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  • Tracey Cheek posted an article
    FAA Relaunches ADS-B Rebate see more

    NAFA member, AOPA, discusses the FAA's relaunching of the ADS-B Rebate.

    The FAA on Oct. 12 reopened the $500 rebate program to support Automatic Dependent Surveillance-Broadcast (ADS-B) Out equipage. The program that had ended in September 2017 will now close Oct. 11, 2019. The agency is making $4.9 million available under the new rebate program, which will help to fund 9,792 new ADS-B Out installations.

    Beginning Jan. 2, 2020, aircraft flying in airspace where a transponder is necessary today will be required to be equipped with compliant ADS-B Out technology.

    In a statement provided to AOPA prior to release, FAA Acting Administrator Daniel Elwell said, “The ADS-B mandate is not going away. We are about 15 months from the January 1, 2020 deadline and now is the time for aircraft owners to equip.” 

    AOPA President Mark Baker said, “Pilots across America thank Acting Administrator Elwell for reopening the ADS-B out rebate that will make our skies safer and more efficient by incentivizing even more pilots to adopt the cutting-edge technology. This is the last opportunity for GA aircraft owners to take advantage of the FAA rebate in meeting the 2020 deadline.”

    The previous rebate program, which ran from Sept. 19, 2016, to Sept. 18, 2017, issued more than 10,000 rebate payments.

    Baker continued, “Over the past four years, AOPA has worked with the FAA and manufacturers through the Equip 2020 Working Group to develop lower cost solutions, especially for those flying legacy aircraft which often are not already equipped with a Wide Area Augmentation System GPS sensor, a necessary component for ADS-B Out. As a result of this collaboration, the cost of the equipment has dropped from more than $5,000 a few years ago to less than $2,000 today.”

    A number of avionics manufacturers have recently released lower cost products that meet compliance regulations The Appareo Stratus ESG and Garmin GTX 335 transponders are both $2,995 plus installation, and the Garmin GDL 82 universal access transceiver—which works in conjunction with an existing transponder—is $1,795 plus installation. uAvionix has promised lower cost products that replace aircraft navigation lights, including the skyBeacon, a UAT priced at $1,849 plus installation, which is eligible for installation on certified aircraft as well as experimental and light sport aircraft.

    As before, there are five steps aircraft owners should follow to meet the mandate and receive the $500 rebate. First, purchase the equipment and schedule installation. Second, get a Rebate Reservation Code by reserving a position online. Third, install the equipment. Fourth, conduct the required equipment performance validation flight and get an Incentive Code. Fifth, claim the $500 rebate online using the Rebate Reservation Code and Incentive Code.

    A number of aircraft owners have seen issues with the performance validation flight requirement of the original rebate program, and AOPA recommends a number of steps to minimize the odds of failing the validation flight.

    As with the earlier rebate program, the FAA reports that the new rebate program is available only to those who have not yet equipped their aircraft. Full rebate rules are available on the FAA website.

    To help determine which ADS-B products might be best for your aircraft, see the AOPA ADS-B Selection Tool online.

    This article was originally published by AOPA on October 12, 2018.

  • Tracey Cheek posted an article
    AMSTAT helping identify ADS-B compliant business aircraft globally. see more

    Tinton Falls, NJ – March 22, 2018:  AMSTAT, the leading provider of global business aircraft market, fleet and operator information, has worked with ADS-B Exchange, a co-op of ADS-B/Mode S/MLAT feeders from around the world to identify which business aircraft are or are not in compliance with the 2020 FAA ADS-B mandate.   

    The two companies cross referenced their respective global data sets and identified aircraft with or without ADS-B DO-260B (required to meet the 2020 mandate).  AMSTAT then added this data to its flagship service, AMSTAT Premier, for use by subscribers.  The data indicates that 39% of US based business jets and 38% of US based business turbo-props tracked by AMSTAT are currently known to be compliant.  The companies will continue to update this ADS-B information going forward.

    “The addition of this compliance data to the global fleet tracked in AMSTAT Premier will enable MROs offering ADS-B services to quickly identify which aircraft are not ADS-B compliant and market their services accordingly” said Andrew Young, AMSTAT General Manager.  He went on to add “AMSTAT remains committed to giving our clients a competitive advantage and this is another example of where our data is doing that.”

    For more information on using AMSTAT Premier to filter aircraft by ADS-B, please contact Jim Morford, AMSTAT Customer Service Manager on (US) 732-530-6400 x102 or jmorford@amstatcorp.com.  To subscribe to AMSTAT Premier, please contact Chris Skurat, AMSTAT Director of Sales on (US) 732-530-6400 x145 or chris@amstatcorp.com.

    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:

    AMSTAT, Inc.

    Andrew Young

    New Jersey: (732) 530-6400 x147

    andrew@amstatcorp.com

    www.amstatcorp.com

  • 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
    Ongoing Privacy Concerns with Implementation of ADS-B see more

    NAFA member, Amanda Applegate, Partner with Aerlex Law Group, discusses ADS-B and privacy concerns.

    ADS-B stands for Automatic Dependent Surveillance – Broadcast. By January 1, 2020, the majority of aircraft operating within the United States will be required to have ADS-B Out capabilities – and for aircraft registered internationally, some compliance deadlines are even sooner. Aircraft lacking ADS-B Out capabilities after that date will be effectively grounded or severely limited in where and how they can fly – perhaps for months! 

    The ADS-B Out requirements are just one element of the Federal Aviation Administration’s (FAA) Next Generation Air Transportation System (NextGen), which is being implemented in phases between 2012 and 2025. The purpose of NextGen is to transform America’s antiquated air traffic control (ATC) system from a radar-based system to a satellite based system. 

    What is ADS-B Out? ADS-B is technology that uses an airplane’s onboard global positioning system (GPS) to transmit the current position, speed, flight number and, most importantly, whether the airplane is climbing, descending or turning. The current radar-based system is not able to recognize and process information regarding climb, descent or turns. The transmitted information is sent to ATC and other aircraft. The current radar system sends updates once every two to twelve seconds. However, aircraft equipped with ADS-B Out capabilities transmit data every second. So, not only do the transmitted updates contain more information, including data on climb, descent and turns, but the updates also take place far more frequently. 

    Upgrading the system on an aircraft to incorporate ADS-B Out capabilities allows both ATC and pilots of other aircraft with ADS-B In to see the aircraft nearest to them with a graphical representation. While Traffic Alert and Collison Avoidance Systems (TCAS) currently provide some of this information, the additional data generated by ADS-B Out will make the information far more accurate. 

    With ADS-B Out equipped aircraft broadcasting not just their flight plans but their current position, speed, and flight number, aircraft can be tracked much easier. While there are many advantages to ADS-B Out, using this newly available information means it is easier for the world to know who is flying where. 

    There are two important steps that can be taken in order to minimize the public disclosure of aircraft locations:

    1. Ownership structure. Using options such as a finance lease, owner trust or sole purpose entity to hold title could help preserve anonymity if structured properly. 

    2. Registration Number Blocking. In 2013 the FAA issued a notice that allows owners and operators to limit the display of aircraft situation display to industry (ASDI) data. Owners and operators can request the blocking of the flight tracking information. While this does not include data now available because of ADS-B, it can help. The process for opting out of this flight data feed can be found here: 

    https://www.aerlex.com/protecting-your-privacy 

    While many associations, including National Business Aviation Association (NBAA) and the Aircraft Owners and Pilots Association (AOPA) have been vocal about the privacy concerns linked to ADS-B data, a solution is not known or planned for the immediate future. As a result, planning and implementing a favorable ownership structure at the time an aircraft is purchased has become more important, as well as taking advantage of registration number blocking made available by the FAA.

    Please contact Amanda Applegate at 310-392-5200 or aapplegate@aerlex.com.

    This article was originally published in BusinessAir Magazine, July 2019, Volume 29, No. 7., August 13, 2019. 

  • Tracey Cheek posted an article
    FAA Aircraft Registry Reaffirms its Position on Digital v. Electronic Signatures see more

    NAFA member, Scott McCreary, Vice President at McAfee & Taft, discusses the FAA's position on digital and electronic signatures.

    The United States Federal Aviation Administration (FAA) issued a Memorandum to the FAA Public Documents Room on September 9, 2019, reiterating the position that it would accept documents with digital signatures, but not accept documents executed with only the electronic signature methodology.  The Memorandum provides that “An electronic signature is a method of signing a document whereas a digital signature is the encryption/decryption technology of which an electronic signature is built. The digital signature secures the data associated with an electronically signed document.”

    The Memorandum confirms that in the past the FAA Aircraft Registry (Registry) may have unknowingly accepted documents with merely electronic signatures. The most common electronic signatures filed with the Registry were produced with DocuSign or Adobe, but the Memorandum confirms both programs have a digital signature option that could be utilized.

    By way of background, in May of 2016 the FAA issued a Notice of Policy Clarification for Acceptance of Documents With Digital Signatures (81 FR 23384). The Policy Clarification confirms that the Registry will accept printed duplicates of electronic documents that display legible, digital signatures that are filed in compliance with Parts 47 and 49 of the FAA Regulations (14 CFR parts 47 & 49). The Policy Clarification is clear that only digital signatures, as compared to the broader classification of electronic signatures, are acceptable. The Registry expands on the distinction between digital signatures and electronic signatures in its AFS-750 Change Bulletin 16-03, which further references FAA Order 1370.104, Digital Signature Policy.

    The Policy Clarification goes on to provide that "A legible and acceptable digital signature will have, at minimum, the following components: (1) Shows the name of the signer and is applied in a manner to execute or validate the document; (2) Includes the typed or printed name of the signer below or adjacent to the signature when the signature uses a digitized or scanned version of the signer’s hand scribed signature or the name is in a cursive font; (3) Shows the signer’s corporate, managerial, or partnership title as part of or adjacent to the digital signature when the signer is signing on behalf of an organization or legal entity; (4) Shows evidence of authentication of the signer’s identity such as the text ‘‘digitally signed by’’ along with the software provider’s seal/watermark, date and time of execution; or, have an authentication code or key identifying the software provider; and (5) Has a font, size and color density that is clearly legible and reproducible when reviewed, copied and scanned into a black on white format."

    Prior to the Policy Clarification, the Registry would only accept originally, ink signed documents. The use of digital signatures has certainly been a great benefit to the industry and very helpful for closing aircraft transactions which require filings with the Registry.

    It is often difficult to determine if a document has been digitally executed, and different programs (such as DocuSign and Adobe) identify digitally executed signatures differently. Parties should be careful to make certain any documents filed with the Registry are ink signed originals or digitally executed in compliance with the Registry requirements.

     Feel free to contact the aviation team at McAfee & Taft if you have any questions or comments.

    This article was originally published by McAfee & Taft on September 9, 2019. 

  • Tracey Cheek posted an article
    The History Behind the International Registry see more

    NAFA member, Aircraft Guaranty Corporation, discusses the history of the International Registry. 

    The concept of multi-country international laws governing the financing of aircraft was the brainchild of Jeffrey Wool, who understood the global nature of airline financing and knew that more favorable international laws were needed to encourage investment in startup airlines. 

    Originally referred to as UNIDROIT, which is French for one law, he envisioned countries around the globe adopting a set of laws favorable to lenders that would encourage international financing of aircraft. 

    It would include a central international registry where rights and interests of international lenders would be registered in one place.

    The Concept of Global Financing

    Global financing for aircraft and airlines is of huge importance. You can read about this in ourblog, Why an Aircraft Should be Registered in Trust

    Starting a new airline is no small undertaking – with a long list of requirements needed to get a new airline off the ground, not the least of which is capital investment. Emerging markets are traditionally not affluent enough to provide start-ups with capital, so new airlines look to more prosperous economies for assistance. 

    The continuing increase in global air travel is overwhelming current supply chains, creating opportunities for new airlines to handle the demand. Start-ups around the world are adopting the low-cost carrier model, and opportunities to invest in these start-ups abound. Investors need to feel comfortable, however, with the business model of the airlines with which they are investing.

    Investors around the globe are more willing to invest in startup airlines if they can be assured that they have the right to repossess the assets of the new business if the burgeoning new airline doesn’t make it and can’t pay off their loan.

    The Cape Town Convention

    In response to this need, the Convention on International Interests in Mobile Equipment was held, creating a set of uniform laws to encourage the financing of aircraft, particularly for developing countries. The original convention was held on November 16, 2001 in Cape Town, South Africa, and has therefore become widely recognized as the Cape Town Convention. 

    Signing the treaty was only the first step, and only represented an intent to participate in the Convention. To fully participate in Cape Town, signatories to the Convention had to ratify the treaty. This meant that participating countries had to change or adopt certain laws to make them more favorable to lenders financing the airlines.

    To get Cape Town fully up and running, eight countries had to ratify the treaty. This took a while, so although the Convention was signed in 2001, not all of the provisions were fully up and running until March 1, 2006. 

    The original participating eight countries were Ethiopia, Ireland, Malaysia, Nigeria, Oman, Panama, Pakistan, and the United States. Today, the Convention has been signed by 77 different countries, and all but seven have fully ratified the treaty.

    So, What About the International Registry?

    The Cape Town Convention had a provision for creating an International Registry (IR), where the rights of all these international lenders could be filed for the world to see. The concept is much like the FAA, where all interests in the United States are filed in one place (Oklahoma City). 

    Unlike the FAA, however, the IR is an electronic-based registry that only gives notice of an international interest against an aircraft. In order to see the actual documents creating the interest, one must go beyond the IR to the country where the interest was created.

    The IR was originally designed to show only liens against aircraft. As the concept of the Convention grew, many people felt that ownership interests should be registered as well. Many wanted it to operate more like the FAA’s title-based registry, so that interested parties could get an understanding of the aircraft owner’s current identity, not just whether there were any liens against it. 

    Registration of Ownership Interests were therefore added to the scope of the treaty, and the IR now allows for notices of ownership interest called contract of sales.

    Is the International Registry in Cape Town, South Africa?

    While the treaty was signed in South Africa, the question of where to place the IR was a big one, and political. Many countries vied for the right to host the IR, but it came down to two main contenders: Canada and Ireland. 

    A lot of deliberation went into making the final decision, but in the end, Ireland was selected, and the IR was placed in Dublin where it is currently managed by a company named Aviareto.

    Now that we’ve given the history behind the Cape Town Convention and the creation of the International Registry, our clients may wonder about the need to register – please consult with Aircraft Guaranty Corporation to determine if you are eligible to register with the IR or not.

    This article was originally published by Aircraft Guaranty Corporation on August 28, 2019.

  • Tracey Cheek posted an article
    Is business aviation ready for Blockchain? see more

    NAFA member, Corporate Jet Investor, discusses Blockchain and business aviation.

    Blockchain is one of those words nearly everyone has heard of or read about over the past decade, but very few people can define exactly what it is. Those who take a shot at explaining it usually end up saying something along the lines of: “Blockchain is a distributed, decentralized, public ledger.” Instead, the best way to think about blockchain is that it allows data to be held securely in a provable format. The blocks of the chain are digital pieces of information or data.

    This deep granularity means small items can be tracked, with the data stored on a network of computers. Fundamentally, the goal of blockchain is to allow digital information to be recorded and distributed, but not edited. Accessing individual blocks requires a key, created by complex algorithms. This ensures the data items cannot be tampered with, essentially helping the data points be verifiable.

    For business aviation the potential application of this technology could be vast, from storing individual financing documents to spare-parts tracking of the smallest aircraft components. Fuel companies are also working on using it.

    First movers

    Adoption across business aviation of blockchain is still very much in its early stages but this will change soon. Clay Healey, owner of AIC Title Service, is among the first movers. The firm has been using blockchain since last year, mainly placing closing information into it, for roughly 2,000 assets with a $2bn value in closing. Healey says that AIC uses blockchain primarily for security but adds that a lot of the language around blockchain is slowing its adoption.

    “For us at AIC, blockchain really is an added layer of security. I think a lot of the words used around blockchain make it incredibly hard for most people to grasp it. Nodes. Decentralisation. What do they mean?” he asks rhetorically.

    “Breaking it down logically, it’s a way to put information across a vast array of servers, and that makes it extremely secure and virtually un-hackable. I say virtually as for verification of the documents, 51% of the computers, or servers, need to agree that the data is correct. To hack 51% at the same time is a huge task.”

    Aiham Bader, founder and CEO of Click Aviation Network, is another pioneer. The trip support company is already using Blockchain technology for its Instant Permit Programme and is looking at leveraging it to help with parts traceability.

    “If you are going to implement blockchain, start from within,” said Bader. “Have a group from your company who understand your business, vision, the target and the plan. Then you have the engine within who understand blockchain and if it fits within your business. Then from all the problems you have to pick out only one problem and start with it first.”

    Todd Siena, founder and chief of Block Aero, a start-offering a blockchain platform, also highlights that for aviation blockchain offers security of data and a method to verify the truth of that data, which can be crucial for an aircraft’s resale value.

    “Where we see the value of blockchain at Block Aero is that it organises asset data and secures the verification of it. Given that aircraft value is linked to this asset trace data integrity, which grows over the life-cycle, being able to prove up that asset data is vital. If you lose the data, or it is incomplete, then you are losing resale value,” says Siena.

    Being able to store and verify crucial data cross many components is of obvious benefit to aviation, especially on the maintenaBlock Aero recently announced a flagship pilot project with Turbine Services & Solutions and Etihad Airways nce side where there are numerous parts to track.

    The blockchain pilot project, sponsored by Mubadala Aerospace R&D, aims to improve engine-overhaul times by enhancing cooperation between parties that need to collaborate on aircraft asset data.

    Healey agrees that blockchain’s ability to prove-up documents makes blockchain a good opation for aviation.

    “One great thing about packaging our closing documents into one PDF is that all the information is there and if it is housed on the blockchain it’s incredibly easy to obtain that information if and when there’s a need to prove upwards.”

    Siena thinks that aircraft will ultimately either be on the chain or not, with implications for the pricing of financing and asset sale value.

    “I think the world will diverge into a place where we have aircraft and assets on-chain and off-chain. Maybe those at the start will be newer aircraft and premium ones like business jets,” he says.

    On-chain aircraft may also be able to get tailored insurance policies as well, Sienna adds.

    “These on-chain assets will enjoy several advantages over those not on the blockchain. For example, insurance may be cheaper as you can prove to the insurer the condition of the asset with risk monitoring over the life-cycle,” says Siena.

    “Right now, most insurers offer very generalised policies, but providing more granular data means these can be more tailored. The same can be applied to asset financing.”

    Back on the chain gang

    One obstacle to blockchain’s wider adoption is that making a complete repository of all aviation assets is something of a herculean task.

    “But away from putting new stuff into the blockchain, reverse engineering blockchain into the aircraft title world may be near on impossible as there are just so many aircraft. You’d have to go so far back to get all the information. If someone was to draw a line in the sand and say ‘let’s just do it from say 2018’, then it might be feasible,” says Healey.

    Registry support would play a critical role in making the adoption of blockchain more feasible. But according to Healey no registry has embraced blockchain as of yet, though AIC is in talks with a European registry around use of blockchain.

    OEM support would also help fasttrack blockchain’s use across aviation, according to Paul Jebely, partner at law firm Pillsbury in Hong Kong. “The inevitable march towards modernity must invariably begin with the OEMs as first movers,” Jebely says.

    However, costs and a lack of immediate efficiency gain may dissuade OEMs from adopting blockchain swiftly, Healey argues.

    “I wouldn’t say blockchain really adds efficiency and it does cost a lot, even for relatively small users like us. If you’re an OEM, the cost will be many times more and imagine having to log every piece of metal, every change to that piece of metal – that’s not efficiency, that’s slowing you down! But then again when it comes to certification, you can just take all that data stored in one place, assert that it’s true and present to the FAA or whomever– that is where the streamlining blockchain offers starts to come in for OEMs.”

    Other technologies are available 

    Use of blockchain may not accelerate rapidly in business aviation, but there is little doubt that harnessing technology can bring business efficiencies. For example, Healey is using computing power to cut down the amount of time it takes to trace ownership.

    “We are working on a computer system that will essentially be able to read registry documents, and hope to have that online by June. That will bring efficiencies as, before, tracking all the owners, different parts etc could take four to five days,” Healey says. “There’s a 9ft tall office we have here, and some of the paper trails you’d produce from those registry searches would be as tall as the ceiling. And you have to double check all of that! Now the computer will read that document in eight minutes and all we will have to do is to check it, which might take an hour or two. That’s a tremendous time saving.”

    Smart business-aviation firms need to embrace technology that assists them. Whether blockchain is one that will become widespread looks unlikely in the near term. But as AIC’s planned new system shows, there are always new avenues to explore.

    This article was originally written and published by Jamie Bullen, Reporter, with Corporate Jet Investor in CJIQuarterly Q3 19, July 2019.  

     

     

  • Tracey Cheek posted an article
    Aero Asset – Bringing big brokerage practices to the preowned market see more

    NAFA member, Aero Asset, forms new pre-owned helicopter brokerage.

    Three of AvPro’s senior salespeople split off from the group at the beginning of the year to form a new pre-owned helicopter brokerage – Aero Asset.

    Emmanuel Dupuy, William Sturm and Valerie Pereira debuted their new brokerage at HAI Heli Expo in Atlanta in March this year – a brokerage they say brings in the best practices of big business and injecting them into a customer-first independent approach

    “We saw an opportunity to take some of the big brokerage business practices we had learnt and apply them to the helicopter space,” said co-founder Emmanuel Dupuy.

    “We put the client at the heart of everything we do. We’ve invested a lot of resources to make sure the customers have all the information they need to make a good decision – with great intelligence, there can only be a great decision.”

    Just two months after its official launch, Aero Asset had a static display at EBACE 2019 with two helicopters on display. We sat down with Emmanuel Dupuy to discuss pre-owned market trends, what regions are hot, and what we can expect from Aero Asset in the coming years.

    “It (the reception) has been great. Right now, we are juggling listings and closings but also executing on the strategy, building the tools the resources that are going to help us do our job and serve the clients better,” said Dupuy.

    The company is expanding and looking at certain international markets with great interest. Fittingly for its presence at EBACE, the company has hired a salesperson to represent Aero Asset in Latin America – specifically in Mexico City, one of the largest VIP-helicopter markets.

    “60% of our business is in Europe right now. 30% is in the US and the other 10% spread out internationally. Specifically, we are particularly excited about Latin America.

    “In fact, we have just hired a Brazilian salesperson based in Mexico City. He has 20 years of aerospace industry experience. The region has tremendous potential for us and we believe we can make an impact there.”

    Mexico City has the second largest number of helipads of any world city with 200 across the metro. This is second only to São Paulo, Brazil which has 215, with 500 helicopters based there and 2,200 flights per day.

    “It is a market that covers all bases for us. The VIP market is big out there and people are looking for predominantly light-twins while the major oil and gas operators out there are all operating heavy and medium and large twin helicopters. All the helicopter types we deal with are relevant there.

    “We had done deals there prior, but to be successful in Latin America, you need someone there. Business people need to meet face-to-face and they need to feel that you have someone out there representing the region. It is one of the particularities of this market.”

    The Latin American market is also dominated by pre-owned aircraft. Along with selling aircraft, Aero Asset is also writing up reports on pre-owned helicopter market trends. The reports break down the performance of the relevant twin-engine helicopters in the market right now.

    Key trends for 2018 showed a general increase of retail trades of 9% in 2018 year on year over 2017. The strongest growth was seen in the light twin market, which was up 13%, with the best performing model being the EC135.

    The EC135 growth was mainly driven by the EMS market, which accounted for 80% of 2018 purchases. The AW109 Power and AW109 Grand were the second and third most liquid pre-owned helicopter last year respectively.

    Whilst it is early days in 2019, there are definitely some positive signs for pre-owned helicopters.

    “The AW139 market and EC145 B1 market is looking on par with Q4 2018 so that is a good sign. The same number of deals are being done and Q1 was also on par year-on-year with Q1 2019 for the AW139 and the EC145

    “We’re also seeing really solid numbers for Q1 2019 in the AW109 Power and the AW109 Grand and Grand New markets and we are also seeing some dealer activity, so these are all really positive signals.”

    This article was written and published by Alex Baldwin of Helicopter Investor on June 6, 2019.

  • Tracey Cheek posted an article
    OIG Reports on FAA Registry Update - What Does It Mean? see more

    NAFA member, Debbie Mercer-Erwin, President of Wright Brothers Aircraft Title, discusses the OIG, the FAA Registry Update, and what it means for the aviation industry. 

    The Situation

    There are changes ahead that will modernize the Federal Aviation Authority (FAA) – bringing it up to date with the latest technology and security measures. One of the key updates will be to the registry system, which is vital for ensuring aircraft are legally owned, maintained, and operated.   

    The deadline for the huge overhaul is now October of 2021, which doesn’t seem that far away. The Office of the Inspector General (OIG) recently issued a 29-page report – “FAA Plans to Modernize Its Outdated Civil Aviation Registry Systems, but Key Decisions and Challenges Remain” – regarding the progress the FAA is making in order to meet the modernization mandate. 

    The OIG delved into what they think the FAA needs in place to complete the required upgrade on time – their report put into question whether it could be accomplished, stating: “The Registry’s systems are outdated, and FAA has yet to develop a detailed plan for modernization.”

    The FAA’s plans are not the only consideration in the timeframe though, given the Congress factor. Because “the regulations that govern aircraft registration do not reflect current technology or business practices”, modernizing the FAA’s registration system will require rulemaking by Congress, which can take some time.

    A Modern System

    This is a significant update to the Registry – many provisions were implemented with the Reauthorization Act of 2018 (HR 302) – which Wright Brothers Aircraft Title covered in more depth in Highlights of the 5 Year FAA Reauthorization Act.

    The new registration system, Civil Aviation Registry Electronic Services (CARES), “is expected to streamline processes, allow for the submission of electronic applications and forms, improve controls, automate registration processes, and improve online data availability” according to the FAA. Its key aims are:

    • Web-based access to all public data. For the first time in history, the general public will be able to view FAA records online in real time. Currently, what isn’t already electronically maintained is held in the Public Documents Room (PDR) available for those who have access. Any electronic records are only in real time via the computers at the PDR – outside access is limited to information that is updated once daily.

    The modernization mandate includes digitizing all aircraft registration documents for real-time, public and web-based access, which means phasing out the PDR at the FAA. Furthermore, using the PDR will incur a fee if the business could have been conducted by electronic means as efficiently. 

    • Automation of application services (processes and procedures). For the first time in history, the general public will also be able to file any document electronically. Most aircraft registration functions still require paper documents that are manually scanned and reviewed by Registry examiners. Digitizing and automating the registration process means the role of FAA examiners will change, becoming more high-level. 

    In Order to Proceed

    Detailed estimates of technical and operational requirements for the new system are vital right now – anticipating the rulemaking, cost and schedule that will be necessary to successfully complete the expansive project. Some key questions need to be answered:

    What are the new components/upgrades needed in the new system? The FAA is considering: automated approvals for low-risk applications; automated verification of fraudulent or incorrect submissions; additional security controls such as crosschecking information with non-agency entities; the registry structure, including combining aircraft and airmen systems; and matters of data storage with a cloud- or server-based system.

    How will the FAA fund the new system?It hasn’t been decided yet – funding modernization projects usually comes from its facilities and equipment (F&E) account, but they may be able to use money from its operations and maintenance (O&M) account. This must be decided before it becomes a part of the agency’s budget.

    What rulemaking via Congress is necessary in order to proceed?The FAA will have to develop a rulemaking that revises current regulation and allows for the electronic registration of aircraft –to improve controls, strengthen requirements, and implement digital signatures and electronic payments – a complete outline of the new system is needed beforehand to know exactly what rules to change 

    Now What? – The Challenges

    The OIG report contained four main recommendations to the FAA. The FAA accepted and outlined a schedule for implementing them: 

    1. Develop and implement timeline for making key decisions regarding CARES by May 31, 2019. 
    2. Define desired capabilities of CARES by Dec 31, 2019
    3. Develop and implement a procedure to obtain industry feedback by Oct 31, 2019. 
    4. Develop and implement a plan for maintaining real-time access to data by June 30, 2019.

    There are challenges to face though, including: the transfer of a huge amount of data (with a lot of outdated/large files) to a new system; meeting the needs of registry users – aircraft title companies, financial institutions, aircraft manufacturers, airmen, other government agencies etc. – to ensure the operation of aircraft worldwide; and addressing workforce issues arising from role changes.

    The Transition & After

    The OIG has concerns, but if the FAA stays on track with this schedule, they can meet the October 2021 deadline, barring delays with Congressional rulemaking. 

    Updating and modernizing the new system will be a great improvement, but will not fully alleviate all of the pitfalls to closing yourself that we outline in our blog, Can’t I Handle My Own Aircraft Closing?. It will still be important to hire a company that knows the ins and outs of the FAA system to avoid costly errors that could take time and money to correct.

    Ultimately, the changes ahead will modernize the FAA’s registry system, helping to bring the aviation industry up to date in technology and security measures. There is significant work to do, but we’re confident that every entity involved in this important endeavor will fulfill expectations. 

    This article was originally published by Wright Brothers Aircraft Title on their blog on July 16, 2019.

  • Tracey Cheek posted an article
    Back to the Future - 35 Years see more

    NAFA member Bill de Decker, Co-Founder of Conklin & de Decker, shares his thoughts on business aviation.

    Nobody could deny Business Aviation has come a long way in the last 35 years. Looking back to 1984, NetJets was only a vision of Richard Santulli who had just purchased Executive Jet Aviation.

    The most popular business jet model was the Learjet 35A and Cessna was in the lead with the most combined deliveries of its Citation line of Light and Mid-size Jets. In the Long-Range category, the Falcon 50 was the leader for Dassault and the Gulfstream GIII was having a strong year.

    Meanwhile, Bombardier’s Challenger was the first entry in the new Super Mid-size Jet class. What’s more, we were all looking forward to the all-new GIV, which was nearing its first flight. Impressively, many of these aircraft are still flying today, which is a testament to the quality of manufacturing, technology and years of proper maintenance.

    But away from the manufacturing side, the launch of several entrepreneurial Business Aviation start-ups also took place at that time, including a company called Conklin & de Decker.

    Al Conklin and I met while working at Falcon Jet in the early 1970s and we went on to publish the first Aircraft Cost Evaluator in 1972. Our combined experience spanned the military, aircraft sales, engineering and c ost analysis, and we had a passion for business jets. We recognized a demand for accurate, trustworthy, directly comparable aircraft cost and performance data that could help businesses and individuals make more informed decisions when buying an aircraft.

    Since then, Conklin & de Decker has become a leader in that field and also consults on a wide range of subjects, including fleet planning, acquisitions and taxes. A little

    over a year ago, we announced that Jet Support Services, Inc. (JSSI) had acquired our company. As JSSI added programs, expanded into parts and leasing, and introduced advisory services such as overhaul management, inspections and appraisals, it was a logical step to acquire our data, tax and consulting business in 2018.

    The result is that JSSI and Conklin & de Decker are positioned for the future and no longer just provide hourly

    maintenance programs or databases but support the entire life cycle of owning and operating an aircraft. Our two companies have many things in common but the most important, in my opinion, is our dedication to our customers.

    What’s Changed in BizAv?

    One of the great things about Business Aviation is the constant pursuit of innovation. In 1984, the push was for more range, more speed, better performance, lower fuel consumption, less noise, lower maintenance costs and better avionics. And that has not changed one bit today!

    So what has changed? It’s the sheer amount of information that’s available to consumers. People consume vastly more data today and depend on it to make decisions. This was a big motivation for the creation of the Conklin & de Decker Report, ba sed on our flagship Aircraft Cost Evaluator that is now easily accessed via the web or mobile app.

    Another change has been the globalization of Business Aviation with its Ultra-Long-Range Jets and worldwide operations. To address this, we’re expanding our research to accurately depict regional variations in operating costs, starting with the Asia-Pacific and European regions.

    Meanwhile, the one area that hasn’t changed since 1984 is the importance of great customer service. Even with increased automation and digital access to our products I don’t foresee the personal level of our service we believe in going out of style.

    And on to the Next Generation in BizAv...

    As we look to the next generation of Business Aviation, we see supersonic transportation (SST) making a comeback; not the 1980s SST version but with new, efficient engines that will burn the latest sustainable alternative jet fuel blend and with no perceptible sonic boom. We see futuristic eVTOL designs and talk of autonomous aircraft.

    However, one vital element to our industry’s longevity is its ability to attract and retain young talent—pilots, maintainers, design engineers, software developers and sales reps who share the same passion for aviation that led many of us to devote our entire careers to this industry.

    With them we will continue the legacy of business aviation for many years into the future. More information from www.conklindd.com

    Bill de Decker is the Co-Founder of Conklin & de Decker, where he is responsible for consulting studies and developing new programs. His areas of expertise include financial management, business and fleet planning, certification issues, life cycle cost and operations. Prior to founding Conklin & de Decker, Bill managed the Falcon and Bell Learning Centers, as well as the Communications Systems Division for FlightSafety International.

    This article was originally published in AvBuyer Magazine, Volume 23, Issue 6, 2019, p. 4

  • Tracey Cheek posted an article
    NAFA member, Aircraft Guaranty Corporation, discusses the FAA Registry Update. see more

    NAFA member, Aircraft Guaranty Corporation, discusses the FAA Registry Update.

    The Situation

    There are changes ahead that will modernize the Federal Aviation Authority (FAA) – bringing it up to date with the latest technology and security measures. One of the key updates will be to the registry system, which is vital for ensuring aircraft are legally owned, maintained, and operated.   

    The deadline for the huge overhaul is now October of 2021, which doesn’t seem that far away. The Office of the Inspector General (OIG) recently issued a 29-page report – “FAA Plans to Modernize Its Outdated Civil Aviation Registry Systems, but Key Decisions and Challenges Remain” – regarding the progress the FAA is making in order to meet the modernization mandate. 

    The OIG delved into what they think the FAA needs in place to complete the required upgrade on time – their report put into question whether it could be accomplished, stating: “The Registry’s systems are outdated, and FAA has yet to develop a detailed plan for modernization.”

    The FAA’s plans are not the only consideration in the timeframe though, given the Congress factor. Because “the regulations that govern aircraft registration do not reflect current technology or business practices”, modernizing the FAA’s registration system will require rulemaking by Congress, which can take some time.

    A Modern System

    This is a significant update to the Registry – many provisions were implemented with the Reauthorization Act of 2018 (HR 302) – which Aircraft Guaranty Corporation covered in more depth in Highlights of the 5 Year FAA Reauthorization Act.

    The new registration system, Civil Aviation Registry Electronic Services (CARES), “is expected to streamline processes, allow for the submission of electronic applications and forms, improve controls, automate registration processes, and improve online data availability” according to the FAA. Its key aims are:

    • Web-based access to all public data. For the first time in history, the general public will be able to view FAA records online in real time. Currently, what isn’t already electronically maintained is held in the Public Documents Room (PDR) available for those who have access. Any electronic records are only in real time via the computers at the PDR – outside access is limited to information that is updated once daily.

    The modernization mandate includes digitizing all aircraft registration documents for real-time, public and web-based access, which means phasing out the PDR at the FAA. Furthermore, using the PDR will incur a fee if the business could have been conducted by electronic means as efficiently. 

    • Automation of application services (processes and procedures). For the first time in history, the general public will also be able to file any document electronically. Most aircraft registration functions still require paper documents that are manually scanned and reviewed by Registry examiners. Digitizing and automating the registration process means the role of FAA examiners will change, becoming more high-level. 

    In Order to Proceed

    Detailed estimates of technical and operational requirements for the new system are vital right now – anticipating the rulemaking, cost and schedule that will be necessary to successfully complete the expansive project. Some key questions need to be answered:

    What are the new components/upgrades needed in the new system? The FAA is considering: automated approvals for low-risk applications; automated verification of fraudulent or incorrect submissions; additional security controls such as crosschecking information with non-agency entities; the registry structure, including combining aircraft and airmen systems; and matters of data storage with a cloud- or server-based system.

    How will the FAA fund the new system?It hasn’t been decided yet – funding modernization projects usually comes from its facilities and equipment (F&E) account, but they may be able to use money from its operations and maintenance (O&M) account. This must be decided before it becomes a part of the agency’s budget.

    What rulemaking via Congress is necessary in order to proceed?The FAA will have to develop a rulemaking that revises current regulation and allows for the electronic registration of aircraft –to improve controls, strengthen requirements, and implement digital signatures and electronic payments – a complete outline of the new system is needed beforehand to know exactly what rules to change 

    Now What? – The Challenges

    The OIG report contained four main recommendations to the FAA. The FAA accepted and outlined a schedule for implementing them: 

    1. Develop and implement timeline for making key decisions regarding CARES by May 31, 2019. 
    2. Define desired capabilities of CARES by Dec 31, 2019
    3. Develop and implement a procedure to obtain industry feedback by Oct 31, 2019. 
    4. Develop and implement a plan for maintaining real-time access to data by June 30, 2019.

    There are challenges to face though, including: the transfer of a huge amount of data (with a lot of outdated/large files) to a new system; meeting the needs of registry users – aircraft title companies, financial institutions, aircraft manufacturers, airmen, other government agencies etc. – to ensure the operation of aircraft worldwide; and addressing workforce issues arising from role changes.

    The Transition & After

    The OIG has concerns, but if the FAA stays on track with this schedule, they can meet the October 2021 deadline, barring delays with Congressional rulemaking. 

    Updating and modernizing the new system will be a great improvement but will not fully alleviate all the pitfalls in submitting documents, electronically or not. With the extensive rules in place for filing documents, there is a good chance it won’t be done correctly without industry knowledge of FAA rules and regulations.  

    Furthermore, it is paramount to know What to Look for in Owner Trustee Documents to uphold high standards for creating and maintaining the title to the aircraft. It will still be important to hire a company that knows the ins and outs of the FAA system to avoid costly errors that could take time and money to correct.

    Ultimately, the changes ahead will modernize the FAA’s registry system, helping to bring the aviation industry up to date in technology and security measures. There is significant work to do, but we’re confident that every entity involved in this important endeavor will fulfill expectations. 

    This article was originally published by Aircraft Guaranty Corporation

  • Tracey Cheek posted an article
    GAMA Sees Good Start for Airplanes in 2019 see more

    NAFA member, Pete Bunce, GAMA President and CEO, says 2019 has started off well for airplane deliveries.

    General aviation airplane deliveries got off to a good start in 2019, according to statistics compiled by the General Aviation Manufacturers Association (GAMA). All sectors, including business jet, turboprop, and piston-powered airplanes, showed an increase in deliveries year-over-year for the first three months of the year, while industry billings rose by 10.5 percent, to $4.23 billion. "While our rotorcraft segment experienced some headwinds, our airplane segment remains strong," said GAMA president and CEO Pete Bunce. "Statements by our member companies point to solid order intakes during the first quarter, laying down a positive marker for later in 2019."

    For business jets, the first quarter of 2019 saw 141 deliveries, an increase of nine aircraft from the same period in 2018. Gulfstream led the way, with an additional eight of its large-cabin jets in the first three months of this year, while its super-midsize G280 deliveries remained static at seven. Cessna saw a 22 percent increase year-over-year showing increases or the same number of deliveries across its entire product line, as its first-quarter totals rose from 36 in the first three months of 2018 to 44 this year. The Wichita airframer increased its output of the M2, Sovereign+, and Latitude by two each, while Pilatus added three additional examples of its PC-24 light jet year-over-year.

    Embraer remained even with 11 deliveries in each year, the two Legacy 450s handed over in 2018 were offset by the delivery of an additional Legacy 500 and a Legacy 600/650 this year.

    Canadian OEM Bombardier noted a nearly 23 percent decrease in deliveries for the quarter, moving from 31 in the first three months of 2018 to 24. All models saw a decline with the exception of its flagship Global 7500 which received certification late year.

    Honda saw first-quarter deliveries of its light HondaJet down by nearly 42 percent, year-over-year, moving from 12 in the first quarter of 2018, to 7 in the first three months of 2019.

    Dassault presents its delivery totals for its Falcons at mid-year and year-end.

    In the bizliner category, Airbus handed over a pair of ACJ320neos in the first quarter of 2019, after posting no deliveries in the same period last year, while Boeing, which had four deliveries early in 2018, had none through March of this year.

    While the overall turboprop segment saw a 7 percent rise year-over-year, the higher-end pressurized models remained flat with 50 deliveries in the first quarter of both years. Textron handed over five additional Beechcraft King Air 250s in the first quarter of 2019, contributing to a 35 percent overall increase for the manufacturer, as Daher and Pilatus remained steady on their single-engine turboprops, delivering eight and 12 both years, respectively. Piper handed over seven M500s during the first quarter of 2019, down from the same period last year when it delivered three M500s and seven M600’s. Piaggio, which delivered three Avanti Evo twin pushers in the first three months last year, reported none in the same period this year.

    On the rotorcraft side, total shipments were down more than 19 percent year-over-year, and billings declined by nearly $100 million, while turbine-powered helicopters slid more than 22 percent, from 134 in the first quarter of 2018 to 104 during the same period this year. Bell, which delivered 46 helicopters in 1Q 2018 saw that total fall to 30 in the first three months of 2019. The Textron-subsidiary transitioned from the 407GXP with 17 deliveries in the first quarter of 2018 to just one this year, while ramping up to the 407 GXi with six handed over in the first three months of 2019.  It also delivered seven fewer 505s year-over-year. Airbus Helicopters, which delivered 46 civilian rotorcraft in the first quarter of 2018, handed over three less this year, the difference mainly being four fewer H135s in the first quarter.

    Leonardo was down by 34 percent from its first quarter 2018 totals. The company delivered no AW189/149s in the first three months of 2019, as compared to the six it handed over a year earlier. Likewise, it had no AW119Kx deliveries, having four in the first quarter of 2018. It did exceed its 1Q 2018 tally on the AW169 by three units, delivering six in the first three months of 2019.

    Robinson Helicopter dialed back its deliveries on the R66 by six, handing over 12 in the first quarter of the year, while Sikorsky which had one delivery, an S92, in the first three months of 2018, had none this year.

    This article was originally published by Curt Epstein in AINonline on May 17, 2019.

  • Tracey Cheek posted an article
    Citi Reiterates 'Cautious Optimism' for Bizjet Market see more

    NAFA member, Ford von Weise, Global Head of Aircraft Financing for Citi Private Bank, shares his thoughts on the current state of the business jet market.

    Ford von Weise, global head of aircraft financing for Citi Private Bank, termed the overall atmosphere last week at EBACE as “benign” during a conference call earlier this week hosted by Citi Research addressing the current state of the business jet market. Participants on the call were also cautious about macro factors and trade war risks that could negatively affect the certainty the market thrives on.

    “That said, there’s still some optimism behind that caution based on stabilized pricing/values and new products driving demand,” Citi Research aerospace analyst Jonathon Raviv said. “It’s also worth remembering that the market is in a better spot than it has been for several years, which could provide some cushion if macro weakens significantly.

    “In our view, business jets are showing signs of life, with legacy orders supporting stabilized or modestly higher legacy production rates. But we do sense some jitters…which in our view means [aircraft manufacturers] are still reticent to raise rates meaningfully.”

    Citi Research noted the business jet market relies on “aircraft need, liquidity, and confidence.” While it said the first two are currently in good shape, “confidence could falter, which could be coincident with aircraft need. Confidence is very important for the high-net-worth crowd, which our expert suggests comprises 50 percent of buyers. A sentiment swoon can freeze their purchase decision.”

    This article was originally published by Chad Trautvetter in AINonline on May 30, 2019.

  • Tracey Cheek posted an article
    JetNet Sees Mixed Signals for Bizjet Market see more

    NAFA member, Paul Cardarelli, JetNet's VP of Sales, shares the latest regarding the state of the business aviation market. 

    Business aviation data provider JetNet is fairly optimistic about the state of the business jet market, but sees some warning signs on the horizon, the company said in a state of the business aviation market presentation on Tuesday at EBACE 2019. While GDP has long been associated with business jet usage, JetNet VP of sales Paul Cardarelli said his company's analysts have noted a bit of decoupling in GDP growth between the U.S., which has been above 3 percent for the past two quarters, and the Euro Area, which has remained flat at 1.2 percent for that span. Cardarelli placed some of the blame on the protracted drama of Brexit, which is estimated to be impacting the UK economy by £19 billion a year, among other factors.

    He noted that the business jet fleet remains “geographically concentrated,” with approximately 61 percent of the world’s business jet fleet based in the U.S., and that the 22,138 business aircraft in service today had 4.5 million cycles in 2018. The last time the fleet was at that level of utilization was around 2005, when the in-service fleet numbered approximately 14,000.

    “So we’re about one-third more aircraft than we were in ’05, and yet we’re operating about the same number of cycles,” Cardarelli noted. “This is one of the things that gives us some concern. We have an oversupply situation and we have underutilization going on.”

    Another metric of the health of the market lies in the preowned segment. An inventory of less than 10 percent of in-service aircraft is considered by many as indicative of a seller's market and, as of the end of March, the numbers according to JetNet’s data were 9.3 percent for business jets and 6.7 percent for turboprops, the lowest levels since before the global economic downturn.

    Yet, the company noted there were 513 retail jet sale or lease transactions in the first quarter, compared to 641 a year ago—marking a year-over-year decrease of nearly 20 percent. Cardarelli attributes the discrepancy to a variety of reasons, including the partial U.S. government shutdown in January and stock market turbulence. Another factor could be the limited choice in the marketplace as buyers finally jumped in at the bottom of the market and have removed most of the choice aircraft.

    On the new aircraft side, all five of the major business jet airframers have shown an increase in backlogs in the first quarter, an aggregate 5.5 percent rise, with book-to-bill ratios all above one while Embraer and Bombardier are approaching two. “We feel good about that—that’s a good metric for the industry,” said Cardarelli. “We’re always conservative at iQ, we do want to call them as we see them, but we’re actually bullish, particularly for the OEMs."

    Since 2011, JetNet iQ has conducted its quarterly surveys gathering 500 responses in each for approximately 17,000 results from 132 countries. JetNet iQ founder Rollie Vincent shared the latest data from the company’s second quarter survey, which is 85 percent complete. The survey asks respondents to describe the current market conditions for business aviation as either not yet at the low point, at the low point, or past the low point, and establishes a net optimism score by subtracting the first number from the last.

    In the second half of last year, that number hovered around 50 percent, but plummeted to 27 percent in the first quarter of this year, and with the majority of responses received for the second quarter, optimism seems to have eroded further to 24 percent. In North America, more than 50 percent of the respondents either somewhat or strongly believe there is increasing risk for a global economic slowdown in the next 12 months, while in Europe that rate exceeded 70 percent.

    “It’s all across the market, the mood has changed,” said Vincent. “We think this is a caution sign, and it’s going to affect preowned sales first, which we think are coming down.” Also in Europe, nearly 60 percent of the respondents believe to some degree that uncertainty over Brexit has affected their aviation activities.

    The survey typically asks respondents several topical perception questions, and among them this quarter was if they are experiencing difficulties recruiting and retaining aviation-related staff. In North America and Europe, 77 percent and 67 percent agreed from somewhat to strongly that they were, adding more evidence of an industry-wide talent shortage.

    Asked about their belief that all their aircraft would be ADS-B-compliant by the Dec. 31, 2019 deadline in the U.S., enough respondents indicated strongly that they would not, leading the company to speculate that thousands of aircraft could be affected. That could perhaps to a long overdue mass retirement of aging aircraft, Vincent said.

    For the first time in eight years of surveys, JetNet noted the percentage of intent to purchase light jets, which had been as low as 11 percent, has finally exceeded 30 percent, meaning a long-awaited improvement in the segment is under way, fueled by the Pilatus PC-24. That aircraft model earned the most responses to the question “what model were you most interested in for your next purchase?,” beating out the popular Gulfstream G500, G650/650ER and Bombardier Challenger 350 over the past three surveys.

    Vincent updated the company’s 10-year forecast to 7,100 jet deliveries worth $237 billion through 2028. For the first time, the company included the category of supersonic business jets (SSBJ), which he expects will make an appearance sometime around 2026. Based on the survey results, more than 75 percent of the respondents in North America, and nearly 50 percent of those in Europe, believe to some degree that SSBJs will be in service in the next decade.

    This article was originally published by Curt Epstein in AINonline on May 22, 2019.

  • Tracey Cheek posted an article
    Embraer Bizjet Deliveries Hold Steady in Q1 see more

    NAFA member, Embraer announces steady business jet deliveries in the first quarter.

    Embraer delivered 11 executive jets in the first quarter, remaining on par with 2018 shipments. As in the first quarter of 2018, the Brazilian manufacturer handed over eight "light" jets (Phenoms) and three "large" jets (Legacys/Lineages) in the first three months of the year. Embraer, which delivered 91 executive jets last year, has projected shipments to fall between 90 and 110 executive jets this year.

    While its business jet deliveries held steady in the quarter, Embraer's commercial aircraft shipments slid by three units to 11. Backlog, meanwhile, dipped slightly from $16.3 billion at the end of 2018 to $16 billion by the end of March.

    The first quarter marked the 500th delivery of the Phenom 300, a milestone reached in less than 10 years after the aircraft first entered service in 2009—and one of the few current business jets to reach that delivery level. One of the most-delivered aircraft over the last decade, the Phenom 300 is in operation in more than 30 countries and has accumulated more than 780,000 flight hours.

    Also in the quarter, Embraer announced it had captured the first Phenom 300E and Praetor 600 business jet sales to Brazilian customers. Its delivery lineup is slated to expand this year with Embraer recently receiving Brazilian ANAC approval for the Praetor 600.

    Click here to download the 1st Quarter 2019 report.

    This article was originally published by AINonline on May 6, 2019.