AvBuyer Magazine May 2016

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AvBuyer Magazine May 2016 edition

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<ul><li><p>MESINGER JET SALESBROKERAGE &amp; ACQUISITIONS</p><p>+1 303 444 6766 JETSALES.COM</p><p>SEE PAGES 1619 FOR FURTHER DETAILS</p><p>MESINGER JET SALES IS PROUD TO REPRESENT</p><p>GULFSTREAM G550 S/N 5180, N1FSGULFSTREAM G280 S/N 2027, N1FC</p><p>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</p><p>May 2016</p><p>Aircraft Comparative Analysis: Legacy 650New - International Operations Series</p><p>THIS MONTHwww.AVBUYER.com</p><p>Mesinger FC May 2016.qxp_FC December 06 20/04/2016 15:55 Page 1</p></li><li><p>Project1_Layout 1 27/04/2016 12:43 Page 1</p></li><li><p>Project1_Layout 1 27/04/2016 12:44 Page 1</p></li><li><p>eter Drucker, the late professor ofmanagement and respected author ofmany business textbooks, stated thatthe purpose of a company is to create</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>Decision makers who select Business</p><p>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.</p><p>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.</p><p>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).</p><p>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).</p><p>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).</p><p>Jack Olcott - Editorial Director &amp; PublisherAvBuyer -Your source for Business Aviation Intelligence</p><p>PSatisfying Need</p><p>4 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com</p><p>WelcomeEditors EDITORIALEditorial Director / Publisher</p><p>J.W. (Jack) Olcott1- 201 572 9284Jack@avbuyer.com</p><p>Commissioning &amp; Online EditorMatthew Harris1- 800 620 8801+44 (0)208391 6777 Editorial@avbuyer.com</p><p>Editorial Contributor (USA Office)Dave Higdon</p><p>Dave@avbuyer.com</p><p>Consulting Editor Sean OFarrell1- 800 620 8801</p><p>+44 (0)20 8391 6779Sean@avbuyer.com</p><p>ADVERTISINGLinda Blackburn (USA Sales)</p><p>1- 614 418 7064Linda@avbuyer.com</p><p>Lise Margin (USA Sales)1-703 818 1024Lise@avbuyer.com</p><p>Maria Brabec (European Sales)+420 604 224 828 Maria@avbuyer.com</p><p>Karen Price1- 800 620 8801 </p><p>+44 (0) 208391 6774Karen@avbuyer.com</p><p>STUDIO/PRODUCTIONHelen Cavalli / Mark Williams </p><p>1- 800 620 8801+44 (0)208391 6776Helen@avbuyer.comMark@avbuyer.com</p><p>CIRCULATIONBarry Carter1- 800 620 8801+44 (0)208391 6770Barry@avbuyer.com</p><p>AVBUYER.COMMichael Myburgh</p><p>Michael@avbuyer.com</p><p>Emma Davey Emma@avbuyer.com</p><p>MANAGING DIRECTORJohn Brennan1- 800 620 8801+44 (0)208391 6771John@avbuyer.com</p><p>USA OFFICE1210 West 11th Street, Wichita, KS 67203-3517</p><p>EUROPEAN OFFICETrident Court, 1 Oakcroft Road, Chessington, Surrey, KT9 1BD, UK</p><p>+44 (0)20 8391 6770</p><p>PRINTED BYFry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055</p><p>Mechanicsburg, PA 17055</p><p>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</p><p>AvBuyer is MovingWith effect from the 1st June Avbuyer will operate from:</p><p>AvBuyer House - 34A High Street - Thames Ditton - Surrey KT7 0RY - UKTel: +44 208 255 4000</p><p>Visit the AvBuyer team at EBACE - Booth U045</p><p>Editor Welcome Final.qxp_JMesingerNov06 21/04/2016 14:15 Page 1</p></li><li><p>AMAC Aerospace Switzerland AG </p><p>Henric Petri-Strasse 35</p><p>4051 Basel, Switzerland</p><p>Telephone + 41 58 310 31 31 </p><p>info@amacaerospace.com</p><p>www.amacaerospace.com</p><p>The largest privately-owned facility in the world offering VIP, private and corporate aviation services. </p><p>Three Core Services: Maintenance Completion and Refurbishment Charter / Aircraft Brokering</p><p>Swiss Excellence in Business Aviation</p><p>ad_amac_avbuyer_may_2016.indd 1 12.04.16 17:36</p></li><li><p>Project1_Layout 1 27/04/2016 12:45 Page 1</p></li><li><p>Project1_Layout 1 27/04/2016 12:46 Page 1</p></li><li><p>Editorial Focus</p><p>The Basics of Business Aviation Leasing: </p><p>With a wide range of types accommodating a variety of needs, what are the key </p><p>considerations behind an aircraft lease?</p><p>42</p><p>8 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com</p><p>High Flyers Interview:With all the talk of tough times in the oil</p><p>industry, discover the reason the companyKing Air remains indispensable to Justiss Oil</p><p>52</p><p>112</p><p>82International Business Aviation Operations: </p><p>Dave Higdon starts a new series on transiting the worlds airspace, starting </p><p>with an overview of North America</p><p>Comparative Analysis Embraer Legacy 650</p><p>How does Embraers Legacy 650 square up against Gulfstreams GIV-SP? </p><p>Find out here</p><p>Contents Layout May16.qxp 20/04/2016 10:59 Page 1</p></li><li><p>ContentsVolume 20, Issue 5May2016</p><p>May 2016 AVBUYER MAGAZINE 9Advertising Enquiries see Page 4 www.AVBUYER.com</p><p>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</p><p> BizAv Intelligence20 Business Aviation Market </p><p>Summary: Market trends, indicators, assessments and forecasts, introduced by Rollie Vincent</p><p>36 2016 European BizAv FleetReport: Using JETNET data,Mike Chase assesses the healthof the worlds second largestbizjet, and third largest busi-ness turboprop fleet</p><p>48 Business Aviation Market Insights: Discover Mike &amp; Don Dwyer, Guardian Jets perspec-tives and thoughts on the BizAv Market</p><p> Boardroom56 The Consultants Dilemma: </p><p>With the complexities of an aircraft transaction, David Wyndham highlights the impor-tance for a consultant to serve just one master</p><p>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</p><p>66 Flying to Cuba: Everyones talk-ing about travelling there. Ifyoure one of them, be sure todo your insurance homeworkbefore flying, warns Stuart Hope</p><p> Flight Department72 Aircraft Connectivity (Part 5):</p><p>Ken Elliott concludes his five-part series, this month with anintriguing take on the future ofaircraft connectivity</p><p>86 Buying a Jet - Extract AddedValue: How do you get themost from your business jetpurchase longer term? FlightDepartment Manager AndreFodor offers his tips!</p><p>90 Assessing Safety Risks: Theresmore to transitioning frompaper to electronic flight bagsthan meets the eye, warnsMario Pierobon</p><p>94 Retail Price Guide: 20-yearUltra Long Range &amp; LargeCabin jet price guide from TheAircraft Bluebook</p><p>100 Specifications: Ultra LongRange &amp; Large Cabin jet per-formance and specificationscomparisons</p><p> Community118 New vs Used: Citation XLS+ vs</p><p>Citation III Cost Comparison;OEM Bites; Arrivals &amp; Events</p><p>Next Month Aircraft Comparative Analysis Pilatus PC-12 Family</p><p> International Business Aviation Ops Series (Europe) Plane Sense on Electronic Flight Bags</p><p>Contents Layout May16.qxp 20/04/2016 10:59 Page 2</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:47 Page 1</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:47 Page 2</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:47 Page 3</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:47 Page 4</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:48 Page 5</p></li><li><p>Avpro May.qxp_Layout 1 18/04/2016 12:48 Page 6</p></li><li><p>MESINGER JET SALES</p><p>BROKERAGE &amp; ACQUISITIONS +1 303-444-6766 JETSALES.COM</p><p>Well Lead the WayWhen youre buying or selling a </p><p>plane, a tough marketplace can make </p><p>the path to success seem daunting. </p><p>But, with an experienced and </p><p>knowledgeable team leading the</p><p>way, the journey will feel effortless.</p><p>Mesinger May.qxp_Layout 1 20/04/2016 15:23 Page 1</p></li><li><p>FOR SALE</p><p>2006 Challenger 604CALL FOR PRICING</p><p>NEW TO MARKET</p><p>FILE PHOTO</p><p>FOR SALE</p><p>2013 Challenger 300, SN 20415NOW ASKING: $14,750,000</p><p>PRICE REDUCED</p><p>FOR SALE</p><p>2010 Falcon 7X, SN 73NOW ASKING: $25,500,000</p><p>PRICE REDUCED</p><p>FOR SALE</p><p>1996 Falcon 2000, SN 19ASKING PRICE: $3,500,000</p><p>FOR SALE</p><p>1996 Falcon 2000, SN 31ASKING PRICE: $3,500,000</p><p>MESINGERMARKETPLACE</p><p>Brokerage &amp; Acquisitions </p><p>Read our industry blog at jetsales.com/blog </p><p>Follow us on twitter @jmesinger</p><p>Watch videos at jetsales.com/inventory</p><p>SOLD - APRIL 2016</p><p>2000 Falcon 900EX, SN 74</p><p>SOLD - APRIL 2016</p><p>1994 Falcon 900B, SN 134</p><p>FOR SALE</p><p>2006 Gulfstream G150, SN 204ASKING PRICE: $4,975,000</p><p>FOR SALE</p><p>2007 Global 5000, SN 9158ASKING PRICE: $16,250,000</p><p>MESINGER JET SALES +1 303 444 6766 FAX: + 1 303 444 6866 JETSALES.COM </p><p>FOR SALE</p><p>2001 Challenger 604, SN 5465ASKING PRICE: $5,850,000</p><p>SOLD - APRIL 2016</p><p>1998 Boeing BBJ, SN 29024-YG004</p><p>SOLD - APRIL 2016</p><p>2002 Gulfstream G200, SN 58</p><p>UNDER CONTRACT</p><p>2011 Gulfstream G200, SN 245</p><p>FOR SALE</p><p>2008 Gulfstream G550, SN 5180NOW ASKING: $24,950,000</p><p>PRICE REDUCED</p><p>FOR SALE</p><p>2013 Gulfstream G280, SN 2027NOW ASKING: $14,750,000</p><p>PRICE REDUCED</p></li><li><p>+1 303 444 6766Jetsales.com</p><p>Brokerage &amp; Acquisitions</p><p> 2008 </p><p>GULFSTREAM G550</p><p> 96 Month Tasks Performed February, 2016 by Gulfstream Savannah Engines on RRCC &amp; 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</p><p>SERIAL NUMBER: 5180, N1FSHOURS: 3,983LANDINGS: 1,492</p><p>NOW ASKING: $24,950,000</p><p>PRICE REDUCED</p></li><li><p>+1 303 444 6766Jetsales.com</p><p>Brokerage &amp; Acquisitions</p><p> 1 U.S. Owner Large Gulfstream Operator Engines &amp; 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</p><p>SERIAL NUMBER: 2027, N1FCHOURS: 1,525LANDINGS: 1,010</p><p>PRICE REDUCED</p><p>NOW ASKING: $14,750,000</p><p> 2013 </p><p>GULFSTREAM G280</p></li><li><p>BIZAV INTELLIGENCE MARKET INDICATORS</p><p>20 AVBUYER MAGAZINE May 2016 Aircraft Index see Page 169www.AVBUYER.com</p><p>lthough it took longer to arrive,change has also now become evidentin the large-cabin business jet. Thismarket segment, which actually</p><p>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.</p><p>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?</p><p>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.</p><p>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.</p><p>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.</p><p>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 &amp; 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.</p><p>Compared to prior quarters, scores weresharply lower for large-cabin business jetowners/operators (those with aircraft in the</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>At a macro level, the G650 is not immune fromsharply slower demand from emerging marketsl...</p></li></ul>