aviation

  • Tracey Cheek posted an article
    Painting the Financial Picture see more

    NAFA member Adam Meredith, President of AOPA Aviation Finance Company, shares what items you need when preparing to finance an aircraft. 

    "You don't really need all of this financial information, do you?" It’s a question often asked by AOPA Finance clients. Yes, yes we do. If you want the lowest rate, the most competitive structuring, the least amount down, and the lowest payment, an exhaustive analysis of your credit worthiness must be made.

    Financial Documentation

    IRS Schedule Cs or Schedule Es are not enough. While they may indicate whether the ownership structure has any pass-through income on an individual's tax return, the description of that pass-through income is summarized as a line item or two. Likewise, K-1s only indicate percentages of a shareholder’s income and liabilities. Line items and percentages don’t tell the whole story. Full tax returns do.

    Global Cash Flow

    Your tax summaries may show cash going from one related entity to another. But are you actually taking from the “left pocket and putting it in the right pocket?” If so, that isn't real money, is it? The lender will net that out of your “global cash flow.” Global cash flow—also known as a Consolidated Statement of Cash Flows—is a listing of all the various entities in which a person has ownership and what their net cash flow from all the entities is.

    And then there’s the global debt schedule.

    Global Debt Schedule

    What is a global debt schedule? It’s a comprehensive list of all the ownership entities. It’s a listing of the actual total debts of each entity in which the individual has ownership. It details what the total amount owed is, and to whom. What the monthly payments are. How much is interest versus how much is principal. It also includes maturity dates for all debt.

    Depending upon what one’s business relationship is with his partners, the lender may require additional documents to help fill in holes in the financial picture. Those might include hypothecation, subordination, or even side agreements.  A hypothecation agreement could be submitted from the controlling party acknowledging the CEO emeritus is entering into a financial relationship.

    Speaking of partners, imagine a borrower has two partners and he owns one-third of the business. Some lenders may require the other two partners’ to be party to the transaction.

    For some, that’s just too much. They’re only going to have the loan for three years so the “pain-in-the-neck” factor is not worth their time and effort. Other folks just don't want to disclose all their financial information for personal reasons. Still others have obligations with lenders elsewhere that restrict them from guaranteeing debt or have covenants in place from other business debt. For these individuals, a collateral-based loan might be the more appropriate option. The trade-off is simplicity for a little bit higher interest rate.

    Collateral Based Loans

    A collateral-based deal might proceed more quickly from initial inquiry to funding but it does come with a different paperwork burden. Even so, the process is usually far less onerous. Banks will conduct an exhaustive search on the quality of the individual as well as on the aircraft. For the individual, they want to know if this person has filed bankruptcy. Do they have tax liens against them? Are there pending lawsuits on them, for any reason? A person applying for a collateral-based loan should be crystal clear how good or bad their character looks on paper.

    Every time an AOPA Finance advisor must request additional information because our client’s paperwork is incomplete adds additional stress to the process. Bottom line-- there are no shortcuts. A transparent, painless credit deal requires in-depth financial paperwork.

    This article was originally published by AOPA Aviation Finance Company on June 12, 2019.

  • Tracey Cheek posted an article
    Finding the Right Lender to Finance a Private Aircraft Purchase see more

    NAFA member, Lee Rohde, President and CEO of Essex Aviation, discusses finding the right lender when financing a private jet purchase.

    It is a truth universally acknowledged that private aircraft are expensive. Even those exploring part-time ownership options enter their search knowing that it will require a significant upfront investment. But for frequent fliers with the means to afford it, private aviation is the obvious choice.

    Before taking the first steps toward private aircraft ownership, potential buyers should take the time to carefully evaluate all of the financing options available to them.

    Something to Consider

    Before deciding which financing option to pursue, buyers should consider whether they want to contact lenders directly — a process that typically involves researching lenders, requesting and reviewing lender proposals and assembling a loan due diligence package — or to work with a third-party aviation consultant or aircraft finance broker. Although most high-net-worth individuals have a finance team capable of handling these responsibilities, individuals on the mid-to-lower end of the market might find it useful to partner with an aviation consultant or aircraft finance broker because they have the necessary industry relationships to simplify the financing process and to connect with the most appropriate lender candidates depending upon the buyer’s needs and requirements.

    Finding a Lender

    When seeking financing for a private aircraft purchase, buyers have two main options: traditional banks and non-banking aircraft financing lenders. In most cases, high-net-worth individuals will elect to first work with their existing bank — that way, the buyer can take advantage of their existing business relationship with the bank, which already has a comprehensive understanding of their financial situation.

    If a buyer’s bank is unable to finance the purchase, the next option would be to contact one of the major financial institutions that has an established aircraft finance group. These financial institutions manage a large aircraft portfolio and would be willing to work with a buyer to finance the aircraft even if the buyer does not have an existing relationship with the institution.

    The benefit to this option is that the bank already has an established aircraft financing team capable of working with the buyer to obtain the necessary information to evaluate the loan. 

    The downside to this option is that the buyer will need to prepare and provide the bank with a full package of information on the aircraft, as well as a full set of financial documents and disclosures for the lender to provide a formal proposal. 

    The third option is to finance the aircraft purchase through a non-banking aviation lender. There are decidedly fewer non-banking aviation lenders in the market than there are banking lenders. Currently, there are a few major non-bank lenders in the market that actively provide aircraft financing. These lenders will usually raise their capital in equity markets to support portfolio growth. When choosing a non-banking aviation lender, be sure to contact a private aviation consultant or aircraft finance broker to confirm the lender’s position in the market and whether they’re a viable option to consider.  

    Bear in mind that all aircraft lenders have portfolio parameters and requirements that they must follow and, in some cases, are limited by the age and types of aircraft they can finance. First and foremost, all lenders evaluate potential borrowers based on the “5 Cs” of credit: 

    • Character: What is their reputation as a borrower? Is their credit history stable?

    • Capital: What is the borrower’s net worth? What type of capital assets do they own?

    • Capacity: Does the borrower have sufficient cash flow to repay the loan? What is their debt-to-income ratio?

    • Collateral: What assets can the borrower pledge to secure the loan?

    • Conditions: How does the borrower intend to use the aircraft? What is the current state of the economy? Is there pending legislation that would affect this loan?

    Note that all lenders use the same criteria to evaluate individual borrowers who are looking to purchase private aircraft for personal reasons as they do corporate borrowers — at the end of the day, credit is credit and collateral is collateral. In either case, the selected lender will have specific loan covenants that the buyer must be aware of. In some cases, the lender might require periodic reviews of the aircraft market value or third-party inspections to ensure that the aircraft is being properly utilized and maintained.

    Whether they work with their existing bank, an aircraft financing bank or a non-bank lender, buyers who are able to secure financing to purchase a private aircraft are opening the door to a world of luxury, comfort and convenience. And for those who are still interested in private aviation but want to avoid the extra legwork with financing, there are plenty of viable alternatives to outright ownership to explore. 

    This article was originally published by AvBuyer on August 23, 2019.

     

  • Tracey Cheek posted an article
    Will High Time Engines Complicate the Loan Process? see more

    NAFA member Adam Meredith, President of AOPA Aviation Finance Company, discusses finding the "perfect airplane" and the loan process.

    You’ve finally found the perfect airplane. It has no damage history, all of its logs, great avionics, and good interior. The high time engines are the only downside. You’re not worried because the plane is flown often and mechanically is in great shape. When you present it to your lender, though, the lender balks. Why?

    Lenders tend to keep the worst-case scenario in mind. For them, that case is if they might have to repossess the aircraft with it needing an overhaul. To make it marketable again, the lender would have to use their own money for an overhaul. To counter that, most lenders are going to specify you have enough liquidity to cover an overhaul from Day 1.

    Some lenders may require an overhaul as part of the purchase. Others may require a "hold back" amount of money as a precursor to financing. That "hold back" amount must be sufficient to cover overhaul costs upon taking delivery. Because lenders recognize that the likelihood of other expenses popping up at any time with an airplane is high, they may also require an additional cushion of liquidity as a condition of completing the deal. Some lenders will simply bow out of the transaction entirely.

    For many pilots, having to fold an overhaul into the purchase price looks like a pricing discount opportunity. The reality is aviation market appraisers have already figured that into the equation. For example, if two identical aircraft are for sale and one has a fresh overhaul while the other is at TBO, the airplane with the fresh engines will have a market value of at least $30,000 more per engine over the TBO plane. 

    We've had clients who felt their ability to potentially liquidate an asset to cover an overhaul should have had that counted in their favor. Lenders tend to disagree with that assessment for two reasons. First, offering to liquidate an asset against an overhaul changes the global financial picture of the borrower. Keeping in mind that every aspect of one's financial picture is interconnected; it becomes easy to see why changing one part may have a negative domino effect overall.

    Second, where borrowers tend to feel eternally confident about their ability to quickly liquidate any asset they own, lenders are more sanguine about the reality of asset disposal. Financers can draw from plenty of historical precedent where circumstances changed for the worse, and the asset a borrower thought would be easy to sell to cover the unforeseen event fetched far less than expected or didn't sell at all. 

    The flip side of that coin are two specific instances where an airplane owner whose engines are at TBO might easily obtain an overhaul loan. In the case of an aircraft that is free and clear, it’s generally possible to get virtually 100% financing. The second situation is when a loan is still outstanding. If the amount requested--plus the remaining principal--adds up to less than 80% loan-to-value (LTV), a lender will typically refinance. In that case, the owner may not have to go more than 20% out of pocket to pay for the overhaul. 

    Lenders who provide this type of refinancing find it attractive for another reason. Often a pilot will include an avionics or interior upgrade, thus turning a simple engine overhaul into a whole aircraft refurbishment. The one caveat is, at least on the piston side, the relatively small dollar amount of a refinance loan for an overhaul is low, so it's not necessarily attractive to a lot of lenders.

    This article was originally published by AOPA Aviation Finance Company on July 10, 2019.

  • Tracey Cheek posted an article
    Aircraft Management Arrangements and the Flight Department Company Trap see more

    NAFA member, Ryan Swirsky, Associate with GKG Law, discusses aircraft management arrangements and their consequences.

    Aircraft owners frequently arrange for aircraft management companies to provide full-service management of their aircraft for aircraft operations under Federal Aviation Regulations (“FAR”) Part 91. However, when the aircraft management company contracts with the aircraft owner, there is the so-called “Flight Department Company Trap” that can result in serious negative consequences.

    Some background will be helpful.  It is common for a special purpose entity (“SPE”), typically wholly owned by an individual or his or her operating company, to take title to the aircraft.  The aircraft management company usually prepares its management agreement for the SPE to sign.  This commonly occurs because the management company rarely has any information related to ownership structuring issues.

    FAR 91.501(b)(5) allows aircraft operations to be conducted under FAR Part 91 when the carriage of officials, employees, guests, and property of a company on an airplane operated by that company is within the scope of, and incidental to, the business of the company (other than transportation by air) and no charge, assessment, or fee is made for the carriage in excess of the cost of owning, operating, and maintaining the airplane.  This generally means that flights must be in furtherance of a primary business activity of the company.  For example, flying executives of a company that sells widgets to a manufacturing facility where the widgets are made to oversee production would be within the scope of, and incidental to, the primary business of the company.

    Essentially, the Flight Department Company Trap is a situation where the SPE operates its aircraft illegally because stricter FAR are applicable to the SPE’s aircraft operations, but those stricter rules are not followed because the SPE operates the flights solely under FAR Part 91.  The primary activity of an SPE would be transportation by air, as there is no other primary business activity being conducted by the SPE (hence leading to the “Flight Department Company” description).  Therefore, the SPE will be unable to meet the requirements of FAR 91.501(b)(5).  Further, under FAR Part 91, the aircraft operator is not permitted to receive compensation of any kind, except under certain limited exceptions.  Capital contributions by an individual or by his or her operating company to the SPE (which would typically be the only way to fund aircraft operations, as the SPE’s only asset is the aircraft) are deemed to be compensation.

    With the structure where the SPE enters into the management agreement, the Federal Aviation Administration (“FAA”) would likely view the SPE as providing air transportation services for compensation to the owner of the SPE.  The fact that the SPE may be wholly owned by the recipient of such transportation services, or disregarded for federal income tax purposes, is irrelevant.

    Fortunately, aircraft owners can still engage aircraft management companies for assistance operating flights under FAR Part 91 if structured correctly.  Typically, the structure would entail the SPE “dry” leasing the aircraft (i.e. – lease the aircraft without crew) to an individual or his or her operating business, and the individual or business would enter into the aircraft management agreement.  That individual or business would then pay the aircraft management company, and the individual or business would be deemed the operator of those flights by the FAA.  Ideally, the SPE would not be involved in any cashflow with respect to the aircraft operating budget and would instead just have cashflow related income from the dry lease.

    While, from a practical perspective, it may seem like there is not much difference between the two structures (after all, the same ultimate individual or business is flying on the aircraft, and paying the costs for the flights), use of the incorrect structure can result in serious negative consequences.  Those consequences can include violation of insurance policies (and potential denial of coverage by the insurance company in the event of an accident), violation of loan covenants, civil fine exposure by the FAA to the SPE, penalties for the pilots of the aircraft (such as civil fines and license suspension), and federal excise tax liability.  Further, liability protection planning may be potentially undermined due to a piercing of the entity veil argument (due to the principal activity of the SPE being to conduct unlawful aircraft operations).  It is also more likely than not that this structure will undermine typical state sales and use tax planning.

    Aircraft ownership and operation is a complex topic that requires consideration of multiple, often competing, factors.  GKG Law’s business aviation attorneys have marshaled extensive knowledge of federal aviation, tax and regulatory issues, and we are one of the leading practices in the country primarily devoted to business aviation law.  For more information on this topic or other business aviation related needs, please contact Ryan Swirsky (rswirsky@gkglaw.com or 202.342.5282).

    This article was originally published by GKG Law on September 9, 2019.

  • Tracey Cheek posted an article
    David Norton, with Shackelford, Bowen, McKinley & Norton, LLP, discusses ADS-B Out & RVSM airspace. see more

    NAFA member, David Norton, Partner with Shackelford, Bowen, McKinley & Norton, LLP, discusses ADS-B Out and RVSM airspace. 

    The FAA just made your life a little easier. As of January 22, if your aircraft is properly equipped with ADS-B Out, you are automatically authorized to fly in domestic RVSM airspace.

    What Does That Mean?  

    A key air traffic control function is to keep aircraft safely separated. A basic way of doing so is to have aircraft fly at different altitudes. But this works only if everyone’s aircraft altimeter – the instrument that tells you your altitude – is accurate. Altimeters originally were very accurate at lower altitudes; less so the higher you flew. So the norm was for air traffic control (ATC) to instruct different aircraft to fly at specific altitudes that were at least 1,000 feet apart from each other when flying below 28,000 feet, and at least 2,000 feet apart when flying above 28,000 feet. 

    That would ensure enough of a safety buffer between what the altimeter was saying and what the aircraft’s actual altitude might be, to be sure two airplanes were not inadvertently flying at the same altitude (even if their instruments said they were 2,000 feet apart) when above 28,000 feet. But flying above 28,000 feet, where half as much airspace is available, typically is where you want your jet aircraft to be in order to maximize air speed and fuel efficiency.

    By the early 2000s, technology had improved to the point that ATC could begin to use only a 1,000 foot separation above 28,000 feet (thus doubling the airspace available to jet aircraft), but this would work only if all aircraft in that airspace had the new, more accurate technology. The FAA therefore issued a rule stating that if an operator wanted to fly in this newly “reduced vertical separation minimum” (RVSM) airspace, that is, the airspace above 28,000 feet and below 43,000 feet, then specific permission was needed.  

    If the operator demonstrated an ability to meet all applicable technical requirements, the FAA would grant a “letter of authorization” (LOA). Periodically, the operator would have to fly over specific ground stations able to measure the actual altitude of the aircraft, to confirm that the technology was actually working. Unfortunately, the ongoing problem has been that obtaining these LOAs can be extremely difficult and time consuming, and you can’t cruise in RVSM airspace until you have one. 

    During the last ten years, however, two key things have happened. First, most of today’s aircraft meet all of the original RVSM requirements. Second has been the simultaneous development of a much larger, more comprehensive set of technologies to significantly improve the overall safety and efficiency of the U.S. air traffic control system. 

    Key to this effort is “Automatic Dependent Surveillance-Broadcast Out” (ADS-B Out), which is much more accurate than ground-based radar, and which allows the FAA to track very accurately the aircraft’s actual position, altitude, velocity, identification, etc. – in real time. Federal Aviation Regulation (FAR) 91.225 governing ADS-B Out equipment and use requires that all aircraft operating in U.S. airspace have a certified GPS position source teamed with a transponder that is capable of automatically transmitting data from the aircraft to the ATC without input from the pilot. ADS-B also gives pilots immediate access to air traffic and weather services.

    To its great credit, the FAA realized that, as aircraft operators install this new ADS-B Out technology, it can safely and automatically grant permission to those operators to fly in domestic RVSM airspace. This saves both the FAA and each operator an enormous amount of time and energy, reducing paperwork and processing requirements, while maintaining a higher level of safety, better situational awareness, and more efficient, direct routing. 

    The new RVSM rule is a further great incentive to encourage you to install ADS-B Out in your aircraft before the January 1, 2020 deadline.

    This article was originally published by Shackelford, Bowen, McKinley & Norton, LLP on March 11, 2019.

  • Tracey Cheek posted an article
    How Long Should You Keep Your Business Jet? see more

    NAFA member, David Wyndham, Vice President with Conklin & de Decker, discusses your plan on how long you should keep your business jet.  

    When buying a business jet, it’s important to have an idea of how long you will own the aircraft. But where do you begin your analysis? 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 well-structured 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?

    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 well-served 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.

    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 cockpit’ 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 five-to-seven years and some who keep an aircraft 20 years or longer.

    This article was originally published by AvBuyer on March 6, 2019.

  • Tracey Cheek posted an article
    Financing An Aircraft Before It's Moved To The U.S. With FAA Registration see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, answers your questions about loans for engine replacements and aircraft financing.

    Q: We are looking for financing options to purchase a pressurized Baron that is currently based and registered in Canada. I am writing to ask if you’d be willing to finance this aircraft before it is moved and transferred to the US with FAA registration?

    A: For aircraft being imported from Canada our lenders will require that the deregistration from Transport Canada and new FAA registration be completed prior to releasing funds to the seller. In most cases lenders are able to position funds in escrow while the import is completed. Imports from Canada typically only take a couple days. Give us a call to discuss further. We can also help you set up escrow with our AOPA Strategic Partner, Aero-Space Reports.

    Q: I own my aircraft outright. Do you provide loans for engine replacements?

    A: Yes, like avionics upgrades, our lenders will finance up to 85% of the aircraft value with an overhauled engine. Having no debt on the aircraft potentially allows for the lender to finance the full cost of the overhaul. Call us today so we can get you started on the application and approval.

    This article was originally published by AOPA Aviation Finance Company on July 30, 2019.

  • Tracey Cheek posted an article
    Using Digital Signatures in Aircraft Title & Registration see more

    NAFA member, Debbie Mercer-Erwin, President of Wright Brothers Aircraft Title, discusses the use of digital signatures in the aircraft title and registration process. 

    It is an exciting topic and a fundamental priority for Wright Brothers Aircraft Title (WBAT) to stay current with technology, especially when it has the potential to increase efficiency and security in our services, as well as help reduce time and cost in transactions for our clients. We are always looking forward to how our company could put certain applications to use, even Blockchain in Aviation Escrow Transactions. For this month’s topic, we don’t have to guess though. 

    One huge hindrance to efficiency in aircraft title registration is the paperwork involved – handling and distributing numerous paper documents between multiple parties, whether in the United States or internationally. Printing, signing, mailing – more than once if corrections are needed, let alone if the documents are lost in the mail altogether – is enormously time-consuming. 

    WBAT wanted to find a way to streamline certain processes and reduce our amount of paperwork, while maintaining a high level of security – to save time and money within our business and for our clients. We were immediately interested in the use of Digital Signatures, which is a specific implementation of an electronic signature (eSignature).

    The US Federal ESIGN Act defines an eSignature as “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record”. A Digital Signature takes this a bit further with the addition of encryption/decryption technology – securing the data associated with an electronically signed document and creating a robust audit trail.

    Digital Signatures have been used for electronically signing an array of documents – sales contracts, offer letters, lease agreements, liability waivers, financial documents, etc. – and are legally enforceable in most business transactions throughout most of the world.

    We needed to make sure this solution would work with multiple signers on complex documents though and be compliant with the Federal Aviation Authority guidelines, including their Notice of Policy Clarification for Acceptance of Documents With Digital Signatures (81 FR 23384), which requires Digital Signatures – traceable and digitally encrypted – not just eSignatures.

    DocuSign was the clear answer for our business – meeting some of the most stringent US, EU, and global security standards, and using the strongest data encryption technologies available. It also happens to be the leading eSignature brand, with the ability to:

    • Easily upload and send documents for signing
    • Sign at any time, on a wide variety of devices, from nearly anywhere
    • Check signing status and send reminders to keep things moving forward

    This software has enabled us to get agreements done faster with fewer errors, which directly translates to lower cost, for our business and our clients. We’ve accomplished this with using Digital Signatures mainly for Bill of Sale and Application for Registration documents, which directly benefits our buyers and sellers.

    There are more benefits on the horizon though with more widespread use of this technology. With more lenders in the industry using Digital Signatures, it might not even be necessary to presign a release of the lien. Instead, the involved parties would digitally sign at closing when money is distributed, reducing the risk for all. 

    We’re excited to see where this technology takes us and the aviation finance industry. In the meantime, we’re thrilled with the results we’ve already seen and the time and cost savings we’re able to pass down to our clients. 

    This article was originally published by Wright Brothers Aircraft Title on September 16, 2019.

     

  • Tracey Cheek posted an article
    JetTransactions joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. – July 2, 2018 – National Aircraft Finance Association (NAFA) is pleased to announce thatJetTransactions has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add JetTransactions to our association,” said Ford von Weise, President of NAFA.

    JetTransactions, a Bloomer deVere Dahlfors company, was founded by Mark Bloomer and Brant Dahlfors. Their worldwide team of aviation experts has established a strong reputation for perceptive market intelligence, trusted industry relationships, and personalized customer service. With a combined record of over 1600 new and pre-owned business jet transactions completed around the globe, JetTransactions maintains a prominent position in today’s evolving aviation marketplace.

    By providing a degree of expertise only gained through hundreds of business jet transactions and daily market research, JetTransactions is able to predict what fair market values really are. Their tested and proven documentation and procedures are an industry benchmark, assuring that during each step of the acquisition process, their clients’ interests are protected. 

    JetTransactions consults on transportation delivery options, fleet analysis, Aircraft Completion, Acceptance and Delivery, and operational start-up. With established industry relationships and expert brand awareness, JetTransactions recognizes the unique design, performance and value differences represented by the world’s top, business jet manufacturers.

    Much like NAFA, JetTransactions’ commitment and focus is driven by their client’s goals, welcoming the opportunity to deliver and expand their state-of-the-art portfolio. “We are proud to join the NAFA Network,” said Brant Dahlfors, Co-Founder of JetTransactions. “NAFA is a great resource to us, setting the right foundation to support our business jet transactions.” 

    For more information about JetTransactions, visit https://www.jettransactions.com/.

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

  • Tracey Cheek posted an article
    Seacoast Bank Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. – Aug. 1, 2018 – National Aircraft Finance Association (NAFA) is pleased to announce that Seacoast Bank has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Seacoast to our association,” said Ford von Weise, President of NAFA.

    Seacoast Bank is a 90 year old progressive Florida banking institution, offering a full suite of commercial and retail banking, residential and commercial mortgages, wealth management and trust services to individuals as well as small and mid-market businesses. Seacoast is also a seasoned aircraft lender, with over 70 years of combined aviation experience, and hundreds of aircraft financed.

    The Seacoast team helps their clients through aircraft selection, reduced cost operation, financing and loan closing. They are dedicated and passionate about aircraft and aircraft finance, and take pride in the timeliness of their transactions.

    Much like NAFA, Seacoast Bank is dedicated to promoting simplicity, convenience, expertise, community, and technology throughout the aviation finance industry. Seacoast and NAFA expand on the concept of knowledge through a connected community, benefiting the finance industry at large, and aviation lending specifically.

    For aircraft financing, call 954.767.1031.  For more information about Seacoast Bank, visit https://www.seacoastmarinefinance.net/https://www.seacoastbank.com/business-aircrafthttps://www.seacoastbank.com/.

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

    About Seacoast Banking Corporation of Florida (NASDAQ: SBCF):

    Seacoast Banking Corporation of Florida is one of the largest community [A3] banks headquartered in Florida with approximately $5.9 billion in assets and $4.7 billion in deposits as of June 30, 2018. The company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 49 traditional branches of its locally branded, wholly owned subsidiary bank, Seacoast Bank, and seven commercial banking centers. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the company is available at SeacoastBanking.com.

  • Tracey Cheek posted an article
    Echo Aviation Leasing Corporation Joins National Aircraft Finance Association. see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. -- Aug. 8, 2018 -- National Aircraft Finance Association (NAFA) is pleased to announce that Echo Aviation Leasing Corporation has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Echo Aviation to our association,” said Ford von Weise, President of NAFA.

    Echo Aviation Leasing Corporation is an aircraft finance origination and advisory company. Founded by aviation finance entrepreneurs Tony Bergeron and Frédéric Larue, the company’s mission is to become global leaders in business aviation finance, providing value-added strategies & financing solutions for clients who seek knowledgeable advice from industry experts. Echo offers true turnkey solutions, leveraging their industry expertise, relationships and reputation to provide the best options for aircraft owners and buyers, as well as lenders, lessors and investors. 

    “We are happy to join NAFA in this exciting time for the business aircraft industry and we look forward to developing relationships with other members to continue serving the aircraft owners and buyers who are the core of our industry,” said Frédéric Larue, Partner & Co-Founder of Echo.

    Much like NAFA, Echo Aviation Leasing Corporation is committed to making the aviation finance industry accessible with efficient service to the public, saving their clients time, energy and money in aircraft transactions. Echo and NAFA foster expanded industry expertise, valuable business and client relationships, and upholding reputable actions in every transaction.

    For more information about Echo Aviation Leasing Corporation, visit www.echoleasing.com/

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

  • Tracey Cheek posted an article
    CMG Capital joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

     

    EDGEWATER, Md. – Aug. 15, 2018 – National Aircraft Finance Association (NAFA) is pleased to announce that CMG Capital has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add CMG to our association,” said Ford von Weise, President of NAFA.

    Established in 2004, CMG Capital is a leading direct lender in Florida. The company is a highly reputable correspondent lender, licensed in Florida and Colorado, and backed by some of the largest wholesale institutions in the industry, as well as by capital from around the globe. They provide strategic airplane financing through their partnership with L & L International, LTD, a leading worldwide aircraft brokerage.

    “As our aircraft finance business has grown we realized the need to be a member of NAFA, opening new doors and opportunities for continued growth,” stated Marc Yahr, Vice President. CMG Capital blends experience, financial strength, integrity and resourcefulness in each transaction, whether their client is buying, leasing, or trading in an airplane. The company offers the financial resources to execute the deal with aircraft expertise, providing the highest level of customer service throughout the entire process of airplane acquisition, marketing, bridge financing, and sales. 

    With proven sales and acquisition strategies, sophisticated research tools and global capabilities, CMG navigates their clients’ complex aircraft transactions and operations, working closely with their partner, L & L International, LTD, - trained and experienced aviation consultants with a worldwide reputation for tending to all the details each transaction requires.

    Much like NAFA, CMG Capital understands that a successful transaction is one that satisfies both the seller and buyer, enabling their clients to acquire the airplane that meets their needs today and in the future and to sell under any market conditions. CMG and NAFA are dedicated to fostering the highest level of service throughout the aviation finance industry. 

    For more information about CMG Capital, visit https://www.cmgcapital.com/.

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

  • Tracey Cheek posted an article
    Elliott Aviation joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. – Aug. 21, 2018 – National Aircraft Finance Association (NAFA) is pleased to announce that Elliott Aviation has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Elliott to our association,” said Ford von Weise, President of NAFA.

    Elliott Aviation is a second-generation, family-owned business aviation company offering a diverse set of products and services including aircraft sales, avionics service & installations, aircraft maintenance, accessory repair & overhaul, paint & interior, and charter and aircraft management. Serving the business aviation industry nationally and internationally, they have facilities in Moline, IL, Des Moines, IA, and Minneapolis, MN.

    Elliott Aviation is an authorized service center for Phenom 100/300, Beechjet 400A/Hawker 400XP, King Air, Premier and TBM. They are a 145 repair station for Challenger 300/604, Hawker, Lear 40/45/60 and most Citation models. Their one-stop-shop in Moline, IL is an ISO 9001:2015 and AS9100D facility, ensuring the highest-level of quality standards and processes available. 

    Much like NAFA, Elliott’s goal is to provide unmatched quality, uncompromising integrity, and unbeatable customer service to their clients worldwide. Elliott Aviation and NAFA are committed to developing and delivering top-notch aviation finance solutions while building partnerships that last.

    For more information about Elliott Aviation, visit http://www.elliottaviation.com.

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

     

  • Tracey Cheek posted an article
    Lending Associates joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. – September 1, 2018 - National Aircraft Finance Association (NAFA) is pleased to announce that Lending Associates has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Lending Associates to our association,” said Ford von Weise, President of NAFA.

    Lending Associates is a provider of financing solutions for recreational and commercial aircraft acquisitions, working with a large network of quality lenders to ensure the most competitive loan rates. With years of experience, their team of experts are available to answer client questions throughout the process, helping consumers and industry professionals alike navigate today’s complex financing process. 

    Lending Associates matches the best lender to their clients’ specific financing needs, maintaining the utmost privacy and confidentiality. Their loan specialists work to design a financing program to best meet each unique situation. From the initial consultation to loan closing and ongoing servicing of the loan, the company is committed to the needs and goals of the client.

    "Lending Associates is proud to join NAFA in its efforts to support private aviation. From what I have seen, the members of this association have a passion for aviation and a history of moving the industry forward from all aspects, not just finance," stated Grant Smalling, President of Lending Associates. 

    Much like NAFA, Lending Associates is dedicated to fostering quality, professional service throughout the aviation finance industry. Lending Associates and NAFA promote excellence in aircraft finance through their commitment to the consumer’s goals. 

    For more information about Lending Associates, visit https://www.lending-associates.com/.

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

     

  • Tracey Cheek posted an article
    The Shiane Group joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE

    EDGEWATER, Md. – Sept. 13, 2018 – National Aircraft Finance Association (NAFA) is pleased to announce that The Shiane Group has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Shiane to our association,” said Ford von Weise, President of NAFA.

    Founded by Diane Levine-Wilson (founder of AMSTAT), The Shiane Group is a research and consulting services company, specializing in staff support consulting services for private aviation and luxury yachting. They also provide services to a broad range of businesses and charities, recognizing that various professional businesses require additional staffing support for special projects. Shiane builds their clients the team of employees required to cover research, marketing, operations, charter, and finance.

    The company also provides consultants on call, bringingtogether top independent experts in their fields to be their clients’ exclusive team, covering product development, management assessment, operations, finance, and charter. Beyond that, the Shiane Group offers enhanced research and marketing efforts to their clients with the company’s own team of experienced researchers. Shiane’s staffworks to execute a focused and cost effective plan, designing each project specifically to the needs of the client, with complete confidentiality. 

    “Diane is thrilled to be back in business with her daughter Shari Levine-Gagliardo who was with her at AMSTAT from the very beginning and was the driving force in maintaining their daily operations,” the company stated. Much like NAFA, The ShianeGroup’s leadership has a long, respected history in private aviation with a broad range of experience, promoting excellence throughout the industry. Shiane and NAFA are committed to fostering innovative new products and services, along with the education required for knowledgeable aviation industry members.

    For more information about The Shiane Group, visit https://www.theshianegroup.com/.

    About NAFA: 

    The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.