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FC Avpro October 2021.qxp_FC December 06 22/09/2021 09:47 Page 1

Volume 25 Issue 10 2021

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

THIS MONTH Jets Comparison: Dassault Falcon 2000 vs Gulfstream G200 proudly presents

2003 Challenger 604 Serial Number 5564, Registration N101KF See page 11 for further details

How Best to Dispose of an Aging Business Aircraft How to Understand Current Market Dynamics www.AVBUYER.com


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Editor Welcome.qxp_JMesingerNov06 21/09/2021 11:47 Page 1

Guest Editor’s VIEWPOINT Ed Bolen NBAA

Sustainability in Focus: In the Air, On the Ground, at NBAA-BACE usiness Aviation has always been characterized by a spirit of innovation and resilience, and we've certainly seen both qualities on display throughout the past 18 months as companies and flight operations of all sizes have responded in all manner of innovative and effective ways to combat the crisis, and assist those in need. Even as we confronted our challenges, we have also continued moving ahead toward a safe, secure and sustainable future. That includes efforts to increase availability and adoption of Sustainable Aviation Fuels (SAF), derived from a diverse array of renewable sources. For example, earlier this year, the NBAA-championed Sustainable Skies Act was introduced in Congress. The bill would create a new, 10-year performance-based tax credit for production of SAF, capped at a $2 per gallon of SAF demonstrating a 100% emissions reduction. As we've seen with other tax credit programs for various alternative fuels, such as biodiesel, this new legislation would markedly incentivize production of SAF, significantly expanding its availability, while also helping to reduce costs of the fuel for flight operations. We're encouraged to see this measure included in upcoming budget legislation on Capitol Hill.

B

Advanced Air Mobility & Sustainability

Sustainability is also one of the factors in the growing interest and investment by industry stakeholders in the emerging advanced air mobility (AAM) industry. AAM aircraft now in development are powered largely by allelectric or hybrid-electric propulsion systems that offer the promise of drastically reduced CO2 and noise emissions over conventional rotorcraft. AAM can operate and complete trips in close proximity to where they begin, particularly in dense urban environments, many of which feature heavily congested roadways. They also hold tremendous potential for Business Aviation, offering new options for short- to medium-

range trips that, in addition to providing greater convenience, are environmentally sensible and emissions-free.

NBAA-BACE 2021

These and other ways in which our industry is moving toward an exciting future will be front-and-center throughout NBAA's upcoming Business Aviation Convention & Exhibition (NBAA-BACE), taking place this month (12th-14th) in Las Vegas, Nevada. Held in conjunction with the show, the second annual Business Aviation Sustainability Summit will spotlight the benefits of SAF and other methods by which Business Aviation flight operations may reduce their carbon footprint. NBAA-BACE will also feature a larger AAM Zone showcasing hybrid- and electric-powered vertical takeoff and landing (eVTOL) vehicles from several familiar names in the on-demand air mobility sector. The NBAA-BACE New Product Showcase will highlight the many brand-new products introduced over the past 18 months, while the new NBAA Maintenance Pavilion, and Owner/Single-Pilot Operator Pavilion will bring together key parts of the Business Aviation community, with sessions tailored to their respective fields, and the opportunity to network with peers. Of course, NBAA-BACE will also feature an impressive roster of featured speakers and education sessions, and dozens of the latest business aircraft on display at Henderson Executive Airport (HND). For those unable to travel to Las Vegas, a program of valuable educational content and networking opportunities will also be available for streaming by at-home attendees. I expect the 2021 edition of NBAA-BACE to be nothing short of a transformational event for our industry. I hope to see you there, as our industry once again gathers to demonstrate its resilience against adversity, and its continued path toward innovation that will carry us toward a truly exciting future. ❙

Ed Bolen has been the President and CEO of the National Business Aviation Association (NBAA) in Washington, DC, since September 2004. Prior to joining NBAA, he was president and CEO of the General Aviation Manufacturers Association (GAMA) for eight years. More information from www.nbaa.org

4  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

www.AVBUYER.com


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Contents.qxp 22/09/2021 14:17 Page 1

4

2021

12

Contents

Vol.25 Issue 10

38

Guest Editor

Ed Bolen, NBAA

Market Indicators

Trends and Observations from Leading Business Aviation Analysts

Market Insights

How to Understand Current Market Dynamics

44

Interview With Frank Janik, Leading Edge Aviation Solutions

48

Can eVTOL Really Take-Off in BizAv?

52

Aircraft Development

56

NBAA-BACE 2021 Preview

60 70 76 80 84 90 98

eVTOL and the Future of Business Flying (Part Two)

Buying & Selling Aircraft

How Best to Dispose of an Aging Business Aircraft Comparing BizJets: The Apples-to-Apples Approach (Part 2)

Finance

Is an Aircraft Lease Right for You?

Ownership

Buying a Jet: How to Assess Passenger Comfort

Aircraft Price Guide Mid-Size Jets Values

Jet Comparison

Dassault Falcon 2000 vs Gulfstream G200

Flight Department Management

How to Link an Aircraft’s Pedigree to its Logbooks

102 Tips for Incorporating a Jet into the Flight Department (Part 1) Maintenance 106 Valuing the Rolls-Royce CorporateCare Enhanced Program Refurbishment 110 What are the Latest Cabin Refurbishment Trends in BizAv? 116 How to Spend on an Older Jet Cabin Refurbishment Avionics 122 Understanding BizAv Avionics: Navigation Community News

130 OEM News and Industry Appointments 134 Showcases

142 Marketplace

146 Advertisers’ Index

146 Aircraft for Sale Index Next Month •

Is your Jet Becoming too Expensive?

Cabin Electronics: Five Must-Have BizJet Retrofits

10  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

EDITORIAL Commissioning Editor Matthew Harris +44 (0) 20 8939 7722 editorial@avbuyer.com Editorial Contributor (USA Office) Dave Higdon dave@avbuyer.com ADVERTISING Steve Champness - Publisher Americas +1 770 769 5872 steve@avbuyer.com Ricky Gioconda Account Manager +1 919 434 1364 ricky@avbuyer.com Lise Margin Account Manager +1 703 818 1024 lise@avbuyer.com David Olcott Account Manager +1 802 233 6458 davo@avbuyer.com Maria Brabec - Account Manager EMEA & APAC Aircraft & Services Sales +420 604 224 828 maria@avbuyer.com STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0) 20 8939 7726 helen@avbuyer.com mark@avbuyer.com CIRCULATION Sue Brennan +44 (0) 20 8255 4000 Freephone from USA: +1 855 425 7638 sue@avbuyer.com AVBUYER.COM 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


GLOBAL EXPRESS

S N 9 13 3

GULFSTREAM G550

SN 5328

S N 2 07 2

GULFSTREAM G450

S N 416 5

GULFSTREAM G280

GULFSTREAM G200

SN 93

GULFSTREAM G150 S N

2 87

GULFSTREAM IVSP S N

146 4

FALCON 8X S N

CHALLENGER 604 S N

556 4

CHALLENGER 601-3A S N

AIRBUS EC155 B1

S N 67 46

406

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MarketIndicators.qxp_Layout 1 22/09/2021 10:30 Page 1

MARKET INDICATORS

AVBUYER.com

Business Aviation Market Overview

In an upbeat piece of news for the industry, Business Aviation is expected to defy the soft business travel forecast this Fall, notes Brian Foley…

W

hile summer’s business aircraft leisure travel volume exceeded the most optimistic of estimates, all eyes have been turning to the fall business season, which is when corporate ‘road warriors’ take to the skies. The 2020 season had been a flop, with businesspeople trading-in their seat upgrades for premium subscriptions to Zoom. Within the industry there is some trepidation that curtailed business travel this fall could send BizAv back into a tailspin; after all, it is called Business Aviation for a reason. Let’s dissect these fears, and see if there’s a genuine cause for concern…

Background

Winding back the clock, just about everyone in our business felt the effects surrounding the uncertainty of the pandemic in early spring 2020. Lockdowns were prevalent; the future was unclear; and business aircraft sales and activity ground to an abrupt halt. Soon, though, a best-case scenario began to unfold. Seasoned private jet travelers as well as newcomers began to appear, only this time in significant quantities. For the rest of 2020 pre-owned aircraft sales activity skyrocketed, while overall flight activity made an appreciable comeback. Whereas airline flights had recovered to a paltry 40% of pre-pandemic levels at one point, Business Aviation exceeded 80% of its former level, and was still climbing. The

12  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

only laggards in 2020 were the new jet manufacturers, who – through a combination of supplier issues, factory lockdowns and overly-cautious buyers – delivered 20% fewer jets than the previous year. The recovery continued into 2021 with continued strength in pre-owned sales, as well as flight activity which is now approaching record levels not seen in well over a decade. The year has also seen a measurable uptick in new aircraft sales, with manufacturers reporting book-to-bill ratios of 2:1, meaning that for every airplane delivered to a customer there have been two new orders. Over time this will have the benefit of increasing order backlogs, reducing the risk of OEMs having unsold inventory, and provide a long-awaited increase in pricing power and margins.

Airline Fall Business Travel Outlook

As the airlines were clobbered last fall, Business Aviation continued to make gains with pre-owned aircraft sales transactions soaring to new records, and the charter, fractional and services segments clawing back a good deal of lost ground. Today the airlines report that corporate travel has returned to just 40% of pre-pandemic levels during the summer, and that business traveler surveys suggest upwards of 60% of them would be postponing upcoming business trips. page 16

www.AVBUYER.com


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MARKET INDICATORS

AVBUYER.com

On August 31, the US reported the lowest number of airline passengers going through airport turnstiles since May, suggesting a noticeable lull will be seen in the near future for the commercial air carriers.

BizAv Defiance

Business Aviation is on a different trajectory. Pre-owned sales, while down from all-time highs, are still very active. Any slowdown in transactions would be more of a function of lack of inventory than a decrease in demand. New jet OEMs continue to have their highest sales activity in many years. And there are no signs of slowing for business aviation travel. Charter and fractional providers are seeing a surge in business, driven in part by upwards of 20% of their business coming from first-time customers. (Some fractional providers have temporarily ceased sales of jet cards to provide adequate service to

their existing customers, and charter operators see activity exceeding 2019 levels.) Moreover, Fixed Base Operators and Maintenance Repair and Overhaul service providers report brisk business with the increase in flight activity. Thus, while there may indeed be less business travel this fall, the effect on our industry should be a relative nonevent. Perhaps counterintuitively it’s expected that many segments will actually see a strengthening in their businesses through year-end. While time savings, security and the deteriorating airline experience have always been primary industry sales drivers over the years, we can now add health concerns, which have bumped the addressable market into a new paradigm. MI www.brifo.com

page 20

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

16  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

www.AVBUYER.com


AeroBuyNow October.qxp_Layout 1 20/09/2021 14:52 Page 1

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2001 EUROCOPTER EC120B 1206 - VERY LOW TIME

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2013 PC12NG S/N 1349

2007 LEGACY 600 S/N 995

4342 TT, ESP Gold, 8 Pax Interior, Large Cargo Door, Cabin Fresh Air and Filtration System

4’960 TT, 144 Mths/LDG OVH/ ADS-B/Cabin Touch-up in 2019, EASA, EEC, RRCC Engines Program, Wi-Fi, 13 Passengers

2007 AGUSTA A109E POWER OFF-MARKET

1980 BELL 206 S/N 8592

2’103 Total Hours, 4’541 Total Cycles, EASA, Engines on Aerodynamics Powerplan, 5+1 Passengers

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JUST SOLD

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2010 A109S GRAND S/N 22162

2001 CITATION EXCEL S/N 5605154

1’805 TT, New Interior & Paint 2018, Single Pilot IFR Approved, Strobe Lights, Aft Cabin Mini Bar, 5+1 Passengers

7’130 Hours, EASA, Engines on JSSI, WAAS/LPV, ADS-B Out, APU

JUST SOLD

JUST SOLD

Just Sold

Just Sold

File Picture

2014 LEGACY 650 S/N 1194

2014 LEGACY 650 OFF-MARKET

One US Owner, Gorgeous Turn-key Aircraft, 2’900 hours, RRCC, ADS-B/CPDLC/FANS 1/A, WAAS/LPV, GoGo Wifi, 13 pax.

2’600 Hours, EASA, Engines and APU on Programs, 13 Passengers

JUST SOLD

JUST SOLD

Just Sold

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2011 PHENOM 300 S/N 50500062

GULFSTREAM IV S/N 1068

3’260 Hours, EASA, Engines on JSSI, Airframe on Embraer Executive Care, FDR/CVR

Corporate Care, ASC-190, Gear Overhaul Done, New Paint, Carpet & Flooring, WiFi, ADS-B

Just Sold

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MarketIndicators.qxp_Layout 1 22/09/2021 13:33 Page 3

MARKET INDICATORS

AVBUYER.com

Global Flight Activity - August According to WingX Advance, worldwide BizAv activity finished August 10% ahead of August 2019 – a more modest growth than July, with some slowdown showing later in the month. Year-to-Date, activity was up 41% on 2020, to almost exactly where it was two years ago. European business jet travel has rapidly closed the gap on 2019, thanks to a very robust summer of activity. At the end of August, the deficit compared to 2019 was less than 5%. Russia, Turkey, and Greece have been busier business jet markets postpandemic than pre-pandemic throughout this year. In Western Europe, Spain has seen 7% more activity than in 2019. August was a record-breaking month for almost all European markets, including laggards such as France and the UK, which saw business jet departures up 20% and 10%, respectively, compared to August 2019. The Balkan region smashed previous records for business jet activity. Movements in Serbia were up by 50%, and flights to-and-from Croatia and Montenegro soared 70% above previous high points for August.

However, the full month’s activity ended 13% up compared to August 2019. By the end of August, Canada and Mexico had yet to recover to 2019 flight activity levels, and some parts of the Caribbean – notably the Caymans, Aruba, Barbados, British Virgin Islands, and St Vincent – were well below their pre-pandemic activity levels in August. Meanwhile, business jet activity in the US was up 16% compared to August 2019, the third consecutive record-breaking month. And other Caribbean countries were seeing substantial gains on 2019 business jet traffic. Arrivals into the Dominican Republic and Turks and Caicos were at twice the normal levels for August. Relief missions to Haiti following the earthquake there showed, with flight activity up over 300%. There was growth within the US compared with August 2019 in almost all US States, with strongest growth coming in the South-East, principally Florida, and remote areas of the Western regions, notably Colorado and Nevada. California and New York, where activity was depressed for so long during the pandemic, both saw a big bounce in flight activity.

North America

Rest of the World

In North America, regional recovery trends dimmed a little during August. Following the 30% bounce in July, the first half of August saw 20% gains.

20  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Outside the US and Europe, August was a very strong month, relative to August 2020 and August 2019, with business jet flights gaining 38% and

28%, respectively, on those previous periods. • • •

Brazil was the busiest market, with over 50% gains over August 2019. Australia was the next busiest, but saw a downward trend, with flights off by 14%, versus August 2019. China also appeared to show the effect of renewed travel restrictions, and flights were down by 13%, versus August 2020. Saudi Arabia, Japan, Indonesia, and Malaysia were other markets which looked more subdued that last year during August.

The overall trend in August for the Rest of the World was righted thanks to massive growth in business jet traffic in Argentina, Ecuador, Nigeria, India, and South Africa. “The European market had a successive very strong month of business jet activity [in August, with] flights up by a quarter, which must be linked to airline schedules still being down by a third,” Richard Koe, Managing Director, WingX Advance summarized. “The US market is still setting records for business jet demand, but the second half of August slowed perceptively. In Asia, ongoing virus concerns and travel restrictions are setting back some of the gains made in business jet travel last year.” MI www.wingx-advance.com page 22

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MarketIndicators.qxp_Layout 1 22/09/2021 10:44 Page 4

MARKET INDICATORS

In-Service Aircraft Values & Maintenance Condition

Strong aircraft sales by first-time buyers continue to decrease aircraft availability. One must surely wonder how many inventory decreases are possible. Asset Insight’s August 31, 2021 market analysis covering 134 models and 1,272 units revealed an additional 3.8% decline. With young, low-time aircraft conspicuous by their absence, today’s market selection for Asset Insight’s tracked fleet is now down 33.5% Year-to-Date (YTD), equating to 640 fewer units, while Year-over-Year (YoY) inventory is 44.2% lower.

AVBUYER.com

Table A

Fleet Maintenance Condition $ Million $1.55 5.40 $1.46

5.30 5.238

5.20

N

D

J

F

M

A

Maintenance Exposure

M

J

J

A

$1.45 $1.40

Quality Rating Trendline

Table B G500 3.5% Citation CJ4 525C 5.7% G650ER 7.0% CL-350 7.1% F2000LXS 7.7% Citation X+ 9.1% Citation CJ3+ 9.3% F7X 10.2% Global 6000 10.2% G280 10.4% King Air 350i 10.8% F900LX 12.5% Learjet 75 13.7% Phenom 300 15.0% Boeing BBJ 15.8% F2000EX 17.5% Legacy 650 17.8% Pilatus PC-12 17.9% Citation Encore + 18.9% G150 19.9% F900EX EASy 20.8% Piper Meridian 21.2% Caravan 208-675 21.3% TBM 850 21.7% Citation Sovereign 680 22.9% Citation CJ3 23.9% Citation XLS 24.1% F900EX 26.5% Hawker 900XP 27.0% Citation V Ultra 27.7% G450 28.6% G550 28.6% Nextant 400XTi 28.7% CL-605 28.8% Citation Encore 30.5% Learjet 45XR 31.5% KingAir 350 - Post-2000 31.5% Citation CJ1+ 31.8% Learjet 40 32.2% KingAir B200 - Post-2000 32.5% Citation Mustang 510 32.7% Embraer Legacy 600 32.9% Global XRS 33.0% Caravan 208 33.3% Citation CJ2+ 525A 34.9% KingAir 350 - Pre-2001 36.1% F 50EX 36.9% Caravan Grand 208B 37.4% F900C 37.8% Hawker 850XP 38.7% Hawker 4000 39.6%

Young, low-time aircraft, whether publicly listed for sale or not, are achieving transaction values close, if not equal, to the seller’s Ask Price, while older models are taking longer to sell. The tracked fleet’s average Ask Price decreased 12.4% to a 12month low figure during August, primarily driven by Large and Medium Jets. Ask Prices have now tumbled 12.5% YTD, and 13.3% YoY.

Inventory Fleet Maintenance Condition

As might be expected, buyer preference for the limited higher quality assets negatively impacted the remaining fleet’s Quality Rating, although Maintenance Exposure did improve. Specifically: • Quality Rating decreased 0.5% to post a second consecutive 12month low (worst) figure at 5.238. The Rating dropped the fleet into ‘Very Good’ territory from the previous month’s ‘Excellent’ range on Asset Insight’s scale of -2.5 to 10. The decrease statistically points to more near-term maintenance events for the listed fleet. • There was some positive news with respect to Maintenance Exposure (defined as an aircraft’s accumulated/embedded maintenance expense), as it improved (decreased) 1.9% to $1.464m in August. The figure was just below (better than) the 12-month average, signaling upcoming maintenance event completion expense for inventory units will be somewhat lower, although that cost will also be 3.3% higher compared to 2020.

Maintenance Exposure to Ask Price (ETP) Ratio

After decreasing for two consecutive months, Asset Insight’s tracked fleet’s ETP Ratio rose to 72.9% from July’s 71.9%, but still managed to maintain a figure that was 0.1% better (lower) than the 12-month average. 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’ (DoM) analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30%. During Q2 2021, assets whose ETP Ratio was 40% or higher were listed for sale nearly 89% longer (on average) than aircraft whose Ratio was below 40% (281 versus 530 Days on Market). August’s market analysis also revealed that 49% of Asset Insight’s tracked models, and over 59% of its tracked fleet, posted an ETP Ratio greater than 40%.

Market Summary

22  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

O

Quality Rating

Aircraft Values

Corporate operators continue to represent a smaller percentage of buyers than in years past. While first-time purchasers have stepped in to create today’s buoyant sales figures, they also negatively impact

S

$1.50

GV 40.8% Piaggio P-180 II 41.7% Phenom 100 42.6% Citation CJ2 43.4% G200 43.5% Citation X (MSG3) 43.9% KingAir B-200 - Pre-200144.8% Global Express 49.2% Hawker 750 49.9% Citation Excel 560XL 51.9% Hawker 400XP 53.0% KingAir 300 56.6% Citation CJ1 59.7% F2000 60.9% Hawker Beechjet 400A 61.8% TBM 700A 65.7% Premier 1A 68.5% CL-604 70.0% Hawker 800XP 71.0% Premier 1 73.9% Citation VII 74.6% Citation V 560 75.8% GIV-SP 82.8% F20-5 86.3% GIV-SP (MSG3) 88.8% Learjet 60 96.8% Hawker 1000A 100.7% KingAir C90 104.5% Citation VI 112.7% Learjet 31A 118.3% Hawker Beechjet 400 121.8% Piaggio P-180 124.8% F50 125.5% Hawker 800A 128.9% Citation ISP 136.4% Citation II 138.6% G100 139.7% CL-601-3R 149.0% GIV 155.4% Learjet 55 175.4% CL-601-3A 181.8% Learjet 31 214.4% Citation Bravo 215.1% Citation III 219.3% Learjet 36A 224.2% Learjet 35A 270.3% Hawker 125-700A 279.5% CL-601-1A 324.5% GIII 466.5%

Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of August 31 2021 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com) page 26

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MARKET INDICATORS

Large Jets

Mid-Size Jets

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$ Millions

$3.30

$3.50

$3.20

$3.30

$1.24

$2.70

Jul-21

Aug-21

Jun-21

May-21

Apr-21

Mar-21

Jan-21

$2.59 Feb-21

$2.50

Dec-20

$2.90

$2.90

Nov-20

Aug-21

Jul-21

Jun-21

Apr-21

May-21

Mar-21

Jan-21

Feb-21

Dec-20

Nov-20

Oct-20

$9.99

$3.00

$1.26

$3.10

Oct-20

$3.10

$1.28

$1.24

Sep-20

$3.24

Sep-20

$12.5 $12.0 $11.5 $11.0 $10.5 $10.0 $9.5

$ Millions

$1.22

Asset Quality Rating

Asset Quality Rating

Scale -2.500 to 10.000

Scale -2.500 to 10.000

5.800

5.400

availability as they have no aircraft to remarket. Approximately 6.5% of the active fleet was listed for sale at the end of August, compared to 10.5% on the same day one year ago. Statistically, current availability epitomizes a sellers’ market. The problem is that too many sellers are offering assets whose technology and age make them unappealing to prospective buyers, while some models have reached their financial obsolescence. Consider an aircraft whose market value has decreased to, say, $500k, and whose ETP Ratio is 150%. That means the aircraft has an additional $750k of accrued/embedded maintenance that a buyer must find some way to justify. Even if the aircraft were available for $250k, the new owner would be acquiring an asset whose liabilities equate to three times the asset’s value. Large Jets: Availability is hovering in the mid-5% range for the 43 models Asset Insight tracks. YTD inventory has decreased 33.4% (144 fewer units), with the YoY decrease equating to 42.4%. As proof that buyers preferred assets of higher caliber, the Quality Rating posted a second consecutive low figure, worsening another 1.3% to 5.483. This effectively dropped the fleet’s Rating into ‘Excellent’ territory from the previous month’s ‘Outstanding’ range. Maintenance Exposure improved (decreased) by 0.9%, edging the group below July’s 12-month high (worst) figure. Ask Price was this group’s tallest hurdle, with the figure tumbling 44.0% in August, resulting in a 14.7% YTD decrease, and 14.4% YoY. The Ask Price decrease negatively impacted the ETP Ratio, raising it above the 12-month average to 63%, following two consecutive

26  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Sep-20

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

5.100

Nov-20

5.400

Oct-20

5.200

Sep-20

5.500

Dec-20

5.600

5.280

5.300

Nov-20

5.483

Oct-20

5.700

monthly improvements (decreases). Availability is, and will continue to be, a significant issue for this group. Accordingly, whether you are a buyer or a seller, we continue to recommend you start your search as soon as possible if you wish to close before the end of this year. Mid-Size Jets: Asset Insight’s 45-model tracked fleet posted another 7.7% inventory decrease in August (-40 units), and is now down 38% YTD (198 units) and nearly 50% YoY. Buyers appeared to prefer lower quality assets in August, raising the Quality Rating for the remaining inventory 1.4% to 5.280. That propelled the group’s rating into ‘Excellent’ territory, even though the figure was only marginally better than the 12-month low Rating. Maintenance Exposure improved by 2%, as well as Asset Insight analytics (www.assetinsight.com) 1.5% YoY, with the figure standing near the group’s 12-month low/best. As a result of these favorable changes, the ETP Ratio improved (decreased) to 65.3%; a 12-month low (best) figure. The bad news came in the form of a 12.1% Ask Price decrease that established a 12-month low figure – a YTD decrease equal to 16.7%, and a YoY decrease of 21.3%. These somewhat conflicting statistics are one reason we strongly recommend forming a knowledgeable team to help you sell or buy one of these assets. Light Jets: Just when we thought Light Jet inventory statistics were about to show some marked improvement, the figures for August proved us wrong. The Quality Rating for Asset Insight’s 29 tracked models decreased 1.2%, to a score worse than the 12-month average (but within the ‘Very Good’ range).

www.AVBUYER.com


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AVBUYER.com

Light Jets

Turboprops

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$ Millions

$ Millions

$1.75

$1.90 $1.05

$1.60

$1.65

$0.95

Jun-21

Apr-21

May-21

Feb-21

Mar-21

Jan-21

Dec-20

Oct-20

Nov-20

Sep-20

Jul-21

$1.55

$0.85

Aug-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Oct-20

Nov-20

Sep-20

$1.57

$0.50

$1.64

$1.60

$1.50 $1.40

$1.70

Aug-21

$0.998

$1.70

$0.55

$0.56

Jul-21

$1.80

$0.45

Asset Quality Rating

Asset Quality Rating

Scale -2.500 to(www.assetinsight.com) 10.000 Asset Insight analytics

Scale -2.500 to 10.000

5.300

5.138

5.200

5.200

5.078

5.100

5.100

Asset Insight analytics (www.assetinsight.com) Asset Insight analytics (www.assetinsight.com)

Maintenance Exposure increased (worsened) 3.5% from July’s 12month best (lowest) figure. Asset Insight analytics (www.assetinsight.com) Surprisingly, Ask Price increased 4.7% following last month’s 12month low figure, but that still left YTD pricing down by 10.8%, a YoY drop equating to 13.7%, and an average Ask Price that is still lower than that of the tracked Turboprop fleet. Following two consecutive monthly improvements, the ETP Ratio jumped to 115.3% from July’s 110%, providing additional proof that inventory is primarily comprised of aging assets. Still, sales created another decrease in availability, with 6.5% of the fleet listed for sale as August closed, compared to 10.4% one year earlier. Inventory is now down 202 units for the year (36.5%) and 46.4% YoY. There are good values available within this group, but finding them will require detailed analytics. Turboprops: For the third time this year, inventory for the tracked 17-model fleet increased, although the figure amounted to only 0.5% (two units). For the year, Turboprop inventory is down 23.6% (-96 units) and 36.3% YoY, while 5.5% of the active fleet is listed for

Aug-21

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

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

Very Good 5.000 to 5.249

Good 4.750 to 4.999

Below Average Average 4.500 Less to than 4.749 4.500

sale, compared to 7.4% in August 2020. Sales of higher quality asset lowered the Quality Rating by 0.7%, but maintained a ‘Very Good’ ranking with a figure of 5.078. Maintenance Exposure improved (decreased) a nominal 0.4%, reflecting an improvement over July’s 12-month high (worst) figure, and the changes in fleet mix worsened the group’s ETP Ratio slightly. However, at 41.9%, the Ratio is certainly quite respectable, and the group continues to offer value-based transaction opportunities for both buyers and sellers. MI www.assetinsight.com page 30

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

www.AVBUYER.com

Oct-20

Sep-20

Aug-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Jul-21

5.000

5.000

UNDERSTAND THE BIZAV MARKET with AvBUYER.com

AVBUYER MAGAZINE  Vol 25 Issue 10 2021 

27


Freestream 1 October.qxp 22/09/2021 14:40 Page 1

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MarketIndicators.qxp_Layout 1 22/09/2021 11:02 Page 7

MARKET INDICATORS

GAMA Q2 2021 New Airplane Shipment Analysis The Covid-19 crisis put a damper on business aircraft sales last year, but based on the latest report issued by the General Aviation Manufacturers Association (GAMA), things appear to be picking up. Mike Potts assesses the details.

G

AMA’s Q2 2021 new airplane shipment report, released in September, shows all categories of aircraft, including business jets, turboprops and pistons, to be significantly up compared to a year ago. Total aircraft deliveries for H1 2021 numbered 1,050 units, up 16.8% Year-over-Year (YoY). Billings reached US$8.6bn, a gain of 9.4% from $7.9bn in H1 2020. • H1 2021 business jet deliveries stood at 264 units, up 8.2% from 244 in the same period last year. • Turboprop gains led the industry by a wide margin, up 45.4% in H1 2021 (221 units, up from 152 in H1 2020). • Pistons also performed strongly, totaling 565 units, 12.3% ahead of the 503 piston-powered aircraft delivered a year ago. Noting that the industry has not yet fully returned to prepandemic levels, GAMA President and CEO Pete Bunce said his organization is working to address supply-chain issues, strengthen the workforce, and enhance environmental stability in support of the ongoing recovery.

The Business Jet Market

The market for business jets appears to be gaining strength for the first time in a while. The 8.2% pickup we’ve seen so far this 30  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

year represents the first time since before the pandemic that the jet segment has showed upward movement of more than a percentage point or two in any one quarter. The jets have lagged while the other segments were starting to build strength. Now the jet segment finally appears to be moving upward too. Looking to the specifics, we see that five of the 10 jet makers had better results in H1 2021 than a year ago, and six of the 10 enjoyed a better Q2 than in Q2 2021. Some of the bigger players in the jet market, however, including Gulfstream, Pilatus and Cirrus did not equal their prior year first halves. Recovery in the jet market is clearly not yet fully developed. Leading the jet market by a wide margin was Textron’s Cessna unit with 72 deliveries in H1 2021, up from 46 in H1 2020, an improvement of more than 56.52%. In just Q2, Cessna reported 44 jet deliveries, up from 23 in Q2 2020 – an even more remarkable gain of 91.30%. Second place in the jet market went to Bombardier, with 55 deliveries in H1 2021, up from 46 the year before (a gain of better than 17.39%). For just Q2, Bombardier reported 29 units, up from 20 in Q2 2020, or a gain of 45%. Gulfstream, which had been in second place, saw its YTD total drop slightly, at 49 units, down from 55 in H1 2020. For Q2 alone, Gulfstream was down from 32 units in 2020, to 21 this year. A few months ago, I thought that Gulfstream could www.AVBUYER.com


MarketIndicators.qxp_Layout 1 22/09/2021 11:03 Page 8

AVBUYER.com

conceivably accelerate into first place, so its falter in Q2 2021 was unexpected. Embraer captured fourth place in the jet race with 33 units for the year, up from 22 in H1 2020, or a gain of 50%. Embraer also performed strongly in Q2 2021, reporting delivery of 20 units, up from 13 in Q2 2020 (up 53.85%). Cirrus came fifth, reporting 23 delivered in H1 2021 – down from the 31 units delivered in H1 2020, although Cirrus’s Q2 this year was ahead of Q2 2020 by 16 units to 13. Sixth place in jet deliveries went to Pilatus, with 15 units shipped in H1 2021 down slightly from the 16 delivered in H1 2020. For Q2 alone, Pilatus was 33.33% ahead of last year (12 versus nine shipments). Dassault and Honda were tied for seventh place, each reporting six deliveries. For Dassault, that was down from 16 a year ago, while Honda was also down from nine. For just Q2, Honda reported a single unit, down from two a year ago, while Dassault only reports half-yearly. The airliner-based jet segment was also more active than usual. Airbus captured ninth place with four deliveries, including two in Q2. Airbus’ YTD total represented a gain over the prior year, when Airbus reported three deliveries. Meanwhile, the company’s Q2 totals were level. Boeing finished H1 2021 in tenth place with a single delivery, up from the year before. It’s reasonable to assume that the jet market recovery will www.AVBUYER.com

continue to expand in the months ahead to include those companies that have not yet benefitted so far. If that happens the market should be on the way to a strong recovery by the end of this year.

The Turboprop Market

Recovery is already beginning to flourish in the turboprop segment. Five of the eight companies manufacturing business turboprops reported gains for both YTD and in Q2 alone, two more were even for both periods, and only one was down. Within the Q2 report, the total business turboprops delivered in 2021 stood at 127 units, up from 89 in 2020, or a gain of approximately 42.70%. You will note that the 127-unit total differs from the 221 units in GAMA’s report. The difference owes to GAMA’s number including single-seat agricultural aircraft (82 from Air Tractor and 12 from Thrush). It is our position that these agricultural airplanes are not traditional business aircraft, thus, we remove them from the turboprop total to present a more accurate picture of what is happening in the market for aircraft actually used in Business Aviation. In the business turboprop market, the leader in deliveries at the mid-point in the year was Pilatus, with 33 units shipped during H1 2021, up from 29 a year ago. Pilatus experienced a page 32 very strong Q2, with 26 deliveries, up from 18 last year.

AVBUYER MAGAZINE  Vol 25 Issue 10 2021 

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MARKET INDICATORS

AVBUYER.com

“In the business turboprop market, the leader in deliveries at the mid-point in the year was Pilatus, with 33 units shipped during H1 2021, up from 29 a year ago. Pilatus experienced a very strong Q2, with 26 deliveries, up from 18 last year.” Daher was not far behind in second place, with 29 units (including 21 of its TBM models and eight Kodiaks) during H1 2021. Daher’s deliveries were up 93.33% from H1 2020, when it reported 13 TBMs and two Kodiaks. Third place in turboprops was hotly contested, with Textron’s Cessna unit narrowly edging out its corporate brother Textron Beechcraft with 24 units to 23 during H1 2021. Both Cessna and Beechcraft had a strong Q2 in 2021, with Cessna delivering 17 aircraft in the period while Beechcraft delivered 16. Both were up from a year ago, when Beechcraft delivered 20 aircraft in H1 2020 and Cessna shipped 11 units. Fourth place in turboprop deliveries is a very unfamiliar position for Beechcraft, which, since the 1960s, has led the turboprop market in most years and only rarely had to settle for the number two position. Piper finished fifth in the turboprop race, with 17 units during H1 2021, and 11 in Q2 alone. That was a gain of more than 54.54% over last year when Piper reported 11 deliveries in H1 2020. The remainder of the turboprop market consisted of Epic Aircraft in sixth place with one delivery, down from three last year, and Pacific Aerospace and Piaggio Aerospace tied for seventh, each with no deliveries in either period.

The turboprop market is clearly on a roll right now, significantly outperforming both the jet and piston segments. It will be interesting to see how long this pattern of growth continues. I would predict that by the end of the year the turboprop growth numbers will be more in line with what we are seeing in the other segments.

Pistons and Summary…

The piston-powered market continues to hum along, with deliveries running 12.3% ahead of the previous year. The 565 units delivered include 509 single engine, and 56 multi-engine aircraft. Of the 16 single-engine piston manufacturers currently reporting to GAMA, nine had gains over last year for H1; five lagged their 2020 results, and two were even. As in the jet segment, improvements in the market have not reached all of the players, but a majority are definitely on an upswing. If this trend across all markets continues for the remaining two quarters of the year, perhaps we can proclaim full recovery as we move into 2022. At this point, I am cautiously optimistic that things are going to continue to improve. MI www.gama.aero

MIKE POTTS is respected industry-wide as an aviation journalist. He has worked in the communications departments of Beech Aircraft, Sino Swearingen and M7 Aerospace, and has been analyzing GAMA’s delivery reports for AvBuyer since 2003 where he has built an excellent track record for accurate shipment predictions. Contact him via msmkpotts@aol.com

32  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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MARKET INDICATORS

Using Technology to Support BizAv Growth Post-Covid-19

AVBUYER.com

As 2021 moves steadily towards a close, Rusty Coleman believes the entire BizAv industry can share a collective exhale of relief. The industry is flying strong: Where commercial aviation struggled, private jets and charters continue to shuttle passengers and cargo around the globe… hough commercial aviation (scheduled airline) activity is rebounding, particularly in North America, it is considered unreliable and costly. Business and leisure travelers are turning to business jets and charter flights as an alternative. Global Jet Capital, an aviation financial solutions firm, projects, “$162.1bn in total transaction volume of new and pre-owned transactions between 2021 and 2025, with a compound annual growth rate of 7.4% during that time.” Four years of steady growth is encouraging news. The challenge now is to manage current operations and prepare for the future. Maintenance, Repair, and Overhaul (MRO) providers seeking cost cutting measures can benefit from employing inventory technology solutions to keep airplanes flying today and into the future. Maintaining a sufficient inventory is essential for both scheduled maintenance and unscheduled repairs. Most operations have some sort of inventory management system, or ability to reach out to suppliers and ask, “Where’s my part?” But once the part arrives, it’s vital to know where it is, whether there are shelf life issues, if the part is new or used, and what its condition is. A computer program that lists a facility that has a part is not the same as a program that tells you where it is by showing you. In addition to a smart inventory, and asset tracking solution, are advanced business tools that show data, trends, and predictive analytics to identify possible problem areas and make appropriate changes, potentially before they become an issue. Operations of all sizes can benefit from forecasting.

T

36  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

As more and more flights are scheduled, the ability to move inventory and equipment, and to track its arrival and departure, protects the investment. Personnel can be better assigned and customers can be given more accurate schedules and costs.

Get Smart

Asset tags, smart labels, RFID, BLE, WIFI, GSM, GPS, and other Internet of Things (IoT) devices are mostly simple, costeffective, and powerful tools to keep track of your inventory, your tools, and your most valuable resource — time. The data they collect is beyond inventory control. With the data you can analyze when parts and tools are used the most, where, and by who. You can track costs and spot trends throughout a week, month, or any defined period of time. Full visibility into your inventory allows you to bring in parts or move parts as soon as you know there’s a need. If you adopt a higher inventory volume, you’ll need to know where those parts are stored. With IoT capability, smart tags and labels can be tracked anywhere and anytime. RFID tags, smart labels, and asset tags can be used to collect and record time, date, location data, and more. This allows you to direct resources where they’re needed. The same technology used for inventory management can also be applied to specialized avionics tools.

With many facilities sharing expensive equipment, knowing where these resources are can help direct where they need to be moved, who used them, as well as essential calibration and maintenance schedules. Facilities can be equipped with overhead readers and portals at doors to track the movement of parts without the need to stop and manually enter information. Handheld readers can scan inventory and save countless manual personnel hours logging inventory and its movement. Data can be delivered to tablets for on-the-go solutions.

Beyond 2025

The commercial aviation industry will continue to climb out of the current dramatic slide. New planes and parts, as well as a robust trade in used equipment will continue to support the BizAv industry. Technology investments made today will continue to show improvements for years to come. And the years to come are predicted to be strong for manufacturers, suppliers, repair facilities, airports, and travelers. MI www.surgere.com Rusty Coleman is Surgere’s VP of Digital Transformation. He supports supply chain solutions for clients in the automobile and aerospace industries. Surgere is an industry pioneer leveraging IoT technology to revolutionize the supply chain. Founded in 2004, Surgere is headquartered in Green, Ohio, with a second office in Aguascalientes, Mexico. T

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Hatt & Associates September.qxp_Layout 1 24/08/2021 11:09 Page 1

2011 Hawker 4000 S/N: RC-62. Reg: N21FX • 3,031.9 hours since new • Engines enrolled on ESP Gold / APU enrolled on MSP Gold

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MARKET INSIGHTS

How to Understand Current Market Dynamics Is it possible for buyers to get an aircraft that fits their mission without overpaying in today’s market? General Aviation Services’ Don Spieth shows how he helps clients recognize the right opportunity… he past year has been quite a ride for the aviation industry. Mid-March through June of 2020 necessitated attendance at every possible online industry meeting, followed, in mid-August, by the creation of a quarterly market report with AMSTAT and Bloomberg. By the time it began dawning that the challenges induced by Covid-19 were creating a seller’s market, we had reached mid-September 2020. The initial demand shock with the onset of Covid-19 produced a similar reflex to that of the great recession in 2009; values of business jets and turboprops fell to just below -20% when you measure the group averages across the Large Jet, Super Mid-Size, MidSize, Light Jet, and Turboprop markets. In Q3 2020, the downward trend began to stabilize, and the twelve-year-old buyers’ market finally turned.

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New Market Reality

At first, buyers didn’t want to admit that their leverage was lost, and were slow to react to the new market dynamics. Some insisted on making offers closer to last year’s discounted market, only to lose their place in the line as sellers’ attention turned to more attractive offers. The reluctance to see the new market reality cost several buyers hundreds of thousands of dollars, since they would now have to pay even more for another aircraft with similar specifications. Our advice to clients was to submit the right offer with an immediate sense of urgency to avoid chasing the market up. General Aviation Services works with several corporate clients who require data-driven evidence of where markets are, and how they evolved to the point they are at, and we’ll explore some of

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CHART A: BUSINESS AVIATION UTILIZATION GROWTH (2016 BASELINE)

these within the following analysis. Using high-level analytic tools and historic analysis has become commonplace in most businesses. When we support Flight Departments, we provide data that furnishes them with information to explain the current market conditions – and, at present, how the demand side of Business Aviation has accelerated at such a fast pace during the pandemic.

How to Use Big Data

The key to using big data is to build perspectives that allow the recipient to focus on the actual information, and how it changes over time. The ultimate goal of analytical information should be to give everyone – from the operational level, to C-level executives – the same understanding. Utilization of aircraft is a key indicator of future preowned and new aircraft sales. Charter and Fractional Ownership are also entryways towards whole aircraft ownership. Understanding the relationships between Charter, Fractional, and Flight Department usage helps us understand Business Jet Demand, and why the Seller’s Market will continue in the foreseeable future. Chart A (above) shows the recent growth trend (by percentage) in domestic (US) travel. The baseline begins in 2016. Data through August 1, 2021 shows that if 2021 travel continues on its current trajectory, Charter activity will reach a record level of 700K hours

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(+43% compared to 2019); Fractional activity will reach 103K hours (+15% compared to 2019); and Flight Departments activity (Part 91) will reach 1.83m hours (+3% compared to 2019). Note: The projections in Chart A were compared to 2019 to negate the distorting effect of 2020.

Are You Overpaying for Your Jet?

The biggest challenge clients are facing at present is assessing aircraft value, and whether they’re overpaying for the aircraft they would like to buy. Most buyers in the market today must realize that the deals of nine to eighteen months ago are gone, across the board. Over the past several months, pre-owned jet and turboprop transactions have been happening at a record pace. They’ve also been happening off-market in greater numbers (i.e., aircraft are selling before they reach the open market). Chart B and Chart C (overleaf) compare ‘Preferred’ business jet/turboprop to ‘Non-Preferred’ business jet/turboprop transactions. ‘Preferred’ refers to the models that are selling better on the market currently. The Preferred business jet/turboprop population consists of 45 makes/models that have an average age of 17 years. They represent just 15% of the total business jet/turboprop population, yet comprise just over 50% of all transactions, currently.

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CHART B: PREFERRED BUSINESS JET/TURBOPROP TRANSACTIONS

In contrast, the Non-Preferred business jet/turboprop population consists of 246 makes/models that are an average 21.7 years old. These aircraft represented 6,058 transactions between January 1, 2018 and July 1, 2021 (or an average 143 aircraft transactions per month). The challenge that record sales has brought about for the aircraft inventory is amplified by the accelerated rate in off-market sales among the Preferred inventory. As highlighted in Chart B, transaction records from H1 2021 show that there has been a 24% increase in Off-Market Preferred business jet/turboprop aircraft sales. (In contrast, there has been no change in the percentage of Non-Preferred aircraft off-market sales.) Buyers must also take into consideration that several makes and models were facing market-related headwinds that were suppressing their overall value. Because of this, buyers should enter the market with a good idea of the requirements for their next aircraft’s mission, as well as an agreed budget to avoid over-paying for an aircraft within this heated transactional environment, and also to ensure their broker can engage sellers without wasting time.

Fitting Depreciation Value into the Equation

For buyers, having identified the required model(s) to fit the mission need and budget, it’s important to understand the value of the aircraft in terms of its depreciation value to ensure you don’t overpay – especially in the case of one of today’s Preferred models. In the case of sellers’ an understanding of the same is necessary to ensure an aircraft is priced to sell. Chart D (overleaf) examines the Gulfstream G550, which remains one of the top-selling aircraft on the market today, and it is one of the Preferred business jet models on the market. Note: All of the data needed for this assessment can be downloaded using AMSTAT Premier+, which contains an aircraft valuation tool with sophisticated analytics. The Gulfstream G550 represented in Chart D is a 2012 model that has an average total time of 350 hours per year. The blue area shows the number of new deliveries, while the gray bars show the number of retail resales, and the red line provides the number of G550s listed for sale on the pre-owned market. The green dotted line is the natural depreciation of the Gulfstream G550, while the solid green line

CHART C: NON-PREFERRED BUSINESS JET/TURBOPROP TRANSACTIONS

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AVBUYER.com CHART D: GULFSTREAM G550 MARKET DYNAMICS ILLUSTRATED

represents the market value in US Dollars. From 2012 the value of the G550 has been impacted by: • Age depreciation • Market recovery for Large Jets (2013-2014) • Crude oil and energy market disruption (20152017) • Chronic Lifecycle Decay (Resale retail sales surpassing new deliveries 2015-2017) • Market recovery for Large Jets (2018-2019) • Pre-Owned listings increase (2020) • Q2 2020 Covid-19 demand disruption • Q4 2020 transactions, and continued demand through Q2 2021. This furthers the importance of using historical data. The depreciation of a high-value asset, in the case a G550, is usually taken at a constant rate over an extended period. At any given time, the impact of macroeconomic drivers could impact the short-term value of the aircraft in negative or positive ways. Once the short-term impact dissipates, the market value tends to gravitate back towards the historical value of the depreciation curve. Even though the Gulfstream G550 represented in Chart

DON SPIETH is Vice President of Sales and Analytics for General Aviation Services. He has a solid background in specialized quantitative analysis that he honed in the financial industry with Van Buren Advisors, before applying it the business jet market for the benefit of buyers and sellers of pre-owned aircraft.

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D has seen a tremendous recovery in a short period of time, the natural depreciation of the aircraft shows that there is still some locked value left in this aircraft make/model. Although at the end of Q2 2021 there had been 37 G550 transactions, that number had risen to 42 at the time of writing, and transaction records had yet to be completed at the end of Q3.

In Summary…

In the near-term, we will continue to observe and compare key data, like Days on the Market, Total Time, and Age of the aircraft being sold from the remaining inventory. We’ll also monitor maintenance and other factors like paint and interior. The bottom line remains, however: Increasingly buyers have had to become flexible in order to be considered as a serious buyer for the aircraft they seek in today’s seller’s market. Understanding the data with a diligent, informed broker will help ensure the right measure of flexibility is shown to secure the right aircraft for the buyer. More information from www.genav.com T

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Market Insights: Frank Janik, Leading Edge Aviation Solutions What is the pre-owned

business jet marketplace doing as we move into Fall 2021? AvBuyer’s

Matt Harris caught up with Leading Edge Aviation Solution’s

Frank Janik to get his insights…

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eading Edge Aviation Solutions (LEAS), today led by Joe Carfagna, Jr., has been at the forefront of pre-owned business jet sales in its current incarnation since 1988, though the company proudly highlights that its roots “have been in Business Aviation since there has been Business Aviation”. The story began in 1966, when company founder Joe Carfagna, Sr. took a position with Bendix Corporation’s newly formed Business Aviation division to sell avionics to the fledgling market. Soon after, he was appointed by Bill Lear to sell Learjets to the Northeastern region of the United States, and then joined Executive Air Fleet (EAF), a pioneer in corporate aircraft management and charter, to manage its aircraft sales wing – and it was here that he honed many of the basic principles of aircraft transactions practised by LEAS today.

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After several successful years with EAF, Carfagna, Sr. left in 1988 to establish Wings Aviation, which was the predecessor to Leading Edge Aviation Solutions. The transition to LEAS sixteen years later was ultimately brought about to add technical and consulting services to the company’s offerings, broadening the services available to clients in a growing, and maturing market. A year later, Frank Janik joined the company, adding financial and analytical acumen to the team. Janik’s own aviation career had begun as a Naval Aviator flying A-6E Intruders for the US Marine Corps. Subsequently, he moved into commercial banking, which eventually presented the opportunity to finance business jets with PNC Bank, prior to his joining LEAS in 2005. Today, LEAS has surpassed the $10bn milestone having completed almost 1,000 aircraft transactions. Janik, is a Partner at the company, and Senior Executive Vice President of Transactions & Consulting. “We typically focus more on Mid-Size to Ultra-LongRange business jets,” he explains as he sits down with AvBuyer to discuss the current marketplace, “but we will also buy and sell Light Jets, and even Turboprops and Helicopters, for our clients.” AvBuyer: Frank, tell us about the pre-owned business aircraft market in 2021 so far. Is there anything of particular interest that’s caught your attention in the market this year? FJ: After the busiest Q4 in recent memory during 2020, the year 2021 began more slowly, but soon picked up from where Q4 2020 had left off. And the market has continued building steam throughout the summer.

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As we near the end of Q3 2021, a seller’s market continues, due to the extremely strong demand. This is a great time to be a seller, but it’s a challenging time to be a buyer. AvBuyer: After the white-hot 12 months of preowned sales you’ve just described, we were hearing recently there could be some early evidence that activity is trending towards more normal levels. Have you seen any sign of this happening? If so, is it restricted to certain parts of the market, or does it apply across the board? FJ: As of now, we continue to see extremely strong demand from buyers. The biggest challenge has been the lack of available supply, which makes finding good aircraft for our buyers extremely difficult. We do think the lack of supply in the market could lead to fewer transactions in the near- to mid-term, which could be mistaken for a slowdown. The current lack of good pre-owned inventory can be seen in all aircraft markets, from Light Jets to ultra-Long-Range Jets. AvBuyer: So, what are your expectations for the market over the remainder of 2021, and moving into 2022? FJ: As mentioned, the market is great if you're a seller and have a replacement aircraft already lined-up and secure (including a new delivery position); however, the market is difficult and getting more so each day if you’re a buyer. The market is basically sold out of relatively new, good pedigree aircraft of all preferred makes/models,

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“Pricing is also extremely difficult right now, because yesterday’s deal is already considered an ‘old comparison’, and we’re all using our crystal balls to determine what today’s market values really are.” and we haven’t even reached Q4, which tends to be the busiest time of the year for transactions. The market could stagnate somewhat if we continue to see fewer sellers in the market to meet the buyers’ demand. As I said, we might see it level off, and transactions slow down during the rest of 2021, into 2022. Pricing is also extremely difficult right now, because yesterday’s deal is already considered an ‘old comparison’, and we’re all using our crystal balls to determine what today’s market values really are. Frankly, we’re in unchartered territory which we’ve never navigated before.

opportunities in the Super Mid-Size to Ultra-LongRange Jet markets. There are plenty of people seeking to upgrade into newer and larger business jets currently and we’re standing ready to assist sellers and buyers. We’re in challenging times but Leading Edge is up for the challenge. AvBuyer: Finally, what one piece of advice would you offer buyers and sellers looking to get the best out of today’s pre-owned business aircraft market?

AvBuyer: Thinking about specific pre-owned market segments, which would you say are worth watching for developments in the coming months, and why?

FJ: Hire a professional business aircraft broker or consultant to assist you with your aircraft sale or purchase. In today’s fast-changing market, having the latest intelligence and current market knowledge can save you hundreds-of-thousands of dollars, and also avoid frustration and disappointment.

FJ: We believe there will continue to be exciting

MI https://leas.com T

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

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MARKET INSIGHTS REBECCA APPLEGARTH has been brought up around aviation for as long as she can remember. As a current PPL she is developing her passion for writing and flying as an Aviation Journalist on the AvBuyer team.

Can eVTOL Really Take-Off in BizAv? With hundreds of eVTOL concepts at various stages of development around the world, should the Business Aviation community sit up and take better notice? Rebecca Applegarth asks analysts Richard Aboulafia, Brian Foley and Rolland Vincent… he concept of electric Vertical Take-off and Landing (eVTOL) aircraft has gained traction in recent years. At a time that there’s a growing desire from Business Aviation’s leading movers and shakers to develop and promote sustainability, there are plenty of powerful aviation companies investing money into the research and development of eVTOL aircraft. The most promising solutions promise to provide efficient, short-range transportation, which would ideally place them to ‘disrupt’ the turbine and piston helicopter markets when the first successful eVTOL projects eventually arrive on the market and mature. This is a perspective Rolland Vincent, Creator/ Director of JETNET iQ, holds, believing that there would be plenty of benefits to be derived from eVTOLs as opposed to traditional rotorcraft, “such as lower emissions, lower noise levels, and enhanced safety”. But how will this new technology impact the wider Business Aviation sector? Teal Group’s Richard Aboulafia draws a distinction between the helicopter market and the fixed-wing Business Aviation sector. “One is intra-city and the other intercity,” he

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explains, adding that Business Aviation has the ability to transport between places, whereas eVTOL is only able to operate within the same city. Brian Foley, President of Brian Foley Associates agrees, envisaging that eVTOL aircraft could be utilized to provide the “last mile delivery” of a business aircraft passenger to and from their departure and destination points. “Should it ever gain traction, eVTOL would likely supplement Business Aviation, not cannibalize it,” he suggests.

What are the Main Obstacles to Certification?

While there can be little doubting either the potential benefits of eVTOL aircraft, or the niche they would carve out within the industry, what’s currently standing in the way of certification? With 250+ companies wanting to develop new eVTOLs, Richard Aboulafia predicts “absolute carnage ahead”, given that the eVTOL market is actually likely to be quite small – at least initially. Staying with the certification issues, Foley argues that “Silicon Valley doesn’t seem to appreciate the cost, time and complexity of the civil aviation

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certification process”, which he sees as an obstacle to eVTOL development. “While some [in Silicon Valley] may point to the recent PR stunts of space travel, there are actually far fewer regulations and standards for flying into space than there are for flying conventional aircraft.” Vincent, however, sees certification as less of a barrier than operational issues. “While lots of urban areas appear to be open to this type of technology, congested city centers like New York City aren’t necessarily welcoming today.” Given the high-visibility locations where these vehicles will be operated, he says, when there is the tragic but inevitable incident or accident that makes headline news, eVTOL development will be met with further obstacles. Foley agrees, adding that these would come in the form of increased oversight and scrutiny.

What are the Doubts About eVTOL Aircraft?

Given the environment eVTOL aircraft are ideal to operate in – urban areas that may be quite heavily populated – even if they are quieter than today’s rotorcraft, Vincent believes they will still face

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questions over noise. And then there’s the issue of added congestion to what is already heavily utilized urban airspace, and how they would safely integrate. “As with any new ideas, there are detractors with concerns about ground noise acceptability,” says Foley. “There will also be questions regarding city vertiports, all-weather capability, and infrastructure, just to name a few.” And then there’s the question of how quickly the batteries on these electric vehicles run out, and how long it would take for them to recharge, Vincent suggests. Nevertheless, with much focus on the aerial vehicle and getting the designs just right, “I am increasingly encouraged by the number of people who are looking at this technology from a pragmatic operational perspective,” he adds.

What’s the Mid- to Long-Term Future of eVTOL?

The emergence of eVTOL aircraft onto the market could arguably be “the most disruptive development that will transform the intra-city and short-haul markets for people and small packages or cargo in

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the next 10 years”, Vincent asserts. And observers may not have to wait too long to see if that is the case, with Foley suggesting the eVTOL industry could possibly “see something as soon as 2024”. If that were to occur, “it could be expected to be on a very limited basis, and will likely be more of an evolution than the short-term revolution that many are anticipating,” he qualifies. Nevertheless, Vincent is curious as to where in the business model the OEMs intend to make their profit margins. “In today’s world, margins are often generated by parts, and to a lesser extent aftermarket service sale. With the eVTOL aircraft of our future, where is the ROI for the manufacturer and supply base?” It’s a tantalizing question, preceding an equally enticing concluding statement from Vincent. “There will be some impressive OEM shakeouts in this sector by the time we see these vehicles in the air,” he predicts. For our money, it’s definitely worth the Business Aviation community sitting up and taking notice of developments in the coming years… T

RICHARD ABOULAFIA is the Vice President of Analysis at Teal Group. More information from www.tealgroup.com.

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“eVTOL aircraft could be utilized to provide the ‘last mile delivery’ of a business aircraft passenger...”

BRIAN FOLEY is President of Brian Foley Associates, and Editor of Market Intelligence for AvBuyer. More information from www.brifo.com

ROLLAND VINCENT is Creator/Director of JETNET iQ. More information from www.jetnet.com

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Jet HQ inventory FP October.qxp_Layout 1 20/09/2021 15:02 Page 1

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eVTOL and the Future of Business Flying (Part Two) In this three-part series, Fabrizio Poli takes a good look at the electrical Vertical Take-Off & Landing (eVTOL) market, similar flying machines, and how they fit into the future of business flying. reviously, we considered some of the similarities when it comes to eVTOL development with the Very Light Jet (VLJ) craze at the start of the millennium. We also discussed where eVTOLs might fit into the market once the leading projects in development overcome the many barriers to certification. With hundreds of eVTOL programs being developed, which are the most interesting? Despite a current lack of information on prices and operating costs, we undertake to explore a few promising eVTOL projects in this and the next article…

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Joby Aviation

With over $800m investment from Toyota and Uber, Joby Aviation’s eVTOL carries one pilot and four passengers across a range of 150 miles. In 2020, Joby Aviation agreed to a "G-1" certification basis for its aircraft with the FAA, laying a clear path to certifying the aircraft for commercial flights. The US Air Force also granted its first ever eVTOL airworthiness approval to Joby as part of its Agility Prime program. In July 2021 Joby completed the longest test flight of an eVTOL to date: Its unnamed full-sized prototype aircraft concluded a trip of over 150 miles on a single

 Joby Aviation's eVTOL prototype

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charge. The prototype spent more than an hour and 17 minutes in the air and covered 154.6 statute miles on a single battery charge, traveling along a predefined circuit. While the test flight was remotely piloted by Joby’s Chief Test Pilot, Justin Paines, the company plans to have pilots in the aircraft when it opens its ride-sharing service for customers. With over 1,000 hours of flight testing at the time of writing, Joby is on-track to achieve FAA certification by 2024. Meanwhile, Joby Aviation and car park operator Reef Technology have signed the first official eVTOL/car park collaboration. Reef Technology owns more than 5,000 sites in “all key metropolitan areas in the US”. The partnership intends to turn car parks into “mobility hubs” – places where cross-town and inter-city eVTOL flights can connect with public transport, ride-sharing operations, micro-mobility options like scooters and ebikes, and car parking – catering to what's expected to be a shrinking number of people owning their own automobiles. More information from www.jobyaviation.com

Archer Aviation: Maker

Maker is the full-scale eVTOL aircraft of Archer Aviation that is capable of traveling over 50 nautical miles. Whether commuting or exploring, Maker will allow passengers to have “transformative travel experiences”. The aircraft feature redundant batteries and motors to preserve flight in any situation, Archer says. This redundancy

allows them to fly safely regardless of any unforeseen circumstances. Its 12 wing-mounted rotors - six on the leading edge, which appear to be tiltable, and six on the trailing edge - are powered by six independent battery packs totaling 100hp (75kwh). The aircraft is built to tolerate an entire battery pack system failure or two motor failures without compromising safety. Maker has a top speed of 126kts and a range of 51.8nm (96km); flying one pilot and four passengers. While on the ground, the batteries will be “fast-charged” in about 10 minutes and the aircraft is designed to complete up to 40 flights every day. Archer's has gone for a luxury ergonomic feel for its interior aircraft design. With ample leg space and a 270 degree view thanks to its wrap-around window, a large 13inch touchscreen interface displays flight information and entertainment options. United Airlines has recently announced that it will invest more than $1 billion in Archer Aviation, and is looking at operating over 200 Archer Maker’s across the United States. The airline estimates that flying one of Archer’s eVTOLs between Hollywood and Los Angeles International Airport (LAX) could reduce CO2 emissions by up to 50%, per passenger. Coincidentally, Los Angeles is one of the first cities in which Archer plans to launch its fleet, and is one of United’s largest hubs. More information from www.archer.com

 Archer Aviation's Maker eVTOL

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 Lilium Jet

“Ultimately, the energy consumption per seat and kilometer becomes comparable to an electric car – but the Jet is three times faster.” Lilium: The Lilium Jet

The Lilium Jet is an eVTOL designed and manufactured near Munich, Germany. The Jet uses swiveling ducted fans to provide vertical thrust for take-off and landing. These same fans then slowly rotate towards rear facing as the Jet accelerates and converts to its forward flight mode. The eVTOL consists of a rigid winged body with 12 flaps, each one carrying three electric jet engines. Lilium Jets require no gearboxes, no foldable or variable pitch propellers, no water-cooling, and no aerodynamic steering flaps, all of which combines to reduce weight, allowing the battery power to be used for longer flights. Moreover, the Lilium Jet can provide differential thrust from the engines in cruise flight, and no stabilizing tail is necessary. The design of the electric engines ensures a very low drag coefficient in cruise flight, leading to a higher speed and longer range. Ultimately, the energy consumption per seat and kilometer becomes comparable to an electric car – but the Jet is three times faster. The five-seater version has a 186 mile range at 187 mph, and is propelled by 36 ducted fans. However, Lilium recently announced an $830m IPO merger with Qell Acquisition Corp which will fund the development of a seven-seat eVTOL aircraft, with Lilium confirming that the series

production Lilium Jet, due to enter commercial service in 2024, will have two more seats than the current five-seat technology demonstrator. It will offer a 155 mile range, but keep a similar cruising speed to the five-seat model. And, Lilium has signed a deal with serial aviation entrepreneur, David Neeleman’s Brazilian airline, Azul – the largest domestic airline in Brazil in terms of cities served and daily departures. Each Lilium Jet will cost Azul roughly $4.5m. John Rodgerson, CEO of Azul, said in a statement that Azul’s brand, route network and loyalty program will help to “create the markets and demand for the Lilium jet network in Brazil.” With ongoing flight testing underway, Lilium is seeking concurrent certification for its seven-seater Jet from the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA). This will be completed under the Bilateral Aviation Safety Agreement (BASA). More information from https://lilium.com Next time we will look at some other players in the eVTOL market and see what other news this fascinating new sector of has in store for us. Stay tuned… 

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

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NBAA-BACE PREVIEW ALL PHOTOS COURTESY OF NBAA

NBAA-BACE 2021: Another Step on the Comeback Trail For the first time since before the Covid-19 pandemic, NBAA-BACE will take place, October 12-14, in Las Vegas, Nevada, reports Dave Higdon. The event represents a significant milestone as BizAv resumes normal activity, with industry friends and colleagues welcoming the chance to join together again.

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rguably, the Business Aviation community is ready. Equally, in anticipation of the expected crowd, Las Vegas is ready, as is the National Business Aviation Association (NBAA). Just how ready these players are will not become completely clear until the National Business Aviation Association Business Aviation Conference and Exhibition (NBAA-BACE) completes its 2021 run over October 12 through October 14. But all the signs show NBAA is taking every necessary precaution. Evidence of the industry’s readiness could be seen at two signature aviation events earlier in the year: The Aircraft Electronics Association (AEA) Convention in Dallas, June 22-25, which drew strong attendane despite international travel restrictions; and the Experimental Aircraft Association (EAA) AirVenture Oshkosh in Wisconsin July 26-August 1. Now comes NBAA-BACE, and among the signs of aviation-community readiness is a sold-out convention hall, and a new one at that. Coupled with other changes, NBAA-BACE 2021 offers a first opportunity to catch up on Business Aviation advances since the last in-person meeting in 2019.

Health & Safety Considerations

Vaccinations Required: Although the announcement came late in the run-up to NBAA-BACE 2021, NBAA, staying consistent with its core value of safety, has adopted a COVID-19 vaccine requirement for this year’s Convention. Designed to ensure a safe, interactive, and successful event for all attendees and exhibitors, NBAA requires vaccinations against Covid-19 for all pre- and post-show educational events (among them the 2021 Tax, Regulatory & Risk Management Conference, and NBAA PDP Courses). By adopting this requirement for NBAA-BACE, vaccinated attendees and exhibitors will have the personal choice with regard to mask-wearing. Compliance should be easy and straightforward: In addition to on-site presentation of a vaccination card, NBAA is working with companies like CLEAR to help attendees provide digital verification. People will be considered fully vaccinated: • Two weeks after their second dose (in a two-dose series) of such vaccines as Pfizer or Moderna; or • Two weeks after a single-dose vaccine, such as Johnson & Johnson’s Janssen vaccine.

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For help finding a COVID-19 vaccine, visit vaccines.gov, or, for additional information, email info@nbaa.org, or review NBAA-BACE vaccination information: https://nbaa.org/events/2021-nbaa-business-aviationconvention-exhibition-nbaa-bace/nbaa-bace-getting-to gether-safely/#vaccinations Masks: While the wearing of masks is voluntary in most circumstances, they remain a requirement in certain circumstances, including shuttle bus travel (i.e. to and from the Static Display), which is considered public transportation.

or service in front of a wider audience, increasing the ROI on their NBAA-BACE investment. “For attendees, the platform will pull together many of the latest and greatest products Business Aviation has to offer, in one place,” Austin added. “Attendees will be able to view these products before, during, and after NBAA-BACE, maximizing exposure and access to these featured new products.”

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International Travel Restrictions Remain: Several Presidential proclamations established restrictions on the entry of certain travelers into the United States in an effort to help slow the spread of coronavirus. Therefore, with only specific exceptions allowed, the absence of several of our international friends and colleagues will be felt at the 2021 edition of NBAA-BACE.

Retooling a Fans’ Favorite

For the 2021 event, NBAA decided to make a change to its New Product Showcase, ‘Retooled’, to include a digital and mobile presence. The showcase, which will be held on the exhibit floor in the West Hall of the Las Vegas Convention Center during NBAA-BACE 2021, will enable exhibitors to highlight new products, along with those unveiled during the pandemic through the digital presence, NBAA says. “We’ve reimagined the New Product Showcase with the exhibitor and attendee experience in mind,” said Tyler Austin, NBAA's Director of Certification. “This digital platform will allow exhibitors to get their product

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More Improvements to NBAA-BACE 2021

With days to go before the 2021 edition of NBAA-BACE opens in Las Vegas, the association reports an impressive roster of business aircraft confirmed to appear in the show’s expansive outdoor aircraft display at Henderson Executive Airport (HND). “We’ve seen tremendous interest from nearly all major Business Aviation OEMs to have their aircraft displayed at NBAA-BACE,” observed Joe Hart, NBAA's director for aircraft displays and regional forums. Featured during NBAA-BACE will be dozens of business aircraft, of all sizes and for all missions, NBAA reports. Among the manufacturers booked at the time of writing were Airbus, Cirrus Aircraft, Daher, Dassault Aviation, Embraer, Honda Aircraft Company, Pilatus, Piper, Tecnam and Textron Aviation on display.

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Additionally, attendees will be able to view aircraft displayed by a wide range of industry-leading companies, including some of the leading dealers and brokers. “We’re pleased to have such a diverse line-up of manufacturers and aircraft resellers on hand to welcome attendees to the show’s outdoor aircraft display,” Hart added. And, for the first time, NBAA-BACE will feature an Owner/Single-Pilot Pavilion at the Henderson outdoor aircraft display, bringing together a key part of the Business Aviation community in a new and meaningful way. Back in the LVCC exhibit hall, providers of just about every conceivable Business Aviation product and service will be on hand, displaying and discussing their offerings and specialisms with the thousands of visitors expected to pass through the halls. Although there remains a sense of continued recovery hanging in the air following the long-lasting impacts of the Covid-19 pandemic, it’s going to feel very much like business as usual in Las Vegas during midOctober when NBAA-BACE 2021 rolls into town! For a full program of events, showcases and exhibitors, visit www.nbaa.org/bace 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 Best to Dispose of an Aging Business Aircraft For every owner of an older business airplane, there comes a time to consider how best to obtain the highest sale price possible. The calculations and

process involved aren’t always straightforward, as Chris Kjelgaard discovers… oday — right now — is perhaps the best time in the history of Business Aviation for owners of aging aircraft to consider putting their aircraft up for sale, assuming it has some operating and maintenance life remaining before the next major scheduled maintenance event comes due. The market for used bizjets and turboprops has never been hotter in the US (which in itself constitutes well over half of the entire world market). The overall North American market, which includes the sizable Business Aviation markets of

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Canada and Mexico, may constitute 75% of the total global market for pre-owned business aircraft. First-time private and corporate buyers persuaded by the Covid-19 pandemic to avoid the vagaries and irritations of domestic and international commercial air travel have been flocking to the business aircraft market, seeing it as a worthwhile and affordable way to travel by air with minimal fuss. “In the current market, people are more open to being the last owner [of an older business aircraft]," says Jeremy Cox, a Senior Aircraft www.AVBUYER.com

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Over-Optimism in Owners

For owners, “The question that comes up most often is, ‘what is it really worth?’” says Tony Kioussis, President and CEO of Asset Insight (www.assetinsight.com). “Savvy aircraft owners know what their aircraft are worth,” but for a variety of reasons many owners can harbor delusions about what their older business aircraft will realize when sold – even in a hot market. One reason is emotional attachment to a particular aircraft – especially one which an owner has owned for several years and which may have been customized to suit the owner’s individual taste. Where an owner has invested considerably in having the aircraft’s engines overhauled, having regular maintenance performed on the airframe, making sure its life-limited components are replaced when required, and installing Wi-Fi in the cabin, they may plan to get much of that investment back upon selling the aircraft, building those expenses into the sale price. The reality is that they are likely to be disappointed. “You can put Wi-Fi in an older aircraft worth $300,000-$400,000, if appropriate antennas are available for it, but spending $400,000 on Wi-Fi will not add to its value,” says David Wyndham, Vice President, Asset Insight Consulting Services. “Only if operating the aircraft for several years” after installing the Wi-Fi capability will an owner realize any great degree of cost-effective benefit from that investment, he notes.

Factors Affecting Aircraft Value

Appraiser (certified by the American Society of Appraisers), and founder of aircraft appraisals firm, JetValuesJeremy (https://jetvaluesjeremy.com). Before focusing on appraisals, Cox spent several successful years as a pre-owned aircraft broker. “The market has turned up considerably and the availability of late-manufacture models has dried up,” he adds. “People are more open to buying aircraft with a few hundred hours [of engine or component life remaining] or a few months to their next major inspections — those aircraft which aren’t listed value-wise.” However, while today’s hot market provides every incentive for owners of older aircraft to put them up for sale, they must accept that they will have to be realistic about the prices at which they will have to offer their aircraft in order for the aircraft actually to be sold. www.AVBUYER.com

The value of an older aircraft might improve if the owner can negotiate with its manufacturer an extension to the aircraft’s scheduled time between overhauls (TBO), with the OEM providing a letter of agreement confirming that extension. However, such agreements on individual aircraft often are not transferable to new owners, and a higher resale value will only be practically guaranteed if the manufacturer has provided a general TBO extension program for all examples of the aircraft type or model, says Cox. Having engine and component life remaining until its next major scheduled maintenance event definitely will make an older aircraft more saleable, but the aircraft’s owner may well remain disappointed in the price at which the aircraft will sell. The actual sale value of an older aircraft doesn’t depend merely on its maintenance status and the degree of customization the aircraft has been given, according to Wyndham. For any given aircraft, while its maintenance status — hours accumulated, and hours and cycles remaining until major scheduled maintenance — is important in determining its real resale value, so

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too are its overall operating and maintenance pedigree (particularly the presence or absence of required documentation). Just as important are how much it costs to operate; how much fuel it burns compared to modern business aircraft; how easy and cheap it is to obtain replacement parts; and to what degree modern aircraft noise and airworthiness regulations have made the aircraft operationally and economically obsolescent.

A Healthy Dose of Realism

Any owner of an older business aircraft who thinks that selling it to a charter company will provide the best way to get the optimal price for the aircraft may well be disappointed. Not only will the charter company look very closely at the aircraft’s overall operating costs, maintenance status, and overall degree of economic obsolescence; it will also require as an outright condition that the aircraft comes with high-bandwidth Wi-Fi capability in the cabin. In fact, says Wyndham, the best time for an owner of an aging aircraft to start considering what the longterm prognosis will be for marketing the aircraft is when they first acquire it. If few examples of the type are still flying when the owner decides to sell, then few potential buyers are likely to be interested in becoming the next owner. That goes even for parts-trading companies, to which aging aircraft owners often look as a potential avenue for selling their aircraft. If few examples of an older aircraft type remain flying, and it is regarded as 62  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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economically obsolescent, parts companies have little incentive to buy any examples they are offered. “There are so many old airplanes now that it is difficult to find a parts company willing to pay for an aircraft,” Kioussis says. “Usually the engines as a whole are not useful, and the avionics are usually too old to matter — and there are probably several of those parts available on the market already. Engine OEMs turn down offers to buy engines all the time.” Parts for older aircraft which are economically obsolescent and are rapidly disappearing from service have particular cost downsides for parts-trading companies, Cox points out. After the parts are extracted from the aircraft, the companies need to have warehousing space to store them; and sorting, inventorying and listing the parts requires plentiful supplies of both manpower and time. After the parts have been stocked, “it takes companies years to get their money back out of the aircraft by selling its parts.” Asset Insight has established a very strong statistical correlation between the amount of maintenance investment that is embedded (accrued since its last scheduled maintenance event) in any older aircraft and the time it will spend on the market when listed for sale. If the ratio of its embedded maintenance to its asking price — which Asset Insight calls the Maintenance Exposure to Ask Price (ETP) Ratio — is greater than 40%, the aircraft will stay much longer on the market than an aircraft for which the ratio is less than 40%. Aircraft with particularly high ratios can

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remain on the market for three years or longer before either being sold, or their sale listings being withdrawn. “Owners of such aircraft should really just be realistic about what it is worth,” advises Kioussis. “They shouldn’t set unrealistic asking prices.” In fact, he says, owners should ask, “Is it not worth more [to them] flying it than selling it?” In most cases “they should sell it for what they can get,” or otherwise, “if they like the aircraft, fly it until the engines run out of time, or the landing gear runs out of landings.”

Should Owners Sell at All?

Even when a favorite older aircraft’s engines have completely run out of time, the owner might be able to keep it flying relatively inexpensively. One tactic owners use to keep otherwise unairworthy and unmarketable aircraft flying is to replace the run-out engines with another set of inexpensively-purchased used, serviceable engines with a few hundred hours of life left in them, installing those on the aircraft, says Wyndham. He cites the example of an operator of a couple of Learjet 20-series aircraft in Brazil who replaced pairs of run-out engines with others costing about $200,000 (per pair) to keep those older aircraft in service for a few hundred additional hours of flight time. But even taking into account an older aircraft’s potentially higher fuel and operating costs, there may be a strong reason for owners to buy, or keep operating, older aircraft, rather than trying to sell them and replace them with new aircraft, says Wyndham. 64  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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Rather like a car’s value, a new aircraft’s resale value depreciates rapidly after it leaves the factory or the dealership. A new aircraft can lose 20% to 30% of its acquisition cost in the first three to four years of its operating life, Wyndham explains. So for an aircraft that costs (say) $20m new, that loss could be between $4m to $6m in the first five years of ownership. However, if the owner buys an older aircraft instead for $3m, operating it until it can only be sold for parts and scrap — for about $200k in all — that $2.8m value loss is much less than the financial loss the owner would have taken in buying a new aircraft. Even if the new aircraft costs less to operate than the older one, the cost difference is unlikely to be as much as the $3m net loss the owner realizes on the new aircraft’s resale price compared with the value loss incurred with the older aircraft. In the view of one aircraft broker polled, an owner should consider disposing of his or her aircraft when it either no longer fits the desired mission profile, or when its dispatch reliability falls below the level the owner requires. This is when you should decide whether you have something to sell, or not, the broker asserts. Once the owner makes the decision to dispose of an aging aircraft, “Don’t try to do it yourself,” Kioussis warns. “Partner with a very experienced broker,” someone who will adjust your expectations of the price the aircraft will fetch in the market if needed. Some owners are so unrealistic that their aircraft remain on the market for a long period of time. “Some brokers refuse to take certain aircraft, because the advertising costs will be higher than their fees. Even if

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Action Aviation October.qxp_Layout 1 21/09/2021 12:39 Page 1

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• Runway Awareness & Advisory System (RAAS) • Lightning Sensor System (LSS) • Airshow Network13” LCD Monitor in Forward Cabin • (2) LCD Monitors in Aft Cabin (10’’ Fwd & 14’’ Aft) • (6) 5.6” LCD Monitors at each Single Seat • (3) DVD Players • Elevator Hard Over Prevention System (HOPS) Improvement (ASC 206) • Honeywell DL-950 Data Loader • LED Nav Lights & Tail Position Light • Location: Macon, Georgia

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the aircraft is the best [of its type] in the marketplace, the market is only willing to pay a certain amount for any aircraft of that type.”

Sales Strategies for Older Aircraft

While some older aircraft are still sold into Mexico and Latin America from North America, Kioussis says it is important to realize that “the biggest importer of older aircraft is the US — we import more than we export. “There are only a handful a year sold to Mexico,” he explains. “The situational realities are very different from what people like to believe.” Africa, another traditional home for older and endof-life business aircraft sold from North America and Europe, no longer is so, according to Cox. Its constituent nations have largely adopted the same airworthiness regulatory standards as those of the major developed world nations, and their wealthy individuals and corporations are just as capable of assessing an older aircraft’s condition and true resale value as are buyers in North America. The story is the same for most Asia-Pacific nations, Cox adds, with many now having adopted regulations barring the importation of aircraft older than 12 or 15 years. There are a few specific aircraft-type exceptions to this rule, says Wyndham – particularly among turboprop utility types such as the Cessna Caravan 66  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

and the seemingly immortal original de Havilland Canada Twin Otter. Twin Otter 200s and 300s built nearly 50 years ago are now commanding higher lease rates every year, because of their ruggedness, their extreme utility, their irreplaceability, and the fact that it costs up to $7m to buy a new Viking Twin Otter 400 today. For owners of older aircraft, it can be worth researching to find particular niche markets where — because of their particular operating characteristics — specific aircraft types retain their value, no matter what their age, says Kioussis. In fact, Kioussis terms this type of focused marketing “strategic selling”; a marketing approach requiring much research. Some aircraft types — again, mainly turboprop and piston-engine types — are particularly valued for operations in the Caribbean, where short runways and tight approaches abound. Meanwhile, some older business jets also remain valued in some specialized markets. The aging Falcon 50EX “can handle a lot of different, difficult approach parameters,” making it particularly suitable for operations into airports with challenging approaches, Kioussis elaborates.

Charitable Donations and Scrapping

Two further potential aircraft disposal avenues remain for owners, one of which is probably more attractive than the other. www.AVBUYER.com

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find that the aircraft realizes only $250,000 at the subsequent charity auction, the national tax authority will soon come calling to ask why there is such a major discrepancy, and stiff penalties may result. The only remaining sales avenue for disposing of an aging aircraft that is economically obsolescent (or even obsolete) and is in run-out condition, is to offer it to a scrapyard. This might result in a small payment but, according to Cox, the question the owner is more likely to have to ask the scrapper is, “How much is it going to cost me for you to dispose of it?” “It costs more to break a hulk up than what the scrap metal is worth,” says Cox. “The per-pound price of dirty mixed metal is extremely low, and there are hazmat issues associated with scrapping it.”

Expert Advice

First, owners can consider non-cash charitable donations of their disposable aircraft, either to general charities for subsequent auction, or to aviation organizations such as aircraft-maintenance schools (to help students learn maintenance techniques and technologies), or airports as gate guardians or as aids for fire drills and evacuation emergencies. “This does have value and perhaps more than the appraised value in some situations,” says Cox, who has performed aircraft-value appraisals for owners for these purposes. However, if they decide to donate their aircraft charitably to realize tax deductions, owners must be careful that they do not furnish the tax authorities with over-optimistic appraisals of an aircraft’s resale value, Cox warns. Should an owner obtain an appraisal that a donated aircraft is worth $1m and take that deduction, only to

“If you’re serious about selling, do so as quickly as possible,” advises Kioussis. “An aircraft is a depreciating asset.” Even in today’s overheated market, “If its value goes up, the incremental increase will be marginal, and more likely the value is just going to depreciate more slowly” than it would in a more stable market. “If your aircraft has been sitting [grounded for an appreciable period of time], your only option is to sell it.” At that point, “Everything on the aircraft will need to be recertified,” he adds. “The longer the life you build into an airplane, the greater the value and the more the interest,” says Cox. But when seeking to sell an older aircraft, “there has to be a definite sense of realism in terms of pricing and marketing, and you have to be honest.” A final word of advice goes to those who either decide to buy older aircraft, or keep them in service longer than originally planned. If this describes you, Wyndham suggests you must make sure the aircraft’s continuing maintenance is performed by a company, and by A&P mechanics, who know that aircraft type really well and are experienced in maintaining it. “Even Bombardier doesn’t have people anymore who maintained the original Challengers,” he says. “You need to find those facilities that do still maintain your aircraft.” T

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

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Aradian November.qxp 20/10/2020 09:54 Page 1

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Comparing BizJets: The Apples-to-Apples Approach (Part 2)

René Armas Maes explains a systematic approach to comparing operating costs of candidate aircraft, once you have identified the aircraft types that best fit your requirement. reviously, we explored how to execute a comparative analysis of suitable aircraft (whether for a private or charter operation), including the necessary steps and key analysis (see p40, AvBuyer September 2021 issue). Within that article, we focused on route performance, technical specifications, passenger comfort, and more. This time, the discussion covers the assumptions that should be made when comparing multiple aircraft, including the Direct Operating Cost (DOC), different levels of Original Equipment Manufacturer (OEM) warranties and service, technical support, training, hourly maintenance programs and coverage levels.

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Direct Operating Cost

When seeking to obtain an apples-to-apples comparison of business jets, you should begin by analyzing the hourly direct operating costs along the typical mission routes the jet will fly. This cost analysis should include pilots and cabin crew salary (plus any layover expenses), fuel costs, maintenance, insurance, landing, ground handling and parking fees, navigation, and catering costs. Several assumptions will need to be made for the analysis including: 1. The aircraft’s purchase price, and any potential discount you may be able to negotiate with the OEM or the seller. www.AVBUYER.com

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2. Spare parts provisioning: In the case of a brand-new aircraft, consider and review OEM spare parts provisioning programs, which cover several years of operation at an escalating hourly rate, and assume them to be included in the overall maintenance costs. For pre-owned jets, review the hourly engine, APU, avionics, and airframe maintenance programs available. 3. Financing terms and residual value: How will the aircraft be purchased? The most common options are direct aircraft purchase (cash) and debt-financing (loan). However, the option to lease at a monthly rate of X% of the aircraft’s value for a short-term period (i.e. 24 months) could help reduce the initial capital outlay. 4. Fuel burn and cost: The block fuel burn for each aircraft in the analysis should be derived from the manufacturer’s route performance analysis, in the case of a factory-new aircraft. Sources, including AMSTAT, Conklin and de Decker, and JETNET can be used for preowned aircraft. You should ideally derive a fuel cost per US gallon, which should be an average www.AVBUYER.com

cost. Moreover, make assumptions about the possibility to tanker fuel (or not) where longhaul routes are required. 5. Maintenance cost per block hour: Based on OEM data, calculate the maintenance cost per block hour for all of the aircraft in your analysis. Cross-check your data with all of the sources available, making sure the hourly cost includes the cost of repair and overhaul of components. If these are not included, make a provision to cover them. 6. Crew salary and layover costs: Assume the annual aggregate pilot and cabin crew salaries, as well as crew layover costs, based, for example, on a one-night layover for X% of the annual trip expected. A crew layover rate of $350 per crew member is a suitable starting point. 7. Insurance: Assume typical insurance rates for each aircraft under evaluation, including hull, passenger liability, and third-party liability. 8. Landing and parking fees: Calculate an average rate per cycle, based on each subject aircraft’s maximum take-off weight. 9. Ground handling and navigation fees: Source information from several different FBO operations – both at the likely home base and at the common destination airports the aircraft will be flying to. This will help establish an average rate per cycle. Likewise, establish an average rate per cycle for navigation fees. 10. Catering charges: Assume a rate per hour and per seat (including crew), based on an average anticipated cabin occupancy. Having sourced the information and costs, summarize your findings and compare all of the candidate aircraft in your comparison. This should cover the total operating cost before and after ownership costs have been considered. Establish the two aircraft on your list that offer the biggest advantage in terms of direct operating costs, and reevaluate (where necessary) the aircraft that appear to have the highest operating costs. Once you are sure of your operating cost numbers, shortlist two aircraft for the next round of analysis.

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BUYING & SELLING AIRCRAFT

Warranty, Service and Support

In the case of a brand-new aircraft, you should ask the OEMs about their level of warranty, service and technical support, and build a scorecard table. Table A (right) provides an example, and includes details of the basic warranty terms for the airframe, engine and other major aircraft components. Having done so, you will be able to quickly identify which OEM generally offers an advantage, per warranty item. To deepen your exploration of warranties, it is worth investigating which OEMs provide warranty coverage for specific items with no hourly limitation. Moreover, you could assess which manufacturers offer a worldwide support network that provides technical support 24/7/365 in your city, country or region. Do the OEM’s service and support facilities have an on-site field service representative where you are planning for your aircraft to be based? At the very least, do they offer representatives close to the country or region you’ll base your aircraft in, providing support, parts, training, maintenance and other services? In the case of a pre-owned jet or turboprop, investigate which companies offer hourly maintenance cost programs covering the engines, APUs, avionics and airframe, as required. For example, all of the engine manufacturers offer their own programs, including General Electric’s OnPoint program, Pratt & Whitney Canada’s ESP, 72  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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TABLE A: Warranty/Service and Support Scorecard

and Rolls-Royce’s CorporateCare. Meanwhile, third-party providers such as Engine Assurance Program and JSSI are also options. Keep in mind that when you come to shop the pre-owned market, aircraft for sale may already be enrolled on a program that can be transferred to the new owner. In many cases, these programs offer with different levels of coverage, and you should establish exactly what is covered by each coverage level, so that you can assess pre-owned jets that are of interest on a case-by-case basis.

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BUYING & SELLING AIRCRAFT

“Having sourced the information and costs, summarize your findings and compare all of the candidate aircraft in your comparison.”

Training and Additional Spare Parts

For a brand-new aircraft, initial training for two pilots and one maintenance technician should be offered free of charge by OEMs. You may also try to negotiate for one additional pilot and one flight attendant to be trained free of charge. Keep in mind that recurrent training will be necessary for two or three pilots and a maintenance technician from year two onward, irrespective of whether you buy a new or preowned jet. Likewise, a flight attendant will require refresher training annually. In order to minimize spare part costs, analyze the parts-by-the-hour inventory programs that the respective aircraft manufacturers offer. Are there any ongoing parts needs that are not covered by these programs? Will it be necessary to invest a small amount in spare parts to cover expendables

and AOG items? Be aware that manufacturers may be willing to provide some of this investment (particularly in spare parts) on consignment, thereby further reducing costs. For pre-owned aircraft, evaluate third parties that offer such services in order to stabilize your annual budget.

Conclusion and Recommendation

After careful examination of all the various metrics outlined, select the aircraft that is likely to be the most suitable, based on its ability to perform the highest majority of expected missions, offering the lowest costs advantage (both from an operating cost and an acquisition cost perspective), and its ability to provide a level of comfort adequate for your needs and expectations. T

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

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Finance OCT.qxp_Finance 21/09/2021 11:53 Page 1

FINANCE

Is an Aircraft Lease Right for You? Who do aircraft leases benefit the most, what length of lease is usual, and what rate can you expect to pay? David Wyndham explores answers to these, and other FAQs. he business jet is an asset: It is an item of value that is controlled by you and your aviation department. Ultimately, its value is a function of how well the aircraft is managed in the areas of utilization, maintenance, and financing. Following, we will focus on the financing of the aircraft via an operating lease, which offers the lessee a specific period of aircraft access with a defined, fixed cost of ownership in the form of a lease rate. The financial institution (lessor) ultimately retains ownership, and, as such, assumes the residual value risk and enjoys the tax depreciation benefits. In evaluating a lease, versus a finance or cash purchase, the analysis of the costs involves the

T

76  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

‘ownership cost’. The ownership cost of an aircraft is the total of: • • • •

The initial acquisition cost; Financing (such as interest and principal payments); Lease payments; and Any residual value or income at the disposition or sale of the aircraft.

Whoever the owner of the aircraft is assumes the residual value risk/reward. With a cash purchase, the owner(s) have 100% of the risk. With financing, the final owner and financing entity share the risk until the www.AVBUYER.com

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“Several experts within the industry estimate a 10% annual decline in the value of turbine airplanes.”

debt is paid off. With an operating lease, the leasing entity is the owner who retains the residual value risk. Thus, with a lease the ownership cost is fixed to the lessee in the form of the total amount of the lease payments.

What is the Usual Length of an Aircraft Lease?

Lease lengths vary, and are fixed in length. The lessor typically looks for a long enough term that they can take full advantage of the tax depreciation benefits. Some lessors offer short-term leases, running as short as 18-24 months. This is particularly useful to operators waiting for the delivery of a factory-new aircraft as they can lease a pre-owned aircraft for their exclusive use. Given the short lease length, the rates are typically higher since the lessor must take back the aircraft and either sell it, or lease it to a new lessor after a relatively short period. www.AVBUYER.com

Long-term leases vary in length. For turboprops and jets, a long-term lease typically ranges between seven and 10 years. (Some piston aircraft manufacturers may coordinate with financial institutions to have leases for their new models of up to 15 years or more.)

What is the Usual Rate of an Aircraft Lease?

Lessors will always seek to protect the financial downside. Since they carry the risk of the aircraft’s residual value, retaining ownership at the end of the lease term, the lessor will price the lease rate accordingly, covering that risk. Several experts within the industry estimate a 10% annual decline in the value of turbine airplanes. Lease rates reflect the uncertainty in an aircraft’s future values, and rates are also connected to the popularity of the aircraft, while being tied in to the cost to the lessor of borrowing.

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Would-be lessees should be aware that leases come with end-of-term condition requirements. There will be adjustments for high utilization, since this impacts the maintenance status of major components, and reduces the residual value of the aircraft. Many lessors will also require the engines to be enrolled on a guaranteed hourly maintenance program, since engine maintenance is a major cost driver in operating costs.

Can You Exit an Aircraft Lease Early?

If you want to exit an aircraft lease prior to its contracted end, you can always pay the remaining lease payments, but this is very costly. You may want to look for an Early Buy-Out (EBO) option, allowing the lessee the option to exit the lease by purchasing the aircraft. As an example, on an eightyear lease, you may have an EBO at years four, five, and six. The financial institution will offer the EBO at a fixedprice that covers its conservatively estimated residual

value, and as a result the EBO may be greater than the fair market value at the buy-out time.

Tax Depreciation and Aircraft Leases

The lessor retains the tax depreciation benefits. Lease payments may be tax deductible when the leased aircraft is used primarily for business. If you don’t want to, or cannot use, the tax depreciation on an aircraft, a lease may be a better option compared to whole ownership. Always check with a qualified aviation tax advisor regarding this.

Who Benefits Most from Aircraft Leases?

So, ultimately, what type of Business Aviation user would benefit the most from leasing an aircraft? You should consider the benefits offered by an aircraft lease if, a) have a fixed period for which you wish to have the aircraft; b) have no need of tax depreciation; and/or c) have average or lower-thanaverage annual utilization. T

DAVID WYNDHAM is the Founder of David Wyndham + Associates, LLC. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker. He is also Vice President, Asset Insight Consulting Services.

MAKE MORE INFORMED FINANCING DECISIONS with AvBUYER.com

https://www.linkedin.com/in/davidwyndham/

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Ownership 1.qxp_Finance 21/09/2021 12:42 Page 1

OWNERSHIP

Buying a Jet: How to Assess Passenger Comfort Improving the comfort, health and wellbeing of Business Aviation passengers is vital for owners, operators and OEMs alike. René Armas Maes discusses some core areas for consideration, with a view to developing a scorecard in your purchase analysis… assengers’ comfort, wellbeing, and arrival at the destination rested and refreshed are top priorities for business jet owners and business aircraft manufacturers (OEMs) alike – especially since corporate travelers are more demanding today than ever before. With the development of Ultra Long-Range business jets that are capable of flying more than 7,900 nautical miles non-stop, and advancements in cabin technology capable of replicating the comforts of the home or office, passengers expect their time spent aboard a private jet to be as restful or productive as it would be on the ground. For the past several years, the leading OEMs and related products and services providers have been shaping the Business Aviation flight experience. Not only has it been important to design and develop materially- and technologically-comfortable cabins, but large galleys and lavatories, multiple living spaces and even stand-up showers are increasingly important elements of passenger well-being, depending on the size and range capability of the aircraft. Humidity, cabin temperature control, cabin altitude and noise cancellation are all key areas of focus by the industry, as are highly sophisticated cabin lighting systems that even adjust to the passengers’ biological rhythms.

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Clean air, and optimal cabin air recirculation, are, unsurprisingly, key concerns for today’s passengers in light of the Covid-19 pandemic, and the leading Business Aviation OEMs have been re-evaluating what options are available to enhance the removal of bacteria from the cabin air. The majority of the business aircraft use either a 100% fresh-air environment, or recirculated air system. High-Efficiency Particle Assurance (HEPA) filters commonly used on the airlines can be fitted upon request by OEMs or by third party vendors. Having provided a general overview, when it comes to passenger comfort and wellbeing, how can a prospective buyer of a new or pre-owned business jet scrutinize the key areas of cabin comfort before making a decision to buy? The following outline should help provide some focus…

1. Cabin Lightning and Aircraft Design

Several of the industry’s leading OEMs have won international design awards. For example, Dassault’s Falcon 6X earned the 2020 international award for interior design. The Falcon 6X features an industryfirst overhead skylight in the galley, flooding natural light into the galley area. And therein lies a core value in passenger comfort assessment… Cabin brightness is key. www.AVBUYER.com

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When considering cabin brightness, the number of windows, and how the light is distributed throughout the cabin is an important factor for passenger wellness. As an example, the Gulfstream G700 cabin features 20 panoramic oval windows, while the Falcon 10X and Bombardier Global 7500 each offer 38 windows. Many OEMs also offer smart-controlled mood lighting systems aboard their aircraft that vary color patterns in accordance with the type of activity being undertaken, the time of day, or even the season. Many of today’s business jets come equipped with bright and soft LEDs to set the color of the cabin, while emulating natural light from sunrise to sunset, matching the passengers’ natural circadian rhythm to ensure extra physical and mental comfort. When assessing a prospective business jet to buy, make sure the cabin lighting – both natural and electrical – are thoroughly assessed and understood in relation to the typical mission you’ll be flying.

It is widely understood that a low cabin altitude means passengers will feel more relaxed during the flight, arriving at their destination feeling more refreshed. Moreover, to avoid jetlag when crossing multiple time zones, humidity control is key to providing optimal comfort. Gulfstream’s G700 offers both turbo heat/cool features to control the cabin temperature in each of its cabin zones, helping alleviate jetlag, and minimize post flight fatigue. Also, the new Dassault Falcon 10X offers an extremely impressive 3,000 feet cabin altitude at 41,000 feet, while Bombardier claims its Global 7500 cabin altitude will never exceed 5,680 feet when cruising at its maximum altitude of 51,000 feet.

3. Noise Cancellation and Acoustic Technology

Will there be a need for you to upgrade the cabin lighting to enhance passenger health and wellbeing? Do other jets on the market of the same make/model already offer the required upgrades in their lighting systems?

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O

If not, what is the cost of the upgrade likely to be?

2. Pressurization, Humidity and Cabin Temperature

The two main sources of noise aboard aircraft are the aerodynamic turbulent flow, and engine vibrations. The preferred option is for a quiet cabin that is able to dampen noises, irrespective of the phase of flight. Acoustics play a key role in optimizing passenger

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comfort, and are increasingly considered a true differentiator between one jet and another by passengers. High noise levels can hamper comfort in different ways, including making conversation within the cabin difficult. But minimizing the cabin noise level doesn’t come without challenges where a modification is being considered. Installation of soundproofing technology will directly impact the weight of an aircraft, potentially reducing its range and payload capacity. • •

For OEMs, the challenge becomes designing an aircraft while keeping the weight of soundproofing materials as low as possible. For buyers of pre-owned aircraft, the challenge is to ensure any modification that is subsequently made will not compromise the performance of the jet in a way that its capability to perform the required missions diminishes.

4. Cabin Air Quality and Filtration

Justifiably, in the light of Covid-19, passengers have expressed concerns about the air quality and recirculation of cabin air aboard business aircraft. A system that is able to eliminate any pollutants and bacteria is important – not only during a time of pandemic, but at any other time for owners and operators who are serious about the health and wellbeing of passengers. The leading solutions in the industry include systems able to completely refresh cabin air every two

to three minutes, helping ensure virus particles do not endure. Additionally, air ionization and purification systems that are applicable for all aircraft types are being introduced. Aviation Clean Air (ACA) offers an FAAcertified system that improves air quality, eliminates odors and neutralizes pathogens in the air. And best of all, ACA’s product complements products already installed on aircraft, such as HEPA filtration and cabin air flow solutions offered by the OEMs and third-party vendors.

Build a Scorecard

It is a sound idea for prospective aircraft buyers to build a scorecard system that allows you to review a number of different cabin comfort metrics side-byside. This will help either identify the aircraft offering the most optimized cabin for passenger wellness, or establish your exact modification and upgrade needs aboard the aircraft you purchase. Naturally, items like In-Flight Connectivity and Entertainment – which both also play a big role in passenger comfort and wellbeing – should feature, though they were not the primary focus of this article. Ultimately, optimizing passenger comfort and wellbeing is a multi-faceted, but also very specific challenge, depending on an owner/operator’s trip requirements. A firm grasp of your mission needs and a comprehensive scorecard will help you get to grips with what exactly will be required of your aircraft’s cabin space. T

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

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Values Intro JUNE.qxp_Finance 21/09/2021 12:52 Page 1

VALUES - MID-SIZE JETS

AVBUYER.com

Business Aircraft Values: Mid-Size Jets Of all the business jet

categories, none does more to balance

capability with utility

than the Mid-Size Jet segment; and no

segment provides

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

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

Medium Jet Price Guide

The following Mid-Size Jet Average Retail Price Guide represents current values published in the Aircraft Bluebook–Price Digest. The study spans model years from 2002 through Fall 2021. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Cessna Citation Latitude values reported in the Fall 2021 edition of the Bluebook show $10m for a 2016 model, $9.5m for a 2015 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration.

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VALUES - MID-SIZE JETS

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

2021 US$M

2020 US$M

2019 US$M

2018 US$M

2017 US$M

17.0

16.0

14.5

13.0

2016 US$M

2015 US$M

2014 US$M

12.0

11.5

2013 US$M

2012 US$M

MODEL BOMBARDIER CHALLENGER 350

26.7

12.5

BOMBARDIER CHALLENGER 300 BOMBARDIER LEARJET 75 LIBERTY BOMBARDIER LEARJET 75

9.9

8.5

13.8

9.0

BOMBARDIER LEARJET 70

10.5

10.0

7.0

6.25

5.75

5.25

4.75

4.25

3.75

6.0

-

4.75

-

3.75

3.25

2.75

BOMBARDIER LEARJET 60XR

3.4

9.5

3.2

BOMBARDIER LEARJET 60SE BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR

3.45

BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR

2.7

BOMBARDIER LEARJET 40 CESSNA CITATION X+

8.0

7.5

7.0

6.5

6.0

CESSNA CITATION X

5.0

CESSNA CITATION LONGITUDE

29.77

20.0

19.0

CESSNA CITATION LATITUDE

19.11

14.0

12.5

11.5

10.5

10.0

9.5

14.0

12.0

11.0

10.0

9.5

9.0

CESSNA CITATION SOVEREIGN+

8.5

CESSNA CITATION SOVEREIGN CESSNA CITATION XLS+

14.64

8.0 7.2

6.9

5.7

5.5

9.8

9.0

8.2

7.7

7.2

6.7

6.2

18.0

15.0

14.0

13.0

12.0

11.0

10.0

13.0

12.0

11.0

10.0

9.0

15.0

14.0

13.0

12.0

11.0

10.0

9.0

6.5

6.0

5.5

5.0

4.6

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

20.99

19.0

17.0

EMBRAER PRAETOR 500

16.99

15.0

14.0

GULFSTREAM G280

24.5

18.0

16.0

GULFSTREAM G200 GULFSTREAM G150 GULFSTREAM G100 HAWKER 4000

3.6

HAWKER 900XP

5.0

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

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What your money buys today

Fall 2021 2011 US$M

2010 US$M

2009 US$M

2008 US$M

2007 US$M

8.5

8.0

7.5

7.0

2006 US$M

2005 US$M

2004 US$M

2003 US$M

6.0

5.5

5.0

2002 US$M

MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 350

9.0

6.5

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

3.0

2.8

2.6

2.4

2.2 2.2

BOMBARDIER LEARJET 60XR 2.0

1.9

1.8

BOMBARDIER LEARJET 60SE 1.7

3.25

2.5

3.05

2.3

2.85

2.1

2.65

1.9

2.45

2.25

2.05

1.85

1.65

2.0

1.8

1.6

1.4

1.3

1.7

1.4

1.2

1.3

1.1

1.05

1.6

BOMBARDIER LEARJET 60 BOMBARDIER LEARJET 45XR

1.2

BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR

0.95

BOMBARDIER LEARJET 40 CESSNA CITATION X+

4.5

4.0

3.5

3.0

2.6

2.4

2.2

2.0

1.8

1.6

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

6.6

6.2

5.8

5.5

5.3

5.1

4.9

4.7

4.3

4.1

5.2

4.9

4.6

4.3

3.9

3.7

3.5

3.3

CESSNA CITATION SOVEREIGN CESSNA CITATION XLS+

4.5

4.3

4.1

CESSNA CITATION XLS

3.0

2.9

2.8

CESSNA CITATION EXCEL

3.9

3.7

3.5

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

5.4

5.0

4.6

4.2

3.8

3.6

4.1

3.8

3.4

3.0

2.7

2.4 2.4

3.2

3.0

2.8

2.6

2.2

2.0

1.8

1.6

GULFSTREAM G200 GULFSTREAM G150 GULFSTREAM G100

3.4

3.2

2.8

2.6

HAWKER 4000

4.5

4.0

3.6

3.2

HAWKER 900XP

2.8

2.5

2.3

2.0

HAWKER 850XP (PRO LINE) 1.7

HAWKER 800XP/XPi (PRO LINE) 1.6

2.8

2.3

1.9

1.5

1.4

HAWKER 800XP

1.6

HAWKER 750

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AirCompAnalysis.qxp_ACAn 21/09/2021 15:00 Page 1

JET COMPARISON

GULFSTREAM G200

DASSAULT FALCON 2000

Jet Comparison:

Dassault Falcon 2000 vs Gulfstream G200 In this month’s Aircraft Comparative Analysis, Mike Chase provides information on a pair of popular pre-owned Super Mid-Size business jets. How will the Dassault Falcon 2000 compare with the Gulfstream G200?

O

ver the following paragraphs, we’ll analyse the performance of the Dassault Falcon 2000 and Gulfstream G200 to see how they compare in the market. We’ll consider productivity parameters (including payload, range, speed, and cabin size), and give consideration to their current market values. Accounting for the used pricing of the two featured jets, how much additional range, speed, and cabin volume would an extra $1.9m purchase? This is one of the questions we will seek to answer…

Dassault Falcon 2000

Dassault originally introduced the Falcon 2000 as the Falcon X in 1989. First flight came four years later in 1993, and the aircraft entered service in 1995. The twin-engine Falcon 2000 is a slightly smaller development of the Falcon 900 tri-jet, with transcontinental range. It features a large stand-up cabin, General Electric CFE738-1-1B engines, and a Collins Pro Line 4 integrated avionics suite. At the time of writing, there were 221 Dassault Falcon 2000 business jets in operation worldwide, seven of which were in shared ownership arrangements, and five in fractional ownership

90  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

programs. Ten aircraft have been retired. Geographically, 80% of the Falcon 2000 fleet is based in the US.

Gulfstream G200

The IAI 1126 Galaxy first flew on Christmas Day, 1997, and deliveries began in 1999. Powered by a pair of 5,700lbst Pratt & Whitney Canada PW306 powerplants, this model was designed to seat 8 to 10 passengers in a stand-up cabin. In May, 2001 General Dynamics (GD) announced the acquisition of Galaxy Aerospace from Israel Aerospace Company (IAI) which included the type certificates for the entire family of aircraft. When the deal closed, GD placed the family of aircraft with Gulfstream, renaming the IAI 1126 Galaxy the Gulfstream G200. Ten years later, the final G200 rolled off the production line in 2011, after 250 units had been built. The Gulfstream G280 replaced it, with deliveries beginning in 2012. At the time of writing, there were 237 Gulfstream G200 business jets in operation worldwide, 14 of which were in shared ownership arrangements. Thirteen G200s have been retired. Geographically, 76% of the Gulfstream G200 fleet is based in the US. www.AVBUYER.com

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AirCompAnalysis.qxp_ACAn 22/09/2021 09:44 Page 2

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DASSAULT

GULFSTREAM

Falcon 2000

(2006 Model)

(Produced 1999 to 2012)

HOW MANY

8

$5.5 Million

G200

vs.

(Produced 1995 to 2007)

10

EXECUTIVE

SEATS

$3.6 Million (2006 Model)

WHICH OF THESE SUPER MID-SIZE JETS WILL COME OUT ON TOP?

HOW FAR

PAYLOAD

CAN WE GO?

CAN WE TAKE?

4 Pax with Available Fuel Dassault Falcon 2000 3,052nm 3,367nm

Gulfstream G200

HOW MANY

UNITS IN

OPERATION?

237

WHAT’S THE

HOW MUCH

5,910

Dassault Falcon 2000 Gulfstream G200

(Lbs)

4,000

CRUISING SPEED?

417

Dassault Falcon 2000

430

Gulfstream G200

WHAT’S THE

EACH MONTH?

PER HOUR?

3 (6.3%)

COST

3 (8.4%) Dassault Falcon 2000

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

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(Knots)

HOW MANY

USED JETS SOLD

222

LONG RANGE

(% = Global Fleet For Sale)

Gulfstream G200

$2,199

$1,643

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AirCompAnalysis.qxp_ACAn 21/09/2021 15:01 Page 3

JET COMPARISON

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Table A - Payload Comparison

Payload Comparison

A potential operator should focus on payload capability as a key factor, as depicted in Table A (left). The Falcon 2000’s ‘Available payload with Maximum Fuel’ (1,096lbs) is significantly more than that offered by the Gulfstream G200 (600lbs).

Dassault Falcon 2000 Gulfstream G200

35,800 35,450

12,154 15,000

MTOW (lb)

Max Fuel (lb)

Source: OEMs, B&CA

5,910

4,000

Max Payload (lb)

1,096

1,411

600

Avail Payload w/Max Fuel (lb)

Cabin Cross Section Comparison

2,371

Max Payload w/Avail Fuel IFR Range (nm)

1,312

Chart A - Cabin Comparison Gulfstream G200

6.2 ft

6.25 ft

Dassault Falcon 2000

7.7 ft

7.2 ft

Source: UPCAST JETBOOK

Chart B - Range Comparison Dassault Falcon 2000 Gulfstream G200

3,052 (nm) 3,367 (nm)

J

4 Pax w/avail fuel 4 Pax w/avail fuel

The Falcon 2000’s cabin volume is 1,028cu.ft. By comparison, the Gulfstream G200 has less cabin volume, at 868 cu.ft. Chart A (left), courtesy of UPCAST JETBOOK, offers a cabin cross-section comparison and shows the Falcon 2000 has more width than the Gulfstream G200 (7.7 ft. vs 7.2 ft.), but marginally less cabin height (6.2 ft. vs 6.25 ft). However, the Falcon 2000 cabin offers a flat floor design, unlike the Gulfstream G200. Not depicted in the chart, the Falcon 2000’s cabin length is greater at 31.2ft, compared to 24.5ft aboard the G200. Meanwhile, the Falcon 2000 provides less luggage volume (with no space internally, and 134 cu.ft. externally) compared to the Gulfstream G200 (25 cu.ft. internally, and 125 cu.ft. externally). It’s worth noting that despite its smaller cabin volume, the Gulfstream G200 provides a higher seating capacity (ten vs. eight in executive configuration).

Range Comparison

Chart B (left), using Wichita, Kansas, as the origin point, shows that the Falcon 2000 offers less range coverage than the Gulfstream G200 (3,052nm vs 3,367nm), with both aircraft carrying four passengers and available fuel. Both jets can cover all of North and Central America, reaching into parts of South America. Note: For business jets, ‘Four Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a 200nm alternate. This range does not include winds aloft or any other weatherrelated obstacles.

Cost Per Mile Comparison

Source: Chase & Associates

92  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Chart C (overleaf) details ‘Cost per Mile’ and compares the Falcon 2000 to the G200, factoring direct costs and with each aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload. The Gulfstream G200 shows the lowest cost per nautical mile at $4.52 compared to $5.81 for the Falcon 2000 – a difference of $1.29 (22.2%) in favor of the Gulfstream G200.

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AirCompAnalysis.qxp_ACAn 21/09/2021 15:02 Page 4

JET COMPARISON

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Total Variable Cost

Chart C – Cost Per Mile Comparison

Falcon 2000

The ‘Total Variable Cost’ illustrated in Chart D (middle, left) is defined as the Cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The Total Variable Cost for the Falcon 2000 computes at $2,199 per hour, which is significantly greater than the Gulfstream G200 at $1,643 per hour.

$5.81

Gulfstream G200

$4.52 $2.00

$0

$4.00

Market Comparisons

Table B (bottom, left) contains the pre-owned prices from Aircraft Bluebook for each aircraft. The average speed, cabin volume and maximum payload values are from B&CA, while the number of aircraft inoperation and percentage ‘For Sale’ are as reported by JETNET. The Falcon 2000 has 6.3% of its fleet currently ‘For Sale’, while 8.4% of the Gulfstream G200 is on the market. The average number of pre-owned transactions (sold) per month for the Falcon 2000 and Gulfstream G200 is three units each. The year 2006 was the last year that the Falcon 2000 was built and should provide a good basis for pre-owned comparison. As shown in Table B, there is a difference of $1.9m between the price of a 2006 model Falcon 2000 ($5.5m) and a 2006 model G200 ($3.6m).

$6.00

US $ per nautical mile * Based on a 1,000nm mission

Source: JETNET

S

Chart D – Variable Cost Comparison

$2,199

Falcon 2000 Gulfstream G200

$1,643 $0

$1,000

$1,500

$2,000

Future Residual Values Projection

Meanwhile, Chart E (overleaf) displays current and future residual value for the next five years (from the time of writing), courtesy of Asset Insight, LLC. While both the Gulfstream G200 and Dassault Falcon 2000 jets show declining future residual values, the Falcon 2000 is projected to depreciate by $2.417m (39.7%), while the Gulfstream G200 is expected to depreciate by $1.657m (40.9%).

$2,500

US $ per hour

Source: JETNET

Table B - Market Comparison Table

CONTRAST,

Gulfstream G200

430

Long Range Cruise Speed (Kts)

COMPARE,

Falcon 2000

417

J

1,024

868

Cabin Volume Cu Ft

3,052 3,367 4 Pax w/Avail Fuel IFR Range (nm)

$3.6 $5.5 Used Bluebook Price (2006 Model) $USm

*Average Full Sale Transactions in the past 12 months; Source: JETNET Data courtesy of Aircraft Bluebook, B&CA ; JETNET

94  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

222

237

In Operation

6.3% 8.4% % For Sale

32

3

Used Average Sold per Month*

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0%

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The Private Jet Company October.qxp_Layout 1 21/09/2021 12:47 Page 1

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AirCompAnalysis.qxp_ACAn 22/09/2021 09:45 Page 5

JET COMPARISON

Chart E – Future Residual Value 2021 - 2026

Asking Prices & Quantity

The current used jet market for the Dassault Falcon 2000 shows a total of 15 aircraft ‘For Sale’, with six displaying an asking price ranging from $2.695m to $7.6m. We also reviewed the used Gulfstream G200 market and found 14 aircraft ‘For Sale’, with three displaying asking prices ranging between $2.695m and $6.695m. Chart F (middle, left) shows the current Market Price ranges for both business jets, with the data being sourced from JETNET. While each serial number is unique, the Airframe (AFTT) hours and age/condition will cause great variations in price. Of course, the final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.

Depreciation Schedule Source: Asset Insight

Chart F – Pre-Owned Market Price Ranges 2.500

Index *

2.000

Falcon 2000 1995 - 2006

1.500 1.000

Gulfstream G200 2000 - 2011

0.500 0.000 $0.0

$4.0

$2.0

$6.0

$8.0

$10.0

Price Ranges ( millions) (Index = Speed x Range x Cabin Volume / 1,000,000,000) Source: JETNET

Table C - Dassault Falcon 2000 MACRS Depreciation Schedule 2006 Dassault Falcon 2000 - Private (Part 91) Full Retail Price - Million $5.50m Year

Rate (%)

Depreciation ($M)

Depreciation Value ($M) Cum. Depreciation ($M)

1

2

3

4

5

20.0%

32.0%

19.2%

11.5%

11.5%

$4.4

$2.6

$1.6

$1.0

$0.3

$1.1 $1.1

$1.8 $2.9

$1.1 $3.9

$0.6 $4.5

$0.6 $5.2

6

5.8% $0.3 $0

$5.5

2006 Dassault Falcon 2000 - Charter (Part 135) Full Retail Price - Million $5.50m Year

1

2

3

4

Rate (%)

14.3%

24.5%

17.5%

12.5%

Depreciation Value ($M)

$4.71

$3.37

$2.41

$1.72

Depreciation ($M)

Cum. Depreciation ($M)

$0.79 $0.8

$1.35 $2.1

Source: Aircraft Bluebook

96  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

$0.96 $3.1

5

8.9%

6

8.9%

7

8.9%

8

4.5%

$0.69

$0.49

$0.49

$0.49

$0.25

$3.8

$4.3

$4.8

$5.3

$5.5

$1.23

$0.74

$0.25

$0.00

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period. In certain cases, 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 are a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period or under ADS using a twelve-year recovery period. Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a 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 (left) depicts an example of using the MACRS schedule for a 2006-model Dassault Falcon 2000 business jet in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail price of $5.5m, per Aircraft

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AirCompAnalysis.qxp_ACAn 21/09/2021 15:04 Page 6

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Bluebook Autumn 2021 data. Table D (right) depicts an example of using the MACRS schedule for a 2006model Gulfstream G200 business jet in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail price of $3.6m, per Aircraft Bluebook Autumn 2021 data.

Productivity Comparisons

The points in Chart G (right) are centered on the same aircraft. Pricing used in the vertical axis is as published in the Aircraft Bluebook Autumn 2021 data. 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:

2. 3.

2006 Gulfstream G200 - Private (Part 91) Full Retail Price - Million $3.60 Year

Summary

Within the preceding paragraphs we have touched upon several of the attributes that

20.0%

Depreciation ($M)

Depreciation Value ($M) Cum. Depreciation ($M)

$0.7

2

5

19.2%

11.5%

11.5%

$1.7

$1.0

$0.6

$0.2

$1.2

$2.9 $0.7

$1.9

$0.7

$0.4

$2.6

$3.0

$0.4 $3.4

6

5.8% $0.2 $0

$3.6

Full Retail Price - Million $3.60 Year

1

2

3

4

Rate (%)

14.3%

24.5%

17.5%

12.5%

Depreciation Value ($M)

$3.09

$2.20

$1.57

$1.12

Depreciation ($M)

Cum. Depreciation ($M)

$0.51 $0.5

$0.88 $1.4

$0.63 $2.0

5

8.9%

6

8.9%

7

8.9%

8

4.5%

$0.45

$0.32

$0.32

$0.32

$0.16

$2.5

$2.8

$3.1

$3.4

$3.6

$0.80

$0.48

$0.16

$0.00

Source: Aircraft Bluebook

Chart G - Productivity Comparison $10.0 $8.0

2006 Falcon 2000

$6.0 $4.0

2006 G200

$2.0 $0.0 0.000

0.500

1.000

1.500

2.000

2.500

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

business aircraft operators value. There are other qualities such as airport performance, terminal area performance, and time to climb that might factor in a buying decision. The used Falcon 2000 and Gulfstream G200 show good monthly full retail sale transactions, averaging three units per

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

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4

3

32.0%

2006 Gulfstream G200 - Charter (Part 135)

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

Others may choose different parameters, but serious business aircraft buyers are usually impressed with Price, Range, Speed and Cabin Size. After consideration of the Price, Range, Speed and Cabin Size, we can conclude that the Falcon 2000 displays a high level of productivity, which comes at a cost. The Dassault Falcon 2000 shows a higher retail price (comparing 2006 preowned models), but offers greater productivity compared to the Gulfstream G200. The Gulfstream G200 has a very large operating cost advantage, and longer range than the Falcon 2000. But the Falcon 2000 offers a greater cabin volume and a much higher payload with full fuel capability. Operators should weigh up their mission requirements precisely when picking which option is the best for them.

1

Rate (%)

Prices (millions)

1.

Table D - Gulfstream G200 MACRS Depreciation Schedule

month, and are clearly still very popular models on the pre-owned market. Operators in the market should find the preceding comparison useful. Our expectations are that both business jets will continue to do well on the market for the foreseeable future. T

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AVBUYER MAGAZINE  Vol 25 Issue 10 2021 

97


Flight Dept 1.qxp_Finance 21/09/2021 11:58 Page 1

FLIGHT DEPARTMENT MANAGEMENT

How to Link an Aircraft's Pedigree to its Logbooks

98  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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Flight Dept 1.qxp_Finance 21/09/2021 11:59 Page 2

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What do an aircraft’s logbooks convey – both actually, and subliminally? Andre Fodor shares tips on reading and keeping excellent records that tell the true story of an aircraft’s history… enjoyed eighteen exciting years working in the Fractional Ownership industry at a time that it was just getting established. In those early days, we experienced rapid, daily growth. The Federal Aviation Regulations were yet to be written, and fractional flights – for the lack of rules – operated under FAA Part 91 rules. The company I worked for also held a charter certificate, and we double-dipped back and forth into both worlds. It was exciting, chaotic, and highly intense work. Joining the fractional industry as an entry-level pilot, I climbed the ladder to become an operations manager, progressing through every operational position along the way. Supervisors and mentors provided unrestricted learning as long as results were produced. Years later, I joined a very different company, tasked with setting up and managing my first large cabin business jet operation. As well-equipped as I felt for the role, I soon realized there was still much to learn. Though I had a solid base in aircraft operations, I lacked experience in maintaining records and scheduling maintenance. When new to aircraft management it’s natural to over-focus on the operation of the aircraft. There is so much to do during the start-up phase, with letters of authorization to obtain and so many other details. Because of this, aircraft logs, and the scheduling of maintenance can be relegated down the list of priorities unless there is a maintenance professional focused on those tasks. According to industry data, the majority of flight operations comprise of two pilots, with one being assigned in the lead role. Thus, it is important to consider this brief primer on logbook management, designed to help stay legal and organized.

I

Don’t Underestimate Your Aircraft’s Logbooks

The importance of an aircraft’s logs cannot be understated: They are simply the most important asset beyond the aircraft itself, containing the airplane’s ‘birth certificate’, life story, and pedigree. The quality of your aircraft’s records, and its upkeep, will directly affect the value, re-sale and time on the

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market of any pre-owned aircraft for sale. When accepting an aircraft, whether new or preowned, logbooks provide information of the quality of the asset. Though a brand new aircraft’s logbook will naturally have fewer entries, it will provide insights into the build process and certification. Here, you will discover if something got “dinged” during production, or if there were snags with the engines or systems that required extra hours of certification flights or production rework. For a pre-owned aircraft, the logbooks will tell you the airplane’s bad behaviors and peculiarities. Was it a ‘hangar queen’? Has a specific system had multiple failures? Who maintained the airplane and how (i.e. was it maintained at one of the OEM’s service centers, by a major maintenance provider, or at the cheapest shop in town)? The records will answer all of your questions. Logbooks also tell you about the management and maintenance upkeep of an aircraft. Was it completed in a timely fashion, with work performed at, or before the due times and dates? Did the previous owners use the Minimum Equipment List to stretch operations? What type of parts and components have been used to repair the aircraft?

The Subliminal Elements of Logbook Entries

The physical presentation of an aircraft’s logbooks can tell many stories to the attentive reader. For example, a well-organized logbook will indicate care and pride of ownership. Moreover, sampling the write-ups and the wording used on sign-offs is telling. The language used should protect the aircraft‘s pedigree, and explain repairs in detail. So, a write-up stating that a system acted intermittently ought to describe the steps taken to troubleshoot and repair the malfunction, giving assurance that due diligence was exercised in identifying the problem. Also pay attention to repeated ‘no-fault-found’ sign-offs. This can be an indicator of multiple part swaps in an attempt to get the airplane to function properly. It’s not unknown to find multiple logbook entries with the same write-up, with parts replacements occurring so frequently that the originally-removed serial number is reinstalled into the aircraft at a later date – a carrousel of parts replacement.

Electronic Records – Advantages and Warnings

With the advent of electronic record-keeping, our task to document and access maintenance history has become easier - but don’t confuse ‘easier’ with ‘simpler’. Bad data input will still result in bad data output.

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FLIGHT DEPARTMENT MANAGEMENT

On the plus side, electronic record-keeping has allowed efficient management of maintenance due dates, inspections, service bulletins and airworthiness directive compliance, and I have been able to run a monthly report flagging tasks coming due. (My challenge has been to organize these into one single maintenance event, since due dates do not all align.) Be aware, however, that electronic records are still prone to data entry errors. Efficient management to avoid this adds another step in the record-keeping process. If you are the Director of Maintenance for an aircraft, it is your responsibility to verify the entries are acceptable and correct BEFORE they become part of the permanent record, and are transmitted to the E-records provider. Understanding the purpose of each write-up will help you verify that the sign-off satisfies it. Entries must be clearly written, signed, dated, and display the license number of the mechanic or QA inspector. E-records provide ready accessibility and

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transportability of records, but attention to keeping the data accurate and true is essential. And remember, you will still keep the paper entries.

No Substitutes for Logbook Keepers

I won’t claim that I did an outstanding job when acting as my own Director of Maintenance (DOM). Realizing my limitations, though, I hired an experienced auditor to hold my hand and avoid any major oversights. Ultimately, there is no substitute for a professional, experienced DoM in record keeping who knows the maintenance mandates. Hiring hands-on experience in aircraft maintenance and logbook administration increases your knowledge and insight to the quality of an aircraft. Whenever you can, accompany the mechanic during their work and enhance your own understanding. Learn how they read and interpret the paperwork. This is a valuable opportunity for you to become a more effective administrator, adding a new skillset to your bag of managerial tricks. T

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

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Flight Dept 2.qxp_Finance 21/09/2021 12:03 Page 1

FLIGHT DEPARTMENT MANAGEMENT

Tips for Incorporating a Jet into your Flight Department (Part 1)

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Mario Pierobon explores the principles for managing a change of aircraft in the flight department, along with the crew training aspects and other key considerations needed for a well-managed process. he Business Aviation industry has experienced almost unprecedented growth of late, and the pre-owned business jet and turboprop inventory has hit an all-time low. With several owners making their first forays into business aircraft ownership, the number of business jet owners and operators has been increasing – a trend that is expected to continue for the time being. In the context of fleet expansion, what are the challenges of incorporating new aircraft types into the fleet and how can these be managed? According to the International Civil Aviation Organization’s (ICAO's) Safety Management Manual (SMM) (Document 9859), the introduction of new technology or equipment – such as a new aircraft type – is likely to trigger formal change management with an organization’s safety management system (SMS). “Change may affect the effectiveness of existing safety risk controls,” ICAO’s SMM says. “In addition, new hazards and related safety risks may be inadvertently introduced into an operation when change occurs. Hazards should be identified, and related safety risks assessed and controlled as defined in the organization’s existing hazard identification or safety risk management (SRM) procedures.”

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Management of Change

The change management process within the SMS needs to be a formal and documented process. According to ICAO’s SMM, the process should include understanding and defining the change, and who and what the change will affect. Hazards related to the change should be identified, and a safety risk assessment executed. An action plan should be prepared, and signed-off on. Understanding and defining the change, the action plan should outline the change and why it is being implemented, as well as who and what the change will affect. “Equipment, systems, and processes may also be impacted,” ICAO’s SMM highlights. “A review of the system description and organization’s interfaces may

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be needed. This is an opportunity to determine who should be involved in the change. “Changes might affect risk controls already in place to mitigate other risks, and therefore change could increase risks in areas that are not immediately obvious.” Hazard identification and risk assessment should identify any hazards directly related to the change. “The impact on existing hazards and safety risk controls that may be affected by the change should also be reviewed. This step should use the existing organization’s SRM processes,” ICAO’s SMM notes.

What are the Key Considerations?

Before incorporating an aircraft type which was not previously operated by the flight department, from a flight operations management point of view the first consideration must be to verify the inter-operability between the types of aircraft already owned or operated and the new one. Fleet Technical Management specialist Sara Zerbini clarifies, “The new type can complement an existing fleet; it can replace an existing type; or simply be an addition of type.” From a safety point of view, it should be determined whether it’s even safe to fly the new aircraft for the types of operations that are required by the operation, Zerbini says – particularly where complex missions are concerned, or those requiring specific approval. Continuing Airworthiness Surveyor Wolter Portier highlights further important aspects for consideration, including checking whether the type training and simulator training organizations have the right approvals, and establishing who will deliver the training and conduct the examinations. “Moreover, are the operations manuals updated, and are they approved by the competent authority with the new aircraft type?” Portier asks. “And, is the air operator certificate (AOC) updated with the new type?” Another consideration relates to personnel change. “It is important to ascertain whether personnel have already operated the aircraft type, possibly within other flight operations in the past,” Zerbini says. If this is the case, it’s likely that the flight department will be able to start operations with the new aircraft more quickly, perhaps without the need to fully train everyone. The advantage, Zerbini says, is reduced inactivity of personnel waiting for the flight crew to qualify to operate the new aircraft type. “Do you already have enough qualified pilots to make a conversion training possible without jeopardising the current flight operations?” asks Portier. “Do the current flight crew have experience

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with an equivalent aircraft type? The answer to these questions could shorten or extend the specific type training for the new aircraft.”

Crew Training

When managing a change of aircraft within the flight department, it is important to begin with the fact that any new type requires a new format of flight crew training. “It can be the case that instructors are not sufficiently briefed beforehand on what format would be best,” says Thomas Fakoussa, a leading Human Factors and Crew Resource Management Trainer. “The best training format fits with the operator’s previous training and company culture, as well as the manufacturer’s intention of making use of the different systems,” he adds. “Too often, though, the training provider only learns that the training should offer certain aspects within the simulator or line training after the new aircraft type has been incorporated, and operated for a while, with the crews experiencing difficulties.” From a training development point of view, a best practice is to first analyse what is different in

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the new type’s cockpit and systems philosophy. “When does the trim work automatically?” Fakoussa asks. “Sometimes this may not even be visible or audible to the crew. “What is the visible information on the screens actually measuring, and what is it depicting? Sometimes it’s important to know in advance which computer interferes with what, and what must be inputted manually.” Moreover, is the planned training intensive enough on the differences between the new and existing aircraft? “Habits can be extremely dangerous if they are only valid in certain situations or system characteristics,” Fakoussa warns.

Summing Up

As we’ve seen, the introduction of a new aircraft type in the flight department requires a formal management of change. Having covered the main considerations and crew training aspects here, Part 2 will consider the maintenance and airworthiness management aspects; the challenges specific to handling newer levels of technology; and the need for a safety assessment, action plan, and safety assurance. T

MARIO PIEROBON is a safety management consultant covering both fixed- and rotary-wing operations. He writes broadly on safety-related topics, with expertise of air operations and crew training safety regulations. As a consultant, Mario helps companies improve procedures. His knowledge of safety is valued by several industry-leading publications, including AvBuyer. More information from: https://www.linkedin.com/in/mario-pierobon-85991319/

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GE OnPoint October.qxp_Layout 1 23/09/2021 11:39 Page 1

We know your engine better because we designed it OnPoint engine maintenance program SM

GE’s OnPoint program provides the most comprehensive business jet engine coverage, including full risk transfer of your engine maintenance, support and diagnostics. Beginning on day one with 100% coverage,

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OnPoint ensures your aircraft retains the highest level of performance and residual value. No matter where you are in the world GE can tailor a solution to best suit your operating needs.


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MAINTENANCE

Valuing the Rolls-Royce CorporateCare Enhanced Program After Rolls-Royce established its latest CorporateCare Enhanced program within the Business Aviation community, Tony Kioussis examines the value of Rolls-Royce’s expanded coverage… uring the 2018 National Business Aviation Association (NBAA) annual NBAA-BACE conference, Rolls-Royce introduced CorporateCare® Enhanced, the company’s expansion of its highly-regarded, and widelyaccepted, CorporateCare Long Term Service Agreement (LTSA) or Hourly Cost Maintenance Program (HCMP). By expanding engine coverage to all maintenance and troubleshooting on the engine cowls, Thrust Reverser Units (TRUs), and engine build-up on the BR710, BR725 and the brand-new Pearl 15 engines, CorporateCare Enhanced has enrolled over 1,400 engines as of this writing. Now that the program has matured, this seemed

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like a good time to examine what additional value the coverage provides to new, as well as existing CorporateCare users who upgrade to CorporateCare Enhanced. Table A (opposite) notes the difference in coverage between what has historically been available through CorporateCare, versus what is now available through CorporateCare Enhanced. By far, the biggest value offered by CorporateCare Enhanced is the pro-active nacelle and TRU inspections, designed to mitigate disruption and the high cost of nacelle and TRU repair due to wear and tear or corrosion. By way of an example, suppose an aircraft unexpectedly requires repair to a Thrust Reverser Unit www.AVBUYER.com

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TABLE A: Program Coverage Differences Between CorporateCare and CorporateCare Enhanced!

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when the principal needs to use the asset. Table B (overleaf) details a typical cost range for corrosion repair for a single TRU, as well as the cost to provide alternative lift through four four-hour charter flights. While CorporateCare Enhanced would cover all of the listed expenses, CorporateCare would only cover between 10% and 21% of those costs. Appraisal firms have long held the position that, at least through the first Scheduled Shop Visit, Long Term Service Agreements that fully cover the cost of Scheduled Maintenance increase an aircraft’s value by the amount of the Buy-In Fee for an uncovered aircraft that has accrued the same number of Flight Hours and Cycles. Accordingly, while warranty provides potentially valuable Unscheduled Maintenance coverage during the aircraft’s early years of service, the asset’s value is concurrently being favorably impacted through CorporateCare Enhanced coverage.

Individual Covered Services

In valuing CorporateCare Enhanced, we also need to account for the individual covered services (detailed in Table A) to estimate the total additional value www.AVBUYER.com

available through program coverage. That figure might surprise a few people, as our analysis concluded the number equates to over $758,000 per year, excluding the unquantifiable (and possibly quite substantial) value for Engine and Nacelle Recommended Services Bulletin Support. Keeping in mind the flight hour rate differential between CorporateCare and CorporateCare Enhanced is only about $100 per engine flight hour, the additional $80,000 in annual fees (assuming 400 annual flight hours) creates a value 9.5 times the additional cost for Enhanced coverage. Furthermore, that value does not take into account two related, additional financial benefits: 1)

Our valuation did not include any improvement to a financed aircraft’s loan (or lease) terms based on the security CorporateCare Enhanced enrolment provides to the financing entity. While each financial institution has its own approach for valuing Hourly Cost Maintenance Program coverage, a reduction of 0.125% in the finance rate for a $50m asset can result in substantial financing savings for the aircraft’s owner.

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Maintenance 1.qxp_Finance 22/09/2021 10:05 Page 3

MAINTENANCE

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In Summary…

When it comes time to replace an aircraft, statistics have demonstrated that assets enrolled on engine Hourly Cost Maintenance Programs tend to sell quicker than those not covered by a Program. Months of holding costs can substantially impact the owner’s economics, especially during periods of rapidly falling market values.

By covering repair and replacement costs, and introducing key proactive nacelle-specific Service Bulletins and spares support during downtime, CorporateCare Enhanced has beyond doubt dramatically increased the value, and significantly improved the reliability, of enrolled aircraft.

If we include those two additional factors into our value equation, Chart A (below) graphically demonstrates the total value offered by CorporateCare Enhanced. Even during the engine warranty period, the fees paid for coverage are less than the program’s total value.

Read more about Rolls-Royce CorporateCare Enhanced via: www.rolls-royce.com/products-and-services/ civil-aerospace/aftermarket-services/businessaviation.aspx T

CHART A: CorporateCare Enhanced – Total Value Secured vs Program Cost

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

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Refurbishment 1.qxp_Finance 22/09/2021 13:52 Page 1

REFURBISHMENT V Illuminated Surface System by F/LIST (Courtesy of Heath Moffatt Skies Magazine)

What are the Latest Cabin Refurbishment Trends in BizAv?

AvBuyer’s Matt Harris spoke with F/LIST recently, where

Melanie Prince and Markus Schröcker shared insights on

trends in the Business Aviation cabin refurbishment sector… othing ever stays still in the cabin refurbishment industry. Of course, that shouldn’t come as a surprise. The needs and requirements of passengers flying today’s business jets are already high, and continues to grow. With today’s top business jets capable of flying almost 8,000 nautical miles non-stop, necessitating more time spent in the cabin, there’s an obvious need for enhanced passenger comfort. And with today’s travellers expecting to step aboard an airplane and be as productive and connected to the world as they would on the ground, the Business Aviation industry is forever pushing the boundaries of possibilities, striving to create new hardware, software, furniture, and materials that achieve those requirements in increasingly impressive ways. One of the leading players in the refurbishment

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industry is F/LIST. Headquartered in Austria, the company has a presence in Canada, Germany, Brazil, UK, United Arab Emirates and increasingly the United States, and has undertaken several high-end aircraft cabin refurbishment projects in the past. However the company doesn’t just source the products from other suppliers: it creates some truly innovative solutions itself, as Canadian aerospace professional Melanie Prince will attest to. With over 20 years of experience in business jet interiors, Melanie is the Head of Innovations at F/LIST, guiding the research and development team towards creating the next generation of unique and innovative cabin interior products. Joining her in a recent interview with AvBuyer on the latest cabin refurbishment trends in BizAv was Markus Schröcker, an Austrian aerospace professional with over 15 years of experience in www.AVBUYER.com

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Business Aviation. Markus has been part of the F/LIST team since 2016, and today is Group Director for Customer Relations and Sales in the Aftermarket Business Unit. Here’s what Melanie (MP) and Markus (MS) had to say about the industry today… AvBuyer: What is popular when it comes to cabin refurbishments in Business Aviation today? What are you finding clients request regularly, and why? MS: That’s very hard to narrow down, since every customer has their unique requirements – whether they just want to keep their cabin in mint condition and wish to fix a minor defect, or they have just bought a pre-owned jet and want to transform and personalize the cabin experience. Generally, though, across all the industries we serve, we see a growing appreciation for real www.AVBUYER.com

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craftsmanship, and owners tend to follow trends they are seeing – whether it is new aircraft interiors introduced to the market by the OEMs, or other trends in furniture and fashion. AvBuyer: There are elements today that didn’t seem to factor in product selection so much in the past (i.e., sustainability/environmentally-friendly, and vegan-friendly products). Can you tell us more about these? Will they grow in their influence on product development within the refurbishments and completions sector? MP: Firstly, we welcome the recent commitments made by several manufacturers, operators, and completion centers concerning environmental responsibility. Consequently, we have been very active in developing new, more sustainable cabin interior components, meeting the applicable

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REFURBISHMENT

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 PC-24 with syntec flooring in the entryway (photo courtesy of Pilatus)

demand for interiors reflecting simplicity and timelessness. Any new materials that are very innovative while simultaneously making an interior timeless are extremely impressive. With emerging manufacturing techniques and new material availability, there is a world of opportunity at our feet. The most stunning materials we have seen are those currently being developed in our R&D Labs. These are not quite ready for prime time, but I can’t wait to tell you all about them soon! AvBuyer: F/LIST is known for developing exciting new products and materials for use in Business Aviation refurbishments – particularly in the areas of flooring and lighting. Can you tell us more about these, and why they’re popular with customers?

airworthiness requirements while offering a uniquely refreshing look in the cabin. We estimate that the demand for such products will grow significantly, as long as they are seen as a unique and attractive feature, and do not compromise on quality. Our market segment is historically attracted to natural products, and we aim to help our customers rediscover the beauty of sustainably sourced, naturally-produced materials. AvBuyer: Cabin refurbishments is one of those areas of the Business Aviation industry that doesn’t stand still. Trends evolve, and the dizzying array of products on offer to business jet owners is forever expanding. What products are on the horizon that are catching F/LIST’s eye, and why? MP: As you say, trends in our industry evolve at a dizzying pace, but there has always been a steady 112  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

MS: Just ask yourself, when was the last time you were in a bathroom that had a carpeted floor? I certainly can’t remember the last time I was. It is understandable that our hard flooring solutions are becoming so popular within the industry. We continuously expand our offering to provide a solution for every size and budget. Just recently, for example, we added the syntec and ceramic options, which come with a lower price tag than our real stone floor, but they still deliver all the benefits, and are easily installed. Also, more and more customers are looking for unique methods of setting mood lighting, beyond general colorful LED cabin lighting. Our illuminated stone countertops are a perfect example for helping them achieve this in a truly unique way. Together with our customers and R&D team, through the illuminated countertops, we developed a product which hasn’t been available on the market for a business jet cabin before. The feedback has been amazing.

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TAE October.qxp_Layout 1 21/09/2021 12:54 Page 1

Engage the power of TAE Aerospace For over 30 years, TAE Aerospace has been supporting TPE331 engine operators worldwide with first-class maintenance, repair and overhaul services. Commercial and military operators have come to rely on TAE Aerospace to maximise the performance of their TPE331 engines and minimise the impact on aircraft availability during routine and unplanned maintenance events. With Honeywell Authorized Service Centres across the globe, we are one of the world’s largest TPE331 engine service providers covering engines, LRU components, fuel controls and engine component repairs. With multiple Airworthiness Approvals from around the world, OEM correlated dynamometer test cells and prop stands for pre- and post-maintenance testing, vibration analysis and performance runs, we make sure you get the best from your TPE331. We deliver customer value by offering a high-quality service at a price that will reduce your maintenance cost. Contact one of our experienced team today. North America John M +1 (602) 881 1600 Mario

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REFURBISHMENT

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 The Cabin of an Embraer Lineage 1000E refurbished by F/LIST



AvBuyer: With so many exciting products, trends, and choices, how do you guide business jet owners in selecting a refurbishment that will not only meet their needs and demands for now, but continue to do so for several years to come? MS: Understanding and listening to customers’ needs and wishes is key. The perfect interior for a purely private-use aircraft will probably not be the best choice for an aircraft that is also being chartered, for example. On an aircraft that will see higher utilization, with more passengers moving through the cabin, we would recommend using more resilient products and materials, allowing the aircraft to age much better. Due to the wide range of products and materials, making a decision isn’t always easy for customers. Therefore, we narrow down this broad offering with the support of renderings before making their vision come to life. Since we, at F/LIST, constantly aim to innovate in every segment of our business, visualization is firmly a part of our roadmap. We’ll soon have some game-changing news to share with you. Stay tuned! More information from https://f-list.at 

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

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Refurbishment 2.qxp_Finance 21/09/2021 13:04 Page 1

REFURBISHMENT V A Cessna Citation Excel interior refurbishment undertaken by Elliott Aviation

How to Spend on an Older Jet Cabin Refurbishment Older business jets represent much of the market, fuelling demand for cabin refurbishments. But what should owners prioritize when considering such a project? Gerrard Cowan asks the experts… hile there are endless combinations of potential choices – based on the specific jet in question, its mission, and the owner’s wishes – the Business Aviation industry’s refurbishment experts point to a range of important considerations for the owner. Jet cabins typically require a refurbishment every seven to 10 years, according to Meghan Welch, Director of Paint and Interior Sales at Elliott Aviation. This is around the time when window panels, seats, carpet, cabinetry and other areas might need to be updated, addressing wear and tear, or to reflect changing trends and styles. “It not only helps the jet look like a newer aircraft for resale purposes, but it’s important for the owner’s personal enjoyment as well,” she notes. Such refurbishments “can go from mild to wild”, Welch adds, “depending on people’s personal or business choices and their short- and long-term goals with the aircraft”. Some owners will want to retain the aircraft for their own use, while others will have a resale in mind – and this will impact the scale of the refurbishment.

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Naturally, an experienced MRO center, or other specialist, will be able to offer specific advice.

Nicer Flying Experience

The first and most prominent benefit offered by refurbishment “is the overall nicer flying experience which a fresh-feeling cabin can provide”, says PärtelPeeter Kruuv, Interior Project Manager at MAC Aero Interiors. There’s also a financial aspect to consider, as “cracking leather on seats, wobbly tables, hazy lacquer on veneers, and other similar cosmetic faults…can easily affect the price at which the aircraft can be either rented, leased, or sold”. However, there are no hard-and-fast rules for adding value to an older jet through a cabin refurbishment, Kruuv says. The governing rules of the project will depend on the overall combination of features and items that work for a specific customer. Nevertheless, he notes that the customer base is highly knowledgeable, with a good frame of reference for the quality it expects to see in a cabin, so any “pre-sale refurbishment should always be www.AVBUYER.com

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thorough, without shortcuts”. If an owner is considering a refurbishment with a resale in mind, there could be other priorities before the cabin. For example, according to Thomas Chatfield, CEO of Camber Aviation Management, owners must first ensure their avionics are compliant with the relevant standards and regulations, “because if you don’t have that, it doesn’t matter how nice your interior is, the buyer will have the ability to strong-arm you on pricing”.

house sale. “If you walk into a house you want to buy and the carpet is threadbare, it doesn’t make you feel like the person is taking care of it,” he illustrates. A similar process applies with ‘soft goods’, such as seating. While it could be too expensive to replace leather seats, they could be reconditioned. And the same applies with wood or hard goods, which can be cleaned and polished. “These are small investments that can have a big outcome on the flip side,” Chatfield assures.

Cabin Refurbishment Essentials

Matching Old With New

There are a number of cabin refurbishment essentials that owners should consider, particularly if they are focused on resale, Chatfield adds. Many are suited to owners even with relatively limited budgets. For example, it’s important to replace old carpets and reupholster damaged and/or dated passenger seating, ensuring they’re clean, fresh and attractive. At the very least, the carpet can be cleaned and then re-placed into the aircraft. While such tips can sound basic, they have a significant impact on sale prospects, Chatfield explains, using the analogy of a www.AVBUYER.com

George Bajo, Sales Manager for Modifications at Duncan Aviation, says that typical requests focus on areas like soft goods replacements or re-veneering cabinetry. There is a general trend towards modernizing interiors to make older aircraft look like modern versions of the same line, in terms of seating, cabinetry and so on. Many owners of older aircraft request that their platform be modernized to match the newer versions, Bajo says. For example, this could include the installation of new Passenger Service Units

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REFURBISHMENT  A Gulfstream G550 interior upgraded by Duncan Aviation



(PSUs), upgrades to drink rails, sidewalls, seating and lighting. According to Bajo, there has been a growing focus lately on cabin management systems (CMS), because many of the systems in older aircraft are now becoming obsolete or very expensive to maintain. “Sometimes you just can’t maintain them and you have to install something else; there are no patches anymore,” he explains. Moreover, Bajo says there have been a lot of discussions focused on new monitors, which are larger and higher-definition when compared with older systems. Upgrading cabin systems like CMS or connectivity/internet is the number one way to add value to an aircraft, Bajo highlights. “If there are two used aircraft sitting next to each other, and one has an outdated CMS with an old interior while the other has an upgraded CMS, fast internet connectivity, and a new interior, there’s more value to [the latter],” he says. “[The business jet is] an expensive asset – if it’s sitting on the ground for months, that tends to make people shy away.”

A newly upgraded cabin by MAC Aero Interiors

Keep an Eye on the Costs

As is always the case with aircraft modernization, Kruuv says operators must base their decisions to acquire ‘nice to have’ features on the overall airworthy time remaining in the airframe. “Seemingly minor items may snowball the project into an expensive and time-consuming undertaking,” he warns. “It’s very easy to spend too much money.” In general, anyone with an aircraft manufactured in the 20th century should take interior-related steps carefully. It is important to balance both the owner’s own experience and enjoyment of the aircraft with potential financial consequences. “All the soft components in a cabin are what create most of the experience, and refreshing them will keep the overall flying experience pleasant,” Kruuv concludes. “But if a customer with an older aircraft wishes to fully change the veneer or move around seats and sofas, they should first check whether, and how, it would affect the overall value of the aircraft.” More information from: Duncan Aviation – www.duncanaviation.aero; Elliott Aviation – www.elliottaviation.com; MAC Aero Interiors – www.macinteriors.com 

GERRARD COWAN is a freelance journalist who focuses on aerospace, defense and finance. He can be found on Twitter @GerrardCowan

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AVIONICS

Understanding BizAv Avionics: Navigation Within the field of cockpit avionics, a core category of instruments and functionality covers navigation. Ken Elliott takes a closer look… rom the basic compass, to an advanced flight management system, navigation is all about orientating and maneuvering an aircraft in four dimensions, to and from runways. The elements of a navigation system are available as visible tools for pilots to have the situational awareness they need, before, during and after a flight. When coupled to a flight control and autopilot system, the pilot only needs to monitor the aircraft’s flight path and engage modes of operation. Perhaps the biggest disruption to the way we navigate aircraft, and indeed most transport, has been the onset of satellite navigation, otherwise known as Global Navigation Satellite System (GNSS). The Global Positioning Systems (GPS) is but one constellation on GNSS. Until GNSS entered our lives, aircraft relied on ground station navigation, where transmitters and their antenna arrays beamed waveforms and pulses from small, weather-

F

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proofed buildings scattered across the landscape. Ground station navigation was, and still is, infrastructure dependent. Satellites, once deployed, are more reliable and are not yet a real estate concern. They are, however, vulnerable to cyber interference and state sponsored interruption during future conflict. Airworthiness authorities are fully aware of these concerns and are developing alternates as a back-up.

A History of Air Navigation

The geophysical make up of planet earth shaped the development of aircraft navigation in three fundamental areas, including: Terrestrial, Oceanic and Arctic. Terrestrial allowed the physical location of positionaiding beacons. Oceanic required transmitters with low enough frequencies that could follow the curvature of the planet, reaching aircraft over oceans or in remote regions. Physics and the restrictive ice terrain meant that the poles www.AVBUYER.com

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FIGURE 1: Navigation Before GNSS

posed a unique challenge of their own: The magnetic field is everywhere, but is unreliable near the poles. The magnetic field enables aircraft to establish a predictable magnetic heading. If you knew in which direction the aircraft’s nose was pointing, you only needed to track its movement along the ground to create a flight track. Ground transmitters for terrestrial and oceanic navigation provided signals, enabling aircraft to track themselves in two dimensions. The third dimension was enabled via air data, and the fourth via a reliable time source. Very early flight used a compass and/or astro-navigation and it was normal for larger aircraft to carry a navigator as a third crew position. Without instruments to navigate a takeoff or approach, flight began under Visual Flight Rules (VFR). Later, Instrument Flight Rules (IFR) were introduced, as permitted via ground navigation aids and receiving airborne equipment. Around the poles, the unreliable magnetic field and inability to place and maintain ground beacons initiated the development of Inertial Navigation Systems (INS). INS used accelerometers and motion sensors, such as gyros, to detect the aircraft’s motion, with a high degree of sensitivity. An INS could determine True North and Latitude. With pilot input and an initial ‘warm-up’ period, the INS could orientate itself to a highly accurate position, with the ability to track aircraft movement. Unfortunately, on its own it is a dead reckoning device, and becomes inaccurate over time. However, it was ideal for polar flights. For the aircraft, onboard sensors detected the shorter wavelengths of terrestrial ground transmitters, allowing aircraft to eventually navigate reliably across continents. Other onboard sensors detected the longer www.AVBUYER.com

wavelengths, having the ability to follow the Earth’s curvature. This feature provided a means to follow predictable flight paths across oceans and remote regions. Not relying on radio frequency transmissions from ground stations, the INS allowed aircraft to navigate over the poles. The GNSS Game-Changer: The onset of GNSS occurred mostly throughout the 1990s, and as GNSS became more reliable and predictable, it supplanted existing technologies, either completely (in the case of VLF/Omega) or to varying degrees. The degree of variance for ground navigation aid obsolescence is partially a result of the conservative approach to airspace design and the significant cyber security risk associated with GNSS. While ADF is being phased out through attrition, VOR is being reduced to an essential network, functioning mostly in the instance of a GNSS network failure. On the other hand, DME may be here to stay while even commissioning new ground stations. One reason for DME as a stoic backup for GNSS is that DME positioning can be highly accurate when sufficient signals are received and computed. This is known as RhoRho navigation (as opposed to the less accurate Rho-Theta, using DME-VOR). The DME navigation is considered RNAV, and may require that the aircraft has a working IRS.

The Modern Aircraft Navigation System

Step forward to current times. A typical turbine aircraft equipage will entail a combination of the legacy and the new. The new, with over twenty-five years of proven operation, is GPS-based, but to be complete it needs external system inputs for compliance, redundancy and superior performance.

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FIGURE 2: Navigation After GNSS

Modern systems are integrated across primary and secondary avionics, where each is separate to provide for failsafe aircraft operations. This integration results in hybrid navigation, where the actual track is a determination of multiple sensor positions, and flight path updating within a Flight Management System (FMS). Each aircraft will have two, or even three FMS systems, operating independently. To function, at a minimum the FMS needs certain dynamic references such as:

Navigation includes all phases of flight, day and night, and during VFR/MVFR & IFR conditions, on the ground and in the air. As a result, systems used for low visibility operations, such as Enhanced Vision (EFVS/CVS as EFVS with SVS), are also part of a modern turbine aircraft’s avionics navigation suite. Equally, runway awareness systems supplementing Terrain Awareness (TAWS), showing airport detail on multifunction displays, are also part of the navigation toolbox.

• • • • • • •

Methods of Modern Aircraft Navigation

Magnetic Heading Inertial Reference for attitude and acceleration Navigation Sensor position and timing information Air Data Up-to-date Navigation Database Up-to-date Performance Database A loaded Flight Plan.

The FMS is so integrated that it functions as the primary tool for Future Aircraft Navigation (FANS). FANS is the oceanic/remote regions component of Controller Pilot DataLink Control (CPDLC), and covered as a communications tool. However, as the current and future trends show, data communication and navigation, as well as surveillance, are evolving together, with significant crossover taking place. FANS ensures that long-range navigation tracks are flown within their limits, while tracked by Air Traffic Control for remote airspace management. The primary sensors for an FMS are GPS 1 and 2, but the same GPS information is provided to the aircraft’s ADS-B Out, an avionics surveillance system. In fact, accurate position information is sent to several different aircraft system, even including the Emergency Locator Transmitter (ELT). 124  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Assuming the GNSS equipment is fully functional and without degraded signal, most navigation charts include some form of GPS guided route. Standard Instrument Departure Routes (SID) and Standard Terminal Arrival Routes (STAR) couple airport departures and approaches to airways for IFR en route flights. The STAR ends at the Initial Approach Fix (IAF), where the approach phase of the flight begins. That phase, in turn, breaks down from Initial, to Intermediate, to Final (to landing), and Missed Approach (if needed). While GNSS, using GPS or other satellite configuration, can accommodate all eight phases of flight, procedures exist to operate with legacy avionics, both as an option, and in the instance of GPS degradation. These avionics include: • ADF • VOR/ILS/Marker Beacons • DME • IRS • CVS/EFVS with SVS (Final to land). Note: Existing RNAV refers to Area Navigation where combined sensor data can provide for offset waypoints using angles and distances, from the specific VOR and

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FIGURE 3: A Typical Single FMS Layout

DME station fixes. Taking GPS approaches there are several different types, and terminology for similar procedures can be different for US and Europe (for example), such as Localizer Performance with Vertical (US) and Approach with Vertical Guidance (Europe). GPS Approaches are today termed RNAV approaches and come in two groups. Those with and those without vertical guidance. •

If the GPS is not using a satellite-augmented signal (SBAS-WAAS or EGNOS), the vertical input is baroaltitude from the aircraft’s air data system. These approaches are LNAV/VNAV. When the GPS information is WAAS- or EGNOSbased, the approaches are LP/LPV (or APV).

The alternative to WAAS-LPV approaches are Required Navigation Performance approaches (RNP), including tightly curved, close-in approaches, RNP-AR (Authorization Required).

RNP approach = 0.3-1nm centerline to boundary permitted error, with alerting. • RNP AR approach = 0.1-1nm centerline to boundary permitted error, with alerting. RNP also applies to en route navigation, being different to RNAV en route navigation. RNP en route “requires onboard navigation performance monitoring and alerting capability, to ensure that the aircraft stays within a specific containment area”, according to the FAA. RNP boundaries are more forgiving for en route navigation, being from 4-10nm, depending upon the track being flown. • •

While being similar to the US, a useful site for European EGNOS based operations is https://egnosuser-support.essp-sas.eu/new_egnos_ops. Global applications of navigation procedures covered by ICAO may be found in the ICAO Procedures for Air Navigation Services – Operations (PANS-Ops), spread over several primary documents such as Doc-4444, 8168 and 9868 (https://icao.int).

FIGURE 4: The Eight Phases of Flight Where Navigation Plays a Role

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AVIONICS

AVBUYER.com FIGURE 5: The Latest Status of WAAS-LPV Approaches in the Contiguous US

What to Expect on a Typical Turbine Aircraft?

A typical modern turbine aircraft used in Business Aviation will include the following dual-equipage navigation avionics: • • • • • • • • •

Flight Management System – FMS Inertial Reference System – IRS Global Positioning System – GPS Navigation Radio – VOR/ILS/MB Distance Measuring Equipment – DME Head-Up Display – HUD Enhanced Vision System – EVS Synthetic Vision System – SVS Automatic Direction Finder – ADF.

Keep in mind the significant integration of all avionics, and how dependent the overall navigation is on other systems including: • • • • •

Air Data FANS ADS-B Flight Control Terrain and Traffic Avoidance

The display of navigation in these aircraft will be to the pilot’s Primary Flight Display (PFD) and secondary Multifunction Display (MFD). Some navigation information is also provided to Electronic Flight Bags (EFBs) and summarized as flight legs on passenger cabin monitors. Navigation data is further overlaid on weather, recorded in the aircraft’s Flight Data Recorder (FDR) and relayed to

the ground via Satcom. Finally, the aircraft navigates via its flight control system and uses different modes for how the pilot wishes to follow ATC commands or a flight plan. These modes range from heading only to full roll steering, with vertical guidance.

In Summary

Navigation is one of the three core pillars of aircraft avionics, the others being Communication and Surveillance (collectively termed CNS). It is, however, apparent that Navigation is fully dependent on the other two pillars. With advancements in time-based operations, 4D navigation or Dynamic RNP is upon us with multiple future benefits to follow. Accommodating the onset of eVTOL and Unmanned Aircraft operations will also be a challenge for the different classes of airspace and existing navigation procedures. Cyber concerns lead to a retention of DME-DME (RhoRho) and the introduction of e-Loran methods of alternative guidance to GNSS constellations. If you’re seeking to buy a pre-owned aircraft, review the navigation capabilities and options that may be available to you. Because operations are different across the globe, your intended aircraft may not be equipped, or may be certified to perform certain navigation procedures. The aircraft’s equipment list is a good starting point, and the manufacturer’s service bulletin or aircraft change list will further highlight the necessary detail for verification of an aircraft’s capability. Next time, we will address Surveillance, the third pillar of the aircraft avionics suite. Stay tuned! ❙

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

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COMMUNITY

Bombardier Announces Challenger 3500 Bombardier has launched the new $26.7m Challenger 3500 – an update on its successful Challenger 350 Super Mid-Size Jet – offering innovative technology in both the cockpit and cabin areas. cheduled to enter service in the second half of 2022, the $26.7m Bombardier Challenger 3500 has big shoes to fill, though the array of cabin and cockpit enhancements will give it more than a fighting chance... The Bombardier Challenger 3500 follows a highly successful legacy established by the Challenger 300 and Challenger 350 jets, which between them had delivered 853 units worldwide by the end of July 2021 (per JETNET data). In fact, the original Challenger 300 remains the bestselling Mid-Size private jet to date. But Bombardier is doing plenty to secure the family’s legacy for the future, focusing on enhancements to the cabin and flight deck. Priced the same as a Challenger 350, at $26.7m, the Challenger 3500 introduces “a redesigned interior with intelligent and sustainably minded cabin features”, according to Bombardier, with the overarching goal being enhanced “comfort and function”. Patented Nuage seats are incorporated into the standard Challenger 3500 configuration — a first for the Super Mid-Size segment — while temperature, entertainment and lighting will all be voice-controlled,

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representing another first. The cabin altitude aboard the Challenger 3500 (4,850ft at FL410) represents an improvement of nearly one-third (31%) compared to the Challenger 350. “Building on the success of the unrivalled Global 7500 business jet cabin, the Challenger 3500 aircraft prioritizes what our customers value most: a truly exceptional cabin experience,” Éric Martel, President and Chief Executive Officer of Bombardier, said. Up front, on the flight deck, the Challenger 3500 sees the incorporation of a standard-equipped autothrottle system, and will offer more baseline features than any other Super Mid-Size Jet, Bombardier claims.

Sustainability is Key

Having celebrated the Ultra-Long-Range Global 7500 becoming the first business jet to receive an Environmental Product Declaration (EPD), Bombardier will aim to make its Challenger 3500 the first business jet in the Super Mid-Size segment to have an EPD. Meanwhile, customers can choose options from a selection of high-end sustainable materials for the cabin. An eco app, developed by SITA, is available for owners

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OEM Bites

C

Embraer recently delivered its 1,500th business jet, an impressive accomplishment achieved in only two decades. The aircraft, an Embraer Phenom 300E, was delivered to Haute Aviation, a Swiss company focused on charter, brokerage, and aircraft management – a first-time Embraer customer. https://executive.embraer.com/

and operators, designed to optimize flight plans and reduce fuel burn.

Poll Respondents Got it Right!

Ahead of Bombardier’s announcement, AvBuyer’s Editor of Buyer Finance and Strategy, René Armas Maes, executed an online poll on what Bombardier Aerospace’s plans for its portfolio development could be. René asked: “What brand-new product or product upgrade do you think Bombardier will unveil?” Generating more than 100 votes, 43% of respondents believed Bombardier would refresh its Challenger 350 in terms of interior, potentially a new engine, and improved range capabilities. According to René, this survey option makes sense. “The Challenger 350 is one of Bombardier’s best sellers, and the OEM needs to further penetrate the Super Mid-Size Jet segment with this improved Challenger 3500 jet plane at a lower capital expenditure.” Thirty percent of the respondents voted for an official launch of the Bombardier Global 8000/8500 line with enhanced range capabilities, thereby giving Bombardier an even stronger presence in the Ultra Long-Range arena. However, with the 100th Global 7500 rolling off the production line, Bombardier will be expecting that model to be a significant contributor to its bottom line as things stand. A further 23% of poll respondents

www.AVBUYER.com

expected that Bombardier would launch a new, clean-sheet 4,250-4,750nm platform replacing the 40+ year-old Challenger 600 platform. The remaining 4% were expecting another product announcement. “Ultimately, the unveiling of the upgraded Challenger 350 boils down to capital expenditure, and represents the lowest-risk option on the survey,” René concludes. “Bombardier is already doing well within the Super Mid-Size segment, and will expect to improve its market share and margins with this newest model.”

Gulfstream has won an International Yacht & Aviation Award for a fifth year in a row. This time the Gulfstream G500 won recognition for excellence in cabin design. The “Performance and Polish” G500 entry gained top honors in the Interior Design/VIP Completions category. www.gulfstream.com

Long-Term Implications of Other Options

In May 2021, AvBuyer predicted that the Large Jet segment might be the most keenly contested in the next three to five years – specifically for a new product offering a range of between 4,250nm and 4,750nm. Almost a quarter of poll voters clearly see the demand, too, and if Bombardier makes a move in this segment any time soon — particularly with a clean-sheet design — the OEM would position itself well. “Looking ahead, Business Aviation market conditions are favorable,” René suggests, “which may incentivize investor support favoring a clean-sheet product launch in the next two to three years.” More information from www.bombardier.com

Textron Aviation celebrated a major milestone, receiving EASA type certification for the Beechcraft King Air 360/360ER and King Air 260, thus paving the way for customer deliveries to start throughout the region. Meanwhile, the Beechcraft Denali has moved a step closer to first flight after successful ground engine runs. www.txtav.com

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Pacific AirHub Celebrates First Year of Success Pacific AirHub, a global leader in aircraft purchasing and sales, is reflecting on a year of successes as it celebrates its first birthday…

Dan Egan and Stephen Green, Partners at Pacific AirHub

espite the challenges of Covid-19, the past year has seen Pacific AirHub succeed beyond expectation. With a team collectively totalling 100 years of experience between them, an impressive 20 helicopter sales were accomplished, and shipped to 12 different countries. Beyond helicopter and parts sales, Pacific AirHub’s services include pre-purchase inspections, aircraft valuation, and shipping and logistics (hangar to hangar). The company started in New Zealand and has already expanded its physical presence into Australia and Africa. Other highlights during its first year of operations include: • Worldwide demand for H125 and H130 stock resulting in almost all of the stock being sold.

D

The recent sale of a Sheriff B2 to a private owner in South East Queensland, Australia.

The demands of operating during the global pandemic has also required the company to rapidly evolve its operations, including effectively integrating Pre-Purchase Inspections (PPIs) into its offerings, and streamlining video inspections as the ‘new normal’. With its second year in business promising to be even more successful than the first, Pacific AirHub says it is looking forward to assisting additional customers in taking their next steps in their aviation journeys. More information from https://pacificairhub.com

Community Appointments Katie Bancroft was promoted to Associate, Jaffa & Co, a Farnborough, UK based aviation, superyacht and real estate lawyer recently. “Katie is central to our firm's offering in both aviation and marine, and we are proud to count her as part of our team,” a company statement read.

James D. (Jim) Raisbeck,

CEO of Raisbeck Engineering, passed away on September 4th, at the age of 84. His 67-year career was built upon using his knowledge of fluid dynamics to create products that reduced drag, enhancing overall performance and increasing safety margins for numerous business and commercial aircraft. “His legacy extends from aircraft innovations to aviation institutions that educate and inspire, including the Raisbeck Aviation High School,” said NBAA President and CEO Ed Bolen. NBAA recognized James with our Meritorious Service to Aviation Award in 2002.”

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Bill Darbe was appointed Director of Business Development for L2 Aviation’s Sales team. L2 Aviation specializes in aircraft electronics engineering and support, and Darbe will manage the company’s Business Aviation expansion as well as growing its presence within the aircraft services industry. Toliver Lasswell was promoted by West Star Aviation as its new Embraer Project

Katie Bancroft

Manager at their East Alton facility. Toliver has over 10 years of aviation experience, with seven of those years spent at West Star, starting in Line Services and moving to Citation as AMT. Jim Lewis was promoted to Senior Managing Director, Mente Group recently. With 46-years working in the aviation industry, his experience ranges from employment as a freight and charter pilot and regional airline captain, to chief pilot, flight department manager, sales demonstration pilot, sales manager, director, and vice president. Nadeem Muhiddin was recently appointed by AMAC Aerospace Switzerland AG as its Director of Group Integration Affairs. T

Toliver Lasswell

Nadeem Muhiddin

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Mesotis October.qxp 22/09/2021 14:01 Page 1

2009 Learjet 60XR Registration: OE-GSE Serial Number: 60-372

Total Time: 5596 • Landings: 3187 Engines 1 / 2: 5501 / 3126 • Cycles 1 / 2: 5501 / 3126

Highlights • Fresh 12 years inspection • New interior • ADSB out • On CAMP • Airshow 410 • 15.1“ & 10,4“ TV Monitors • DVD & CD Player • Microwave oven • Irridium Phone System

Avionics • Collins Pro Line 21 EFIS /Avionics System including the following: • Dual Collins FMS-5000 Flight Management System • Dual Collins GPS-4000A • Dual Collins VHF-422C (8.33 spacing) • Dual Collins DME-442 • Dual Collins ADF-462 • Collins ALT-4000 Radio Altimeter • Rockwell Collins VIR-432 w/FM Immunity • Collins TWR-850 Weather Radar w/Turbulence Detection • Collins TTR 4000 TCAS II w/change 7.1 • Dual Honeywell HF-1050 HF Radios w/SELCAL • Universal CVR Cockpit Voice Recorder • ICS-200 Iridium Transceiver • RVSM compliant

Extraordinary cabin design Eight (7+1) seats: RH 3 place divan • 4 place club seating • 1 belted toilet seat

We are available to discuss in person at NBAA • tthums@mesotisjets.com +43 676 59 000 82 www.mesotisjets.com VIENNA

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Jet Agent October.qxp_Empyrean 23/09/2021 10:06 Page 1

S H O W C A S E

Please call for price 2017 Embraer Phenom 300 Serial Number: Registration: Airframe: Landings:

50500409 G-CKAZ 887 532

• 6 + 1 Passenger Configuration • ADS-B Out & CPDLC COMPLIANT • FDR • Life Raft - EASA • Belted Toilet Seat • UK CAA / EASA APPROVED • In-Flight Phone Datalink • In-Flight Entertainment – Best Value Package Airframe Entry Into Service Date May, 2017 Maintenance Tracking TrustFlight Current Certification UK CAA/ EASA compliant Engines Pratt & Whitney Canada PW535E Pratt & Whitney Canada PW535E Left engine Right engine S/N: PCE-DG0817 PCE-DG0815 THSN: TBA Hours TBA Hours TCSN: 532 Cycles 532 Cycles Overhaul Due: 5000 Hours 5000 Hours Program Coverage None None Avionics Prodigy Touch System 1 Garmin 3000 AMLCD (Active Matrix Liquid Crystal Display) 3 IESI (Integrated Electronic Standby Instrument) 1 Audio Panels 2 5.7 inches infrared Touch Screen Controllers 2

Guidance Panel 1 TCAS II 7.1 (Traffic Collision Avoidance System) 1 HF and SELCAL 1 TIS (Transponder functions including Traffic information system (TIS) 1 FMS (Flight Management System) 1 Satellite Weather and Radio Receiver (2)* 1 TAWS-A (Terrain Info, Terrain Awareness and Warning system 1 Moving Map for situational awareness 1 FD (Dual Flight Director) 2 AFCS (3 Axis CAT I Automatic Flight Control System 1 Interior Number of Passengers Galley Six (6) + One (1) Belted Toilet Seat Location Forward Cabin Forward Cabin Configuration Four (4) Single Seats with Two (2) folding executive Tables Afterward Cabin Configuration Two (2) Single Seats Lavatory Locations One – Afterward Jump-seat No Galley Equipment Hot water dispenser, Ice Drawer Entertainment & connectivity Display/TV Monitor(s) Cabin N/A Management System N/A Phone / Entertainment System In-Flight Phone and Datalink / In-Flight Entertainment – Best Value Package Exterior Base Paint Color(s) White Stripe Color(s) Dark Blue Location: United Kingdom - England

Jet Agent Anatoly Parkhomchuk

www.AVBUYER.com

Tel: +44 (0) 796 104 8531 Email: anatoly@jet-agent.com www.jet-agent.com

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Clip Group 2020 Bell 505 Jet Ranger X August.qxp_Heeren Cit Ultra sep 22/09/2021 14:02 Page 1

S H O W C A S E

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

65253 SP-MRW 26

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

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

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

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

136  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

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

www.AVBUYER.com


Aero-Dienst GmbH October.qxp_Empyrean 22/09/2021 14:03 Page 1

S H O W C A S E

Asking Price: US$10,750,000 2004 Dassault Falcon 900EX EASy II Serial Number: Airframe: Landings:

133 8918:04 3631

• One Owner/One Operator • 19 Pax Cabin Layout • Always hangared • Engines/APU on MSP Gold • Fwd Crew Lav & 3rd Crew Member Seat • Aero-Dienst Maintenance and CAMO • EASY II 4th Cert. Enhanced Avionics • Equipped for CAT IIIa ops • 1C/3C Inspections at Aero-Dienst (EDDN) • Paint (all-over white) 3Q 2021 • Available February 2022 Engines 1 - Make and Model: Honeywell TFE731-60-1C Serial No.: P112257. Total Time: 10423:50 hrs Cycles: 8040 2 - Make and Model: Honeywell TFE731-60-1C Serial No.: P112520. Total Time: 8821:00 hrs Cycles: 3564 3 - Make and Model: Honeywell TFE731-60-1C Serial No.: P112519. Total Time: 8503:47 hrs Cycles: 3396 APU Make and Model: Honeywell GTCP36-150(F) Serial No.: P-455. Total Time: 3332 hrs All three Engines and APU enrolled on Honeywell MSP Gold

Avionics Honeywell Primus Epic EASy II (4th Cert): 3 Honeywell EASy Flight Management Systems (FMS) 3 Honeywell LASEREF V Inertial Reference Units (IRS) 2 Honeywell NV-875B Navigation Radios (NAV) 2 Honeywell XS-858B Transponder (XPNDR) 3 Honeywell TR-866B Communication Transceiver (VHF) 2 Rockwell Collins HF-9034A HF Radio (HF) w/ SELCAL 1 Magnastar C-750 Satellite Phone (SATCOM) 1 ACSS RT-951 Change 7.1 TCAS 2000 (TCAS) 1 Honeywell Enh. Ground Prox. Warning System (EGPWS) 1 Honeywell Primus 880 Weather Radar (WXRADAR) 1 Honeywell SSCVR Cockpit Voice Recorder (CVR) 1 Honeywell SSFDR Flight Data Recorder (FDR) 1 Elta ADT-406 AF/AP Emergency Loc. Transmitter (ELT) Other Features/Options Electronic Jeppesen Charts (SB F900EX-244) HGS CAT 3 (SB F900EX-247) Wing Tank Modification (SB F900EX-329) Enhanced EASy II incl. RAAS (SB F900EX-400) Enhanced Navigation LPV (SB F900EX-401) ADS-B out (V2) (SB F900EX-402) Synthetic Vision System (SB F900EX-403) CPDLC ATN-B1 (SB F900EX-408) CPDLC FANS 1/A+ (SB F900EX-409) Enhhanced EASy II Cert. 4 (SB F900EX-560) Push-to-Load Function (SB F900EX-563)

Aero-Dienst GmbH Andreas Strabel Flughafenstrasse100, 90411 Nuremberg, Germany www.AVBUYER.com

Tel: +49 911 93 56-121 Email: andreas.strabel@aero-dienst.de www.aero-dienst.de

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137


Mansfield Heliflight October.qxp_Empyrean 22/09/2021 14:05 Page 1

S H O W C A S E

2013 Bombardier Global 6000 Serial Number: Airframe TT: Landings:

9493 663 220

FOR IMMEDIATE SALE Engines Engines (on JSSI): Left (sn 12457) 4341 Right (sn 12411) 5662 APU Honeywell RE220(GX): Total time 3351 hours Avionics F/DIR Dual Collins Integrated AFCS TCAS Collins TCAS II (w/ CH7.1) A/PILOT Dual Collins Integrated AFCS EGPWS Collins TPM-6000 (Class A) COMMS Triple Collins VHF-4000 FMS/GPS Triple Collins FMS NAVS Dual Collins NAV-4000 IRS Honeywell LASEREF VI RADAR Collins RTA-4118 RAD ALT Dual Collins TSS-4100 / HF Dual Collins HF / SELCAL XPDR TDR-94D w/ ADS-B

area. Entertainment system includes two cabin 24” LCD video bulkhead monitors, Airshow, Collins CMS, dual Blu-ray players, Honeywell Swift broadband high speed internet and wireless LAN Exterior Overall Snow White with Tan and Blue accent stripes Additional equipment ADS-B Compliant, RVSM Certified, Synthetic Vision, Heads Up Display, Enhanced Vision System, 8.33 Radios, FM Immunity, 406 Mhz ELT, CVR, FDR, WX-1000E Lightning Sensor System, Collins SATCOM, External Camera System, Electronic Flight Bags, Jump seat, FDR Force Sensors Price: Please call

Interior 14 passenger configuration with a forward four place club, mid cabin four place conference group and aft three place divan opposite two executive chairs. Forward galley equipped with microwave, hi-temp oven and coffee maker. Forward and aft lavatories. Forward crew rest

MANSFIELD HELIFLIGHT 159 Catamount Drive Milton, VT 05468, United States

138  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Tel: +1 (802) 893 1003 Mob: +1 (802) 922 2321 Email: tina@mansfieldheliflight.com www.mansfieldheliflight.com www.AVBUYER.com


Aviatrade DHC8-315 October.qxp 22/09/2021 14:06 Page 1

S H O W C A S E

2005 DHC8-315 MSN 613 Serial Number: Airframe TT: Landings:

C-GIXF 5.425 7.337

• Offered exclusively for sale as is where is with a Canadian COFA • Fresh from major C check and fully technically refurbished • One of the last built Q300 for sale with extremely Low Time • Aircraft was used as a Corporate Shuttle for Oil Industry • Look like brand new • PW123E LH Engine AW0106 FRESH FROM OVERHAUL by PWC FHSN 5.373 FCSN 7.186 • PW123E RH Engine AW018 FRESH FROM OVERHAUL by PWC FHSN 5.459 FCSN 7.325 • APU Hamilton Sundstrand SP-E035170 TCSN 8.830lAst HSI 16 SEP 14 • Landing gears ALL FRESH FROM OVERHAUL • ALL PROPS FRESH FROM OVERHAUL PAINT ONGOING ARTIC WHITE

Equipment Manufacturer Dual Comm Allied Signal Dual Nav Allied Signal Dual AHRS Honeywell Dual DME Allied Signal Dual RMI Honeywell Dual Alt Honeywell Alt Alerter Sperry Dual ADF Allied Signal Dual Audio Cont Avtech Radar Allied Signal ELT Pointer Dual HSI Honeywell Dual FD Honeywell Stby Alt Aero Mech Dual Clock Davtrom Stby Art Horizon Sfena Radio Alt Honeywell GPWS Sundstrand DFDR Sundstrand FDAU Teledyne CVR Sundstrand Air Data Comp Honeywell TCAS Comp Allied Signal Dual Trans Mode S Allied Signal TCAS Controller Allied Signal Dual VSI/RA Indicators Allied Signal Dual Directional Ant Allied Signal Other: All other equipment standard DHC-8

AVITRADE Albert-Frédéric Bloem Emmanuel Paillier

www.AVBUYER.com

Mob: +32-475.621.539 Mob: +1 514 348 5589 a.bloem@avitradebelgium.com emmanuel.paillier@gmail.com

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139


1 Marbale Universal June.qxp_Empyrean 22/09/2021 14:07 Page 1

S H O W C A S E

2020 Gulfstream G500 Serial Number: 72036 Registration: OE-LVA Airframe TT: 74.7 Landings: 48  Brand new, 13 passenger aircraft, under  75 hours of flight time  EASA Certified and FAA Compliant  Aircraft registered in Austria  Vinyl Flooring in Entryway and Gallery Area  Removable Acoustic Curtain between  Cabin 2 and 3 Engines Pratt and Whitney PW 814GA Left engine Right engine S/N: #1 PCE-GA0122 #2 PCE-GA0116 THSN: #1-69.5 Hrs #2-69.5 Hrs TCSN: #1-46 cycles 2#-46 cycles Program Coverage: JSSI APU Honeywell HGT400 (GVII-G500) S/N: P-153

Email: KOKOLOFF@gmail.com

140  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

Total hourse since new: 118 HRS Program coverage: JSSI Airframe Home Base: Moscow Program Coverage: Warranty Airframe and Outfitting Maintenance Tracking: CMP Certification: EASA Avionics The Aircraft is Equipped with Honeywell Primus Epic II refer to the attached List for the single components Currently Operated under EASA (ASC 007) ARINCDIRECTSM DATALINK SERVICE PROVIDER CONFIGURATION (ASC 12A) EEC Software Update perf (ASC 22B) INTEGRATED MODULAR AVIONICS (ATA 42) SYMMETRY FLIGHT DECK MASTER OPERATING SYSTEM SOFTWARE UPDATE (ASC900A) EVAS installed

Vasily

Additional equipment ADS-B out equipped FANS and CPDLC 13 Pax and 3 Crew Fwd LH and RH Galley and fwd Lavatory Fwd Cabin - 4 club seat and two double seats Side credence Aft Cabin - 2 club seat and 3 place divan Sleeping possibility for 6 Pax Aft lavatory Baggage compartment accessable via aft lavatory Watersystem with waterheater and a 60 Liter Tank Galley equipped with Refrigerator, Hot Air Oven and Micro wave oven plus Coffee Maker and Espressomaker Exterior Aircraft is New Painted (Sep 2019) Matterhorn White (Wing Walk) Stripes Blue Pearl and Silver Pearl)

UK Mobile: +44 7500 5549 57 Russian Mobile +7 915 294 74 55 WhatsApp Only: +1 765 705 01 14

www.AVBUYER.com


P141.qxp 22/09/2021 15:13 Page 1

JETAPPRAISALS Performed by Accredited Senior Appraisers

877.531.1450 jetappraisals.com

Desktop Aircraft Appraisals / On-Site Asset Verification and Logbook Review Residual Values / Customized Analysis 11:58:34 AM

+1.636.751.3987 www.AVBUYER.com

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141


P142-145.qxp 22/09/2021 15:04 Page 1

M A R K E T P L A C E

Boeing 737 35B

Gryphon Aviation Leasing

Tel: +1 (786)-488-5142 E-mail: chris@gyrphonleasing.com

Price:

Please call

Year:

1988

FOR IMMEDIATE SALE

S/N:

24269

Total Cycles: 23,614

Reg:

N789LS

Interior & Entertainment: Current Passenger Seating: 40 Seats

TTAF:

41,440.8

Contact: Christopher Watkins

Location: USA

www.gryphonleasing.com

Boeing 737 35B

Gryphon Aviation Leasing

Tel: +1 (786)-488-5142 E-mail: chris@gyrphonleasing.com

Price:

Please call

Year:

1988

FOR IMMEDIATE SALE

S/N:

24220

Total Cycles: 26,336

Reg:

N788LS

Interior & Entertainment: Current Passenger Seating: 26 Seats

TTAF:

38605.7

Contact: Christopher Watkins

Location: USA

www.gryphonleasing.com

2013 Gulfstream G650

The Ritchie Group Price:

Please call

Year:

2013

S/N:

6015

Reg:

-

TTAF:

1,509.8

Location: USA & Canada

Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com LOW TIME, EXCELLENT PEDIGREE. Inquire Today! U.S. Registered, Professionally Maintained and Operated, Excellent Pedigree. Engines & APU Enrolled on JSSI Platinum Program 100% Coverage. 96-Month Inspection Completed April 2020. Block Point 2’ (ASC 902A & ASC 038A Incorporated). ADS-B Version II (DO-260B). CB 162 FMU and Fuel System Upgrade Completed. ASC 093 Flight Control Computer software (V7.1). REU and MEC Reliability Updates. ASC 098 Horizontal Stab Control Unit Mod 4. Main Entrance Door Lock, Latch Actuator and Rigging Improvements. Avionics: The Gulfstream G650 is Equipped with the Gulfstream PlaneView™ II /Honeywell Primus Epic Avionics Suite

www.jet-transactions.com

Airbus/Eurocopter AS 365

Tel: +386 51 62 59 12 E-mail: evaskrinjar@gmail.com

Evica Skrinjar Price:

Please call EASA airworthy.

Year: S/N:

5062

Reg:

S5-HCK

TTAF:

9640

Exterior and interior refurbished 2017

Location: Slovenia

Airbus/Eurocopter AS 365

Tel: +386 51 62 59 12 E-mail: evaskrinjar@gmail.com

Evica Skrinjar Price:

Please call EASA airworthy.

Year: S/N:

5009

Reg:

S5-HCJ

TTAF:

9910

Exterior and interior refurbished 2017

Location: Slovenia

142  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

www.AVBUYER.com


P142-145.qxp 22/09/2021 15:04 Page 2

Bombardier Learjet 36A

Leonard Price: Year: S/N:

M A R K E Tel: +1 (806) 662 5823 T Hudson Drilling Email: ronfernuik@hotmail.com P L USD $695,000 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

Would consider trade for KingAir 200/300 Price Reduced

Location: USA

BELL 412EMS

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

Tel: +1 (516) 658 1847

Bristell LSA

Bristell LSA 915 Turbo - 141 HP 1500 FPM Climb - 160 KTS True Airspeed at 18,000 feet Order Now and avoid the

9% Price Increase! Call Lou

www.sportflyingusa.com

Bell 206B

Pascal PETITGENET Price:

Make offer

Year:

1972

S/N:

8326

Reg:

F-HPGT

TTAF:

8200

Location: France

www.AVBUYER.com

Tel: +33 (0) 160 226 7085 E-mail: contact@helitechnique.com Complete airframe with logbook, certificate of registration & certificate of airworthiness. Without engine, mechanicals and avionics. Hight and low skids, Dual control, Range extender, Beige leather, Harness 4 points pil/copil. Good historic, good condition. Location at side Paris. Pictures on request. Make an offer. HELI TECHNIQUE Sarl (LEONARDO Recognized Maintenance Center)

AVBUYER MAGAZINE R Vol 25 Issue 10 2021 R

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P142-145.qxp 22/09/2021 15:04 Page 3

M A R K E T P L A C E

Bell 206L 4

GLOBAL SOUTH CORP Price:

USD $1,250,000

Year:

1995

S/N:

52153

Reg:

N803BA

TTAF:

6880

Location: USA & Canada

Airbus/Eurocopter EC 120B

This aircraft has been well mantained under 135, hangared, no damage history and only for VIP use, no utility. Beautiful exterior and interior in 2019. Airframe: 6900 hrs all AD's and SB's complied. New TT Straps. M/R BLADES 3132/2334 HRS REMAINING. T/R BLADES 3012 HRS REMAINING. Avionics: ASPEN 1500H GLASS COCKPIT. GARMIN GTN 650. GARMIN 430W. FREEFLIGHT 4000 RADAR ALTIMETER. Int: 2019 Gray and Blue leather. Ext: White with Blue and Silver trim. Additional equipment: NVIS. AIR COMM A/C. AEROMETALS FDC AIR FILTER. VAN HORN TAIL ROTOR. SKYTRAC FLIGHT DATA RECORDER w/WIFI ANTENNA

Tel: +31 (0) 652 407 808 E-mail: arno@heliair.nl

Heliair B.V. Netherlands Price:

€745,000 Excl. VAT

Year:

1999

S/N:

1069

Reg:

PH-RBC

TTAF:

3475

Location: Netherlands

Schweizer 333

Tel: +1 (737) 280 5400 E-mail: jcarguedas@gmail.com

Nice and clean Airbus EC120b, never saved on maintenance, with good remaining on the Engine, new servo's, fuel cell, VEMD etc - EASA OPS operated - All Applicable AD's/ SB's compliant. - PART-145 Maintained - Comes with Complete service history. - Typeratings can be offered in our ATO. Additional equipment: Bendix/ King Flight Display Thales Standby Horizon Remarks: EASA AOC Operated/ Part 145 Maintenance

Tel: +44 (0)796 780 2895 E-mail: James@jbs.co.uk

James Silverstone Price:

£228,500 Excl. VAT

Year:

2008

S/N:

073A

Reg:

N214TS

TTAF:

1590

Quite possibly the best value, latest, lowest hours, most equipped S333 / Turbine machine available in the world. Full IFR training panel. Fuel flow meter. Garmin 430. Blown air heating. Door openers and Sliding windows. Luggage compartment. Dual controls. Interior = 9.5/10 Exterior = 9.5:10. New Annual. Fresh Inspections, ready to fly. Built Late 2008. Possible PX up or down in value.

Location: United Kingdom

Mil Mi-8MTV-1

Igor Gridnev Price:

$1,500,000 No VAT

Year:

1991

S/N:

312М80

Reg:

17

TTAF:

2281

Location: Russian Federation

Bell UH-1H

Marian Guillermo Price:

€450,000

Year:

1966

S/N:

66-1238 (7314)

Reg:

N14MH

TTAF:

9034

Tel: +7 965 123 9529 E-mail: igor.gridnev@evraz.com Engines: TVZ-117MT APU: AI-9V Major overhaul 31/08/2018 Additional equipment: - Two fuel tanks: Type - VDB.6130.200; Full/filling volume - 885/845 l - Winding engine Type - LPG-150М

Tel: +49 (0)1767 017 1973 E-mail: marianguillermo@googlemail.com Selling a BELL TH-1F in very Good condition. Parked inside. 910 Engine SMOH. Airframe 9,034. New annual. No accident. Engines: T58-3. Avionics: iCom Radio 8.33

Location: Czech Republic

144  Vol 25 Issue 10 2021  AVBUYER MAGAZINE

www.AVBUYER.com


P142-145.qxp 22/09/2021 15:04 Page 4

Andreas FRANZ

Daher Kodiak 100

Price:

Make offer

Year:

2011

S/N:

100-0053

Reg:

HBNBH

TTAF:

2700

Location: Switzerland

Aircraft Spare Parts

Wheels, Starters, Brakes, etc. Outright and Exchange

M A R K E Tel: +41 (0) 796 596 909 T E-mail: andi@wikiplane.ch P L EASA-certified / Swiss registered. Can be used in passager- or A skydiver-configuration. Full equipement for paradropping (skydiver C version) with camera to the large dropping door and FLARM (TAS). E Big wheels for unpaved surface. 5-blade prop for lesser nois. Well maintained by Swiss-company (Mecanair) and allways hangared. Full documentation avaylable. Lots of options (tractor, APU, aso). Airframe: Skydiver-configuration with 2 long benches, grips in- and outside, wind deflector, jump light (green/red), camera to supervise the door. Engines: PT6A-34, TBO 4'000 hours, time since HSI 600 hours. Avionics: G1000, S-Tec autopilot, FLARM (TAS), TIS

Par Avion Ltd

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

FALCONS • HAWKERS • LEARS

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

www.paravionltd.com

Manufacturer of Select GSE & Speciality Tooling Preowned GSE also available

www.AlberthAviation.com

Buy * Sell * Trade

SALES • ACQUISITIONS • CONSULTING

832-934-0055

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

www.

www.AVBUYER.com

.com

AVBUYER MAGAZINE R Vol 25 Issue 10 2021 R

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P146 AC INDEX OCT.qxp 23/09/2021 11:36 Page 1

Aircraft For Sale • AIRCRAFT • HELICOPTERS

PAGE

AIRCRAFT

AIRBUS A318 Elite . . . . . 5 A319 VIP . . . . . . 5 ACJ319 . . . . . . . . 7, 8

BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 14, 29, 148 BBJ3 . . . . . . . . . 14 737-35B . . . . . . . 142 767ER . . . . . . . . . 5 787-8 . . . . . . . . . 5, 6 787-8 VIP . . . . . . 15, 29, 148

BOMBARDIER DHC8-315 . . . . . 139 Global 5000 . . . . 14, 15, 148 Global 6000 . . . . 14, 15, 24, 138, 148, Global Express XRS. 5, 9, 11, 15, 24, . . . . . . . . . . . . . . . 148

Challenger 300 . . . . . . . . . . . 15, 59, 148 350 . . . . . . . . . . . 15 601-3A . . . . . . . . 11 601-3AER. . . . . . 14 601 3R . . . . . . . . 63 604 . . . . . . . . . . . 1, 11, 95, 148 605 . . . . . . . . . . . 14, 18

Learjet 36A . . . . . . . . . . . 143 45XR . . . . . . . . . . 37, 41, 51 60 . . . . . . . . . . . . 15 60XR . . . . . . . . . . 134

BRISTELL LSA . . . . . . . . . . . 143

AIRCRAFT

III . . . . . . . . . . . . 63

AIRCRAFT

AIRCRAFT

PAGE

PIPER Cheyenne IIIA . . 63

SOCATA Kodiak 100 . . . . 145 TBM 930. . . . . . . 33 TBM 940. . . . . . . 33

HAWKER BEECHCRAFT King Air

SR22 . . . . . . . . . . 43 SR20G2 GTS. . . 43

DASSAULT FALCON 7X . . . . . . . . . . . . 2, 15, 59, 148 8 X . . . . . . . . . . . . 3, 11 50 . . . . . . . . . . . . 63, 147 50EX . . . . . . . . . . 34 900EX . . . . . . . . 65, 148 900EX EASy . . . 15, 24, 148 900EX EASyII . . 137 900LX . . . . . . . . . 15 2000 . . . . . . . . . . 59, 65 2000EX. . . . . . . . 147 2000LXS. . . . . . . 15, 148

350i . . . . . . . . . . . 33 B200 . . . . . . . . . . 69 C90GTi . . . . . . . . 69 F90-1 . . . . . . . . . 37

Beechcraft 1900D . . . . . . . . . 17

Hawker 400A . . . . . . . . . . 63 800A . . . . . . . . . . 63 800XP . . . . . . . . . 41, 69 900XP . . . . . . . . . 69 4000 . . . . . . . . . . 37, 95

IAI Astra SP . . . . . . . 41

AS 365 . . . . . . . . 142 EC 120B . . . . . . . 17, 51, 69, 144 EC 130B4. . . . . . 51 EC 135T2 . . . . . . 69 EC 155 B1 . . . . . 11

AGUSTAWESTLAND AW109E Power . 18 AW109S Grand. 19 AW109SP. . . . . . 14

BELL

PILATUS PC-12/47E . . . . . 15, 148 PC-12 NG. . . . . . 18 PC-24 . . . . . . . . . 65

333 . . . . . . . . . . . 144

MIL

GULFSTREAM

HELICOPTERS

AIRBUS/ EUROCOPTER

UH-1H . . . . . . . . 144 206 . . . . . . . . . . . 18 206B . . . . . . . . . . 143 206L4 . . . . . . . . . 143 212 . . . . . . . . . . . 143 412EP . . . . . . . . . 69 412EMS . . . . . . . 143 505 . . . . . . . . . . . 136

EMBRAER Legacy 500 . . . . 15, 148 Legacy 600 . . . . 18, 19 Legacy 650 . . . . 15, 19 Lineage 1000E . 51 Phenom 300 . . . 19, 69, 135 Phenom 300E . . 15, 148

IV . . . . . . . . . . . . . 19, 69

PAGE

IV SP . . . . . . . . . . 11 V. . . . . . . . . . . . . . 65, 69 150 . . . . . . . . . . . 11 200 . . . . . . . . . . . 5, 11 280 . . . . . . . . . . . 11, 33 450 . . . . . . . . . . . 11, 65, 69 500 . . . . . . . . . . . 140 550 . . . . . . . . . . . 5, 11, 15, 25, 28, 69 650 . . . . . . . . . . . 15, 25, 28, 65, 142, . . . . . . . . . . . . . . . 148 650ER. . . . . . . . . 25, 148

CIRRUS

CESSNA Citation

PAGE

VII . . . . . . . . . . . . 43 X. . . . . . . . . . . . . . . 33 XLS . . . . . . . . . . . . 41 XLS+ . . . . . . . . . . . 69 CJ2. . . . . . . . . . . . 65 CJ3. . . . . . . . . . . . 5, 43 CJ4. . . . . . . . . . . . 18 Excel . . . . . . . . . . 11, 19 Sovereign. . . . . . 33, 59 Ultra . . . . . . . . . . . 18 172S Skyhawk. . 43 182S Skylane . . 43

Mi. . . . . . . . . . . . . 144

PIAGGO P180 Avanti . . . 47

SCHWEIZER

Advertiser’s Index 1st Source Bank ................................................. 75 Action Aviation ..................................................... 65 AeroBuyNow ........................................................ 17 Aircraft Blue Book ........................................... 141 Aero-Dienst ....................................................... 137 Airline Transport Professional........................... 89 AMSTAT ............................................................. 127 Aradian Aviation ................................................. 69 Aero-Dienst ....................................................... 137 Avitrade .............................................................. 139 Avpro .................................................................1, 11 Blackhawk Modifications .................................. 55 Carolina GSE ...................................................... 75 Central Business Jets ..................................... 147 Clip Aviation ...................................................... 136 Concorde Battery ............................................ 115 Dassault Falcon Pre-Owned ........................ 2 - 3 Dubai Airshow .................................................. 121

Duncan Aviation ................................................. 41 Eagle Aviation ...................................................... 43 ElliottJets .............................................................. 33 Engine Assurance Program .............................. 23 Freestream Aircraft ................................... 28 - 29 General Aviation Services................................. 59 GE OnPoint ...................................................... 105 Global Jet Capital .............................................. 79 Global Jet Monaco .......................................... 5 - 9 Gogo Business Aviation .................................... 83 Hatt & Associates................................................ 37 Jet Agent ........................................................... 135 Jetbrokers ............................................................ 63 Jetcraft Corporation ......................... 14 - 15, 148 JetHQ ................................................................... 51 JETNET ............................................................... 119 Jet Values............................................................ 141 Leading Edge Aviation Solutions ................... 93

Lone Mountain Aircraft Sales .......................... 47 Mansfield Heliflight .......................................... 138 Marbale Universal ............................................ 140 Mesotis Jets ...................................................... 134 More & Company ............................................... 89 NBAA..................................................................... 73 OGARAJETS ....................................................... 21 Par Avion ...................................................... 34 - 35 Pratt & Witney ................................................... 101 Rolls Royce Corporate Care ..........................109 Rosen Visor ....................................................... 115 Satcom Direct ..................................................... 85 Singapore Airshow .......................................... 129 Sparfell & Partners ..................................... 18 - 19 Stevens Aerospace ........................................... 13 TAE Aerospace ................................................. 113 The Jet Business......................................... 24 - 25 The Private Jet Company................................... 95

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), October 2021, Vol 25 Issue No 10, 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 672033517. 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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COLLINS PROLINE 21 AVIONICS PACKAGE, AGT-5000 GoGo WIFI, Extended Altitude S.B. 49,000 FT capable, 3rd Collins VHF, Baker LCD Cabin Control System w/ 10 Panels, One 15” LCD Monitor, Artex ELT w/ NAV Interface, XM Weather, Baker Cabin Video System (4 ea. 5.6” Slim Line Plug in Monitors), Fire blocked foam with Fabric Protection

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2012 Gulfstream G450 SN4263

Primus 2000XP Avionics Suite, Triple IRS, Aircell ATG 4000, Honeywell SATCOM, FANS-1A/CPDLC, WAAS/LPV, ADS-B Out

Gulfstream Maintained – 8C Heavy Check 07/20, RRCC, HAPP, ASC 912C – PlaneView software update, ASC 037B – Synthetic Vision System 2.0, Near Perfect Paint & Interior, GOGO Wi-Fi, HD710 High Speed Data, 8 Monitors with DVD & Blu Ray

D L SO

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Citation X SN281

2005 Lear 60SE SN282

Honeywell Primus Elite DU-875 LCD Displays, Engines on Rolls Royce Corporate Care, Winglets, WAAS (Wide Area Augmentation Service), ADS-B Out, XM Weather, Airshow 4000, AGT-4000 GoGo with Talk & Text, Aircell Axxess II Iridium Satcom System

Artex 406 ELT w/ Nav Interface, WX 1000E Stormscope, Lightning Detection System, Ice Detection System, Extended baggage space, WAAS/LPV, Collins ADS-B Out

Aircraft wanted: Gulfstream G450 • Gulfstream G550 • Falcon 7X • Falcon 2000LXS Falcon 900EXy • Falcon 50EX • Lear 75 • Challenger 350

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AvBuyer Magazine October 2021  

The October 2021 Edition is out now. Read all the latest Business Aviation intelligence from the world's leading experts in AvBuyer Magazine...

AvBuyer Magazine October 2021  

The October 2021 Edition is out now. Read all the latest Business Aviation intelligence from the world's leading experts in AvBuyer Magazine...

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