• NAFA Administrator posted an article
    AMSTAT releases interim business aircraft resale market data showing the short‐term impact of COVID‐ see more

    Tinton Falls, NJ – June 17, 2020: According to AMSTAT and partner VANGAS Aviation Services, the leader in business aviation analytics the average and median values of pre‐owned business aircraft have fallen between 10% and 15% so far during the COVID‐19 crisis, with some individual make model markets seeing decreases in excess of 20%. The update shows these declines in value in all segments since early April with some evidence of a recent slowing of this decline in some market segments.

    The report also shows that inventories have increased since mid‐March, but the increase is a continuation of a pre‐existing trend. The inventory of Business Jets was up 1.6% between January and March and then up 4.2% since mid‐March. The inventory of Business Turboprops was largely unchanged between January and March and up 2.8% from March to May. Inventory levels remain below 2016 levels and significantly below 2009 levels.

    Further, the report shows that resale retail transactions for Business Jets were ahead of 2019 levels in January and February but were down 23% in March YoY and down 40% in April YoY. Resale retail transactions for Turboprops were at or ahead of 2019 levels in January and February but were down 27% in March YoY and down 40% in April YoY.

    Andrew Young, AMSTAT General Manager said: “It remains to be seen whether the trends of the last few months will continue long‐term. However, whether the result of a COVID‐19 driven reduction in travel or the logistical issues surrounding getting deals done under quarantine, or both, there was a year‐over‐year reduction in resale transactions in March and April this year. Further, the analytics clearly show a reduction in estimated aircraft values”. He added, “what is also interesting is that inventories, while up, are not indicating a panic to sell and levels remain below recent highs seen in 2017. If inventory levels remain relatively low and interest in business aviation materializes as an alternative to commercial travel in parallel with an economic recovery, then we might expect to see a significant uptick in transaction activity leading to a recovery in aircraft values in the coming months”.

    For a full copy of the report go to:

    About the AMSTAT Aircraft Valuation Tool

    The AMSTAT Aircraft Valuation Tool (AVT) is fully integrated into the AMSTAT Premier service and calculates objective statistically generated serial number specific estimated values for business aircraft in seconds.

    About AMSTAT, Inc.

    AMSTAT is the leading provider of market research information and services to the corporate aviation industry. Founded in 1982, and based in Tinton Falls, NJ, AMSTAT introduced the concept of providing researched information to corporate aviation professionals. AMSTAT’s mission is to provide timely, accurate, and objective market information to its customers. AMSTAT products and services provide aviation market and statistical information that generates revenue and delivers competitive advantage to brokers/dealers, finance companies, fractional providers, and suppliers of aircraft parts and services.

    Information: Andrew Young, AMSTAT GM, 732‐530‐6400 x147,

  • NAFA Administrator posted an article
    Adam Meredith, of AOPA Finance, addresses commonly asked questions on aircraft ownership. see more

    NAFA member, Adam Meredith, President of AOPA Finance, addresses commonly asked questions on aircraft ownership during this difficult time.  Purchasing an aircraft can be a challenging process under normal circumstances, but can be even more difficult to navigate during market volatility.

    Question: With the current market volatility, do you find that lenders are tightening or loosening their credit requirements?

    Answer: We have definitely seen some that are tightening credit. Specifically, some lenders are requesting copies of bank/investment statements that are within the last couple of days (vs. 30 days, under regular times). Given stock market volatility this isn’t too surprising. Also, we’ve seen some lenders that are being more cautious lending to individuals with direct financial exposure to COVID-19 (i.e. service industry companies not deemed essential).

    Question: What advice are you giving to members who were currently looking to purchase before all of the shelter in place orders? Should we continue our search or place our search on hold until all of this blows over?

    If you’re personally at high risk (financially or otherwise) to COVID-19, you’d be well advised to pause the purchase process. However, for everyone else, I’d encourage you to keep looking and work with sellers to create a plan for how to push through the closing process. For advice on guidance with shelter in place requirements, reach out to our trusted legal staff if you’re a legal services plan participant. If not, reach out to our Pilot Information Center to get the latest guidance.

    This article was originally published by AOPA Finance on April 23, 2020.

  • NAFA Administrator posted an article
    Filing Aircraft Registration Documents With The FAA Registry During The COVID-19 Pandemic: What You see more

    NAFA member, Greg Reigel, Partner with Shackelford, Bowen, McKinley & Norton, LLP, discusses filing documents with the FAA Registry during the COVID-19 Pandemic.

    In another instance of a “new-normal” resulting from COVID-19, the window at the FAA Registry, where real-time filing of aircraft registration documents used to occur, has closed.  Although the FAA Registry is still open (for now), it has implemented new procedures for filing of aircraft registration documents.  Three options are now available for recording documents:

    Document Drop Bins.

    The FAA has placed two bins outside the Public Documents room.   One bin will be marked “Priority” and one bin will be for “Normal” processing (i.e. not priority).  The FAA will retrieve documents from the Priority Bin every hour. It will retrieve documents submitted for normal processing twice a day.

    Documents are filed when they are placed in one of the bins. However, will not be possible to obtain an immediate filing time for the documents as was the case in the past.  Actual filing times will only be available after the documents are indexed in, scanned and available for viewing online.  It is presently unclear how long that process will take.

    E-Mail Filing To An Electronic Portal.

    The FAA has a new e-mail filing process available subject to a number of limitations. Submitted documents must be digitally signed (i.e. Docusign, Adobe Sign, etc.) and each document must be 20 pages or less. Only one aircraft may be submitted in each e-mail and filing fees must be pre-paid at

    After submission, FAA will send an e-mail acknowledging receipt.  However, documents will be processed during normal business hours with filing times available the same as when documents are filed via the bins.

    Filing Via Mail.

    As has always been the case, documents can still be filed via U.S. Mail, FedEx and UPS. And similar to the bin and e-mail filing, actual filing times will only be available once the documents are processed and in the FAA Registry’s system.

    These new processes will also impact timing for receiving a “fly-wire” and for receiving Form 135 needed to accomplish International Registry filings.  But it is unclear how much longer it will take to receive these back from the FAA.


    The good news:  The FAA Registry is still open and processing aircraft registration documents (for now). The bad news:  These updated procedures will result in some delays in closing transactions, and a little less certainty regarding when documents were actually “filed” by the FAA. For example, in a transaction transferring risk of loss at the time of filing, that could present a problem.

    Parties to aircraft transactions should review their documents to determine whether they are consistent with the new procedures. If they aren’t, parties should amend as needed.

    This article was originally published by Shackelford, Bowen, McKinley & Norton, LLP. on March 23, 2020.

  • NAFA Administrator posted an article
    How To Shield Bizjet Owners from Virus Claims see more

    NAFA member, David G. Mayer, Partner with Shackelford, Bowen, McKinley & Norton, LLP, discusses ways for bizjet owners to mitigate risk of COVID-19-related claims.

    The sudden onslaught of the contagious and deadly Covid-19 pandemic delivered a severe blow to business aviation’s global flight activity and paused (but did not derail) preowned business jet retail sale and lease transactions. The pandemic has already changed so much in our lives that, for now, no one can envision what a “new normal” will look like for business aviation.

    Regardless of what happens, today, as governments ease shelter at home restrictions, business aircraft owners and lessees, along with their managers and Part 135 operators (together, owners), face an imperative to protect anyone from Covid-19 who might come in physical contact with, or travel on, the operator’s business aircraft.

    These people include owners and their families, other passengers, crew, independent contractors, employees, and ground support personnel (together, affected individuals). The imperative applies both to Part 91 and 135 operations. If owners do not meet this obligation head-on, it seems inevitable that affected individuals will make negligence claims against owners for exposure to, and illness or death from, Covid-19.


    Owners should use this period of slower flight and market activity to take the following three actions that might limit the chances for affected individuals to contract Covid-19 and blunt any incentive to make damage claims against owners for their alleged negligence:

    First, develop comprehensive business aircraft protocols for each business aircraft to create a healthy and safe environment inside of, and close to, the aircraft.

    Second, request Covid-19 waivers and indemnities from affected individuals to mitigate the risk of Covid-19-related liability claims based on negligence or other legal theories.

    Finally, confirm whether the owner carries, or the owner can buy, liability insurance coverage that will respond to such liability claims.

    Covid-19 Negligence Explained

    As a general legal principle, business aircraft owners may be negligent and liable for money damages if the owner breaches its duty of reasonable care to maintain a safe and healthy environment for affected individuals inside of, or close to, their aircraft.

    Broadly speaking, the duty occurs because an owner can reasonably foresee that Covid-19 might live in and on business aircraft, be transmitted inside or close to the aircraft by one person to another, or from personal items such as luggage to an affected individual. If negligence is proven, a judge or jury can then award significant money damages in favor of the affected individual or his/her estate.

    Importantly, the affected individual who contracts Covid-19 must prove that the breach of the owner’s duty of reasonable care is the “proximate cause” of the Covid-19 illness or death. That is, the affected individual must provide evidence of an almost indisputable connection between his or her Covid-19 condition and the exposure to Covid-19 inside of, or close to, the business aircraft.

    As such, causation is likely to be the most difficult element to prove, especially given the challenges in tracing from the affected individual to the aircraft environment as the only possible source of the affected individual’s infection. However, no owner should rely on the difficulty of proving causation as an excuse to ignore safeguards and fail to develop a high-quality aircraft protocol.


    As noted above, owners can, and immediately should, develop and enforce a comprehensive protocol designed to protect any affected individual who is inside of, or might come in physical contact with, a business aircraft, its cargo, and any other affected individual. A protocol, in this context, refers to written standards, practices, and behaviors established by owners to ensure that the environment inside of, and close to, their business aircraft is free of the Covid-19 infection.

    Although important, cleaning and disinfecting an aircraft by itself does not constitute an aircraft protocol. Owners should include many other elements in a protocol such as screening each affected individual, safely bag or wrap potentially infected luggage, test passengers for Covid-19 before the flight, and provide each passenger with personal hygiene supplies and masks that must be used inside the aircraft.

    To help them meticulously design and write, as well as implement and update, a Covid-19 health and safety protocol, owners should hire appropriate medical, cleaning, and safety experts to contribute relevant parts of, and comment on, the entire protocol. Some managers and Part 135 operators have already taken steps to create all or part of a protocol or a rough equivalent, which is positive.

    Further, owners should conduct periodic audits to confirm strict compliance with the protocols. They should also retain records on, and immediately rectify any shortfalls from, the protocol implementation such as recording dates and times of disinfecting in and around an aircraft. These steps might entail some additional effort, but they should help mount a good defense to negligence claims.

    In all situations, owners and affected individuals should limit travel with operators that have not developed and comply with a protocol on every flight. After all, only one mistake or negligent act or omission can lead to tragic consequences involving Covid-19.


    In writing and updating the protocols, owners, experts, and their lawyers should study pertinent information from, among others, the World Health Organization, Centers for Disease Control, FAA, EBAA, and NATA. Notably, NBAA recently published a comprehensive resource that owners can use as the foundation of a quality aircraft protocol.

    Aircraft manufacturers should be able and willing to provide consulting services and aircraft products, including fresh air intake and filtering systems, to mitigate safety risks and negligence claims.


    Liability insurance might cover Covid-19 negligence claims relating to business aircraft. Owners and their aviation insurance experts or lawyers should examine the wording in their liability insurance policies to determine whether any coverage exists against these claims. Some, but not all policies, contain explicit exclusions for viruses, which means Covid-19 claims might not be covered.

    Prospects to buy such insurance now are dismal, but large accounts might have a shot. If there is potential coverage, the insurer might have a “duty to defend” the insured, at the insurer’s expense, and therefore engage counsel to defend the insured against the Covid-19 claims.


    Each owner should ask any affected individual, before a flight, for a written, signed waiver of claims for Covid-19 illness or death. Separately, managers and Part 135 operators might consider asking for waivers and indemnities from owners for damages to furniture and hard surfaces in the aircraft allegedly caused by disinfecting chemicals used in or on the aircraft to rid the areas of Covid-19. Courts generally enforce properly drafted waivers and indemnities, but applicable laws might alter this outcome.


    Covid-19 affects all of us in different ways. In business aviation, it seems urgent that, as governments lift stay-at-home restrictions, owners develop and implement comprehensive Covid-19 health and safety protocols for their business aircraft, secure waivers, and indemnities and maintain appropriate liability insurance.

    Properly structured, a protocol can protect the lives of business aircraft owners and their families, crews, independent contractors, employees, and ground support personnel from illness and death caused by Covid-19. Protocols can boost confidence in traveling by business aircraft and mitigate the risk of complex, expensive, and lengthy liability lawsuits against the business aircraft owners, managers, and Part 135 operators.

    The right choice seems obvious, but the end of this healthcare crisis and recovery of business aviation remains far from certain.

    Author note: “This blog is not intended to create or constitute, nor does it create or constitute, an attorney-client or any other legal relationship. No statement in this communication constitutes legal advice nor should any communication herein be construed, relied upon, or interpreted as legal advice. This communication is for general information purposes only regarding recent legal developments of interest, and is not a substitute for legal counsel on any subject matter. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal advice on the particular facts and circumstances affecting that reader.”

    This article was originally published by AINonline on May 15, 2020.

  • NAFA Administrator posted an article
    Charter Operations Feel the Impact of COVID-19 see more

    NAFA member, NBAA, shares their latest episode of NBAA Flight Plan regarding the impact COVID-19 has had on charter operations. 

    With business aviation flight operations across our nation and around the globe idled by the COVID-19 pandemic, what options are available to help operators weather this storm and when might we finally see our industry recover? “International travel is absolutely critical, particularly for long-haul aircraft,” notes aviation attorney David Mayer, a partner in the law firm Shackelford, Bowen, McKinley & Norton, LLP. “When you see evidence that, as a whole population globally we have confidence in travel across borders and across oceans, I think you will see business aviation respond fairly promptly.”

    In this episode of NBAA Flight Plan, host Rob Finfrock speaks with:

    • David Mayer, aviation attorney and partner at the law firm of Shackelford, Bowen, McKinley & Norton, LLP
    • W. Ashley Smith, CAM, president of aircraft charter, maintenance and aeromedical provider Jet Logistics

    Listen to Podcast Now

    This article was originally published by NBAA on May 4, 2020.

  • NAFA Administrator posted an article
    How is the Coronavirus Affecting the Closing Process for Aircraft? see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses the challenges of aircraft closings during the Coronavirus pandemic.

    Unlike real estate, where the exchanged property does not move, the challenge with closing on an aircraft is that eventually it must be flown to its new home. It’s a rare transaction where buyers purchase an airplane from their home airfield. Therefore, how to legally move the aircraft is one major concern for buyers during the coronavirus pandemic. Another is how to get a pre-buy inspection done.

    First, there is the sticky problem of getting an aircraft inspected. It’s not clear whether maintenance and repair shops are currently open to perform pre-buy inspections, or whether their employees can even report to work. Some states have not deemed aviation techs “essential.” What jobs are deemed “essential,” how, and by whom such job designations will be enforced remains up in the air. Even if aviation techs are, parts suppliers might not be. That means needed parts may not get delivered. In normal times, a closing might take 30 days. In these abnormal times, plan on the process stretching to 45 days or more.

    Beyond that, is it legal for a ferry pilot or the new owner to fly an airplane from the airport where it is hangared to its new home base?  State laws vary on the subject. How complicated it will be to transport the aircraft may depend on factors like the route of flight and the number of states involved. Is the airplane going from California to Maine? Or from Wisconsin to Indiana? One has to ask oneself, “Am I going to have a challenge from this state?” Other questions follow, including, “Which governing body would enforce such a challenge — state or federal?” “Is it within FAA or state jurisdiction?” None of that is easy to navigate.

    If you can imagine the difficulty of flying from one European country to another and having to deal with the balkanized ATC system there, then you have some idea of the current complexity surrounding moving an aircraft across state lines during this pandemic. At AOPA Aviation Finance, (“AAF”), our advice is to call AOPA’s Legal Services to get better clarity on your specific situation.

    That is a great benefit of AOPA, having multiple resources all in one place. This complex situation is the perfect time to tap into them.

    Great advice. Great rates. From helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263), or click here to request a quote.

    This article was originally published by AOPA Aviation Finance Company on April 30, 2020.

  • Tracey Cheek posted an article
    Used Aircraft Maintenance Analysis – March 2020 see more

    NAFA member, Tony Kioussis, President of Asset Insight, shares the March 2020 Used Aircraft Maintenance Analysis. 

    During March, Asset Insight’s tracked fleet of 134 fixed-wing models and 2,218 aircraft listed for sale identified a 1.2% inventory fleet increase over February’s figure, for a year-to-date (YTD) increase of 1.6%.

    Concurrently, the available inventory’s maintenance status posted a 12-month best (highest) Quality Rating, keeping the fleet within the ‘Excellent’ range, virtually unchanged (at 5.297) compared with February’s 5.295, on a scale of -2.500 to 10.000.

    March’s Aircraft Value Trends

    While the average Ask Price for aircraft in the tracked fleet decreased a bit, the posted figure was only $20k below the 12-month high figure achieved in February, and only one group experienced a decrease.

    • Large Jets: Ask Prices remained virtually unchanged, increasing a nominal 0.1%.
    • Medium Jets: The only group to post a value loss, Medium Jets decreased 6.7%.
    • Small Jets: Increased 3.0%.
    • Turboprops: Rose 1.7%.

    March’s Fleet for Sale Trends

    The total number of used aircraft listed for sale increased 1.2% in March, and 1.6% for Q1 2020. That translated into a tracked inventory increase of 26 units in March and 36 units for all of Q1. Individual group figures broke down as follows.

    • Large Jet Inventory: Increased 1.3% in March (+6 units) and 7.9% during Q1 (+34 units)
    • Medium Jet Inventory: Rose 1.8% (+11 units) for the month, but down 4.9% for Q1 (-32 units)
    • Small Jet Inventory: Increased 0.4% (+3 units) in March and 7.5% (+48 units) YTD
    • Turboprop Inventory: Increased 1.4% (+6 units) for the month, but down 3.1% for Q1 (-14 units).

    March’s Maintenance Exposure Trends

    Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) increased (worsened) 5.5% for the month and 4.0% during Q1. Individual results were as follows:

    • Large Jets: Worsened (increased) by 5.9% for the month and 6.3% during Q1.
    • Medium Jets: Improved (decreased) 0.6% in March and 4.1% for Q1.
    • Small Jets: Worsened (increased) 14.5% to post the group’s worst (highest) 12-month figure, while also increasing 22.3% during Q1.
    • Turboprops: Worsened (increased) by 1.3% in March, but improved by 11.7% YTD.

    March’s ETP Ratio Trend

    The fleet’s ETP Ratio worsened (increased) in pretty dramatic fashion in March, virtually erasing any previous improvement to post a figure of 71.1% (versus February’s 65.4% and the 64.8% it registered at Year-End 2019).

    The ETP Ratio calculates an aircraft's Maintenance Exposure as it relates to the Ask Price. This is achieved by dividing an aircraft's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by the aircraft's Ask Price.

    As the ETP Ratio decreases, the asset's value increases (in relation to the aircraft's price). ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s Days on the Market (DoM) increase, in many cases by more than 30%.

    During Q1 2020, aircraft whose ETP Ratio was 40% or greater were listed for sale nearly 68% longer than assets with an ETP Ratio below 40% (245 days versus 413 days). How did each group fare during March?

    • Turboprops: Continued to hold the top (best) spot by a wide margin posting the lowest ETP Ratio of 42.1% (the group’s third consecutive 12-month low/best figure).
    • Large Jets: Held on to second place at 64.7%.
    • Medium Jets: Kept their third position at 74.6%.
    • Small Jets: Posted the group’s 12-month worst (highest) figure of 90.2%.

    Excluding models whose ETP Ratio was over 200% during one of the previous two months (considered outliers), following is a breakdown of the business jet and turboprop models that fared the best and worst during March 2020.

    Asset Insight - March 2020 Most Improved Business Aircraft

    Most Improved Models

    All of the ‘Most Improved’ models posted a Maintenance Exposure decrease (improvement). While the Hawker 800A experienced an Ask Price decrease of $29,622 and the Dassault Falcon 900 saw no change in Ask Price, the remaining four models experienced price increases, as follows:

    • King Air B200 – Pre-2001 +$74,913
    • Gulfstream GV +$228,194
    • Hawker 800XP +$77,760
    • Hawker Beechjet 400A +$27,969

    Hawker 800A

    Since appearing at the bottom of January’s ‘Most Deteriorated’ list, the Hawker 800A claimed third place on February’s ‘Most Improved’ list, and leads the ‘Most Improved’ list for March.

    Two aircraft traded last month, and the 31 currently listed for sale equate to 13.7% of the active fleet. The latest fleet mix helped the model achieve its standing through a Maintenance Exposure decrease exceeding $243k (which overcame an Ask Price drop approaching $30k).

    The model’s 152.5% ETP Ratio is not going to magically spark additional buyer interest, but its improvement is notable, as is its ongoing market following.

    Dassault Falcon 900

    Second place goes to a model whose appearance was created through a 50% increase in available units for sale in March. That difference resulted in a decreased Maintenance Exposure of nearly $369k. With no change in the average Ask Price, the Falcon 900 earned its position on this list.

    Translation: Three aircraft are now listed for sale (as opposed to the two listed last month) and the recently-listed unit did not show an Ask Price. This should serve as proof that statistics can be misleading!

    The Falcon 900 has a strong following, though, and with an ETP Ratio below 45%, sellers should be able to locate interested buyers, even though the listed units represent 13% of the active fleet.

    King Air B200 (Pre-2001 Models)

    Third place goes to a model that recorded three transactions, one withdrawal, and four additions to the fleet for sale in March, lowering the Maintenance Exposure by nearly $48k and increasing the Ask Price by nearly $75k.

    The 43 units listed for sale offer a good selection for buyers while still representing only 5.5% of the active fleet, creating ample opportunities for sellers. Moreover, the model’s near 46% ETP Ratio is a testament to the following this >20 year-old aircraft continues to enjoy.

    Gulfstream GV

    Next on the ‘Most Improved’ list is an aircraft whose 19 sellers should have little problem locating interested buyers, considering listings represent 10% of the active fleet, and the Gulfstream GV’s ETP Ratio is below 30%. (Admittedly, the current pandemic may delay deal-making a bit.)

    One aircraft transaction was registered as we closed March, leading to a Maintenance Exposure decrease exceeding $556k that, along with an Ask Price increase of more than $228k, earned the model its ‘Most Improved’ ranking.

    Hawker 800XP

    Following the behavior of the Hawker 800A, the Hawker 800XP made the ‘Most Improved’ list thanks to a Maintenance Exposure decrease approaching $24k and an Ask Price increase nearing $78k. Four aircraft transactions were posted in March that, following some additions, a withdrawal and some other changes, meant 13.3% of the active fleet is currently listed for sale.

    The 800XP is sporting an ETP Ratio nearly half that of the 800A. Assuming an asset’s engines are enrolled on an Hourly Cost Maintenance Program, the model has sufficient following in the market for sellers to structure sensibly-priced transactions.

    Hawker Beechjet 400A

    Rounding out March’s ‘Most Improved’ list is the Beechjet 400A, an aircraft that occupied a place in the ‘Most Deteriorated’ rankings last month, and whose sellers may have a hard time convincing a limited pool of buyers that their aircraft is worthy of the price they seek.

    With 61 units, 22.6% of the active fleet, listed for sale, and aircraft age ranging from 17 to 30 years, differentiation is likely to focus heavily on price. The model’s 78.6% ETP Ratio was created through three sales last month, as well as one withdrawal from, plus six additions to the ‘for sale’ fleet.

    The revised inventory mix lowered Maintenance Exposure by over $20k while boosting Ask Price nearly $28k. Regrettably, with the current ETP Ratio most sellers are likely to find pricing discussions challenging.

    Asset Insight - March 2020 Most Deteriorated Business Aircraft

    Most Deteriorated Models

    All six models on March’s ‘Most Deteriorated’ list registered a Maintenance Exposure increase. The Bombardier Learjet 31A posted an Ask Price increase of $17,731, the Learjet 35A experienced no Ask Price change, and the remaining models underwent the following decreases:

    • Cessna Citation II -$4,444
    • Cessna Citation ISP -$20,015
    • Hawker Premier 1 -$13,183
    • Gulfstream GIV -$25,556

    Cessna Citation II

    March’s ‘Most Deteriorated’ model registered five transactions, but the 89 units currently listed for sale account for 17.5% of the active fleet, creating serious pricing challenges for sellers.

    The aircraft’s $241k Maintenance Exposure increase and Ask Price decrease are both symptomatic of the model’s 147.4% ETP Ratio. With aircraft age ranging from 25 to 42 years, sellers must rely on buyers seeking low pricing that addresses the very real probability they would become the aircraft’s final owner.

    Cessna Citation ISP

    The second ‘Most Deteriorated’ model this month is another member of the Citation family, except this one is older, since Citation ISPs range from 35 to 43 years of age. No transactions were noted in March, but three withdrawals from inventory left 17% of the active fleet (47 units) available for buyers focused on still-operable ‘antiques’.

    Surprisingly, the Citation ISP sports a lower ETP Ratio than the younger Citation II fleet. Nevertheless, the 126.1% Ratio (courtesy of a Maintenance Exposure increase approaching $176k and an Ask Price decrease exceeding $20k) offers buyers the opportunity to earn ‘final owner’ status with this model.

    Bombardier Learjet 31A

    The first of two Learjets on the ‘Most Deteriorated’ list this month posted no transactions in March, although one aircraft was withdrawn from inventory. At the last count, 38 Learjet 31As were listed for sale, representing 19.5% of the active fleet.

    These aircraft are now between 17 and 29 years of age, and while they are still quite productive assets, their 128.1% ETP Ratio is a testament to their challenging marketability.

    The Learjet 31A essentially earned its spot on this list through a Maintenance Exposure increase exceeding $246k, even though the aircraft actually posted an Ask Price increase. Whether or not the higher Ask Pricing can be achieved, especially at this challenging time, remains to be seen…

    Bombardier Learjet 36A

    The second Learjet on this list is a 27-44-year old model that also recorded no transactions during March, and no Ask Price change. (While statistically correct, this fact is also somewhat misleading as only one of the four listed units displays an Ask Price.)

    The aircraft earned its spot on this list thanks to a Maintenance Exposure figure approaching $210k. With its ETP Ratio exceeding 151%, this model is not readily marketable, although its operating capabilities are still quite impressive, by any standard.

    Beechcraft Premier 1

    No transactions were identified for the month of March, but the two inventory withdrawals and four additions created an availability of two dozen units, 20.2% of the active fleet. These assets are only aged between 15 and 19 years, but their ETP Ratio, which stood at nearly 90% during this latest analysis, negatively impacts their marketability.

    Maintenance Exposure approached $308k in March, while Ask Price dropped over $13k. Enrollment on an engine Hourly Cost Maintenance Program would lower the HCMP-Adjusted ETP Ratio, but that is not an effective differentiator for sellers, as most of these assets are enrolled on a program.

    Gulfstream GIV

    Rounding out our ‘Most Deteriorated’ list this month is a model whose ETP Ratio, quite frankly, surprised us. The GIV continues to have a respectable following. However, its ongoing Ask Price decreases (nearly $26k last month) and high Maintenance Exposure figure (over $563k in March) are clearly reflecting the aircraft’s 27-34 years of age.

    Two units transacted in March, one was withdrawn from inventory, and another was added to total 20 available units, equivalent to 11.6% of the active fleet.

    Here again, sellers whose aircraft engines are enrolled on an Hourly Cost Maintenance Program will see a lower HCMP-Adjusted ETP Ratio, but the figure will still be such that price is likely to be the transaction’s primary driver.

    The Seller’s Challenge

    It is important to understand that the ETP Ratio has more to do with buyer and seller dynamics than it does with either the asset’s accrued maintenance or its price. For any aircraft, maintenance can accrue only so far before work must be completed.

    But as an aircraft’s value decreases, there will come a point when the accrued maintenance figure equates to more than 40% of the aircraft’s ask price. When a prospective buyer adjusts their offer to address this accrued maintenance, the figure is all-too-often considered unacceptable to the seller and a deal is not reached.

    It is not until an aircraft undergoes some major maintenance that a seller is sufficiently motivated to accept a lower figure, or a buyer is willing to pay a higher price and the aircraft transacts, ultimately.

    A wise seller needs to consider the potential marketability impact early maintenance might have on their aircraft, as well as its enrollment on an Hourly Cost Maintenance Program where more than half of their model’s in-service fleet is enrolled on one.

    Sellers also need to carefully weigh any offer from a prospective buyer against the loss in value of their aircraft for sale as the asset spends more days on the market awaiting a better offer while simultaneously accruing a higher maintenance figure.

    More information from

    This Asset Insight report was originally published by AvBuyer on April 16, 2020.

  • Tracey Cheek posted an article
    Industry Leaders Praise Passage of More Relief Funding see more

    Industry groups welcomed U.S. congressional approval this week of additional funding for the Paycheck Protection Program (PPP), saying it provides the opportunity for much-needed relief for small aviation businesses. The nearly $500 billion measure—which included more than $300 billion to replenish the depleted PPP fund with $60 billion set aside for small lenders—passed the House yesterday, following Senate passage on Tuesday.

    “We are very pleased to see Congress respond to the continuing, highly challenging needs of many small businesses and their employees,” said NBAA president and CEO Ed Bolen.

    Noting the majority of Helicopter Association International’s membership comprises small businesses, HAI president and CEO James Viola added, “Like most small businesses around the world, they are suffering from the effects of the economic disruption caused by the Covid-19 pandemic.”

    The business and general aviation community have been working to ensure Congress understands the harm the Covid-19 pandemic is having on the industry and continues to seek further assistance as Congress considers future measures.

    This is particularly true as smaller carriers are still struggling to obtain resources for that and funding that was specifically set aside for aviation. “We are hearing stories of difficulties with the PPP and the Air Carrier Worker Support Program,” NATA president and CEO Timothy Obitts said, adding the organization is continuing to educate and push for access to all available relief programs.

    “As Congress considers additional legislation related to the Covid-19 pandemic, NATA has already begun discussions with key policymakers regarding the need for additional support for our industry,” said Jonathon Freye, NATA vice president of government and public affairs.

    Alluding to a possible fifth economic stimulus package, HAI pointed to “much-needed additional funding,” and said it would continue to impress upon Congress the importance of keeping the industry viable.

    This article was originally published by AINonline on April 24, 2020.

  • Tracey Cheek posted an article
    What Lies Ahead for Business Aviation After COVID-19? see more

    NAFA member, NBAA, shares their recent NBAA Flight Plan podcast regarding the future of business aviation post COVID-19. 

    Business aviation has never faced a situation like the COVID-19 pandemic, and it’s no secret that both U.S. domestic and international business aviation operations have fallen dramatically over the past few months. How long should we expect these challenges to last, and what lies ahead for our industry? “We’ve been trained as a society to stay away from other people in a very short time,” notes industry analyst Brian Foley. “So I could make the case that business aviation will come back a little sooner than the airlines, and certainly those in the industry will take the demand as it comes and do what they can with it.”

    In this episode of NBAA Flight Plan, host Rob Finfrock speaks with:

    • Brian Foley, president of aerospace research and guidance firm Brian Foley Associates and contributor to
    • Doug Gollan, contributor and editor in chief of

    Listen to the podcast here.  

    This article was originally published by NBAA on April 20, 2020.

  • Tracey Cheek posted an article
    Patience Is Key for Successful Aircraft Transactions During COVID-19 see more

    NAFA member, NBAA, shares a review of their recent webinar about processing aircraft transaction documents during the COVID-19 pandemic.

    The FAA Aircraft Registration Branch continues to process aircraft transaction documents during the COVID-19 pandemic; however, the process has been slowed. In a recent NBAA News Hour webinar, experts discussed how to successfully complete aircraft transactions during these challenging times.


    Peter Korns, NBAA’s senior manager of tax, operations and workforce engagement, moderated the webinar. Scott McCreary – shareholder and aviation group leader of McAfee & Taft – and Chris Younger – principal at GKG Law, P.C., – provided expert guidance.

    The FAA aircraft registry maintains information on more than 300,000 civil aircraft to facilitate aviation safety, security and commerce. The registry accepts and processes documents to register and operate aircraft in the United States, as well as to “perfect” or validate interests in an aircraft, explained Younger. The registry typically accepts filings by mail or commercial delivery services, via email or in person at the FAA Public Documents Room in Oklahoma City, OK.

    Several new, temporary policies are in place to mitigate concerns about COVID-19 exposure and ensure appropriate social-distancing practices for filers and registry employees. The Public Documents Room is currently closed for direct filing, although parties may leave documents in a nearby bin for regular pickup by registry staff. All mailed documents are subject to a 72-hour quarantine period, which means those documents will not be processed or file stamped until at least 72 hours following receipt or acceptance. Filers should be aware that due to this quarantine, the accepted date of the documents is not the same as the file stamp date.

    Fortunately, the FAA has expanded the ability to file documents by email. McCreary summarized new email filing procedures, including a requirement for documents to be digitally executed through a digital signature program, such as DocuSign. As is the case for mailing documents, an email receipt message does not constitute the date of formal filing with the FAA.

    Younger added that import and export processes can also be more complicated as a result of the COVID-19 pandemic. For example, imports from Mexico are subject to a 72-hour quarantine.

    The FAA Reauthorization Act of 2018 designated registry employees as “excepted” or “essential employees” in the event of a government shutdown or emergency furlough.

    Although it’s unclear if the legislative language is broad enough to cover the COVID-19 crisis, the experts see no signs at this time of a disruption of operations or possible closure of the registry. However, the experts caution this is a fluid situation, and there is no projected timeframe to return to normal registry and transactions procedures.

    “In business aviation, there’s always an urgency to get transactions closed,” said Younger. “Now there’s an increased tension because the process is slower to be more protective of FAA employees.”

    Aircraft transactions can still be completed, but patience is key.

    This webinar, titled “FAA Transaction Guidance During the COVID-19 Crisis,” is just one in a series of educational opportunities NBAA has planned for the coming weeks. Learn more, register for upcoming webinars and view recordings of past webinars on the NBAA News Hour site.

    This article was originally published by NBAA on April 13, 2020.

  • Tracey Cheek posted an article
    Bizav Traffic Stays Down as Charter Demand Stabilizes see more

    NAFA shares AIN's continuing coverage of the impact of the coronavirus on aviation.

    Business aviation traffic volumes have continued to fall this week in the wake Covid-19-driven reductions in economic activity and travel restrictions. As of this morning, the continually updated traffic data published by aviation services group Argus showed the number of flights in North America and Europe to be 65 percent lower this month versus April 2019. Year-to-date activity is about 12 percent less than at this time last year, according to the Argus TraqPak data.

    Data analyst WingX reported business aviation departures in the U.S. dropped 60 percent year-over-year in the first week of this month. Elaborating on the data, the company said that reductions were “consistently acute” across most types of operators and that the “busiest” aircraft types being the Cessna Caravan and the Pilatus PC-12 turboprops. It said that airports in Florida were somewhat less affected than those in other parts of the U.S.

    On April 6, WingX released data showing that in the first five days of April, just over 18,000 business aviation sectors were flown globally. This was around 50,000 less than the same period in 2019.

    Meanwhile, online charter marketplace Avinode today reported that forward-looking demand in the U.S. and Europe, as measured by trip requests, has flattened out somewhat since the “drastic decline” seen following an initial spike around mid-March. The company described this trend as “the temporary normal.”

    In Asia, demand for charter flights for the next seven days showed an upward trend that was larger than “the initial Covid-19 spike” when the virus outbreak was sweeping through the region in January. However, this uptick now appears to be reversing. Arrival and departure demand for Africa has been up in recent days.

    Overall trip requests for the next couple of months show demand in April to be 14 percent lower than in April 2019 and 38 percent lower for May. “There is still lots of time to recover summer demand, when restrictions allow,” concluded Harry Clarke, Avinode’s head of insight.

    This article was originally published by AIN on April 9, 2020.

  • Tracey Cheek posted an article
    State of general aviation with AOPA President Mark Baker see more

    NAFA member, Mark Baker, President of AOPA, discusses the latest on AOPA's advocacy efforts to protect general aviation pilots and community airports during the coronavirus pandemic. 

    AOPA President Mark Baker hosted a recent livestream on YouTube to bring you the latest updates on our efforts to obtain relief for pilots on several certification deadlines, secure funding for airports, maintain access to airspace, and more.

    Mark took questions and answered them during the live discussion moderated by AOPA Senior Vice President of Marketing Jiri Marousek.

    In case you missed it, listen to the livestream now: State of general aviation with AOPA President Mark Baker.

    This livestream was posted by AOPA on April 22, 2020.

  • Tracey Cheek posted an article
    GA Airports in ‘Survival Mode,’ but Ready to Support Business Aviation see more

    NAFA member, NBAA, shares its recent webinar moderated by Alex Gertsen, NBAA Director for Airports and Ground Infrastructure, regarding the challenges general aviation airports are facing during the COVID-19 pandemic.

    The latest NBAA News Hour webinar, held April 17, addressed the challenges facing general aviation (GA) airports, as traffic levels have continued to plummet during the COVID-19 pandemic, and the situations operators may encounter when flying to fields that may have reduced hours or services in the current environment.

    Moderated by Alex Gertsen, NBAA director for airports and ground infrastructure, the webinar included participants from the FAA, as well as several directors of medium and large GA facilities around the country. The webinar served as a platform allowing NBAA to bring the regulator, airports and operators together in a virtual, interactive forum.


    In general, the airport directors noted that even while traffic levels have fallen drastically – to “near-zero” flight activity in some cases – GA airports remain staffed and open as essential facilities and continue to be safety-focused and ready to provide services to business aviation customers.

    The airport directors spoke about special COVID-19 related procedures in place – often due to governors’ executive orders in various states – and how those are being executed and enforced. Participants also looked ahead to the post-health emergency world and the expectations for GA flights under a post-pandemic “new normal.”

    For its part, the FAA addressed its efforts to keep airports open and operational as states and municipalities attempt to set their own policies. The agency emphasized that aircraft operators should be aware of specific restrictions, but that municipalities do not have jurisdiction to limit flights from hot-spot areas, and that federally obligated airports are required to receive approval from the FAA before implementing operational restrictions.

    The webinar also explored the details of the general aviation airport grants being distributed through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to facilities often struggling with steep revenue losses. The directors noted that, in receiving the relief funding, their emphasis is on maintaining airport businesses in “survival mode” so they are best prepared for a return to profitability in a post-COVID environment.

    While FAA funding from the CARES Act is being distributed swiftly, the process requires a significant amount of time at the airport level, and in many cases city government or airport board approvals are also required, especially if changes to leases and other contracts are necessary. The airport managers suggested that business aviation operators rely on the federal aid available directly to them as a first resort, and on direct airport assistance as a final option.

    Webinar participants had an opportunity to share their first-hand perspectives. Most flight departments and operators have ceased flying for the moment and are doing what they can to maintain currency and keep their aircraft mission-ready for when flight operations resume. In the meantime, participants noted, maintenance and flight training continue.

    This webinar, titled “Airports in the COVID-19 Environment, and What You Should Expect,” is just one in a series of educational opportunities NBAA has planned for the coming weeks. Learn more, register for upcoming webinars and view recordings of past webinars on the NBAA News Hour site.

    This article was published by NBAA on April 18, 2020.

  • Tracey Cheek posted an article
    U.S. Transportation Secretary Elaine L. Chao Announces $10 Billion in Relief for America’s Airports see more

    WASHINGTON – U.S. Transportation Secretary Elaine L. Chao today announced the award of approximately $10 billion to commercial and general aviation airports from the Trump Administration's newly created Coronavirus Aid, Relief, and Economic Security (CARES) Act Airport Grant Program. The effort will provide unprecedented and immediate relief to American families, workers, and businesses.  

    “This $10 billion in emergency resources will help fund the continued operations of our nation’s airports during this crisis and save workers’ jobs,” said U.S. Transportation Secretary Elaine L. Chao. 

    In less than two weeks since the bill was signed into law, the U.S. Department of Transportation’s Federal Aviation Administration (FAA) is ready to deliver CARES Act grants to eligible airports throughout the nation. The grants will provide economic relief to airports around the country affected by the COVID-19 public health emergency.

    “Thank you to the dedicated men and women from the FAA’s Office of Airports for creating an entirely new program in record time to assist airport sponsors in desperate need of these funds,” said FAA Administrator Steve Dickson.  

    This funding will support continuing operations and replace lost revenue resulting from the sharp decline in passenger traffic and other airport business due to the COVID-19 public health emergency. The funds are available for airport capital expenditures, airport operating expenses including payroll and utilities, and airport debt payments.

    The FAA encourages airport sponsors to spend the grants funds immediately to help minimize any adverse impact from the current public health emergency. Airport sponsors should work with their local FAA Office of Airports field office on the application and grant-agreement process. 

    The CARES Act also provides funds to increase the Federal share to 100 percent for grants awarded under the fiscal year 2020 appropriations for Airport Improvement Program (AIP) and Supplemental Discretionary grants. Under normal circumstances, AIP grant recipients contribute a matching percentage of the project costs. Providing this additional funding and eliminating the local share will allow critical safety and capacity projects to continue as planned regardless of airport sponsors’ current financial circumstances.

    The FAA will use a streamlined application and grant-agreement process to make this funding immediately available for critical airport needs. The funds will be available as soon as the airport sponsor executes a grant agreement. 

    The CARES Act provides new funds distributed by various formulas for all airports that are part of the national airport system. This includes all commercial service airports, all reliever airports and some public-owned general aviation airports. 

    There is additional program information on the CARES Act website.

    This release was originally published by the U.S. Department of Transportation on April 14, 2020.

  • Tracey Cheek posted an article
    NBAA Welcomes Treasury’s COVID-19 Accommodations for Charter Companies see more

    Washington, DC, April 10, 2020 – Today, the National Business Aviation Association (NBAA) applauded guidance from the Department of the Treasury, ensuring that qualifying passenger air carriers – including many small charter operators in NBAA’s membership – have more flexible access to the Payroll Support Program contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

    Through this program, air carriers can apply for support to continue paying employees during the COVID-19 pandemic.

    During the debate on the CARES Act, NBAA led a significant effort to ensure that general aviation air carriers, such as FAR Part 135 operators, were eligible for this relief. NBAA’s effort led to the inclusion of general aviation in crucial provisions of the CARES Act.

    The new guidance provided by the Treasury Department recognizes the critical role general aviation air carriers play in the nation’s transportation system, and states that operators receiving less than $100 million of payroll assistance are not required to provide financial instruments to the government.

    Air carriers receiving payroll support must meet minimum service requirements, limit any share buybacks, follow executive compensation limits and refrain from involuntary furloughs; however, the provision of financial instruments to the government as appropriate compensation is no longer required.

    In a March 31 letter to Secretary Mnuchin, NBAA explained that initial guidance on the payroll support program presented challenges for general aviation businesses, as specific requirements were structured for the major scheduled airlines. Review the letter to Secretary Mnuchin. The additional guidance issued today responds directly to these concerns, and provides essential flexibility for general aviation air carriers seeking payroll support.

    The Treasury Department noted that the majority of payroll support requests received from small air carriers are for less than $10 million, and that funds will be available promptly upon approval of their applications.

    “We appreciate the significant efforts of Treasury Secretary Mnuchin and Transportation Secretary Chao to understand the unique financial challenges of general aviation air carriers and provide additional flexibility while ensuring that taxpayers are properly compensated,” said NBAA President & CEO Ed Bolen. “These companies are often small and mid-sized businesses, which support jobs and economic investment in their local communities.”

    Contact: Dan Hubbard, 202-783-9360,

    # # #

    Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The association represents more than 11,000 companies and professionals and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition (NBAA-BACE), the world’s largest civil aviation trade show. Learn more about NBAA at

    Members of the media may receive NBAA Press Releases immediately via email. To subscribe to the NBAA Press Release email list, submit the online form.

    This release was originally published by NBAA on April 10, 2020.