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FC September 2021 Central Business Jets.qxp_FC December 06 25/08/2021 12:10 Page 1

Volume 25 Issue 9 2021

ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION

THIS MONTH Jet Comparison: Embraer Praetor 500 vs Cessna Citation XLS+

Falcon 2000EX Serial Number 014

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How to De-Register & Re-Register Your Jet, Fuss-Free Comparing BizJets The Apples-to-Apples Approach www.AVBUYER.com


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Contents.qxp 25/08/2021 13:19 Page 1

Vol.25 Issue 9

Contents

2021

8

26

Market Indicators

Trends and Observations from Leading Business Aviation Analysts

Market Insights

Interview With Jim Donath, Donath Aircraft Services

30

eVTOL and the Future of Business Flying (Part One)

34

How to Gauge Your Aircraft’s Marketability Using the ETP Ratio

40 44

Buying & Selling Aircraft

Comparing BizJets: The Apples-to-Apples Approach

Ownership

When to Form a Special Purpose Entity in BizAv

48

How to De-Register & Re-Register Your Jet Fuss-Free

58

Privacy Considerations for Aircraft Owners (Part 3)

64 68 76 84 88 94 98

Finance

When and How Should You Consider Refinancing a BizJet?

Aircraft Price Guide Large Jets Values

Jet Comparison

Embraer Praetor 500 vs Cessna Citation XLS+

Flight Department Management

Older Business Jets: Tips for OEM Trade-In Why Tailor a Flight Crew Operating Manual?

Maintenance

A How-to Guide for Upgrading & Modernizing Your Jet

Avionics

Understanding BizAv Avionics: Communication

106 Is it Time to Upgrade Your Business Jet’s Avionics? Community News

112 OEM News and Industry Appointments 120 Showcases 124 Marketplace 130 Advertisers’ Index 130 Aircraft for Sale Index Next Month

• Jet Comparison: Dassault Falcon 2000 vs Gulfstream G200 • How to Spend on an Older Cabin Refurbishment

4  Vol 25 Issue 9 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


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MARKET INDICATORS

AVBUYER.com

Business Aviation Market Overview Could the market indicators be pointing towards a moderation in pre-owned aircraft sales activity? Brian Foley sees evidence that the pre-owned jet transaction frenzy is tempering to more typical levels… hile one point does not necessarily make a trend, it appears that the industry has passed the high water mark of record numbers of pre-owned transactions and has just begun a return to more typical and sustainable levels. The first half of 2021 handily beat the same period in any recent year. Since then, a downward correction has taken shape, beginning in July and signaling what could be the start of more typical transaction levels. Not that July 2021 was bad, it’s just more on par with July in prior years. This change should act to moderate activity through yearend, but 2021 should still net out as a good year given the outsized first half. As shown in the chart, this July’s activity level was right around where things had been in previous years. The numbers at the time of writing showed there have been 167 pre-owned jet transactions in July 2021, which compares to 219 in 2020, 165 in 2019, 185 in 2018 and 162 in 2017. While there will inevitably be more July 2021 transactions as additional records are received and tallied, it is not believed that even a flurry of last-minute filings is going to change the picture that this July is beginning to look a lot like previous Julys. In no way is this anything cataclysmic, but rather a gentle nudge back towards the relatively healthy pre-owned activity levels which preceded the pandemic. In short, the sales

W

8  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

activity of the last couple of years was simply not sustainable, and excess demand seems to have at last been getting quenched.

What are the Probable Ramifications?

Assuming that transactions remain more tempered though the remainder of the year, one could logically assume that other industry metrics will eventually begin to change from extremes also, if they haven’t begun doing so already. page 12

Source: AMSTAT

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Jet HQ inventory FP September.qxp_Layout 1 24/08/2021 11:07 Page 1

Your Headquarters for Global Aircraft Sales

OFF MARKET 2007 LEARJET 45XR • Next Gen Avionics: ADS-B Out, • TCAS II w/ Change 7.1 • A1-A6 Inspections • Engines and APU Enrolled on MSP • New 8 Passenger Interior • Seating- June 2021 • ATG-5000 WiFi

2013 NEXTANT 400XTI • Serial Number: RK-244 • TT: 1,671 • Engines on Programs- TAP Blue • Collins ProLine 21 Avionics Suite • ADS-B Out/WAAS/LPV • Aircell GoGo Biz with ATG-4000

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

2006 AIRBUS EC 120B • Serial Number: 1436 • TT: 4,153 • Total Landings: 16,317 • Excellent Paint and Interior • Air Comm Air Conditioning • Impeccable Maintenance • History • 144 Month Inspection Completed (2018)


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2010 BOMBARDIER GLOBAL EXPRESS XRS SERIAL NUMBER 9371

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

2005 DASSAULT FALCON 900EX EASy EASy II BASELINE WITH ADS-B OUT, ENGINES & APU ON HONEYWELL MSP GOLD, DRY BAY MOD C/W SB 329, 2C INSPECTIONS & GEAR OVERHAULS C/W MAY 2017

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2014 GULFSTREAM G650 SERIAL NUMBER 6073

ONE OWNER SINCE NEW, NEVER CHARTERED, ENGINES & APU ON JSSI PLATINUM, AVIONICS & MECHANICAL COMPONENTS ON HONEYWELL MAINTENANCE SERVICE PLAN (MSP), FORWARD GALLEY WITH CREW REST & AFT CABIN DIVIDER, GULFSTREAM BBML VIASAT KU BAND, HONEYWELL LSZ-860 LIGHTNING SENSOR SYSTEM, EASA CERTIFIED & EU OPS CAPABLE, FRESH 12 MONTH INSPECTION

2013 GULFSTREAM G550 COMING SOON ENGINES, APU & AVIONICS ON PROGRAMS, 2020 COMPLIANCE - ADS-B OUT, CPDLC, FANS-1/A+, WAAS/LPV, RVSM, TCAS 7.1, HIGH SPEED WIFI, NEW REFURBISHMENT, WILL DELIVER WITH FRESH INSPECTIONS

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MARKET INDICATORS

AVBUYER.com

For example, while inventory is still hovering at, or near, all-time lows by historical standards, one would expect it to slowly replenish by virtue of fewer transactions. Thus, expect inventory levels to gradually creep back upwards from today’s levels, which are only half of what would be expected historically. And an improvement in the lack of inventory situation will aid both brokers and buyers. Similarly, currently rising pre-owned prices across the board will at some point begin to moderate and stabilize, before eventually falling again to find yet another state of equilibrium that matches market conditions. Pricing takes much longer to adjust supply and demand since buyer and seller behaviors, perceptions, and expectations take months or even years before adjusting to current market realities. This sets up the perpetual broker’s dilemma of sellers expecting a high price even as conditions swing back to

more of a buyer’s market. From that perspective the industry has always been a bit schizophrenic.

A Final Word to Average Days-on-Market

Average days on market also tells the story of a whitehot market now moderating a bit. According to AMSTAT, this metric has marched steadily upwards over the past year, rising from 459 days last summer to 619 days this summer, a 35% increase in just one year. While some of this may be explained by the very old and undesirable aircraft that are left in inventory (some of which may never move), it could also be indicative of aircraft taking longer to sell in general, which is supported by the reduction in transactions. In summary, while indicators are, or will soon be, suggesting a moderation of pre-owned sales activity for the rest of the year, an explosive first half will offset that, making 2021 another extraordinary year. MI www.brifo.com

page 16

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/

12  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

www.AVBUYER.com


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

• Next Gen Avionics ADSB-Out, TCAS 7.1 E, F, and G Insp. Completed • ATG-4000 WiFi in September2016 by Standard Aero • Asking Price: $3,595,000

Teflon Coating completed in 2017

Unique in Experience, Global in Scope. 2008 Hawker 4000 S/N: RC-11. Reg: N1119K • Asking Price: Make Offer • 5,600 hours since new • Engines enrolled on ESP Gold • Next Gen Avionics ADSB-Out, TCAS 7.1 • ATG-5000 High Speed Internet • Painted April 2018

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

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

+1.303.790.1050 hattaviation.com

2007 Learjet 45XR S/N: 45-346 • Asking Price: USD $2,495,000 • 9,046.54 hours since new • Engines and APU enrolled on MSP • Next Gen Avionics ADSB-Out, TCAS 7.1 • Delivered with recent A - D Inspections • Paint and Interior Refurbished in 2016

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2014 CHALLENGER 605 S/N 5966 3’000 TT, EASA, SmartParts, Engines GE OnPoint, APU MSP Gold, One owner since new, 12 Passengers

Make Offer

+41 22 533 1439 / +1 888 975 0409 TRADING.GENEVA@SPARFELL.AERO TRADING.USA@SPARFELL.AERO WWW.SPARFELL.AERO CHARTER TRADING SALES & ACQUISITIONS LEASING DESIGN

DEAL PENDING

2014 CITATION CJ4 OFF-MARKET

1995 CITATION ULTRA S/N 280

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

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

Make Offer

Deal Pending

DEAL PENDING

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

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

Ask Price $3,950,000

Make Offer

Deal Pending

Make Offer


CHARTER - TRADING - SALES &

ACQUISITIONS - LEASING - DESIGN

JUST SOLD

JUST SOLD

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

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Just Sold

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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

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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 24/08/2021 16:50 Page 3

MARKET INDICATORS

AVBUYER.com

Global Flight Activity Update The recovery in Business Aviation continues to surprise, according to WingX Advance. July saw 13% more business jet and turboprop sectors flown worldwide than in July 2019, and after the first months of 2021, the Year-to-Date (YTD) activity was back in line with the comparable period in 2019. The core characteristic of the rebound in activity has been the resurgent Light and Mid-size business jet activity since the spring. In the last three months these business jet segments have operated over 400,000 sectors globally, which is 14% more than in May to July, 2019.

US Flight Activity

In the United States, Business Aviation activity was up 12% compared to July 2019, and 46% more active than in July 2020. The US market has surged – business jet flights are up 25% compared to two years ago. The only two segments still trailing 2019 levels were at either end of the scale – the Turboprops and Bizliners. Super Mid-size Jets appeared to offer the sweet spot for demand in the region, with July seeing a 30% bounce, compared to July 2019. Light Jet activity ran 26% above July 2019, and Ultra Long Range Jet fleets, idle for so much of the pandemic, more-than-recovered in July 2021, with activity up 23% over July 2019. • The charter market was the hottest, with branded charter operators 16  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

generating 35% more sectors overall compared with July 2021, easily an all-time record. • Fractional operations were also running close to maximum capacity (25% more sectors than in July 2019). • Part 91 flights equally rebounded in July (22% more sectors flown than in July 2020), and may suggest a comeback in corporate operations. Overall, the busiest US States in July were Florida, Arizona, and South Carolina, respectively beating 2019 trends by 55%, 49%, and 46%. North Dakota, Maine and West Virginia were the only States still trailing.

European Flight Activity

July saw a significant bounce in Business Aviation activity in the European region, with an uplift in sectors of 14%, compared to July 2019. The summer spike was coming from the Light Jet segment, where activity soared 30% above the high point in July 2019. In contrast to the US, the recovery had yet to arrive in the Large Jet sector. More than ever, the clear signature of this summer’s demand has been leisure travel, with Ibiza, Mallorca, and Olbia all registering in the top 10 busiest destinations. And, the Greek islands saw particularly high activity; Zakynthos, for example, had 115% more business jet arrivals than in July 2019.

Rest of the World

Outside the US and Europe, there were mixed trends in recovery within the largest bizjet markets: • The situation in Canada was still very sluggish, consistent with ongoing restrictions; • Across Australia and New Zealand, despite international travel restrictions, domestic Business Aviation traffic was higher than ever; • In Africa and South America, where the pandemic is still very much at large, several countries have seen much higher business jet travel than before 2020; • In China, domestic Business Aviation travel beat records, but international traffic remained almost at a standstill; and • The Middle East, specifically the UAE, has seen very resilient business jet travel, especially from Dubai. “The jury is ‘in’, regarding the likelihood of a repeat of last year’s strong rebound in leisure travel demand, as restrictions ended,” summarized Richard Koe, Managing Director, WingX Advance. “These have materialized in full, well above even pre-pandemic summertime highs. “Barring the unlikely renewal of lockdown, the upswing should continue over the next few weeks, with the next question turning to the potential return of the corporate flyers.” MI www.wingx-advance.com page 20

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MARKET INDICATORS

In-Service Aircraft Values & Maintenance Condition

It has been 13 months since Asset Insight’s tracked ‘for sale’ fleet experienced an increase, and market analysis on July 30th revealed another 5.5% decline, with all four groups enthusiastically participating. The pool of 134 tracked models totaled 1,345 aircraft as we closed out July, representing a year-to-date (YTD) decrease of 29.7% (567 units), as well as a 42.3% year-over-year (YoY) decline.

Aircraft Values

Average Ask Price for Asset Insight’s tracked fleet decreased another 0.8% in July to a figure about half-way between the 12-month low and average values. The decrease’s protagonists were Large and Light Jets, as young, low-time, higher priced inventory continues to decrease. Overall prices are down 0.1% YTD, while YoY prices remained 1.0% higher.

Inventory Fleet Maintenance Condition

Asset quality continues to decrease as buyers demonstrated a preference for higher-quality aircraft during July. Maintenance Exposure followed suit, with the specific figures being as follows… • Quality Rating: Decreased 0.3% to post a 12-month low (worst) figure at 5.265. The rating kept the fleet within the ‘Excellent’ range, on Asset Insight’s scale of -2.5 to 10, but signaled that inventory assets would require more near-term maintenance to be completed. • Maintenance Exposure: Defined as an aircraft’s accumulated/embedded maintenance expense, Maintenance Exposure worsened (increased) 0.4% to $1.492m in July. The figure was slightly higher (worse) than the 12-month average, signifying upcoming maintenance event completion cost for inventory units will be higher.

Maintenance Exposure to Ask Price (ETP) Ratio

The ETP Ratio is a useful indicator of an aircraft’s marketability. It is computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ (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). July’s market analysis also revealed that over 51% of our tracked models, and nearly 59% of our tracked fleet, posted an ETP Ratio greater than 40%. The ETP Ratio decreased for the second consecutive month. It equated to 71.9% compared to June’s 73.5% and May’s record worst (highest) 76.3%. While not stellar, the figure is presently better (lower) than the 72.8% 12-month average.

Market Summary

As mentioned earlier, inventory continues to decrease, with 6.2% of the active fleet now available for our tracked models, compared to 10.7% during July 2020. With solid demand continuing, the lack of desirable aircraft, particularly younger, lower-time assets, is becoming quite alarming, and may well impact the number of transactions closing during H2 2021. page 22

20  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

AVBUYER.com

Table A

Fleet Maintenance Condition $ Million $1.55 5.40

$1.49

5.30

5.265

5.20

A

S

O

Quality Rating

N

D

J

F

M

Maintenance Exposure

A

M

J

J

$1.50 $1.45 $1.40

Quality Rating Trendline

Table B G500 2.7% G650ER 4.7% CL-350 7.1% F2000LXS 7.4% Citation CJ4 525C 9.1% F7X 10.0% King Air 350i 10.4% Global 6000 10.6% F900LX 11.5% Citation CJ3+ 11.8% Boeing BBJ 11.8% Learjet 75 12.4% F2000S 12.8% G280 13.3% Citation X+ 13.7% Phenom 300 14.5% Legacy 650 16.4% Citation CJ3 17.1% Pilatus PC-12 17.8% G150 18.5% Citation Encore + 19.2% Citation Sovereign 680 20.0% F900EX EASy 20.5% TBM 850 20.6% F2000EX 21.1% Citation XLS 21.2% Caravan 208-675 21.6% Global 5000 22.0% CL-605 22.5% Piper Meridian 22.8% King Air 350 - Post-2000 23.1% F2000EX EASy 24.2% G450 24.9% Citation Encore 26.6% Nextant 400XTi 28.7% Hawker 900XP 29.4% Citation CJ2+ 525A 30.5% G550 30.7% F900C 31.5% King Air B200 - Post2000 32.0% Global XRS 32.6% Embraer Legacy 600 32.8% CL-300 33.4% F900EX 33.5% Learjet 40 34.2% Citation Mustang 510 34.7% King Air 350 - Pre-2001 35.7% Learjet 60XR 35.9% Citation V Ultra 37.4% F50EX 37.7% Caravan Grand 208B 38.8% F900B 39.6%

GV 40.6% Piaggio P-180 II 40.8% Learjet 45XR 41.4% Citation CJ2 41.9% Hawker 4000 42.0% G200 42.7% Hawker 850XP 44.3% Hawker 750 47.2% Citation Excel 560XL 47.6% Phenom 100 48.1% King Air B200 - Pre-200150.7% G400 54.6% King Air 300 55.1% Hawker 400XP 56.0% Global Express 57.5% F2000 58.1% Citation CJ1 59.6% Premier 1A 61.5% Learjet 40XR 61.9% Learjet 45 w/APU 63.8% TBM 700A 67.3% Premier 1 68.4% Hawker 800XP 72.8% Citation V 560 73.1% CL-604 74.5% GIV-SP (MSG3) 75.1% Citation VII 75.9% Hawker Beechjet 400A 76.1% GIV-SP 87.4% King Air C90 101.4% Hawker 1000A 102.8% F20-5 103.8% F50 105.5% Learjet 31A 108.5% Learjet 60 114.7% Hawker Beechjet 400 118.5% Citation VI 120.6% Piaggio P-180 123.9% CL-601-3R 129.4% Citation ISP 129.7% Learjet 45 138.7% Citation II 143.1% Learjet 55 144.8% Hawker 800A 146.2% GIV 149.5% G100 172.0% CL-601-3A 180.4% Citation Bravo 187.3% Citation III 192.2% Learjet 36A 213.2% Learjet 31 213.7% Learjet 35A 262.6% Hawker 125-700A 273.1% CL-601-1A 323.8% GIII 465.9%

Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of July 30 2021 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)

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The Engine Assurance Program focuses specifically on older engine platforms and was created to deliver personalized customer service, increased residual value and cost savings of as much as $80 - $100 per engine per hour while using the same high-quality engine MRO shops and field service technicians as the other programs. With EAP, these aircraft can be operated more economically in the years to come: Honeywell TFE731-2 Lear 31 Falcon 10 Lear 35

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Honeywell TFE731-4 Falcon 50-4 Citation VII

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Honeywell TFE731-20 Lear 40 /XR Lear 45/XR

Honeywell Honeywell TFE731-40 TFE731-60 Falcon 900EX/LX Astra SPX Falcon 50EX Gulfstream G100 Gulfstream G150

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MARKET INDICATORS

Large Jets

Mid-Size Jets

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$ Millions

Jul-21

Jun-21

$2.95 Apr-21

$2.80

May-21

$2.90

$1.24

Feb-21

$3.00 Mar-21

$3.00

$1.26

Jan-21

$3.10

$3.20

Dec-20

Jul-21

Jun-21

May-21

Apr-21

Feb-21

Mar-21

Jan-21

Dec-20

Oct-20

Nov-20

Sep-20

Aug-20

$11.2

$11.6

$3.40

Oct-20

$11.7

$1.28

$1.27

Nov-20

$3.20

$3.60

Sep-20

$12.2

$3.30

Aug-20

$3.27

$ 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 5.700

5.207

5.300

Buyers seeking to acquire an aircraft by year-end are strongly advised to start their acquisition process as soon as possible. Identifying their preferred aircraft will be less than half the battle, as supply chain issues are impacting where, and how quickly, they can complete a pre-purchase inspection, and whether sufficient components and personnel will be available to complete any required maintenance or desired upgrades. Large Jets: Availability for Asset Insight’s 43 tracked models is now down to 5.4% of the active fleet, equating to a YTD availability decrease of 27.8% (120 fewer units) and a YoY decrease of 37.2%. Absorption of higher quality assets led to the Quality Rating falling (worsening) 0.3% to a 12-month low figure, but, at 5.554, the fleet remained within the ‘Outstanding’ range. Maintenance Exposure worsened (increased) to post the group’s second consecutive 12-month high figure and accentuate the picked-over fleet’s higher near-term maintenance cost. Ask Price decreased an additional 4.0%, and is now down 0.8% YTD as well as YoY. Primarily due to the mathematics of weighted averages, the ETP Ratio improved (decreased) for the second consecutive month. At 60.6%, July’s figure was slightly better than the group’s 12-month worst data-point. More importantly, with supply chain issues unlikely to improve any time soon, starting your acquisition/disposition efforts now, rather than waiting for Q4 to arrive, may determine if you are able to close a transaction this year – and it matters not whether you’re a buyer or a seller.

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Jul-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

5.100

Jun-21

5.200

Sep-20

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20

5.500

Feb-21

5.554

Aug-20

5.600

Mid-Size Jets: The group has been experiencing strong sales activity, pushing the remaining inventory to a 2.2% lower Quality Rating, dropping Mid-Size Jets into ‘Very Good’ territory and posting a 12-month low (worst) 5.207. Only 7.7% of Asset Insight’s 45-model tracked fleet was listed for sale, as opposed to 12.3% one year ago. By decreasing 158 units, availability was down 30.3% YTD and 45% YoY, while Maintenance Exposure rose 2.9% to a figure worse than the 12month average. Ask Prices increased 0.4% in July, but are below the 12-month average and down 5.3% YTD, and 7.9% YoY. The ETP Ratio rose to 69.4%, but remained halfway between the 12-month average and low (best) figures. Asset Insightto analytics (www.assetinsight.com) Asset Insight continues advise buyers seeking value-based assets to work with an experienced consultant, and a very capable team, able to best shape what is likely to be a diamond in the rough. Light Jets: While the ETP Ratio was able to post the group’s second consecutive monthly decrease, the figure was 110.0%, providing little reason for most sellers to celebrate. On the brighter side, fewer maintenance events are anticipated for the listed fleet, as noted by a 2.7% Quality Rating increase (maintaining the group’s ‘Very Good’ Rating). Those events will cost 2.4% less to complete, as July’s Maintenance Exposure decreased (improved) to a 12-month low (best) figure. The problem with this group is aircraft age, which pushed the average Ask Price down 2.5% in July to a new record low figure,

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Light Jets

Turboprops

Ask Price vs. Maintenance Exposure

Ask Price vs. Maintenance Exposure

$ Millions

$ Millions

$1.90 $1.80

$0.96

$1.70

$0.60 $1.70

$1.70

$1.05

$1.65

$0.50

Jul-21

May-21

Apr-21

Mar-21

Jan-21

Feb-21

Dec-20

Nov-20

Oct-20

$1.55

Sep-20

$1.60

$0.85

Jul-21

Jun-21

Apr-21

May-21

Feb-21

Mar-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20

$1.50

Jun-21

$0.95

$1.50

$0.55 $0.56

Aug-20

$1.60

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

5.200

5.200

5.115

5.200 5.100

5.100

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

and below the average Ask Price posted by Turboprops. What is most surprising is that Light Jetsanalytics have been actively selling, posting Asset Insight (www.assetinsight.com) the largest YTD decrease (34.5%), the largest unit availability decrease (191 units), and the largest YoY decrease (47%). All this activity has left only 5.5% of Asset Insight’s tracked active fleet (totaling 29 models) listed for sale, compared to 9.9% one year ago. With the average Light Jet sporting an embedded maintenance figure that is higher than its Ask Price, Asset Insight believes many inventory assets are in the hands of their final owner. Turboprops: Inventory for the 17 Turboprop models tracked equated to 5.1% of the active fleet at the end of July, having decreased 24.1% YTD (98 units) and 37.3% YoY. While maintaining a figure within ‘Very Good’ territory, the listed fleet saw its Quality Rating worsen 1.4% to 5.115, while Maintenance Exposure increased to a 12-month worst figure through a 2.1% increase. The Quality and Exposure figures may appear to be bad news, but they actually result from strong sales activity. Turboprops are experiencing strong demand, and Ask Prices reflected that in July, by increasing 1.9%. The group’s figure is now up 6.2% YTD,

Jul-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-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

and 7.5% YoY. With the ETP Ratio at 41.8%, just a hair above the 12-month average, most sellers are well-positioned to justify their Ask Price and extract good value for their aircraft. For buyers to negotiate value-based transactions, they need to closely evaluate, for their planned ownership period, the maintenance costs for each target serial number, and not simply rely on industry averages. T MI www.assetinsight.com

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

www.AVBUYER.com

Sep-20

Jul-21

Jun-21

May-21

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20

Aug-20

5.000

5.000

Jun-21

$1.40

$1.75

$1.15

UNDERSTAND THE BIZAV MARKET with AvBUYER.com

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Freestream 1 September.qxp 26/08/2021 12:43 Page 1

2012 G550 Airframe Total Time: 1332.4 hours. Aircraft Total Cycles: 467

2009 Falcon 7X S/N: 046. Airframe Total Time: 6504.8 hours. Aircraft Total Cycles: 1639

2012 Global 6000 S/N: 9432. Airframe Total time: 5,129 hours. Aircraft Total Cycles: 1100 FREESTREAM AIRCRAFT LIMITED

London +44 207 584 3800 sales@freestream.com

FREESTREAM AIRCRAFT (H.K.) LIMITED

Hong Kong +852 2724 5620 info@freestreamhongkong.com


Freestream 2 September.qxp 24/08/2021 11:24 Page 1

2001 BBJ S/N: 29972 YG073 Airframe Total time: 8901.7 hours Aircraft. Total Cycles: 3612

2015 in Service 2017 Boeing 787-8 VIP Airframe Total Time: Delivery Hours Aircraft. Total Cycles: Delivery

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

2011 G550 FREESTREAM AIRCRAFT LIMITED

London +44 207 584 3800 sales@freestream.com

FREESTREAM AIRCRAFT (H.K.) LIMITED

Hong Kong +852 2724 5620 info@freestreamhongkong.com


Market Insights 1.qxp_MARKET INSIGHTS 24/08/2021 12:45 Page 1

MARKET INSIGHTS

Market Insights: Jim Donath, Donath Aircraft Services Jim Donath shares his perspectives and outlook on the pre-owned business jet market with AvBuyer's Matt Harris...

onath Aircraft Services (DAS) has been trading in pre-owned aircraft sales and acquisitions for more than 40 years. Founded by Bob Donath, the company was formed in 1978, though Bob’s career in Business Aviation stretched back to the 1960s. Bob had been responsible for the oversight of the completion of ‘green’ Dassault Falcon jets at what is today StandardAero, prior to Dassault opening its Little Rock, Arkansas completions facility. Upon establishing DAS, Bob transferred his skill-sets: the company originally offered both completion management services and aircraft brokerage services. Completion management continued to be a focus of the company until shortly before Bob’s son Jim Donath joined the company in 2004. Though he grew up around Business Aviation, spending countless hours at the airport with his father, Jim’s career actually began outside the industry in sales and marketing positions. This included several years working for a top-three global advertising agency in Chicago, Illinois. Despite carving out a successful career for himself, the lure of Business Aviation never left him. “The DNA took over in 2004,” he tells AvBuyer. “That’s when I joined my father at Donath Aircraft Services, and I opened an office in Chicago. “I have to say, my early sales and marketing career experience was a great foundation for aircraft

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brokerage – not only from the sales and marketing perspective, but in project management and client relations.” Right from its establishment, DAS has always specialized in the acquisition and sale of jets in the Mid-size and Large Cabin segments. The company describes itself as a ‘boutique firm’, seeking to provide a ‘high-touch’ level of service. “Prioritizing our clients’ objectives over our own”, the company’s core values of Integrity, Professionalism, and Results have remained consistent from the beginning, says Jim. “The volume of transactions may be less than our larger friends in the industry, but clients frequently say they feel like DAS becomes part of their flight department during the course of a project,” he shares, as he joins AvBuyer to discuss his perspectives on the pre-owned marketplace... AvBuyer: There’s no doubting the market has its challenges for dealers and brokers, and also for buyers and sellers at the moment. What’s your take on this? JD: We certainly are facing a very challenging market dynamic right now, which is the extremely limited supply of aircraft. Inventory in the Mid-size and Large Jet markets has contracted for four consecutive quarters, and is the

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lowest it’s been since October 2008. Meanwhile, demand continues to grow, and so competition for a quality aircraft, when it becomes available, is very high.

experienced in 2020 as a result of the COVID pandemic – which, by the way, followed 13 previous years of price depreciation.

AvBuyer: Would you describe today’s market as ‘unique’, or have you seen a similar situation before in your aviation career?

AvBuyer: Which pre-owned markets are catching your eye at the moment? Is there anything that’s surprising you about pre-owned sales currently?

JD: This market is unique from anything we have seen since 2006-2007, just prior to the Great Recession. The supply versus demand equation feels similar to that time. But there are differences. For example, we are working from a much larger installed base compared to 15 years ago, so the pool of potential aircraft that might enter the market is bigger. There are around 600 Gulfstream G550’s in service now, and though that market is very tight currently, we do anticipate that some of those will filter into availability in the coming months. Most significantly, we have not seen the same run up in prices to date within the pre-owned inventory. Prior to the Great Recession, values had increased over consecutive years, to the point that some people began to view aircraft as an asset that only appreciates (of course, those who ventured into market speculation soon learned that wasn’t the case). Yes, we are once again seeing values increase across the market, but, largely speaking, these increases have yet to recapture the 10-20% drop

JD: The current trend I’ve described is impacting almost every corner of the pre-owned jet market. One reason for that is first-time buyers are entering the market at every level, from Light Jets to Large Jets. What I find surprising is that many older models are seeing the same high demand as the newer ones.

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AvBuyer: We’re fast approaching Q4 2021 already. How different is today’s market compared to a year ago, just prior to the “white-hot” sales activity of winter 2020/21? JD: As we approached Q4 last year, the market was in a state of transition as we were coming off the bottom. And the truth is, the rate of demand growth as we entered Q4 2020 took many by surprise. But at that time, inventory in the Mid-Size to Large Jet markets was still near an all-time high. So, buyers entering the market in late Q3 2020 were still finding value opportunities. By comparison, barring an external market shock, Q4 2021 should be

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a continuation of the trend line we have been experiencing over the last few quarters. AvBuyer: So, more of the same in Q4 2021, then? What would be your projection for pre-owned aircraft sales in 2022? JD: I expect Q4 to be very active, with those buyers motivated by Bonus Depreciation tax incentives again adding to the year-end sales push. But limited inventory will constrain the transaction volume. Values should continue to increase, at least for the short-term. Looking to the horizon for 2022, as always storm clouds can develop quickly and disrupt the market. But at present, those clouds seem to be fewer, and less ominous. I’m bullish on our market in general, and optimistic that flight activity will continue to grow. Our clients will place even greater value in controlling their own travel environment with private aircraft. AvBuyer: Finally, what one piece of advice would you offer a) buyers and b) sellers who are looking to get the best out of today’s pre-owned market opportunities? JD: There will be opportunities in this market for both buyers and sellers to be successful. For buyers, I advise the three P’s: Planning, Patience, and Perseverance. The planning aspect is crucial – have your team in place, be ready to execute,

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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“Looking to the horizon for 2022, as always storm clouds can develop quickly and disrupt the market. But at present, those clouds seem to be fewer, and less ominous.” and anticipate the next steps. To the extent you can, expand your parameters without sacrificing your key requirements. For sellers, my advice is to gain a thorough understanding of your model’s specific market, and where your aircraft is positioned within it. Leave some room for upside potential should prices continue to appreciate. And, finally, sellers should understand that the highest offer may not be the best offer. Other factors – such as buyer pedigree and terms of a pre-buy inspection – will impact the success of the transaction. More information from https://donathaircraft.com T

MAKE MORE INFORMED BUYING DECISIONS with AvBUYER.com

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Market Insights 2.qxp_MARKET INSIGHTS 24/08/2021 12:51 Page 1

MARKET INSIGHTS

eVTOL and the Future of Business Flying (Part One) 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 in to the future of business flying. ersonally, I see many similarities when it comes to eVTOL development with the Very Light Jet (VLJ) craze at the start of the millennium. Like the VLJ market, most of the companies developing eVTOL projects have never designed, built, tested, certified, produced, and supported an aircraft. Combine this with their lack of information on prices, operating costs and inability to show a real business case, could we be set to witness several more financial disasters? After all, the VLJ buzz had a failure rate of 95%, with just the Hondajet and Embraer Phenom 100 surviving, joined later by the Cirrus VisionJet.

P

Global Wealth Growth Fueling eVTOL?

Despite Covid-19 lockdowns having a knock-on effect on the global economy, in particular the travel industry, total global wealth grew 7.4%. According to the Credit Suisse Research Institute’s 12th Global Wealth Report, published recently, wealth creation in 2020 stayed immune from the various global challenges, thanks to the actions of governments and central banks to mitigate the economic impact of Covid-19. With the number of millionaires worth at least $56.1m rising to 5.2 million globally, according to Credit Suisse research, last year, more than 1% of adults worldwide became millionaires – fueled by recovering stock markets and increasing house prices. More importantly for the private jet market, the

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number of Ultra-High Net Worth Individuals (UHNWI), defined as those with investable assets of more than $30m, grew by nearly a quarter (24%) in 2020 – the fastest increase since 2003. So where has some of this ‘new wealth’ gone? Well over $1.3bn has been invested in the eVTOL sector, an 80% increase compared to 2019. The Global eVTOL Aircraft Industry Analysis, by BIS Research, projects the market will grow at a significant CAGR of 13.75% during the forecast period from 2025 to 2035. Morgan Stanley predicts that the market for eVTOLs will be worth $1 trillion in 2040, but as much as $9 trillion by 2050. The North America region is expected to dominate the global eVTOL aircraft market in 2025, whereas AsiaPacific is expected to have the highest growth rate during the forecast period. According to the World eVTOL Aircraft Directory, there are over 483 different flying machine projects worldwide and many of these have been well funded. The main reason people fly by private jet and/or helicopter is to save time. The main competitor of the eVTOLs is the helicopter. Helicopters are very expensive to fly and make a lot of noise. The advantage eVTOLs will bring to the market are lower operating costs, less noise, and being more environmentally-friendly.

Future Viability for Leasing Companies

Could the electrically-powered flying machines transform aviation in the 21st century the same way the

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jet engine did 70 years ago? Could this new industry turn helicopters into artifacts in a museum? Two leading leasing companies are Air Lease and AerCap, whose executives have expressed hesitancy about jumping into the electric aircraft segment. John Plueger, Chief Executive of Air Lease, said, “We just don’t see the business case yet. We don’t have enough information to really make a meaningful determination,” Still, he says, Air Lease continues “to look seriously” at the segment. The in-development electric aircraft sit outside Air Lease’s prime market (large jet aircraft with more than 150 seats). “We just don’t see any current [electric aircraft] technology that can address that,” explained Steven Udvar-Hazy, Executive Chairman at Air Lease. “It’s at the very early embryonic stages, and only addresses very short-haul opportunities.” Meanwhile, Aengus Kelly, Chief Executive of Irish lessor AerCap, said lessors need aircraft they can economically transfer between airline customers, including those in different regions of the world. He believes “electric powered vehicles are coming”, but when, and what missions they will ultimately perform, remains unclear. “The timeframe, what their missions will be, and as to whether or not they can be commercially-sized aircraft that can carry humans – that’s another matter altogether,” Nevertheless, another leasing company, Avolon, recently threw itself into the electric aircraft ring by

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committing to purchase up to 500 of Vertical Aerospace’s VA-X4 eVTOLs. Avolon, which pegged the deal’s potential value at $1.25 billion, has also become an equity investor in Vertical.

Survival of the Fittest: The Route to Certification

There is no doubt that eVTOL would bring ‘environmentally-free’ travel, lower costs, and offer the convenience of landing and taking-off vertically. The applications of this technology are many: From flying passengers from their homes to their private jets at the airport, to flying emergency medical supplies into remote locations, and many others. All of this would seemingly be at a fraction of the cost of a helicopter. Many of the eVTOL companies are making enticing claims, attracting a lot of investor capital. However, before we see these flying machines become part of our everyday lives, there are various obstacles that need to be overcome, including: • • • • •

Certification to fly cargo and passengers Infrastructure, such as vertiports Integrating eVTOLs into the current Air Traffic Control system 250 knot speed limit below 10,000 feet Getting to fully-autonomous passenger transport certification.

We are so used to all airplanes and helicopters looking pretty much the same; it is fascinating to see the

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“We are so used to all airplanes and helicopters looking pretty much the same; it is fascinating to see the many different shapes and sizes of the eVTOL aircraft.” many different shapes and sizes of the eVTOL aircraft. The question is, how many of these 483 projects will get certified and make a good return for investors? One of the first challenges regarding certification lies in the number of motors. Some of these designs feature numerous engines, and to get certified you need to fail all the engines, and combine the various failures. (So, for example, if engine two, three, and eight fail, what happens? Then if engines one, two, eight, and eleven fail, what happens?) This all then needs to be replicated in different weather conditions and will obviously take time to assess. Another factor regarding certification are the pilot qualifications, first and foremost deciding if you need a helicopter or a fixed-wing licence to fly an eVTOL – or will a whole new licence be created? Artificial Intelligence flying these machines will eventually happen, but that is probably ten years into the future, in the meantime human pilots are needed. Moreover, managing to lift-off and land vertically requires a lot of power, and this will require certain battery technology. If you are using a lot of battery

power for take-off, this translates into less range. Consequently, some companies are opting for a hybrid solution for their powerplant, allowing VTOL and longer ranges. And allowing eVTOLs to fly inside cities poses a safety problem, Air Traffic Control and infrastructure challenges. Joby Aviation, as well as producing their own eVTOL, plans to run its own eVTOL air taxi services in the US, and it's now working to vastly expand its takeoff and landing options, signing new partnerships that will let it put vertiports on top of multi-level parking lots across America. Looking at the various projects, some think that the companies with more funding are the ones that will succeed. To use a football/soccer analogy, it isn’t always the team with more money and best players that wins the trophy. I believe that designs leading to quicker certification will be the winners. Over the next two months, we will take a look at some of the most interesting players in this space. Stay tuned! More information from www.orvilleaviation.com T

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

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Market Insights 3.qxp_MARKET INSIGHTS 24/08/2021 14:14 Page 1

MARKET INSIGHTS

How to Gauge Your Aircraft’s Marketability Using the ETP Ratio How is it possible to understand buyer and seller dynamics when it comes to valuing a business jet or turboprop on the pre-owned market? Asset Insight’s Tony Kioussis offers some guidance. magine, for a moment, the following scenario where two business jets of the same make/model are listed for sale: The total time for one is 3,800 flight hours, while the second has accumulated 4,200 flight hours. Both are inviting prospective buyers to make an offer. Now imagine that one prospective buyer offers $4m for the higher-time aircraft, while another prospect offers $2.8m for the lower-time aircraft. Both offers are accepted. How did these two buyers justify their offer price? What the cursory information didn’t reveal is that the aircraft model in question has engine overhauls due at 4,000 flight hours, and the total cost to complete that event is estimated to be around $1m. The prospect seeking the higher-time aircraft ‘knows’ the engine Maintenance Exposure for that asset, since the overhauls were completed during the past 200 flight hours. In contrast, the prospect seeking the lower-time aircraft cannot be certain what may be found when the engines

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are inducted for overhaul, so they build a ‘safety margin’ into their offer price. Now let’s assume the two aircraft had 7,800 and 8,200 flight hours, respectively, and both invited prospective buyers to make an offer. One prospective buyer offers $2.6m for the highertime aircraft, while the lower-time aircraft receives an offer for $2.1m. This time, the seller of the higher-time asset accepts the buyer’s offer, but the lower-time aircraft seller does not. Why? The answer has more to do with buyer and seller dynamics than it does with either the asset’s Maintenance Exposure, or its price.

How to Calculate an Aircraft’s ETP Ratio (and its Impact on Marketability)

Maintenance Exposure is defined as the amount of maintenance cost accrued/embedded in an aircraft at any given point in time. If an aircraft is 75% of the way to a double-engine overhaul, and the overhauls are expected to cost $1m, then the Maintenance Exposure for the aircraft’s engines would equal $750,000.

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By calculating the percentage of the cost accrued, based on each scheduled maintenance event’s completion requirement, one can compute the asset’s total Maintenance Exposure. For any aircraft, Maintenance Exposure can accrue only so far before maintenance work must be completed. As an aircraft ages, however, its value decreases. There will come a time when its Maintenance Exposure will equate to more than 40% of the seller’s perceived value (or Ask Price). When a prospective buyer adjusts their offer to address the aircraft’s accrued maintenance (Maintenance Exposure), the offer figure is, all too often, unacceptable to the seller, and a deal is not reached. Often in such cases, it is not until an aircraft undergoes some major maintenance work, that its seller is sufficiently motivated by a higher price offered by a buyer, and the aircraft is sold. The Maintenance Exposure to Ask Price Ratio (ETP Ratio) may sound like theory, but its effect on an asset’s Days on the Market prior to a sale can be proven through historical data, making the

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ETP Ratio a useful indicator of an aircraft’s marketability. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s Days on Market increases by 30%, and, in many cases, by much more (see Table A, overleaf). Accordingly, the lower the ETP Ratio that an aircraft has, the more marketable the asset becomes. While we have simplified the ETP Ratio calculation by only accounting for engine maintenance on the four aircraft cited in our two examples at the start of this article, their ETP Ratio would compute as shown on Table B, overleaf (remember, the Engine has a 4,000 flight hours TBO).

How Do Engine Maintenance Programs Impact ETP Ratios?

One question that often comes up is the effect engine maintenance program coverage (referred to as Hourly Cost Maintenance Program, or HCMP coverage, within this article) has on the ETP Ratio.

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MARKET INSIGHTS

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HCMP coverage improves an aircraft’s ETP Ratio by reducing its Maintenance Exposure figure, commensurate with the level of HCMP coverage. For the examples in this article, where the only Maintenance Exposure item we assumed related to engine maintenance, each aircraft’s HCMP-Adjusted ETP Ratio would be equal to 0.0%. However, it is important to remember that all upcoming maintenance event costs (e.g., airframe, APU, etc.) must be included in our calculation if we are to accurately assess an aircraft’s marketability through its ETP Ratio. Based on the high cost of a major engine

maintenance event, such as an overhaul, engine HCMP coverage can substantially reduce an aircraft’s Maintenance Exposure figure, often lowering the HCMP-adjusted ETP Ratio below the 40% figure that statistics reveal to be the point of dramatically increasing the number of days an aircraft spends on the market prior to a sale. Table C (overleaf) depicts how Maintenance Exposure would be computed on a theoretical aircraft that has a small number of events under its Scheduled Maintenance Program. Let us assume the aircraft was manufactured 120 months (ten years) ago and has accrued 2,510 Flight Hours and 2,510 Landings/Cycles, and its APU has amassed 715 Total Hours. Let’s also assume the aircraft has Engine and APU Hourly Cost Maintenance Program coverage; that it’s interior has never been refurbished; and that the aircraft has not been repainted since first entering service. Interior Refurbishment and Exterior Paint are not (strictly speaking) part of an aircraft’s Scheduled Maintenance Program. However, accounting for their cost increases the ETP Ratio’s validity, since both are maintenance events requiring completion at some point. As their aircraft ages, owners should find it useful to estimate when their asset’s ETP Ratio is likely to exceed the 40% mark. If it has already done so, it would be worth evaluating whether Hourly Cost Maintenance Program coverage would help lower the Maintenance Exposure sufficiently to bring the HCMP-adjusted ETP Ratio below 40% again. Keep in mind that HCMP coverage has a cost, and does not provide a dollar-for-dollar benefit for

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36  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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MARKET INSIGHTS

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Total Aircraft Maintenance Exposure:

$1,023,183

Adjustment for Engine and APU Hourly Cost Maintenance Program coverage:

($479,533)

HCMP-Adjusted Total Aircraft Maintenance Exposure:

$543,650

“As their aircraft ages, owners should find it useful to estimate when their asset’s ETP Ratio is likely to exceed the 40% mark.” older assets. The exact financial benefit is determined by market conditions and each specific make/model’s market appeal. Nevertheless, it is safe to assume that if an aircraft’s age has lowered its industry value to $750,000, neither HCMP coverage, nor completion of a million-dollar engine maintenance event, is going to add one million dollars to the value of the asset. It is, however, likely to increase its appeal to buyers.

In Summary…

Statistics clearly demonstrate that the ETP Ratio can be a useful decision-making tool. If you are

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

38  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

selling your aircraft, then knowing your aircraft’s current ETP Ratio may help explain the purchase offers you are receiving, thereby helping you decide whether to accept an offer, or continue to assume the asset’s ongoing cost of ownership. Estimating your aircraft’s future ETP Ratio, based on anticipated utilization, accurate maintenance costs, and realistic residual value figures, can help you determine the ideal aircraft replacement period, allowing you to optimize your investment in an asset that will definitely depreciate as time marches on. More information from www.assetinsight.com

MAKE MORE INFORMED BUYING DECISIONS with AvBUYER.com

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GE OnPoint August.qxp_Layout 1 22/07/2021 10:13 Page 1

GE’s OnPoint

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GE’s OnPoint program provides the most comprehensive business jet engine coverage in the market. QOsƇivwejyppvmwoxverwjivsj}syv engine maintenance, support, and diagnostics, ensuring your aircraft retains the highest level of performance and residual value. With 100% coverage that starts day one, OnPoint delivers expertise straight from the engine OEM xsoiit}syƌ}mrk


Buying&Selling 1.qxp_Finance 24/08/2021 12:32 Page 1

BUYING & SELLING AIRCRAFT

Comparing BizJets: The Apples-to-Apples Approach When you draw up a shortlist of aircraft models that could

potentially serve your mission need, how do you really drill

down to establish the differences and identify the best one for you? René Armas Maes shares some insights…

o execute a comparative analysis of suitable aircraft for a private or ondemand Business Aviation operation, it’s first necessary to decide on the main criteria. But how? The following paragraphs provide guidance… Some examples might include brand-new vs. pre-owned aircraft; non-stop range capability when carrying a full payload, without performance limitations; cabin comfort for passengers; and the lowest acquisition and operating costs within the field of comparison. It is key to understand that a number of other aircraft could meet or exceed your initial criteria, but that most of these could be in another cabin segment and be significantly more costly to operate. For the purposes of this article, we will discuss a potential purchase of a brand-new MidSize Jet. The first step is to identify the subject aircraft for the comparison, along with other alternative suitable aircraft. In total, no more than seven jets should be on your initial list. The analysis should primarily focus on:

T

• • • •

Route Performance Technical Specifications Passenger Comfort Direct Operating Costs (including ownership costs).

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Route Performance

To effectively analyze aircraft route performance, ask aircraft Original Equipment Manufacturers (OEMs), or the aircraft broker to perform sectorspecific route analyses based on a series of assumptions. The following assumptions, or a variation of them, need to be considered: 1. 2. 3. 4. 5.

6. 7.

The route performance based on maximum payload; The route performance, based on power setting (i.e. at long range cruise speed while flying at optimal flight level); The route performance factoring both summer and winter winds (typically, en route winds are estimated at 85% annual probability); The route performance factoring international fuel reserves as per FARs (Federal Aviation Regulations); The route performance factoring ‘time and fuel’ estimate: Here, block time and fuel are used to include allowances for taxiing (approx. 10 mins), takeoff, climb, cruise and descent; The route performance factoring temperature conditions (for example ISA+10°C); The route performance factoring routing and distance (i.e., X to Y nautical miles range, or the range bracket expected to be required for the majority of your planned missions). www.AVBUYER.com

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When factoring distance, it’s important that the Equivalent Still Air Distance (ESAD) calculation is considered. This is the actual distance, plus a correction for the effect of wind over the route. For example, a headwind would cause the ESAD to be greater than the actual distance, whereas a tailwind would cause it to be less. The use of these assumptions will ensure consistency across all of the results provided by the manufacturers. Whether you are buying new or considering a pre-owned aircraft, a consultant will be able to help you develop these key assumptions to create an apples-to-apples comparison and evaluation. Without such data, it will be almost impossible to compare multiple business jet or turboprop options. In the absence of a standard set of assumptions, OEMs will naturally seek to show their own product in the best light. When undertaking consultancy work for clients in this area, I will usually consider hiring an independent flight planning firm to develop a limited-scope performance analysis and to calculate a selected sub-set of results for the subject aircraft in order to double-check the numbers. I tend to find that many aircraft buyers might not attempt to independently verify the manufacturers’ route performance data through a third-party, but this is essential to avoiding any www.AVBUYER.com

surprises after you have purchased the aircraft. Table A (overleaf) shows a typical OEM sectorspecific route analysis capturing a number of pre-set assumptions.

Technical Specifications

In addition to the Route Performance analysis, it will be vital to perform a Technical Specification comparison of the subject aircraft (and the alternative aircraft), based on specifications provided by OEMs and other published sources, such as Conklin & de Decker. At a minimum, this evaluation should include: • Basic aircraft configurations; • Passenger capacity; • Cabin cross-section; • Luggage capacity; • Payload; • Operating weights; • Fuel capacity; • Range; • Speed (including high, normal and long range); • Runway performance; • Aircraft availability; • Deposit schedule, etc.

How to Proceed with the Results

After the initial examination, proceed and identify the subject aircraft; ideally a shortlist of

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BUYING & SELLING AIRCRAFT

“In addition to the Route Performance analysis, it will be vital to perform a Technical Specification comparison of the subject aircraft (and the alternative aircraft)...”

no more than three aircraft that have similar characteristics. Assess, too, in which metric(s) they differ – for example, they could be very similar in terms of block time and cruise speed, but may differ significantly in terms of fuel burn performance. Pay close attention to payload performance, and the route-specific sectors. Focus on the aircraft that can complete the majority of missions without any limitations, as per the assumptions made. Identify which of the subject aircraft generally meets all the specified conservative (or perhaps even the very worst case scenario criteria, since there could be a subset of more stringent assumptions). And, finally, create a scorecard that will allow you to examine all of the various factors in the aircraft comparison exercise with the intention of identifying the correct one. For example, which is the best performing aircraft with the lowest cost (both from an operating cost and an acquisition cost perspective)? Which aircraft offers the highest maximum payload at maximum fuel?

Undoubtedly other questions will be answered based on your mission need.

Final Thoughts

If you are to make the highest return on investment decision, be sure to analyze the hourly aircraft direct operating costs, including cockpit and cabin crew, fuel, maintenance, ownership, insurance, landing, parking, navigation, ground handling, crew layover, and catering costs. And, if buying new, don’t forget to include in your analysis OEM warranties, service, support, training and any other sales incentive you may be able to negotiate, as these may improve one OEM’s aircraft offer above the others.

Next Time…

In the next article, we’ll discuss which assumptions should be made to compare aircraft in a Direct Operating Cost analysis, and what to look at when comparing different levels of OEM warranty, service, hourly maintenance programs, coverage levels and technical support. T

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

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MAKE MORE INFORMED BUYING

& SELLING DECISIONS with AvBUYER.com

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OWNERSHIP

When to Form a Special Purpose Entity in BizAv Aircraft are often owned by companies or partnerships incorporated solely for the purpose of owning that asset. But why are these Special Purpose Entities formed, and what are the right situations in which to do so? Katie Bancroft of Jaffa & Co explores… here are a few reasons why an entity, often known as a Special Purpose Entity (SPE), is set up exclusively to own an aircraft. To do so, first an owner will likely consult with a group of industry specialists (such as lawyers, tax advisors and management companies) to work out the best way to structure their ownership of the asset before it is purchased. The ultimate solution will have a lot of factors, including where the aircraft will be based, where it will operate, whether it will be chartered, and the requirements of any financier (where applicable). Other factors, including the cost and implementation time, will also be relevant and, in fact, could be key. The goal of the structure is usually to ensure that once delivery has taken place, the owner will be able to use the aircraft the way they want, when they want, with as little interference or unnecessary expense as possible (i.e. tax efficiency). Straight after delivery, and based on the solution recommended by the owner’s advisors, it is usual for an aircraft to be imported into its area(s) of operation. For the UK and EU, this import will deal with VAT (now separate and distinct in the two

T

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zones), and the aircraft may be exempt (or VAT zero-rated) depending on its ownership structure and use. As an example, if the owner’s advisors conclude that ownership through a Maltese company is best, based on where the aircraft will operate and how it will usually be used, a Maltese company will need to be incorporated.

SPEs: Why go to the Trouble?

Why can’t an owner just use a company they already have set up though? That is a valid question and, you would think, would save the energy and expense of setting up a new company. The answer is all about protecting the asset by ‘ring-fencing’ and distancing the asset, which protects the owner as well. Each company has its own legal identity, meaning that it can sue and be sued. An existing company will have its own history of dealings and may have its own liabilities. This all raises the risk of an action against that company. If, for example, an existing company took ownership of the aircraft and then became embroiled in a multi-million-dollar legal wrangle or went bankrupt, the aircraft would be an asset of www.AVBUYER.com

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the company and may need to be sold too as part of the claim or bankruptcy. Having the aircraft owned in an SPE (also sometimes known as a Special Purpose Vehicle, or SPV) protects the asset because the company has no previous dealings, and no debts. The SPE has a completely new slate. The SPE also protects the owner if a claim is ever brought against it. Say somebody alleges that they are injured on-board the aircraft and they bring a claim against the SPV as the legal owner: In most instances, the liability of the SPV is limited to the assets of that SPV only. Usually, a claimant cannot ‘reach through’ the SPV and try to claim the assets of the real person behind it (i.e. the ‘beneficial owner’ (see below)). Anything the beneficial owner owns – their home, their savings, their car, etc. – should be safe from the injured party’s claim. It is worth noting that if an aircraft acquisition is being financed, a financier will very likely: i) Have its own requirements as to the jurisdiction of the relevant SPV (ultimately linked to the enforceability of their mortgage); and ii) Ask for a personal guarantee from the www.AVBUYER.com

O

beneficial owner because of the ‘ring-fencing’ and limited liability that occurs with SPEs. Under a personal guarantee, the beneficial owner promises to meet any debts, liabilities or claims arising from the loan that the SPE cannot meet. (The beneficial owner is “on the hook” for everything.) Owning assets through SPEs adds a layer of privacy to transactions, which is useful considering that vast amounts of documentation bearing the name of an aircraft’s owner is generated through the acquisition, ownership and management of process. Moreover, aircraft registries are almost always public, as is the International Register, and spotters frequently share owners’ information online along with the prized photos they have snapped. For these reasons, most owners value the privacy an SPE provides.

Are SPEs Ever a Bad Idea?

In the vast majority of cases, an aviation lawyer’s advice would be that an aircraft should be owned by an SPE. But is there ever a case when would the opposite be a good idea? If the expense of incorporating and maintaining

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“Owning assets through SPEs adds a layer of privacy to transactions...”

an SPE through a Corporate Service Provider (CSP) is disproportionate to the aircraft’s value and/or the asset in question is a light aircraft to be flown locally, it may make sense not to use an SPV. (CSPs, incidentally, should certainly be used since their handling of the intricate, hoop-jumping aspects of company admin is invaluable). Alternatively, if an owner is purchasing a new aircraft directly from a manufacturer, it may be worth doing so in their name rather than through an SPE so as to benefit from consumer protection laws, such as an manufacturer's duty to deliver a product which meets certain standards of quality, which would not apply when purchased through an SPE.

KATIE BANCROFT is an expert aviation lawyer, who works for Jaffa & Co out of Farnborough Airport. She advises on all aspects of the sale and purchase of business jets and helicopters. More information from www.jaffa-co.com

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Consumer rights are much broader than any rights afforded to a purchaser contractually through the purchase contract for the aircraft.

In Summary

If you are preparing to acquire a new or pre-owned business jet in the near future, clearly the decision over whether to form a Special Purpose Entity or not should factor in your thinking. As demonstrated in this article, SPEs are not ‘one size fits all’ and must be tailored to your individual circumstances. For this, it will be worth a short call with a specialist aviation lawyer to check what would protect you best! T

MAKE MORE INFORMED AIRCRAFT OWNERSHIP DECISIONS with AvBUYER.com www.AVBUYER.com

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Assent Aeronautics September.qxp_Layout 1 24/08/2021 12:42 Page 1


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OWNERSHIP

How to De-Register & Re-Register Your Jet Fuss-Free

De-registering a business jet from one registry and re-registering it in another jurisdiction can be a complex, time-consuming process. Chris Kjelgaard asks leading aviation law firms from around the world how owners can make the task as quick and easy as possible… hether or not the aircraft is being sold in the process, the key takeaway for every businessaircraft owner who wants to de-register their aircraft from one country’s registry and have it registered in another jurisdiction is that the process requires both time and detailed advance planning, in order to be accomplished with the minimum of cost and fuss. Obtaining expert advice on how to successfully overcome the many legal, operational, technical, financial, and tax issues which apply during de-registration and reregistration is always vital, as the highly experienced counsellors with four leading aviation law firms in the USA,

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Canada, the UK and Malta agree. That doesn’t mean that sellers, buyers, and continuing owners of aircraft which are to be de-registered and reregistered should only consult law firms, says Daniel Aquilina, Partner in Maltese commercial law firm Ganado Advocates’ Ship Finance and Aviation practice. “If we were approached to help, we would set out timelines and say what is expected,” in terms of the arrangements the parties to the process should make and the actions they should take, says Aquilina. “We will suggest that the client gets advice from the right people” for every aspect of the process — legal, technical, remarketing, operational and tax. “Everyone [consulting in www.AVBUYER.com

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and making the arrangements and actions required for deregistration to happen. Some say a couple of weeks can suffice in some cases, offering enough time to develop a “roadmap” of required actions and arrangements, but others say some deregistration processes can take months. Re-registration in a new jurisdiction is also not a slamdunk. Depending on the new registry’s documentation, technical, ownership and operating regulations, that process can take time, effort and not-inconsiderable cost — particularly when the new registry requires the aircraft to undergo a pre-registration physical inspection, and to have modifications made to meet that country’s airworthiness requirements. For instance, notes Scott Burgess, Founder of Fort Lauderdale-based Aviation Legal Group, for aircraft operated privately, Venezuela’s civil aviation regulator requires all piston engines which have reached 12 years of age to be removed and replaced by younger ones — no matter what the actual time and overhaul status of those engines are.

National Registries Have Differing Characteristics

such areas] has their own area of expertise, and it is important to keep the boundaries” between each consultant’s particular specialty intact, he says. “You need good local advice, a seasoned aviation lawyer who knows what they’re doing where you are located,” says Ehsan Monfared, a Partner with Toronto aviation law firm YYZlaw. Because the worldwide aviation legal community is a small one, most experienced aviation law firms have close contacts with their counterparts in other countries, and so can help aircraft owners obtain excellent advice both for deregistration from one country and registration in another, he says. “You need the rapport” that aviation counsellors have with other nations’ aviation law firms Monfared adds. “Individual registries themselves can’t offer that.”

De-Registration: How Early Should you Plan?

Opinions differ among the aviation legal counsellors AvBuyer surveyed in different countries as to how far in advance the de-registering owner should begin planning www.AVBUYER.com

At least to some extent, the diversity of opinion AvBuyer found on the amount of time required to prepare for deregistration of an aircraft reflects the differing characteristics of each individual jurisdiction’s registry. One important characteristic that can affect the time and effort required for successful de-registration is how well the registry is resourced in terms of staffing for the volume of transactions it handles, according to Matthew Xerri, Senior Associate in Ganado Advocates’ Ship Finance and Aviation practice. Another key characteristic for the amount of deregistration preparation required is the registry’s set of rules and requirements for issuing customs export certificates of airworthiness. This can be a particularly complex area. In the case of the FAA, the airworthiness regulator will not issue an export certificate of airworthiness to an aircraft which has already been de-registered. So the aircraft has to be re-registered back on the original registry — for the USA, the FAA Civil Aviation Registry — before the authority will award the certificate, says Burgess. Malta has the same requirement, but as a member of the European Union it usually only issues export certificates of airworthiness when the aircraft is due to be re-registered in a non-EU country, Xerri adds. Before de-registration, if an export certificate of airworthiness is required the aircraft must undergo an inspection and have its fireproof ID plate removed, and its Mode S transponder and Emergency Locator Transmitter codes wiped. This process is usually conducted by a Continuing Airworthiness Maintenance Organization (CAMO), with which the owner of the aircraft must agree a downtime slot for the work to be performed. Ganado Advocates advises its clients to apply to the

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OWNERSHIP

Maltese registry for de-registration four weeks before they want de-registration to occur. De-registering an aircraft too early can be costly. Reregistration to the original registry in order to obtain a required export airworthiness certificate can take time, during which the aircraft remains de-registered. After more than two weeks, continuous clear title and proof of airworthiness may be lost from the point of view of the airworthiness authority of the country which operates the destination registry on which the owner is applying to have the aircraft re-registered, warns Burgess. This is one of the most common mistakes that owners who haven’t done their de-registration homework make, he says.

Documentation and Inspections

Re-establishing proof of title and airworthiness can be an expensive process, as can be rebuilding the required maintenance documentation for an aircraft, if it is lost for any reason during the de-registration/re-registration process. Burgess cites one instance of an owner needing to spend $800,000 on rebuilding the documentation for one business jet, in a process which took eight months, during which the aircraft could not be re-registered or fly. A third important characteristic which varies among national registries is whether or not the registry requires the aircraft to undergo an airworthiness inspection before it issues the export certificate of airworthiness to allow customs clearance. Mexico and Brazil both require such inspections before an aircraft can be sold from their registries, says Burgess — and both have mandated that the inspection must take place in the country of pre-sale registration. If it has not already been inspected by the Mexican 50  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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authorities, any aircraft due to be sold from the Mexican registry and be registered elsewhere must return to Mexico for its pre-sale inspection before it can be de-registered. That is often not an onerous and overly expensive task for owners of aircraft due to be re-registered in the USA, because the two countries share a border. But the same requirement by Brazil can make a return to that country for pre-sale inspection and then a consequent delivery to the USA a rather more time-consuming and expensive matter, Burgess notes. From the inspection viewpoint, it is equally important for those wishing to register an aircraft in a new jurisdiction to find out whether the aircraft needs to undergo a preregistration inspection in that country. Any work needed for the aircraft to be deemed airworthy in that country must have that work performed before the aircraft is allowed to fly with its new registration.

Centralized and Non-Centralized Registries

Yet another key national-registry characteristic which can affect the time it takes to de-register an aircraft is whether the registry is centralized or non-centralized, according to Bill Clark, Founder of YYZlaw. The most important difference between the two types of registry is that, while centralized registries hold documentation of all of the financial and legal interests and obligations in the aircraft, non-centralized registries do not, according to Clark. Canada is a non-centralized registry (as is Mexico), but the US registry is a centralized registry. Obtaining details of all of the financial and legal obligations and title interests in an aircraft on a non-centralized registry can take owners more time than it can owners of aircraft on a central registry. Neither Canada nor Mexico require involuntary liens such www.AVBUYER.com

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as Mechanics’, Hangar Keeper and Fuel liens to be filed with the registry, whereas the FAA does, according to Burgess. (However, the FAA does not require tax liens to be filed with the Civil Aviation Registry.) Regarding the time and advance planning required for de-registration, another important difference between the Canadian registry and the US registry is that Canada does not have an instantaneous de-registration process, according to Clark, whereas the FAA registry’s filing system allows instantaneous de-registration. Transport Canada officially has a 60-day de-registration service (though firms, such as YYZlaw, which have close and frequent contact with Transport Canada usually can accomplish the process much more quickly than that for their clients). Unprepared owners who haven’t planned adequately for a possibly protracted de-registration process when selling their aircraft internationally can be caught out by this, sometimes expensively. “De-registration from Canada can be delayed, and foreign buyers do not like to release funds or redeem anything until de-registration has occurred,” says Clark.

Owner and Operator Registries

Also important as a characteristic is whether the register is owner-based — like the FAA registry in the US — or operator-based, like that of Malta, according to Burgess. To allow registration on some owner registries, the owner must usually be a citizen or a permanent resident of that country. However, in the FAA registry’s case, there are three other mechanisms by which beneficial owners who are not citizens or permanent residents of the US can legally have their aircraft allocated a US registration. (The US and Australia are the only two countries with owner-based registries which 52  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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allow registration for aircraft with title held by the equivalent of non-citizen trusts, according to Clark.) For the FAA Civil Aviation Registry, the three mechanisms are: 1) Owner trusts 2) Voting trusts and 3) The “Based and Primarily Used” in the USA exemption. The first two mechanisms require that legal title to the aircraft be vested in one of the two types of trust, which are administered by legal trustees — of which the largest as regards business aircraft beneficial-owner trusteeship are the Bank of Utah and TVPX, says Burgess. The third mechanism requires that the aircraft be registered to a corporation based in a US state or territory, and that at least 60% of its operations are within US states and/or territories. However, while an operator-based registry might well require that the aircraft’s operator possess an AOC issued by the airworthiness authority of the country in question, and thus effectively have citizenship in that country, in many cases the actual owner of the aircraft need not necessarily be a citizen of that country, according to Burgess. With that said, if the owner of an aircraft registered on an operator-based registry wants the aircraft to be operated for commercial charters, the owner and operator must provide the registry with a substantial amount of documentation to prove the operator is indeed operating the aircraft on behalf of the owner, says Xerri. In Malta’s case, the two parties must provide the registry with a lease or management agreement which proves the operating arrangement exists. The operator must provide the registry with its AOC, to prove both that its AOC is valid

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and also that the specific aircraft to be operated for the owner is listed on the AOC. And the owner needs to show the registry the bill of sale to prove ownership, as well as the de-registration certificate from the previous registry, and also documentation showing that the aircraft is free from encumbrances. If a mortgage or other financial arrangement does exist on the aircraft, the owner must provide documentation showing that. Meanwhile, a corporate owner also needs to show the registry its articles of incorporation or other legal documentation proving its legal existence as a corporation. Last but not least, the owner and/or operator must show the registry all of the aircraft’s technical documents to prove it is airworthy and can legally be allowed to operate, including its radio license, its airworthiness certificate, its insurance policies, photographs showing that the aircraft bears the right registration, and its aircraft manuals.

Other Factors

In all de-registration transactions, “Having enough advance notice is always crucial,” both for the registry and for the owner, says Xerri. And so is “having a clear picture of what needs to be done regarding who will be the operator of the aircraft,” and knowing the owner’s intention as to whether the aircraft will be operated privately or operated commercially for charters. As an operator registry, Malta allows aircraft to be registered by operators which have an Air Operator’s Certificate (AOC) issued by Transport Malta’s Civil Aviation Directorate. The diversity of legal opinion surveyed by AvBuyer on the advance timing required for planning and arranging deregistration also reflects each jurisdiction’s particular legal 54  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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framework covering matters such as customs exportation and importation; how any required documentation must be transmitted; and tax and insurance considerations, according to Burgess. For instance, he outlines the complicated sequence of transactions which would be required for an aircraft which hypothetically is to be de-registered from the German registry and then re-registered on the FAA Civil Aviation Registry to an owner trust which is holding the aircraft legally for an owner based in Colombia, who wants to base the aircraft in Colombia. • • •

First the seller must obtain an EASA export certificate of airworthiness for the aircraft. Then the buyer or trustee needs to achieve customs importation in the USA. But because the aircraft is actually to be based in Colombia, the owner must then achieve US customs exportation and subsequent Colombian customs importation, with the aircraft still bearing a US registration.

The nature — and in some cases absence — of diplomatic relationships between certain countries can be very important in de-registration and re-registration decisions, as can the aviation community’s general view of how suitable a particular jurisdiction is from the aircraft remarketing and resale value viewpoints. Financiers and insurers of aircraft are most comfortable with registration being in those jurisdictions which signed the Cape Town Treaty — formally known as the Cape Town Convention on International Interests in Mobile Equipment — and thus joined the International Registry for filing of security and other interests in aircraft.

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“De-registering an aircraft too early can be costly. Re-registration to the original registry in order to obtain a required export airworthiness certificate can take time, during which the aircraft remains de-registered.”

These countries all allow aircraft to be repossessed internationally by lessors or other financiers in the event of financial or other contractual default. Insurance underwriters can be influenced by bilateral and multilateral diplomatic relations between countries, and also by the levels of war and terrorism threat in particular geographic areas or regions. This is particularly true for underwriters of political-risks insurance on aircraft, and they may be unwilling to underwrite that type of insurance for aircraft registered or based in certain jurisdictions. “The underwriting market is very tight right now — it’s a lot easier to get a quote for an FAA-registered aircraft, but based somewhere else then it is the other way round,” says Burgess.

Re-marketability, and Personalized Registrations

Additionally, “You should always think of re-marketability,” says Mark Bisset, Head of the Aviation Finance Unit at London-based, globally present law firm Clyde & Co. “Clearly the US is the biggest market, and many brokers would say it enhances an aircraft’s re-marketability if it is already on the ‘N’ register [FAA Civil Aviation Registry].” Additionally, “Having a CAMO’s oversight of the aircraft is important in [maximizing] resale value,” says Burgess. “It’s more important than where the aircraft is registered, in many cases.” Bisset also cites each individual registry’s responsiveness, and its speed and quality of service, as important factors in determining if an owner finds a given register a suitable one on which to re-register its aircraft. But several other considerations can weigh with owners in deciding where to re-register their aircraft, whether or not

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it is newly purchased or is transferring registries for operational or citizenship reasons. One is the jurisdiction in which a preferred charter operator is domiciled, in cases where owners want to have their business aircraft make money for them, says Bisset. Another is the perception — misguided or otherwise — on the parts of some nations’ citizens that certain other countries’ governments would make use of any aircraft registration documents filed in those countries to look into aircraft owners’ private financial affairs, Bisset adds. And, yet another is that certain national jurisdictions’ registration prefixes and suffixes lend themselves to personalized registrations, rather like the personalized license plates available for cars. Recently, the Isle of Man with its ‘M’ prefix and Guernsey’s ‘2’ prefix, both followed by a dash and then four letters, have particularly seen this practice, with individual registrations like M-AGIC and 2-COOL proliferating.

The Most Vital Factor of All

However, probably the most important consideration of all for any owner considering de-registering an aircraft for sale and re-registration by a new owner on another registry, or even by the same owner just wishing to change registries for operational or other reasons, is the need to make sure the aircraft meets the airworthiness requirements of the country of new registration. Before de-registering and seeking to re-register an aircraft, owners and prospective buyers should “check for any Supplemental Type Certificates (STCs) that are installed on the aircraft,” YYZlaw's Monfared advises. National airworthiness rules and criteria differ from

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country to country, and if an owner fails to find out what all the STCs are for a particular aircraft are, “you might not be able to register it if the destination registry hasn’t approved a particular STC that is installed on the aircraft.” Monfared cites the example of a Falcon 900EX which was de-registered from the FAA registry, destined for Canada, but then it was found that the divan in the back of the aircraft had an STC which Transport Canada had not yet approved. As a result, the aircraft had to be re-registered in the US, with a non-citizen trustee, for about nine months — the period it took for Transport Canada to approve the STC. Another, somewhat less expensive, but still exasperating, mistake was the $27,000 modification bill for an EASAapproved stick shaker in an aircraft to be removed and replaced by an FAA-approved stick shaker during a US reregistration process. “This is very important because of the cost implications,” says Bisset. “Buyers need to be aware of this and get an inspector to look at the aircraft,” to verify what modifications (if any) need to be made to allow an aircraft to meet the airworthiness regulations in its planned new jurisdiction. “This can be difficult at the moment because of the Covid-19 restrictions, and there is a shortage of inspectors” currently.

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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Advice From the Experts

The most important watchword for owners or buyers seeking to re-register an aircraft is “patience”, according to Clark. “Undertaking an international business-aircraft transaction is a six-week process, if not more.” In many cases the aircraft will require a pre-purchase inspection by a CAMO, which will take two weeks. Then the client and the CAMO will have to spend about a week discussing what, if any, repairs might be required. Then more downtime might be required to perform any required repairs. “So at least six weeks in advance, you have to start focusing on it,” he advises. Aquilina has equally valuable advice for those wishing to de-register and re-register a business aircraft. “Never assume one jurisdiction is like another, and that one jurisdiction is the same as another,” he says. “Some clients tend to assume too much. Don’t take anything for granted.” To achieve de-registration and re-registration with the minimum of fuss, “the key is to get good, qualified help to put the plan together, and then shepherd the plan to get everything to where it’s supposed to be,” concludes Burgess. “These things involve cost, but it’s less if you plan for them, rather than having to unscramble the omelet” after failing to plan ahead. T

MORE INFORMATION FROM:

Aviation Legal Group: www.aviationlegalgroup.com/ Clyde & Co:

Ganado Advocates: YYZlaw:

www.clydeco.com

www.ganado.com

https://yyzlaw.com

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Privacy Considerations for Aircraft Owners (Part 3) Concluding his series exploring ways in which aircraft owners can protect their privacy relating to aircraft ownership and operating information, James Janaitis, Counsel with Crowell & Moring’s Aviation Group, explores privacy protection from flight tracking software…

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esides publicly accessible FAA records, the other major privacy risk for General Aviation aircraft owners and operators comes from flight tracking (and related) software products that enable easy access to flight tracking information. The amount of flight-related information available on these products is extensive, and includes aircraft ownership information, departure and destination airports, and timing of aircraft take-off and landing, as well as altitude, speed, and heading during a flight. This information is available both on a live basis for ongoing flights, and on an historical basis for completed flights. The services offer both free and subscription options, with the subscription option generally including a broader scope of data and more historical records. 58  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

Air Navigation Service Provider Data – LADD Program

The data used by these products comes primarily from two sources. The first is Air Navigation Service Providers (ANSP). The applicable ANSP varies between countries and regions, but in the United States the air navigation services provider is the FAA’s air traffic control network. The ANSP collects data from various sources including radar systems, air traffic control towers, flight plans, and ADS-B positioning data. It then provides third-party companies with access to the information, which the companies provide to the general public through their flight-tracking software. Recognizing that not all aircraft owners want their flight data to be readily available to the general public, the FAA has implemented the Limiting Aircraft Data Displayed (LADD) program.

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“Recognizing that not all aircraft owners want their flight data to be readily available to the general public, the FAA has implemented the Limiting Aircraft Data Displayed (LADD) program.”

The LADD program superseded the more limited Block Aircraft Registry Request (BARR) program with which many aircraft owners and operators are familiar. There are two levels of blocking available under the LADD program: 1)

‘Subscriber-Level Blocking’: With subscriber-level blocking the FAA flight data will be transmitted to thirdparties, but the third-party must demonstrate to the FAA that its software will block the data from being displayed to the general public.

2)

‘Source Blocking’: With source blocking the FAA will not transmit flight data to any third-parties. Although source blocking provides the highest level of privacy, and the least risk of an inadvertent disclosure, it also prevents individual owners from tracking their own aircraft.

With subscriber-level blocking an owner can provide permission for certain third-party companies to display flight information for their aircraft in a manner that is accessible only to the owner, and other parties approved by the owner. Additional information about the LADD program, as well as the various options for requesting inclusion in the program, can be found at ladd.faa.gov.

ADS-B Data – PIA Program

The second source of data for flight tracking software is ADS-B receivers. Almost all civil aircraft operating in the US are required to have an ADS-B transmitter, which transmits altitude, GPS position, horizontal and vertical velocity, and other data. This information is intended to be used by ANSPs as part of its traffic monitoring and separation function, and by other aircraft with ADS-B receivers that can use the data to maintain separation. However, it can be accessed by anyone 60  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

with an ADS-B receiver, and some companies have used a network of ADS-B receivers to collect and display the flight information through their flight-tracking software. Fortunately, the FAA has implemented a privacy solution for ADS-B data through the Privacy ICAO Address (PIA) program. Along with the flight information transmitted by an ADSB transmitter is an ICAO aircraft address; an international standard that is specific to the ADS-B transmitter, and is connected to the aircraft’s registration (Permanent ICAO Address). Under the PIA program the FAA will provide an alternate, temporary ICAO address (Alternate ICAO Address) that is not connected to the aircraft’s registration. Instead, the Alternate ICAO Address will be connected to an alternate callsign provided by a third party. The connection between this alternate callsign and the aircraft registration will be available only to certain governmental agencies that may need to identify the aircraft for safety or security purposes. Participation in the PIA program requires an aircraft owner to work through a more complicated process than what is required to participate in the LADD program: • •

First the aircraft owner must submit a request to the FAA, after which the FAA will provide the Alternate ICAO Address, via email, within 10 business days. Within 30 days of receipt of the FAA’s email, the aircraft owner must program their ADS-B transmitter with the Alternate ICAO Address, then perform a validation flight to confirm that it is broadcasting properly. The validation flight does not need to be a separate flight, and can be performed during any routine flight of the aircraft. As an extra level of privacy protection an owner may request a new Alternate ICAO Address every 60 days. www.AVBUYER.com

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Additional information about the PIA program, as well as the steps for requesting inclusion in the program, can be found at faa.gov/nextgen/equipadsb/privacy/.

The Limitations of LADD and PIA

There are two main limitations that affect both the LADD and PIA programs. First, they only apply domestically within the United States. Foreign ANSPs may transmit flight information to third-parties in accordance with their own policies, resulting in flight information being readily available to the general public while you operate in certain regions and countries. Alternate ICAO Addresses may only be used in US airspace, and when operating outside of the US, aircraft operators must revert to the Permanent ICAO Address. The other limitation is that any information held by the FAA is subject to disclosure under the Freedom of Information Act (FOIA) unless it falls within one of the limited exceptions. The information subject to disclosure could include all flight information collected by the FAA, including historical data. Submitting a FOIA request is not difficult, but it does take time and require a certain level of sophistication and knowledge of the specific information being targeted.

In Summary…

As described across this three-part series, there are multiple methods that an aircraft owner can utilize to help ensure that its ownership and operating information remains private. The use of an SPE or trust to own the aircraft can ensure that the general public cannot easily access an aircraft owner’s information, while the use of a double trust structure can further enhance protection of aircraft ownership information. Taking these steps also provides a basic level of protection from flight tracking software because, while these programs will still show the registration and flight information for the aircraft, only the name of the SPE or trust will be displayed. Enrolling in the LADD and PIA programs will prevent third-parties from tracking an aircraft’s movements, which provides an extra layer of protection, even if the third-party has somehow connected the name of the ultimate beneficial owner to its aircraft. To conclude, be proactive in identifying the risks to your privacy as an aircraft owner/operator; be encouraged that there are solutions available to help nullify the threat; but be smart in seeking the relevant counsel in structuring the right solution(s) for your operation. More information from www.crowell.com/practices/aviation T

JIM JANAITIS is a counsel with Crowell & Moring’s Aviation practice group. He focuses on helping Business Aviation clients navigate transactions and the complex regulatory challenges that come with owning, operating, and chartering aircraft. He has extensive experience in the sale, purchase, leasing, and financing of aircraft, and implementing ownership and operational structures tailored to each individual client’s goals.

www.AVBUYER.com

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Finance 1.qxp_Finance 24/08/2021 12:38 Page 1

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When and How Should You Consider Refinancing a BizJet? There are many reasons business jet owners might wish to renegotiate their existing finance package. Though specific possibilities will depend on the precise loan agreement, there are a number of factors to bear in mind. Gerrard Cowan speaks to the experts... ach aircraft loan agreement can vary in terms and potential penalties, meaning there’s no blanket rule of thumb on if, or when, to explore loan renegotiation. The nature of the client-lender relationship is important, according to Brian Foley, an aviation analyst; a borrower with a long-time relationship with their lender covering multiple high-value aircraft will likely be preferred over the owner of an older aircraft with a small loan amount. Still, it could be worth having the conversation in any scenario; for example, modifying or rewriting a loan to include the remaining principal plus any aircraft modifications or upgrades needed would be a win-win for both parties. “It’s still worth a conversation with your current lender to see if there’s some flexibility in revisiting the terms,” Foley adds.

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Common Reasons for Refinancing

While it isn’t common, refinancing an alreadyleveraged aircraft does happen, says Keith Hayes, Senior Vice President & National Sales Manager for PNC Aviation Finance. This could occur for a number of reasons, such as 64  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

the current loan coming to maturity, or the owner wishing to modify the cashflow and/or payments on the existing loan. An owner might also want to refinance due to fluctuations in interest rates, though Hayes says a number of factors should be taken into account, such as pre-payment premiums on the current loan, and the cost of entering into a new loan, including having the aircraft appraised and undertaking FAA lien searches.

What Will Lenders Consider Before Refinancing a Loan?

In certain circumstances it’s possible to restructure a loan with an existing lender. A number of factors come into play, Hayes explains, including: • • •

The structure of the loan – whether it’s a fixedor floating-rate; Whether the loan is an asset-based loan secured solely by the aircraft, or potentially with limited recourse to an individual or corporation; and Whether it is a traditional debt setup or an operating lease. www.AVBUYER.com

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“Customers should assess the benefits of financing their asset outside of their existing bank relationships, which can preserve access to liquidity for business growth opportunities, as well as providing protection during times of market volatility, as opposed to tying up borrowing capacity in a non-core asset.”

Lenders will assess various factors when considering a refinance request, according to Steve Day, Head of Sales – Americas, for Global Jet Capital. These include: • • • •

The length, performance and importance of the customer relationship; Changes in the customer’s credit profile; The current principal balance of the loan outstanding; and The current value of the underlying aircraft.

Refinancing With a Different Lender

Borrowers could also look to refinance via another lender, Day notes; most commonly to obtain a lower effective borrowing rate. This is “especially common in a decreasing interest rate environment, since lower rates can be locked in for the new term of the loan”, though he adds that there could be a number of other reasons, including the potential to convert from a floating to a fixed rate. Aircraft owners/buyers might also look to other products beyond a traditional loan, however, such as an operating lease or a sale leaseback. Leasing could www.AVBUYER.com

provide benefits like minimizing the capital employed in a non-core asset. However, fixed prepayment penalty fees are very common in term-loan contracts, Day notes, “and will likely come into consideration, depending on the remaining term of the existing loan and magnitude of the contractual fees”. Day also highlights the possibility of a ‘Make Whole’ provision, a variable fee calculation that provides pre-payment protection to the lender in a decreasing market rates environment when the borrower pays off debt early. These are designed to compensate the lender for the need to reinvest in a lower-rate scenario.

When Should you Refinance an Aircraft Loan?

Most business jet finance packages have limited terms, usually about five years, so there may be limited benefits to restructuring the loan in order to tap lower interest rates, said Adam Meredith, president of AOPA Finance. “It’s got to be a significant change in the interest rate environment to have it make much sense, and if there’s a prepayment penalty in place it would almost

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be impossible.’ Still, a range of lenders could have an interest in restructuring a loan to tap a lower interest rate, or to potentially secure a loan at today’s low rates for a longer period of time. This is likelier to succeed if the lender knows them well, knows their payment history and can therefore conclude there is a low risk of missed payments. From the lender’s perspective, they could restructure the loan over a longer time period, which could be to their benefit. For these reasons, Meredith says lenders should always first approach their existing lender, as “that’s always your best bet”. In general, AOPA Finance finds that borrowers with a good history can usually recast a loan when needed. “Most times when somebody proactively comes to us looking for something different, we’re able to find something that’s better for both parties,” he says.

A Specialized Market

Aircraft acquisition and the corresponding financing is a specialised market, and “all buyers should align themselves with attorneys and financial institutions that specialise in this market”, Hayes says. Acquiring such expert advice is the first step a prospective buyer should take, he said. “With the proper team engaged, there is far less of a chance the prospective owner will need to make modifications to the agreement during the ownership

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

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life of their aircraft,” Hayes added. “Plus, if an issue does arise, both the attorney and the financial institution will most likely have experienced a similar problem in the past and know how to efficiently address it.”

Do your Homework

Customers always need to consider a variety of factors to ensure the benefits of refinancing outweigh the costs and potential risks, says Day. They should assess the benefits of financing their asset outside of their existing bank relationships, which can preserve access to liquidity “for business growth opportunities, as well as providing protection during times of market volatility, as opposed to tying up borrowing capacity in a non-core asset”. This can also offer more flexibility in some circumstances, as pricing and structure aren’t tied tightly to ongoing relationship requirements. “Consider all your options with regard to products and structures – it may be an opportune time to find a more creative structure that brings more value and reduces unwanted risk and uncertainty, in addition to locking in today’s lower rates,” Day concludes. T More information from… - AOPA Finance: https://finance.aopa.org/ - Global Jet Capital: www.globaljetcapital.com/ - PNC Aviation Finance: www.pnc.com MAKE MORE INFORMED FINANCING DECISIONS with AvBUYER.com

www.AVBUYER.com


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Values Intro.qxp_Finance 25/08/2021 10:37 Page 1

VALUES - LARGE JETS

AVBUYER.com

Business Aircraft Values: The Large Cabin Choice There are occasions when the operator’s mission dictates an aircraft of larger capacity. This month our value study focuses on our definition of Large Cabin and Ultra-LongRange business jets. he average Large Cabin and Ultra-Long-Range jets share more in common than they differ, with similar cabin sizes and comparable cruise speeds ranging roughly between 450-500kts. For the purpose of this month’s focus, we’ll categorise Large Cabin and Ultra-Long-Range jets under the generic category of ‘Large Cabin jets’, on the basis of their shared characteristics, and MTOWs that generally range between 38,000-100,000 pounds. Large Cabin jets have much in their favor. Seatsfull range capabilities typically go up to, and into the 6,000nm range, making these effective nonstop continent and ocean-crossing machines. The fewer the stops, the shorter the overall trip time! One disadvantage the Large Cabin jets have over their Small and Medium jet kin is their need for runways longer than 6,000ft, which restricts the number of airports they can use by comparison. Nevertheless, for the trans-oceanic traveller, the advantages offered by these airplanes far outweigh the negatives. Where the Large Cabin airplanes really excel (as the name would suggest) is in their cabin capacities. A cabin will typically stretch from 30-40 feet or more, enabling operators to enjoy a wider array of finishing options and office capabilities than jets in the smaller segments can provide.

T

68  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

Cabin heights in excess of six feet guarantees stand-up cabin comfort, while seating capacity of 8-18 is typical. Naturally, the size and range capabilities of Large Cabin jets don’t come cheaply, and you’ll need a larger fuel budget, more hangar space and a larger maintenance budget. Yet for the company with the need, the Large Cabin jet will rarely prove too small, and only occasionally be too large for an airport you’d prefer to access. In these situations, supplemental charter is the answer.

Large Cabin Jet Price Guide

The following Large Jets’ Average Retail Price Guide represents current values published in the Aircraft Bluebook–Price Digest. The study spans model years from 2002 through Summer 2021. Each reporting point represents the current average retail value published in the Aircraft Bluebook by its corresponding calendar year. For example, the Dassault Falcon 2000S values reported in the Summer 2021 edition of the Bluebook show $18.0m for a 2017 model, $17.0m for a 2016 model and so forth. Aircraft are listed alphabetically. With the reader’s knowledge of aircraft, equipment, range and performance, the following Guide allows the reader to determine the best value aircraft for consideration.

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Retail Values September 2021.qxp_RPG 25/08/2021 10:18 Page 1

VALUES - LARGE JETS

Large Jets: Average Retail Price Guide MODEL YEAR $

2021 US$M

2020 US$M

2019 US$M

2018 US$M

2017 US$M

2016 US$M

2015 US$M

2014 US$M

2013 US$M

2012 US$M

10.0

9.0

8.0

7.0

10.0

9.5

9.0

8.5

MODEL BOMBARDIER CHALLENGER 850ER 32.4

BOMBARDIER CHALLENGER 650

21.0

18.0

16.0

14.5

13.5

BOMBARDIER CHALLENGER 605

12.5

BOMBARDIER CHALLENGER 604 BOMBARDIER GLOBAL 7500

75.0

70.0

62.0

BOMBARDIER GLOBAL 6500

56.0

44.0

40.0

BOMBARDIER GLOBAL 6000

62.3

37.0

34.0

29.0

27.0

25.0

22.0

20.0

19.0

18.0

BOMBARDIER GLOBAL 5000

50.4

35.0

27.0

25.0

22.0

20.0

18.0

16.0

14.0

13.0 16.5

BOMBARDIER GLOBAL EXP XRS BOMBARDIER GLOBAL EXPRESS DASSAULT FALCON 8X

60.0

50.0

43.0

39.0

37.0

36.0

DASSAULT FALCON 7X

53.8

39.0

34.0

31.0

28.0

25.0

24.0

22.0

21.0

DASSAULT FALCON 2000LXS

35.1

28.0

26.0

24.0

22.0

20.0

19.0

18.0

16.5

DASSAULT FALCON 2000S

28.8

25.0

21.0

19.0

18.0

17.0

16.0

14.0

12.0

20.0

14.5

DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASy DASSAULT FALCON 2000EX EASy DASSAULT FALCON 2000EX DASSAULT FALCON 2000 44.0

DASSAULT FALCON 900LX

33.0

29.0

25.0

23.0

21.0

20.0

19.0

18.0

17.0

39.0

36.0

34.0

30.0

26.0

24.0 22.0

20.0

19.0

18.0

17.0

16.0

15.0

14.0

13.0

12.0

12.0

10.0

9.0

7.5

DASSAULT FALCON 900DX DASSAULT FALCON 900EX EASy DASSAULT FALCON 900EX DASSAULT FALCON 900C EMBRAER LINEAGE 1000E EMBRAER LINEAGE 1000 EMBRAER LEGACY 650 EMBRAER LEGACY 600 EMBRAER LEGACY 135BJ GULFSTREAM G650ER

70.5

59.0

51.0

GULFSTREAM G600

58.5

52.0

48.0

38.0 42.0

GULFSTREAM G550 GULFSTREAM G500 (NEW MODEL)

48.5

41.0

39.0

37.5

35.5

33.5

31.5

29.5

34.0

32.0

28.0

25.0

23.0

21.0

19.0

18.0

37.0

35.0 14.0

GULFSTREAM G500 (OLD MODEL) 19.0

GULFSTREAM G450

17.0

16.0

15.0

14.0

13.0

GULFSTREAM G400 9.5

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

70  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

www.AVBUYER.com


Retail Values September 2021.qxp_RPG 25/08/2021 10:18 Page 2

AVBUYER.com

What your money buys today

Summer 2021 2011 US$M

2010 US$M

2009 US$M

2008 US$M

6.0

5.0

4.0

3.0

8.0

7.5

7.0

6.5

2007 US$M

2006 US$M

2005 US$M

2004 US$M

2003 US$M

2002 US$M

MODEL YEAR $ MODEL BOMBARDIER CHALLENGER 850ER BOMBARDIER CHALLENGER 650

6.0 5.6

BOMBARDIER CHALLENGER 605 5.3

5.0

4.7

4.4

4.2

BOMBARDIER CHALLENGER 604 BOMBARDIER GLOBAL 7500 BOMBARDIER GLOBAL 6500 BOMBARDIER GLOBAL 6000

12.0

11.0

10.0

9.0

8.0

7.0

6.0

15.5

14.5

13.5

12.5

11.5

10.5

9.5 8.0

BOMBARDIER GLOBAL 5000 BOMBARDIER GLOBAL EXP XRS 7.5

7.0

6.5

BOMBARDIER GLOBAL EXPRESS DASSAULT FALCON 8X

18.0

17.0

16.0

15.0

14.0

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

12.5

16.0

10.5

10.0

9.5

9.0

8.5

8.0

9.5

9.0

9.0

DASSAULT FALCON 2000LX DASSAULT FALCON 2000DX EASy

8.5

8.0

7.5

6.0

5.5

5.0

7.0

DASSAULT FALCON 2000EX EASy

6.0

5.5

4.5

4.3

DASSAULT FALCON 2000EX 4.0

15.0

DASSAULT FALCON 2000 DASSAULT FALCON 900LX

11.5

11.0

10.5

10.0

9.0

8.0

14.0

13.5

13.0

12.5

12.0

11.0

6.4

DASSAULT FALCON 900DX 10.0

6.2

9.0

DASSAULT FALCON 900EX EASy

8.0

7.5

6.0

5.8

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

18.0

16.0

10.0

9.0

-

7.0

14.0

EMBRAER LINEAGE 1000 EMBRAER LEGACY 650

6.5

6.0

5.5

EMBRAER LEGACY 600 5.0

4.5

4.0

3.7

3.5

EMBRAER LEGACY 135BJ GULFSTREAM G650ER GULFSTREAM G600

17.0

16.0

15.0

14.0

13.0

12.0

11.0

10.0

9.0

GULFSTREAM G550

13.0

12.0

11.0

10.0

9.0

8.0

7.0

6.0

5.0

GULFSTREAM G500 (OLD MODEL)

12.0

11.0

10.0

9.0

8.5

7.5

6.5 7.5

7.0

GULFSTREAM G400

5.0

4.5

GULFSTREAM G300

GULFSTREAM G500 (NEW MODEL)

8.5

8.0

7.5

7.0

6.5

6.0

GULFSTREAM G450

5.5

GULFSTREAM G350

9.0

GULFSTREAM GV

5.1

GULFSTREAM GIV-SP

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

www.AVBUYER.com

AVBUYER MAGAZINE  Vol 25 Issue 9 2021 

71


Africa FP May.qxp_Layout 1 21/07/2021 12:24 Page 1


GLOBAL EXPRESS

S N 9 13 3

GULFSTREAM G280

SN 2072

GULFSTREAM G150 S N

287

CHALLENGER 601-3A S N

FALCON 7X

5116

S N 41 65

GULFSTREAM G200

S N 93

GULFSTREAM IVSP S N

FALCON 8X S N

FALCON 7X

S N 192

FALCON 2000

GULFSTREAM G450

406

SN 172

CITATION EXCEL

S N 146

1 464

S N 5 1 09

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

900 Bestgate Road, Suite 412


AirCompAnalysis.qxp_ACAn 24/08/2021 13:27 Page 1

JET COMPARISON

CESSNA CITATION XLS+

EMBRAER PRAETOR 500

Jet Comparison: Embraer Praetor 500 vs Cessna Citation XLS+ How do the Embraer Praetor 500 and Citation XLS+ compare side-by-side? How much do you get for your money in a larger jet? Mike Chase analyses the performance and productivity parameters. ver the following paragraphs we’ll consider some of the key productivity parameters for the Embraer Praetor 500 and the Cessna Citation XLS+ (including payload, range, speed, and cabin size) to establish which aircraft provides the better value in the business jet market, and to whom. Although these two models do not directly compete in the market, we will take a slightly different approach with this month’s analysis. Accounting for the new pricing of the two featured jets, how much additional range, speed and cabin volume would an extra $2.36m purchase? The goal is to provide some food for thought to those assessing their moveup prospects within the Mid-Size Jet market.

O

Embraer Praetor 500

From among the aircraft forming the ‘next rung’ on the business jet ladder to the Citation XLS+, the Embraer Praetor 500 is very competitively priced. Announced in 2016, the Praetor 500 replaced the Legacy 450 on Embraer’s production line. The Praetor 500 is powered by twin Honeywell HTF 7500E turbofans with 6,500 pounds thrust each, and it offers a four-

74  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

passenger NBAA IFR range of 3,250 nautical miles. Addition of an extra fuel tank, and turbulence-reduction technology, account for the Praetor 500’s 350nm range advantage over its Legacy 450 predecessor. The Praetor 500 is capable of flying from the US West Coast to Europe with a single stop en route. At the time of writing, there were 34 Embraer Praetor 500 business jets in operation worldwide, with two in shared-, and 10 in fractional ownership. Over 80% of the Praetor 500 fleet was based in the US.

Cessna Citation XLS+

The Cessna Citation XLS+ received FAA certification in 2008, and is an improved version of the already-successful Citation XLS. Among its improvements, it features better performance through upgraded Pratt & Whitney PW545C engines and FADEC controls. The Citation XLS+ forms today’s entry-point into Mid-Size Jet ownership. It can transport four passengers 1,853 nautical miles, taking-off from runways as short as 3,560 feet. Since deliveries began, the Citation XLS+, like its predecessor, has been a success on the market. At the time of www.AVBUYER.com

w


AirCompAnalysis.qxp_ACAn 24/08/2021 13:28 Page 2

www.AVBUYER.com

CESSNA

EMBRAER Praetor 500

Citation XLS+

vs.

(Manufactured between 2020-Present)

(Manufactured between 2008-Present)

HOW MANY

EXECUTIVE

SEATS

9

7

$16.995 Million (2021 Model)

$14.64 Million (2021 Model)

WHICH OF THESE JETS WILL COME OUT ON TOP? HOW FAR

4 Pax with Available Fuel (nm) 3,340

Embraer Praetor 500 Cessna Citation XLS+

WHAT’S THE

HOW MUCH

CAN WE GO?

1,853

PAYLOAD CAN WE TAKE?

Embraer Praetor 500 Cessna Citation XLS+

(Lbs) 2,291

2,240

HOW MANY

HOW MANY

OPERATION?

EACH MONTH?

UNITS IN 33

294

NEW/USED SOLD

LONG RANGE CRUISING SPEED? Embraer Praetor 500 Cessna Citation XLS+

www.AVBUYER.com

426 353

WHAT’S THE

COST PER HOUR?

1 (0%) 4 (4.1%)

Embraer Praetor 500 Cessna Citation XLS+

Sources used: JETNET, B&CA and Chase & Associates.

(Knots)

12-Month Average Figure

(% = Global Fleet For Sale)

$1,206 $1,142

 AVBUYER MAGAZINE  Vol 25 Issue 9 2021 

75


AirCompAnalysis.qxp_ACAn 24/08/2021 13:29 Page 3

JET COMPARISON

AVBUYER.com

J

Table A - Payload & Range Comparison writing, there were 297 Cessna Citation XLS+ business jets in operation worldwide, eight of which were under shared ownership arrangements. Three more aircraft had been retired. Geographically speaking, 61% of the Citation XLS+ fleet was based in the US.

Praetor 500 Citation XLS+

37,567 20,200

13,051

6,740

2,291

1,610

2,240

Max Payload (lb)

Max Fuel (lb)

MTOW (lb)

2,819

800

Avail Payload w/Max Fuel (lb)

Source: OEMs, B&CA

Payload & Range Comparison

1,284

Max Payload w/Avail Fuel IFR Range (nm)

When comparing business jets, an important area for potential operators to focus on is payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A (left) shows the Praetor 500 ‘Available Payload with Maximum Fuel’ to be 1,610lbs, which is double the 800lbs offered by the Citation XLS+.

1,312

Chart A - Cabin Comparison Embraer Praetor 500

Cabin Comparison

The Embraer Praetor 500 has more cabin height than the Cessna Citation XLS+ (6.0ft. vs. 5.7ft); more width (6.8ft vs 5.5ft); and greater length (20.6ft vs 18.5ft). Moreover, the Praetor 500 offers a flat floor cabin, as illustrated in Chart A (left). The overall cabin volume is 705 cu.ft. vs. 461 cu.ft. in favor of the Praetor 500. The Praetor 500 also provides more luggage volume (40 cu.ft. internal and 110 cu.ft. external) than the Citation XLS+ (10 cu.ft. internal and 80 cu.ft. external). It is worth noting, however, that despite its smaller cabin volume, the Citation XLS+ provides a higher seating capacity (nine vs. seven in executive configuration, per B&CA).

5.7 ft

6.0 ft

Cessna Citation XLS+

5.5 ft

6.8 ft

Source: UPCAST JETBOOK

Range Comparison

Using Wichita airport in Wichita, Kansas as the start point, Chart B (left) shows the Embraer Praetor 500 has a range of 3,340nm with four passengers and available fuel, which is considerably greater than the Citation XLS+ at 1,853nm. This difference is 1,487nm in favor of the Praetor 500, and shows the variation in capabilities within the Mid-Size Jet segment. 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 weather-related obstacles.

Chart B - Range Comparison Embraer Praetor 500 Cessna Citation XLS+

3,340 (nm) 1,853 (nm)

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

Powerplant Details

As mentioned previously, the Praetor 500 has two Honeywell HTF7500E engines, providing 6,540lbst each. These burn 241 gallons of fuel/hour (gal/hr). By comparison, the Citation XLS+ has two Pratt & Whitney PW308C engines producing 5,000lbst each. These burn 196gal/hr. C

Source: Chase & Associates    



76  Vol 25 Issue 9 2021  AVBUYER MAGAZINE











 











www.AVBUYER.com

7


Elliott Jets September.qxp_Layout 1 25/08/2021 11:03 Page 1


AirCompAnalysis.qxp_ACAn 24/08/2021 13:30 Page 4

JET COMPARISON

AVBUYER.com

J

Chart C – Cost Per Mile Comparison Cost per Mile Comparison

Praetor 500

Chart C (left) details ‘Cost per Mile’, comparing the Embraer Praetor 500 and Cessna Citation XLS+, factoring direct costs and with both aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload. The Citation XLS+ has the lower cost per mile at $3.69 per nautical mile – 48 cents, or 11.5% less to operate than the Praetor 500 ($4.17 per nautical mile).

$4.17

Citation XLS+

$3.69 $2.00

$0

$4.00

$6.00

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

Variable Cost Comparison

The ‘Variable Cost’, illustrated in Chart D (middle, left), is defined as the estimated cost of fuel, maintenance labor, scheduled parts, and miscellaneous trip expenses (e.g., hangar, crew, and catering). These costs DO NOT represent a direct source into every flight department and their trip support expenses. For comparative purposes, the costs presented are the relative differences, not the actual differences, since these may vary from one flight department to another. The Citation XLS+ ($1,142/hr) has a 5.3% lower variable cost than the Embraer Praetor 500 ($1,206/hr).

Chart D – Variable Cost Comparison

$1,206

Praetor 500 Citation XLS+

Aircraft Comparison Table

$1,142

$0

$500

$1,000

$1,500

Table B (bottom left) contains the new prices (per B&CA) for the Embraer Praetor 500 and Cessna Citation XLS+ ($16.995m and $14.640m, respectively). This is a difference of $2.355m. Also, listed are the long-range cruise speed and range numbers (also per B&CA), while the number of aircraft inoperation, the percentage for sale, and average sold are from JETNET. At the time of writing, the Embraer Praetor 500 had no aircraft ‘for sale’ on the used aircraft market. By comparison, there were twelve Citation XLS+ jets for sale, or a total 4.1% of the fleet ‘for sale’. The average number of new/used transactions (units sold) per month over the previous 12 months was one for the Praetor 500 and four for the Citation XLS+.

$2,000

US $ per hour

Source: JETNET

Table B - Aircraft Comparison Table

Praetor 500 Citation XLS+

426

353

Long Range Cruise Speed (Kts)

705

461

Cabin Volume Cu Ft

3,340 1,853

$16.995 $14.640

4 Pax w/Avail Fuel IFR Range (nm)

New Price (2021 Model) $USm

*Average Full Sale Transactions in the past 12 months, as of July 2021; Source: JETNET Data courtesy of B&CA; JETNET

78  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

33

294

In Operation

0%

4.1%

% For Sale

0%

12

4

New/Used Average Sold per Month*

COMPARE, CONTRAST, DECIDE with AvBUYER.com www.AVBUYER.com

8


Leading Edge 6 to view September.qxp_Layout 1 25/08/2021 11:04 Page 1

2012 Global 6000 s/n 9381

1983 Gulfstream GIII s/n 399

Two U.S. Owners Since New, On RRCC & MSP, 13 Pax & Shower, FANS 1/A, CPDLC, ADS-B Out v2

13 Pax Aft Galley Floorplan, Part 135, Aircell ATG-4000 Gogo Biz Hi-Speed Wi-Fi, New Strip & Paint September 2015

1999 Falcon 900EX s/n 46

G550 s/n 5114

Engines & APU on MSPG, Gogo Biz® AVANCE L5 (4G) Hi-Speed Broadband, Major Interior Refurbishment & New Strip/Paint September 2015 @ StandardAero, Thrane and Thrane Aviator 700D SBB, Located at Toronto Airport, YYZ

Renovation Completed Jan. 2017, Total Work Package Cost Approximately $8M, One of the Most Upgraded G550’s, 14 Pax Fwd Galley & Fwd Crew Rest, Honeywell Jet ConneX Ka-Band & Gogo Biz® AVANCE L5 High-Speed Broad-Band Data System & Wi-Fi System. Not Another Aircraft like This Available

2002 Citation Excel s/n 5275

WANTED – Challenger 650, Global 5000 Vision, G450 Late Model, Fwd Galley G550 & GV, Citation XLS/XLS+ Engines on ESP Gold Lite, Aircell ATG-5000 Talk & Text, Single Point Refueling, Current 135 w/ Turn Key Opportunity, Nice Paint & Interior

Leading Edge Aviation Solutions is one of the world’s premier private aviation brokers/dealers with 900+ aircraft transactions, 50+ years of experience & over $10 billion in aircraft transactions. Not just aircraft brokers, they offer a deep suite of service that can be employed long before and long after any aircraft transactions are contemplated.


AirCompAnalysis.qxp_ACAn 24/08/2021 13:40 Page 5

JET COMPARISON

Chart E - Maximum Scheduled Maintenance Equity Cessna Citation XLS+ Assumed Annual Utilization: 375 Flight Hours Average Maximum Maintenance Equity: $2,240,248

Chart E (left) depicts (and projects) the Maximum Maintenance Equity that the Cessna Citation XLS+ has available, based on its age, and is courtesy of Asset Insight. At the time of writing, similar information was unavailable for the Praetor 500 model. • The Maximum Maintenance Equity figure is achieved the day the aircraft comes off the production line, since it has not accumulated any utilization toward any maintenance events. • The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes: Average annual utilization of 375 flight hours All maintenance is completed when it’s due.

Pct of Avg Max Mtnc Equity vs. Aircraft Age 100%

90%

Pct of Max Mtnc Equity

80%

70%

60%

50%

40%

30%

20%

1

2

3

4

5

7

6

Source: Asset Insight (www.assetinsight.com)

8

9

10

12

11

14

13

Depreciation Schedule

15

Aircraft Age (Years)

Table C - Embraer Praetor 500 Sample MACRS Depreciation Schedule 2021 Embraer Praetor 500 - Private (Part 91) Full Retail Price - Million $16.995 Year

Rate (%)

Depreciation ($M)

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

1

20.0%

$3.399

$13.596 $3.399

2

32.0%

3

19.2%

4

$5.438

$3.263

$1.958

$8.837

$12.100

$14.058

$8.158

$4.895

5

11.5%

$2.937

6

11.5%

5.8%

$0.979

$0.000

$1.958

$16.016

$0.979

$16.995

2021 Embraer Praetor 500 - Charter (Part 135) Full Retail Price - Million $16.995 Year

Rate (%)

Depreciation ($M)

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

1

14.3%

$2.429

$14.566 $2.429

2

24.5%

3

17.5%

4

12.5%

5

8.9%

6

8.9%

7

8.9%

8

4.5%

$4.162

$2.972

$2.123

$1.518

$1.516

$1.518

$0.728

$6.591

$9.563

$11.686

$13.203

$14.719

$16.237

$16.995

$10.404

$7.432

$5.309

$3.792

$2.276

$0.758

$0.000

Source: B&CA

Table D - Cessna Citation XLS+ Sample MACRS Depreciation Schedule 2021 Cessna Citation XLS+ - Private (Part 91) Full Retail Price - Million $14.640 Year

Rate (%)

Depreciation ($M)

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

1

20.0%

2

32.0%

3

19.2%

4

11.5%

5

11.5%

6

5.8%

$2.928

$4.685

$2.811

$1.687

$1.687

$0.843

$2.928

$7.613

$10.424

$12.110

$13.797

$14.640

$11.712

$7.027

$4.216

$2.530

$0.843

$0.000

2021 Cessna Citation XLS+ - Charter (Part 135) Full Retail Price - Million $14.640 Year

Rate (%)

Depreciation ($M)

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

1

14.3%

2

24.5%

3

17.5%

4

12.5%

5

8.9%

6

8.9%

7

8.9%

8

4.5%

$2.092

$3.585

$2.561

$1.829

$1.307

$1.306

$1.307

$0.653

$2.092

$5.677

$8.238

$10.066

$11.374

$12.680

$13.987

$14.640

$12.548

$8.963

$6.402

$4.574

$3.266

$1.960

Maximum Scheduled Maintenance Equity

$0.653

$0.000

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can use accelerated depreciation of assets by taking a greater percentage of the deductions during the 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), based on a straight-line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e., Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a 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 seven-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year. The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under

Source: B&CA

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Asking Prices & Quantity

At the time of writing, there were no Embraer Praetor 500 business jets available for sale on the used aircraft market. However, there were 12 Cessna Citation XLS+ available for sale on the used market, with asking prices ranging from $5.25m to $8.9m. While each aircraft serial number is unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft – even between two aircraft from the same year of manufacture. The final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.

Productivity Comparison

The points in Chart F (above, right) are centered on the same aircraft. Pricing used in the horizontal axis is as published in B&CA. The productivity index requires further discussion since factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. Four Passenger Range (nm) with available fuel; 2. The long-range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

Chart F - Productivity Comparison $40.0

Prices (millions)

the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased and placed in service before January 1, 2023. This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022, the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. Table C (middle, left) depicts an example of using the MACRS schedule for a 2021model Embraer Praetor 500 placed in private (Part 91) and charter (Part 135) operations 2 over five- and seven-year periods, respectively. The price is as published by B&CA at the time of writing. Table D (bottom, left), meanwhile, depicts an example of using the MACRS schedule for a 2021-edition Cessna Citation XLS+ in private (Part 91) and charter (Part 135) operations over five- and seven-year periods.

Citation Longitude

$30.0 $20.0 $10.0

Embraer Praetor 500

Citation XLS+

$0.0 0.000

0.500

1.000

1.500

2.000

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

Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size. Chart F includes our two study business jets, plus the Cessna Citation Latitude and Longitude, as well as the Embraer Praetor 600 as other examples of suitable move-up aircraft from the Citation XLS+. As demonstrated, an extra $2.35m can buy more speed and cabin volume, longer range, and greater ‘Available Payload with Maximum Fuel’, in the case of the Embraer Praetor 500. But that performance increase will come with greater operating costs – in this case, the Citation XLS+ has 5.3% less variable operating cost per hour, and 11.5% lower cost per mile compared to the Praetor 500. The additional aircraft within the Productivity Chart demonstrate the Cessna Citation Latitude is another attractive stepup option for Citation XLS+ operators, though its overall productivity index rating is lower than the Praetor 500’s, and it comes at a slightly higher price new. Meanwhile, operators with a budget of between $20m-$30m may consider the even greater productivity offered by the Super Mid-Size Jets, including (but not limited to) the Citation Longitude and Praetor 600. Which jet makes the most logical step-up

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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Embraer Praetor 600

Citation Latitude

platform for a Citation XLS+ operator? Prospective buyers would have to weigh the capabilities of each jet very carefully against their specific mission need to determine which one is the best fit for their flight operations. A further consideration will come into play once aircraft like the Praetor 500 and 600, and Citation Longitude, build a track record in the pre-owned market, and it is clear how each depreciates with age. Within these paragraphs we have touched upon several of the attributes that business jet operators value, although there are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buying decision. Ultimately, there is plenty for a prospective buyer to consider when deciding which performance criteria matters most to them in an aircraft. Both business jets offer great value in the market today, providing they meet the requirements of the vast majority of an operator’s mission needs. Once that percentage starts to deteriorate, however, it will be time for the owner/operator to assess a suitable replacement jet with the help of a professional who can offer insights far beyond the scope of this article. T

COMPARE, CONTRAST, DECIDE

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FLIGHT DEPARTMENT MANAGEMENT

Older Business Jets: Tips for OEM Trade-In

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Selling, or trading-in an older private jet can be difficult, but not impossible. How can you extract maximum value? Andre Fodor shares some tips on creative solutions that can leave all parties happy… ne of the highlights of my aviation career has been working as a pilot for a major business jet OEM. Full of challenging experiences, the position I held with the OEM presented me with many learning opportunities. OEM pilots tend to be considered both brand ambassadors and subject-matter experts, and eventually I became a part of the OEM’s think-tank group. The preferred sales scenario for any OEM is one where a purchase is made, preferably with cash, and ideally without the need for an aircraft exchange. That is not always the case, though, and sometimes people bring an older jet to the table, offered as trade-in. Occasionally, that aircraft may be nearing the end of its useful life, and could be hard to sell to another owner. Understandably, this can be a roadblock to a deal closing. You can be sure such trade-ins impact the OEM’s bottom line as it struggles to offload the low-value jet. Having seen this problem in my role with the OEM, I began to develop my own ideas about how an older jet or turboprop can be offloaded during a trade, some of which worked, while some proved less viable. It is my hope that some of those thoughts can serve as inspiration, seeding your imagination when the time comes to make a deal or dispose of your older jet.

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The Value of Trade-Ins

Several years ago I was asked by my boss to purchase a brand new Large Jet. This came as a surprise, since our existing airplane – a Super Mid-Size Jet – was only two years old and had just received a new paint scheme to personalize the color and look.

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The jet had amassed less than 500 hours total time, and wasn’t fully depreciated. So I proposed keeping it for a while longer. That proposal was ignored – the boss had his heart set on a Large Jet. We elected to sell the airplane after the purchase and delivery of the new one, seeking to make use of an ‘in-kind exchange’ scheme that would enable further sales-tax advantages. Though I expected this to work well, it wasn’t until after 14 months that we received a low-ball offer which we negotiated into an acceptable deal, and finally sold the airplane. For all of that time, we continued to bear the burden of the Super Mid-Size Jet’s insurance and operational costs. The better solution (since we were buying the Large Jet from an OEM) would have been to combine the purchase of the new airplane with the trade of the existing jet. Although we’d have received less up-front trade-in credit (the OEM would be assuming the risks of resale, and thus require a higher financial safety margin), we would have concluded the transaction on the same day the new aircraft was delivered.

Dealing With the Problem of High-Time Aircraft

But what if the existing aircraft is a high-time jet? When working as an OEM demo pilot, I noticed how many older aircraft built by other OEMs were sitting idle in long-term storage. It transpired that these were high-time airplanes, close to major inspections or overhauls, which had been accepted as part of a trade for a new aircraft. Since these aircraft were older, their residual values were low, so doing the required maintenance work made little sense financially. The thought occurred to me that these jets could be leased to charter operators and generate revenue on any remaining hours the airframes or engines had, and upon reaching the maximum hours triggering the overhaul or inspection, the aircraft could be parted out. The OEM could sell what it could, taking the loss of the difference as tax credits. [Where the OEM was concerned, that loss could be attached to the sale of the new aircraft, since this was part of the payment, enabling the OEM to come out nearly even on paper.]

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Adapted for Private Jet Owners

For private jet owners who understand the risks involved, you, too, could lease your older aircraft to a charter company, wringing the remaining profits from the jet, while actively seeking to sell the airplane. And if you end up running out of useful hours, there are two choices: • •

Scrapping the jet for parts; or Donating the aircraft to a maintenance school, university, or research facility (and accept the write-off value).

In Summary

As an aircraft ages, owners and operators are left with the challenge of finding the best solution to shed the financial burden of the older jet near the end of its useful life. As I hope I’ve demonstrated above, thinking outside the box will be vital to a satisfactory solution. Moreover, learning about financial tools and taxation, and combining these with deep market insights, will provide the tools you need make the best of the situation. T

“...you, too, could lease your older aircraft to a charter company, wringing the remaining profits from the jet, while actively seeking to sell the airplane.”

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 24/08/2021 16:44 Page 1

FLIGHT DEPARTMENT MANAGEMENT

Why Tailor a Flight Crew Operating Manual? Mario Pierobon speaks to industry experts about the need to incorporate airworthiness and procedural

development considerations into Flight Crew Operating Manuals, thus providing more type-specific guidance on the best practices for operating your aircraft…

ccording to Keith Colmer, Vice President of Flight Operations at Gulfstream, the certification regulations stipulate what specific content is required to be in an airplane flight manual (AFM), because these, by definition, are required to be reviewed and approved by the FAA. “The requirements for airplane flight manuals are delineated in Federal Aviation Administration Advisory Circular (AC) 25.1581,” he notes. The primary purpose of the FAA-approved transport category airplane flight manual (AFM) is to provide an authoritative source of information considered necessary for safely operating an airplane. According to AC 25.1581, the AFM should be divided into a set of sections, as appropriate for the specific airplane type or model. Moreover, for purposes of standardization, the AC recommends that the sequence of sections, and of items within the sections, follow the outline established in the AC itself.

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Type- and Model-Specific Operating Procedures

One such section is that of the ‘operating procedures’, in which the AFM must contain the essential information, peculiar to the airplane type

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or model, that is needed for safe operation under normal and other-than-normal conditions. “The AFM is part of the certification basis of the aircraft, containing the operating limitations within which the aircraft is considered airworthy, and any other information required for the safe operation of the aircraft, including all amendments and supplements for the manual”, says Luigi Ippolito, Crew Training Manager at Alidaunia. “The AFM does not include some crew procedures, instruction, task-sharing, call-outs, etc. which are usually included in the standard operating procedures (SOPs).” Nevertheless, Ippolito notes that the AFM is the main reference for developing the SOPs, as well as the checklist ‘system’ (i.e., the set of philosophies for checklist usage, and the abbreviated checklist for ‘safety-related items’ for any phase of flight).

The Need for Type-Specific Guidance

The fact is that AFMs do not provide complete guidance on how to operate the aircraft. In commercial aviation, for some time several of the OEMs have provided Flight Crew Operating Manuals (FCOMs) which are more operationallyoriented, serving the purpose of providing type-specific procedures to aircraft operators and pilots.

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“An FCOM is an OEM publication in support of operators that include SOPs, and can be integrated in a company’s operations manual,” Ippolito says. “Some OEMs offer a structured FCOM, according to the operational requirements, for this purpose. “Other OEMs publish a Pilot Operating Handbook (POH) instead of a ‘structured’ FCOM, but many operational aspects are often not covered, and this requires further documentation to be issued by the aircraft operator. “In addition, AFM and/or POH procedures are not specific to the type of avionics installed, and an additional ‘Avionics Manual’ may need to be included in the aircraft library,” he adds. As a business jet OEM, Gulfstream has been making an effort in the area of aircraft operational documentation in light of the fact that business aircraft operators also need to have type-related procedures in their own manuals. “Gulfstream creates a complementary manual, called the Airplane Operating Manual (AOM), which includes additional procedures, performance data and reference information that is not required to be in the AFM,” Colmer explains. “Additionally, these AOMs include chapters that are more descriptive on aircraft operations.”

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Procedural Development Considerations

In the compilation of crew operating manuals there are some main considerations that should guide the development of type-related procedures, Colmer notes. “First, the procedures must be sufficient, meaning they have to include all the necessary steps to complete the required tasks, he says. “They must be abundantly clear and accurate, reflecting the system design. “They should also reflect engineering and safety considerations documented in failure modes/effects, and criticality analyses, as well as system safety risk assessments.” According to Colmer, Gulfstream also produced an in-house procedural design guide that emphasizes standardized language and conciseness. Ippolito adds that procedural development considerations must also cover the type of operations (e.g., IFR-VFR, RVSM, or PBN), the crew concept (multi-pilot, single-pilot), the established checklist policy and system, the use of avionics, and optional equipment installed. Moreover, accounting for principal human factors in the development of type-related procedures is vital, and the crew operating manual should be referred to in training.

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“During development, procedures are evaluated for human factors implications – the aircraft flight manual and operating manual are used extensively in initial and recurrent type-rating training”, says Colmer. “We have excellent channels of communication with our training providers and receive feedback on procedures that clients experience difficulty with. We take those procedures, analyze them, work with our engineering/test pilots to rewrite them, then test them in our training provider’s simulator with instructors to ensure the procedures perform better,” he adds.

In Summary

A major human factor issue for Business Aviation operators can be the need to search for the required information that is spread across several different manuals, supplements, and handbooks. “An FCOM, when available, is used as the only reference for that type of aircraft by all pilots and training providers,” Ippolito concludes. “This should guarantee constant feedback to the OEM, and standardization among pilots flying that aircraft type around the world.” T

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“The fact is that AFMs do not provide complete guidance on how to operate the aircraft.”

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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IT’S GO TIME. Engines are roaring, the skies are clearing and we are firing up for the most epic event in NBAA history. The 2021 NBAA Business Aviation Convention & Exhibition (NBAA-BACE), taking place from October 12 to 14 in Las Vegas, is guaranteed to be a transformational event that provides you an unmatched opportunity to get connected and power your business forward. Visit the website to learn more and register today.

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Maintenance 1.qxp_Finance 24/08/2021 14:04 Page 1

MAINTENANCE

A How-to Guide for Upgrading & Modernizing Your Jet Kevin Hoffman, President & CEO of JANUS, expains that upgrading a Business Jet involves detailed analysis, good organization, and — above all — clear communication.

f you are an aircraft owner who has decided to continue operating your aircraft, and would like to upgrade and install the latest state-of-the-art systems and technology, or are someone purchasing a pre-owned aircraft and would like to upgrade the passenger amenities, how can you best achieve your goals? Successfully achieving what the principal has envisaged will require a comprehensive strategy and approach that addresses all the aspects of upgrading and modernizing the aircraft, from its acquisition, right the way through to its redelivery and customer acceptance.

I

Balancing Quality, Schedule and Cost

Years ago, I published a white paper entitled, ‘The Effects of Quality, Schedule and Cost on Corporate Aircraft Interiors’ (a copy may be downloaded via www.janusaerospace.com). The document explored the trade-offs between Quality, Schedule, and Cost in achieving a project’s objectives, determining that you 94  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

cannot achieve a top rating on all three areas. It all comes down to trade-offs based on value and benefit analysis. It’s nearly impossible to obtain top Quality and simultaneously meet a low Cost or an aggressive Schedule. Early discussions and considerations with the client are a very important, and is a vital step to ensure everyone understands what to expect in terms of Quality, Schedule and Cost. Furthermore, prior to reaching this point, you would be well-advised to discuss and agree on the client’s primary goals and objectives. One way to help frame the conversation is by presenting the client with a checklist of detailed questions to understand their end-game, or how the principal intends to operate their aircraft. Passenger count; range; city-pairs; sleeping accommodation; food preparation; connectivity; certification; noise & acoustics; temperature and air filtration – all of these elements will have an impact on the Quality, Schedule and Cost of the project. www.AVBUYER.com

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Assembling & Managing the Upgrade Team

By virtue of its complexity, managing an aircraft modernization program requires a person to consider many details, and the process starts by identifying all aspects of the program that might affect Quality, Schedule and Cost. Typically, this begins during the aircraft acquisition phase with the formation of an Integrated Product Team (IPT), which, along with the Customer is likely to be comprised of experienced Program Managers, Designers, Engineers, Certification Experts, equipment Suppliers, and the Service Facility. To be successful, everyone must have a thorough understanding of the challenges faced by other Team members, must provide transparency to their area of responsibility, and be provided accurate, timely visibility to the entire project. The Program Manager may have to make some difficult, and final, decisions to prevent the IPT becoming a “Design by Consensus” committee, or a group continually trying to optimize a solution without www.AVBUYER.com

M

ever achieving one. With a new production aircraft project, all expectations and requirements are clearly defined from the start, and all the members of the IPT are party to those discussions, including the supply chain, manufacturing, production, and quality departments. When it comes to an aircraft refurbishment or modernization, the process follows the same path, but usually on a smaller scale.

Managing the Program

In addition to managing the various IPT member roles, a critical function is how the program is managed. At JANUS Aerospace, Program Managers utilize a technique we call ‘Action Based Program Management’. The actual process is proprietary, but is based on detailed reports, traceable tasks, responsible team members, and actions assigned to individuals with continuous follow-up. Typically, each sequence of events includes a minimum of 10 stages.

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“Through timely reports, emails, texts and/or phone calls, excellent communication will be the bedrock of completing any major project on time and on budget!”

Acquisition: As the first stage, acquisition focuses on acquiring the best aircraft able to meet the mission objectives and the client’s desired passenger experience. Equally important is determining whether the aircraft is being purchased for personal transportation or for charter. This stage involves detailed market research, and in the case of JANUS Aerospace includes analytics from Asset Insight, covering the aircraft’s projected residual value, scheduled maintenance costs, and even a view of the aircraft’s future marketability potential. All of these analytics are designed to identify the best aircraft selection decision in order to optimize the aircraft’s investment value. Program Management: Next, when the IPT is formed and roles and responsibilities for all team members are identified, a detailed Program Management Plan is necessary to establish the schedule, communication links, reporting structures, risk mitigation, and the overall program management methodology. Work Scope: Establishing the work scope includes accounting for maintenance and other items, such as the interior furnishings, exterior paint, In-Flight Entertainment (IFE) systems, and Cabin Management

System (CMS). The clearer the work scope definition, the easier it is to estimate time and costs. It is highly desirable to have major decisions made, such as Location of Passenger Accommodations (LOPA) or configuration changes, before asking a Service Facility to quote any project. Facility Selection: The final big step is selecting the Facility to complete the work. It can be wise to base this selection on multiple criteria, and these may constantly change. However, selection of a facility should always account for the facility’s expertise, and may well factor experience of working with them in previous projects.

Closing Thought…

It’s worth remembering that all successful modernization projects share one key ingredient: Excellent communication. Through timely reports, emails, texts and/or phone calls, excellent communication will be the bedrock of completing any major project on time and on budget! More information from www.janusaerospace.com T

KEVIN HOFFMAN has amassed over thirty years of experience in Business Aviation, ranging from aircraft design to executive roles with OEMs, including Bombardier and Gulfstream, and in a number of companies he founded. Currently, he is President and CEO of JANUS, a unique, value-add service for Large Cabin jet owners wishing to modernize and upgrade their aircraft to the passenger cabin standard and flight deck options currently available on new aircraft models (at a fraction of the cost of a new aircraft).

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AVIONICS

Understanding BizAv Avionics: Communication Within the field of cockpit avionics, a core category of instruments and functionality covers communications. Ken Elliott takes a closer look…

or many years, aviators have communicated between aircraft and air traffic control, using voice and a strict methodology of how dialogue needs to be conducted. Depending upon range, the pilots and controllers selected different frequency bands to ensure the signal. Carrying voice modulation helped overcome the limitations of an atmosphere following the Earth’s curvature. For most of aviation’s history, the development of communication maintained the same basic premise: To focus on improvements to the technology – from vacuum tubes to transistors – and adding more frequency as the aviation community expanded. The biggest evolution in aviation communication has been the ability to use satellites to complement High

F

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Frequency (HF) radio, and the supplementing of data over voice. As with all avionics, size, weight and power with an eye on cost (SWaPc), is the driving force behind aircraft considerations. Capability, efficiency, consistency and performance steer the airspace development of communications.

The Basic Aircraft Communication System

What is the basic communication system? Even in today’s ‘advanced comms’ system there are still only a few primary components, including: • Headset • Communications Transceiver • Antenna • Data message display(s) www.AVBUYER.com

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Figure 1 (below) provides a deeper look into the typical communications system. The Pilot or Air Traffic Controller will interact using a headset, and the transceiver has two signal paths – transmit and receive. The headset microphone audio is transposed onto a carrier waveform, varying its amplitude at the same frequency as the carrier for Amplitude Modulation (AM), or varying the carrier frequency itself, at the audio rate, for Frequency Modulation (FM). The modulated carrier must have enough power (watts), to ensure the signal can reach its destination, and its frequency must match the selected receiver frequency on the other end. As an alternative to voice, the headset is replaced with a digitally derived signal that provides bytes of data to modulate the same carrier. An example of a digital data signal could be aircraft status information to be broadcast over a communications system (ACARS). The transceiver output is tuned to match the antenna being used. Typically, the lower the carrier frequency, the larger the antenna that is needed to broadcast it. A great example of this compares the long-wire HF antenna to the blade VHF antenna. On modern jets, the HF tunes the fuselage to act as a very large (long) antenna. Another example is to compare the long blade of the VHF antenna to the very short blade of the Distance Measuring Equipment (DME) antenna that uses L Band, which is a much higher frequency than VHF. For receiving, the antenna is tuned by the operator to acquire the anticipated incoming carrier wave. The transceiver demodulates the audio or data from a minutely detected carrier frequency that it has dramatically amplified. The audio or data is then boosted

A

and forwarded to the operator’s earpiece, a speaker, or for data message display conversion.

Methods of Aircraft Communication

For aircraft, communication can be identified as internal and external, where internal is intercom, passenger address, Bluetooth and Wi-Fi routing, and for external is direct or indirect. • •

Direct is aircraft-to-aircraft, and aircraft-to-ATC. Indirect is either Air-to-Ground (ATG) or satellite communication (Satcom).

Internal: The audio systems used onboard current aircraft are very complex, allowing significant capability with versatility. Audio from headsets is not transmitted via antennas but along wires to other cockpit and cabin sources. Internal data on the other hand can be transmitted via Bluetooth, or routed using Wi-Fi. Data shared via wiring will use familiar commercial bus standards such as USB or HDMI. External: Communication carrier waves are direct line-ofsite, and will either bounce off the Earth’s ionosphere or try to keep going straight, into space. Aircraft have multiple antennas, not only for each system, but also on top of the fuselage (to reach other aircraft and satellites), or underneath (to operate ATG or communicate with ATC). The lower the frequency, the more likely it is that the signal will reflect off the ionosphere and keep bouncing

Figure 1: A Block Diagram Depicting a Typical Aircraft Communications Transceiver System

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Figure 2: The Various Methods of Aircraft ‘Internal-Only’ Communication

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around the Earth, until it runs out of energy. That is why amateur radio enthusiasts (hams) can chat to anyone, anywhere, at the right time and frequency. Satcom uses the highest frequencies, in three bands, including: • • •

Figure 3: The Various Methods of Aircraft ‘External & Internal’ Communication

A

L-Band Ku-Band Ka-Band

Other communication frequency bands are VHF and UHF, the latter being reserved mainly for the military or emergency services. Commercial aircraft using VHF can only effectively use that band over continents where the line-of-site distances is workable. Aircraft models designed and built to operate ‘domestically’, will rely on VHF and air-to-ground communications, whereas oceanic/intercontinental capable aircraft will rely on both VHF and Satcom, with a back-up HF. NOTE TO AIRCRAFT BUYERS: There are several aircraft models that may have extended range capability but only have Satcom as an option. Look out for this, when searching for a replacement or additional aircraft. There may be provisions for a Satcom but even those can be misleading. The antenna for Satcom is a complex assembly, and its location is crucial to performance. Not only do you need a special antenna but also a fairing to cover it that’s transparent to the operating frequency. Fortunately, Satcom is favored by larger aircraft that are designed for range performance and will likely have the real estate to accommodate top- or tail-mounted Satcom antennas. When it comes to your Satcom requirements, engage a knowledgeable MRO, which will be aware of available Supplemental Type Certificates (STCs) for your aircraft, and will collaborate with the Satcom vendor for support. • Note: ‘Internal’ in Figure 3 (left) is different to the ‘Internal’ shown in Figure 2 (above, left). In Figure 3, Internal refers to the audio fed between headsets and speakers from various transceivers.

How the Frequency Bands are Used

As outlined in Table A (overleaf), there are different aircraft external communication bands. As there are limitations and a lack of consistency using voice, there is now a greater use of data in the airspace, but still using the methods and various bands of communication. Domestically, the data used for flight communication is modulated upon a VHF carrier wave, and for oceanic and/or intercontinental operations it is modulated upon a Satcom carrier wave. Example of each include: • •

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Departure Clearance (DCL) over VHF in the US. Automatic Dependent Surveillance - Contract (ADSC) over Satcom for oceanic and intercontinental flights. It is important to include, here, the different types of

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Action Aviation September.qxp_Layout 1 25/08/2021 11:29 Page 1

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information that are communicated as data. These include: • • • • • • •

Aircraft system status. Bluetooth wireless transfer between devices. Wi-Fi routed internet and other data for crew and passengers. ACARS – aircraft reported data such as On/Off/Out/In (OOOI). AFIS – Aircraft flight information for display on the cockpit flight management system. ATIS – Aircraft traffic information/automated voice routing information. Downloaded aircraft and engine real-time performance.

What to Expect on a Typical Business Jet

While every aircraft is different, the basic equipage is similar. The cockpit/crew control remote equipment, which in turn broadcasts and receives communications over dedicated antennas. The communications can be voice or data, and will be routed accordingly. Note: While VHF radios are in triplicate (sometimes duplicate), HF are duplicate and Satcom singular.

Communication Systems Control

All communication systems require control, and for many years on larger aircraft the cockpit would include a single control head for each radio. On smaller aircraft the control head and radio were both in the same panel-mounted assembly. Eventually, control became centralized into radio tuning units, where pilots could select which radio they wanted to tune, and control all communications equipment from their onside pedestal-mounted unit. Currently the proliferation of flat-panel displays has cleaned up the myriad individual units further, allowing control of most cockpit systems via touchscreen displays. There must always be redundancy via a minimum of two ways to control and operate devices. 102  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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Emergency Communication

As with most aircraft primary systems, there must always be a means of external communication available to the crew. Aircraft are deliberately designed to have a standby battery (or two) and associated emergency bus. A third VHF radio will be placed on the emergency bus and a separate means of control provided. NOTE TO AIRCRAFT BUYERS: When purchasing an aircraft, always consider the emergency provisions available to the flight crew.

A few Words About HF…

Although HF radios have been around for years, they always seem to have a sense of mystery about them, and are not easy to use. Here are a few oddities explained: • •

Squelch control: The adjustment to hear enough signal but not have to endure all the background hash noise that comes with signals racing around the planet. Band control: There is Upper Side Band (USB), Lower Side Band (LSB) and Amplitude Modulation (AM). In simple terms the choices (mostly USB), provide the most efficient use of power in the overall transmitted signal. Clarifier/RF Sense: A fine adjustment of the frequency to compensate for atmospheric drift.

Most HF-equipped aircraft will include Selcal to enable the aircraft to be specifically identified. A Selcal code is provided for entry by the crew, and when the HF source is trying to reach them an audio and lamp alarm will occur, alerting the crew to deliberately monitor the assigned HF frequency. Having this feature means the flight crew do not have to monitor the HF frequency on their audio. While HF usage is infrequent, it’s vital to have when needed. Constantly monitoring the receive audio, derived from a shared frequency, can be disturbing, because of other traffic and the inherent background noise, an undesirable feature of HF.

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Figure 4: A Typical Business Jet Communications Equipment Arrangement

Datalink

Datalink is only part communications. The data needs to be displayed on a cockpit device, recorded for safety, and processed in systems that are not the traditional transceiver. All datalink is Controller Pilot Data Link Control (CPDLC), and there are different versions available for different airspace requirements, including: • • • •

FANS 1/A (+): Oceanic and Transcontinental (Satcom or HF Data Link) ATN-B1/VDL Mode 2: Continental Europe’s airspace (VHF Data Link) DCL: US Departure Clearance, and soon en route (VHF Datalink Mode A/0 or 2) Future ATN-B2: Expanded 4D feature of airspace operation.

Interestingly, it is datalink that is the future, and especially when it comes to 4D airspace operations, sharing flight levels with eVTOLs and unmanned platforms. It is datalink that will connect them all together in a communication maelstrom of speeds, bandwidths, and for so many more aircraft than we use today. ADS-B, in a sense, can be considered a form of communication using the Transponder L-band frequency

to broadcast crucial flight data between one aircraft, other aircraft and ATC. However, ADS-B Out (or In) is considered to be Surveillance. Just as with FANS, where navigation and other systems are deployed, avionics is morphing into Integrated Modular Avionics (IMA) technology that pretty much takes care of everything. It will not be long before we no longer separate Communication, Navigation, Surveillance, or cabin systems.

In Summary

As with all avionics, communications are evolving from voice to data, where connections are multiple and simultaneous, as opposed to sequential and singular (with voice). So many more tasks can be completed reliably, consistently, faster and across many platforms. Aviation is a cautious industry, and we take considered baby steps as we innovate, in the interest of safety and cybersecurity, more than anything. While the steadfast HF and VHF have sat in their equipment racks for decades, the industry has tinkered with their capabilities, adding data messaging and moving from analogue to digital circuitry. This is the way of aviation – slow and steady. Our next article in this series will address the navigation side of avionics. 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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Is it Time to Upgrade Your Business Jet’s Avionics? What are the most compelling reasons for upgrading the flight decks of

business jets and turboprops? What are some popular options that raise an older aircraft’s operational flexibilities to levels similar to new aircraft? Dave Higdon explores…

W

hen the discussion about the worth of Business Aviation turns to the value equation, seldom does the age and type of panel rise to the forefront of the

conversation. Though the discussion may cover the age of the aircraft, the number of flight cycles, and time on the powerplants (leading to discussion of the costs of hotsection inspections and overhauls), the age and type of avionics often fails to register – except when the panel is so outdated that it precludes the crew from accepting

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some routes and procedures. For example, the crew could neither file for, nor accept, a clearance involving a Localizer Performance with Vertical Guidance (LPV) approach when navigating with an early IFR-eligible GPS, since the LPV approach requires a GPS navigator with the Wide Area Augmentation System (WAAS), an additional GPS signal that corrects various errors. Access limitations can even apply in business aircraft equipped with a modern-looking Electronic Flight Instrument System (EFIS) panel. EFIS systems started

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appearing in civil aircraft in the mid-1980s, and, back then, typically replaced analog flight instruments with similar-appearing electronic versions, usually in a one-forone swap. Today's EFIS packages only slightly resemble those predecessors. Today's integrated avionics stacks are still EFIS systems, but of a wholly different technology, look and layout. One of the joys of Business Aviation today is the possibility that an integrated EFIS stack exists for retrofitting those older panels. As with so many aspects of Business Aviation, there is the availability of these new EFIS panels as an upgrade option – an upgrade that can bring the cockpit firmly into the twenty-first century. And as often happens in General Aviation circles, there will be questions concerning the need to ditch a functional panel for something newer.

All Change (For the Better)

It's not unusual for a long-time business aircraft pilot to push back on the suggestion of upgrading a panel, however – particularly when the older equipment still works for the flight operation. That old, familiar cockpit can hold genuine appeal, especially to those lacking any exposure to one of today's fully-integrated avionics packages. The sight of a new Primary Flight Display (PFD),

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A

blending the information of at least six analog dials – calibrated airspeed, altitude, heading, vertical speed, attitude and gyro-compass heading – into one display, could appear alien. Instead of round dials and needle indicators, three vertical tapes display speed, vertical speed, and altitude. Overlaid on the screen, the attitude indicator, turned coordinator (with an electronic slip/skid indicator), and the heading indicator. Indeed, some PFDs can also display one or more navigation indicators. Then there's the Multi-Function Display (MFD) on a second display showing the pilots’ navigational and weather information – typically presented as a chart or map with different informational overlays. Finally, the EICAS (Engine Indicating and Crew Alerting System) replaces multiple round-dial indicators, displaying the health and status of the aircraft’s systems. Typically, it includes fuel flow, engine speed, and temperature – and often the health of the electrical systems. An array of different types of sensors supply the data driving all the indicators, from airspeed and attitude to engine speed and temperatures.

Reasons to Upgrade

Among the many justifications for a panel upgrade is obsolescence; particularly the obsolescence of the

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A

Honeywell Primus Elite (photo courtesy of Honeywell Aerospace)

displays used in the earliest EFIS cockpits. Cathode Ray Tubes (CRTs) served well in those early EFIS packages, but light-emitting diode-driven displays started replacing CRTs years ago – and for several good reasons: •

• •

Power demand is among the best reasons for going all-in on integrated stacks. CRTs consume significant power and generate considerable heat behind the panel. CRTs are also slow to warm up, and heavy. Removing spinning-mass gyroscopic instruments and heavy CRTs can potentially remove hundreds of pounds of weight from the aircraft, translating directly into increased useful load, for additional fuel, materials or people. Liquid Crystal Displays also draw significantly less on the electrical system power, reducing demand on the aircraft's electrical system. Finally, integrated avionics offer capabilities simply unavailable from analog or early EFIS systems (e.g., the computers driving the EFIS displays of the integrated stacks can hold in their memory all the navigation charts pilots use).

Three (of Many) Example Panel Upgrade Candidates

1. Honeywell Primus Elite: Many an attractive flight panel upgrade options exists in today’s Business Aviation industry, meaning, for example, owners and operator of a Bombardier Global Express or Learjet 40/45, Embraer Legacy 600, Dassault Falcon 900EX/C, Cessna Citation X, Citation 550/560, or Dornier 328 with the Honeywell Primus 1000/2000 cockpit; or a Gulfstream GIV/GV with an SPZ-8400/8500 cockpit, all have an upgrade path to a modernized panel.

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“Today's EFIS packages only slightly resemble those predecessors. Today's integrated avionics stacks are still EFIS systems, but of a wholly different technology, look and layout.” As Honeywell points out, one major consideration for cockpit avionics upgrades is the upgrade trade-ins and savings on new insurance plans that have been introduced by Honeywell for its Primus Elite avionics suite – which is the modern replacement option for aging Cathode Ray Tube cockpit configurations. With Honeywell's Primus Elite upgrade, it is now possible for owners of older Bombardier Global Express jets to install the same technology featured in the new $70m Bombardier Global 7500, at a fraction of the cost. That’s what one Global Express owner experienced when they invested $5m in what Honeywell described as the “largest single aircraft update in the business jet space,” back in November 2018. That investment comes in at less than 10% of

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The Private Jet Company September.qxp_Layout 1 25/08/2021 11:31 Page 1

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Garmin G5000 on Beechjet

replacing the older Global with the newer Global 7500. It also saves weight, electrical system demand, and utility, thanks to new capabilities the crew can use with the newer panel. Garmin G5000: Garmin offers an upgrade for the Beechjet 400A and Hawker 400XP that replaces the original stack with Garmin's top-of-the-line G5000 integrated avionics system. The system meets all ADS-B 2020 mandates and includes WAAS/LPV. This upgrade eliminates the need for CASP and high annual maintenance costs. And it saves several hundred pounds in operating weight. For Beechcraft King Air operators, Garmin also has a path to upgrading the old panels to its original integrated flight deck – the G1000 (now upgraded to the G1000 NXi) – with more processing power and sharper displays. Avidyne IFD Upgrades: Avidyne’s FMS/LPV upgrade solution is a Flight Management System (FMS) that provides a better, more affordable way to navigate the skies, and can replace legacy FMSs with avionics up to today's capabilities. Avidyne’s IFD FMS/NAV/COM is an easy-to-use but powerful package.

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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The IFD550 and IFD545 provide SBAS/LPV precision navigation designed to meet accuracy and integrity requirements for ADS-B. And the FMS/LPV solution for legacy flight decks can be installed in weeks, as opposed to months, saving operators on downtime and installation costs. The IFD Series is a slide-in replacement for Garmin's GNS 530 and GNS 430, with Avidyne boxes sliding right into the same mounting tray, using the same connectors, thereby negating the need to modify or rearrange the existing panel. This system is compatible with legacy EFIS stacks, including Honeywell Primus 1000 and Collins Pro Line 21 packages.

There are More Options...

Avionics OEMs are busy developing and producing new products, with new capabilities, to ensure that the Business Aviation avionics retrofit market changes rapidly. Although we present you with this abbreviated sample, there’s plenty more to explore. So, if your older business aircraft's panel is getting old, or is lacking the desired capability, a panel upgrade could correct those shortcomings, reduce your aircraft’s weigh, and do so for far less than the cost of replacing the whole aircraft. ❙

MAKE MORE INFORMED AVIONICS DECISIONS with AvBUYER.com

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Southern Cross August.qxp_Layout 1 25/08/2021 11:32 Page 1

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Community News.qxp_Layout 1 24/08/2021 13:59 Page 1

COMMUNITY

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OEM Bites

Dassault Leads BizJet Industry in Product Support

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Bye Aerospace revealed that Skye Aviation LLC, a Denver, Coloradobased aircraft leasing company, has completed purchase deposits for 15 eFlyer 800 aircraft. Performance estimates for the eFlyer 800 include up to 320 knot cruise speed, 35,000 feet ceiling, and 500 nm range with 45-minute IFR reserves at 280 knots. https://byeaerospace.com

Dassault Aviation has been voted the top business jet OEM for product support for the third consecutive year, bettering its own AIN scores from 2020 with 8.7, up from 8.3. assault took top scores in parts availability, parts cost, AOG response, warranty fulfilment, technical manuals, and technical representatives. The company also earned a 9.2 score for overall aircraft reliability. Dassault Aviation was ranked a close second in the product support survey conducted by Professional Pilot magazine, where it was placed first for the speed of its AOG service. In recent years, there has been a growing need for expanded facilities and capabilities, and Dassault has responded by doubling its capacity through quality acquisitions and internal investments. By doing so, the company positioned itself well for the 2021 rebound in fleet activity, and a concurrent growth trend for MRO visits. Dassault’s customers are also benefitting from strong execution in spare parts inventory management, price control, rapid shipments, AOG service, and advanced technology – such as apps and web portals – to make factory and operator communication easier. The French OEM continues to emphasize customer outreach through multiple avenues, including its wellreceived M&O seminars. (When these factory-customer interactions were

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impossible due to the Covid-19 pandemic, the company pivoted to a highly regarded webinar series that gained a wide viewership among operators.) “It’s hard to imagine a more challenging year for supporting our operators, but we have been resourceful and committed,” said Jean Kayanakis, Senior Vice President, Worldwide Falcon Customer Service & Service Center Network. “…Our people displayed the truth of our motto ‘Whatever it takes.’ In many cases, they traveled around the world, enduring long quarantines and other challenges, to support our customers.” Dassault will now further expand services, like its industry-leading FalconCare guaranteed maintenance program, which will now offer operators more tailored coverage options; or FalconAdvantage which was created to provide a new Spares membership program with exclusive benefits, discounts and extended warranties. The company is also making big investments in the Falcon 6X product support program to ensure a smooth entry into service of the new aircraft next year. More information from www.dassaultfalcon.com

Cirrus has introduced the G2+ Vision Jet – offering optimized performance for expanded mission capabilities, Gogo InFlight WiFi for a connected cabin experience and bold, new colorways for a striking presence, in the air and on the ground. Zean Nielsen, CEO at Cirrus Aircraft, describes the G2+ Vision Jet as “the next step in continuing to transform personal aviation.” In addition, Cirrus announced the new FLEX Cargo Management System, designed to bring versatility and flexibility to the Vision Jet, and enabling the convenient storing of cargo in the cabin. The FLEX system, manufactured by Cirrus, adapts to the existing seat positions in the Vision Jet cabin using a suite of attachments to easily and safely stow a variety of cargo, without (in itself) adding significant weight to the aircraft. www.cirrusaircraft.com

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OEM Bites

Epic E1000 GX Receives FAA Approvals…

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Embraer and Avfuel Corporation announced a collaboration to bring Neste MY Sustainable Aviation Fuel (SAF) to Melbourne Orlando International Airport. Avfuel supplied Embraer with Neste MY SAF at its Melbourne, Florida, facility by delivering the fuel to Sheltair (KMLB) for storage and handling. Embraer aims to use the SAF in ongoing operations at its executive jet division headquarters in Melbourne. https://executive.embraer.com/

Epic Aircraft’s Next Generation single-engine turboprop, the E1000 GX, featuring Garmin’s GFC 700 Automated Flight Control System and the Hartzell 5-blade composite propeller, has received FAA Type Certification. he addition of the GFC 700, an advanced Attitude & Heading Reference System (AHRS)-based flight control system, and Hartzell 5-blade composite propeller combine to offer improved performance, safety, comfort and versatility. The Garmin GFC 700 provides flight director, autopilot, yaw damper, automatic trim capabilities, emergency descent protection, coupled go-around, and more. According to Doug King, CEO, Epic Aircraft, the instrument offers “full integration with our G1000 NXiequipped flight deck, along with impeccable ease of use and advanced safety features. It’s a perfect upgrade to our world-class line of E1000 aircraft.” According to King, Epic has also seen the benefits from the Hartzell 5-blade propeller, including improved speed, climb, range, payload and take-off performance, “plus, we are experiencing quieter operations inside and outside the cabin”. The Hartzell 5-blade propeller provides stronger, composite resin-injected blades that allow for a thinner, wider air-

T

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foil which optimizes flight performance, offering faster take-off acceleration and enhanced speed, versatility and comfort. …And Continues to Build its Support Network As Epic Aircraft continues to build its customer support network around the US, it has announced Fort Worth-based Broadie’s Aircraft and Las Vegas-based Lone Mountain Aviation & Avionics as new Authorized Service Centers. Broadie’s will serve the central southwest region of the US, while Lone Mountain Aviation & Avionics will serve the southwest region. Both centers will be authorized to provide inspection, maintenance, and repair services for the Epic E1000, the Epic E1000 GX, as well as the legacy experimental Epic LT. Having previously also installed Premier Aircraft Services (based in Fort Lauderdale) for the southeast region, Epic is in the process of finalizing agreements with additional service center partners to establish a nationwide service network. More information from: www.epicaircraft.com

Gulfstream recently surpassed 500 installations of the Inmarsat Jet ConneX in-flight connectivity platform on its large-cabin business jets. The robust Wi-Fi solution is available on new aircraft, and can be retrofitted on qualifying existing aircraft. www.gulfstream.com

VoltAero’s pioneering Cassio hybridelectric aircraft is now available for US fractional ownership through the company’s teaming with KinectAir. KinectAir’s Pioneer program opens opportunities for fractional owners to reserve share positions, or whole aircraft, in four-seat Cassio 330s. www.voltaero.aero

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JetNet September.qxp_Layout 1 25/08/2021 11:35 Page 1

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Aero-Dienst Wins Four Year DLR Contract Nuremberg-based Aero-Dienst has won its bid for a four-year contract with the Deutsches Zentrum für Luft- und Raumfahrt (DLR) to maintain the Falcon 2000LX EASy ISTAR (In-flight Systems & Technology Airborne Research) aircraft.

C

overing all work to be done on the Falcon 2000LX that is not covered by DLR’s own maintenance organization, the scope of work AeroDienst will cover includes base maintenance such as 12-, 24-, and 36month inspections, through to special inspections of engines or structural parts that are required in connection with internally- or externally-commissioned research projects involving the ISTAR. “We are extremely pleased to have been able to conclude this four-year contract with the German Aerospace Center,” said Florian Heinzelmann, Dassault Maintenance Manager at AeroDienst. “This definitely underscores our

capabilities on the global stage.” With the conclusion of the initial conversion phase at Dassault according to the DLR’s specifications 18 months ago, ISTAR has become the newest member of the DLR fleet. When fully equipped, ISTAR will be capable of testing the flight characteristics of new aircraft designs under real-life operating conditions either directly or virtually, and either manned or unmanned. The aircraft is used to ascertain data for optimized aerodynamics, flight guidance, and flight control. It also opens up the way to another major step towards digital transformation in aviation, since the DLR will create the first ever digital twin for ISTAR that will

accompany it for its entire service life. Major maintenance work, such as the annual inspections, will be carried out by the Aero-Dienst team directly at the ISTAR base in Braunschweig. This allows the DLR specialists to make efficient use of the research aircraft’s downtime for instrument installations and modifications as part of upcoming research projects. Aero-Dienst employs around 30 technicians on its Falcon team with decades of experience and expertise in the maintenance of Dassault Falcon business jets. More information from www.aero-dienst.de

Recap on key Business Aviation news, appointments, and events with

AVBUYER

116  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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Community News.qxp_Layout 1 24/08/2021 14:00 Page 4

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Community Appointments

Holly Gilewski

Jim Morford

Tim Morgan

Holly Gilewski is the newest member of the Aero Asset Aircraft Sales Support Team. A graduate from EmbryRiddle Aeronautical University, Ms. Gilewski worked at Lockheed Martin and United Launch Alliance prior to joining Aero Asset. Jim Morford joined Aero Asset, the global helicopter sales and market intelligence firm, as its new Director of Market Research. Morford previously worked at AMSTAT, and will be based in New Jersey. Tim Morgan is the new Vice President of Engineering at Raisbeck Engineering. In his new role, Morgan will be responsible for leading the company’s engineering activities, overseeing product development and

Lindsey Oliver

Robert Suarez

certification of current and future programs, and further developing the company’s strategic goals of accelerating business growth. Lindsey Oliver, Operations and Development Manager for the British Business General Aviation Association is moving into a new role as Director General, effective immediately. She has worked alongside CEO Marc Bailey, overseeing the running of the Association, since 2009. Robert Suarez has joined the Duncan Aviation Aircraft Sales & Acquisitions team as Market Research Analyst. Suarez’s responsibilities include tracking Duncan Aviation core aircraft markets, creating marketing campaigns, and assisting in the consignment, acquisition, and sale of aircraft. T

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 www.AVBUYER.com

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SA2022_Exhibitor01_AvBuyer_205x270mm.pdf 1 25/7/2021 1:14:46 AM


Clip Group 2020 Bell 505 Jet Ranger X August.qxp_Heeren Cit Ultra sep 25/08/2021 14:21 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

120  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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

www.AVBUYER.com


Falcon Aviation LLC August.qxp_Empyrean 25/08/2021 14:23 Page 1

S H O W C A S E

1995 Gulfstream GIVSP Serial Number: Registration: Airframe TT: Landings:

1252 N707CW 8,588 4,824

Beautiful must see airplane with brand new paint and interior. Two Rolls-Royce Mk 611-8 engines provide 13,850 lbs of thrust each. Inspection interval is 8,000 hours. The Roll-Royce upgraded engine is responsible for 15% improved fuel consumption and decreased noise levels. Another addition is the six-screen, color EFIS. The Honeywell SPZ-8000 avionics suite is found in the GIVSP’s cockpit. It includes Collins radios, FMS and dual Honeywell laser inertial reference systems. The GIVSP is an ideal midsize, intercontinental-range business jet. Gulfstream’s aircraft have evolved through new technologies and improvements, and the GIVSP is evidence of this. With a new design, upgraded engines and additional space, the GIVSP offers great performance in the intercontinental class of jets; so great that Gulfstream modeled most of their latest jets off of the GIVSP Engines ROLLS ROYCE TAY 611-8 Next Engine Event, Midlife due September 2024 APU Honeywell GTCP36-150 (G). 8,788 hours Avionics Autopilot: Honeywell SPZ-8400 IFCS Avionics Package: Honeywell SPZ-8400 IFCS/Collins

Communication Radios: Dual Collins w/8.33 kHz spacing CVR: Fairchild F1000 DME: Dual Collins EFIS: Honeywell 6-tube FDR: Fairchild A100A (QAR) Flight Director: Honeywell SPZ-8400 IFCS FMS: Dual Honeywell NZ-2000 w/6.0 software GPS: Dual Honeywell 12-channel GPS Hi Frequency: Dual Collins HF-9000 w/Motorola NA-138 SELCAL IRS: Triple Honeywell LASEREF II Navigation Radios:Dual Collins w/FM immunity RTU-4210 Interior Excellent Condition! All Wood & Plating Refurbished in 2015. Executive/12 passenger, Earthtones Leather & Fabric Interior. Seating: Forward 4-place club, Mid-cabin 4-place dining group, Aft 4-place Club, 2 jumpseats Refreshment: Full Aft galley with Oven, Sink, Storage, Microwave Etc. Cabinetry: Mid-cabin Credenza for Storage Entertainment: Airshow Cabin Entertainment System w/DVD, CD, Three Monitors Exterior New Paint 2019 Duncan Aviation Overall Chevron White with Blue & Gray Stripping Location Florida, USA Price: $4,500,000

Falcon Aviation LLC Jupiter, Florida USA

www.AVBUYER.com

Tel: +1 (321) 292-9965 Email: jamie@falcon50aviation.com

AVBUYER MAGAZINE  Vol 25 Issue 9 2021 

121


Mesotis September.qxp 25/08/2021 14:25 Page 1

S H O W C A S E

2009 Bombardier Learjet 60XR Serial Number: Registration: Airframe TT: Landings:

60-372 OE-GSE 5596 3187

 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 Engines #1 PW305A #2 PW305A Engines 5501 3126 Cycles 5501 3126 Last actuals as of 8 April 2020 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 • MNPS, RNP-5, RNP-10 Capable • ARTEX 406-2 ELT w/Nav interface • Honeywell Mk V EGPWS w/windshear • L3 Communications WX-1000E Stormscope Interior & entertainment EXTRAORDINARY CABIN DESIGN Eight (7+1) seats: • RH 3 place divan • 4 place club seating • 1 belted toilet seat Location: Austria Price: Make offer

Mesotis Jets Thomas Thums Fleischmarkt 7/3 1010 Vienna Austria

122  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

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

www.AVBUYER.com


1 Marbale Universal June.qxp_Empyrean 25/08/2021 14:26 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

www.AVBUYER.com

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

AVBUYER MAGAZINE  Vol 25 Issue 9 2021 

123


P124-127.qxp 25/08/2021 14:41 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

Gulfstream G550

The Ritchie Group Price:

Make offer

Year:

2012

S/N:

5364

Reg:

-

TTAF:

2,268.7

Location: USA & Canada

Tel: +1 (314) 409-4791 E-mail: sales@jet-transactions.com AVAILABLE NOW. SCHEDULE YOUR SHOWING TODAY! JetWave Ka-Band High Speed Worldwide Satellite Internet. Fresh 96-Month Inspection Completed at Gulfstream Dallas. Paint and Interior Upgrades Completed at West Star Aviation. Highly Optioned with RAAS and SVS. 2020 Compliant! ADS-B Out (DO 260B), CPDLC FANS 1/A, Enhanced Navigation, Lightning Sensor System & Airshow 4000. Impeccable Maintenance History. 16-Pax with Full-Service Aft Galley. Forward Crew Lav. TTSN: 2,238.7 hrs. Landings: 972. Engines: Rolls Royce BR700-710C4-11 (G550). APU: Honeywell RE220 (G550).

www.jet-transactions.com

Airbus/Eurocopter AS 365N-3

Nigel Watson Price:

Please call

Year:

2008

S/N:

6815

Reg:

M-LVIA

TTAF:

955

Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 E-mail: emma@nigelwatson.im 5 passenger VIP Cabin, blue and silver paint. Has exclusively been for VIP operation. Immediately available to view. Full valuation report and equipment lists available to interested parties. Well maintained; airworthy & operational with no damage history; fresh annual 4/19. Fully enrolled on PBH and SBH since new. Eng #1 - 3240h; Eng #2 - 955. Proposals for refurbishments to paint and interiors available.

Location: France

Airbus/Eurocopter EC 145

Nigel Watson Price:

Please call

Year:

2009

S/N:

9242

Reg:

M-LUNA

TTAF:

1455

Location: France

124  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

Tel: +44 (0)162 488 0135, +44 (0)776 544 4043 E-mail: emma@nigelwatson.im Only 1455TT, 7 passenger VIP Cabin, blue and silver paint. Has exclusively been for VIP operation. Available from November 2019. Full valuation report and equipment lists available to interested parties. Well maintained; airworthy & operational; fresh annual 9/20. Fully enrolled on PBH and SBH since new. Eng #1 - 1455h; Eng #2 - 1449h. Proposals for refurbishments to paint and interiors available www.nigelwatson.im/brokerage/ec145

www.AVBUYER.com


P124-127.qxp 26/08/2021 12:39 Page 2

Airbus/Eurocopter AS 350

CK's Supermarket Price:

Please call

Year:

1981

S/N:

1465

Reg:

G-EJOC

TTAF:

5875

M A R K E Tel: +44 (0)155 478 8717 T Ltd E-mail: yvonneloveridge@cks.wales P L For Sale - AS350 in excellent condition except requiring a fuel A control unit and a main gearbox oil pump. Offers in excess of C £195,000 considered. E Please contact Christopher on 07970 822299 for further details

Location: United Kingdom

Airbus/Eurocopter AS 350B-1

Tel: +43 (0) 664 819 36826 E-mail: hermann.eder@sennair.at

Hermann Eder Price:

Please call

Year:

1990

S/N:

2296

Reg:

-

TTAF:

8900

We are offer our VIP AS350 B1 Helicopter which is currently in use for sightseeing and VIP flights. Carefully stored in hangar only and very well maintained. - This AS350 B1 comes wiht a 5 or 6 passenger configuration - Cargo hook and swing - VIP leather interior - Great component times - Modul 1 - 5 are new New Starflex - Newly painted - 600 hrs 24 months inspection currently done If you have any question, please do not hesitate to contact us

Location: Austria

Airbus/Eurocopter AS 350B-2

Tel: +44 (0)151 448 0388 E-mail: mtonks@helicentre.com

Helicentre Liverpool Price:

Please call

Year:

1999

S/N:

3187

Reg:

G-OGUN

TTAF:

2905

A well appointed AS350B2 operated on AOC. 4 rear seat configuration with dark blue leather interior. Night light. Radalt. HSI. SFIM autopilot 2 axis. 2 x 8.33 nav/comm. ELT. Skymap IIIC. Dual wipers. Date of refurbishment 2016. Float hardpoints fitted

Location: United Kingdom

Airbus/Eurocopter BO 105

Tel: +49 (0) 291 952 7570 E-mail: info@klassen-aviation.com

KLASSEN AVIATION Price:

€99,000

Year:

1974

S/N:

S-121

Reg:

-

TTAF:

16408

The helicopter is without engines and tandem hydraulic. The offered retail price is offered without the engines. The engines are offered separately.

Location: Germany

Bell 206B II

Turweston Helicopters Price:

£110,000 Excl. VAT

Year:

1968

S/N:

208

Reg:

G-BXRY

TTAF:

15,951

Location: United Kingdom

www.AVBUYER.com

Tel: +44 (0)1280 703 109, +44 (0)7831 239 076 E-mail: Phil@turwestonhelicopters.co.uk

Bell 206 B2 (Upgraded to a B2 in 1999) in supurb condition, Annual was due on 08/10/2019, private use by owner, a B2 machine completly updated by Edwards & Associatiates, (Bell Helicopter Co) The 250-C20B engine has been removed and dissasembled for inspection so the aircraft is available with the engine (in parts) Immaculate paintwork, very nice cloth interior, carpet protectors. New 8.33 radios. An absolute bargin for a turbine machine. Will consider part exchange for a Robinson R44. NOW REDUCED to £110k for the aircrft including the engine in parts but minus the Turbine assembly. MAKE OFFER - Price Reduced

AVBUYER MAGAZINE R Vol 25 Issue 9 2021 R

125


P124-127.qxp 25/08/2021 14:41 Page 3

M A R K E T P L A C E

McDonnell Douglas 902 Explorer

DynamicPitch Ltd Price:

Please email

Year:

2002

S/N:

900-00103

Reg:

G-CIOS

TTAF:

2900

Location: United Kingdom

McDonnell Douglas 902 Explorer

DynamicPitch Ltd Price:

Please email

Year:

2007

S/N:

900-00121

Reg:

G-HMDX

TTAF:

3600

Location: United Kingdom

McDonnell Douglas 902 Explorer

DynamicPitch Ltd Price:

Please email

Year:

2000

S/N:

900-00074

Reg:

G-SASR

TTAF:

6621

Location: United Kingdom

Agusta AW109S Grand

Angelo Rinaldi Price:

Please email

Year:

2007

S/N:

22032

Reg:

I-ELFA

TTAF:

2600

Location: Italy

Hughes OH-6

Phil Connolly

A well specified MD902 Explorer helicopter in excellent condition. PWC PW207E Engines. Category A, Single Pilot. IFR Certified. NVIS Certified. EMS/Multirole Configuration. The aircaft can be specified, painted or modified to the new owners exact specification. A Spares package and ongoing maintenance/spares support also available.The MD902 Explorer posseses No Tail Rotor (NOTAR) Technology, an ultra smooth rotor system with plenty of ground clearance, spacious cabin, and powerful Pratt & Whitney engines. All resulting in a supremely capable and cost effective helicopter. The true definition of a multi-role helicopter, this MD902 Explorer is a worthy addition to your helicopter fleet

Tel: +44 (0)794 359 1121 Email: bobby@dynamicpitch.net This distinctive looking, later serial number MD902 Explorer helicopter is in excellent condition and ready to fly. The aircaft can be specified, painted or modified to the new owners exact specification. A Spares package and ongoing maintenance/spares support is also available. PWC PW207E Engines. Single Pilot, Category A IFR Certified. NVIS Certified. Utility / Air Medical Interior. The MD902 Explorer posseses No Tail Rotor (NOTAR) Technology, an ultra smooth rotor system with plenty of ground clearance, spacious cabin, and powerful Pratt & Whitney engines. All resulting in a supremely capable and cost effective helicopter. The true definition of a multi-role helicopter, this MD902 Explorer is a worthy addition to your helicopter fleet.

Tel: +44 (0)794 359 1121 Email: bobby@dynamicpitch.net A great example of an MD902 Explorer in excellent condition. Available to purchase now. The aircraft is presented in attractive British Racing Green adorned with a striking swirl of Super White, complimenting those classic Explorer lines.•PWC 206E Engines •Cat A, Single Pilot Day/Night VFR Certified• NVIS Certified • Utility / Air Medical Interior. The aircaft can be specified, painted or modified to the new owners exact specification. A Spares package and ongoing maintenance/spares support also available. The MD902 Explorer posseses No Tail Rotor (NOTAR) Technology, an ultra smooth rotor system with plenty of ground clearance, spacious cabin, and powerful Pratt & Whitney engines. Get in contact to discuss your requirements.

Tel: +39 (0) 856 922 725 E-mail: angelo.rinaldi@hoverflysam.it AGUSTA standard cabin configuration Helicopter with N°2 Pratt and Whitney PW207C engines equipped. Avionics: Single Pilot IFR “Garmin – Bendix/King” Included: - AC Power Sys (n. 2 Inverters) - Plot/Co-pilot Navigation Instruments (LCD EADI e EHSI, stand-by ADI) - Directional Gyro C-14A Honeywell - Vertical Gyro (N. 1) 46060-11 Flightline Sys Additional equipment: - Pilot/Copilot Headphone Set - Four points shoulder harness with inertia reels and safety belts on all seats - Baggage Compartment light - Pilots Open doors Jacks - Magnetic Particle detector System. Additional information: - Fabric leather seat covering - Central seat with see-through arm - N. 6 all crash resistant seats - Four points shoulder harness with inertia reels and safety belts on all seats

Tel: +44 (0)1772 687 775 E-mail: sales@huey.co.uk

Price:

USD $500,000 No VAT This historic aircraft from the Vietnam war is of significant importance

Year:

1969

S/N:

301381

Reg:

G-OHGA

TTAF:

-

Location: United Kingdom

126  Vol 25 Issue 9 2021  AVBUYER MAGAZINE

Tel: +44 (0)794 359 1121 Email: bobby@dynamicpitch.net

to the history of Helicopters. This helicopter is on the UK CAA Register will be sold with its current “UK Permit to Fly”. The Helicopter was previously Flown on the FAA “Experimental Category” It was carefully restored to its original US Army Livery including replica M134 mini gun and is in stunning condition. Upgrades and modifications over standard OH-6A: Engine upgraded to 420 SHP Rolls Royce Allison T63 engine, with STC. This helicopter has been kept in dual control configuration and all component times are excellent. Manuals and ground handling equipment are available www.facebook.com/hueyhelicopteruk

www.AVBUYER.com


P124-127.qxp 25/08/2021 14:42 Page 4

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

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

Leonard Hudson Drilling

BELL 412EMS

Price:

Offer

Year:

1981

S/N:

33017

Reg:

N554AL

TTAF:

15265

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)

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

Leonard Hudson Drilling Price:

Please Call

Year:

1991-1996

S/N:

Call for details

Reg:

Call for details

TTAF:

Call for details

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

1995 Sikorsky S-76B

Simon Lambert Price:

$1,125,000

Year:

1995

S/N:

760430

Reg:

HB-ZMS

TTAF:

1689

Location: Switzerland

Aircraft Spare Parts

Wheels, Starters, Brakes, etc. Outright and Exchange

Tel: +44 (0)203 290 3311, +44 (0)771 732 7065 E-mail: slambert@auraaviation.com VIP configured Sikorsky S76B - 6 Pax. Deliverable on EASA or N - Register. Current valid Export Certificate of Airworthiness. EASA maintained to the highest standard by RUAG. Supplied with 12 / 24 month inspection just completed, plus a 200 hour look forward. 5 Seat VIP Cabin with leather Interior in impeccable condition. 2 Seats with Credenza plus bench seat. Cocoon Cabin - Cockpit Divider. Exceptionally smooth aircraft flight. Engine Configuration: 2 Pratt & Whitney Canada PT6B36B, 732 kW rated. Air conditioning. Emergency Floats Price Reduced

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 www.AVBUYER.com

Buy * Sell * Trade

SALES • ACQUISITIONS • CONSULTING

832-934-0055 AVBUYER MAGAZINE R Vol 25 Issue 9 2021 R

127


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Turboprop September.qxp_Layout 1 26/08/2021 12:36 Page 2


P130 September.qxp 26/08/2021 12:41 Page 1

Aircraft For Sale • AIRCRAFT • HELICOPTERS

AIRCRAFT

PAGE

AIRBUS A318 Elite . . . . . 5 A319 VIP . . . . . . 5, 6

BOEING/MCDONNELL DOUGLAS BBJ . . . . . . . . . . . 25, 132 BBJ3 . . . . . . . . . 18 737 35B . . . . . . . 124 787-8 VIP . . . . . . 5, 19, 25, 132 787-9 . . . . . . . . . 18

AIRCRAFT

PAGE

AIRCRAFT

CJ3+ . . . . . . . . . . 17 CJ4. . . . . . . . . . . . 14 Excel . . . . . . . . . . 73, 79 Sovereign. . . . . . 77 Ultra . . . . . . . . . . . 14 172S Skyhawk. . 17 182S Skylane . . 17 500 . . . . . . . . . . . . 33

Challenger 300 . . . . . . . . . . . 83 601-3AER. . . . . . 18, 73 601 3R . . . . . . . . 33 604 . . . . . . . . . . . 19, 109, 132 605 . . . . . . . . . . . 14, 18, 19, 132

Learjet 36A . . . . . . . . . . . 127 45XR . . . . . . . . . . 9, 13, 53 60 . . . . . . . . . . . . 19, 132 60XR . . . . . . . . . . 19, 122, 132

HAWKER BEECHCRAFT CIRRUS

King Air

SR20 G2 GTS . . 17 SR22 G2 GTS . . 17

DASSAULT FALCON 7X . . . . . . . . . . . . 2, 19, 24, 73, 83 8X . . . . . . . . . . . . 3, 73 50 . . . . . . . . . . . . 33 50EX . . . . . . . . . . 19, 63, 132 900EX . . . . . . . . 19, 79, 132 900EX EASy . . . 2, 10, 19, 132 900LX . . . . . . . . . 19 2000 . . . . . . . . . . 73, 83 2000EX. . . . . . . . 1, 131

III . . . . . . . . . . . . 33 VII . . . . . . . . . . . . 17 XLS+ . . . . . . . . . . . 105 CJ1. . . . . . . . . . . . 77

B200 . . . . . . . . . . 105 B350 . . . . . . . . . . 105 C90GTi . . . . . . . . 105 F90-1 . . . . . . . . . 13

Hawker 400A . . . . . . . . . . 33, 77 800A . . . . . . . . . . 33 800XP . . . . . . . . . 53, 105 900XP . . . . . . . . . 105 4000 . . . . . . . . . . 13, 109

NEXTANT 400XTi . . . . . . . . 9

PIAGGO

EMBRAER Legacy 500 . . . . 19, 109, 132 Legacy 600 . . . . 14 Legacy 650 . . . . 132 Lineage 1000E . 131 Phenom 300 . . . 77, 105

CESSNA Citation

AIRCRAFT

280 . . . . . . . . . . . 73, 77, 131 450 . . . . . . . . . . . 73, 105 500 . . . . . . . . . . . 123 550 . . . . . . . . . . . 5, 11, 19, 24, 25, 79, . . . . . . . . . . . . . . . 105, 124 650 . . . . . . . . . . . 11 650ER. . . . . . . . . 11, 19, 132

BOMBARDIER Global 5000 . . . . 18, 132 Global 6000 . . . . 5, 10, 18, 19, 24, 79, . . . . . . . . . . . . . . . 132 Global 6500. . . . 5 Global Express . 5, 73 Global Express XRS. 5, 7, 10, 132

PAGE

GULFSTREAM III . . . . . . . . . . . . . 79 IV SP . . . . . . . . . . 73, 105, 121 V. . . . . . . . . . . . . . 101, 105 150 . . . . . . . . . . . 73 200 . . . . . . . . . . . 19, 73, 132

P180 Avanti . . . 29

PILATUS PC-12/47E . . . . . 19 PC-12NG . . . . . . 14

PIPER Cheyenne IIIA . . 33

SOCATA TBM 700B . . . . . 17 TBM 850. . . . . . . 77 TBM 930. . . . . . . 77

PAGE

TBM 940. . . . . . . 77

HELICOPTERS AIRBUS/ EUROCOPTER AS BO 105. . . . . 125 AS 350 . . . . . . . . 125 AS 350 B-1 . . . . 125 AS 350 B-2 . . . . 125 AS 365N-3 . . . . . 124 EC 120B . . . . . . . 9, 105 EC 130B4. . . . . . 9 EC 135T2 . . . . . . 105 EC 145 . . . . . . . . 124

AGUSTAWESTLAND AW109E Power . 14 AW109S Grand. .126 AW109SP. . . . . . 18

BELL 206 . . . . . . . . . . . 14 206B II . . . . . . . . 105 212 . . . . . . . . . . . 127 412EP . . . . . . . . . 105 412EMS . . . . . . . 127 505 . . . . . . . . . . . 120

HUGHES OH-6 . . . . . . . . . . 126

MCDONNELL DOUGLAS 902 Exployer . . 126

SIKORSKY S-76B . . . . . . . . . 127

Advertiser’s Index 1st Source Bank ................................................. 69 Action Aviation .................................................. 101 AeroBuyNow ........................................................ 93 Aircraft Blue Book ........................................... 117 Airline Transport Professional ........................ 103 Aradian Aviation ............................................... 105 Assent Aeronautics............................................. 47 Avpro ..................................................................... 73 Carolina GSE ...................................................... 91 Central Business Jets .................................1, 131 Clip Aviation ...................................................... 120 Concorde Battery .............................................. 91 Dubai Airshow .................................................. 113 Dassault Falcon Pre-Owned ........................ 2 - 3 Duncan Aviation ................................................. 53 Eagle Aviation....................................................... 17

ElliottJets .............................................................. 77 Engine Assurance Program .............................. 21 Falcon Aviation ................................................. 121 Freestream Aircraft ................................... 24 - 25 General Aviation Services................................. 83 GE OnPoint ......................................................... 39 Global Jet Capital .............................................. 67 Global Jet Monaco .......................................... 5 - 7 Gogo Business Aviation .................................... 87 Hatt & Associates ............................................... 13 Jetbrokers ............................................................ 33 Jetcraft Corporation ......................... 18 - 19, 132 JetHQ ...................................................................... 9 JETNET ............................................................... 115 Jet Values .............................................................. 69 Leading Edge Aviation Solutions .................... 79

Lone Mountain Aircraft Sales .......................... 29 Marbale Universal ............................................ 123 Mesotis Jets ...................................................... 122 NBAA..................................................................... 92 OGARAJETS ....................................................... 59 Par Avion ............................................................... 63 Pratt & Witney ...................................................... 37 Registry of Aruba ................................................ 55 Registry of Malta ................................................. 51 Rosen Visor ....................................................... 103 Southern Cross................................................. 111 Sparfell & Partners ..................................... 14 - 15 Stevens Aerospace ........................................... 97 TAE ........................................................................ 43 The Jet Business......................................... 10 - 11 The Private Jet Company ................................ 109

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AvBuyer (USPS 014-911), September 2021, Vol 25 Issue No 9, is published monthly by AvBuyer Ltd, 1210 West 11th Street, Wichita, KS 67203-3517 and has a targeted circulation to decision makers within business and corporate aviation throughout the world. It is also available on Annual Subscription @ UK £40 and USA $65. POSTMASTER: Send address changes to: AvBuyer Magazine 1210 West 11th Street, Wichita, KS 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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AvBuyer Magazine September 2021  

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

AvBuyer Magazine September 2021  

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

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