avbuyer magazine may 2016

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MESINGER JET SALES BROKERAGE & ACQUISITIONS +1 303 444 6766 JETSALES.COM SEE PAGES 16–19 FOR FURTHER DETAILS MESINGER JET SALES IS PROUD TO REPRESENT GULFSTREAM G550 S/N 5180, N1FS GULFSTREAM G280 S/N 2027, N1FC A V B UYER BUSINESS AVIATION INTELLIGENCE May 2016 Aircraft Comparative Analysis: Legacy 650 New - International Operations Series THIS MONTH www.AVBUYER.com

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AvBuyer Magazine May 2016 edition

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  • MESINGER JET SALESBROKERAGE & ACQUISITIONS

    +1 303 444 6766 JETSALES.COM

    SEE PAGES 1619 FOR FURTHER DETAILS

    MESINGER JET SALES IS PROUD TO REPRESENT

    GULFSTREAM G550 S/N 5180, N1FSGULFSTREAM G280 S/N 2027, N1FC

    AVBUYERB U S I N E S S A V I A T I O N I N T E L L I G E N C E

    May 2016

    Aircraft Comparative Analysis: Legacy 650New - International Operations Series

    THIS MONTHwww.AVBUYER.com

    Mesinger FC May 2016.qxp_FC December 06 20/04/2016 15:55 Page 1

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  • eter Drucker, the late professor ofmanagement and respected author ofmany business textbooks, stated thatthe purpose of a company is to create

    and keep a customer by using its uniquecapabilities to satisfy the obvious and latentneeds of the buyer. Readers of AvBuyer printand digital content include companies andentrepreneurs with needs for Business Aviation.Our editorial resources are directed to helpingthem understand the value of business aircraftand steering their attention to how successfulfirms utilize this highly effective form oftransportation to fulfill business needs.

    We also serve the informational needs ofsales professionals who engage in businessaircraft transactions, thus helping them keepabreast of market conditions, meet customerexpectations and be more successful. Wellinformed buyers and sellers lead to successfuland sustainable relationships.

    Many reasonssome obvious and othersmore subtleexist for using Business Aviation.First and foremost is the need fortransportationan enabling technology foreconomic growth and improved quality of life.The fact that society benefits from a safemeans of time-efficient travel is undisputable.Furthermore, there is no doubt that ScheduledAirlines are unable to provide service to thevast majority of airports throughout the globe.Business Aviation in one of its many formsfrom charter to full ownershipfulfills the needfor timely and efficient travel to manyimportant destinations.

    Effective use of travel time is another keyreason for selecting Business Aviation. Withtodays connectivity, a business aircraft is trulyan office that moves. Travel time becomesparticularly effective business timethere areno interruptions at Flight Level 410. AndBusiness Aviation provides the highest level ofindustrial security. Everyone onboard abusiness aircraft is known to either the leadpassenger or the aircraft crew.

    Decision makers who select Business

    Aviation probably have additional reasons forutilizing it as an element within their mix oftravel options. Some leaders demand theunique control over schedule and mobility thatbusiness aircraft provide. Others may embracethe ethos of enabling the best use of acompanys two most important assetspersonnel and time.

    Business Aviation uniquely satisfies acompanys need to maximize productivity,which in turn maximizes profits forshareholders. Like all industries, marketconditions for buying and selling businessaircraft range from great to challenging as thegeneral economy ebbs and flows. But restassured that the fundamental need for BusinessAviation prevails. Marketing professionals whoaddress that need will succeed, even inchallenging times.

    This MonthWithin this edition, be sure to read whyBusiness Aviation is so important to Justiss Oil,in spite of the difficulties experienced withinthe oil industry at this time (p52). MeanwhileJessica Pownell concludes her series onimporting a jet into the US (p62).

    With EBACE set to take place in Genevalater this month, Mike Chase reviews theEuropean BizAv Fleet (p36). We also look atsome of the basic considerations for anyonelooking to lease an aircraft (p42).

    For the Flight Department, Ken Elliottconcludes his series on Aircraft Connectivity(p72) while Dave Higdon begins a valuableseries on International Operations, developedto inform those with national and internationaltravel needs (p82). And after just completing ajet purchase, Flight Department ManagerAndre Fodor offers some excellent tips onobtaining Added Value from your aircraftpurchase (p86).

    Jack Olcott - Editorial Director & PublisherAvBuyer -Your source for Business Aviation Intelligence

    PSatisfying Need

    4 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    WelcomeEditors EDITORIALEditorial Director / Publisher

    J.W. (Jack) Olcott1- 201 572 [email protected]

    Commissioning & Online EditorMatthew Harris1- 800 620 8801+44 (0)208391 6777 [email protected]

    Editorial Contributor (USA Office)Dave Higdon

    [email protected]

    Consulting Editor Sean OFarrell1- 800 620 8801

    +44 (0)20 8391 [email protected]

    ADVERTISINGLinda Blackburn (USA Sales)

    1- 614 418 [email protected]

    Lise Margin (USA Sales)1-703 818 [email protected]

    Maria Brabec (European Sales)+420 604 224 828 [email protected]

    Karen Price1- 800 620 8801

    +44 (0) 208391 [email protected]

    STUDIO/PRODUCTIONHelen Cavalli / Mark Williams

    1- 800 620 8801+44 (0)208391 [email protected]@avbuyer.com

    CIRCULATIONBarry Carter1- 800 620 8801+44 (0)208391 [email protected]

    AVBUYER.COMMichael Myburgh

    [email protected]

    Emma Davey [email protected]

    MANAGING DIRECTORJohn Brennan1- 800 620 8801+44 (0)208391 [email protected]

    USA OFFICE1210 West 11th Street, Wichita, KS 67203-3517

    EUROPEAN OFFICETrident Court, 1 Oakcroft Road, Chessington, Surrey, KT9 1BD, UK

    +44 (0)20 8391 6770

    PRINTED BYFry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055

    Mechanicsburg, PA 17055

    B U S I N E S S A V I A T I O N I N T E L L I G E N C E

    AvBuyer is MovingWith effect from the 1st June Avbuyer will operate from:

    AvBuyer House - 34A High Street - Thames Ditton - Surrey KT7 0RY - UKTel: +44 208 255 4000

    Visit the AvBuyer team at EBACE - Booth U045

    Editor Welcome Final.qxp_JMesingerNov06 21/04/2016 14:15 Page 1

  • AMAC Aerospace Switzerland AG

    Henric Petri-Strasse 35

    4051 Basel, Switzerland

    Telephone + 41 58 310 31 31

    [email protected]

    www.amacaerospace.com

    The largest privately-owned facility in the world offering VIP, private and corporate aviation services.

    Three Core Services: Maintenance Completion and Refurbishment Charter / Aircraft Brokering

    Swiss Excellence in Business Aviation

    ad_amac_avbuyer_may_2016.indd 1 12.04.16 17:36

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  • Editorial Focus

    The Basics of Business Aviation Leasing:

    With a wide range of types accommodating a variety of needs, what are the key

    considerations behind an aircraft lease?

    42

    8 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    High Flyers Interview:With all the talk of tough times in the oil

    industry, discover the reason the companyKing Air remains indispensable to Justiss Oil

    52

    112

    82International Business Aviation Operations:

    Dave Higdon starts a new series on transiting the worlds airspace, starting

    with an overview of North America

    Comparative Analysis Embraer Legacy 650

    How does Embraers Legacy 650 square up against Gulfstreams GIV-SP?

    Find out here

    Contents Layout May16.qxp 20/04/2016 10:59 Page 1

  • ContentsVolume 20, Issue 5May2016

    May 2016 AVBUYER MAGAZINE 9Advertising Enquiries see Page 4 www.AVBUYER.com

    B U S I N E S S A V I A T I O N I N T E L L I G E N C E

    BizAv Intelligence20 Business Aviation Market

    Summary: Market trends, indicators, assessments and forecasts, introduced by Rollie Vincent

    36 2016 European BizAv FleetReport: Using JETNET data,Mike Chase assesses the healthof the worlds second largestbizjet, and third largest busi-ness turboprop fleet

    48 Business Aviation Market Insights: Discover Mike & Don Dwyer, Guardian Jets perspec-tives and thoughts on the BizAv Market

    Boardroom56 The Consultants Dilemma:

    With the complexities of an aircraft transaction, David Wyndham highlights the impor-tance for a consultant to serve just one master

    62 Tips for Importing a Jet (3 of 3):Attorney Jessica Pownell concludes her discussion of contractual issues involved when importing an aircraft to the US registry

    66 Flying to Cuba: Everyones talk-ing about travelling there. Ifyoure one of them, be sure todo your insurance homeworkbefore flying, warns Stuart Hope

    Flight Department72 Aircraft Connectivity (Part 5):

    Ken Elliott concludes his five-part series, this month with anintriguing take on the future ofaircraft connectivity

    86 Buying a Jet - Extract AddedValue: How do you get themost from your business jetpurchase longer term? FlightDepartment Manager AndreFodor offers his tips!

    90 Assessing Safety Risks: Theresmore to transitioning frompaper to electronic flight bagsthan meets the eye, warnsMario Pierobon

    94 Retail Price Guide: 20-yearUltra Long Range & LargeCabin jet price guide from TheAircraft Bluebook

    100 Specifications: Ultra LongRange & Large Cabin jet per-formance and specificationscomparisons

    Community118 New vs Used: Citation XLS+ vs

    Citation III Cost Comparison;OEM Bites; Arrivals & Events

    Next Month Aircraft Comparative Analysis Pilatus PC-12 Family

    International Business Aviation Ops Series (Europe) Plane Sense on Electronic Flight Bags

    Contents Layout May16.qxp 20/04/2016 10:59 Page 2

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  • MESINGER JET SALES

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

    Well Lead the WayWhen youre buying or selling a

    plane, a tough marketplace can make

    the path to success seem daunting.

    But, with an experienced and

    knowledgeable team leading the

    way, the journey will feel effortless.

    Mesinger May.qxp_Layout 1 20/04/2016 15:23 Page 1

  • FOR SALE

    2006 Challenger 604CALL FOR PRICING

    NEW TO MARKET

    FILE PHOTO

    FOR SALE

    2013 Challenger 300, SN 20415NOW ASKING: $14,750,000

    PRICE REDUCED

    FOR SALE

    2010 Falcon 7X, SN 73NOW ASKING: $25,500,000

    PRICE REDUCED

    FOR SALE

    1996 Falcon 2000, SN 19ASKING PRICE: $3,500,000

    FOR SALE

    1996 Falcon 2000, SN 31ASKING PRICE: $3,500,000

    MESINGERMARKETPLACE

    Brokerage & Acquisitions

    Read our industry blog at jetsales.com/blog

    Follow us on twitter @jmesinger

    Watch videos at jetsales.com/inventory

    SOLD - APRIL 2016

    2000 Falcon 900EX, SN 74

    SOLD - APRIL 2016

    1994 Falcon 900B, SN 134

    FOR SALE

    2006 Gulfstream G150, SN 204ASKING PRICE: $4,975,000

    FOR SALE

    2007 Global 5000, SN 9158ASKING PRICE: $16,250,000

    MESINGER JET SALES +1 303 444 6766 FAX: + 1 303 444 6866 JETSALES.COM

    FOR SALE

    2001 Challenger 604, SN 5465ASKING PRICE: $5,850,000

    SOLD - APRIL 2016

    1998 Boeing BBJ, SN 29024-YG004

    SOLD - APRIL 2016

    2002 Gulfstream G200, SN 58

    UNDER CONTRACT

    2011 Gulfstream G200, SN 245

    FOR SALE

    2008 Gulfstream G550, SN 5180NOW ASKING: $24,950,000

    PRICE REDUCED

    FOR SALE

    2013 Gulfstream G280, SN 2027NOW ASKING: $14,750,000

    PRICE REDUCED

  • +1 303 444 6766Jetsales.com

    Brokerage & Acquisitions

    2008

    GULFSTREAM G550

    96 Month Tasks Performed February, 2016 by Gulfstream Savannah Engines on RRCC & APU on MSP Gold Triple Honeywell Primus Epic FMS with Software Version NZ7.1.2 and WAAS-LPV Broadband Multi-Link High Speed Data System (BBML) Version 2.5 w/ VoIP

    SERIAL NUMBER: 5180, N1FSHOURS: 3,983LANDINGS: 1,492

    NOW ASKING: $24,950,000

    PRICE REDUCED

  • +1 303 444 6766Jetsales.com

    Brokerage & Acquisitions

    1 U.S. Owner Large Gulfstream Operator Engines & APU on MSP Gold, Airframe on PlaneParts FANS 1/A, ADS-B Out, TCAS 7.1, WAAS, 3rd FMS, HUD, EVS, XM Weather, Aircell GoGo Biz Desirable 9 Passenger Interior

    SERIAL NUMBER: 2027, N1FCHOURS: 1,525LANDINGS: 1,010

    PRICE REDUCED

    NOW ASKING: $14,750,000

    2013

    GULFSTREAM G280

  • BIZAV INTELLIGENCE MARKET INDICATORS

    20 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    lthough it took longer to arrive,change has also now become evidentin the large-cabin business jet. Thismarket segment, which actually

    expanded in the aftermath of the financial crisiswhen the rest of the market was shrinking,accounted for an impressive 76% of the value ofnew business jet shipments worldwide in 2015.

    Changing fortunes throughout much of 2015have been driving increased inventory, lower pricesand pressures to lower production rates at theOEMs. So, whats going on here, and whats theoutlook for 2016?

    There are currently six manufacturers producinglarge-cabin business jets (Airbus, Boeing,Bombardier, Dassault, Embraer and Gulfstream).Textron has announced plans to join the fray withits new Citation Hemisphere sometime around2020.

    This segment of the market held up relativelywell after the global financial crisis, fueled by far-flung emerging market demand, strongcommodity prices, and relatively strong localcurrencies. These enabling factors changedbeginning in the second half of 2014, with thecollapse of world oil prices and concerns about thesustainability of high-growth economies like thosein the BRIC countries.

    With model mix changes and the ramp-up inproduction of recently certified models fromEmbraer, Textron and HondaJet in particular, weforecast that the large cabin share will slip to 66%of the value of new jet shipments in 2016, thusremaining a very significant (albeit diminished)segment of the market.

    Results from the Q1 2016 JETNET iQ survey ofmore than 500 business aircraft owners/operatorsin 64 countries point to diminished optimismregarding the state of Business Aviation markets(see Charts A & B). Optimists outnumberPessimists by 1.5-to-1, down sharply from 2.94-to-1 in Q4 2015, reflecting the lowest overalloptimism measured by JETNET iQ Surveys overthe past 16 quarters.

    Compared to prior quarters, scores weresharply lower for large-cabin business jetowners/operators (those with aircraft in the

    Challenger 600-Series/Falcon 2000 families andlarger). Worldwide, large-cabin pessimists nowoutnumber optimists representing a dramatic shiftin sentiment that has been playing out over thepast several quarters, but that became especiallynoticeable in Q4 2015.

    After several years where the large cabinsegment appeared to be almost immune from themarket vagaries and supply/demand pressuresaffecting the small and medium jet categories, thetimes are a-changin.

    Regionally, owners/operators in North Americaremain the most optimistic in Q1 2016, but resultsare down significantly from Q4 2015 basedprimarily on changing sentiments in the large jetcommunity. Results for the Rest of World encompassing Asia Pacific, Middle East, Africa andCIS, where large jets are well represented in thefleet reflect the lowest sentiment scores we havemeasured in four years.

    The G650 MeasureWith the softening of the large cabin market, manyobservers are keenly watching the recentmaturation of the Gulfstream G650/G650ERsegment, the last of the post-2008 recessionholdouts to the reality that prices actually fall withaircraft age.

    At a macro level, the G650 is not immune fromsharply slower demand from emerging marketslinked to consistently low global commodity pricesand weakened national currencies. These haveliterally taken their toll on sales prospect pipelinesacross all of the OEMs, and are like a falling tidethat is lowering all boats, especially impactinglarge cabin and long-range business jet models.

    With 11.2% of the combined G650/G650ERfleet available for sale amidst reports of fallingprices at press time, at this point, several questionsarise: Has the G650 market simply matured to the

    point that, with almost 170 aircraft in service,availability and pricing are not significantlydifferent from the overall business jet fleet?

    If so, how quickly did this change occur? How does the G650 compare to its peer

    group?

    Bob Dylan released a seminal song in 1964 that for many defined an era The Times They Are A-Changin. For many BizAv professionals this anthem

    could well define what has happened to the post-2008 market, notesRollie Vincent, Editor, Market Indicators

    A

    Rollie Vincent is President ofRolland Vincent Associates.His aviation market analysis issecond to none, and he is the creator/director of theJETNET iQ program. With a solid background in marketresearch, economics andstatistics, he has more than 30years of experience in business,regional and internationalaviation, including positionswith Bombardier, Cessna,Learjet, Flexjet, and ICAO.Contact him [email protected]

    Business Aviation Market Summary

    MarketIndicators May16.qxp_Layout 1 19/04/2016 11:57 Page 1

  • What other factors could be impacting the G650market?Before making any further pronouncements on

    the relative health of the G650 market, lets look alittle deeper

    What Do We Really Know?In April 2015, there were only eight pre-ownedG650/G650ERs on the worldwide market,representing 7.4% of the fleet at that time. Based ona very small sample size (just 3 data points), averageasking prices one year ago in JETNET were $70m.Today, average asking prices are about $65m, buteven these are based on just 11 data points.

    As recently as June-August 2015, there were only1-2 pre-owned G650s available with an associatedasking price all the others were Make Offer.Today, we count only two G650ER aircraft on themarket with an associated asking price in the rangeof $68-69m. Since August 2015, nine of the 19currently available G650s have come on the market,and only three have an asking price (average $67m),which is essentially equivalent to new equippedasking prices today.

    In our opinion, this is not a large enough samplefrom which to make inferences with any confidence.What does appear to be happening is that someG650 owners are testing the market to see whatprice it will bear, especially for very low time modelsthat lack the extended range (ER) feature.

    The straight G650 offers numerous advantagesover the G550, including new fly-by-wire controls, amuch wider cabin cross-section, and higher speeds -but only 280nm additional range. Forowners/operators who were planning to trade in along-range aircraft on their new G650, sharplyreduced residual values are reportedly encouragingsome to test the market. Rather than sell theirG550 and book a loss of possibly tens of millions ofdollars, some recognize that G650 valuations remainstrong.

    If they signed their non-assignable purchasecontract at $65m two years ago, they may well beable to get about that price on the after-market aftertaking delivery today. Better that than take a majorhit on their G550, G450 or other large-cabin aircraftthey are trading in.

    According to Vref, asking prices for 2008-eraG550s fell by 21% in 2015, and G450s by an evensharper 27%, dragged down through 2015 byannouncements of the next-generation G500 andG600 programs. Bombardiers Global XRS faredsomewhat better, but 2008-era XRS prices stillslipped by 15% in a single year. With these types ofprice/value corrections, some owners/operatorsabout to take delivery of a new high-end aircraftmight be thinking twice about selling their olderaircraft and booking a significant loss.

    G650 Bubble Burst?The bottom line: Although the market is verydynamic, Gulfstream reportedly continues to hold a2-year-plus order backlog for the aircraft. Early

    production models (e.g. 3-4 years old) are retaining95% or more of their original values based onpublished equipped list prices, which is unmatchedin the industry. Although the bubble of >100%residual values may have burst on the G650, thatswhat bubbles inevitably do, and current valuationsare anything but weak.

    With Bombardier still working towards its firstflight test vehicle Global 7000, Gulfstream and theG650/G650ER remain alone at the top of thebusiness jet market for the foreseeable future. Andthere is no doubt that the highly capableengineering team in Savannah is not sitting idle, asthe G500 and G600 move into advanceddevelopment phases and the designs screens arefilled with Whats Next?.

    What does all this mean for asset managers wholove their residual values? Now remains a good timeto own a Gulfstream G650.

    As we have noted in prior columns, upon closeinvestigation, another star performer is the PilatusPC-12 - values of pre-owned 2008-vintage actuallyincreased 6% in 2015 (Vref), bucking industry trends.If anything, keen investors should take solace inknowing that, although the times may be a-changin,there is value locked into quality assets from reveredmanufacturers occupying unique niches in themarket.

    They just have to know where to lookMI www.rollandvincent.com

    May 2016 AVBUYER MAGAZINE 21Advertising Enquiries see Page 4 www.AVBUYER.com

    What does all this mean

    for assetmanagers wholove theirresidualvalues?

    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:33 Page 2

  • BIZAV INTELLIGENCE MARKET INDICATORS

    22 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    BizAv Activity -Europe

    There were 61,746 Business Aviationdepartures in Europe in March 2016according to WINGXs latest monthlyreport. That represents 2,617 fewerdepartures than in March 2015 a 4.1%decline YOY.After Q1 2016, activity was down by-2.2% compared to last year. Relatively,the biggest drop came in turbopropactivity this month, down -5%. Meanwhile,business jet activity declined by -3%, withcharter flights effected the most. On a last12 month basis, business jet flights aretrailing by -1% while prop aircraft maintaina 4% growth trend.

    Marchs slowdown came mainly inWestern Europe, with all major marketsapart from Italy experiencing decline.Germany saw the largest drop in activity,with YOY activity down -8%. In Q1Germany activity was down -5%(equivalent to 460 fewer flights monthly).

    Activity in the UK also slumped inMarch, down -5%. Mainly this was due toa fall in private flights (charter activity wasflat). In Italy, flight activity was up due toincreased AOC activity. This month AOCactivity was significantly up 5% in France.A few smaller markets also saw somegrowth in March including CzechRepublic, Austria and Portugal. Swedenhas most YTD gain.

    Flights within Europe were down -4%in March and are at -2% for Q1. FromEurope to the CIS region the 2016 trend is-8%. Business Aviation flight connectionswere up from the Middle East, withinbound arrivals up 11% in March (Q1trend, up 5%). Transatlantic activity wasdown -10% in March, although arrivalsfrom North America were still up 3% YTD.MI www.wingx-advance.com

    BizAv Activity - US & CanadaMarch Business Aviation flight activityposted its normal Month-over-Monthincrease, up a substantial 9.8% fromFebruary. Year-over-Year (March 2016vs. March 2015) an increase of 3.0%was recorded by ARGUS, making the13th straight Year-over-Year increaseResults by operational category wereall positive Month-over-Month forMarch with Part 91 and Fractionaloperators posting double digitmonthly increases, up 10.0% and12.5% respectively from February. ThePart 135 market recorded a monthlyincrease of 8.7%.

    Looking at the aircraft categories,the smaller aircraft posted the largestmonthly increases from February, withturboprops and small cabin jets up11.5% and 10.9% respectively. Themid-size and large cabin marketsposted increases of 9.1% and 6.0%, inthat order. The largest monthly gain,for an individual segment, occurred inthe fractional turboprop segment, upan astounding 22.2% from February.

    Year-over-YearReviewing Year-over-Year flight activity,March 2016 posted an increase of3.0%. That finish for Q1 2016 resultedin an increase of 4.2% over Q1 2015.By operational category results werepositive for all three categories, led bya 4.1% increase in the Part 91 market.The Part 135 market followed with anincrease of 2.2% from March 2015. TheFractional market posted a modestincrease of 0.8%.

    Flight activity by aircraft categorywas positive for most categories, withturboprops leading the way, up 6.4%.Large cabin aircraft followed with anincrease of 3.0% while small cabinaircraft posted a 2.7% increase. Mid-size cabin aircraft posted a slightdecrease of -0.3%, however. Thelargest Year-over-Year gain for anindividual segment occurred in thefractional large cabin segment, whichsaw an increase of 10.7%.

    MI www.argus.aero

    March 2016 versus March 2015

    The best aircraftfor sale searchanywhere, everywhere -

    on pc, smartphone and tablet.B U S I N E S S A V I A T I O N I N T E L L I G E N C E

    March 2016 versus February 2016

    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:34 Page 3

  • FREESTREAM AIRCRAFT LIMITED

    London+44 207 584 [email protected]

    FREESTREAM AIRCRAFT (BERMUDA)LIMITED

    Hamilton, Bermuda+441 505 [email protected]

    FREESTREAM AIRCRAFT (H.K.)LIMITED

    Hong Kong+852 2724 [email protected]

    FREESTREAM AIRCRAFT USA LIMITED

    New York+1 201 365 [email protected]

    1998 Boeing BBJ S/N: 29273 Price reduced to $21,950,000 Total Time Airframe: 3814.54 Hours Landings: 938 APU TT: 3552 Delivered with a Fresh A2 Check C1 check completed 2014 HUD (Heads Up Display) SATCOM Pats 9 Tank Fuel System Basic Operating Weight: 95,096 Lbs SFR88 Mod CVR/FDR Airshow Network 18 Place Interior One Owner Since New

    2015 Gulfstream G650 S/N: 6159 Make Offer Delivery hours only Freestream Supervised Completion Engines on Rolls Royce Corporate Care Part 135 and EASA Validated Enhanced Soundproofing Honeywell SwiftBroadband Data System ViaSat Ku-Band Broadband Data System Forward Galley and Crew Rest Available to View at Groton, CT (KGON)

    2014 Gulfstream G650 S/N: 6085 Price $66,950,000 Customized 15 Passenger Layout Honeywell L5Z-860 Lighting System Part 135 Certified Enhanced Soundproofing Secureplane 500 System 7220 CabinView Passenger Flight InformationSystem 7720 Honeywell SwiftBroadband Data System External Color Camera System Forward Galley and Crew Rest Honeywell INMARSAT Satellite CommunicationsSystem

    2007/2009 Boeing BBJ S/N: 36714 Reg: VP-BFT Make Offer Into Service 2009 Total Time Airframe: 2849 Hours Landings: 741 Fresh out of 6 year 2C check Basic Operating Weight: 101,611 Lbs Pats 6 Tanks, 5 aft, 1 fwd Airshow Network- Aero H+ Satcom Swiftbroadband- Iridium 5 external cameras - EFB 18 Passenger Interior/ Andrew Winch Design

    Freestream April.qxp 23/03/2016 12:45 Page 1

  • 2008 Gulfstream G550 S/N: 5176 Price reduced Total Time: 3483.5 hrs Landings: 964 Engines on RRCC APU on MSP Honeywell APP & Parts Programs Securaplane External Camera System Airshow 4000 18 passenger interior Forward crew rest Currently at Gulfstream Savannah Delivered with Fresh 12/24/36/48/96 Monthinspection on the N Register

    2001 Falcon 900EX S/N: 87 New Asking Price $10,950,000 Aircraft to be delivered with engines on 100% JSSI TTAF: 5652.40 TTAC: 3079 Honeywell Avionics Protection Plan (HAPP) Engines & APU: JSSI All three Engines: 3000/6000 Fresh MPI Eng No. 2 New 3rd Stage high pressure turbine ENG No. 2 Fresh 2A, Fresh 2A+ Dual GPS Honeywell HG2021GD02 Airshow 400/Genesis Securaplane Back up Batteries

    2006/2007 Global Express XRS S/N: 9223 $23,950,000 JSSI Tip-to-Tail has $2.4M Total Time: 3658:07 hrs Landings: 1177 Engines on 100% JSSI Enrolled on JSSI Tip-to-Tail Triple FMS FANS 1/A+ and RNP 4 SBAS with LPV APRH Batch 3 ADS-B Forward and Aft lavs Fresh paint September 2015

    2011 Gulfstream G450 S/N: 4211 Total Time: 1040 hours Total Landings: 541 APU: 1535 hours 1515 cycles Delivered with fresh Savannah 5C Inspection onUS FAA register

    Engines Enrolled on Rolls Royce Corporate Care Honeywell HD-710 High Speed Data System(Swift Broadband Capable)

    ADS-B 14 passenger aft galley interior

    Freestream April.qxp 23/03/2016 12:46 Page 2

  • FREESTREAM AIRCRAFT LIMITED

    London+44 207 584 [email protected]

    FREESTREAM AIRCRAFT (BERMUDA)LIMITED

    Hamilton, Bermuda+441 505 [email protected]

    FREESTREAM AIRCRAFT (H.K.)LIMITED

    Hong Kong+852 2724 [email protected]

    FREESTREAM AIRCRAFT USA LIMITED

    New York+1 201 365 [email protected]

    2001 Learjet 45 S/N: 167 Make Offer AFTT: 6763 hours. Landings: 5403 Engines on MSP Gold Smart Parts Plus APU on MSP Honeywell Primus 1000 TCAS II with Change 7 EGPWS Airshow 400 Forward and Aft Monitors

    2009 Sikorsky S-76C++ S/N: 760757 TTAF: 211.54 hours Lowest Time Pre-Owned S-76C++ On The Market Excellent Condition Single Pilot IFR EGPWS CVR & MPFR Emergency Float System TRADE-IN WELCOME (rotary or fixed-wing)

    2000 Eurocopter EC 135P2 S/N: 0193 Reg: ZK-HLH $2,295,000 USD Manufactured in 2000 and delivered in 2001 TTAF 527.4 Very Low Time 2000 EC-135P2 No Damage History Pop-out Floats Air Conditioning Dual Controls

    2009 Challenger 605 S/N: 5824 Reg: N304KR Price Reduced Total Time: 1847 Hours Landings: 762. TAPU: 1558 Engines on GE OnPoint Rockwell Collins Pro Line 21 Dual FMC-6000 flight management systemw/ 3DMAP and long range cruise MNPS and RNP-5 navigation compliance Aircell ATG 5000 Aircell GoGo Biz wifi 11 Passenger Interior

    Freestream April.qxp 23/03/2016 12:46 Page 3

  • continued on page 28

    BIZAV INTELLIGENCE MARKET INDICATORS

    26 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    Fewer Used Bizjet SalesWhen it comes to finding an outlook for pre-owned aircraft salesactivity, all that exists is 20/20 hindsight and never what thefuture holds, says Brian Foley as he seeks to adapt a uniquemethodology to address the perceived gapInitial findings suggest we just entered an extended slowdownin the pre-owned business jet market, suggests Foley. Using aforecasting technique known as the cross-impact method, hecombined a multitude of quantitative and qualitative inputs toestimate their collective effect.

    In September, 2008 this method allowed him to quicklyintegrate the declining equity and credit markets into his outlookand be the first to publicly call for a severe and lengthy businessjet market downturn.

    Foley notes the novel approach has many moving parts andrequires some refinements. Going forward he believes pre-owned sales can be predicted by cabin size and on amodel-by-model basis, much the way new aircraft forecastingis done.

    If theres enough interest from the industry, a syndicatedstudy could be organized to develop a more detailed pre-ownedforecast to share with those early participants. In any event,preliminary groundwork suggests declining activity over the next5 years.MI www.brifo.com

    Hagerty JetGroup Q1Market UpdateHagerty Jet Group announced the Q12016 edition of its Gulfstream QuarterlyMarket Update...The Gulfstream Quarterly Market Updatecontinues to be an indispensable resourcefor current and potential owner/operators, notes Andrew Steward,Hagerty Jet Group Market Analyst. Bycombining sophisticated analysis andexpert commentary we have developedan essential resource for principals orFlight Departments to utilize and gainclarity and truly understand the markets.

    This Quarter the health of the G650pre-owned market is assessed along witha new feature on the G280 market. MI www.hagertyjetgroup.com

    Predicting BizAvs New Normal

    The vagaries of the business aircraftmarketplace continue to challenge eventhe most sophisticated forecast models,notes Rolls-Royce. So how does onepredict the new normal for businessaircraft sales?In the US, sales are not keeping pace withthe improving economy, as they wereexpected to do, and the global markethas been negatively affected by Russiasunanticipated military aggression in theUkraine as well as political challenges tobusiness aircraft ownership in China.

    Russia and China were two majormarkets for business aircraft especiallylarge-cabin planes and those twounforeseeable actions have reduceddemand for business aircraft purchases,

    said Dean Roberts, director of marketanalysis at Rolls-Royce North America.However, professional forecasters like meknow that the market always goesthrough peaks and troughs. The fact thatwe are in a trough now means that a peakwill be coming.

    In the US, which accounts for the vastmajority of the small and medium-sizebusiness aircraft sales, Roberts warnedthat the traditional relationship betweenthe S&P 500 and aircraft sales if the S&P500 goes up by a certain percentage,aircraft sales rise by about the samepercentage shortly thereafter does notapply in todays market.

    During this cycle, there is not a stronglinkage between the [performance of the]S&P 500 and business aircraft sales, saidRoberts. The market is not behaving likeit used to.

    Regarding the large-cabin businessaircraft market, Roberts said that in recentmonths the Gulfstream G650 pre-ownedinventory has risen sharply to around 20aircraft, and asking prices have dropped.However, he added that certain large-cabin aircraft were in exceptional demand,and G650 prices may just be comingdown to normal, similar to a marketcorrection. The sky is not falling, and thisis the type of behavior one would expectto see in a more mature market, saidRoberts.

    MI www.rolls-royce.com

    !"#$%&'())*+',"$+%-.)/)01!202)3"$&%-',)4)56+37)

    3"$&%-',)*+',"$+%-.)

    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:35 Page 4

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    Jetnet May.qxp_Layout 1 18/04/2016 12:53 Page 1

  • BIZAV INTELLIGENCE MARKET INDICATORS

    28 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    Asia-Pacific Market OutlookAsian Sky Group released its highly anticipated Year-End 2015 Asia-Pacific Business Jet Fleet Report at ABACE in April, expanded to includethe Indian, New Zealand and Australian markets...The Asia Pacific business jet fleet stood at 1,134 aircraft by year-end2015, a 6.2% increase over 2014 and in line with most market forecasts.Overall, the region added 140 aircraft 66 new and 74 pre-owned, butalso saw 74 aircraft leave the region. China remains the largest market inthe Asia-Pacific region with 300 business jets, though its growth rate wasjust 3.8% in 2015, a significant deceleration from previous years.

    Given that new deliveries are a consequence of OEM orders placedyears before, 2015s drop is a worrying sign for 2016 as it would seem tosignify that the OEM sales funnel for Greater China has little backlog. Theexpectation is therefore that business jet fleet growth in China willcontinue to decline but be moderated somewhat by continued positiveactivity levels in the pre-owned market.

    Beyond ChinaThe next two largest markets in the Asia-Pacific region are Australia with184 aircraft (7% growth in 2015) and India with 145 aircraft (4% growth in2015). The smaller markets of Indonesia, the Philippines and Japan alladded further aircraft, and in doing so all experienced double-digitgrowth.

    Notably, markets which performed poorly in 2015 were Malaysia andMacau, both of which actually contracted. South Korea, Thailand andSingapore all remained stagnant, registering no growth at all. Hong Kongsaw the largest number of aircraft added to its fleet in 2015 (16 businessjets).

    Fleet ShareTaken together, the key territories of China, Hong Kong, Australia andIndia represent over two-thirds of the regions business jet fleet. The topthree OEMs in the Asia-Pacific region by market share are Bombardier,Gulfstream and Cessna, with 27%, 23% and 19% of the fleet, respectively.

    Examining only fleet additions in 2015, Bombardier saw the largestincrease with 51 additional aircraft (28 new and 23 pre-owned). The mostpopular added model across the region was the Global 6000, and thefastest growing size category was the long range segment. (The onlysize category where the fleet contracted in 2015 was the mediumcategory, a drop of 2%.)

    Operator ShareThe top 20 operators in the Asia-Pacific region fly 35% of the fleet, withnine of the top 10 being operators in Greater China. Australia and Indiahave the most operators, but these markets are extremely fragmentedwhere 70% and 67% of the operators have just a single aircraft.MI www.asianskygroup.com

    China Tops Large Jet TreeChina currently dominates the mid-to-large-sized private jet market in Asia-Pacific, notesGlobal Jet CapitalResearch from Global Jet Capital, a provider offinancing solutions for large-cabin and long-range private jets, reveals there are around 972mid- to large private jets in Asia Pacific, and 30%(294) of these are in China, which is more thanany other country within the region. Overall, 37%of the regions fleet of business aircraft are mid-size to large; the corresponding figure for theglobal fleet is 32%.

    Our analysis reveals that a higher percentageof Asia Pacifics fleet of business aircraft is mid-to-large in size than the global average,summarizes David Henderson, Global JetCapitals MD, Asia Sales. Given that we focuson financing these types of jets, this market isparticularly attractive for us.

    Mid to large private jets typically costbetween $25 million and $75 million each, andup to 80% of the funding used to purchase theseis sourced through external financing.MI www.globaljetcapital.com

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    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:36 Page 5

  • Charlie Bravo May.qxp_Layout 1 18/04/2016 12:56 Page 1

  • BIZAV INTELLIGENCE MARKET INDICATORS

    30 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    In-Service AircraftMaintenance Condition & Price

    An Asset Insight Quarterly Market Analysis conducted on March 30,2016 covered 91 fixed-wing models, and 1,919 aircraft listed ForSale.The analysis revealed Excellent Asset Quality; mostly lower AskPrices; a 12-month low/best Maintenance Exposure value; and, a 12-month low/best Maintenance Exposure to Ask Price Ratio (ETPRatio). Specifically, the following was established

    Asset Insight Quality Rating (AIQ Rating): The Asset InsightQuality Rating improved 10.2 AI2 basis points to post the groupshighest/best 12-month figure at 5.361, compared to last quarters5.259 (AIQ Rating scale of -2.5 to 10).

    Maintenance Exposure (ATFE Value): Maintenance Exposure (anaircrafts accumulated maintenance financial exposure) improved by2.0% over the past quarter, decreasing by over $28k to $1.38m (from$1.41m), and posting the best figure for the past 12 months. Byaircraft group, the Asset Quality Rating and Maintenance Exposurefigures were as follows: Large Jets: Outstanding asset quality (best among all groups)

    and at 5.531 posted this groups best/highest figure for the past12 months; Maintenance Exposure improved by $175k, andachieved the groups best/lowest 12-month figure.

    Medium Jets: Excellent asset quality at 5.386 (14.1 AI2 basispoint better than last quarters figure and this groups best ratingfor the past 12 months), allowing the group to maintain thirdplace. Maintenance Exposure registered a 1.6% increase,worsening by nearly $20k.

    Small Jets: Retained second place with Excellent asset qualityat 5.414 a 13.6 AI2 basis point improvement over Decembersfigure. Maintenance Exposure improved over $39k (animprovement of 5.2%), decreasing to $715k.

    Turboprops: Very Good asset quality at 5.024, a slight (1.9 AI2basis point) improvement/increase compared to last quarter.Maintenance Exposure worsened/increased by a nominal $7k(1.4%) to $558k.

    !""#$%&'"()*$%&'+#,%

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    Continued UAS FleetGrowth, Says FAAThe Unmanned Aircraft Systems (UAS) fleet will mushroomthroughout the rest of the decade, aided by new FAA rulesand emerging roles for business use of unmanned aircraft,according to the FAAs latest forecastFAA projects sales of up to 2.5 million UAS in 2016, growingto 7 million annually in 2020. Working with consultancy TealGroup, FAA developed its UAS forecast based, in part uponthe requirement that all UAS weighing between 0.55 and 55pounds be registered with the FAA before they can legallyoperate. Registration began in mid-December, and about410,000 had been registered by mid-March.

    Meanwhile, the FAA is developing its first small UAS rule.It will govern commercial UAS operations, including(eventually) operations beyond visual line of sight, which isnot permitted now.

    The FAA expects that the rule, slated for release by earlysummer, will apply to two distinct markets: Smaller UAScosting an average of $2,500, and larger UAS that cost anaverage of $40,000.

    In a separate forecast that focuses on the potential impactof the new rule, and is therefore more conservative, the FAAsaid the commercial UAS fleet should approach 550,000 in2020, including 52,000 in the more expensive category.

    The FAA said the commercial UAS fleets most prevalentroles will include industrial inspection (42%), real estate/aerialphotography (22%), agriculture (19%) and insurance (11%).Exactly how quickly the fleet grows, however, will be tied toboth the development pace and flexibility of the new rules.MI www.faa.gov

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    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:42 Page 6

  • May 2016 AVBUYER MAGAZINE 31Advertising Enquiries see Page 4 www.AVBUYER.com

    !"#$%&'($)*+$,)-.&/-$0&1*$(2$3&.4-5$

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    Exposure to Ask Price (ETP) RatioSpread in the ETP Ratio (the aircrafts MaintenanceExposure divided by its Ask Price) narrowed by 39.4percentage points, while the average ETP Ratioimproved/decreased to 50.2%. Lower overallMaintenance Exposure and a slight increase in averageAsk Price resulted in the slight ETP Ratio improvementfrom Decembers 52.3%.

    As Asset Insight considers any ETP Ratio over 40% torepresent excessive Exposure in relation to Ask Price, itstill views the figure as problematic for Sellers, but awelcome improvement.

    Large Jets: Enjoyed a 1.2% improvement in ETP Ratio,33.8% (the best ETP Ratio among all groups), along witha 4.1% Ask Price decrease to $14.89m (from lastquarters $15.81m). The ongoing reduction in AskPricing continues to be troubling, especially whenconsidering this groups impressive Asset Quality andMaintenance Exposure figures. Some Buyers might bepleased, but many have existing assets they need to sellin order to acquire their replacement aircraft.

    Medium Jets: ETP Ratio decreased/improved to 53.3%,from last quarters 55.2% only two percentage pointsoff the groups best/lowest 12-month low figure. Thegroups ETP Ratio was very close to the best figureachieved during the past 12 months. Based on that, aswell as an Ask Price lower than the groups 12-monthaverage, Asset Insight urges prospective Buyers to act.

    Small Jets: Ask Price registered a record high $2.2m. Atthe same time, ETP Ratio has decreased/improvedslightly, from Decembers 70.1% to 66.3% (a 12-monthlow). However, demand for a number of popular modelsmay be abating, and Sellers need to keep in mind thatAsk Pricing may have climbed higher than what existingdemand will support.

    Turboprops: ETP Ratio was second best among allsectors, improving/decreasing to 43.5% fromDecembers 44.1%, but figures for January and Februarywere better. Ask Price decreased $10k to match thegroups annual average. Based on current marketconditions, Sellers may receive offers with prices thatmore than offset their assets accrued maintenance cost.This might be financially problematic. But, the currentslope of depreciation curves may make keeping theasset a more costly decision.

    Market SummaryAircraft prices may be at a low point, but asset quality ofthe For Sale fleet has not been this good since AssetInsight began keeping records in January 2013. Its mostrecent market analysis revealed a record high QualityRating and a 12-month low/best Maintenance Exposurevalue for the models tracked. Concurrently, average AskPrices were lower in all sectors except for Small Jets.All these figures helped improve/lower the ETP Ratio for

    all groups. While it is understandable for Sellers to beconcerned about the value of their asset, it should beevident to Buyers that they have an opportunity to acquireaircraft in exceptional maintenance condition for some ofthe lowest prices ever.MI www.assetinsightinc.com

    MarketIndicators May16.qxp_Layout 1 19/04/2016 13:40 Page 7

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  • ccording to the EuropeanCommission Winter 2016 report,Europes recovery from the financialcrisis has been relatively slow. The

    European economy is now growing again, but ata modest pace with further efforts required tostrengthen the regions economy.Amid growing concerns about the global

    outlook, the economic recovery in Europe hasentered its fourth year and prospects for acontinuation overall remain favorable. The goodnews is that Europes economy appears to haveso far weathered the recent deterioration inexternal conditions.The acceleration of economic activity

    expected this year is minimal. GDP in the Euro-zone is forecast to expand by 1.7% compared to1.6% in 2015. Meanwhile, the world economyhas been slowing down - its growth in 2015 isestimated at only 3%, and the expected recoveryis rather shallow and surrounded by risks.Following, well reflect on the current

    European business jet and turboprop fleet fromseveral views. At the end of March 2016, Europeaccounted for 2,398 (13%) of the global wholly-owned business jet fleet currently in operation,and 1,208 (9%) of the total business turbopropfleet (see Table A). That represents 56 fewer(-2.3%) business jets in Europe in 2016 comparedto 2015. Business turboprops decreased by 26aircraft (-2.1%) year-over-year.Europe still ranks second regionally for the

    total number of business jets (behind NorthAmerica), and third for the total number ofbusiness turboprops (behind North and SouthAmerica).In March 2011 business jets based in Europe

    reached their peak at 2,714 units. Over the lastfive years there has been a decline of 316business jets to todays 2,398 units. Over thesame period business turboprops have also seena decrease, but only by 14 units.

    36 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    BIZAV INTELLIGENCE JETNET >>KNOW MORE

    A

    TABLE A - World Fleet of Business Jets & Turboprops

    This month as eyes turn to Geneva, Switzerland forEBACE2016, Mike Chase assesses the health of theEuropean Business Aviationfleet today

    2016 European BizAv Fleet Report

    TABLE B - Europes Top Ten Business Jets (Based-In)

    TABLE C - Europes Top Ten Business Turboprops (Based-In)

    European Fleet Review.qxp_Layout 1 19/04/2016 14:09 Page 1

  • Europes Top Ten ModelsTables B and C show that the CitationMustang (98 units) and King Air B200 (92units) lead the Top Ten popular businessjet and business turboprop models inEurope, respectively. For comparison,included are the worldwide fleet totals forthose models.

    Dropping out of the top-ten business jetlist this year (compared to 2015) areBombardiers Challenger 605, Challenger300 and Embraers Legacy 600.

    Business Jets & Turboprops (By OEM)Textron (Cessna and Hawker) lead allmanufacturers of business jets in operationin Europe, as depicted in Chart A,followed by Bombardier and DassaultFalcon. These Top Three OEMs accountfor 83% of the 2,398 business jets inEurope.

    Of the turboprop OEMs and accountingfor all models, again Textron leads the wayin Europe with 509 units (42%) of the total1,208 units in operation. Piper and Pilatuscomprise the remaining manufacturers thathold more than a 10% share of thebusiness turboprops in operation inEurope, see Chart B.

    Top Ten European NationsAs depicted in Tables D and E, Germanyhas the largest number of business jets andbusiness turboprops in Europe. Thenations featured in Table D (Top TenOperating Countries, Jets) remain thesame as for 2015, however, Luxembourgenters the Top Ten Operating Countries,Turboprops (Table E), while Sweden slipsout of the top ten compared to 2015.

    Chart A - Business Jets In Europe (March 2016)

    May 2016 AVBUYER MAGAZINE 37Advertising Enquiries see Page 4 www.AVBUYER.com

    Total 2,398Source: JETNET

    Textron 982 41%

    Bombardier 572

    24%

    Falcon 428

    18%

    Other 95 4%

    Gulfstream 176 7%

    Embraer 145

    6%

    Textron

    Bombardier

    Falcon

    Gulfstream

    Embraer

    Other

    Textron

    509 42%

    Piper 224

    19%

    Other 158 13%

    Pilatus 132 11%

    Socata1018%

    Textron

    Piper

    Pilatus

    Socata

    Avan

    Other

    Avanti89

    7%

    Source: JETNET Total 1,208

    Chart B - Business Turboprops In Europe (March 2016)

    Table D - Top Ten Operating Countries, Jets

    Table E - Top Ten Operating Countries, Turboprops

    European Fleet Review.qxp_Layout 1 19/04/2016 17:01 Page 2

  • O'Gara Jets May.qxp_Layout 1 20/04/2016 15:43 Page 1

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  • here ownership questions comeinto play, the broad array ofoptions available within BusinessAviation greatly help a company

    fulfill its needs in line with its finances. Outrightownership doesn't work for every financialsituation, and also comes with completeresponsibility for airworthiness and legal issues.

    For many an owner, leasing the aircraft makesbetter sense but again, variations exist withinthat solution, each with its pros and cons that canonly be resolved on a company-by-companybasis.

    This month we examine some of the basics ofleasing the variations and their advantages andlimitations. Lets begin with some definitionsassociated with aircraft lease to highlight some ofthe options available. Lessor: The Lessor owns the aircraft and

    receives payment from a Lessee for use of theaircraft during the lease term.

    Lessee: The Lessee gets to use the aircraft,subject to conditions and limitations of thelease agreement in exchange for leasepayments to the aircraft Lessor.

    Wet Lease: Here, the Lessor supplies theaircraft and at least one crew member (perFAA definitions and regulations). The Lessormay maintain operational control of theaircraft and, consequently, may enter intomultiple agreements with Lessees who sharethe aircraft according to the terms of theirindividual agreements with the Lessor.

    Dry Lease: The aircraft is leased, but no crewmembers are supplied. The Lessee generallyhas full operational control and supplies crew,covers maintenance and other non-taxexpenses as stated in the lease agreement.

    Capital Lease: Essentially this equates to apurchase contract that treats the Lessee as theaircraft owner for tax purposes. The Lesseecan own the aircraft at the end of the term.

    The Basics of BusinessAircraft Leasing

    42 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    W

    With a wide range of types accommodating a variety of needs, aircraft lease is a highly tailored matter. Dave Higdon highlights some of the basics a

    prospective lessee should know before entering an agreement

    BIZAV INTELLIGENCE OWNERSHIP

    To Lease, Or Not to Lease (and if so, what kind of lease)?

    Ownership May16.qxp_Finance 19/04/2016 16:27 Page 1

  • Operating Lease: The Lessee takes possessionof the aircraft but the Lessor maintainsownership and enjoys the tax benefits ofownership.

    Synthetic Lease: A Capital Lease for taxpurposes but an Operating Lease foraccounting purposes, a Synthetic Lease isconsidered the best of both worlds in manyinstances.

    Sublease: This is an aircraft lease to a Lesseethat acquired the aircraft through anotherLessee.

    Master Lease: Controlling any number ofsubleases, the Master Lease is sometimes alsoreferred to as a Head Lease.

    FAA Wants to Know About LeasesAn important factor to remember is that leasesare subject to FAA regulations and, in particular,so-called truth-in-leasing language. The FAAdefines a lease as an agreement to a person tofurnish an aircraft to another person forcompensation or hire...

    The language applies regardless of whetherthe aircraft arrives via a wet or dry lease, asynthetic lease, capital lease or operating lease.Other rules come into play depending onwhether the operator flies the aircraft under Part91 or Part 135.

    The point of the truth-in-leasing language is toassure identification of the individual withoperational control of the aircraft, primarily toprevent instances of operators attempting to

    obscure who has operational control.Additionally, the agency requires leaseagreements to be filed with the FAA Registry inOklahoma City, Oklahoma, and upon first flightunder the new lease the operator must notify thelocal Flight Standards District Office (FSDO).

    The issue of operational control deservesparticular attention because of FAA's revisedOperational Specification A008. This OpSpecholds that the certificate holder on an aircraftremains responsible for operational controlsuperseding any agreement, contract,understanding, or arrangement, either oral orwritten, expressed or implied, between anypersons or entities.

    For operators flying under Part 91, truth-in-lending rules apply only to aircraft weighingmore than 12,500 pounds. But they areapplicable to all aircraft operated under FAR Part135 regardless of weight.

    Nevertheless, the stakes for any confusion ormisunderstanding here can be particularly highand can cost an operator that valuable certificate or significant penalties.

    Liability Concerns...We all understand the rarity of accidents andincidents in Business Aviation but things dohappen. And when the aircraft involved isoperating under a lease the questionautomatically arises as to who is responsible, andfor what, exactly? These are questions thatshould be set out in the text of the leaseagreement, and the answers vary with the type oflease and operation.

    From the FAAs perspective, a wet lease, inwhich the lessor supplies the aircraft and at leastone crew member flight officer or cabinattendant there's a presumption of operationalcontrol by the lessor. So even if flying for alessee, the control of aircraft, crew, maintenanceand upkeep can make it difficult to place liabilitywith the lessee.

    Conversely, a dry lease in which the lesseecontrols the aircraft, provides crew and assumesresponsibility for some (if not all) maintenance,may place the lessee more on the hook for thedamages of an accident or incident.

    Having clarified who is responsible for whatfrom an FAA perspective, there are the statutesof the states to consider. Each state and territorywill have its own views on the issue and, underthe US system of jurisprudence the laws of thestate where the accident occurred will be the firstline of action.

    And let's not forget the varying types ofsupport service agreements available, dependingon the lease type and operation type (Part 91,Part 135 or both).

    May 2016 AVBUYER MAGAZINE 43Advertising Enquiries see Page 4 www.AVBUYER.com

    Dave Higdon is a highly respectedaviation journalist whohas covered all aspects ofcivil aviation over thepast 35 years. Based inWichita, he has severalthousand flight hours,and has piloted prettymuch everything fromfoot-launched wings tocombat jets. Contact himvia [email protected]

    Nevertheless,

    the stakes

    for any

    confusion or

    misunderstanding

    here can

    be particularly

    high...

    Ownership May16.qxp_Finance 19/04/2016 14:42 Page 2

  • 44 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    BIZAV INTELLIGENCE OWNERSHIP

    The Main ConsiderationNow if the legal and financial considerationsseem complicated, try reading the multiplepages of a lease agreement. Professionalconsultation is highly recommended withaccountants, attorneys and aviation consultantsalike for any person or entity considering leasingan aircraft.Since all the primary reasons for leasing

    rather than purchasing aircraft tend to involvefinancial considerations, the accountant isusually the best place to begin. Manyknowledgeable consultants exist in the BusinessAviation community who are familiar andexperienced in aircraft leasing technicalities andcan help you decide whether to lease of buy.

    Then the contract goes through the attorney'shands to assure that the client is getting a solid,legal, well-defined lease with as little arbitrarylanguage or confusion as possible.In terms of pure cash flow a lease may seem

    the most favorable at first glance. But it's theoverall bottom line that counts. For that thecompany's tax situation and other obligationsmust be considered.At the end of the process the goal remains a

    familiar one. To provide the company withaccess to the aircraft it needs on terms that bestfit and benefit it economically. Work with yourconsultant to establish your need, then buildyour team of experts wisely to ensure theoutcome is tailored to your needs exclusively.

    Ownership May16.qxp_Finance 19/04/2016 16:27 Page 3

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  • BIZAV INTELLIGENCE MARKET INSIGHTS

    ounded by Mike Dwyer and Mike Mikolay in the midstof an earlier dip in the market for business aircraft,since 2002 Guardian Jet has applied its intimateknowledge of asset management to become a major

    player in the field of Business Aviation. Dwyer was previouslyRegional Sales Manager at several OEMs, and Mikolay an ATPtype-rated pilot engaged in aircraft sales at Piedmont Aviation.In 2010 a second Dwyer, brother Don, brought his significant

    sales experience (over 17 years with Hawker Beechcraft) toGuardian Jet. Today, the company staff numbers 22, includingseveral full-time employees located in strategic US regions andmost recently in the UK. The majority of Guardian staff issituated in Guilford, Connecticut, engaged in advisingcompanies and entrepreneurs on financial issues involving fleetacquisition and replacement.While Guardian Jet continues to be an active player in

    business aircraft transactions, numbering over 40 annually inrecent years, the core of its value proposition is centered onhow best to manage ownership of business aircraft as an assetfor the corporate or the individual owner. In fact, Guardian Jetfeatured consulting service from its founding nearly 15 yearsago as a means for differentiating itself from competingbrokers.Offering a branded educational experience it calls Guardian

    U, the company provides classes in what Aviation Departmentpersonnel need to know about finance and asset management,so that they can communicate effectively with their corporatedirect-reports and better fulfill their role as managers of acompany business unit. Also offered by Guardian U are coursesin basic Business Aviation for corporate (non-aviation)personnel, so that they can better appreciate what businessaircraft are able to provide for shareholders.A sizable portion of Guardian Us clients are personnel with

    Fortune 100 corporations. With that emphasis on consulting, itis understandable that the Guardian Jet Team includes sevenwith graduate business degrees, five Market Analysts, twoCPAs and one IT professional, in addition to four holders ofAirline Transport Pilot certificates.

    Trends FollowedOur clients want to have aircraft that provide efficienttransportation and represent smart use of capital, notes Mike

    Dwyer. Thus we follow pricing and evaluations very closely.We look at aircraft as one would look at an investment

    portfolio: what are the asset classes, what are value trendswithin the asset classes, and eventually what is the value of aspecific asset (i.e., the aircraft within a companys fleet). Ratherthan being reactionary, we advise our clients to lead themarket. Thus we need market data. We pride ourselves at being in-

    depth researchers, probing and asking a lot of questions aboutthe marketplace and matching those market realities to theexpectations of our clients. We are always searching for real-time intelligence.

    We look at those factors that affect the liquidity of theassetin our case the aircraft, he continues. Is the aircraftcurrently in production, how many were delivered, how manycurrently are for sale? Then we look within the asset class forthe aircrafts individual attributes. Is the specific aircraftdesirable as is, or does it require new avionics, interiorenhancements or exterior paint? In other words, is the assetthe aircraftsufficiently attractive to be marketed promptly ata fair priceor is it a project that will require time and effort tosell?Yes, we track typical indicators such as percentage of fleet

    for sale, velocity of transactions, evaluation movement. Amongthe 123 models of business aircraft that we watch, we followclosely what the market is doing. But we look for more.Most importantly, Mike adds, we work diligently to

    understand our client. What is the motivation for owning abusiness aircraft, and what is the clients philosophy regardingBusiness Aviation. Some companies want to fly the wings offtheir aircraft, maximizing the value of such mobility. Others

    F

    Business Aviation Market InsightsMike and Don Dwyer, Guardian Jet / Guardian UProviding a unique glimpse of the Business Aviationmarket from the perspective of those who buy, selland operate business aircraft or offer expert advice,this month AvBuyer features the insights of GuardianJets Mike and Don Dwyer.

    48 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    Among the 123 models of businessaircraft that we watch, we followclosely what the market is doing.

    But we look for more.

    DONDWYER

    MIKEDWYER

    BizAv Market Insight may.qxp_JMesingerNov06 19/04/2016 16:29 Page 1

  • seem fully content with holding an aircraft for a long timeregardless of its evaluation dynamics and asset value. Differentcustomers have different ways of looking at the aircraft theyown or might own in the future.We also look carefully at other forms of Business Aviation

    such as charter and fractional ownership. Our mandate is toaddress the most effective means of satisfying the clients needfor transportation using business aircraft, and managing thosetravel needs in a way that maximizes the value of thecompanys aviation assets.Some clients have an enlightened approach to business

    aircraft and Business Aviation added Don Dwyer. Forexample, in 2009 when Business Aviation was receiving a lot ofbad press following the Ackerman hearings in Congress, werestructured the entire fleet of a Fortune 25 company becauseits management realized that there were excellent aircraft forsale at distressed prices. That company looked at its fleet strictly as a business asset

    and realized that there were great buys available. Thus ourunderstanding of the client is paramount to our value as aconsultancy.

    Big Picture PerspectiveReflecting on Guardian Jets approach to macro-economics,Don adds, We watch what is happening in the overalleconomyespecially Fortune 500 companies. What are theirprofits and how are those profits trending? Where might thenext merger occur? Fortune 500 fleets are downsizingwhatdoes that mean and how do we capitalize on that trend?

    There are opportunities everywhere, notes Mike. Weadapt to market conditions and look for strategies that benefitour clients. The directions of the market and the overalleconomy have profound influences on fleet planning and themanagement of aviation assets. Thus its essential that AviationManagers have a basic understanding of financial issues and,therefore, look at their companys aircraft as assets to bemanaged effectively.Guardian Jet started Guardian U specifically to give

    Aviation Managers an asset management mindset. We showthem how to look at the total costs of an aircraft over the lifeof the asset. That leads naturally to fleet planning. Assetmanagement is, in fact, continuing fleet planning.Similarly, we offer Guardian U to non-aviation managers

    within the corporation, so that they have a fuller understandingof why Business Aviation is essential. Such an approach betteraligns the Flight Department with the goals, objectives andprocedures of the corporation.Guardian U is a key element of our value proposition, and

    it is very popular with our clients, concludes Don. The newreality is that Business Aviation is transportation that uniquelysatisfies a need and is inherently beneficial to shareholders.Thats a good thing.Our clients have a spectrum of capable, efficient aircraft

    from which to select. There is significant value to be had andmanaged for the company that looks at fleet planning as assetmanagement. We help our client benefit from that enlightenedand educated prespective. More information from www.guardianjet.com

    May 2016 AVBUYER MAGAZINE 49Advertising Enquiries see Page 4 www.AVBUYER.com

    BizAv Market Insight may.qxp_JMesingerNov06 19/04/2016 14:31 Page 2

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  • Rani Singh writes about aviation. A soughtafter Journalist andauthor she also reportson news, foreign affairs,politics and business withthe worlds largest newsorganization.

    ustiss Oil Head of Aviation Patrick Newcombloves his job. You wouldnt know by lookingat it now, but the Oil and Gas Industry canbe a rewarding career option for a corporatepilot, he explains from the companys base

    in Jena, Louisiana.Companies in this industry rely heavily on

    Business Aviation to transport their key decision-makers to important meetings, deliver critical parts,and move vital employees to and from job sites.

    A privately owned, family-run drilling, exploration,production and well-servicing company, Justiss Oilhas operated in Southern US since 1946. BusinessAviation ensures our personnel remain highlyproductive instead of wasting (in some cases) anentire day drudging through the chaos at theairlines.

    While in the current climate many oil and gascompanies have traded-in their airplanes and laid-offtheir flight department personnel, Justiss Oil

    High Flyers Interview

    52 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    J

    With all the stories of oil companies shedding their business aircraft during bruising economic times , Patrick Newcomb, Head of

    Aviation, Justiss Oil outlines why his company cant do without.

    BOARDROOM CASE STUDY

    The Reason BizAv Remains Indispensable to One Oil Company

    BG 1 May16.qxp_Layout 1 19/04/2016 14:13 Page 1

  • Company has opted to take a different route. Wevecontracted with a Part 135 company to utilize theKing Air B200 for on-demand charter flights toreduce, and perhaps eliminate, our flightdepartments overhead, Patrick shares.

    This comes as no surprise to anyone who knowsJustiss Oil. We have weathered some of the worststorms in our industry since 1946. It is this sameingenuity that has kept our company strong all theseyears.

    Founded by James Fowler Justiss, Sr. primarily asa drilling and production company, today the grouphas diversified into exploration, manufacturing andpipeline operations, and has owned its own airplanesince the mid-1960s, starting out with a Baron, latertrading it for a Citation, and today operating the KingAir B200.

    Patrick calls the King Air a necessity for thebusiness. We can attach a certain amount of oursuccess to having the versatility of a corporateaircraft. Though today we mainly operate in the mid-south, we have done business in many remote areasincluding Venezuela, making transportation a criticalaspect of our business model.

    A Day in the LifeToday, a typical trip takes the King Air to Houston,according to Patrick. We go there a lot for businessmeetings and take engineers, geologists andexecutives. They meet with industrialists and otherexploration companies.

    Houston is about an hour from Jena flyingprivately, maybe a little bit less, depending on thewinds, but to actually drive there would take around

    Though today we mainly operate in the mid-south, we have done business in many remote areas including Venezuela, making transportation a critical aspect

    of our business model.

    May 2016 AVBUYER MAGAZINE 53Advertising Enquiries see Page 4 www.AVBUYER.com

    JUSTISS OILS KING AIRB200 AND (RIGHT)

    HEAD OF AVIATIONPATRICK NEWCOMB

    BG 1 May16.qxp_Layout 1 19/04/2016 14:13 Page 2

  • BusinessAviation

    truly providesa seamless

    door-to-doorservice for

    theemployees ofJustiss Oil.

    five hours and probably half a day via the airlines,what with security.

    Nevertheless, Patricks flight trip planningbegins the night before a scheduled journey,booking reservations for the airport FBO, fuel, hirevehicles and other services that might be required.Ill look at weather, Ill file a flight plan with trafficcontrol, and then next morning were good to go.

    I usually arrive at the airport an hour beforedeparture time where I do pre-flight inspections,make sure sodas, coffee and snacks are availablebefore pulling the aircraft out and into position.Then our folks arrive to board the airplane andwell take off.

    Flying to Houston Hobby, an outlying airportfrom Houston, Patrick notes Its much moreconvenient for our passengers. When we arrivetheres usually a rental car on the ramp as theairplane pulls up. On occasion, I drive ourpassengers to their meetings.

    While the passengers are in meetings orconducting their business, Patrick will be checkingweather, filing flight plans, overseeing last-minutecatering needs, checking for delays, and preppingthe airplane for its return flight ready for a promptdeparture when they return to the airport.

    Business Aviation truly provides a seamlessdoor-to-door service for the employees of JustissOil. Typically the King Air carries around three tofour passengers on an average trip.

    The Powerful Case for BizAvPatrick has been with Justiss Oil since 2014 but has along aviation heritage. My father was a pilot duringthe Vietnam War, which is probably where my love ofairplanes came from, he shares. I began my flyingcareer in the Navy as a Naval Air Crewman andCombat Rescue Swimmer. I also served in DesertShield/Storm and Operations Deny Flight overBosnia and Herzegovina.

    After leaving the military, I put myself throughflight school and college and have flown for differentoperations that include flight schools, engineeringcompanies and airlines.

    He derives a great deal of pride from flying forJustiss Oil as he observes the impact his departmentcan have on the companys operation. On oneoccasion, one of our rigs broke down in southernTexas and the required part was unavailableanywhere close to that location, he recalls.

    We dispatched our King Air to Las Vegas where aparts distributor happened to have the exact partneeded on their shelf. In a matter of hours, that rigwas operational again, saving the company tens-of-thousands of dollars of down time, and making forone happy client.

    That serves as just one of many success storiesthat makes a powerful case for Justiss Oils flightdepartment, and is why we still stand tall albeitperhaps a little more bruised today among thegreats in our industry.

    54 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    BOARDROOM CASE STUDY

    More information fromwww.justissoil.com

    BG 1 May16.qxp_Layout 1 19/04/2016 14:14 Page 3

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  • he process of acquiring a business aircraftis complex and involves many differenttechnical disciplines. Pilots may be thebest experts to deal with operational

    issues; maintenance specialists are needed toaddress aircraft condition at the time of sale andduring the time of ownership. There are numerouslegal considerations with respect to contracts, lettersof purchase and taxes.

    Accountants often need to weigh-in on how futurecosts will be handled. The delivery and acceptanceof an aircraft may require additional skilledindividuals who can shepherd the aircraft tocompletion. All of these disciplines involve technicalterms and in-house jargon that can confuse thebuyer or the seller.

    As have been discussed in the previous twoarticles in this series, an aviation consultant can beused to advise and help in many of these areas. Heor she can assist the flight department in performing

    a thorough, fact-based analysis of the airtransportation needs of you and your company. Theymay be able to help your legal team with thepurchase and sale agreement, letter of intent,management agreements, and other documents thathave a unique twist in aviation.

    The outfitting and delivery process with a newaircraft is lengthy and complex. There are consultantswho can monitor your new aircraft from the assemblyline through the interior outfitting to the finalacceptance. They can be involved in the interiorrefurbishment and paint of existing aircraft, too. Theirblend of maintenance and contractual expertise mayprove especially helpful for keeping the deliveryprocess on time and on budget.

    Operations, maintenance and safety consultantscan help your aviation department be safe andefficient. They can recommend an appropriate levelof management and reporting, and assist the aviationdepartment attain and maintain appropriate skills.

    56 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    T

    Acknowledging that aircraft transactions involve a host of disciplines where consultants can add value, David Wyndham

    cautions that human nature is a force to be considered.

    BOARDROOM OWNERSHIP

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    David Wyndham isco-owner & presidentof Conklin & deDecker where hisexpertise in cost andperformance analyses,fleet planning and lifecycle costing areinvaluable. Hesformerly aninstructor pilot withthe US Air Force. Contact him via [email protected]

    Ownership May16.qxp_Layout 1 19/04/2016 16:31 Page 1

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  • TransactionsOther than operational specialists, the consultantsmentioned above are all involved with the aircraftacquisition process. Few aircraft sales happenwithout the assistance of an aircraft salesprofessional. Thus it seems natural that the aircraftbrokerage firm might also offer their services as yourconsultant. This may be convenient, but you need tobe aware of human nature!

    When replacing an aircraft that you or your firmowns, the aircraft broker is a key member of yourteam. That professional can help you get youraircraft ready to sell and present it to the market withthe goal of maximizing the sale price whileminimizing the time required to execute the sale.Throughout their careers, many brokerage firmsestablish enduring relationships with their clients.

    They know the market and the process, and they aretrusted advisors to their clients.

    Like real estate transactions, aircraft resale brokerswork for the seller. They are under contract to theseller and are obligated to do the best job they canin selling their clients aircraft. Often the same skillsneeded to be a seller of aircraft can be applied tothe process of purchasing the sellers next businessaircraft. Therein lies the rub: If a broker who isprimarily selling aircraft also acts as a buyer-broker,the potential for conflict of interest exists.

    Human NatureIf the aircraft brokers primary job is selling theirclients aircraft, and you employ him or her to helpyou find and acquire an aircraft (i.e., you employ thebroker to be your purchase consultant), then yourcontract is secondary to the brokers generalbusiness. How can the interests of both buyer andseller be primary when the seller wants top dollarand the buyer wants a great deal? While a successfulsale involves a willing buyer and a willing sellernegotiating to a mutually agreed-to price, it isdifficult for one broker to represent both buyer andseller.

    Any ethical sales broker also acting as a buyerbroker has the responsibility to fully disclose theirstatus to their clients. There are relationships wereone consultant successfully represents both buyerand seller. But it is extremely difficult for any of us tobe Solomon-like in our dealings - someone is theprimary interest.

    There are a small handful of brokers whoparticipate only in either buying or selling a clientsaircraft. A buyers broker Ive dealt with often hasturned down many offers from their clients to helpthem resell their existing aircraft. At my company, wealso have turned down offers to broker aircraft. Wewant to do our best for each client. Having one tosell and one to buy makes life tougher than it needsto be. Its human nature to pick favorites. We can saythe buyer-client and seller-client are equal, but theremay come a time when one is more equal than theother.

    If you have a trusted broker with whom you haveestablished an outstanding, trustworthy relationship,then work with that firm as your transactionconsultant. But take the advice of the late PresidentRonald Reagan: Trust, but verify. Stay wellinformed to assure that all parties are keeping theirbargain.

    Are you looking for more Business AviationOwnership articles? Visit www.avbuyer.com/articles/category/business-aviation-ownership

    58 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

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  • 62 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com

    BOARDROOM TAX

    hough a Seller will likely not completethe customs export of the aircraft fromits foreign country until after closing, it isusually advisable for the parties to

    review applicable export requirements and beginexport preparations prior to closing.

    In particular, if the aircraft will be ferried to the USprior to closing, the Seller may need to comply withvarious outbound customs procedures beforedeparting for the US (such as a touchdown in, orother export flight out of, the exporting country).Thus, the parties may need to consider suchrequirements when preparing the ferry flight plan.

    Similarly, if the parties agree to close in the US,the parties will likely begin US importationprocedures prior to closing and upon entry of theaircraft into the US. It is often helpful to hire acustoms broker to assist with the importationplanning and requisite documentation andinspections. As well, regardless of the selected USdelivery location (as discussed further below), the

    parties should be aware that the aircraft will likelyhave to first enter the US and go through USCustoms at a specified airport of entry.

    Further, if the Buyer desires to assign a particularFAA registration number to the aircraft at closing, solong as the number is available or is reserved in theBuyers name, the Buyer can file an affidavit with theFAA requesting that such number be assigned to theaircraft upon importation into the US.

    Closing Logistics & Final DeliveryThe closings of US importations often involve uniquefactors for which the parties must prepare. Forinstance, selecting the right delivery location is key,and the best location from a Buyers perspective isoften the US for several reasons other thanconvenience. For instance, as the jurisdiction inwhich the aircraft is located at closing may imposetaxes on the aircraft sale, the Buyer will want toreview the tax law of any potential delivery location.

    Many US states have fly-away or other sales tax

    T

    Tips for Importing a Business JetA Guide to the US Importation of

    Foreign-Registered Business Aircraft (Part 3 of 3).

    US importations involve special considerations, and it is vital that a Buyer coordinate the aircraft export, import and closing procedures to properly conclude the transaction and commence US operations, and even to plan

    for future sale of the aircraft, advises attorney Jessica L. Pownell.

    Jessica L. Pownell is anattorney with Cooling &Herbers, P.C., represent-ing and advising aircraftowners and operators, cor-porate flight departments,Fortune 500 companies,and other aviation-relatedbusinesses worldwide. Shefocuses her practice in theareas of acquisition, sale,leasing, and registration ofcorporate aircraft andrelated regulatory matters. [email protected]

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