FC JSSI March.qxp_FC December 06 19/02/2019 09:47 Page 1
Volume 23 Issue 3
™
ACTIONABLE INTELLIGENCE FOR BUSINESS AVIATION
30 YEARS
FLIGHT HOURS OF INDEPENDENT SERVICE AND SUPPORT JETSUPPORT.COM
THIS MONTH www.AVBUYER.com
Jets Comparison: Nextant 400XTi vs Cessna Citation CJ4 How Long Should you Keep Your Jet? Why Choose an Engine Maintenance Program? Five Hot Business Aircraft Upgrades for 2019
Project1_Layout 1 22/02/2019 09:54 Page 1
Project1_Layout 1 22/02/2019 09:57 Page 1
Editor Welcome March19.qxp_JMesingerNov06 19/02/2019 09:48 Page 1
Guest Editor’s VIEWPOINT David Dixon
What’s Next for Asian Business Aviation?
A
sia has been my adopted home since the early 1980s when Business Aviation was all but non-existent in places like China, Hong Kong and Japan. What little activity there was could be found in the Philippines, Australia and Indonesia. At the time very few people could have predicted that, as a socialist state, China would come to adopt the ultimate capitalist business tool. But when Deng Xiaoping opened China up to foreign investment in the 1980s, the rapid growth of the Chinese economy meant Business Aviation could begin to take off.
The Tiger Economy Effect
Twenty years later, Asia was on everyone’s minds. Extreme growth areas (known as Tiger economies) had sprung up across the region and OEMs were scrambling for a China strategy. While economic growth was rapid and high, the Asian Business Aviation market did not progress in the same way as that in the US or Europe. The attitude amongst buyers was ‘buy now, buy new’, and the main aircraft of interest were long-range, wide-body jets. As a result, the area quickly became dominated by Gulfstream GV and Bombardier Global Express aircraft.
Journey Through Recession
Although the market was stopped in its tracks by the 1997 Asian financial crisis, it quickly recovered, and we enjoyed another decade of growth before the worldwide economic downturn in 2007. After all this, the waters for Business Aviation remain shallow in the region today. The number of aircraft in the entirety of Asia is less than in California, and the number of accessible airports in China (approximately 250) is tiny compared to the US, where there are more than 5,000. Capacity is a problem; to grow we need more but it takes time. One immediate step common in the West would be to have mixed-use airports for Commercial and Business Aviation and the military, however such measures are unlikely to be approved by China’s People’s Liberation Army (PLA) any time soon.
The Value of Business Aviation
Whilst Business Aviation has made progress in Asia, its true value is simply not widely understood across the region. As Commercial Aviation expands, airlines are 4 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
clamouring for increased runway capacity and parking. In this environment, private jet users are not seen as a priority by airports or authorities. Bodies like the National Business Aviation Association (NBAA) and Asian Business Aviation Association (AsBAA) are doing important work spreading the message that Business Aviation is a key contributor to the economy, providing jobs in manufacturing, engineering and customer service. In addition, as China ramps up international investment in Africa and South America, having direct access to remote or rural locations is increasingly essential for businesses. Private jets are the natural solution, flying directly to smaller airports in less time than commercial flights.
What’s on the Horizon?
As the market matures, the cycle of upgrades and replacements is in full swing. First-time buyers are becoming first-time sellers, as owners are tempted by the latest Gulfstream G500/600, Bombardier Global 6500/7500 and Dassault 8X. Interestingly, these preowned aircraft are often finding homes in the US, as a Mainland China-registered aircraft is compliant with Part 135 regulations. Aircraft management companies TAG Aviation, Jet Aviation and Luxaviation have established a presence in the region, to better facilitate aircraft ownership and operate alongside some sizeable local brands. The major OEMs are also all represented, with many factory-owned service facilities now in operation Asiawide. Asia has come a long way since the 1980s and is no longer an afterthought. China has progressed vastly since Mao Zedong’s ruling, South East Asia has regained some of its momentum and countries like Malaysia and Indonesia are now fertile ground for business aircraft. I am pleased I was there at the start. The road has had its moments – but with the infrastructure to support it Asia’s bizav market should come to rival Europe and be second to the US in the near future. ❙ David Dixon has been president of Jetcraft Asia since 2012, responsible for optimizing sales strategies and managing operations from Beijing to Sydney. A leading global authority on the private aviation sector, David has lived and worked in Asia in aircraft sales for more than 30 years, and has more than four decades of aerospace industry experience. More from www.jetcraft.com www.AVBUYER.com
GLOBAL JET INVENTORY
BOEING BBJ MAX 8 UNIQUE OPPORTUNITY
AIRBUS A319 VIP 2008 (DELIVERED 2011) / SN 3542
2021 POSITION - GREEN AC
ASKING PRICE / USD $49.75M
AIRBUS A318 ELITE 2008 / SN 3100
ASKING PRICE / USD $23.50M
BOMBARDIER GLOBAL 7500 2 POSITIONS AVAILABLE IN 2020 & 2021
BOMBARDIER GLOBAL 6000 2014 / SN 9537
BOMBARDIER GLOBAL XRS 2009 / SN 9306
PRICE REDUCTION / USD $30.90M
MAKE OFFER
BOMBARDIER GLOBAL XRS 2008 / SN 9280
BOMBARDIER GLOBAL 5000 2006
MAKE OFFER / MOTIVATED SELLER
OFF MARKET
GULFSTREAM 550 2010 / SN 5279
GULFSTREAM 550 2010 (DELIVERED 2011) / SN 5303
PRICE REDUCTION / USD $21.90M
ASKING PRICE / USD $23.50M
EMBRAER LEGACY 650 2013 / SN 114501161
CESSNA CITATION XLS+ 2012 / SN 560-6108
PRICE REDUCTION / USD $12.50M
ASKING PRICE / USD $7.10M
GLOBALJETMONACO.COM
3D & TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
Inventory.indd 1
13.02.2019 17:33:49
AIRCRAFT SALES & ACQUISITIONS
BBJ MAX 8 Green AC / Position 2021
More cabin space & comfort New engines VVIP Personalized cabin interior configuration
ASKING PRICE/ MAKE OFFER GLOBALJETMONACO.COM
TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
AV_BUYER_February_2019.indd 1
14.02.2019 14:31:17
AIRCRAFT SALES & ACQUISITIONS
AIRBUS A319 2008 / SN 3542
AIRFRAME HOURS / 3688 AIRFRAME CYCLES / 1061 CAPACITY / 18 PAX
ASKING PRICE / USD $49.75M GLOBALJETMONACO.COM
3D & TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
AV_BUYER_February_2019.indd 2
14.02.2019 14:31:20
AIRCRAFT SALES & ACQUISITIONS
EMBRAER LEGACY 650 2013 / SN 114501161
AIRFRAME HOURS / 1366 CYCLES / 581 CAPACITY / 13 PAX
PRICE REDUCED / USD $12.50M GLOBALJETMONACO.COM
TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
AV_BUYER_February_2019.indd 3
14.02.2019 14:31:28
AIRCRAFT SALES & ACQUISITIONS
GULFSTREAM 550 2010 / SN 5279
AIRFRAME HOURS / 3660 AIRFRAME CYCLES / 894 CAPACITY / 18 PAX
ASKING PRICE / USD $21.90M GLOBALJETMONACO.COM
3D & TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
AV_BUYER_February_2019.indd 4
14.02.2019 14:31:32
AIRCRAFT SALES & ACQUISITIONS
CESSNA CITATION XLS+ 2012 / SN 560-6108
AIRFRAME HOURS / 2172 AIRFRAME CYCLES / 1227 CAPACITY / 8 PAX
ASKING PRICE / USD $7.10M GLOBALJETMONACO.COM
TECHNICAL DETAILS AVAILABLE HERE
[emailprotected] T +377 97 77 01 04
AV_BUYER_February_2019.indd 5
14.02.2019 14:31:32
Aircraft Finance Corporation March.qxp_Layout 1 18/02/2019 12:33 Page 1
PLANE & SIMPLE Whether you are a first-time buyer, trading up, or refinancing your current aircraft, Aircraft Finance Corporation will give you the lowest rate, combined with the longest terms. With over 20 years in the industry, we offer an extraordinary range of experience, together with exceptional results for every client that we serve. We manage the process from the financial review, proposal, underwriting, documentation, and closing, to make sure that when our clients close on their aircraft, they do so knowing they got the best deal out there.
“We give you the lowest rate and longest terms on pre-owned Jet and Turboprop aircraft, guaranteed. Our 20-year term starts at 4.88%.”
800-434-4185 | 949-698-0085 | [emailprotected] | AIRCRAFTBANKER.COM
Contents Layout March19.qxp 20/02/2019 15:38 Page 1
Vol. 23 Issue 3
Contents
2019
4
Guest Editor - David Dixon, Jetcraft Market Intelligence
14
Trends and observations from the leading analysts…
32
Why a Jet’s Past Life Should Matter to Buyers
38
Do Aircraft Registries Impact International Operations?
47
Flying a Jet? Three Tips to Reduce Operating Costs
54
How Long Should you Keep Your Jet?
62 68 72 82
Buying & Selling Aircraft Ownership
Aircraft Price Guide Light Jet Values
Aircraft Specifications
Light Jet Performance & Specifications Guide
Jet Comparision
Nextant 400XTi vs Cessna Citation CJ4
Maintenance
Avoid the Surprises in Aircraft Engine Maintenance
86
Why Choose an Engine Maintenance Program?
90
How Mandated Upgrades Could Force Older Aircraft to Retire
94 98
Five Hot Business Aircraft Upgrades for 2019
Avionics
How to Understand the ADS-B Out Essentials
104
What’s the Benefit of Flight Data Monitoring in BizAv?
108
OEM News and Industry Appointments
114
Products & Services
118
Showcases
131
Market Place
136
Advertisers Index
137
Aircraft for Sale Index
Community News
Next Month - Jets Comparison: Citation Latitude - Jet Connectivity: Early Signs it Could be Obsolete - Insider’s Guide to Asian Flight Planning 12 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
EDITORIAL Commissioning Editor Matthew Harris +44 (0)20 8939 7722 [emailprotected] Editorial Contributor (USA Office) Dave Higdon [emailprotected] Consulting Editor Sean O’Farrell +44 (0)20 8255 4000 [emailprotected] ADVERTISING Lee McLoughlin Freephone from USA: +1- 855 425 7638 [emailprotected] Matt Chappell Freephone from USA: +1- 855 425 7638 [emailprotected] Lise Margin +1- 703 818 1024 [emailprotected] Maria Brabec (European Sales) +420 604 224 828 [emailprotected] UK Sales +44 (0)208 549 9508 STUDIO/PRODUCTION Helen Cavalli / Mark Williams +44 (0)20 8939 7726 [emailprotected] [emailprotected] CIRCULATION Sue Brennan +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 [emailprotected] AVBUYER.COM Jayne Jackson [emailprotected] Emma Davey [emailprotected] MANAGING DIRECTOR John Brennan +44 (0)20 8255 4229 [emailprotected] USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE AvBuyer House, 34A High Street, Thames Ditton, Surrey KT7 0RY, UK +44 (0)20 8255 4000 Freephone from USA: +1- 855 425 7638 PRINTED BY Fry Communications, Inc. 800 West Church Road, Mechanicsburg, PA 17055 www.AVBUYER.com
3 0
Y E A R S
15,398,913 FLIGHT HOURS OF INDEPENDENT SERVICE AND SUPPORT With 30 years of proven expertise and data, we know precisely what it takes to maintain and support your aircraft at every stage of its life cycle. Acquisition advice to depend on. Maintenance programs to stabilize your budget and add value to your aircraft. Parts delivered to you on time and in budget. Leasing solutions you can rely on. IT’S TIME FOR A BETTER APPROACH.
MORE THAN HOURLY COST MAINTENANCE PROGRAMS JSSI PARTS & LEASING | JSSI ADVISORY SERVICES | CONKLIN & DE DECKER JETSUPPORT.COM
Avpro March.qxp_Layout 1 20/02/2019 15:41 Page 1
Avpro March.qxp_Layout 1 20/02/2019 15:41 Page 2
Avpro March.qxp_Layout 1 20/02/2019 15:41 Page 3
Avpro branding February.qxp_Layout 1 21/01/2019 11:55 Page 1
Avpro realizes that
opportunities are fleeting and time is money.
Our strong relationships throughout the industry allow us to capitalize on trends as they emerge.
Our unparalleled team
of in-house experts in research, marketing, contract negotiations and closings allow us to navigate the complexities of each transaction. The underlying principles behind everything we do -
Performance. Integrity. Reputation. Expect No Less. WWW.AVPROJETS.COM 900 Bestgate Road, Suite 412 Annapolis, MD 21401 • 410.573.1515
[emailprotected] (410) 573-1515
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:49 Page 1
MARKET INDICATORS
Business Aviation Market Summary As fresh inventory looks set to enter the used business aircraft market, Rollie Vincent, Editor, Market Indicators urges prospective owners to understand the full costs of owning an airplane…
M
arch 2019 looks set to be remembered as the month when the United Kingdom’s government took leave of the European Union; the United States’ government took funds appropriated otherwise to build barriers to protect its southern border; and many more Business Aviation pilots, A&P mechanics and other technicians opted to take better paying jobs in the commercial airline industry. As the saying goes, may we continue to live in interesting times. With more than 2,800 used business jets sold, the year 2018 set an all-time record for transaction volumes, just edging out 2017’s record performance. With the confluence of three major forces in 2019 - the production ramp-up of several new business jets (Pilatus PC-24, Gulfstream G500, Bombardier Global 7500, and Cessna Citation Longitude), a compliance deadline for ADS-B Out in the U.S., and expectations for a broad-based slowdown in GDP growth in most economies important to Business Aviation - we expect some much-needed replenishment of for-sale inventory this year. That should be good news indeed for aircraft brokers, dealers, and their customers, who have been faced with an 18 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
increasingly limited variety of aircraft to consider. With just under 2,000 jets for sale worldwide (about 9% of the in-service fleet), 46% of those aircraft were delivered more than 20 years ago and are of little or no interest to many buyers. For a buyer seeking to purchase, say, a five-year-old aircraft that has been depreciated to perhaps 50% of its original value, they will find very little selection to choose from in today’s marketplace. JETNET records indicate that there were only 34 such business jets (representing 18 different models) on the market. That’s less than 5% of the in-service fleet of five-year-old jets. With many buyers seeking a specific model - say, a Dassault Falcon 2000LXS – there was just one aircraft on the market at press time that met the criteria. Buyers with specific requirements have had little to choose from, and increasingly less negotiating leverage in the transaction over the past couple of years. This should begin to change in 2019 as more inventory comes on to the market with higher volumes of trade-ins, as companies react to an expected slowdown in their business activities, and as aircraft that are not compliant with the December 31, 2019 ADS-B Out requirements are put up for sale. www.AVBUYER.com
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:50 Page 2
AVBUYER.com Rolland Vincent is president, Rolland Vincent Associates, LLC (RVA), a consultancy focused on aviation market research, strategy, and forecasting. RVA’s client base includes the world’s foremost civil aircraft and engine manufacturers, aerospace suppliers, aviation service providers, fleet operators, lenders / lessors, and the investment community. With 35+ years in the aviation industry, Rollie has served as a trusted consultant at Textron, Bombardier and ICAO in various roles. RVA also partnered with JETNET in 2010 to create JETNET iQ, a respected source of independent market intelligence. Contact him via [emailprotected]
Retaining Your Talent
Recognized for their impeccable safety and quality standards, aircraft management companies, fractional program holders, and some of the larger charter operators appear brightly on airline recruiters’ radar screens and are having to be creative and increasingly generous to retain the professional talent they already employ.
Transactions Need Professional Management
5 5 5
MI www.navigating360.com
5 5 5
While the time-saving conveniences of Business Aviation are unmatched by other forms of transportation, buyers need to carefully understand the full costs and complexities of acquiring and operating an aircraft before proceeding. This is too important a decision (with too many consequences with lots of zeroes in them) to leave to chance. They should therefore not hesitate to employ professionals. With a refresh of inventory trickling in like a creek in spring, business aircraft buyers and sellers will have new opportunities to communicate their needs and expectations, stay focused on the task at hand, and make mutually beneficial win-win-win deals happen. Professionals to the core, this is simply what they do, and they do it well. In the current era of political intransigence, elected officials from Westminster, Brussels, Washington, and places in between could benefit from a few lessons in the art and science of deal-making, business aircraft-style.
5
While much of the excitement of a business aircraft transaction understandably surrounds the asset itself, it has become increasingly important for buyers to be aware of the very real challenges of finding, training and retaining the aviation talent they will need to operate safely and efficiently. Seasoned aviation department managers, pilots, maintenance technicians, dispatchers and other experienced personnel are getting increasingly difficult to find, as wave after wave of airline recruiting continues to lure away some of the best, brightest and most mobile. Companies, high net worth individuals, family offices and their trusted advisors would be wise to account for potentially higher staff-related costs and longer lead times to own a new or used aircraft. While much attention is on getting the nuances of the aircraft transaction just right, buyers and their agents should also be aware that the airplane won’t fly if the crews are not trained. For those owners who recognize the value in having their aircraft professionally managed, such considerations are the primary concern of the aircraft management company they have hired. While they will almost certainly have more buying power and leverage over training and other suppliers, the fact of the matter is that aircraft management companies are dealing with the same - and most likely even more - pressure to be competitive with the airlines on pay and benefits.
! 5
!"#$%"&"'()"*($+( ,-"(./0,(5216( 4"/&0(
!"#$%"&"'()"*($+( ,-"(./0,(123(( 4"/&0( Source: JETNET iQ
www.AVBUYER.com
)"($
5
!"#$%"&"'()"*($+( ,-"(./0,(11213( 4"/&0(
5
!"#$%"&"'()"*($+( ,-"(./0,(15276( 4"/&0(
*&&& #+++ #++* #++# #++! #++, #++' #++% #++( #++) #++& #+*+ #+** #+*# #+*! #+*, #+*' #+*% #+*( #+*) #+*&
5
!"#$%#'(&)'*%+&%),-.'/,-'012&'1#'3',4')5&'*%678&-19,%'/2&&)':;.'' *+"*$ *+"%$ &"+$ )"%$ %"#$ %")$ &"+$ )"($ ("'$ (",$ ("%$ '"%$ )"%$ %"*$ ,"($ ,"&$ ,"'$ !"!$ *")$ +"+$
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
19
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:50 Page 3
MARKET INDICATORS
AVBUYER.com
Flight Activity - North America JANUARY 2019 vs JANUARY 2018 North America Flight Activity
PART 91
PART 135
FRACTIONAL
ALL
TURBOPROP
-3.1%
-0.1%
-2.9%
-1.8%
LIGHT JET
3.6%
-8.4%
2.8%
-0.9%
MID-SIZE JET
5.4%
-0.9%
13.0%
5.0%
LARGE CABIN JET
-0.8%
8.5%
-19.0%
0.6%
ALL
1.0%
-0.9%
4.9%
0.7%
JANUARY 2019 vs DECEMBER 2018 North America Flight Activity
PART 91
PART 135
FRACTIONAL
ALL
TURBOPROP
-0.5%
4.5%
-6.3%
1.4%
LIGHT JET
2.3%
-2.5%
-8.8%
-0.8%
MID-SIZE JET
5.5%
-3.1%
0.6%
1.3%
LARGE CABIN JET
4.0%
8.6%
-3.3%
5.0%
ALL
2.4%
1.5%
-2.5%
1.4%
TRAQPak’s review of year-over-year (YoY) North American flight activity in January 2019 recorded a marginal increase over January 2018. Monthover-month (MoM) activity posted an anticipated increase over December 2018, too... The YoY North American Flight Activity data indicates an increase of 0.7% in January 2019. Results by operational category were mixed with Fractional activity, once again, posting the largest yearly increase. Part 135 activity declined for the eighth consecutive month. The aircraft categories were mixed with Mid-Size Jets posting the largest increase from 2018, and Turboprops posting the largest decrease.
Month-over-Month
Business Aviation flight activity in January was up 1.4% from December 2018. Results by operational category were mostly up for the month, with the Part 91 segment posting the largest monthly increase. Fractional flight activity declined, however. Aircraft categories were mostly positive too, with Large Jets posting the largest increase, and Small Jets posting the only monthly decrease.
Flight Activity – Europe
January saw 54,481 Business Aviation departures in Europe, according to WingX Advance. Year-over-Year, that represents a drop of -0.8% YoY, with a 2.1% drop in business jet sectors. There were mixed YoY trends in Europe’s busiest markets, with France and the UK narrowly up; Spain showing robust growth; flights declining from Germany and Switzerland; and a 9% slump in demand out of Italy. Turkey recorded a big drop also. The last 12-month trend looks strong out of Spain and is still solid out of Germany (although flat in the UK, Switzerland and France). Large Jet activity took the brunt of the decline in Europe with sectors down by 6% YoY, while Small and Medium Jet activity was flat. Flights within Europe declined by 1% in January. The next busiest regional flow was transatlantic, flat YOY, beating a negative 12-month trend of -1.5%. Business Aviation flights to Africa have increased 5% over the last year but declined in January. “The decline in January’s flight activity reflects anecdotal feedback from the charter operator market that customer demand is down, which fits with the wider deterioration in the macroeconomic situation in Europe,” said WingX managing director Richard Koe. “January’s drop was concentrated in the Large Cabin Jet segments, which may reflect pull back from corporate flight departments.” MI www.wingx-advance.com page 22
!
February Forecast
TRAQPak’s analysts estimate a 1.1% increase in overall flight activity YoY in February 2019. MI www.argus.aero
Understanding the Business Aviation Market - with AvBuyer
20 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
Freestream March.qxp 19/02/2019 15:38 Page 1
2009 Falcon 7X
2007 Bombardier Global XRS S/N: 9185
2009 Gulfstream G450 S/N: 4170
2001 Gulfstream V S/N: 635
2012 Gulfstream G550 S/N: 5391
2011 Gulfstream G550
S/N: 046 Airframe Total Time: 5,053.7 hrs Aircraft Total Cycles: 1,319 cycles
Airframe Total Time: 1962.9 hrs Aircraft Total Cycles: 941 cycles
Airframe Total Time: 2971.3 hrs Aircraft Total Cycles: 935 cycles
Airframe Total Time: 5054.0 hrs Aircraft Total Cycles: 2121 cycles
Airframe Total Time: 7190.4 hrs Aircraft Total Cycles: 3501 cycles
Airframe Total Time: 1540 hrs Aircraft Total Cycles: 717 cycles. EASA Compliant
FREESTREAM AIRCRAFT LIMITED
FREESTREAM AIRCRAFT (BERMUDA) LIMITED
FREESTREAM AIRCRAFT (H.K.) LIMITED
FREESTREAM AIRCRAFT USA LIMITED
London +44 207 584 3800 [emailprotected]
Hamilton, Bermuda +441 505 1062 [emailprotected]
Hong Kong +852 2724 5620 [emailprotected]
New York +1 201 365 6080 [emailprotected]
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:51 Page 4
MARKET INDICATORS
AVBUYER.com
Used Aircraft Market Sales Information JETNET has released its 2018 year-end results for the preowned business jet, business turboprop, piston, helicopter and commercial airliner markets. A total 9,198 transactions were recorded in 2018, compared with 10,111 the year before… All market sectors are showing lower inventory for sale in the comparison of 2018 to 2017, except for piston helicopters. Moreover, there were fewer full-sale transactions in 2018 compared to 2017, except for business jets and fixed-wing pistons, where retail transactions were up 2.1% and 19%, respectively. Moreover, the fleet for sale percentages for all market sectors were lower in the December comparisons, except for piston helicopters and Commercial Turboprops. Business jets and pistons were down the most (0.9% and 0.8%, respectively). Across all market sectors, JETNET reports 9,198 full retail sale transactions for 2018, compared with 10,111 in 2017. That’s a decrease of 917 transactions (-9%). Commercial jet airliner transactions decreased by 710 (28.9%). Business jets recorded 2,809 transactions in 2018, and when combined with commercial airliners (1,748), together they accounted for 50% of the total of the 9,198 transactions recorded in 2018.
2018 Inventory Specifics
All aircraft segments were taking less time to sell in 2018 compared to 2017, except for the turbine helicopters which took an additional 58 days before being sold, on average. The ‘For Sale’ inventory of business jets has decreased steadily from a high point in July 2009 (2,938) to 1,974 jets in December 2018. That’s a reduction in the percentage of the inservice fleet from 17.7% in July 2009 to 9% at the end of 2018. Most business jet dealers and brokers today would tell you that the pristine used jets that were on the market a few years ago have become more challenging to locate. The sage advice for buyers is to act now.
A closer inspection of the seven segments analyzed reveals that two actually increased in numbers, when compared to 2017. These were business jets (+2.1%) and piston (+19%). Note: JETNET does not cover all piston aircraft inventory or sales. The piston models tracked are: Baron 58 series, Cessna 421 series, Diamond DA62, and the Piper high-end singles M350, Malibu, Matrix, and Mirage.
In Summary
The recovery in Business Aviation during the post-recession period has posted mixed results, with poor overall aircraft residual values that continue to be problematic. Now that 2019 is here, JETNET hopes the US used market, along with improvements in the world economy, will continue to push more new aircraft purchases. As for now, the preowned market has become a seller’s market, with pre-owned for-sale inventories running at 9%. MI www.jetnet.com
JSSI: Flight Activity Surges in 2018 JSSI’s Q4 2018 Business Aviation Index, tracking utilization of ~2,000 business aircraft worldwide and reporting average flight hours flown on a monthly basis by region, industry and cabin type, revealed Year-To-Date (YTD) growth of 4.9% and of 4.7% over the same period in 2017. “Despite the dramatic market swings that defined the end of the year, flight hours were up significantly for both the quarter and the year, contributing to 2018 being one of the strongest years in a decade,” explained Neil W. Book, president and CEO of JSSI. “We have seen flight activity increase worldwide and a growing demand for private travel.” Other key findings include: • Regional increases were reported in nearly every segment of the world, with the highest YTD increases reported in Africa (17.4%), Europe (8.8%), and South America (8.1%); • The small cabin segment reported a 6.6% YTD increase, 22 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
• • •
•
and large cabins a 5.3% increase. Medium-sized cabins reported a decrease of -4.2%; Three of the nine industry segments analyzed reported YTD increases, with aviation at 9.1%, business services at 5.4%, and power and energy at 3.6%; Every aircraft age group analyzed reported a YTD jump in flight hours. Newer aircraft with less than five years in service reported the largest increase of 7.2%; Aircraft operated for compensation or hire (i.e., FAA Part 135), including non-scheduled charter and air-taxi operations, reported a 9.5% YTD increase and an 11% increase in YoY activity; Aircraft operated under general operating and flight rules, without compensation or reimbursem*nt for carriage of passengers or cargo (i.e., FAA Part 91), reported a YTD decrease of -1.5% but a 2% increase in YoY activity.
MI https://jetsupport.com/insights/
!
page 24
www.AVBUYER.com
General Aviation March.qxp_Layout 1 18/02/2019 12:51 Page 1
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:51 Page 5
MARKET INDICATORS
AVBUYER.com
SkyQuest Projects Busy Anniversary Year Ahead North Carolina-based SkyQuest International, LLC announced a significant increase in aircraft appraisals and valuations requests in the last two quarters and projects a busy 2019 to mark its 20th anniversary year. Based on the demand experienced during the last two quarters in 2018, Jeff Melang, executive vice president and senior aircraft appraiser at SkyQuest projects 2019 will “be a busy year in both appraisals and aircraft sales.” For the entirety of 2018, SkyQuest International provided 44 individual aircraft and six fleet appraisals for various airlines and financial institutions worldwide, including 21 aircraft and three fleets in Q4 alone. “For the whole of 2018, we achieved the highest transaction value of aircraft sales since 2014, with an average transaction of $1.3m per aircraft,” Greg Melang, president & CEO revealed. “As
GREG MELANG (LEFT) AND JEFF MELANG
we kick off into 2019…we have an inventory of over 125 aircraft, with almost half of that being currently marketed.” Agreeing with Jeff, Greg anticipates “a very busy year ahead in the secondary aircraft market.” MI www.skyquestinternational.com
Middle East Bizjet Deliveries to Grow
Business jet deliveries to the Middle East are expected to total nearly 200 aircraft over the next decade, according to data from the Aviation Week Network… Twelve deliveries in 2019 could rise to 20 in 2028. The top deliveries through the 10year period from 2019 through 2028 are expected to be the Boeing 737 MAX (23 deliveries), followed by the Gulfstream G650, with the Bombardier Global 6500, Bombardier Global 7500 and the Gulfstream G600 tied for third place. At the same time, the business jet fleet in the Middle East is expected to grow to nearly 435 aircraft in 2019 and to 580 by 2028, with a compound annual growth rate of 3.3%, according to Aviation Week data. MI www.aviationweek.com
Three Reasons Why Used Inventory Will Increase For almost ten years the number of used business jets for sale on the market has been declining reaching less than 9% of the BRIAN fleet for sale in FOLEY January 2019, a low not seen in the last 20 years. Brian Foley offers three reasons why this trend is set to reverse... “It’s always a risk to call the high or low of any market, but after nearly a decade of tightening inventory I feel we're at a bottom and used business jet inventory will begin edging upwards into the foreseeable future,” Foley predicts. There are three key reasons why inventory will grow. 1) US Economy First, the economy is beginning to show early signs of fatigue in the US, which is the biggest purveyor of used jets. This will have the effect of causing inventory to rise as confidence deteriorates and 24 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
discretionary spend on airplanes reigns in. While new tax reform benefits introduced in 2017 juiced the used market, it’s believed that buyers who could benefit from it have already bought, thus reducing used demand going forward. 2) Analytics Next is simple analytics. Previous periods of contracting inventory in the 1990s and 2000s each lasted for a period of seven and six years respectively. The current 2009-2019 ten-year inventory contraction has already exceeded those periods by 3-4 years, which suggests statistically that a correction is overdue in this cyclical business. 3) FAA Mandate Finally, a new mandate by the Federal Aviation Administration (FAA) will require all business jets to be equipped with new, expensive, electronic equipment to signal the aircraft’s whereabouts (ADS-B), by the end of this year.
Some owners will put their aircraft up for sale rather than paying to comply. This will contribute to steadily rising inventory levels throughout the year consisting of undesirable aircraft that won't sell anytime soon. What’s the Impact? A significant impact on new aircraft sales isn't expected, since an increase in older aircraft is not of interest to typical new aircraft buyers. For used aircraft brokers, somewhat fewer pre-owned sales activity can be expected since rising inventory is indicative of more people wanting to get out of ownership than get in. Finally, don’t expect pricing of used aircraft, which have also been in a tailspin for a decade, to recover much. Whereas supply and demand dynamics once kept used prices propped up, basic capital good economics have caught up to business jets and softer residual values are now the norm. A new business jet now depreciates no differently than a Buick automobile. page 26 MI www.brifo.com
!
www.AVBUYER.com
EAGLE AVIATION +1 803.822.5520
2861 AVIATION WAY
[emailprotected]
COLUMBIA METRO AP (KCAE)
EAGLE-AVIATION.COM
WEST COLUMBIA SC 29170 USA
2009 CITATION CJ3 • 525B-0319
2013 CITATION MUSTANG • 510-0446
2000 LEARJET 31A • 31A-204
1984 CHEYENNE 400LS • 42-5527003
2000 SOCATA TBM-700B • 180
2008 CIRRUS SR22 TURBO G3 • 3279
2007 CESSNA T182T • T18208764
2001 CESSNA T182T • T18208026
CARY FRIEDMAN
HOWARD HENRY
VP Aircraft Sales & Acquisitions 803.429.7408 cell | 803.822.5526 ofc [emailprotected]
Aircraft Sales & Acquisitions 803.261.4782 cell | 803.822.5550 ofc [emailprotected]
Aircraft Sales & Acquisitions 336.406.6947 cell | 803.822.5527 ofc [emailprotected]
RALPH LACOMBA
BRYAN WOOD
LEE THOMAS
Aircraft Sales & Acquisitions 803.530.3520 cell | 803.822.5578 ofc [emailprotected]
Piston Aircraft Sales & Acquisitions 816.665.6207 cell | 803.822.5522 ofc [emailprotected]
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:52 Page 6
MARKET INDICATORS
AVBUYER.com
In-Service Aircraft Values & Maintenance Condition Asset Insight’s market analysis on January 31, 2019 covering 94 fixed-wing models and 1,583 aircraft listed for sale, revealed a 0.5% decrease to the tracked inventory fleet (-8 units). Following were the important trends… Turboprops led the way for the inventory reduction with a 3.5% decrease, Medium Jets decreased by 1%, Large Jet inventory increased 0.3%, while Small Jet inventory grew by 1.3%. The average aircraft value for our tracked fleet matched the average value figure generated over the past 12 months, but only Medium Jets experienced a value increase as January closed. .
Inventory Fleet Maintenance Condition
Fleet asset quality improved during January 2019. Large jet transactions once again focused on lower quality, higher priced assets, while Medium Jet buyers focused on lower quality, lower priced assets. Small Jet additions to the inventory fleet raised asset quality for this group, while Turboprop inventory quality remained virtually unchanged. Overall, Asset Insight’s tracked inventory revealed: • Quality Rating remained in the ‘Excellent’ range, improving from 5.300 to 5.318 on Asset Insight’s scale of -2.5 to 10 (www.nafa.aero/articles/understanding-asset-quality). • January’s Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) posted an improvement that, at $1.397m was only slightly higher (worse) than the best figure for the past twelve months.
Maintenance Exposure to Ask Price (ETP) Ratio
The ETP Ratio is a useful indicator of an aircraft’s marketability. It is computed by dividing the asset's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by its Ask Price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s time on the market increases, usually by more than 30% and, during Q4 2018, assets whose ETP Ratio was 40% or more were listed for sale over 57% longer (on average) than aircraft whose Ratio was below 40% (246 vs 386 Days on Market). January’s analysis revealed that over 51% of all tracked models and just under 62% of the tracked fleet posted an ETP Ratio above 40%. The ETP Ratio decreased (improved) during January 2019, decreasing to 64.8% from December’s 65.6%. Turboprops led the way at 49.6%, an ETP Ratio just slightly higher (worse) than the group’s best (lowest) figure registered during the past 12 months; Large Jets followed with an improvement at 57.8%; Small Jets improved to 65.8%; and Medium Jets improved to 77.1%.
!
26 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
Table A
Fleet Maintenance Condition $ Million
5.35
5.318
$1.45
5.25 $1.40
5.15
$1.50
F
M
A
Quality Rating
M
J
J
A
S
Maintenance Exposure
O
N
D
J
$1.40 $1.35
Quality Rating Trendline
Table B LOW RISK AIRCRAFT MODEL ETP RATIO G650 Boeing BBJ Phenom 300 Citation Encore + F2000LX Citation CJ4 525C F900EX EASy Pilatus PC12 CL605 Falcon2000EX EASy Citation Sovereign 680 G150 G550 Piper Meridian KingAir 350 - Post-2000 Hawker 900XP Citation CJ3 Challenger 300 Citation XLS (MSG3) Global XRS Citation CJ2+ 525A G450 F2000EX Phenom 100 Learjet 45XR Global 5000 Citation Mustang 510 KingAir B200 - Post-2000 F900EX Citation Encore KingAir 350 - Pre-2001 Citation XLS Hawker 850XP Citation Excel 560XL Falcon 50EX Embraer Legacy 600 Citation CJ2 Citation CJ1+ Learjet 60XR G200
3.8% 5.7% 11.1% 11.9% 12.0% 13.3% 14.4% 14.9% 14.9% 17.6% 17.7% 20.4% 21.3% 21.8% 22.0% 22.1% 22.9% 23.1% 23.3% 23.8% 23.9% 24.0% 24.5% 25.5% 26.3% 27.9% 28.6% 29.8% 30.0% 30.3% 30.8% 31.5% 32.8% 33.5% 34.2% 34.7% 36.5% 37.2% 37.6% 39.9%
HIGH RISK AIRCRAFT MODEL ETP RATIO GV Citation Bravo Premier 1A KingAir B200 - Pre-2001 CL604 Hawker 400XP Hawker Beechjet 400A Piaggio P180 II KingAir 300 F900B F900 Learjet 45 Citation V Ultra Falcon 2000 Citation V 560 Learjet 45 w/APU GIV-SP (MSG3) Premier 1 Hawker 800XP GIV-SP Citation X (MSG3) Global Express Piaggio P-180 Hawker 1000A Falcon 50 Citation VI Citation ISP KingAir C90 Citation II Learjet 60 G100 Hawker Beechjet 400 Learjet 35A Hawker 800A GIV CL601-3R Learjet 31 CL601-3A Learjet 55 CL601-1A Falcon 20-5 GIII
40.6% 40.8% 41.0% 42.4% 45.3% 47.7% 48.3% 49.1% 50.1% 50.8% 53.7% 54.4% 59.2% 59.5% 60.5% 60.7% 62.5% 67.9% 69.5% 71.6% 72.2% 73.2% 80.7% 89.6% 90.2% 99.0% 100.5% 102.8% 107.8% 113.9% 136.5% 143.2% 143.5% 146.2% 149.6% 153.5% 159.3% 176.6% 219.0% 246.9% 353.2% 620.8%
Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) as of January 31 2019 Source: JETNET (www.jetnet.com) Asset Insight, LLC (www.assetinsight.com)
www.AVBUYER.com
Textron Aviation March.qxp_Layout 1 18/02/2019 12:55 Page 1
Aircraft we built. Expertise you trust.
WE SELL MORE PRE-OWNED THAN ANYONE. Contact a Textron Aviation representative to learn more. U.S. + 1 . 8 4 4 . 4 4 .T X TAV
|
INTERNATIONAL + 1 . 3 1 6 . 5 1 7. 8 2 7 0
© 2019 Textron Aviation Inc. All rights reserved.
|
T X TAV. C O M / P R E OW N E D
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:52 Page 7
MARKET INDICATORS
Large Jets Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
Market Summary The combination of transacting aircraft and new additions to the inventory fleet improved overall asset quality to just below the 12-month best (highest) figure and concurrently decreased (improved) Maintenance Exposure to just above the 12-month best (lowest) posted value. Combined with the decrease in overall Ask Pricing, current availability offers much opportunity for buyers to identify good values and for sellers to strike reasonably-priced deals. Large Jets: Inventory increased by one unit, with January’s transactions comprised of mostly lower quality assets. The changes to inventory resulted in another 12-month high (best) Quality Rating and a
Jan-19
Dec-18
5.200
Nov-18
$3.10
Oct-18
5.300
Sep-18
$3.20
Aug-18
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Jul-18
Aug-18
Jun-18
Apr-18
May-18
Feb-18
Mar-18
$10.5
$11.8
Feb-18
$11.5
5.400
Jul-18
$3.30
Jun-18
$3.40
5.508
5.500
May-18
$12.5
$3.50
Apr-18
$3.38
Mar-18
$13.5
Scale -2.500 to 10.000
Maintenance Exposure figure slightly better than the 12-month average. Ask Price decreased 1.6%, but the group still posted an increase of 8.9% during the past twelve months. With an ETP Ratio that hasn’t been this good since March 2018, there are ample opportunities for buyers and sellers to find middle ground. Medium Jets: Inventory for the tracked fleet decreased by five units in January, while the group’s average Ask Price increased 1.1%. Asset Quality improved a slight 0.1%, while Maintenance Exposure also improved (decreased) 1.4% due to lower quality assets primarily trading. Ask Price has not been this high since May 2018. While the group’s ETP Ratio continues to create an
Medium Jets Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
28 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
5.000
Aug-18
$1.05
5.100
Jul-18
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
May-18
Apr-18
Mar-18
Feb-18
$2.47
$1.10
5.200
Jun-18
$1.15
$2.50
5.237
May-18
$1.20
$2.70
$2.30
$1.25
Apr-18
$1.22
$2.90
5.300
Mar-18
$1.30
Feb-18
$3.10
Scale -2.500 to 10.000
www.AVBUYER.com
MarketIndicators March19.qxp_Layout 1 20/02/2019 12:53 Page 8
AVBUYER.com Tony Kioussis is president of Asset Insight. The company provides audit and valuation services and has developed a standardized Asset Grading System scale that evaluates an aircraft’s maintenance condition.
Small Jets Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
$2.00
$0.85 5.500
$1.90
$0.73
$1.80 $1.70
$0.75
5.391 5.300
unfriendly transaction environment, buyers should keep in mind that current pricing and better-thanaverage asset quality offer real opportunity to identify good values. Small Jets: The for sale fleet increased by six units in January, with mostly higher quality assets joining the inventory. The latest aircraft mix improved both asset quality and Maintenance Exposure, and with average Ask Price dropping 3.7%, and the group’s ETP Ratio at its lowest (best) figure of the past Asset analytics (www.assetinsight.com) three months, weInsight advise prospective buyers to act – and soon. Turboprops: by another ten Asset InsightInventory analyticsdecreased (www.assetinsight.com) units this month, but asset quality remained
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
May-18
Apr-18
5.100 Mar-18
$0.65
Feb-18
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
Apr-18
May-18
Feb-18
$1.72 Mar-18
$1.60
Scale -2.500 to 10.000
virtually unchanged within the ‘Very Good’ range. Maintenance Exposure improved (decreased) 1.5% and, while Ask Price decreased a nominal 0.4%, the group’s ETP Ratio improved (decreased) to 49.6%, the lowest (best) figure of the past three months. As we stated last month, we anticipate demand and marketability to remain strong for Turboprops during Q1 2019. MI www.assetinsight.com ❙ Asset Quality Rating Key Outstanding Excellent 5.500 5.250 or to Greater 5.499
Very Good 5.000 to 5.249
Good 4.750 to 4.999
Below Average Average 4.500 Less to than 4.749 4.500
Turboprops Ask Price vs. Maintenance Exposure
Asset Quality Rating
$ Millions
$1.55
Scale -2.500 to 10.000
$0.65 $1.50
$1.50
$0.58
$1.45
$0.60 $0.55
5.200
5.109
5.100
5.000 4.900
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
May-18
Apr-18
4.700
Mar-18
$0.50
Feb-18
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
Apr-18
May-18
Feb-18
$1.40
Mar-18
4.800
Ask Price Source: JETNET Asset Insight Analytics
www.AVBUYER.com
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
29
EXCLUSIVELY REPRESENTED BY
2015 GULFSTREAM G450
2001 BOMBARDIER GLOBAL EXPRESS
SERIAL NUMBER 4321
SERIAL NUMBER 9049 – REGISTRATION M-MDBD
AIRFRAME ON GULFSTREAM PLANEPARTS, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, HONEYWELL HD-710 HIGH SPEED DATA, PLANEVIEW ENHANCED NAVIGATION PACKAGE, SYNTHETIC VISION 2.0 & EVS, ADS-B OUT, RUNWAY AWARENESS ADVISORY SYSTEM (RAAS), DIGITAL FLIGHT DATA RECORDER, HIGH SPEED DATA SYSTEM, ENHANCED SOUND PROOFING
AIRFRAME ON SMART PARTS PLUS, ENGINES ON ROLLS ROYCE CORPORATE CARE, APU ON HONEYWELL MSP, FAA CERTIFIED, BATCH 3 COMPLIANT, FANS-1A, CPDLC, R-NAV, 14 PASSENGER CONFIGURATION (9 PASSENGERS CERTIFIED FOR TAKE-OFF AND LANDING)
2015 BOMBARDIER CHALLENGER 350
2013 BOMBARDIER CHALLENGER 300
SERIAL NUMBER 20583 – REGISTRATION D-BHGN
SERIAL NUMBER 20424
AIRFRAME ON SMART PARTS PREFERRED, ENGINES ON MSP GOLD, APU ON MSP GOLD, EU-OPS CERTIFIED, ONE OWNER SINCE NEW, NO DAMAGE HISTORY, FRESH 36 MONTH INSPECTION (NOVEMBER 2018), PARTIAL EXTERIOR REPAINT (NOVEMBER 2018)
IN SERVICE OCTOBER 2013, 100% JSSI COVERAGE ON ENGINES AND APU, EU-OPS 1 COMPLIANT, DUAL IRS, AIRSHOW 4000 SYSTEM WITH WORLDWIDE PACKAGE, DESIRABLE DUAL DOUBLE CLUB SEATING, FORWARD CABIN POCKET DOOR, VIP PCU GALLEY CONTROL, DUAL LCD 20 INCH CABIN DISPLAYS, ONE OF THE NEWEST CL300’S ON THE MARKET
2007 DASSAULT FALCON 900EX EASy
2003 DASSAULT FALCON 2000EX
SERIAL NUMBER 190 – REGISTRATION N990FL
SERIAL NUMBER 11 – REGISTRATION HB-JEF
DASSAULT INSTALLED API BLENDED WINGLETS, IMPROVED 4,750 NM RANGE, ENGINES & APU ON MSP GOLD, AVIONICS ON HAPP GOLD, DRY BAY MOD COMPLETED, EASy II INSTALLATION 3RD CERT, PARTIAL INTERIOR REFURB 2015, EXTERIOR STRIPES & VERTICAL STABILISER PAINTED 2015, NO DAMAGE HISTORY, 14 PAX INTERIOR, HONEYWELL JETMAP II WITH PASSENGER BRIEFING SYSTEM / APPLE TV / DUAL DVD, ATG 4000 WITH GOGO BIZ WIFI WITH TEXT & TALK ACTIVATED, IRIDIUM AIRCELL AXXESS II SATCOM PHONES, FANS-1/A, CPDLC, ADS-B OUT, TCAS 7.1, HEAD-UP DISPLAY, SYNTHETIC VISION SYSTEM
FRESH 1A/1A+, 2A/2A+, 3A/4A+, Z & ENGINE INSPECTIONS, FRESH SWISS CERTIFICATE OF AIRWORTHINESS & CERTIFICATE OF REGISTRATION, DESIRABLE 10 SEAT CONFIGURATION, ONLY TWO OWNERS SINCE NEW, AIRCRAFT ON CAMP, ENGINES ON ESP, APU ON MSP, NEW PAINT IN MARCH 2013, CARPET REPLACEMENT IN DECEMBER 2015, RVSM, EASA & EU-OPS 1 CERTIFIED, ADS-B OUT
THE WORLD’S FIRST AND ONLY STREET LEVEL CORPORATE AVIATION SHOWROOM.
EXCLUSIVELY REPRESENTED BY
2013 BOEING BUSINESS JET
1998 BOEING BUSINESS JET
SERIAL NUMBER 38408
SERIAL NUMBER 29273
DELIVERED IN 2015, VVIP CABIN COMPLETION (JET AVIATION AG), LOWER CABIN ALTITUDE (LCA) SYSTEM, UPGRADED COLLINS MULTISCAN WEATHER RADAR, ROCKWELL COLLINS VENUE CABIN MANAGEMENT SYSTEM (CMS), L3 DIGITAL FLIGHT DATA RECORDER (DFDR), VIASAT KU-BAND INTERNET, HONEYWELL MULTI-CHANNEL SATCOM SYSTEM, ROCKWELL COLLINS AIRSHOW 4000, AVS OUTSIDE CAMERA SYSTEM, COLLINS TCAS II CHANGE 7.1, 8 TANK AUXILIARY FUEL SYSTEM, ENGINES ON GE ONPOINT, APU ON HONEYWELL AMP
NEW INTERIOR REFURB 2017, NEW EXTERIOR 2017, FANS-1/A, TCAS 7.1, ADS-B, LOW CABIN ALTITUDE UPGRADE, HEAD-UP DISPLAY (HUD), APPLE TV, SATCOM SBB UPGRADE – WIFI HD-710, IFE/CMS UPGRADE, 9 PATS TANKS – LONGEST RANGE BBJ AVAILABLE ON THE MARKET
2008 AIRBUS ACJ318
2010 EMBRAER LINEAGE 1000
SERIAL NUMBER 3530 – REGISTRATION VP-CKH
SERIAL NUMBER 19000140 – REGISTRATION N588AH
EXTENDED RANGE VARIANT, INTERIOR COMPLETION CARRIED OUT BY LUFTHANSA TECHNIK, EU-OPS 1 CERTIFIED
ENGINES ON GE ONPOINT, NO DAMAGE HISTORY, ADS-B UPGRADED, FRESH 96 MONTH INSPECTION, WILL DELIVER WITH; CREW TRAINING, EASA / ISLE OF MAN CERTIFICATION, AIRFRAME ON EMBRAER EXECUTIVE CARE STANDARD, POST DELIVERY; FANS-1/A & CPDLC UPGRADE WHEN AVAILABLE (SB UNDER DEVELOPMENT), NEW PAINT TO BUYER’S SPECIFICATION, NEW LIMITED SOFT GOODS TO BUYER’S SPECIFICATION
FILE PHOTO
2018 EMBRAER LEGACY 500
1997 GULFSTREAM G-V
SERIAL NUMBER 55000048
SERIAL NUMBER 506 – REGISTRATION M-FISH
THE ONLY MIDSIZE BUSINESS JET WITH FULL FLY-BY-WIRE, TWO PILOT TRAINING SLOTS INCLUDED, EASA / EU-OPS 1 CERTIFIED, ADS-B OUT, CPDLC OVER ATN (EASA LINK2000+) – CONTROLLER-PILOT DATA-LINK, STEEP APPROACH CAPABILITY, HIGH ALTITUDE LANDING AND TAKEOFF OPERATION, SWIFT BROADBAND HIGH SPEED DATA, HEPA FILTRATION SYSTEM
LOW TIME, ENGINES ON ROLLS ROYCE CORPORATE CARE, AVIONICS ON HONEYWELL AVIONICS PROTECTION PLAN, MECHANICAL PARTS ON HONEYWELL MECHANICAL PROTECTION PLAN, NO DAMAGE HISTORY, OPERATED PRIVATELY – NOT FOR CHARTER, FAA COMPLIANT – PART 91, FORWARD GALLEY & CREW REST, NEW EXTERIOR PAINT & INTERIOR IN 2015, SPACIOUS 8+1 PASSENGER CONFIGURATION FEATURING AFT PRIVATE MASTER BEDROOM WITH FIXED FULL SIZED BED
25 Park Lane, London W1K 1RA EU +44 (0) 845 521 5555 | US +1 917 414 1995 [emailprotected] | www.thejetbusiness.com
Buying&Selling 1 March19.qxp_Finance 19/02/2019 10:29 Page 1
BUYING & SELLING AIRCRAFT
Why a Jet’s Past Life Should Matter to Buyers
32 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
w
Buying&Selling 1 March19.qxp_Finance 19/02/2019 10:29 Page 2
AVBUYER.com
B
Jet Tolbert is President of American Aircraft Sales. Established in 1968, it is a premier brokerage firm which has been a trusted partner since corporations first began utilizing jet aircraft to grow their businesses. With offices in the US, a Latin America sales team and a partner office in Zurich, Switzerland, American Aircraft Sales is an active NBAA, IBAC, EBAA & AsBAA member.
While there are many factors impacting an aircraft’s pedigree, the ultimate questions for buyers center on whether certain business jets or turboprops could create higher than usual ownership costs, downtime or difficulty to resell. Jet Tolbert discusses…
F
ollowing are some general considerations for buyers of business aircraft to help understand a little more about an aircraft’s history and why it matters. This article covers only the tip of the iceberg, and there are always exceptions to the rule. An experienced consultant will be required to evaluate all the risks and opportunities in a potential acquisition. Moreover, the following observations are made with the assumption that the reader is considering only aircraft of a specific make/model. Each of the factors discussed will affect different aircraft models in different ways.
A Note on Aircraft Total Hours
When comparing two aircraft that are both flown and maintained regularly, generally a lower time airplane will have a lower maintenance cost and higher dispatch reliability, fewer delayed flights and less maintenance required between flights. This could impact some aircraft types more than others due to items like lifelimited airframes and differing inspection intervals. www.AVBUYER.com
Buyers should keep in mind, however, that some older aircraft could have very low total time having been parked for extensive periods with little or no maintenance. This comes with its own risks and would need to be evaluated on a case by case basis.
Past Maintenance and Damage History?
All aircraft are exposed to multiple factors that can require higher levels of maintenance outside of their scheduled inspections. The mere fact of pulling an aircraft out of the hangar has associated risks of damage occurring (i.e. hangar rash). The speeds at which aircraft fly and their exposure to weather are going to unavoidably wear on an aircraft over time. Younger aircraft will naturally have less requirements for major repairs compared to an aging aircraft of the same type, so the impact of this type of negative history could be considered as a ratio relative to an aircraft’s age. Over time more airplanes in the fleet will have had higher-level repairs, so the impact on value will be less as it becomes more common within the fleet.
!
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
33
3
Buying&Selling 1 March19.qxp_Finance 19/02/2019 10:30 Page 3
BUYING & SELLING AIRCRAFT
Newer aircraft will also tend to have had major repairs carried out by the OEM while older models may have had more major repairs across the fleet that were completed by third-party maintenance providers. In either case the repairs could be structurally equivalent to the OEM, or they could vary and require additional inspections throughout the life of the aircraft. If the work undertaken by the thirdparty provider proves inferior, potential exists for a stigma to be attached to the airplane. Stigmas associated with major repair work can reduce over time as a specific repair may prove itself, or becomes more of a market norm as other aircraft in the fleet adopt similar work. Buyers should, nevertheless, be aware of these at the time of purchase.
What’s the Ownership History?
When considering the history of an aircraft’s ownership, buyers need to consider: • •
Where was the airplane based? Was it was operated privately (Part 91) or commercially (Part 135)? • What type of owner (i.e. fractional, private individual, or corporation with an organized corporate flight department) owned the aircraft previously? All the above factors could have impacted the current mechanical condition, record keeping, the pedigree and ultimately the cost of ownership going forwards. Additionally, foreign registrations could present concerns over corrosion that could remain hidden until the next major inspection. You should ask; did the private owner have the maintenance personnel to adequately keep track of the maintenance? Was the corporate owner 34 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
AVBUYER.com
thorough with their repairs, taking the time to address the problems not visible from outside or onboard the aircraft? Is there a history with the previously-chartered airplane being pushed to make trips to generate revenue, creating more wear-and-tear? These are just a few of the questions a wellversed buyer should be asking. A seasoned acquisition agent should have the connections to check up on the back story of an airplane’s ownership history.
Knowing the Market Value
An open-minded buyer who is fully informed about a business jet or turboprop’s history and is prepared to proceed with the acquisition should next consider its market value. A buyer must first seek to understand how active the market is, and which aircraft are trading. If airplanes with good and bad history are trading regularly then selection of your aircraft really comes down to looking at the future costs of ownership and market value.
In Conclusion
An aircraft’s past life pertains to its market value and resale-ability, as well as impacting a prospective purchase’s ongoing operations. Of course, no aircraft’s history should necessarily be branded as “bad” – but there are always exceptions. An aircraft’s history undeniably creates opportunity or risk. Quality is always a buyer’s best bet. Those who pay more now will pay less later. No matter how bad the market gets, the quality airplanes will always sell first, making them less of an expense and more like an investment… More information from www.americanaircraftsales.com ❙ www.AVBUYER.com
Janine K. Iannarelli International Aircraft Broker
Your journey. Our globe. My world. Thirty plus years of traveling the globe connecting people and businesses with the right airplane has made me realize that everything - and nothing has changed in the world of aircraft sales. The ability to analyze the markets, source the product, evaluate its merits and navigate the path to a successful transaction calls for a skillful and resourceful advocate. Your journey to a purchase or sale of a business jet should begin with retaining an experienced aircraft salesperson. Let’s talk about why corporations, individuals, and governments rely on Par Avion Ltd. for their aircraft transactional needs. +1 . 713 . 681 . 0075
CURRENTLY AVAILABLE:
2008 CJ3 | S/N 264 2773 TSN TAP Advantage Elite • Proparts Dual FMS • Dual GPS • TCAS II/7.1 Satphone FDR • CVR EU OPS 1 Approved • DOC 22 c/w July/2017 ACQUISITION REQUIREMENTS:
FALCON 2000 | FALCON 50EX
T +1 713 681 0075 | [emailprotected] | paravionltd.com | Houston, TX USA
O'GaraJets March.qxp_Layout 1 20/02/2019 10:07 Page 1
O'GaraJets March.qxp_Layout 1 20/02/2019 10:07 Page 2
Ownership.qxp_Finance 19/02/2019 09:52 Page 1
OWNERSHIP
Do Aircraft Registries Impact International Operations?
What factors do aircraft operators need to consider when selecting an aircraft registry? AvBuyer spoke with The Registry of Aruba’s Alexandria Colindres about the potential impact on international operations…
38 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
w
Ownership.qxp_Finance 19/02/2019 09:53 Page 2
AVBUYER.com
A
lexandria Colindres has worked at The Registry of Aruba for the past six years and holds the position of COO. Handling all aspects of customer development, she also works directly with Aruba’s Civil Aviation Authority, and provides support to the various other departments in order to keep continuous communication throughout the company. “I have cultivated strong relationships with our clients, team members, upper management and the community,” she explains. “This has resulted in significant increases in the success of numerous projects at The Registry of Aruba, and a stellar reputation in the aviation industry.” Currently, Aruba has over 150 aircraft on its registry, with several more in the pipeline. Popular models at the registry include Boeing BBJs, 737s, Gulfstream G550s and G450s, Embraer 190s and Airbus A320s. www.AVBUYER.com
O
AvBuyer took a moment to talk to Ms. Colindres about the potential impact an aircraft registry could have on an aircraft owner’s international operations. AvBuyer: Firstly, what are some of the trends that you’ve seen for aircraft registries in recent years? We’ve seen the emergence of a few new offshore registries. Does this reflect a growing need among operators to register their aircraft offshore? Colindres: Nowadays more and more operators realize the advantages offshore registries can offer – whether in terms of operational flexibility, quality and speed of service. Many of the offshore registries are focused on the Business Aviation market. Aircraft are not only registered offshore to minimize taxes. The ‘neutral’ registration mark offered by an offshore registry can provide global travel with more confidentiality.
!
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
39
4
Ownership.qxp_Finance 19/02/2019 09:53 Page 3
OWNERSHIP
You may also note that many offshore aircraft registries highlight their levels of services as a selling point, and with good reason: they have a customeroriented, service-focused culture firmly in place and allow for a high level of anonymity, a key selling point for many VIP and VVIPs. These advantages have created more demand for offshore registration, which has in turn spurred an increase in new offshore registries over the past few years. AvBuyer: Not all aircraft registries are created equal. Even the most popular have their disadvantages. What are some of the key considerations an aircraft owner should think through when selecting the right registry for their needs? Colindres: When choosing the right registry, owners must consider the ownership of the aircraft. Who will operate it? Where will its base of operations be? And how will the financing of the aircraft be managed? Final decisions will likely consider the cost of selecting a registry, and the related tax implications. A registry with a good reputation will also help preserve the resale value of the aircraft. In the end, by taking all of these factors into account a better, more informed decision can be made as to where to register the aircraft. AvBuyer: What are some of the common problems aircraft operators might face (relating to international flying) if they don’t select their aircraft registry carefully? Colindres: Each jurisdiction has individual agreements with countries, meaning that not all traffic rights apply equally to each jurisdiction. Using Aruba as an example, due to our long-standing reciprocity relationship with the US, Aruba commercial operators can obtain their Part 129 easily. Aruban operators can enjoy up to 7th freedom traffic rights to the US, allowing them to execute commercial non-scheduled flights as a result of the long-standing reciprocity agreement between the two countries. Under our existing Aruba-US open skies framework, when our AOC holders have submitted their applications for Statements of Authorization to 40 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
AVBUYER.com
the DOT, they have never been denied approval and the DOT officials have been very available and cooperative when it comes even to late notice and approvals after business hours. The same does not apply for certain other registries who do not hold such an agreement with the US. AvBuyer: Is it fair to assume the problems aren’t just restricted to access or political matters…? For example, maintenance issues could arise on an overseas trip and security could even be compromised if the appropriate registry isn’t selected. Colindres: Access to proper maintenance services, especially in the case of an emergency, need to always be on an owner/operator’s mind. Unforeseen maintenance issues could leave the aircraft grounded and this usually translates into lost income. At The Registry of Aruba, we offer a large network of approved MROs around the globe that can be accessed by P4-registered aircraft easily. If one is not accessible, our experiences team can often expedite one-time approvals for specific non-essential maintenance tasks to get the aircraft up and running, or at least to access an approved facility. Another issue to consider concerns resale value of the aircraft: Having an aircraft registered under a ‘weak’ CAA that has lower technical standards or a lack of oversight will certainly impact the resale value of the aircraft. In many cases the lessor or the financing agency will require the aircraft to be registered in a state with high safety standards. If those safety standards are not met, aircraft registered in that jurisdiction may be banned from flying into the airspace of other countries (finding their way onto the EU blacklist, for example). In this regard, Aruba assumes its international responsibility to ensure that all the aircraft it registers meet, or exceed, ICAO Standards – and it has been our mission since day one to ensure that Aruba’s DCA always remains fully compliant with the standards set by ICAO. Consequently, since 1996 Aruba has passed all audits and maintained its FAA Category 1 status. More information from www.airsafetyfirst.com ❚ www.AVBUYER.com
1st Source February.qxp_Layout 1 21/01/2019 12:04 Page 1
2 0 0 4 G u l f s t re a m 4 0 0 s /n 1 5 3 0
AIRCRAFT SALES & ACQUISITIONS U.S. +1 402.475.2611 Europe +44.7836.352676 www.DuncanAviation.aero/aircraftsales
4,461 Total Time. Rolls Royce Corporate Care. APU on MSP. HUD/EVS. ADS-B. WAAS/LPV. Triple FMS & IRS.
1 9 9 0 L e a r j e t 3 1 s /n 1 5
6,947 Total Time. Engines on MSP. Fresh MPIs. Excellent Maintenance and Ownership History.
Looking for an aircraft? Hire us! Acquiring an aircraft that meets your needs and minimizes your risk is time-consuming and complicated. As with any major investment, you should hire a consultant who works in the market full-time. Our comprehensive acquisition service is designed to consult with you and help you identify your true aircraft needs. Our experts then locate, evaluate and negotiate an aircraft purchase on your behalf.
2 0 1 5 L e g a c y 5 0 0 s /n 5 5 0 0 0 0 1 6
MAKE OFFER 1,230 Total Time. JSSI 100% Engines, APU and Airframe. Excellent Condition Throughout.
1 9 8 5 Fa l co n 5 0 s /n 1 5 3 REDUCED PRICE
Duncan Aviation has been assisting companies around the world with the sales and acquisition of aircraft for 60 years.
World AvBuyer Ad 2_13_19.indd 2
14,430 Total Time. Low Cost Turnkey Lift Solution With Transcontinental Capabilities. CAMS Tracking.
2/7/2019 1:52:06 PM
MAKE OFFER
2 0 0 2 Fa l co n 2 0 0 0 s /n 1 9 5
2002 Learjet 45
3,325 Total Time. Engines & APU Honeywell MSP. Two US Owners. 2009 Duncan Aviation Paint & Interior.
2007 Citation XLS
3,722 Total Time. Winglets. Engines-ESP Gold. APUMSP Gold. 10 Passenger Interior. ADS-B. WAAS/LPV.
1 9 97 Fa l co n 5 0 E X s /n 2 5 8
3,150 Total Time. ESP Gold. ADS-B Out. New Paint. New Interior Refurbishments by Duncan Aviation.
2 0 1 7 L e o n a rd o A 1 0 9 S P s /n 2 2 3 6 5
NEW LISTING
7,267 Total Time. MSP Gold. Dual UNS 1-EWs. ADS-B Out. Maintained By And Located At Duncan Aviation.
2 0 0 1 L e a r j e t 3 1 A s /n 2 1 0
SOLD
6,366 Total Time. WAAS/LPV & ZR LITE Mod. Excellent Maitenance Pedigree. Two Owners Since New.
2 0 0 2 D o r n i e r 3 2 8 - 3 1 0 s /n 3 2 0 9
6,477 Total Time. 14 Pax VIP. King Air Runways. Hawker Operating Costs. G550 Cabin. Wi-Fi. Long Range Fuel.
World AvBuyer Ad 2_13_19.indd 3
3 year OEM warranty. Dual Flight Deck. 4 Axis AFCS. 6 Passenger VIP Interior with ‘Super Silent Soundproofing.’
2 0 0 2 H aw ke r 8 0 0 X P s /n 2 5 8 5 9 4
Fresh G Check. Fresh Paint. CASP. MSP. ADS-B. Winglets. Medevac.
2 0 0 2 D o r n i e r 3 2 8 - 3 1 0 s /n 3 2 1 4
5,033 Total Time. 32 Passenger. Recent HSI By PWC. Mod-10. HF Equipped. Haul Everybody. Go Anywhere.
2/7/2019 1:52:18 PM
2 0 0 8 C i t a t i o n 5 6 0 X L S s /n 5 8 24
4,746 Total Time. Fresh Textron PPI, Doc 8 and Borescope. Make Offer.
D U N C A N AVIATION WAS F O U N DED I N 1 95 6 AS AN A I R C R A F T SALES O R G A N I Z ATION AND IS A F O U N D I N G MEMBER O F IA DA .
2 0 0 9 H aw ke r 4 0 0 0 s /n R C - 2 6
1,418 Total Time. 592 Cycles. Located In Dubai. No CoA. Make Offer.
1 9 9 8 C i t a t i o n E xce l s /n 5 0 1 5
SOLD
4,000 Total Time. Two U.S. Owners Since New. APU. Price Reduced.
ACQUISITIONS IN SEARCH OF • • • • •
Falcon 7X Falcon 2000 King Air B100 Sovereign 680 Citation XLS+
+1 402.475.2611 | www.DuncanAviation.aero
World AvBuyer Ad 2_13_19.indd 4
Experience. Unlike any other. www.DuncanAviation.aero/aircraftsales Since 1956, we have conducted more than 3,500 transactions. Backed by 2,223 aviation experts worldwide, each with an average of 12 years with the company. The aircraft sales team partners with these experts to provide technical support before, during and after the aircraft transaction.
2/7/2019 1:52:24 PM
YOUR GLOBAL CONNECTION Business growth requires a global perspective. It starts with the latest technologies, trends and ideas, and comes full circle with a world of connections that are key in helping you manage multiple budgets, high-performing teams and large-scale purchases. Find everything you need to make the most informed decisions all in one place: the 2019 European Business Aviation Convention & Exhibition (EBACE2019). Join us at EBACE to build relationships and explore the entire marketplace of options. And leave with the best solutions for your business. Get connected and move forward faster. Visit the EBACE website to learn more and register today.
REGISTER TODAY
www.ebace.aero
JetNet March.qxp_Layout 1 18/02/2019 12:59 Page 1
IGNITING IDEAS.
PROVOKING CHANGE.
9TH ANNUAL JETNET iQ GLOBAL BUSINESS AVIATION SUMMIT NEW INSIGHTS. NEW PREDICTIONS. June 4-5 | The Ritz-Carlton New York, Westchester Three Renaissance Square, White Plains, NY Registration: jetnet.com/summit
Join us this June in White Plains. 2019 Summit speakers and panelists are a virtual “Who’s Who” of business aviation—experts with unique perspectives on the industry’s present and future. Join the discussion with global leaders, and sharpen your competitive edge with accurate and timely predictions. Register now online.
The World Leader in Aviation Market Intelligence 800.553.8638 +1.315.797.4420 +41 (0) 43.243.7056 jetnet.com
Ownership 2.qxp_Finance 19/02/2019 10:00 Page 1
AVBUYER.com
OWNERSHIP
O
Flying a Jet? Three Tips to Reduce Operating Costs
What could you be doing to keep the operating costs of your flight department down? Dave Higdon spoke with a variety of operators to piece together a picture of the industry best-practices…
T
he tips and tricks of operating a business jet vary. Whether using airports with lower fuel prices, avoiding FBOs with excessive ramp fees, or learning which airports and FBOs make the extra effort to save you money and time, you’ll find a variety of avenues to explore. The ideas will have varying impact on your operating costs - from the simple practice of flying a cleanly polished aircraft, to paying a negotiated contract price for your fuel. Nevertheless, the collective goal is to gain the greatest overall benefit to help manage costs on a long-term basis. Although achieving the lowest costs on every flight faces an inherently ‘aviation’ challenge (namely facing costs that vary according to the part of the country the airplane happens to land in), many aspects of operating costs are subject to cost-control practices common to other businesses. Each cost-saving suggestion should be taken up by the operator with an intent to audit and confirm its effectiveness. www.AVBUYER.com
Given the many variables at work in business flying, you may find that your practices do save money for the company or owner. But other expenses may offset the impact of the savings on your total operating costs. In other words, success in some areas doesn't guarantee overall savings. For most operations, confirming the impact will take multiple billing cycles to build up a broad record of operational costs under any new regimen. Six or more months in a new program should show its impact on costs. With the above stipulated, following are our three top tips for making savings when operating your business jet.
Tip #1: Fuel Cost Management
Modern turbine aircraft fly far more efficiently than their predecessors of two or three decades ago. The differences can be as much as 40% less fuel burned compared to the powerplants of the 1970s and 1980s.
!
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
47
4
Ownership 2.qxp_Finance 19/02/2019 10:00 Page 2
OWNERSHIP
Despite these efficiency gains, fuel costs continue to constitute as much as two-thirds of an aircraft's variable operating cost and illuminates the importance of employing best practices in the selection of fuel vendors. This is particularly the case where the airport gives operators a choice of fuel dispensers. Pilots and owners employing the best practices in fuel selection seldom find a one-program-fits-all solution. As one contract pilot told AvBuyer, “It's best to use more than one solution because not every airport will offer every program or every fuel brand. There are savings available by using the program or card that's the most-advantageous for that particular stop.” Two or three fuel cards and program membership for the FBO chains visited the most should suffice. The broader the chosen program’s reach the better the benefit for the operator. As a practice, pilots and operators polled for this article recommended using no fewer than three different fuel-program types. Several added that FBO programs and those of the fuel companies often offer side benefits with 48 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
further economic value. “You can't know all the benefits you could be using if you never read the mailings or the bills,” one pilot explained. “The card may well offer benefits beyond the fuel savings. For example, the program we use provides savings when using specific catering and cabin-service companies, adding to the potential value of our savings.”
Tip #2: Pre-Paid and Hourly Maintenance Programs
Hourly maintenance programs are discussed in depth elsewhere within this edition and exist in various forms – from third-party tip-to-tail programs covering every aspect of business aircraft maintenance, to OEM-run programs tailored to specific elements of an aircraft, including its engines. The ultimate thing the operator gains is predictability; budget stability. The programs vary in their scope and coverage but share the same basic structure: Operators report their monthly aircraft usage and pay a fixed, hourly fee toward their maintenance needs.
www.AVBUYER.com
w
Ownership 2.qxp_Finance 19/02/2019 10:01 Page 3
AVBUYER.com Dave Higdon is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 36 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets. Contact him via [emailprotected]
“A relationship with a charter or fractional ownership provider with fleet aircraft available to fulfil your remaining needs will help save on your operating costs...”
Then, when a need arises, the operator can contact the maintenance-program administrator and arrange for necessary work to be done by the program's pre-approved people – or at a shop approved by the program administrators. Part of the appeal of these programs is how they can function as de facto warranty programs for aircraft that are out of warranty. But there's no question that the major appeal stems from the predictability of maintenance costs – insulating an operator from the shock effect of a sudden unplanned maintenance event.
Tip #3: Always Consider Alternative Lift
Finally, the most efficient flight operations tend to weigh whether the company airplane provides the best option for each trip. A relationship with a charter operator can provide the baseline cost to apply to any given trip. Considering whether to use the company airplane is a fair question where minimizing operating costs is concerned. Depending on the length of the trip, the stops required and the personnel load, the company aircraft may not
www.AVBUYER.com
always be the most cost-efficient option, which could be a step up or a step down in aircraft range, size and capability. One size seldom fits all, where Business Aviation is concerned. The airplane selected should represent the best fit for the majority of your mission needs. A relationship with a charter or fractional ownership provider with fleet aircraft available to fulfil your remaining needs will help save on your operating costs, ultimately.
Summary…
The three tips highlighted in this article are not the only three cost saving tips to reduce operating costs. Each flight department develops its own set of practices, and there are almost as many tips as there are operations. Ultimately, as highlighted by the three tips in this article, diligence, effort and carefully selected relationships in key areas will ultimately help achieve the goal of keeping your flight department costs under control. ❚
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
49
Project1_Layout 1 22/02/2019 10:29 Page 1
Project1_Layout 1 22/02/2019 10:30 Page 1
Avjet FP January.qxp_Layout 1 18/12/2018 10:44 Page 1
Avjet multi February.qxp_Layout 1 23/01/2019 14:11 Page 1
2001 Gulfstream GIVSP SN 1447
2006 Hawker 850XP SN 258812
2000 Boeing 757 SN 29306
2009 Challenger 605 SN 5769
2016 Global 6000 SN 9744
1986 Boeing 767-200ER SN 23402
LOS ANGELES MARC J. FOULKROD +1 (818) 480-9964
SALES | ACQUISITIONS | CONSULTING AVJETGLOBAL.COM
WASHINGTON D.C. ANDREW C. BRADLEY +1 (410) 626-6162
Ownership 3.qxp_Finance 19/02/2019 10:11 Page 1
OWNERSHIP David Wyndham is co-owner & president of Conklin & de Decker, a JSSI Company, where his expertise in cost and performance analyses, fleet planning and life cycle costing are invaluable. He’s formerly an instructor pilot with the US Air Force. Contact him via [emailprotected]
How Long Should You Keep Your Jet? When buying a business jet, it’s important to have an idea of how long you will own the aircraft. David Wyndham assesses not only why, but how you should build a plan…
A
client was recently looking at how the cost of owning their first business jet compares to a jet card or block charter. Their expected annual utilization is 350 hours and they plan to operate between two continents, requiring a Large Jet. They ultimately chose not to purchase the aircraft. Why did they choose not to own an aircraft? In short, their expected utilization period only covered the next two-to-three years. After that the client expected to retire and fly substantially fewer hours. In this case, a very short-term of ownership, combined with the projected decline in the aircraft’s residual value, meant the total ownership costs favored a wellstructured jet card program over outright ownership. There is no ideal length of time to own a business aircraft, however. The ideal will differ from one prospective owner to the next. So what are the key considerations that a buyer should take into account when determining the length of ownership? 54 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
Mission Changes
Changes in the primary mission will often dictate a change of aircraft to one that is a better fit. For example, one flight department suddenly needed to fly much longer trips following a merger. The existing aircraft lacked the necessary non-stop range, creating the need for a replacement aircraft. Likewise, if the need to carry a certain number of passengers changes then an equipment change could be required. Mission requirements could dictate a smaller aircraft or a larger one. For example, there's no need for a 12-passenger Long Range Jet if the primary mission changes to short hops with fewer passengers. When the mission changes, it's important to establish if these are for the short-term or will be more permanent. A short-term change in mission or hours to be flown might be wellserved by charter or a jet card. As a part of your acquisition process, you will need to see if any foreseeable mission changes are likely to occur, and if so, when and for how long.
!
www.AVBUYER.com
w
Ownership 3.qxp_Finance 19/02/2019 10:12 Page 2
AVBUYER.com
www.AVBUYER.com
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
55
Ownership 3.qxp_Finance 19/02/2019 10:12 Page 3
OWNERSHIP
AVBUYER.com
Changing Costs
As an aircraft ages, it requires more maintenance to stay reliable. The time needed to perform that maintenance tends to increase. The costs of operating a newer aircraft are therefore lower than older examples. If the economics of the newer aircraft are lower than the older one, it can further support a change. For business-use aircraft, taxes may be another consideration when deciding how long to keep the aircraft. There are some companies that maximize the tax depreciation of the aircraft as aggressively as the tax law allows and, once depreciated, these companies often elect to replace the aircraft. Part of this discussion depends on the profits of the corporation and the need for tax deductions. Taxes should never be the sole reason to buy or sell your jet, but they can be a significant decision point. It's always a good idea to consult with a tax expert for further guidance.
Maintenance, Technology and Parts
Maintenance Factors: Calendar requirements for travel, advances in technology and the ability to obtain spare parts after an aircraft has been out of production for many years are among the other considerations for determining how long you should plan on keeping your jet. If the aircraft is flown a lot, the increased calendar availability of a newer aircraft needs to be factored into the equation. Older aircraft can be down for maintenance more than 50% of the time, which necessitates significant supplemental lift. How might an aging aircraft fit with your projected mission needs five years from the time of purchase?
Technology Factors: New technology that is required for ATC, navigation and increasing safety may not be cost-effective when modifying older aircraft. For some business jets, updating systems to a modern ‘glass co*ckpit’ suitable for global navigation can exceed $1m or more. For the older global jet, it may not be worth spending that money. This must be assessed at the time you’re buying a jet. Parts Availability: For much older aircraft with fewer left flying, the ability to find spare parts, irrespective of cost, makes the aircraft less able to meet its schedule. A rule of thumb is that if less than half the fleet is still flying, the aircraft can be considered an ‘end-of-life’ model – in which case, you may need to develop a plan for the aircraft’s scrappage once your planned term of ownership is finished.
In Summary
If the long-term mission needs are not likely to change, then the decision should center on costs. The costs of keeping or replacing the aircraft should be calculated using a life-cycle cost approach to arrive at the best financial solution. This approach considers not only the operating costs but also current and future values. It may also include taxes and the cost of capital. In summary, there is not one right answer for how long to own a business aircraft. The timing depends on the age of your aircraft and on the costs of owning and operating it. I’ve seen owners who change aircraft every fiveto-seven years and some who keep an aircraft 20 years or longer. ❙
Make more informed Aircraft Ownership Decisions - with AvBuyer 56 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
Corporate Concepts March.qxp_Layout 1 19/02/2019 09:49 Page 1
Project2_Layout 1 22/02/2019 10:44 Page 1
Project2_Layout 1 22/02/2019 10:45 Page 1
Jeteffect 6 aircraft March.qxp 19/02/2019 09:56 Page 1
Gulfstream G550 • S/N 5045
Gulfstream G500 • S/N 5100
Gulfstream G200 • S/N 156
Challenger 605 • S/N 5891
Falcon 50EX • S/N 313
Learjet 45XR • S/N 385
Los Angeles Palm Beach Dallas Atlanta Virginia Beach South Carolina email: [emailprotected]
• 562.989.8800 • 561.747.2223 • 214.451.6953 • 334.502.0500 • 757.821.2921 • 803.345.6000 • www.jeteffect.com
Jeteffect 6 aircraft March.qxp 19/02/2019 09:56 Page 2
Learjet 45 • S/N 079
Learjet 40XR • S/N 2101
Learjet 40XR • S/N 2090
Learjet 40XR • S/N 2044
Citation X • S/N 750-0121
Citation Sovereign+ • S/N 680-0510
Los Angeles Palm Beach Dallas Atlanta Virginia Beach South Carolina email: [emailprotected]
• 562.989.8800 • 561.747.2223 • 214.451.6953 • 334.502.0500 • 757.821.2921 • 803.345.6000 • www.jeteffect.com
Values Intro NOV.qxp_Finance 19/02/2019 14:27 Page 1
VALUES - LIGHT JETS
AVBUYER.com
Business Aircraft Values: Light Jets Where performance and value are dominant factors for a mission need, remember this: there’s nothing lightweight about the value and flexibility of the Entry-Level & Light Jets.
A
s business jets increase in size from Entry-Level & Light jets to the low end of the Large Cabin models, six to eight seats generally remains the standard configuration across size-category lines. And while cabins increase in volume generally (enabling more productive workspace for those traveling longer distances), full-fuel payload doesn’t seem to grow proportionally in most cases. As jets get bigger and heavier their runway needs increase, with no appreciable gain in how many people or equipment can fly – and thus we touch upon the key advantages of the Entry-Level & Light jet category - the value and flexibility offered to those who typically fly shorter legs. Fully-fuelled, an Entry-Level or Light jet can often barely carry the typical passenger load of three persons, unless one or two of them doubles as a crew member. Nevertheless, with the average mission length below 750 miles and the nominal maximum-range of Light jets around 1,200 miles, the crew enjoys the option of flying lighter and saving fuel. Fueling for the mission with NBAA reserves allows larger cabin loads, making three or four - plus crew - possible. The time difference between Entry-Level & Light jets and Large jets to fly a typical 750nm mission is small (about 10 to 12 minutes, overall) and is not a large time-saving for costs that may be considerably higher for the larger aircraft. Further, beyond these speed-range-payload operational basics, the Light jet crew will have the option of far 62 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
more airports, often closer, more convenient and less expensive than what’s needed for the Medium and Large jets. Thus, it’s hard to escape the heavyweight value of the Entry-Level & Light jet. So what exactly is a Light jet? Today we consider a jet “light” when its MTOW falls between 10,000 and 20,000 pounds. About a decade ago the Light segment represented the bottom rung of the business jet ladder. That was before the Entry-Level Jets entered the market, differentiated by weights below almost everything ever built at less than 10,000 pounds.
Entry-Level & Light Jet Price Guide
The following Entry-Level & Light Jets Retail Price Guide represents current average values published in The Aircraft Bluebook – Price Digest. The study spans a twenty year period, from 1999 through Winter 2018, and covers 34 models. Values reported are in US$m, with each reporting point representing the current average retail value published in the Bluebook by its corresponding calendar year. For example, the Cessna Citation Encore+ average value reported in the Winter 2018 edition of Bluebook shows $3.7 million for a 2009 model, $3.4 million for a 2008 model and so forth. Note: We have included 34 aircraft models in the following Light Jets average price guide, and for additional assistance, Conklin & de Decker’s Performance and Specifications data for these models can be referred to, beginning on page 68 www.AVBUYER.com
Elliott Jets March.qxp_Layout 1 18/02/2019 14:13 Page 1
Retail ValuesMarch2019.qxp_RPG 19/02/2019 14:31 Page 1
VALUES - LIGHT JETS
Entry Level & Light Jets: Average Retail Price Guide MODEL YEAR $
2018 US$M
2017 US$M
2016 US$M
2015 US$M
2014 US$M
2013 US$M
2012 US$M
2011 US$M
2010 US$M
2.3
2.2
2.1
2.0
4.5
4.2
3.8
3.6
3.3
3.0
2.7
2.5
6.2
5.7
5.5
5.3
2009 US$M
MODEL BEECHCRAFT PREMIER 1A BEECHCRAFT PREMIER 1 BOMBARDIER LEARJET 45XR BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR BOMBARDIER LEARJET 40 CESSNA CITATION XLS+560
12.0
10.5
8.250
7.750
7.0
6.7
CESSNA CITATION XLS 560
4.7
CESSNA CITATION ENCORE+560
3.7
CESSNA CITATION V ENCORE 560 CESSNA CITATION EXCEL 560-XL CESSNA CITATION BRAVO 550 CESSNA CITATION CJ4 525C
8.6
7.9
6.9
6.7
6.6
6.3
6.0
5.7
5.4
CESSNA CITATION CJ3+525C
7.6
6.9
6.2
6.0
5.9
CESSNA CITATION CJ3 525B
5.5
5.3
5.0
4.8
4.6
4.4
4.2
CESSNA CITATION CJ2+525A
4.5
4.3
4.1
3.9
3.7
3.6
3.4
3.4
3.2
3.0 3.0
2.8
2.6
1.4
CESSNA CITATION CJ2 525A CESSNA CITATION M2 525
4.5
3.9
3.6
CESSNA CITATION CJ1+525 CESSNA CITATION CJ1 525 CESSNA CITATION MUSTANG 510 CIRRUS VISION JET SF50
1.960
2.7
2.4
1.9
1.8
ECLIPSE 550
2.2
1.9
2.2
2.1
ECLIPSE 500 EMBRAER PHENOM 300E
9.450
EMBRAER PHENOM 300
8.5
8.0
EMBRAER PHENOM 100EV
4.2
4.0
EMBRAER PHENOM 100E
3.7
7.7
7.3
6.9
3.4
3.1
2.9
EMBRAER PHENOM 100
1.8
1.7
1.6
1.5
2.0
1.7
1.6
--
6.4
6.0
5.7
5.5
5.2
2.6
2.4
2.2
2.0
1.9
2.2
2.0
HAWKER 400XP
--
HAWKER BEECHJET 400A HONDAJET HA-420
5.0
NEXTANT 400XTI
4.6
4.0 4.5
PILATUS PC-24
4.0
3.6
3.1
2.7
2.5
8.5 AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: [emailprotected]
64 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
Retail ValuesMarch2019.qxp_RPG 19/02/2019 14:31 Page 2
AVBUYER.com
What your money buys today
Winter 2018 2008 US$M
2007 US$M
2006 US$M
1.9
1.8
1.7
3.4
2.3
2005 US$M
2004 US$M
2003 US$M
2002 US$M
2001 US$M
2000 US$M
1999 US$M
MODEL YEAR $ MODEL BEECHCRAFT PREMIER 1A
1.5
1.4
1.3
3.2
2.9
2.6
2.5
2.3
2.6
2.4
2.1
1.9
1.7
2.1
1.9
1.450
1.750
1.550
1.350
1.2
1.1
BEECHCRAFT PREMIER 1 BOMBARDIER LEARJET 45XR
1.6
1.5
1.4
1.3
BOMBARDIER LEARJET 45 BOMBARDIER LEARJET 40XR
1.250
BOMBARDIER LEARJET 40
5.2
CESSNA CITATION XLS+560
4.6
4.1
3.4
3.1
3.9
3.7
3.5
CESSNA CITATION XLS 560 CESSNA CITATION ENCORE+560
2.8
1.8
2.6
1.6
2.4
2.1
2.0
1.9
1.7
CESSNA CITATION V ENCORE 560
2.8
2.6
2.5
2.4
2.2
2.0
CESSNA CITATION EXCEL 560-XL
1.5
1.4
1.3
1.2
1.1
1.0
CESSNA CITATION BRAVO 550 CESSNA CITATION CJ4 525C CESSNA CITATION CJ3+525C
4.0
3.6
3.5
3.4
3.2
3.0
2.8
2.6
2.6
2.5
3.3
CESSNA CITATION CJ3 525B CESSNA CITATION CJ2+525A
2.4
2.3
2.2
2.1
2.0
CESSNA CITATION CJ2 525A CESSNA CITATION M2 525
2.4
2.2
2.1
2.0 1.9
1.3
1.2
CESSNA CITATION CJ1+525 1.8
1.7
1.6
1.5
1.3
1.275
1.1
CESSNA CITATION CJ1 525 CESSNA CITATION MUSTANG 510 CIRRUS VISION JET SF50 ECLIPSE 550
1.0
0.9
0.7
ECLIPSE 500 EMBRAER PHENOM 300E EMBRAER PHENOM 300 EMBRAER PHENOM 100EV EMBRAER PHENOM 100E
1.7 1.8
EMBRAER 100 1.7
1.5
1.3
1.150
HAWKER 400XP 1.1
1.050
1.0
0.950
0.9
HAWKER BEECHJET 400A HONDAJET HA-420 NEXTANT 400XTI PILATUS PC-24
AIRCRAFT BLUEBOOK DATA - CHRIS REYNOLDS, EDITOR. EMAIL: [emailprotected]
www.AVBUYER.com
AVBUYER MAGAZINE ❘ Vol 23 Issue 3 2019 ❘
65
ACSpecs Intro.qxp_AC Specs Intronov06 19/02/2019 10:34 Page 1
SPECIFICATIONS - LIGHT JETS
Aircraft Performance & Specifications Light Jets
T
he AvBuyer Magazine Guide to Aircraft Performance and Technical Specification Data is updated by Conklin & de Decker on a regular basis. The Guide is much more comprehensive and informative, providing more aircraft types and models and including variable cost numbers for all models. This month’s category of aircraft - Light Jets – appears opposite, to be followed by Turboprops next month. Please note that this data should be used as a guide only, and not as the basis on which buying decisions are taken. The data presents aircraft aged below 20 years of age only, but Conklin & de Decker provides details of older airplanes too. If there are any other ways in which we can improve the content or presentation of this information, please let us know.
Tel: +44 (0) 208 255 4000; Email: [emailprotected] © 2019 Conklin & de Decker Associates, Inc., P.O. Box 1142, Orleans, Massachusetts, 02653, Tel. 508-255-5975, www.conklindd.com
Description of Cost Elements
The following describes the content of each cost element used in The Aircraft Cost Evaluator. There are no sales taxes included in these costs.
SPECIFICATIONS - GENERAL
Cabin Dimensions: Cabin Height, Width, and Length are based on a completed interior. On “cabin-class” aircraft, the length is measured from the co*ckpit divider to the aft pressure bulkhead (or aft cabin bulkhead if unpressurized). For small cabin aircraft, the distance is from the co*ckpit firewall to the aft bulkhead. Height and width are the maximum within that cabin space. Cabin Volume is the interior volume, with headliner in place, without chairs or other furnishings.
•
Maximum Payload is the maximum zero fuel weight minus the basic operating weight.
Performance Range: • Ferry Range - is the maximum IFR range of the aircraft with the maximum fuel on board and no passenger seats occupied. This uses the NBAA IFR alternate fuel reserve calculation for a 200 N.Mi. alternate. This is used for jet and turboprop aircraft.
Seats Executive: This is the typical crew and passenger seating commonly used on the aircraft. This is not the maximum certificated seats of the aircraft. These numbers may vary for different operations (Corporate, Commercial, EMS, etc.).
Cruise Speed: (Knots True Air Speed - KTAS) Max Cruise Speed - is the maximum cruise speed at maximum continuous power. This may also be commonly referred to as High Speed Cruise.
Weights: • Maximum Take-Off Weight is specified during aircraft certification.
Engines: The number of engines, manufacturer and model are shown.
68 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
SpecificationsC.qxp_PerfspecDecember06 19/02/2019 10:36 Page 1
NUMBER OF ENGINES
FERRY RANGE-nm (NBAA IFR FUEL RESERVES)
MAX PAYLOAD (lbs)
MAX TAKEOFF (lbs)
PASS SEATS TYPICAL
5.4
5.5
13.6
285
6
12500
1435
850
461
2
FJ44-2A
BEECHCRAFT PREMIER IA
5.4
5.5
13.6
285
6
12500
1400
850
454
2
FJ44-2A
BEECHCRAFT BEECHJET 400A
4.8
4.9
15.6
305
7
16100
2085
1180
458
2
JT15D-5
BEECHCRAFT HAWKER 400XP
4.75
4.92
15.5
305
8
16300
2015
1180
450
2
JT15D-5R
BEECHCRAFT HAWKER 400XPR
4.75
4.92
15.5
305
8
16300
2100
1313
447
2
FJ44-4A-32
BOMBARDIER LEARJET 40
4.92
5.12
17.67
369
6
20350
2282
1573
465
2
TFE 731-20AR
BOMBARDIER LEARJET 40XR
4.92
5.12
17.67
369
6
21000
2051
1778
465
2
TFE 731-20BR
BOMBARDIER LEARJET 45
4.92
5.12
19.75
415
8
20500
2110
1423
465
2
TFE 731-20AR
BOMBARDIER LEARJET 45XR
4.92
5.12
19.75
415
8
21500
1875
1685
465
2
TFE 731-20BR
CESSNA CITATION MUSTANG
4.5
4.58
9.8
163
4
8645
1200
718
340
2
PW615F
CESSNA CITATION M2
4.75
4.83
11
201
6
10700
1400
694
404
2
FJ44-1AP
CESSNA CITATION BRAVO
4.7
4.8
15.75
292
7
14800
1925
1290
405
2
PW530A
CESSNA CITATION ENCORE
4.75
4.83
17.33
314
7
16630
2075
1410
430
2
PW535A
CESSNA CITATION ENCORE+
4.75
4.83
17.33
314
7
16830
2390
1494
430
2
PW535B
CESSNA CITATION CJ1
4.75
4.83
11
201
5
10600
1350
775
381
2
FJ44-1A
CESSNA CITATION CJ1+
4.75
4.83
11
201
5
10700
1365
895
389
2
FJ44-1AP
CESSNA CITATION CJ2
4.75
4.83
13.58
248
6
12375
1400
1075
413
2
FJ44-2C
ENGINE MODEL
BEECHCRAFT PREMIER I
MAX SPEED (ktas)
CABIN WIDTH (ft)
CABIN VOLUME (Cuft)
CABIN HEIGHT (ft)
CABIN LENGTH (ft)
AVBUYER.com
!
Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.
www.AVBUYER.com
AVBUYER MAGAZINE ❘ VOL 23 Issue 3 2019 ❘
69
SpecificationsC.qxp_PerfspecDecember06 19/02/2019 10:36 Page 2
ENGINE MODEL
NUMBER OF ENGINES
MAX SPEED (ktas)
FERRY RANGE-nm
(NBAA IFR FUEL RESERVES)
MAX PAYLOAD (lbs)
MAX TAKEOFF (lbs)
PASS SEATS TYPICAL
CABIN VOLUME (Cuft)
CABIN LENGTH (ft)
AVBUYER.com
CABIN WIDTH (ft)
CABIN HEIGHT (ft)
SPECIFICATIONS - LIGHT JETS
CESSNA CITATION CJ2+
4.75
4.83
13.58
248
6
12500
1720
1194
413
2
FJ44-3A-24
CESSNA CITATION CJ3
4.75
4.83
15.67
286
6
13870
1925
1374
417
2
FJ44-3A
CESSNA CITATION CJ3+
4.75
4.83
15.67
286
6
13870
1925
1374
417
2
FJ44-3A
CESSNA CITATION CJ4
4.75
4.83
17.3
293
7
17110
2150
1667
454
2
FJ44-4A
CIRRUS VISION SF50
4.07
5.08
11.48
170
4
6000
1200
796
300
1
FJ33-5A
EMBRAER PHENOM 100
4.92
5.08
11
212
5
10472
1312
915
390
2
PW617F-E
EMBRAER PHENOM 100E
4.94
5.08
11
212
5
10582
1334
917
390
2
PW617F-E
EMBRAER PHENOM 100EV
4.94
5.08
11
212
5
10582
1334
1178
406
2
PW617F1-E
EMBRAER PHENOM 300
4.92
5.08
17.17
324
7
17968
2216
1811
444
2
PW535E
EMBRAER PHENOM 300E
4.92
5.08
17.17
324
7
17968
2216
1811
444
2
PW535E
HONDA AIRCRAFT HA-420 HONDAJET
4.8
5
12.1
-
5
10600
1521
792
422
2
HF120
NEXTANT AEROSPACE 400XT
4.75
4.92
15.5
305
7
16300
2469
1852
471
2
FJ44-3AP
NEXTANT AEROSPACE 400XTi
4.75
4.92
15.5
305
7
16300
2050
1527
460
2
FJ44-3AP
ONE AVIATION ECLIPSE 500
4.16
4.66
7.6
109
3
6000
1088
574
371
2
PW610F-A
ONE AVIATION TOTAL ECLIPSE 500
4.16
4.66
7.6
109
3
6000
1088
574
371
2
PW610F-A
ONE AVIATION ECLIPSE 550
4.16
4.66
7.6
109
3
6000
1088
574
371
2
PW610F-A
PILATUS PC-24
5.08
5.58
23
501
6
17968
2522
1525
440
2
FJ44-4A
Airplane performance and specification numbers can vary depending on how they are measured. Please note this data should be used as a guide only, and not the basis on which buying decisions are taken.
70 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
www.AVBUYER.com
❚
Gulfstream G450 2008 SERIAL NUMBER 4108
Highly Equipped and Turn-Key Condition! You can have it all in a G450, and Serial Number 4108 is just that aircraft! The list of desirable features starts with excellent pedigree: Two U.S. owners since new New paint in 2017 Full maintenance programs Enhanced Nav Package FANS 1A/CPDLC and ADS-B Out Synthetic Vision BBML Global WiFi Satellite TV And much more! We invite you to see for yourself why Serial Number 4108 is everything you want in a G450! Contact Jim Donath at Donath Aircraft Services.
773.935.9871 | [emailprotected] | DonathAircraft.com
AirCompAnalysis March18.qxp_ACAn 19/02/2019 10:57 Page 1
JET COMPARISON
Aircraft Comparative Analysis Nextant 400XTi versus Cessna Citation CJ4
In this month’s jets comparison, Mike Chase provides information on the remanufactured Nextant 400XTi and Cessna Citation CJ4 Light Jet…
O
ver the following paragraphs we’ll consider key productivity parameters (including payload, range, speed and cabin size) and current market values for the Nextant 400XTi and Citation CJ4. Which is the better option for a buyer to take – remanufactured or new? This is one of the questions that we will consider...
About the Competitors
In October 2011 Nextant Aerospace received FAA certification for the 400XT – a remanufacturing program for the Beechjet 400A and Hawker 400XP that offered significant improvements in performance, range and fuel efficiency over the original models. The Nextant 400XTi was subsequently introduced by Nextant and is an upgraded version of the original 400XT featuring a new cabin design, new acoustic insulation, raked winglets and auto throttle capability. Meanwhile, the Cessna Citation CJ4 is the largest, longest-range CJ family member, adding an additional two feet on the CJ3 cabin. Introduced back in 2006,
72 ❘ Vol 23 Issue 3 2019 ❘ AVBUYER MAGAZINE
and in production since 2010, the CJ4 introduced a different wing design than earlier models in its family, adopting the moderately swept wing design of the Citation Sovereign.
Fleet Data
As of this writing, there are 34 Nextant 400XTi jets in operation, 27 of which are wholly-owned. One is in shared ownership and six are in fractional ownership programs. There are an additional 28 Nextant 400XTs in operation. In December 2018, North America had the largest Nextant 400XTi fleet percentage (68%), followed by Europe (29%). Together, they accounted for a combined 97% of the total fleet. By comparison, there are 285 Citation CJ4 jets in operation. A vast percentage of those (275) are whollyowned, while ten are in shared ownership (none are fractionally owned). North America was home to the largest Citation CJ4 fleet percentage (80%), as of December 2018, followed by Europe (13%), accounting for a combined 93% of the total fleet. www.AVBUYER.com
w
AirCompAnalysis March18.qxp_ACAn 19/02/2019 10:57 Page 2
www.AVBUYER.com
HOW MANY
EXECUTIVE
SEATS
NEXTANT
7
400XTi
(Manufactured between 2011-Present)
$3.3 Million
vs.
(2014 Model)
CESSNA
7
Citation CJ4
(Manufactured between 2010-Present)
$6.7 Million (2014 Model)
WHICH OF THESE LIGHT jets WILL COME OUT ON TOP HOW MUCH
RUNWAY DO I NEED?
(Balanced field length, ft)
4,030
Nextant 400XTi
500
1000
1500
HOW FAR
Cessna Citation CJ4
1,927
2500
CAN WE TAKE?
(Lbs)
2,050
Nextant 400XTi Cessna Citation CJ4
2,150
HOW MANY
HOW MANY
OPERATION?
EACH MONTH?
UNITS IN 34
280
Sources used: Conklin & de Decker, JETNET, Vref, Chase & Associates
www.AVBUYER.com
3000
3500
4000
4500
WHAT’S THE
HOW MUCH
(Nautical Miles. 4 Pax) 1,801
5,920
2000
PAYLOAD
CAN WE GO?
Nextant 400XTi
3,350
Cessna Citation CJ4
NEW/USED SOLD
LONG RANGE CRUISING SPEED?
(Knots)
Nextant 400XTi
406 380
Cessna Citation CJ4
WHAT’S THE
COST PER HOUR?
