety management consultant and content producer. He currently is working on a research project investigating aircraft ground handling safety. Contact him via marioprbn@gmail.com
Flight Departments: Why Go Digital With Your Ops Manuals? Aviation safety expert Mario Pierobon speaks with Centrik and Total AOC's
Julian Tubb about the outdated methods many flight departments use to maintain
their operations manuals, and the benefits to updating the way they work on these… t almost goes without saying that operational documentation is an extremely important component of the certification requirement, and the entire management of any flight department. The documentation system will include operations manuals, checklists and crew training forms, among many others. This composite body of documentation is often complex and may be difficult to manage. However, information technology has streamlined the process of producing and keeping updated documentation in recent years, helping alleviate the pressure on flight departments that utilize such programs.
I
What’s the Advantage of Maintaining High Quality Ops Manuals?
According to Tubb, operation manuals are just as important within the Business Aviation sector as they are to the wider airline environment, where 82 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
professional, consistent and concise documentation helps foster a professional attitude. “High-quality operations manuals accurately present relevant operator information in a dependable and timely fashion,” he says. “This helps to build stronger, more trust-based relationships with the competent authority, allowing for a more collaborative working relationship. Crew training costs can also be greatly reduced through the use of predictable, well-structured and interactive documentation.”
How to Streamline the Process
With information technology, Business Aviation organizations are able to make the documentation management process more efficient, streamlining it. In recent years, operations manuals have been transitioning from paper-based systems to electronic. Yet, Tubb emphasizes this has often meant simply
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FLIGHT DEPARTMENT MANAGEMENT
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replicating the old approach via word processing software (thereby limiting the potential benefit that the digitization of documentation offers). “One of the main issues seen in these digital facsimiles is a lack of workflow procedures. Old habits from paper processing creeps in” Tubb elaborates. “For example, inconsistent and duplicated information, leading to bloated, badly formatted manuals with limited revision tracking.” Using an operational management system like Centrik can make the entire process significantly more efficient. “Operators can integrate workflow engines, assigning roles and responsibilities to manage content generation, updates and reviews, as well as extensive compliance-checking, right through to publication. “This all means that the production process can be significantly streamlined, dramatically increasing efficiency and resulting in high-quality, timely content.”
meaning there’s no chance of contradictory or superseded content being used,” he adds. “Staff onboarding and training is also massively simplified when using unambiguous and well-structured documentation, helping to deliver improved training performance at a lower cost.” Tubb says his company is currently developing the next generation of Operations Manuals to include structured data that can integrate and maintain all updates within them. This means that content would only need to be created once. “These can then be distributed to multiple manuals, across multiple platforms via desktop, personal device or to an electronic flight bag (EFB),” he says. “These advanced documents also have the ability to filter relevant content to individual readers (an approach that allows for better version and revision control) meaning changes can be activated when required with all old information rescinded automatically.”
Proper Digitization Improves Safety Performance
How to Move to Digital Ops Manuals
An important byproduct of well-implemented documentation is a positive contribution to safety performance within the Flight Department. For example, with documents more consistently updated to reflect any applicable change, they can also be more easily distributed to the users. “Well-designed, data-rich operations manuals can have a huge impact on safety, allowing for tighter compliance with myriad existing and any new regulations,” Tubb reflects. “Through Centrik’s Safety module, for example, operators can fully integrate and automatically monitor regulatory compliance, meaning all crew and ground staff have instant access to current, correct information when making safety decisions. “All relevant staff have instant access to this information through their own personal dashboard,
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The move to digital operations manuals will require a complete rethink for an operator, Tubb suggests. To produce the best operations manuals, skills should be focused on the actual information production, rather than formatting, compliance checking and publishing. “The best way to achieve this is through the use of an aviation-specific software solution or service,” he suggests. “Built from the ground-up and with an aviation focus, this uses robust processes to facilitate the creation, management, and publication of relevant information.” Overall, he argues, this will free up key resources, allowing flight department personnel to spend more time on creating better-quality, lower-cost operations manuals. ❙ More information from centrik.net
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AVIONICS
Fly-By-Wire for BizJets: Whatâ&#x20AC;&#x2122;s the Status?
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Where exactly is the Business Aviation industry with Fly-By-Wire
technology, and which of today’s business jets have it? Mike Chase and Ken Elliott explore in this latest JETNET >>KNOW MORE review…
F
ly-By-Wire (FBW) flight control systems were first launched in 1984, back when the Airbus A320 commercial airliner was a clean-sheet design for civil aviation. It was revolutionary at the time with computers and actuators replacing traditional mechanical linkages. So what exactly is a FBW flight control system? Ultimately, it is an intuitive semi-automatic computerregulated system for controlling the flight of an aircraft. In traditional (non-FBW) aircraft, the pilot’s yoke and pedals are hydraulically boosted, mechanically connected and controlled through a series of complex cables, pulleys and push-rod actuators to the aircraft’s aerodynamic control surfaces. Aside from adding computers, FBW replaces the mechanical components with electrical wiring and adds at least one actuator at each of the aircraft’s moving surfaces, as well as incorporating auto-throttle functionality. Thus, it transforms the way pilots interact and fly aircraft. FBW essentially means that pilots send their physical command inputs to a computer that, in turn, moves control surfaces of the aircraft, such as the ailerons, elevator, rudder and spoilers. While there is significant redundancy built into FBW, there might also be mechanical backup for some of the aircraft’s controls. Aircraft that function with FBW can be flown using a sidestick or a yoke (depending on the designer’s preference, based on ergonomics and engineering criteria). An early issue with FBW was that the two (pilot and copilot) flight controls and ‘side-stick’ controllers were not actively linked. However, BAE Systems developed electronically coupled ‘active side-stick’ controllers, with the first installations now certified in the new Gulfstream G500 and G600 business jets.
FBW Philosophical Difference
FBW system algorithms are designed to make flying easier, while limiting extreme maneuvers to ensure that the ‘flight performance envelope’ is not exceeded. Herein lies a philosophical difference in FBW application between wide- and narrow-body airline builders and their business jet cousins. The former provides less authority to the pilots than for business jets, operating more toward ‘protected mode’ than ‘direct law’ through FBW equipped aircraft. These varying laws equate to the level of authority given to the cockpit to control the aircraft by traditional means. As noted, business jets operate under less ‘protected law’ and more by ‘direct law’. As an example, the pilot www.AVBUYER.com
remains in the loop and can bank the aircraft to its performance limitations.
What are FBW’s Advantages?
In some ways for business jets FBW can be thought of as an aid to pilots. However, it is almost frowned upon to use the FBW term. Dassault, for example, uses ‘Falcon digital flight control system’. This is significant as OEMs understand how to leverage the advantages of FBW within the overall flight control of their aircraft. A digital flight control may offer the following advantages… • • • • • • • •
Prevent the aircraft from stalling. Maintain flight within a desirable flight envelope. Perform as if the autopilot were permanently engaged, behind the scenes, constantly monitoring the aircraft’s maneuvers. Along with the pilot’s rudder correction, assist flight control surfaces to offset the single side loss of thrust when an engine underperforms or fails. Employ responsive control surface movements, following precise computer commands. May replace traditional trim and eliminate the stick shaker. Allow aircraft to be built more inherently unstable to offset drag while relying on the digital flight control to maintain precision stability. Protect against the impact of shifting Center of Gravity when aircraft loading limits are within reach. Assist with aircraft stability during high speed, high altitude maneuvers.
Specifically, trajectory-based flying involves the use of a head-up or head-worn display. It is a super-sensitive way of controlling the aircraft’s vertical attitude, and in turn adjust its speed, its flight angle and ability to remain on cue throughout a landing. FBW in business jets monitors laser-referenced attitude, air data information, flight management and other data to provide a Flight Path Vector (FPV) direction cue. The FPV is independent of FBW and autothrottle but the two can work in concert as a superior flight tool.
FBW Flight Control Systems in Business Jets
Dassault has a rich history dating back to the Mirage 2000 military jet in 1963 using the FBW flight control system. So, Dassault's decision to dispense with mechanical flight controls for its latest Falcon was not unexpected. Dassault received its FAA and EASA Type Certificate for the Falcon 7X business jet in 2007. This aircraft provided the perfect opportunity to build the first fully fly-by-wire
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business jet. According to JETNET, as of June 1, 2020 there were 287 Falcon 7X business jets in operation worldwide. Other Dassault Falcon business jet models that use the FBW flight control system include the Falcon 8X, of which 58 were in operation at the time of writing, and the indevelopment Falcon 6X. Gulfstream certified the FBW-operated G650 business jet in 2012, and Embraer followed suit with its Legacy 500 in 2014. The Global 7500 will be Bombardier’s first FBW business jet. As mentioned above, Gulfstream’s G500 and G600 also feature the FBW flight control system. With over 22,482 business jets in operation worldwide (per JETNET), Table A shows that there are currently 1,279 (5.7% of the fleet) with FBW flight control systems today. Most aircraft OEMs have determined FBW flight control systems are a worthy undertaking given the performance, safety and design advantages in the Super Mid-size, Large Cabin and Ultra-Long-Range jet categories. However, development comes at considerable cost, so we expect growth to occur in these categories but probably not in the smaller business jet categories for the foreseeable future.
What’s the Future for FBW?
While the following future developments may be distant, there is a rapid transition underway on several fronts using leveraged technology. In the end, it may only be certification delays that prevent some of these from being incorporated sooner… •
•
From Reactive to Predictive: FBW is a fine-tuned control of the aircraft in flight, but it is still reactive to the aerodynamic demands of the aircraft. The future may enable FBW to be more predictive. This will require advanced look-ahead features; a tie into realtime weather; the use of algorithms developed over years of flight recording; and an ability to develop a projected single aircraft command, as a complex timebased (4D) steering signal. Cloud-Based: To allow full FBW operations an aircraft must have redundancy, meaning dual/triple and even a seventh computer to ensure safe and reliable flight. As avionics migrates into cloud-based technology, the computers may be external to the aircraft and act as a remote pilot. Today’s unmanned community is already using remote pilots providing off-aircraft commands as wireless-based signals are sent to the aircraft.
Ken Elliott is a veteran with 52 years of aviation experience focused on avionics, in General and Business Aviation. Having a broad understanding after working in several countries on many aircraft types and avionics system, he has contributed to several work groups and committees, including for NextGen, Airport Lighting, Human Factors, Unmanned Aircraft and Low Vision Technology. In retirement, he is striving to give back the knowledge gained with an eye on aviation’s future direction.
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•
•
Wireless Signal Transmission: Within the aircraft itself, wires may be replaced by signals transmitted wirelessly (i.e. enhanced Bluetooth, internet as Wi-Fi, and other future means). This will change today’s FlyBy-Wire to Fly-By-Wireless. Simultaneous Single Steering Command/Wireless Signals: These would autonomously instruct actuators to move aircraft control surfaces. The steering command will likely be FPV-based and take the aircraft all the way to touchdown and roll out. It also will serve well in the future 4D Performance Based Navigation (PBN) environment, where aircraft will be provided with time-based trajectory requirements to arrive at target waypoints at predicated times, thus allowing for proper spacing and a timely compliance to assigned landing slots.
In this edition of JETNET>>Know More, we have reported on Fly-By-Wire business jets. There are numerous topics such as reported in this article that JETNET subscription services can inform you about, including various aircraft market trends features that are important to business jet owners and operators. ❙ More information from www.jetnet.com
Mike Chase’s analytical and consultancy services are highly valued within the Business Aviation industry. He is founder and president of Chase & Associates, and works closely with several respected sources to compile his unique Aircraft Comparative Analysis feature. Contact Mike via mike@avbuyer.com
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Connectivity 2 JULY20.qxp_Finance 15/06/2020 14:53 Page 1
CONNECTIVITY
(Part 1)
The Best Way to Upgrade Your Cabin Electronics Ken Elliott reviews cabin electronics upgrades, with a focus on retrofit. This month’s article covers the planning phase. Future articles will focus on the implementation of various cabin systems.
A
ssuming you are catering to passengers and not cargo, your aircraft’s appearance is crucial to those who own, charter or share it. That appearance is experienced on several different levels, including:
• • • •
Overall Appearance (especially as a first impression) Comfort (can you relax or function calmly?) Ambience (is the overall environment welcoming?) Ergonomics (the human interaction with the cabin and its systems) • Functionality (the ability of the cabin to satisfy your in-flight needs • Safety (though it’s not immediately apparent, what are the features to prevent mishap and allow egress?). To a degree, all levels of experience are pertinent to this article. To meet experience objectives, any improvements to the cabin should be well studied. Essentially, changes to cabin electronics should not be considered in isolation. 90 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Cabin modifications are extremely complex, requiring input from several disciplines. So, while this series is electronics-related it will address integration with respect to the overall cabin, beginning with planning.
Cabin Electronics Upgrade: Where to Start Planning…
Starting with the cabin’s occupants is always a good place to commence planning. It’s important to hear primary user desires and keep an open mind. It could be that a minor malfunction with an existing system triggered the CEO’s decision to upgrade, so this will be a good time to plan a strategy and do it right. Have all your ducks in a row to upgrade the cabin. Why? Because it makes sense on so many levels… While downtime and cost will always be primary drivers, they should be weighed against the downsides of a compromised cabin. Perhaps the biggest reason for planning an interior upgrade, including the electronics, is because you don’t want to access the interior more than you need to. Interiors are expensive and while www.AVBUYER.com
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AVBUYER.com improvements have been made to expedite removal and reinstallation (R&R) over the years, it is still a ‘process’ to access wire runs, equipment and component mounting. Most major MROs have interior teams that specialize in access and the professional handling of storage, but this is still a vulnerable time for aircraft interiors and other aircraft substructures. Even small cabin upgrades should have a plan, and this process can be applied to many levels of cabin improvement. Following are the major subsets of the plan, as a set of questions, and not in order of priority: • • • • • • • • • • • •
What are you trying to accomplish? How does this impact the non-electronics aspects of the cabin and its general upgrade? Which existing aircraft/cabin systems will this replace or impact? Where are all of the existing systems components? What access will you need (including any new equipment/components and any wire routing needs)? Is the aircraft capable of supporting the change - Size, Weight, Power and Cost? Can the upgrade be certified? Will the upgrade be compatible with all remaining cabin and primary aircraft systems? Are you taking advantage of all the new system capabilities? How long will the modifications take? Have you questioned the ascetics, functionality, ergonomics and above all, safety? Will you have a test and delivery plan?
What is Your Accomplishment Goal?
Consider how everything interacts when looking at overall accomplishment. There will be interdependency in the cabin where physical activity within small spaces can interact across zones. Start planning from the CEO seat. The CEO seat will have the primary controls with the most choice, allowing an override of selections made by others. Moreover, plan goals by dividing the cabin into zones, i.e. by seat groupings, galley, vestibule, bathroom and storage. Take a minimalist approach to declutter the cabin design and prevent confusion over multiple selections of the same function. Accomplishment is a satisfied customer, and if it means a sales engineer visiting the aircraft at its home-base to hear and visualize a customer’s plan, then you will be glad that occurred. (After all, photographs help but only tell half the story.) The completion facility should ask and verify with the operator the following three significant questions: 1) 2) 3)
What is installed in the cabin currently, and does it all function? Do you have the prints and certification documents for all cabin electronics? Thoroughly, walk us through your future cabin, zone by zone. What are your expectations of when the aircraft is complete?
On the first two questions, a typical pre-owned aircraft with higher airframe hours will likely have a potpourri of cabin modifications, differently aged, while missing some of its custom prints, weight and balance, and electrical load amendments. Regarding the third question, communication on the front-end (cockpit) dictates the degree of anticipated functionality on the back-end (cabin). Equipment providers should be included in the www.AVBUYER.com
C
Ken Elliott is a veteran with 52 years of aviation experience focused on avionics, in General and Business Aviation. Having a broad understanding after working in several countries on many aircraft types and avionics system, he has contributed to several work groups and committees, including for NextGen, Airport Lighting, Human Factors, Unmanned Aircraft and Low Vision Technology. In retirement, he is striving to give back the knowledge gained with an eye on aviation’s future direction.
discussion at this early stage. Finally, as a goal consider cabin functionality with respect to typical flight times, the size and layout of the cabin, and the anticipated level of comfort and convenience desired.
What are the Non-electrical Impacts?
There are four key questions when it comes to the non-electrical impacts of a cabin electronics upgrade. These are: 1)
2)
3)
4)
Does the new component directly replace an existing part in form, fit and function? If not, there could be structural, sheetmetal, cabinet, upholstery, carpet and other trades needing to quote their portion of the overall task. Do you need access for wiring, equipment location, antennas, terminal blocks or tie-ins, circuit breakers, switches and controls? Each interior is different or has its own idiosyncrasies, so never assume one aircraft is the same as another. What level of certification will be required? Start with the need for a Supplemental Type Certificate (STC) or STC Amendment and determine lesser complex certification requirements from there. If third parties need to be involved, be forewarned of significant costs for certification personnel. Are you replacing or interfacing to existing systems and their location? What you see within a cabin is only part of any system, as each relies on remote power, control and some type of interface. Many cabin electronics designed for legacy aircraft will require some form of integration to existing equipment.
A good approach at this stage is to use layout diagrams for the cabin showing all potential integration, including wire routing. It may be necessary to access both sides of the cabin, including the aft bulkhead behind the lavatory for route wiring between components on both sides. Footprint is so crucial in the cabin. This is exacerbated in side ledges and narrow spaces. Never assume a replacement product will fit where an existing product is located, or that there is space if you are simply adding new. You should also plan for cooling distance around components that need it, and allow access for future servicing or software uploads.
What are the Access Considerations?
There is a valid argument to complete a major cabin upgrade in stages, phasing downtime, budget and other factors over several manageable visits. However, before completing that assessment you should consider the impact of ‘open and close’ with each shop visit, and the impact of phasing certification, including signoff provisions. Access can be very painful for the completion facility and the operator, so you should try to keep it to a minimum. Plan access very carefully, ensuring proper protection and storage for anything removed, while remembering that the center of gravity can shift on the fuselage after a complete interior is removed.
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Size, weight and power, with an eye on cost, is so important, because an aircraft represents very limited real estate with a capacity for only so much weight and current-draw. While the size of new cabin electronics is likely to be less, the form and fit may be different. Most changes will result in a weight reduction as heavy power amps and monitors are replaced, but you should never assume. Note, too, the overall impact of projected weight change on the Center of Gravity. Power considerations are very important. Although a new current load may be less, the current draw on any single aircraft power bus may be an issue, especially if the utility buss is already at maximum capacity. Another common issue for cabins is power outlets for carry-on devices. Make sure the aircraft bus or power converters are capable of providing the right current load at each location. There also may not be enough physical breaker locations, requiring additional engineering and build requirements to the project. While cost is a driver in product selection, and compromise may be necessary, always try to do the right thing regarding SWaP-C – consider the safety, reliability, practicality, ergonomics and quality.
Certification
The FAA and other aviation authorities delegate certification authority to Designated Engineering/Airworthiness Representatives (DERs/DARs). These are the folks who should be consulted before you turn a wrench, or pin a new wire. Most completion facilities will have DERs and DARs on staff, or as regular consultants. They know what is necessary to ensure approvals for cabin upgrades. When you reach out to a DER, they will ask questions and focus attention on important certification requirements. When planning, make sure you’re including all supporting documentation needed, how and who will generate it, and how – throughout and upon completion – the facility will demonstrate compliance to airworthiness requirements. 92 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
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Compatibility
Unless you are undertaking an aircraft manufacturer’s standard and proven cabin system upgrade, try to avoid the embarrassment of delivering a new cabin electronics system with incomplete functionality. Of course, it is highly likely that with any change, functionality may end up being different to that existing. The key is to have that discussion during the planning phase. Here it is also essential to include others. For example, conducting an aircraft survey that includes the systems providers early on can save you so much time and money! Lastly, make sure new equipment for the cabin is in itself certifiable. This means it may need a Technical Standard Order (TSO) number, issued to the manufacturer by the certification authority.
Capabilities
As with most avionics systems, those created for the cabin will come with standard features and permit options. When planning it’s essential to ensure the owners of the aircraft are aware of all options available to them. Understand, though, that options may themselves have limitations, including incompatibility with aircraft type and other equipment. Specific new or existing systems may require a level of software, a hardware modification or even a complete replacement. Be careful when reviewing sales material as it is designed to sell a product. It may not necessarily include all the integration requirements you will need to get there. That’s why it’s essential to have an equipment provider involved early in planning. Either or both, owner and completion facility, can engage with the provider(s), the DER(s) and customer’s consultant conversant with the aircraft model. Be prepared to review several different cabin electronic suites and not just the one that comes recommended. There is no harm in evaluating different options for equipage, completion facility and future subscriptions provider. Figure B shows a simplified block diagram of a modern entertainment system. It assumes (North American) continental operations with ATG Wi-Fi. Apart from some of the familiar legacy www.AVBUYER.com
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CONNECTIVITY :
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• •
No cabin upgrade is complete until verified. Plan on carving out time to train the flight department on full system capability, while making sure everyone understands that Air to Ground (ATG) internet and communications function differently in three ways, including on the ground; airborne below 10,000ft: and then above 10,000ft (for example). A test flight, even if not required, is always advisable. Some flight check items should be:
• •
Identification of switches and controls to customer requests. Plating or finish of all touch controls and visible equipment, such as monitor surrounds. Isolation of all cabin electronics from the cockpit. As a safety measure, all aircraft must have a singular means of isolating the power to cabin electronics from the cockpit. The logic of all controls. There are several ways to control each cabin function – plan each function carefully with interested parties. Ergonomics of controls, location and zones. This must be a collaborative effort with approved layout and functionality
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drawings. Multiple locations controlling the same function. (Ensure the CEO seat has the highest level of priority and that engineering understands the intent.) Note that since the cabin experience is likely to be impacted by COVID-19 risk factors, plan for ultra-violet LED disinfection or some other form of cleansing during, or between, trips.
Test and Delivery
• • • •
Never forget the peripherals of a cabin electronics upgrade, some of which are:
•
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interfaces, it also relies on Bluetooth and walk-on devices, saving on wiring and providing personalized familiar interfaces, as if operating at your favorite coffee shop or home office. When I had a custom home built, it took double the estimated time. The quality was amazing and attention to detail stunning. Assume your cabin upgrade will, at least to some degree, be customized. The mere mention of the word custom seems to stretch time. Be prepared for extra downtime and understand that, in most cases, completion centers have your best interests at heart. They truly want to get you delivered so another hangar slot becomes available. Nevertheless, it is the nature of the business that completions rarely deliver precisely on time. Downtime planning should include extra time for interior R+R, system performance checks, and to undertake corrections. Be prepared to update downtime after the aircraft has been fully accessed. At this point a completion center should review the work scope with the owner’s representative present, to assess for additional requirements. It is rare that a legacy aircraft is found to be exactly as represented. Items and wire routes are not always as, or where, prints and drawings specify. Downtime is driven by accurate data that is only available when the aircraft is open and the work scope is compared against reality.
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• •
No electrical interference In-flight ergonomics No unwanted background noise from the aircraft No electrical noise on displayed video No unexpected vibration Correct pressurization No loose cabin items, equipment or reinstalled interior Operation of cabin control of in-flight functions such as temperature, air flow and lighting Use of in-flight maps and flight tracking Proper high-definition video downloads Use of Wi-Fi Cabin communications, including passenger address and intercom Use of headsets and walk-on mobile devices Satcom and ATG systems
A common flight test practice is to ensure the customer representative is onboard, as well as having some seats filled by technicians to test ergonomics and functionality. Next time we will address considerations for the actual installation of the cabin electronics. Stay tuned! ❙ www.AVBUYER.com
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P097.qxp_Layout 1 16/06/2020 13:21 Page 1
ACTIONABLE INTELLIGENCE FOR ENGINES
INCLUDING... • How is BizJet Engine Maintenance Evolving?
• Maintenance Programs: OEM or Third-Party Provider?
• How to Prepare for an Upcoming Engine Overhaul
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Gerrard Cowan is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan
How is BizJet Engine Maintenance Evolving? Everything about the improved safety and efficiency of today’s business jets relies on data. The engines are no different. Gerrard Cowan asks some of the leading players how engine data collection and analysis is improving the efficiency of engine maintenance… ngine maintenance has evolved significantly in recent years, with sensor improvements and advances in analytics supporting a continuous, real-time approach. Industry specialists believe these advances will underpin an increasingly predictive service in the years ahead. Jet Support Services Inc (JSSI) provides a range of maintenance, repair and overhaul (MRO) services for business jet operators, with engines a significant focus for the company – including routine inspections, engine overhauls and other services. According to Timothy Ferrell, the company’s vice president of technical services, there have been significant diagnostic improvements in both aircraft and their engines, with MRO providers able to monitor faults and proactively replace failing components. Maintenance facilities have embraced modern technologies, Ferrell says. Digital technical manuals –
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often accessible via mobile devices – allow for easier management of information. Specific shops have pre-determined parts requirements that can be accessed through project management software, which is delivered to the workstation “without inefficient trips to the parts room,” he adds.
Faster Data, More Efficiency
The increased availability of data is key to improvements in engine maintenance today. Historically, operators and MRO providers relied on manual data transmission, notes Axel Vöge, head of digital operations – Germany, Rolls-Royce. While this once involved the use of paper documents filled with data points, in more recent years it has involved emails being sent over certain periods (for example, monthly). However, this could mean that by the time the company receives the data, inputs it into its models, www.AVBUYER.com
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and analyses it, the aircraft could have undertaken another 20 flights or more. “So you could only pick up slow trends – if there was some fast-moving development, you would miss it,” Vöge notes. It’s therefore preferable to receive data immediately after each flight, or even during a flight, through an automatic transmission capability. This is also less labor-intensive for customers, according to Vöge. The nature of automatic transmission depends on the age of the engine and the aircraft, he explains. For older systems, Rolls-Royce has retrofit programs where it can add additional equipment and make software changes to the airplane, enabling a data “snapshot” – a picture of the data set at one point in time, which can be compared with an earlier snapshot to detect any changes. As an example, one snapshot could be from takeoff, and another while the aircraft is in flight. www.AVBUYER.com
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With more modern aircraft and engines, however, the company is pursuing continuous data recording, where the data is transmitted constantly. This has progressed furthest with the company’s latest Business Aviation engines – its Pearl engine family – which include an engine vibration and health monitoring system that delivers a step-change to “on-wing” engine intelligence and supports continuous data recording, Vöge says. The aim is to provide instant access to thousands of engine performance and health parameters with high levels of data quality, Vöge adds. The company can ‘talk’ directly to the engine health monitoring system, allowing the MRO team to ask the system to focus on different data points, for example.
Greater Number of Sensors
A spokesperson for General Electric (GE) said the company has made several changes to its
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“...more modern engines have numerous sensors and signals that collect critical data from each flight...” maintenance programs in recent years, including through its OnPoint service, which is targeted at business jets. The company has changed the way it prepares its newest engines, such as the Passport, which powers the Bombardier Global 7500. For this system, GE established a 12-member support team that worked over three years on both the engine and flight test programs, with the aim of involving field support engineers and the product support team more directly with the evolving project. These advances are supported by improvements to the engines themselves. The GE spokesperson said the Passport systems have a greater number of sensors than previous versions. This allows GE to use a digital twin – a computerbased model of a particular engine, which can be updated as new information is available, “giving owners and operators more data about their engine and its condition to plan maintenance”.
A More Continuous Inspection Approach
Modern engines are more reliable than earlier systems, with longer operational lives, according Andy Robinson, Rolls-Royce’s senior vice president for customers and services – Business Aviation. However, customers also “want them to go faster, be lighter and burn less fuel… there’s a balance between what you can do in terms of time on-wing and performance”, he notes. 100 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Ferrell said the more modern engines have numerous sensors and signals that collect critical data from each flight, with companies like JSSI “better than ever at predicting component failure”. However, he said it is not a case of less maintenance being conducted today – rather, it is a more continuous inspection approach. Additionally, “more complex systems and the use of exotic materials have driven significant increases in engine maintenance costs,” Ferrell notes, adding that real-time monitoring will transform engine maintenance, with systems that analyze and wirelessly transmit data during or immediately following flight. This abundance of data will allow OEMs to evaluate reliability trends, driving maintenance schedule enhancements and eliminating unnecessary maintenance tasks.
Helping Define Optimum Inspection Intervals
The GE spokesperson said that data analytics can now be used to define the optimum inspection intervals for specific engines, reducing interruptions and minimising unnecessary inspections. GE also offers a turn-key wireless data solution called Prognostic Health Management + (PHM+) that can be installed and tested in just hours, according to the company. PHM+ delivers alerts about future events, providing faster, more accurate engine field problem resolution.
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Predictive maintenance has enabled Pratt & Whitney to move its customers’ engines to a more fully planned maintenance environment, according to a spokesperson for the manufacturer. The company has worked to synthesize digital engine health management and build a proactive approach, through offerings like its FAST solution which provides advanced monitoring systems for a range of engines (including many of those typically used to power business jets). Pratt & Whitney has worked to embed such technologies into its broader plans, like its Fleet Management Program (for fleets of six or more aircraft) or the Eagle Service Plan for individual airplanes. The spokesperson highlighted the maintenance benefits of advances in modern engines, saying “there is no question that our newer engines were designed and manufactured with much lighter maintenance requirements”. As an example, the PW800 engine used on Gulfstream’s G500 and G600 reduces required maintenance time in a number of areas. Additionally, the company’s new PT6 E-series engine monitors over 100 parameters for predictive analysis and maintenance planning, leading to more flight time, a doubling of maintenance intervals to 600 hours (compared with the PT6A-67P), and other improvements.
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Machine Learning & Artificial Intelligence
Vöge says Rolls-Royce has developed a tool called Engine Network as part of its IntelligentEngine concept. This utilizes machine learning and artificial intelligence (AI) algorithms to analyse the data that the engines produce. The tool enables the company to identify trends across whole classes of engines, he says, such as the context to a particular failure. “This means that we can identify engines that show similar behaviour as other sets of engines in the past, and can proactively take actions before it can lead to problematic situations.” The key data used in maintenance is the health information on the engine. However, there are additional data sets that are also essential, Vöge added, such as environmental information, which can also play a role in assessing the performance of a system. The aim is to use different sources of information to analyse performance at a deeper level. “This helps us understand how the engine is performing, how the engine is being maintained, and how the engine is flying in its environment,” Vöge concludes. “When we understand how a specific, single engine is operating, we can learn how the entire fleet is performing.” ❙
BUSINESS AIRCRAFT ENGINES
on AVBUYER.com
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Time for an Overhaul? What Are Your Options? As consumer demands shift, business aircraft owners and operators are looking at all of their options regarding their engine overhauls, says Elliott Aviation’s Mike Saathoff. But what exactly are the options…?
A
t some point during the life of an aircraft an operator will be faced with major decisions regarding overhauling or upgrading engines. Unfortunately, engines are likely to be the most expensive parts to
maintain. Nevertheless, depending on the make and model of your aircraft, there may be options you can explore that can save money and time, or even increase the performance of your aircraft. Here are a few…
Parts Options
New Exchange Parts: There are many parts options (dependent on engine make/model) that may make sense to some operators. One option operators consider is new exchange parts for an engine. This involves exchanging your part for a manufacturer’s readily available part. The manufacturer will then overhaul your part and bill you back the difference in cost over and above the standard parts. While this is never a cost-saving option, the primary benefit of exchange parts is that you may save time on your overhaul. Parts Repair: From a cost-saving perspective, an operator may choose to have their part repaired. While this is generally a more time-consuming option, the savings can be significant. Parts Overhaul: In some instances a repaired part is not an option and an operator is required to overhaul the part. What’s the difference? Repaired parts are brought to within serviceable limits whereas an overhauled part is brought to new standards. Used or Serviceable Parts: These may also be an option, depending on the components that need to be changed. PMA Parts: Some operators consider non-OEM (or PMA) parts. These are built to the correct standard, but they don’t have the endorsement or the warranty of factory authorized parts.
Flat Rate Exchange: This option means no bill-backs for the repairs on an operator’s exchange engines. An operator exchanges their engine for a flat fee. The benefit is that there are no surprises on the bill-back amount. Overhaul Exchange: This option would charge an operator repairs that would bring the engine back to overhaul status. A further engine option that may make sense to some operators is that of used engines. There are many brokers in the industry that can provide many options from engines with just a few hundred hours on them, through to engines with less than 200 hours remaining.
Upgrades and Other Enhancements
Depending on the type of aircraft, an engine overhaul can prompt the discussion of engine upgrades and other enhancements. For instance, in the King Air market, there are upgrades that are available providing substantial performance improvements over the standard engine model variants. • • •
For the King Air 90 series, these could include the Blackhawk XP135A, which installs two new Pratt & Whitney PT6-135A engines. For a King Air 200 series, this includes the PT6A-42, PT6A52, and PT6A-61. For the King Air 350, this includes the Blackhawk XP67A.
All of these options provide numerous performance enhancements and may increase the overall value of the aircraft. As you can see, there are numerous options available when it comes to engine overhaul. Plan early with your MRO provider, discussing all options applicable to you to ensure you get the most value (time, cost and performance) from your overhaul. More information from www.elliottaviation.com
❙
Engine Exchanges and the Used Market
Another option available for operators is exchange engines. Much like the concept of exchange parts, exchange engines can be available from the manufacturer as either a new engine, or from a group of previously overhauled engines that can be removed from a pool of engines in stock. Generally an operator will have two options:
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Mike Saathoff is the director of sales operations & Engine and Accessory sales at Elliott Aviation. He has more than 25 years of experience in corporate aircraft maintenance, and has held several service technician and quality control positions.
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SPONSORED CONTENT
Rolls-Royce On-Wing Services Team
Delivering Rolls-Royce quality support With more than 3,500 Rolls-Royce powered business jets in service worldwide, the company is the leading Business Aviation engine supplier. Its top priority is to provide an extraordinary level of service that exceeds its customers’ expectations. “What's unique about Rolls-Royce is that we have a separate Business Aviation unit,” says Andy Robinson, SVP Customer & Services, Business Aviation. This unit includes its own services organization; purposely set up to assist the special needs of Business Aviation clients, which differ from those in commercial aviation. The spearhead of this organization for quick responses and special missions is the Rolls-Royce OnWing Services team. It is composed of 50 highly qualified technicians which are strategically placed around the globe with supporting teams of quality and logistics professionals, and is led by Tim Wyckoff, Director of On-Wing Services. More than half of Rolls-Royce’s Business Aviation clients have a fleet of one aircraft, which means they typically do not have a comprehensive maintenance department to perform maintenance on the engines themselves. While this is no problem for predictable, routine tasks, which can be done in one of more than 75 Authorised Service Centres, it can prove to be difficult if you need help somewhere remote. Fortunately, Rolls-Royce created the On-Wing Services team to solve this problem for its unique clientele. These technicians, who rank among the best in their profession, travel to the respective aircraft to perform special maintenance tasks, often to rescue customers from an aircraft-on-ground situation and
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ensure clients make their next planned flight. When a new product is about to be introduced to the market, the team works directly with the airframer, often at their facility or testing location. They support the airframer during the rigorous flight test phase of aircraft/engine development. This opportunity to be the first to work on state-of-the-art Rolls-Royce products positions the On-Wing Services technicians to be the hands-down experts once the engine is in service. Finally, the On-Wing Services team oversees all extensive maintenance and lease engine service. These services take place out of Rolls-Royce’s Indianapolis facility. It goes without saying that the On-Wing Services team is a vital part of Rolls-Royce’s dedicated global service network. All moving parts – from the 24/7 Business Aviation Availability Centre, logistics and spare parts to On-Wing services - have to work like a perfectly tuned machine. This ensures faster response times and reduces AOG downtime wherever the customer is in the world.
New challenges, new solutions Before COVID-19 interrupted our lives there were over 350,000 Business Aviation flights per month. While that number has understandably decreased, Business Aviation operators are utilizing their time machines for repatriation flights, medical missions or to transport urgently required personal protective equipment for front-line medical personnel. Even during the pandemic the On-Wing Services team is supporting customers around the clock. This allows
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the team to maintain its award winning response time to an AOG. But it is not business as usual….Not exactly. In order to respond to the pandemic Rolls-Royce has kept its employees and customers safe by providing N95 masks and wipes for tools, following local guidelines as essential workers to ensure that whether working from an airport hangar or the Indianapolis shop the team is well protected. Also, before traveling to a customer’s facility we provided a required questionnaire to understand potential exposure scenarios. “Although we're still working at full steam, we spend a lot of time cleaning all surfaces between shifts. It's added a burden; it's made it more difficult to get the job done, but safety is the priority” commented Tim when asked about the recent measures taken. While the On-Wing Services team has a wide network, it doesn’t always have an on-site technician where an aircraft is down. Typically the team would take a commercial flight to resolve an AOG, however Tim has had to find other ways. Recently, a team of mechanics had to drive ten hours for a three-hour job. What mattered most is that the job was completed on time and the customer was satisfied. Outstanding service is a major differentiator for Business Aviation customers. It is clear that despite the difficulties presented Rolls-Royce’s On-Wing Services Team has remained committed to the mission and united by a sense of purpose. For this reason Rolls-Royce continues to show why it is the number one service provider in Business Aviation.
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What are the Advantages of Engine Maintenance Programs? If you can sign up your aircraft to a maintenance plan, it's an insurance policy in several ways and can all but eliminate
nasty surprises in the future. David Wyndham explores... here are guaranteed hourly maintenance plans available for all parts of a turbine airplane. These can be separate (like for the APU or avionics system), or combined into one allinclusive package. Engine maintenance programs are the most common type, especially as engine size and power increase. But why are they important? Engine overhauls are expensive. A turboprop engine overhaul can run to $350,000, while jet engine overhauls can cost more than $1m. Within the engine is a number of components that will have different cycle limits. Typically, they can last to the second overhaul, or perhaps even the third. Each of these turbine wheels, blades, etc., can add significantly to the cost of the heavy maintenance. More and more turbine-powered business aircraft are heading into their twenties, and will be facing these cycle-limited items’ additional expenses. Budgeting for these major cost events can be difficult. Even in a good economy, reserving cash can be difficult for a company. And in today’s economy, the cash may not be available. All the major turbine engine manufacturers offer some form of an engine maintenance program, helping alleviate the worry, as do some third-party providers. Under these programs, the aircraft owner pays into
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the plan; there may be a fixed monthly fee, or even a per-cycle fee. The monies go into an escrow account, and, as engine maintenance expenses occur, the money is drawn out to pay for them. The amount to be paid in is set by contract, and thus, an hourly engine maintenance program offers a stable budget.
Stability is Key
Accountants love stability, and so should you. Take the hourly rate and multiply it by the number of hours to be flown, and your engine budget for next year is mostly done. (You may have some minor line maintenance, but that is only minor.) Ultimately, there are no unplanned costs, and no surprises. You should keep in mind that until you get a quote on your engine, the ‘typical average overhaul cost’ is just that – an average. However, an engine maintenance program will cover the cost, even if the cost is over budget. They also offer insurance against rare, but costly, unscheduled maintenance events. Even without the unscheduled coverage, however, there are other bonuses that come with an engine maintenance program, including potential coverage for engine removal, shipping and loaner engines. Loaner engines alone can cost several hundred dollars per hour to rent. www.AVBUYER.com
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David Wyndham is executive sales director and acquisition specialist with Par Avion Ltd. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker.
Added Value to the Aircraft Resale
Another attraction of engine maintenance programs is that they can add value to your aircraft. Aircraft sale price sources like Vref and the Aircraft Bluebook either include the program in their typical values, subtracting for engines not enrolled on a program, or the program itself is an added value. If you are selling your aircraft and the engine maintenance program has accrued $350,000, that can equate as value added to the aircraft in one of three ways: 1. The cash value of the program account itself. 2. The reduction of risk to the buyer as to the status of the engines. 3. The avoidance of a buy-in to fund the maintenance program for an engine not enrolled with a program. Self-accruals for major maintenance can be costly for engines not enrolled on a program. If, for example, you’re buying a long-range business jet that will be due an engine overhaul in five years, you would need to plan for, or reserve, the full overhaul cost of not having an engine maintenance program. If that long-range jet’s engines will cost $1.8m for overhaul, and during the next five years they’ll be flying www.AVBUYER.com
about 1,500hrs, you would need to accrue $1,200/flight hour to save for a pair of overhauls within five years. One other possible advantage to a business (consult a tax advisor regarding this) is that the cost of the maintenance program may be a tax deductible expense as you go, whereas in-house cash accrual accounts are not ‘expenses’ and are therefore nondeductible.
In Summary…
Many financial institutions require that an aircraft’s engines be enrolled on a program to help guarantee its value. It is a common end-of-lease requirement that all major components have at least 50% of their life remaining, with an adjustment made (to the detriment of the lessee) for less than half-life remaining on components such as the engines. Can you guess what dollar value per hour will be used in adjusting for engines nearing the overhaul at the end of a lease? Ultimately, engine maintenance programs are a good way to protect aircraft value, provide stable budgeting, and perhaps even save money over pay-asyou-go engine maintenance. You’d be wise to evaluate these programs for your next aircraft. ❙ AVBUYER MAGAZINE Vol 24 Issue 7 2020
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Which Engine Maintenance Program: OEM or Third Party?
Should you select an OEM-provided engine maintenance program, or go
with a third-party provider? Chris Kjelgaard discusses the merits of each… any business aircraft operators feel it makes sense to subscribe to hourly engine maintenance program coverage. Business aircraft brokers agree, says Brian Foley, founder of Business Aviation consultancy Brian Foley Associates. Not only does hourly engine coverage enhance your aircraft’s operational availability and dispatch reliability, but it makes MRO and operational budgeting more predictable. It can also enhance the aircraft’s resale value and often enables operators to sell their aircraft more quickly than if the engines weren’t covered. There can be other benefits, says Foley. For example, some programs allow specific serialnumber engines to retain the coverage when the aircraft is sold to a new owner as long as that buyer continues to subscribe to the program. Similarly, even if the engines aren’t covered when
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an aircraft is sold, the new owner can begin having them covered—often by paying a pro-rated hourly amount based on the number of flight hours or cycles remaining before each engine’s next scheduled overhaul or inspection.
Which Program is Best?
An important decision remains, though. In many cases, both the engine manufacturer and one or more third-party plan providers offer coverage—so whose does it make most sense for owners and operators to choose? According to Foley, the answer often depends on two, sometimes competing factors: Plan cost, and perception of brand-name value. (Other factors can also influence an operator’s decision, such as where a choice exists between comprehensive coverage and a plan offering cost flexibility by making some services optional.) www.AVBUYER.com
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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.
Another factor (in favour of third-party providers) is that some third-party plans let customers transfer coverage directly from one engine to another – even one of a completely different model. This might happen when a customer sells an aircraft and buys a different aircraft type, or a similar aircraft with different engine serial numbers. Usually less of an important factor is the network of MRO facilities a plan provider uses to perform the maintenance whose costs are covered by its hourly engine plans. Third-party providers largely use the same networks of MRO shops the OEMs use, so the maintenance provided under third-party plans is performed to the same standard and uses the same OEM-manufactured parts as OEM plans.
How OEM and Third-Party Coverage Differs
Some differentiation can exist between OEM and third-party coverage. For example, a third-party provider will need to spend time negotiating a rate with an OEM to be able to have MRO performed at that OEM’s owned facilities. So the OEM often can www.AVBUYER.com
perform a repair more quickly on an engine covered by its own plan, says Andrew Robinson, senior vicepresident customers and services, Rolls-Royce Business Aviation unit. Also, an OEM may use only new parts in performing repairs and overhauls—particularly on engine types it is still producing—while third-party providers may allow greater use of used serviceable parts. Much depends on the engine’s production status, its age, and where it is in its life cycle: The engine operator may only want a partial-renewal rebuild, to get the engine to its next scheduled overhaul or to its retirement. In such cases used parts make sense. “Our number one competition is not the manufacturers, but people who no longer want to accrue for their engines,” says Sean Lynch, program coordinator for third-party plan provider Engine Assurance Program (EAP). “There’s a fallacy out there that there are all these good engines just waiting to be snapped up [cheaply]. There aren’t.” Third-party providers’ plans can cost somewhat less per hour than those offered by the OEMs, but in many cases OEMs and third-party providers offer different levels of coverage to suit different owners’ requirements. For instance, for some of its Business Aviation turbofan engines Pratt & Whitney Canada offers up to five differently priced levels of its Eagle Service Plan coverage. Similarly, third-party plan provider JSSI offers various optional services covering different aspects of the overall engine maintenance requirement, allowing operators not to pay for services they don’t want. Rolls-Royce covers Rolls-Royce engines for business jets of Cessna Citation X size and above, while EAP specializes in six models of older, legacy business jet engines that are no longer in production but still power 15 business aircraft types in widespread service.
Comprehensive Coverage
Despite their different hourly-plan business models, these companies focus on providing the highest levels of premium comprehensive coverage. “We believe that if you focus on one top-tier program, you’re good,” argues Lynch. “We just go for the crème-de-la-crème coverage. “When people see the ‘EAP Comprehensive’ tag and the aircraft is for sale, buyers will know the engines are covered.” According to Lynch, where EAP differs from OEM comprehensive plans is that
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“there are inherent savings that we have been able to negotiate because of the large fleet of engines that we manage.” “What we look to do is to deliver a premium level of service, given that we take full cost risk where third parties don’t,” Robinson says of Rolls-Royce’s CorporateCare and CorporateCare Enhanced plans. “There are no additional costs or surprises to the customer. If we produce it, we cover it. “Rolls-Royce covers the entirety of the [maintenance] event. We have designed the organization around what Business Aviation customers want: Convenience, speed, asset value and asset protection,” he says. Launched 18 months ago, CorporateCare Enhanced plans include maintenance and repair of the engine’s nacelle—even for nacelle corrosion and erosion (a common issue rarely covered by other hourly plans). The coverage doesn’t automatically include Life Limited Parts (LLPs) because a typical large business jet engine doesn’t accumulate enough flight-hours to reach its LLP expiry limits, according to Rolls-Royce, but the company does offer optional LLP coverage for operators of high-usage aircraft. “We cover everything except negligence,” says Robinson. “We know our engines better than anybody. We know all the pressures, temperatures and speeds and we know what each engine is designed to do. So we can identify trends and reliability issues better, before they can disrupt an operation.” According to Lynch, “the biggest difference with [EAP] is the highly personalized experience” his company offers customers. The company polls its customers to find out what their most important priorities are for their engine maintenance coverage and what they like most about EAP’s coverage and service levels. Pilots and operations staff clearly rank “personalized and immediate customer service” as EAP’s top attribute, says Lynch. 112 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
When One or Other Makes More Sense
Ultimately, it probably makes most sense for a Business Aviation operator to choose OEM hourly engine maintenance coverage when covering engines powering newly- or very recently manufactured aircraft,” Foley says. “The data-capture and data-streaming capabilities today’s new engines offer allow OEMs to collect terabits of engine-health and performance data on every flight, enabling them to perform predictive maintenance analytics and proactively inform plan customers of advisable early MRO actions,” he explains. “Timely maintenance then keeps customer engines available for flight whenever required.” For some customers the maintenance-plan decision may be as simple as sticking with the brand name on the engine. However, customers with older or out-of-production engines powering still-widely used aircraft types can benefit from the lower hourly costs and personalized attention third-party providers offer. For instance, EAP offers an annual 75hr minimum for its plans from the get-go, whereas “with others, you typically have to negotiate or work your way down to that,” Lynch says. And in the COVID-19 crisis, EAP has even deferred its 75hr/year minimum requirement, letting customers average out to the end of 2021 a 100hr/year minimum over two years. There are major differences in the markets for hourly coverage of old and new engines. In the markets for which Rolls-Royce’s CorporateCare coverage is available, Robinson says approximately 70% of the entire fleet is covered by its plans, whereas third-party plans account for 7-9% of the fleet (the remaining aircraft aren’t covered). However, of 200-plus Dassault Falcon 10s still flying, only about 40%-50% have hourly engine-plan coverage, according to Lynch. Yet the importance of covering older engines is clear, he says: “The number one predictor of Falcon 50s, Falcon 900s and Falcon 2000s being parted out is their not being on an engine program,” he concludes. ❙ www.AVBUYER.com
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ENGINES Rebecca Applegarth is an Aviation Journalist on the AvBuyer team.
How to Prepare for an Upcoming Engine Overhaul If an engine overhaul is due on your aircraft powerplants in the next year or so, now is the time to prepare. Duncan Aviation's Susie Corn and
Elliott Aviation's Mike Saathoff share tips with Rebecca Applegarth... ngine overhauls are a big deal involving substantial amounts of time and money. Understandably for projects that are so involved an equally significant amount of preparation and planning is required to ensure everything goes smoothly, and that the disruption to your own flight operation is minimized. “Preparations should begin with the person responsible for the aircraft,” Saathoff suggests, highlighting the importance for the flight department to take a proactive approach to the overhaul from the outset. “The aircraft operator’s representative is ultimately responsible to ensure a timely completion,” Corn adds. “This is likely to be the maintenance technician, the director of maintenance/operations, or the chief pilot.” Given the magnitude of the typical overhaul event, and depending on how a flight department’s particular budget system works, “engine overhaul preparations should start at least a year out so the
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operator can make a plan to pay for the expense,” Saathoff suggests. “Financial obligations are a significant disclaimer in deciding when to prepare for your engine overhaul,” Corn agrees. “Well in advance is advisable – at least a year, based on your average hourly usage.”
What Should Preparations for an Overhaul Include?
A crucial thing for the flight department to factor is whether the flight hours are likely to increase over the time leading up to the overhaul, since an increase in flying will bring forward the overhaul due date. Moreover, assessments should be made to determine what the pool of available replacement parts is like for a particular make/model powerplant. Similarly, what’s the availability of rental engines to keep you flying while the regular engines are overhauled? www.AVBUYER.com
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“Having the right rental engine insurance requirements and associated bailment agreements, logistics insurance coverage, and engine provider insurance coverages for the event – either on-site or at the engine provider's location – is vital when preparing for an engine overhaul,” Corn elaborates. “You should also consider potential Chapter 5 requirements that should be included during an engine’s removal, such as the engine mounts. This will help avoid the added cost to remove the engine again before it is necessary.” The coordination of tooling, shipping, support equipment for engine removals, potential engine pre- and post-run requirements, rental engine shipment and installation, and your engine installation upon completion of the overhaul are all additional and important considerations. “What’s more, it is important to understand the type of coverage the engines have, and any associated requirements for approval that are www.AVBUYER.com
applicable over and above the costs,” Corn explains. Whether an engine is enrolled on a warranty and/or an hourly engine maintenance program or not will also create many variables. “We always advise that it would be extremely beneficial to speak with the experts at the [warranty/maintenance program] provider to fully understand any specific details relating to that – again, well ahead of time,” Corn says. “Proper planning for the overhaul can be an opportunity to understand the benefits and differences for the best [warranty] support for your engine event before, during, and into the future,” she argues. Finally, don’t overlook the need to request or perform a logbook search, which can either be completed onsite at your location (emailing the engine logbook scans to the MRO shop), or shipping the logbooks to your engine service provider. (If you ship the logbooks, it’s highly advisable to scan them first in case they get lost.)
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“...ultimately, it’s important to find an overhaul center you trust, working with them through the entire process.” The Cheapest is Not Always The Best
“It’s important to understand that sometimes the option that looks the most reasonable in terms of cost may not be the best option,” Saathoff explains. So time should be factored into the preparation process to explore the range of choices available and establish the correct one. “Options might include engine overhaul, engine upgrade, and replacement of engines with used or in-service engines,” Saathoff explains. “Here, the length of time the owner is planning to keep their aircraft will be vital to determining which option makes sense.” And while the airplane engines are being overhauled, “is the owner looking to accomplish any other work at the time (i.e. paint, interior, large inspections, or avionics installations)? Combining this work can usually save time and money for the customer.”
Communication is Key
Corn and Saathoff agree that, ultimately, it’s important to find an overhaul center you trust, working with them through the entire process. “It’s crucial to understand that in most engine situations there will be a cost that goes higher than you expected,” Saathoff elaborates. “Believing that
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won’t happen is not realistic, and can make this process more difficult.” Therefore, communication is key to the relationship. “Communicate and take advantage of what is offered by the service provider and engine overhaul facility,” he continues. “A reputable facility will let you review all of the items that need to be replaced. But it helps if you ensure you understand the process and appreciate where the money is being spent.” “Communicate your expectations, and be available and responsive to your provider for a successful event,” Corn elaborates. “Communicate, too, with your provider if your usage hours increase or decrease impacting the schedule. And during the event, stay engaged with your provider to maintain the scheduled turn-time.”
Keep Calm and Carry on…
With all else planned and factored, Saathoff’s closing remark will help carry you through the process: “Stay calm throughout the process and communicate. This will lead to a positive engine overhaul experience.” ❙ More information from www.duncanaviation.com or www.elliottaviation.com
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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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Engine Update: What are the Latest OEM Developments?
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What is the next big step in business aircraft engine technology,
and what will developments from the engine OEMs mean for
operators in the near- and mid-term future? Dave Higdon reviews… here's a well-known pattern in aviation that dates back to the very first powered aircraft, as successfully flown on a windy Thursday morning in December 1903. Two inventions made history that day. The first, and bestknown, was the Wright Flyer conceived and built by Orville and Wilbur Wright. The second was the engine and propeller drive built by Charles Taylor for the aircraft. This trio of inventive men established a baseline for aviation development that continues to this day. There can be no new airframe innovations without the powerplant to match. History is replete with examples. And powerplant innovation continues unabated today, though the popular targets change and evolve. For example, in the 1970s through the 1980s, bigger and more powerful engines dominated research and development (R&D). By the 1990s, companies such as Williams International shifted the focus to smaller, lighter and more fuel-efficient engines – turbofans that held the keys to the success of everything from the Cessna CitationJets to the Eclipse 550 and Citation Mustang. In recent years, fuel efficiency, long range and extended maintenance intervals have dominated turbine-engine development. Today, with Business Aviation enjoying five different efforts to field a supersonic business jet, powerplant R&D focuses as much on speed and high-altitude performance as pure power or range.
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The State of Progress
Developing new aircraft engines consumes huge amounts of time, manpower and capital, but the wheel never seems to stop turning, partly because airframe OEMs are on a continuous quest to improve their products. “There haven't been a lot of jumps forward in engine technology lately, except for GE's new turboprop engine,” noted aviation analyst Brian Foley. “I think it’s a sign of things to come that the next step forward in Business Aviation engines will be fuel efficiency. “What sold the Boeing 737 MAX and Airbus A320neo was the 20% leap in fuel efficiency,” he adds. The key element to the neo's fuel efficiency is the www.AVBUYER.com
new Pratt & Whitney PW1000G geared-fan engine. “I expect that will next trickle down to Business Aviation, though the 20% won't mean as much as it does for the airlines,” he predicts. That doesn't account for some ongoing developments – and the powerplant OEMs' continuing quest to “lower ownership and lifecycle costs and other aspects of engine ownership,” according to Foley. “That would kill two birds with one stone,” Foley explained. “Not only would you have lower ownership costs, you'd lower your carbon footprint due to the reduced fuel use.” Indeed, with Europe's steps to reduce carbon pollution, those two steps hold significant appeal.
Another Key Goal - Speed
Decades after the world's military services embraced dozens of aircraft capable of achieving speeds as high as Mach 3.0 (and greater), civilian supersonic flight has yet to achieve a level of appeal and success. Several supersonic business jet (SSBJ) proposals emerged in the 1990s, but none progressed to test-flight level. Nevertheless, Boom and Spike are companies pursuing development of their own SSBJs. Spike promises no sonic boom while Boom expects its noise footprint to be ‘managable’. And Aerion Supersonic is developing the highly promising eight-passenger, three-engine AS2. In the case of the AS2, an airframe capable of fuelefficient flight both above and below Mach 1.0 has been developed, but it can't get off the ground without the necessary powerplants – engines with good fuel efficiency on both sides of the sound barrier. “It's nice to see some activity to make a supersonic business jet,” Foley says. “There are engines to achieve supersonic [flight] now, but you'd have to overhaul the engine in far fewer hours – 300 hours or so.” Other than supersonic, Foley suggests, “there's really no place to go with business jets” in terms of range and size, with a field of competitors more than 40 airplanes deep, ranging from Very Light Jets to Bizliners. GE engines is developing the powerplant for Aerion. The company has a history in Business Aviation, with the CFE738 powering the Falcon 2000
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“Aerion Supersonic is developing the highly promising eight-passenger, three-engine AS2.” and the GE Passport powerplant for the Bombardier Global 7500 and 8000. And the company’s pylonmounted HF120 powerplants propel the HondaJet. The company’s ‘Affinity’ powerplant is approaching its initial tests. Designed as a twin-shaft, twin-fan turbofan capable of flying faster than Mach 1.0 over water and at subsonic speeds over land. “This isn’t a case of just taking an engine and putting it in a nacelle pod on the side of an airplane or under a wing,” Brad Mottier, GE Aviation's head of Business and General Aviation, specifies. “There’s two fans on this engine with the highest bypass ratio ever, for any supersonic engine.” GE is designing the engine to support an altitude ceiling of 60,000 feet for the AS2 and plans a new next-generation full authority digital engine control (FADEC) system for the aircraft. The engine is based on technology taken from GE’s current commercial airline engine family (the GE-9X that’s designed to power Boeing's 777X). Aerion’s AS2 design sports three Affinity powerplants, which are optimized for high fuel efficiency at subsonic speeds. GE eschewed any afterburners for the jet as the AS2's nacelles will feature a special non-augmented supersonic exhaust designed to lower take-off noise and handle the tremendous variation in airflow through the nacelles on both sides of Mach 1.
For the Propjet Crowd
GE edged into the turboprop engine business more than a decade ago with its purchase of Czech engine maker Walter Engines. The acquisition led to GE's
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development of the H75 and H80 turboprop powerplants, the former selected by Nextant Aviation for its G90XT re-manufactured King Air 90s. GE is advancing its engines by employing some of the new H-series technology in its new Catalyst turboprop engine, developed for Textron Aviation's Denali single-engine turboprop. The engine will be rated at 1,300shp and have a 4,000-hour TBO, thanks to improved production methods, lower parts count, lighter weight and improved fuel consumption. At the 2019 EAA AirVenture fly-in, GE displayed a full-size mockup of the all-new engine, assembled completely out of 3D printed parts. The display illustrated where parts of the engine case could be thinner in areas with lower stress, and revealed where and how internal channels can be incorporated into the original manufacturing process – without the moretraditional approach: grinding off or milling out materials from parts already made. This use of 3D printing to manufacture parts for the production engines reduces weight at the same time it adds strength. Along the way the parts count declines, reducing the number of vendors supplying assemblies – all of which help lower costs.
In Summary
While many of the areas for breakthrough are already covered in terms of range and size, according to Foley, ongoing developments at the engine OEMs revolve around developing smarter, more efficient, cleaner and less labor-intensive powerplants that do what they were designed to do at ever lower costs. These are all keys to the successful future of Business Aviation. ❙
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Aradian June.qxp 20/05/2020 09:56 Page 1
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Community News June.qxp_Layout 1 16/06/2020 17:04 Page 1
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OEM Bites
Bell Helicopter has completed noise testing on the Bell 525 Relentless to satisfy FAA Part 36 certification standards during a series of sorties conducted in California. The test aircraft flew 16 hours over the course of five days for both company noise testing and to satisfy certification requirements. www.bellflight.com
Dassault Pushes Ahead With Falcon 6X Seeking to emerge from the COVID-19 crisis in a strong position, Dassault is pressing ahead with its development of the Falcon 6X… ollowing the introduction of new health and safety measures, and despite the ongoing uncertainties surrounding COVID-19, Dassault Aviation has focused on ramping up its production lines, and is working to keep its Falcon 6X program on track. According to Carlos Brana, executive vice president of civil aircraft, the resumption of production has gone smoothly and the company’s priority is to “emerge from this crisis in a strong position.” That includes sustaining the company’s research and development of new programs. “We have a lot of development activity going on,” Brana said, adding that Dassault is focused on moving ahead with work on its Falcon 6X pre-
F
production aircraft. “We have commitments to customers that we intend to honor. As previously announced, first flight will happen early next year.”
R&D Activity Goes Beyond the Falcon 6X…
Research and development activity is pushing forward for programs in addition to the 5,500nm Falcon 6X twinjet, said Brana. “We have some interesting things in the pipeline, too, including an all-new Falcon model and new safety, comfort and health features.” Dassault has yet to reveal plans for its “future Falcon”, but those details are anticipated later this year. More information from www.dassaultfalcon.com
Understanding the Business Aviation Market - with 126 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Epic Aircraft confirmed it has completed delivery of its first two E1000 all-composite, single-engine turboprop aircraft, following the successful conclusion of its FAA Type Certification program last year. www.epicaircraft.com
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Textron Aviation announced the successful first flight of its new twin utility turboprop, the Cessna SkyCourier. The milestone flight is a significant step toward entry into service for the cleansheet aircraft, and it kicks off the important flight test program that validates the performance of the Cessna SkyCourier. www.txtav.com
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The GAO Report Affects Dealers Too The much-awaited report from the Government Accountability Office (GAO) regarding Federal Aviation Administration (FAA) Registry practices was released in March, and the title is telling: “FAA Needs to Better Prevent, Detect, and Respond to Fraud and Abuse Risks in Aircraft Registration”. The FAA is responsible for issuing aircraft registration to individuals and entities meeting certain requirements, and is also permitted to issue dealer certificates, or licenses, in support of aviation commerce – the same requirements apply, with the addition of substantial engagement in manufacturing or selling of aircraft. The main purpose is to allow manufacturers and dealers to conduct test flights for prospective buyers. To this effect, dealers can obtain more than one certificate, as well as use a certificate for any aircraft they own. The license is also generally valid for a dealer’s agent, employee, or prospective buyer. Specifically, the GAO’s report was based on analysis of FAA Registry function and ability to handle fraud and abuse risks in aircraft registrations, including dealer certificates. It’s well known that the FAA has generally relied on self-certification of registration applicants’ eligibility, requiring limited personally identifiable information (PII) that typically isn’t verified – the GAO’s report covers this factor in full, saying that the FAA’s focus on the completion of required documents limits their ability “to prevent fraud and abuse in aircraft registrations, which has enabled aircraftrelated criminal, national security, or safety risks”. The GAO also discovered that the FAA does not routinely consider data from the Office of Foreign Assets Control (OFAC) in the application process – which discounts individuals or entities who are
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currently under sanctions. Similar happens with dealer certificates – the FAA does not verify identity, check for prior violations, or enforce requirements. In fact, FAA regulations do not contain any “enforcement mechanisms to ensure continued dealer eligibility once approved or at the time of renewal”. Because of these issues, as the GAO analysis discovered, fraud can occur. In one case, discovered years after the scheme had been enacted, a broker used falsified registration applications and bills of sale (with forged signatures for over 20 aircraft) to acquire $3 million from a bank. The broker wanted to save his failing aircraft sales company, and essentially pledged 22 aircraft he didn’t own as collateral to do so. This person was also a licensed dealer who even renewed his certificate while implementing the scheme. Unfortunately, the FAA’s application process didn’t catch the fraud, and resulted in some of the rightful aircraft owners being temporarily grounded.
What does all of this mean for dealers though? Find out in the full article online at www.avbuyer.com
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Naveed Aziz
John Berizzi
Marc Bouliane
Rebecca Johnson
Philip Louis Amadeus has been named sales director at Aero Asset. He will be based in London.
Rohit Kapur was appointed President of JetHQ Asia, a newly created division of the company.
Naveed Aziz has been promoted to vice president and general manager of the Gulfstream Dallas facility.
Kani Saritas recently joined JetHQ as vice president of sales, based in Dubai, United Arab Emirates.
Patrick Margetson-Rushmore, co-founder and CEO at Luxaviation UK, recently announced his retirement citing some health issues. John Berizzi has been appointed to the US sales team at Universal Avionics. He becomes SouthCentral US regional sales manager.
Robert M. Volmer has joined Helicopter Association International (HAI) as VP of marketing communications. John Wasmund has been appointed to the US sales team at Universal Avionics as Southwest US regional sales manager.
Marc Bouliane expanded his role at Universal Avionics. In addition to being vice president of business development, his role will include marketing and services.
Bernhard Wipfler joins Sparfell Aviation Group as the MD of LaudaMotion Executive, Sparfell's Austrian AOC. Through its AOC, Sparfell operates a fleet of Learjets, Challengers, Globals and Gulfstream 650ERs.
Rebecca Johnson, is the new President of JetHQ EMEA, a newly-created international division of JetHQ. Johnson, a veteran aviation executive, was vice president of sales prior to this promotion.
Wu Zhendong is appointed as the new chairman of Asian Sky Group (ASG), and will lead all of ASG's and Asian Sky Mediaâ&#x20AC;&#x2122;s business units, alongside managing director Jeffrey Lowe. T
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Rohit Kapur
Kani Saritas
John Wasmund
Wu Zhendong
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
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.com www.AVBUYER.com
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Bizav Marketing Matters - Now More than Ever By, Marj Rose, President, MarketLift, Inc. As the pandemicâ&#x20AC;&#x2122;s impact continues to unfold, there is no doubt business aviation companies are cutting costs and expenses to minimize the damage caused by months of inactivity or to just stay in business. Unfortunately, when the going gets tough, a common department that is targeted for cuts is marketing. In many instances, these cuts drastically impact small business-to-business (B2B) companies like we have so many of in business aviation. I have experienced the downsizing of marketing departments in our industry firsthand, and the phenomenon is always amazing to me. When a company needs more sales than ever, many choose to cut or sometimes dissolve the marketing department altogether. In my opinion, this approach is giving-in to the unfortunate environment, sort of like waving a white flag with a â&#x20AC;&#x2DC;wait it out mentalityâ&#x20AC;&#x2122; instead of being proactive and focusing on a creative solution, starting with marketing. In our current environment, now is the time that we need to retool, refocus, and revive our marketing strategy and tactics, and prepare to recover from this unprecedented turn of events. How can this be done without your marketing team? There are many challenges with B2B aviation marketing that differ from consumer marketing. Sales cycles are typically extended and complex, pricing is often intricate, and relationship building is vital. Therefore, in many cases, B2B marketing takes more time to tell the story, foster relationships, and build the value proposition that will attract new buyers. This process can require more marketing resources and budget, not less, to move prospects through the extended pipeline, resulting in a sale. Why not take advantage of this time to refocus your marketing? Find economical and efficient ways to get close to future customers, and even closer to your current customers. Our customer relationships that have been built over the years are being threatened right now because of the lack of interaction, consequently finding ways to connect with current customers is a task that marketing and customer service teams can do together.
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It is always more costly to acquire new customers than to keep existing ones happy and engaged.
Develop Alliances
Now could also be the perfect time to develop alliances with other companies as preferred vendors or partners that will benefit both businesses. A simple relationship that can be spooled up quickly could provide pooled marketing options, cross selling opportunities, add credibility and brand equity.
Create Webinars
Trade shows are a faint memory now but are traditionally a great source of lead generation, so how do you make up for them? Webinars, videos, or informative online presentations are a reliable substitute for exhibition participation while your sales and marketing teams are working from home. You might consider offering an incentive to participants, like a drawing or free consultation on your service, to attract your target audience.
Support a Charity
Actions speak louder than words, especially now in these trying times. Consider teaming up with a charity that closely aligns with your business values if you have not already. If possible, offer ways customers can engage in the activity, such as matching donations to the charity. Nothing feels better than giving back to our communities in times of need and your customers will recognize this.
Value the Marketing Team
I know it comes down to the bottom line, but if you have a talented marketing team, hang on to them as they know and understand your business and can help you get through these times. Not only will it take a substantial amount of valuable time down the road to recruit and train new marketing staff, but the recovery could then be in full motion. Now more than ever, we need to keep marketing!
Marj Rose founded MarketLift, Inc. in 2006 to
assist business aviation companies with strategic marketing, communications planning, and implementation. Marj is a private pilot with extensive sales, marketing, and PR leadership experience in the aviation industry. Currently, she is Chair of the NBAA Local & Regional Groups committee and was founding president of the North Texas Business Aviation Association. Marj earned a Bachelor of Science degree from Indiana State University in Aviation Administration and has always had a passion for business aviation.
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PRODUCTS & SERVICES Aero-Dienst Beefs up AOG Support
Despite ongoing international flight restrictions AeroDienst is continuously available for customers with their Mobile Repair Team (MRT). After an engine change on a Learjet45XR, the aircraft of the longstanding customer Luxembourg Air Ambulance (LAA) is once again ready for its worldwide air ambulance repatriation services. Through remote troubleshooting the team was able to identify the engine problem together with Honeywell and the LAA technicians and decided to send it to the in-house engine shop in Nuremberg for repair. Because of their good relationship with Honeywell, Aero-Dienst was able to quickly organize a rental engine for the time of the repair and ship it to the customer base www.aerodienst.de
AirMed Invests in Expanding Global Fleet
AirMed International announced that it has added a medically configured Hawker 800XP aircraft to its Birmingham, Ala. base. The dedicated medical transport aircraft joins two other AirMed owned and operated Hawker jets based at Birmingham International Airport. "The addition of this dedicated medically equipped aircraft demonstrates our commitment to reinvesting in our airborne assets and exceptionally trained medical and aviation personnel," said AirMed International President Denise Treadwell. "We are making these added investments so that we can continue to provide the highest quality medical care to our patients, and AirMed International members." www.airmed.com
ARGUS Partners with AirNav Systems
ARGUS International, a global leader in specialized aviation services, announced the selection of AirNav Systems to provide global flight and ground aircraft tracking services. The partnership between ARGUS - TRAQPak, and AirNav delivers the next generation in aviation market intelligence. Using real time and historical flight tracking data, TRAQPak provides the most targeted and strategic information available. The TRAQPak and AirNav alliance makes TRAQPak a singlesource for ground aircraft tracking including gate-to-gate, 130 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
real-time ADS-B, FAA SWIM, and EUROCONTROL data coverage. Additionally, aviation professionals can now receive enhanced Intercontinental, European, US, Canadian and Caribbean coverage, resulting in the best in web-based market analysis and flight tracking to analyze current and historical aircraft activity trends www.argus.aero
Jetflite’s 650 Logs 100 Hours in First 14 Days
Finnish charter and management firm Jetflite has begun to rack up hours already on its newlydelivered Bombardier Challenger 650 as it assists with Covid-19 relief efforts. Within 14 days of delivery, the Challenger had completed 100 hours of flight that included the repatriation of dozens of patients affected by Covid-19. Bombardier delivered the aircraft to Finnish industrial conglomerate and Jetflite parent Wihuri Group on March 26, initially configured for executive charter service. The interior design enabled Jetflite to quickly adapt the 12 to 16-passenger VIP aircraft for air ambulance use, accommodating two stretchers, a portable isolation unit, personal protective equipment, Covid-19 test kits, and a medical team www.jetflite.fi
Collins Exits from Trip Support
Collins Aerospace has discontinued its International Trip Support (ITS) business, saying softening demand is the reason. “The ITS business has experienced declining sales and market demand for some time due to the shift away from hightouch, concierge-level service toward selfservice,” the company said. “Due to declining demand and profitability, coupled with the impact caused by the ongoing pandemic, this business is no longer viable going forward.” Collins Aerospace will maintain its Flight Operation Systems (FOS) tech support, as well as program management and engineering teams in Houston. Collins Aerospace built up much of its International Trip Support base through its acquisition of Houston-based Air Routing International a little more than a decade ago. It expanded this base with the subsequent purchase of ArincDirect in late 2013, providing it with a suite of expanded trip support, flight planning, datalink, and cabin communication capabilities. www.AVBUYER.com
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PRODUCTS & SERVICES ArincDirect will continue to provide its flight planning and data link services, FOS, and cabin communications to customers www.collinsaerospace.com
Constant Sees Rise in Demand for CL604 Fusion Upgrades
Constant Aviation say they are on track to install the Collins Aerospace Pro Line Fusion flight deck in nearly 15% of the Bombardier Challenger 604s in the U.S. The Cleveland, Ohio-based MRO provider has completed 25 Fusion installations since 2018 and expects to perform 35 more by early next year. “Operators looking to maximize the investment in their aircraft are electing to upgrade to Pro Line Fusion,” said Constant director of avionics sales Blake Hogge. “With one installation, their airplanes are NextGen compliant with unparalleled situational awareness and safety enhancements, and they are well-positioned to operate into the future. This provides peace of mind and improves the airplane’s resale value.” www.constantaviation.com
Cutter’s New Distance Record
Cutter Aviation achieved a new company record flight for one of its light jets recently. The HondaJet, which was equipped with the Aircraft Performance Modification Group (APMG) package that yields performance similar to the upgraded HondaJet Elite, departed Phoenix Sky Harbor Airport at 11:58 a.m. MST and landed in Kelowna, British Columbia, at 3:37 p.m. PDT. The twinjet then returned to its Arizona home base at 6:54 p.m. MST, completing a the 2,437-mile roundtrip in 6 hours and 56 minutes, including a 38minute refueling turn. Cutter Aviation is now the largest fleet operator of HondaJets in the continental U.S. with seven in operation, five of them available through its charter division www.cutteraviation.com
Dassault Converts 900B for Medical Cargo
Dassault Falcon Service (DFS) recently completed a passenger-to-cargo conversion of a Falcon 900B in record time at Paris-Le Bourget. Conversion of the company-owned trijet took eight days from receiving the www.AVBUYER.com
order to getting approval from the Directorate General for Civil Aviation (DGAC) under a fast-track exemption. Technicians stripped passenger seating and furnishings and installed equipment in their place to stow and secure freight in the aircraft, which carries capacity for 13.5 cubic meters of cargo or 6,325 pounds (2,884 kg). Because the conversion involved no major modifications to the Falcon’s access doors or other systems, DFS said the conversion is easily reversible. DFS customer service, engineering, and operating teams participated in the modification www.dassaultfalconservice.com
Duncan Amends Gogo AVANCE STCs
Duncan Aviation is pleased to announce that it has partnered with Gogo Business Aviation to provide new installation options for the Gogo AVANCE L3 and the Gogo AVANCE Smart Cabin System (SCS). The Engineering & Certification Services teams at Duncan Aviation are currently amending three existing Supplemental Type Certificates (STCs) for the Gogo AVANCE L5 Wi-Fi system. Once completed, customers will be able to install the Gogo AVANCE L3 Wi-Fi system or a standalone SCS in more than a dozen aircraft models, which currently include the following: Gulfstream GIV and GIV-X Bombardier Challenger 604, 605, and 650 Bombardier Challenger 300 and 350 www.duncanaviation.aero
Duncan Renews Agreement for Securaplane Technologies
Duncan Aviation has finalized a further 3year sales and service agreement with Meggitt PLC for the supply of Securaplane Technologies. The company has been a distributor of Meggitt’s Securaplane product line since 2005, and is one of only two in North America authorized to service, sell, and distribute Securaplane Sealed Lead Acid main ship and emergency batteries. “Duncan Aviation has been a reliable distributor and repair center for Securaplane products for many years. We worked AVBUYER MAGAZINE Vol 24 Issue 7 2020
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PRODUCTS & SERVICES closely together to renew our agreement tackling new distributor requirements,” said Kevin Miesbach, Duncan Aviation’s Components/OEM New Business Development Manager. “In addition to being a distributor and MRO, we have assisted Meggitt’s Securaplane Technologies with their Supplemental Type Certificate efforts and government support.” In addition to repair and reblock capabilities, Duncan Aviation Parts & Rotable Sales has an on-hand inventory of Securaplane batteries available for sale www.duncanaviation.aero
FlightSafety’s New G650 Simulator
FlightSafety International's training for the Gulfstream G650 is now underway at its Dallas Learning Center using a new FlightSafety FS1000 simulator. Dallas is FlightSafety’s fifth G650 training location and this is the sixth full flight simulator the company has built to serve operators of the aircraft around the world. “Our customers who fly the G650 can now benefit from a wide variety of courses in Dallas using this new advanced technology simulator,” said Nathan Speiser, Executive Vice President, Sales and Marketing. “They include our industryleading series of Advanced Training Courses, Required Navigation Performance Authorization Required (RNP AR), Enhanced Flight Vision System (EFVS) Touchdown, and Rollout, as well as initial and recurrent training. We also offer the ground school portion of recurrent training online through our instructor-led LiveLearning system.” www.flightsafety.com
Garmin Joins Coalition
International announced last week that it has joined a broad aviation industry coalition in urging the Federal Communications Commission (FCC) to reconsider its “Report and Order” to repurpose C-band frequency spectrum nearby to the frequency band that is used by safety-critical FAA-certified radio (radar) altimeters, including Garmin’s GRA 5500 and GRA 55. Joining Garmin to express concerns were a coalition of “aviation petitioners” that also included the Aerospace Industries Association, the Aerospace Vehicle Systems Institute, the Air Line Pilots Association, Airbus, Aviation Spectrum Resources, the General Aviation Manufacturers Association, Helicopter Association International, Honeywell International, the International Air Transport Association, and the National Air Transportation Association. 132 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
The Aviation Petitioners asked the FCC to reconsider, in part, its March 3, 2020, Report and Order to take into account critical record evidence of the potential for harmful interference to FAA-certified radio altimeters operating in the 4.2 to 4.4 GHz spectrum allocation from prospective flexible use operations in the newly created 3700 to 3980 MHz range www.garmin.com
GE Refines Affinity Supersonic Engine
GE Aviation is working closely with Aerion Supersonic, which selected the roughly 20,000lb-thrust (89kN) Affinity to power its in-development AS2, an eight- to 10-passenger supersonic business jet. Aerion’s timeline calls for the three-engined AS2 to complete first flight in 2024, followed by a 2026 service entry. “We continue to be reluctant to reveal the final core design until after product design review,” says GE, adding that the engine will be based on “technology derived from GE’s current commercial airline engine family”. GE insists the Affinity programme is anything but an academic exercise. The company has “hundreds of engineers” assigned to the project – a number that could triple by yearend – and views Affinity as the first member of a new family of “medium-bypass” supersonic aircraft powerplants www.geaviation.com
Luxaviation Acquires ParisLe Bourget VIP Terminal (FBO)
Luxaviation Group, one of the largest private aircraft operators worldwide headquartered in Luxembourg, announced the acquisition of the prestigious Paris- Le Bourget VIP Terminal (FBO), from Aéroports de la Côte d’Azur (ACA) Group and handled by its Sky Valet France company. Patrick Hansen, CEO of Luxaviation Group says: “With the acquisition of the prestigious Paris-Le Bourget VIP Terminal, we are able to further grow our 26 strong VIP Terminal network under our ExecuJet Brand, and provide our clients with an unrivalled full-service ground handling in an unparalleled location. We continue to focus on our core aviation services and further concentrate on innovation and expansion. As a group, we are determined to drive the curve and to invest worldwide into the sector’s development.” www.luxaviation.com www.AVBUYER.com
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PRODUCTS & SERVICES Pro Star Connects PC-24 with Gogo AVANCE L5
Pro Star Aviation, a leading innovative aerospace modification facility, has recently completed the first installation of the new Gogo AVANCE L5 into a Pilatus PC24 aircraft. The Gogo AVANCE L5 was an upgrade from the factory installed ATG-2000, delivering highspeed 4G aircraft connectivity enabling passengers and crew access to video streaming, web/email, voice/text, and more. Pro Star Aviation was able to complete the installation in less than two weeks using FAA Approved data. Pro Star Aviation has a team of in-house engineers and a DER which allowed them to create a custom engineering package specifically for the PC-24 aircraft. The Gogo AVANCE L5 is a single unit configuration, with a 4G network that allows for up to 40 devices to connect simultaneously. The AVANCE L5 provides broadband connectivity to keep passengers and crew connected while in the air. Browsing and secure connections such as corporate VPN access, adds value to the aircraft www.prostaraviation.com
Robinson Improves Bird Strike Protection
Robinson Helicopter Company has introduced optional impactresistant windshields for R22, R44, and R66 helicopters to provide protection from bird strikes. Due to the lack of requirements governing small category helicopters, Robinson based the impact-resistant design on FAA requirements governing large transport category helicopters. The new windshields are constructed of tough, energyabsorbing polycarbonate (standard windshields are made of acrylic) and installed with distinctive retention hardware. A special hard coating provides protection from scratching and weather degradation. Tests were conducted at the Southwest Research Institute in San Antonio, Texas where a 2.2 lb (1 kg) bird, the FAA’s standard test weight, was used to simulate a bird strike. Tests demonstrate the R22’s windshield provides protection at impact speeds up to 90 knots, while the R44 and R66 windshields provide protection at impact speeds up to 100 knots www.robinsonheli.com www.AVBUYER.com
TAG Asia Scores another First
AsBAA Platinum Member TAG Aviation Asia becomes the first authorized MicroShield 360 application center in Asia Pacific region. MicroShield 360 is the first ever EPA/FDA approved antimicrobial coating that kills 99.99% of pathogens and ensures the surface is protected from germs and viruses for an entire year. ”The addition of Microshield 360 to TAG Aviation Asia product line is another milestone in our quest to provide the business aviation industry with the latest and greatest resources across Asia Pacific region say Vince Picard, Maintenance Manager. Microshield 360 has already been applied on over 100’s of business jets, offering passengers and crew peace of mind on their safety when flying during these challenging times!” www.tagaviation.com
Garmin Pilot Adds Configurable Doc Viewer
Garmin announced the addition of new features to the Garmin Pilot app on Apple mobile devices. New enhancements to the document viewer allow customers to configure folders so they can more easily organize documents such as pilot’s guides, cockpit reference guides and more, within the app. Additional features include the display of elevation information in the radial menu, night mode on approach charts, the option to print the navigation log and more. Documents stored within the document viewer in Garmin Pilot are now synced across all Apple mobile devices running Garmin Pilot. These folders are also customizable by color and can be reordered for improved organization of documents such as pilot’s guides, cockpit reference guides, checklists and more www.garmin.com
Magellan launches Pay-as-Yougo Programs
Ideal for new private flyers transitioning from commercial travel, Magellan’s new membership programs provide the consistency and flexibility of guaranteed access to four aircraft categories, with minimal initial investment and lower annual renewal rates. Members enjoy 12-month locked-in hourly rates and can fly on as little as 12 hours’ notice, with no blackout dates or peak surcharges. AVBUYER MAGAZINE Vol 24 Issue 7 2020
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“We are simplifying our programs to focus on lowering barriers to entry. Now, more than 9 million American households and businesses that used to rely on airline service have unprecedented access to purely private business aviation solutions at an unbeatable value,” says Magellan Jets President and Co-Founder Anthony Tivnan. “Traditional views around private jets are outdated. We’re here to help America fly again.” www.magellanjets.com
Covid-19 prompts Changes to US and Canadian Customs Policy
The National Business Aviation Association (NBAA) has announced that as COVID-19 continues to dramatically impact day-to-day flight operations, the unanticipated downtime has allowed US and Canadian customs officials to carefully examine – and in some cases, make meaningful changes to – their respective policies. “The post-pandemic landscape and other hot topics were the focus of the latest NBAA GO International Operators Conference 2020 (IOC2020) live session, “U.S and Canadian Customs Update,” featuring Eric Rodriguez, chair of the U.S. Customs and Border Protection (CBP) General Aviation Working Group, and Anthony Norejko, president and CEO of the Canadian Business Aviation Association (CBAA). “One major change the CBP has been working on during the pandemic is a standardization of the landing-rights process across the hundreds of airports where CBP services are normally available. Observing that challenges for operators posed by inconsistent local processes were exacerbated by quickly changing pandemic regulations, the CBP has been developing an automated system to reduce operator busywork, while clarifying when and how landing rights are granted. As one example of progress in this area, the CBP has recognized that information provided to the agency by operators through its Advance Passenger Information System (APIS) should not have to be duplicated elsewhere, and should be closely held, for security and other reasons www.nbaa.org
Rolls 8,000th Engine for G650ER
Rolls-Royce has delivered the 8,000th engine manufactured at its Dahlewitz, Germany facility, the company announced last month. The milestone engine, a BR725, went to Gulfstream to be installed on a G650ER. The Dahlewitz site, near Berlin, started production in mid1995 and today employs approximately 3,000 who assemble the BR710, BR725, and Pearl 15 engines for business jets as well as the Trent XWB for the Airbus A350. It is also Rolls-Royce’s center of excellence for business aviation and houses the development and testing facilities for the new power gearbox for the UltraFan demonstrator program. More than 4,700 BR700 family engines have been built to date, and the fleet has recorded more than 27 million cumulative operating hours www.rolls-royce.com
Trimec Acquires CA-420 Digital Compass Rose System
Trimec Aviation, a Certified Part 145 Repair Station, announced it has added a Capital Avionics CA-420 digital compass rose system to support its growing client base with this stateof-the-art aircraft compass alignment tool. John Holland, Trimec Aviation, General Manager, commented, “It has become increasingly difficult and problematic to locate traditional compass roses at local airports to calibrate an aircraft magnetic compass. This new advanced CA-420 system is so accurate and intuitive; we find it to be a valuable tool for our customers, not to mention its convenience. We also remind our customers that the magnetic compass needs to be recalibrated periodically, as suggested by the manufacturer. In addition, it needs recalibrated when the plane has a major component change, is relocated to a significantly different latitude, or when it has remained idle for one-year or more.” www.trimecaviation.com
To feature here please contact:
Lee@AvBuyer.com or MattC@AvBuyer.com 134 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
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Mesotis July.qxp 16/06/2020 11:29 Page 1
S H O W C A S E
MESOTIS JETS IS PROUD TO PRESENT THESE TWO CESSNA CITATION JETS
1995 Cessna Citation Jet SERIAL NUMBER: 525-0089 • REGISTRATION: D-IZRH • AIRFRAME TT: 6760:25 • LANDINGS: 6577 TAP ELITE • ADSB OUT • LPV CONVERTER • INTERIOR REFURBISHED MAY 2018
1995 Cessna Citation Jet SERIAL NUMBER: 525-0090 • REGISTRATION: LZ-DIN • AIRFRAME TT: 4321:12 • LANDINGS: 3526 TAP ELITE • PRO PARTS • LAST DOC 10 PERFORMED IN DECEMBER 2019 • GARMIN GTN 750 WITH ADSB • LPV CONVERTER • INTERIOR REFURBISHED IN 2017 Mesotis Jets Thomas Thums Fleischmarkt 7/3 1010 Vienna Austria
136 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Mob: +43-67-6590-0082 Tel: +43-1-533-757216 E-mail: tthums@mesotisjets.com www.mesotisjets.com
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Jetsense Aviation July.qxp_Empyrean 17/06/2020 10:20 Page 1
S H O W C A S E
Reduced Price: $3,195,000 2010 Bombardier Learjet 45XR Serial Number: Registration: Airframe TT: Landings:
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Owner Financing and Trades Available Fresh Pre-buy Recent A-D Inspections MSP Gold - Engines and APU Smartparts ATG-5000 WiFi ADS-B Out (2020 Compliant) WAAS/LPV
Maintenance & Inspections Inspection Frequency | Completed Remains | Due Phase A 300Hrs/12Mos 300Hrs/12Mos Phase B 600Hrs/24Mos 600Hrs/24Mos Phase C 1200Hrs/48Mos 1200Hrs/48Mos Phase D 2400Hrs/96Mos 2400Hrs/96Mos Langing Gear 96Mos 96Mos
Engines Left engine Description: TFE731-20BR-1B S/N: P-132178C THSN: 4097 Hours TCSN: 2754 Cycles THS MPI: 1215 Hours THS CZI: 1903 Hours Program MSP Gold MSP Gold
Right engine TFE731-20BR-1B P-132177C 4021 Hours 2706 Cycles 1026 Hours 1979 Hours
APU Description Allied Signal RE100LJ Serial No. P-444 Total Hours Since New 1674 Program MSP Gold
Jet Sense Aviation, LLC Contact: Brett Forrester Contact: Pat Mitchell 1 Golfview Rd, 2nd Floor, Lake Zurich, Illinois 60047 www.AVBUYER.com
Tel: +1 (847) 550 4660 Email: brett@jetsenseaviation.com Email: pat@jetsenseaviation.com www.jetsenseaviation.com
AVBUYER MAGAZINE Vol 24 Issue 7 2020
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FROG Flugservice GmbH May.qxp_Empyrean 16/06/2020 14:41 Page 1
S H O W C A S E
1997 Cessna Citation Jet with fresh engines Serial Number: Registration: Airframe TT: Landings:
525-0188 N525PA 5409 5999
ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44 Engine #1 3105,1 h TSN, 2863 cycles, 3485 h remaining to OVH Engine #2 3119,0 h TSN, 2838 cycles, 3485 h remaining to OVH
The engines are not on any engine program, but have been overhauled by Williams August 2019. Have been running 15 hours since and can be enrolled into the TAP Blue program, TBO then 4000h Avionics & Connectivity Sperry EADI/EHSI left, fully switchable Dual Garmin GTN 750 FMS/Comm/Nav/ILS, LPV capable, PRNAV Dual King KN-63 DME Dual Garmin GTX-330D Mode S Diversity Transponders, WAAS, ADS-B out King RDR-2000VP Color Radar with BFGoodrich WX-950 Storm Scope GNS/XLS FMS with Shadin Air Data King KR-87 ADF King KRA-405B Radio Altimeter Artex C406-2 ELT
Interior & Entertainment Light grey 5 place passenger interior with forward RH side facing seat (overhauled 2019), 4 place center club seating, belted lavatory ( approved as 6th seat). Condition 9/10 Exterior Overall body White with Silver and Blue stripes, condition 7/10
Reduced Price $1,075,000
1996 Cessna Citation Jet Serial Number: Registration: Airframe TT:
525-0144 N525BQ 3317.4
ALWAYS HANGARED, PROFESSIONALLY FLOWN, NO DAMAGE HISTORY, COMPLETE DOCUMENTS. NO OPEN MAINTENANCE ITEMS. AVAILABLE IMMEDIATELY Engines Two Williams FJ-44, no engine program Engine #1 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6) Engine #2 5084,2 h TSN, 4845 cycles, 1369 h remaining to OVH (check 6)
Avionics & Connectivity (RVSM, P-RNAV and WAAS approved) Sperry EADI/EHSI left, switchable to either Garmin 430 Autopilot Sperry SPZ-5000 IFCS w.Flight Director Dual Garmin GNS 430, 8,33 Khz, WAAS, COM/NAV/GPS, switched to Avidyne 500 MFD King KY-196A as 3rd transceiver Avidyne 500 MFD Moving Map King KN-63 DME King KR-87 ADF King KRA-405B Radar Altimeter King KN 158 RMI Dual Garmin GTX 330W, Mode S diversity, ADS-B out Transponders King RDR-2000VP Color Radar switched to Avidyne 500 TCAS 1 switched to Avidyne Artex C406-2 ELT
FROG Flugservice GmbH Dr. Martin Altmann, CEO POB 5253, D-51491 Overath, Germany
138 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Interior & Entertainment Grey leather seating, four executive club seats, side facing belted seat. Belted Toilet counts as 6th seat Exterior White body with decal black, maroon and golden stripes, golden decal door and window frames
Reduced Price $730,000
Tel: +49-2204-74033 Mob: +49-170-6778833 Email: jetsales@froggy.de
www.AVBUYER.com
SMS July.qxp_Heeren Cit Ultra sep 17/06/2020 14:46 Page 1
S H O W C A S E
2014 Gulfstream G650 Serial Number: Registration: Airframe TT: Landings:
6101 N47TR 1245 506
One Fastidious Owner Since New No Damage History Impeccable Maintenance & Care Never Chartered Only Flown by One Full Time Highly Experienced Crew Engines Enrolled on RRCC APU Enrolled on MSP Synthetic Vision Enhanced Navigation ADS-B Out
TCAS 7.1 Aircell Axxess II SATCOM 15 Passenger Interior with Fwd Galley and Fwd Crew Rest Engines Rolls-Royce BR725A1-12 Left Right Serial Number: 25317 25316 Total Time: 1245 hours 1245 hours 506 506 Cycles: Enrolled on RRCC USD$443.87 Per Hour / 400 Hrs Per Annum Min APU 1260 hours APU Serial Number: P-209 Enrolled on MSP
Avionics & Connectivity Gulfstream Planeview II / Honeywell Primus Epic Avionics Synthetic Vision - Primary Flight Display (SV-PFD) Enhanced Navigation ADS-B Out (DO-260A) Three (3) Modular Avionics Units LCD Head Up Display (HUD II) Enhanced Vision System (EVS II) Interior & Entertainment Cabin Layout: Fifteen (15) Passenger, Forward Galley with Forward Crew Rest Forward Cabin: Four (4) Club Chairs Galley: Forward Full Service Galley Exterior Matterhorn White with Two Deep Red Stripes Polished External Cabin Window Surrounds Price: MAKE OFFER
2009 Gulfstream G550 Serial Number: Registration: Airframe TT: Landings:
5249 N767PL 2675.3 662
G550-5249 is an immaculate, one experienced owner/operator from new Location: United States Always hangared at home base No damage history aircraft Forward Galley, Forward Crew Rest, Gulfstream Select Universal 14 Pax Interior Enrolled on RRCC, PlaneParts, GCMP, and HAPP Aircraft has never been on charter
Engines BR710-11 BR710-11 Left Right Total Time: 2675.3 hours 2675.3 hours Cycles: 662 662 Enrolled on RRCC USD$443.87 Per Hour / 400 Hrs Per Annum Min APU Honeywell RE220: (No MSP Program) Avionics & Connectivity (4) Honeywell DU-1310 Flat Panel Display Units (2) Honeywell DC-884 Display Controllers (1) Honeywell DP-884 Display Brightness Panel (1) Honeywell/Kollsman Visual Guidance System (VGS) (3) Honeywell MAU-913 Modular Avionics Units (1) Honeywell GP-500 Flight Guidance Panel (3) Honeywell MC-850 Multifunction Control Display Units
SMS Aircraft Suite 1108, Level 11 St Kilda Road Towers 1 Queens Road, Melbourne Victoria, 3004, Australia www.AVBUYER.com
(3) Honeywell AZ-200 Air Data Modules (1) Honeywell WU-880 Weather Radar Receiver/Transmitter Antenna (2) Honeywell WC-884 Weather Radar Controllers Interior & Entertainment Gulfstream Select Universal 14 passenger Interior Featuring a forward crew rest area and forward galley ,control panel incorporating Securaplane screen, with a four-place club seating group, 4 place conference group, aft cabin 2 single club chairs opposing a four-place divan, fax machine. Forward and aft vacuum flushing lavatories, 6 Individual monitors in all single seat positions, 2 x 20’ bulkhead monitor, 1 x 17’ monitor positioned above credenza and 3 external cameras Exterior Overall Matterhorn white with Vintage red stripes Price: MAKE OFFER
Tel: +613 9863 9550 Cell: +61 417 727 727 E-mail: gsvensen@smsaircraft.com www.smsaircraft.com
AVBUYER MAGAZINE Vol 24 Issue 7 2019
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Testimonial February P&S.qxp_Layout 1 17/06/2020 14:12 Page 1
ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
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Rolls Royce
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Jean Boulle Luxury / Sun King Diamond Coating
P141-144.qxp 17/06/2020 12:13 Page 1
Bombardier Challenger 350
Steve Studecci Price:
Off Market
Year:
2020
S/N:
207XX
Reg:
TBD
TTAF:
00
M A R K E Tel: +1 (310) 984 6777 T E-mail: sales@milchamavia.com P L FRACTIONAL OWNERSHIP PROGRAM A 2 SHARES AVAILABLE C BRAND NEW BOMBARDIER CHALLENGER 350 DELIVERY E MIDDLE 2020 WE SALE ONLY SHARE, NOT THE FULL AIRCRAFT FOR MORE INFORMATION CONTACT US TRADE CONSIDERED
Location: USA & Canada
Embraer Lineage 1000
Steve Studecci Price:
Off Market
Year:
2012
S/N:
19000XXX
Reg:
N-XXX
TTAF:
300
Location: USA & Canada
Cessna Citation Bravo
Boris Peev Price:
$800,000 No VAT
Year:
2002
S/N:
550-1007
Reg:
LZ BPP
TTAF:
3533.8
Location: Bulgaria
Beechcraft Premier 1A
Seth Anderson Price:
Please Email
Year:
-
S/N:
RB-137
Reg:
N428CJ
TTAF:
2377
Tel: +1 (310) 984 6777 E-mail: sales@milchamavia.com FRACTIONAL OWNERSHIP PROGRAM 3 SHARE AVAILABLE EMBRAER LINEAGE 1000 19 PASSENGERS OPERATED BY MAJOR OPERATOR IN CALIFORNIA BRAND NEW CABINE AND PAINT MAJOR INSPECTION MADE FRACTIONAL OWNERSHIP PROGRAM PLANE WILL BE DELIVERED END OF JULY WE SALE ONLY SHARE, NOT THE FULL AIRCRAFT TRADE CONSIDERED
Tel: +359 888 211 134 E-mail: office@aviobravo.com EU Registration. ENG1-PW 530A, 3533.8 H. ENG2-PW 530A, 3533.8 H. RVSM: Factory Standard. No damage history. Complete records and all log books. Special AOC Package: Commercially registered and operated in European AOC. This aircraft is in excellent condition. Aircraft's current location - LBSF. Avionics: Honeywell Primus 1000 Integrated Avionics System 3 â&#x20AC;&#x201C; Tube EFIS. COMMUNICATION: Dual Bendix/King KY196B Comm. VHF NAVIGATION: Dual Bendix/King KN53 Nav Receiver. Interior: Standard Citation Bravo (7+ 2 + 1 Belted Lavatory). Center Club, two Aft Forward-facing Seats, rear Facing Seat across from Galley including Belted Lavatory. Price Reduced
Tel: +1 (303) 817 7301 E-mail: sanderson@barrett-jackson.com Low time well maintained Premier 1A. WAAS/LPV, electronic charts, XM weather. SB 34-4007 FMS 3000 Version 4.0; SB 344008 IFIS Version 6.0; SB 34-4009 DBU-5000; SB 34-4151 ADSB Out. Airframe: Extensive A & B Inspections completed 09/2019 New Throttle Cables 09/2019. Engines: Engines: Williams FJ44-2A, 2300 lbs of thrust each. Engine 1 Serial Number: 105177. Engine 2 Serial Number: 105186. Int: Touchups completed 2019. Ext: Touchups completed 2019
Location: USA & Canada
Air Select
Dassault Falcon 900EX EASy
Price:
Deal Pending
Year:
2007
S/N:
172
Reg:
G SIRO
TTAF:
1210
Location: France
www.AVBUYER.com
Tel: +44 (0)797 103 5090 E-mail: tony@airselect.co.uk This new to the market, member of the Falcon 900 series large-cabin trijet, supplied new by Dassault Aviation to the current owner is the finest, low time example of its type on the market today. Carefully maintained under Falconcare by Dassault Falcon Services, this aircraft offers the greatest opportunity for ownership in the category. Airframe: One Owner from New. VERY LOW TOTAL TIME. Fresh 2C DEC 2019. Fresh Gear Overhaul. New paint 2016 Dassault Wilmington. Honeywell Epic Easy II Cert 4 WAAS/CPDLC & ADS B. Avionics: Triple Honeywell Laserref IRS. Triple Honeywell Easy FMS w Dual GPS. Triple Honeywell T- 866B VHF. Triple Honeywell Selcal AV 800. Honeywell Primus Colour Weather Radar
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M A R K E T P L A C E
Gulfstream G450
The Ritchie Group Price:
Make Offer
Year:
2013
S/N:
4282
Reg:
-
TTAF:
1314.9
Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com WELL-EQUIPPED, UPGRADED & READY FOR IMMEDIATE DELIVERY! New Striping Completed February 2020 at West Star Aviation; 2020 Compliant! ADS-B Out (DO 260B), CPDLC FANS 1/A; Enhanced Navigation, Lightning Sensor System, Airshow 4000 & RAAS; Rolls Royce Corporate Care®; 14 Passenger, Forward Galley with Crew Lav; No Known Damage or Accident History
Location: USA & Canada
www.jet-transactions.com
Mitsubishi Solitaire
Michael Kraemer Price:
Please Call
Year:
1979
S/N:
407SA
Reg:
N750CA
TTAF:
4.410
Location: Germany
Piper Meridian
Gert Coellen Price:
$990,000 Inc. VAT
Year:
2007
S/N:
4697308
Reg:
N308ST
TTAF:
910
Location: Germany
McDonnell Douglas Helicopter 520N Mario Lauricella Price:
USD $950,000
Year:
1995
S/N:
LN067
Reg:
N105WF
TTAF:
940
Tel: +49 (0) 173 252 9420 E-mail: m.kraemer@tpsd.de Low time, great remaining hours. Cruise speed upto 321 KTS. Range upto 1.600 NM with 45 min reserve. Most ideal aircraft for private european buyer. EU customs cleared and VAT paid. Comes with new annual/100/200/600h inspection in 1/2020. EU service stations, pilot training and type rating TRTO available. European potential buyers to contact Michael at +49 173 2529420. US customers contact Bill at +1 401 556 5648, training and ferry available on request. Engines: TPE-331-10-511M. TT 4.410, recommended TBO 5.400. TSHS 810. RH prop due 3/2024. LH prop due 2/2027. G600 syntetic Vision. GTN750, on G600 and KMD850
Tel: +49 (0) 202 560 795 E-mail: gert.coellen@gmail.com Very low time Meridian! Unique! NO EU VAT! 100k invested in avionic upgrades! Synthetic vision technology! Digital GWX 70 radar with ground clutter suppression enablement! Garmin integrated Sat phone + worldwide weather downloads. Super quiet 5 blade prop! Always hangared! Engines: MT 5 Blade Quiet Fan Jet Prop Installed in 2015 at 571h TT of aircraft. Avionics: Garmin G500 with Synthetic Vision and Flight Charts. Dual Garmin GTN 650 with Flight Stream 510. GWX 70 RADAR with GCS enablement! Iridium Sat Phone and Garmin world wide weather! VAT in EU fully paid! Aicraft in free circulation! Ferry flight to USA possible Aircraft located in Germany (EDLW)
Tel: +39 393 918 3639 E-mail: lauricellaconsulting@gmail.com Airframe TSN 940, Engine TSN 430 NDH warranty on the engine 1 year/ 300 hrs, fresh annual inspection, new fan straps.
Location: Italy
Bell 407GXP
HERREOS Price:
Please Call
Year:
2017
S/N:
54727
Reg:
D-HHNH
TTAF:
225
Location: Germany
142 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
Tel: +49 (0) 171 7137167 E-mail: sales@herreos.eu No damage History. Always Hangared. Warranty remaining until June 2021. Airframe: AC TT approx.. 225 hrs. MTOW 5250 lbs 2.381 Kg. Avionics: EFIS Display Garmin G1000H. Audio Control Box Garmin 350H. Inc: Synthetic Vision. 2nd VHF Comm Garmin. Bell Autopilot – 2 Axis HeliSCAS. Int: Corporate’ interior with ‘Corporate’ soundproofing. Seats covered in grey leather with white piping. Carpet: Grey. Floors in cockpit and cabin have plastic floor protectors. Additional Equipment: Bell Autopilot. Low Skid Gear. Baggage Compartment Extender. Auxiliary Fuel Tank Provisions. Corporate Soundproofing. Enlarged Windows in Cabin and Crew Doors. Engine Inlet Barrier Filte. Rotor Brake
www.AVBUYER.com
P141-144.qxp 17/06/2020 12:13 Page 3
Bombardier Learjet 36A
Leonard Price: Year: S/N:
M A R K E Tel: +1 (806) 662 5823 T Hudson Drilling Email: ronfernuik@hotmail.com P L Offer/Trade Learjet 36A, Long range capability, as configured 2,400 A nautical miles. Can be upgraded to 2,600 mile range. C 1977 Recent paint and interior, RVSM. E 36A-030
Reg:
N160GC
TTAF:
15,600
Location: USA
BELL 412EMS
Competitively priced at US $1,375,000, may take trade on a King Air or a helicopter Would consider trade for KingAir 200/300
Leonard Hudson Drilling Price:
Offer
Year:
1981
S/N:
33017
Reg:
N554AL
TTAF:
15265
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Full EMS Medical 4 patient and 4 attendant interior. Recent ‘no expense spared’ airframe refurbishment at Acro Helipro within the last 100 hours. Both engines are fresh Pratt and Whitney overhauled. Immediate delivery, Meticulous records. Current with medical interior and 13 passenger utility interior are included, aircraft is ‘turn-key’ will provide Fresh annual /Export C of A
Location: USA
BELL 212 (Five Available)
Leonard Hudson Drilling Price:
Please Call
Year:
1991-1996
S/N:
Call for details
Reg:
Call for details
TTAF:
Call for details
Tel: +1 (806) 662 5823 Email: ronfernuik@hotmail.com
Five, Late Model, Bell 212s In 'Off Shore’. Available for immediate use. Asking $3.1M to $3.6M USD. Serial numbers: 35034, 35048, 35060, 35088 and 35096
Location: USA
Hughes 369
Archie Mackenzie Price:
£310,000 No VAT
Year:
1974
S/N:
940649S
Reg:
G-HEWZ
TTAF:
7829.7
Location: United Kingdom
Airbus/Eurocopter EC 120B
Very nice, late production and well equipped 500C with good airframe components and no damage history. The helicopte is available for inspection by appointment at Sywell airfield, Northampton. Airframe: Main rotor blades, Main rotor transmission, Main rotor mast and Main rotor driveshaft are new or very low timed. Engines: All modules are modified to C20B standard. The compressor wheels have been coated which lifts the inspection requirement from 6 months to 12 months. Avionics: Comprehensive Avionics with mostly King equipment. KX-165A with 8.33 comm frequency spacing. Good interior trim with two crew seats and rear bench. A front centre seat and cover plate are available.
Heliair B.V. Netherlands Price:
Please Call
Year:
1999
S/N:
1069
Reg:
PH-RBC
TTAF:
3350
Location: Netherlands
www.AVBUYER.com
Tel: +44 (0)149 472 4380, +44 (0)797 166 0962 E-mail: amacke1410@aol.com
Tel: +31 (0) 652 407 808 E-mail: arno@heliair.nl
Nice EC120b with just completed tthe 6Y/72M inspection. Nice interior and a high quality paintjob. Arrius 2F. MO1 690 hours remaining. MO2 2650 hours remaining and calender 2032. Cargo Hook and Mirror. Dual Controls. Kardex available on request. Trade in to AS350B3/355F2 possible. Avionics: Garmin GTN 225. Garmin GTX 327. Garmin GMA Audio Panel. Trig Y92 2nd VHF. RC Allen Horizon. Int: VIP leather interior. Ext: High Quality Paint. Additional equipment: Cargo Hook and Mirror. Tie downs. Engine Covers. Ground Wheels.
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M A R K E T P L A C E
Airbus H125
Tel: +33 (0) 617 675 405 E-mail: sales@herreos.eu
H2I HELICOPTERS Price:
Please Email
Year:
2019
S/N:
from 4569 to 8688
Reg:
F-XXXX
TTAF:
100h to 2000h
Location: France
Robinson R66
Lease your H125 / AS350 B3 here! H2i Helicopters is one of the biggest professional worldwide operational-leaser specialized with single engine helicopters. We are flexible : you can rent/lease a helicopter from H2I for the set duration and number of hours you need : We are able to rent you choppers since few months to several years! Our own fleet consist of 18 AIRBUS HELICOPTERS (so far) : 17 SQUIRREL (ASTAR) + 1 COLIBRI. Our fleet is recent : 11 Airbus Helicopter AS350B3e / H125 : YOM from 2012 to 2019. 5 Eurocopter AS350B3+ : YOM from 2008 to 2011. 1 Eurocopter AS350 B2 YOM 2008. 1 Eurocopter EC120b YOM 2003 The whole fleet is dedicated to lease (we are not an operator)
Tel: +41 (0) 796 099 413 E-mail: christoph.graf@mountainflyers.ch
Mountain Flyers 80 Ltd Price:
€395,000 Excl. VAT
Year:
2014
S/N:
0553
Reg:
HB-ZOK
TTAF:
1900
Location: Switzerland
December 2014 manufactured and registered as first new Robinson R66 in Switzerland. 2014 in operation for sightseeing flights and flight school. No damage history. Always hangered. From beginning in CAMO of swiss operator. New Aspen Avionices EFD1000H Pro (with HSI) Display / changed September 2019. ***We are very motivated to sell the Helicopter due to a change of fleet!*** Airframe: Exterieur Base Color Red. Windshield, Standard. Door Windows, fwd, clear. Door Windows, aft, clear. Engines: Rolls-Royce RR300. Avionics: FD, Aspen Avionices EFD1000H Pro (with HSI). COM2:Garmin GTR 225B. Com1:Garmin GPS/COM/NAV GTN 750. Garmin GMA 350 H Audio Panel. Artificial Horizon, LCD, Kelly Mfg RCA2600-3 with Slipskid
Tel: +49 (0) 712 1695 8882 E-mail: abg@ga-management.de
Nadine Schulz
Bell 407
Price:
Make Offer
Year:
1999
S/N:
53337
Reg:
OEXIP
TTAF:
1300
New Avionic package, fully equipped with Garmin G 500 suite, GTN750H, HeliSAS, full leather interieur. Airframe: Paint 8/10. Always hangared. Engines: Fresh 60-MO-Inspection on gearbox etc. Avionics: Garmin G500H suite, GTN 750H, HeliSAS. Int: 6seat leather interieur, rated 8/10. Ext: Blue, white with minimum chips and dents, rated 8/10. This is a pilots aircraft, equipped with everything that is needed!
Location: Germany
Tel: +49 (0) 291 952 7570 E-mail: info@klassen-aviation.com
KLASSEN AVIATION
Agusta A109A II
Price:
€270,000 Excl. VAT
Year:
1987
S/N:
7387
Reg:
D-HLCC
TTAF:
2444
Number of engines: 2 Make/Model: Allison 2502C20B Allison 2502C20B Serial No.: CAE-835915 CAE-835916 Total Time: 2444 h 2444 h
Location: Germany
Alberth Air Parts
+1 832 934 0055
Spare Parts
Par Avion Ltd FALCONS • HAWKERS • LEARS
•BUY •SELL •TRADE CESSNA LEARJET HAWKER WESTWIND FALCON GULFSTREAM
www.alberthaviation.com
www.paravionltd.com SALES • ACQUISITIONS • CONSULTING
Fax: +1 832 934 0011 144 Vol 24 Issue 7 2020 AVBUYER MAGAZINE
www.AVBUYER.com
P145.qxp 18/06/2020 11:06 Page 1
The BEST Aircraft For Sale Search anywhere, everywhere on pc, smartphone and tablet
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www. Advertiser’s Index 1st Source Bank...................................................61
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Par Avion ................................................................47
Avjet Global .......................................................... 43
General Aviation Services ..................................53
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Avpro .......................................................................23
Global Jet Capital.................................................65
Pratt & Whitney ..................................................113
Bose ........................................................................93
Global Jet Monaco........................................ 5 - 13
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Cessna Flyer .......................................................115
Jetcraft Corporation ..........................28 - 29, 148
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PROUD MEMBERS OF
British Business & General Aviation Assoc. • British Helicopter Assoc.• European Business Aviation Assoc. • International Aircraft Dealers Assoc. • National Aircraft Finance Assoc. • National Business Aviation Assoc.
AvBuyer (USPS 014-911), April 2020, Vol 24 Issue No 4 is published monthly by AvBuyer Ltd, 1210 West 11th Street, Wichita, KS 67203-3517 and has a targeted circulation to decision makers within business and corporate aviation throughout the world. It is also available on Annual Subscription @ UK £40 and USA $65. POSTMASTER: Send address changes to: AvBuyer Magazine 1210 West 11th Street, Wichita, KS 67203-3517. Postage is paid at Wichita, KS and additional mailing offices © Copyright of AvBuyer Ltd. Every effort is made to ensure the accuracy of material published in AvBuyer Magazine. However, the publishers cannot accept responsibility for claims made by manufacturers, advertisers or contributors. The views expressed are not necessarily those of the Editor or the publishers. Although all reasonable care is taken of all material, photographs, CD & DVDs submitted, the publishers cannot accept any responsibility for damage or loss. All rights reserved. No part of AvBuyer Magazine - Advertising, Design or Editorial - may be reproduced, stored in a retrieval system, or transmitted in any other form, or by any other means, electronic, mechanical, photographic, recording or otherwise, without prior written permission of the publishers.
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Aircraft For Sale • AIRCRAFT • HELICOPTERS
AIRCRAFT
PAGE
AIRCRAFT
AIRBUS A318 . . . . . . . . . 6 A318 Elite . . . . . 5 A380-800 . . . . . . 38
BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 28, 78 BBJ2 . . . . . . . . . 5 BBJ3 . . . . . . . . . 78 737-200 . . . . . . . 95, 737-300 . . . . . . . 95, 787-8. . . . . . . . . . 148
BOMBARDIER Global 5000 . . . . 28, 47, 148 Global 6000 . . . . 5, 12, 38, 79, 148 Global 6500. . . . 5, 148 Global Express . 49 Global Express XRS. 5, 13, 24, 148
Challenger 300 . . . . . . . . . . . 5, 23, 28, 53, 55, . . . . . . . . . . . . . . . 69 350 . . . . . . . . . . . 141 601 . . . . . . . . . . . 34 601 1A . . . . . . . . 148 601 3A-ER . . . . . 19 604 . . . . . . . . . . . 23, 28, 148 605 . . . . . . . . . . . 18, 24, 28, 43, 53, . . . . . . . . . . . . . . . 69, 148 850 . . . . . . . . . . . 28
Learjet 31A . . . . . . . . . . . 85 36A . . . . . . . . . . . 143 40XR . . . . . . . . . . 55, 85 45 . . . . . . . . . . . . 23 45XR . . . . . . . . . . 19, 31, 55, 137 55 . . . . . . . . . . . . 85 60 . . . . . . . . . . . . 29 60SE . . . . . . . . . . 147 60XR . . . . . . . . . . 148 70. . . . . . . . . . . . . 71 75. . . . . . . . . . . . . 18, 29, 55
CESSNA Citation II . . . . . . . . . . . . . 85 III . . . . . . . . . . . . . 85 V. . . . . . . . . . . . . . 19, 41 X . . . . . . . . . . . . . 23, 41, 55, 57
PAGE
X +. . . . . . . . . . . . 148 XLS . . . . . . . . . . . . 47 XLS+ . . . . . . . . . . . 19, 55, 125 CJ1+ . . . . . . . . . . . 55 CJ2. . . . . . . . . . . . . 29, 69, 148 CJ2+ . . . . . . . . . . . 47 CJ3. . . . . . . . . . . . . 19, 47, 55, 71, 85 CJ4. . . . . . . . . . . . 38, 41 Bravo . . . . . . . . . 141 Excel . . . . . . . . . . 35, 53, 71 Jet . . . . . . . . . . . . 35, 41, 136, 138 Mustang. . . . . . . . 19 Sovereign. . . . . . 23, 41 182T . . . . . . . . . . 41 206H . . . . . . . . . . 41, 85 340A RAN VI . . . 41 T201N . . . . . . . . . 85 Ultra . . . . . . . . . . . 85 500 . . . . . . . . . . . . 85
CIRRUS SR20-G3 GTS . . 41 SF50 . . . . . . . . . . 89 SF50G2 . . . . . . . 89
DASSAULT FALCON 7X . . . . . . . . . . . . 3, 5, 9, 20, 79, 147 20C-5AR. . . . . . . 85 20F-5BR . . . . . . . 55 50 . . . . . . . . . . . . 85 50-4. . . . . . . . . . . 95 50EX . . . . . . . . . . 85 900C . . . . . . . . . . 147 900DX. . . . . . . . . 8, 53 900DX EASy . . . 5 900EX . . . . . . . . . 95, 900EX EASy . . . 23, 29, 141 900LX . . . . . . . . . 148 2000 . . . . . . . . . . 23 2000EX EASy . . 34 2000LX . . . . . . . . 2, 5, 7, 29, 75, 148 2000LXS. . . . . . . 2
ECLIPSE 500 . . . . . . . . . . . 125 550 . . . . . . . . . . . 19
AIRCRAFT
PAGE
Legacy 600 . . . . 29, 38 Lineage 1000 . . 38, 141 Lineage 1000E . 147 Phenom 100 . . . 19, 29, 35 Phenom 100E . . 20 Phenom 300 . . . 55
GULFSTREAM IVSP . . . . . . . . . . 23, 71, 125 V. . . . . . . . . . . . . . 25, 53, 95, 125 150 . . . . . . . . . . . 43 200 . . . . . . . . . . . 49 280 . . . . . . . . . . . 34, 69, 147 400 . . . . . . . . . . . 18 450 . . . . . . . . . . . 5, 43,125, 142,148 500 . . . . . . . . . . . 43, 69 550 . . . . . . . . . . . 5, 23, 25, 34, 38, 43, . . . . . . . . . . . . . . . 69, 79, 125, . . . . . . . . . . . . . . . 139, 147 650 . . . . . . . . . . . 10, 25, 79, 139 650ER. . . . . . . . . 11, 23, 148
AIRCRAFT
PAGE
HONDA Jet HA 420 . . . . . 55
IAI Astra 1125SP . . 147
MITSUBISHI Solitaire . . . . . . . 142
NEXTANT 400XT . . . . . . . . . 148
PIPER Cheyenne IIIA . . 85 PA46-500TP. . . . 89 Meridian . . . . . . . 142
HAWKER BEECHCRAFT King Air 350i . . . . . . . . . . . 24, 31, 57 A100 . . . . . . . . . . 85 B100 . . . . . . . . . . 31 B200 . . . . . . . . . . 125 B200XPR . . . . . . 85 C90B. . . . . . . . . . 85 C90GTi . . . . . . . . 125 C90GTx. . . . . . . . 55
HELICOPTERS AIRBUS/ EUROCOPTER EC 120B . . . . . . . 125, 143, H125 . . . . . . . . . . 144,
AGUSTAWESTLAND AW109E Power . 39 AW109S Grand. 39
Beechcraft B60 Duke . . . . . . 85 Premier I . . . . . . 148 Premier IA . . . . . 141
Hawker 400A . . . . . . . . . . 31 400XP . . . . . . . . . 31, 35, 85 800XP . . . . . . . . . 18, 20, 38, 69, 71, . . . . . . . . . . . . . . . 125 800XPi . . . . . . . . 35 850XP. . . . . . . . . 71 900XP . . . . . . . . . 23, 35, 55, 69 4000 . . . . . . . . . . 57 4000 RC-24 . . . . 31
BELL 206BIII . . . . . . . 144 212 . . . . . . . . . . . 143 407 . . . . . . . . . . . 144 407 GXP . . . . . . . 142 412EP . . . . . . . . . 125 412EMS . . . . . . . 143
HUGHES 369 . . . . . . . . . . . 143
MD 520N . . . . . . . . . . 142
EMBRAER Legacy 450 . . . . 148 Legacy 500 . . . . 148
HOWARD
ROBINSON
500 . . . . . . . . . . . 147
R66 . . . . . . . . . . . 144
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Copy date for the August Issue - Wednesday 15th July 2020
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2015 Falcon 7X SN267
Embraer Lineage 1000E SN190-00611
8X Replacement makes this Aircraft Available Now, Will Deliver with United States C of A, Will Deliver with New Paint and Interior, Heads Up Display / Enhanced Vision / Synthetic Vision / Etc / Etc / Etcâ&#x20AC;¦
Only 1075 Hours and 450 Cycles Since New; Preferred 19 Passenger Interior, World Wide Ready, Transferrable Warranty and Maintenance Programs
2014 Gulfstream G280 SN2039
2015 Gulfstream G550 SN5508
Single owner since new, Enrolled in all Programs (Honeywell MSP Gold & Gulfstream Planeparts), 1,628 Hours, 502 Landings, 4 Year Heavy Check completed at Gulfstream Appleton, FANS/CPDLC, ADS-B, WAAS/LPV, Well maintained, 9 place interior
500 Hours TT, Warranties thru Sept 2022, RRCC, 4-zone seating with Dual Aft Couches
2005 Lear 60SE SN282
2002 Falcon 900C SN194
Artex 406 ELT w/ Nav Interface, WX 1000E Stormscope, Lightning Detection System, Ice Detection System, Extended baggage space, WAAS/LPV, Collins ADS-B Out
Will deliver with Fresh 3C, new paint, Cockpit upgrades & WIFI
Howard 500 SN5560
Astra 1125SP SN048
Arguably The 1st ever Business Aircraft, Chance to Own the Original Classic
Exceptional Pedigree, Airshow 410, Extension Fuel Tanks, External Lav Service, Increased Gross Weight Mod, AirCellST3100 Iridium Radio Telephone
www.cbjets.com ALSO AVAILABLE: Falcon 900EXy SN238 (Lease Only)
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2019 EMBRAER LEGACY 450 S/N 55010059 • New Delivery Aircraft • G ogo L5 AVANCE High Speed Internet • CPDLC and ADS-B Out
A passionate team of aviation experts, our strategic approach and action-oriented thinking have made us the global leader for aircraft sales and ownership services. With our worldwide network and inventory, industry connections and regional presence, we are the difference between getting an aircraft… and getting your aircraft.
2008 DASSAULT FALCON 2000LX S/N 136 • 2,746 Hours; 1,816 Cycles • Recent 2C Inspection Completed • AVANCE L5; SwiftBroadband Internet
2019 BOMBARDIER GLOBAL 6500 S/N 9861
1997 GULFSTREAM GV S/N 533
• 415 Hours; 172 Landings • Fully Programmed •T ransferable Manufacturer Warranties
• 7,150 Hours; 2,654 Landings • DU-885 Plane Deck • FANS 1/A (AFN / CPDLC / ADB-C)
1999 BOMBARDIER CHALLENGER 604 S/N 5384 • 6,045 Hours; 3,222 Landings •E ngines & APU Enrolled on Program • GoGo Biz AVANCE L3 Internet
2016 BOMBARDIER CHALLENGER 650 S/N 6063 • 713.8 Hours; 455 Landings • FANS 1/A+ (CPDLC & ADS-B) • Engines & APU on Programs
ALSO AVAI L ABLE 2014 BOEING 787-8 1983 CHALLENGER 601-1A 2011 CHALLENGER 605 2013 GLOBAL 5000 2018 GLOBAL 6000 2005 GLOBAL XRS 2013 FALCON 900LX 2014 CITATION X+ 2003 CITATION CJ2 2007 LEARJET 60XR 2012 NEXTANT 400XT 2018 LEGACY 500 2012 GULFSTREAM G450 2016 GULFSTREAM G650ER 2003 BEECHCRAFT PREMIER I
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