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owning & operating an aircraft

  • NAFA Administrator posted an article
    Aftermarket OEM Support: A Market Overview see more

    Looking for insights into the current and future challenges faced by the leading business jet OEM aftermarket support networks? AvBuyer’s Matt Harris asked NAFA member, Bombardier’s Chris Debergh for his perspectives on the sector.

    There’s a lot more to business jet manufacturers than simply building and selling airplanes. A big part of their activities involves taking care of the ongoing needs of owners and operators long after the aircraft have flown away from the factory with their new owners.

    That support ensures the aircraft remain in optimal condition, providing the functionality they were built to deliver; are modified to remain airworthy where necessary; can be upgraded when improved solutions become available to enhance the flying experience; and are expertly maintained long after the factory warranty expired.

    All of this ensures operators of newer, and out-of production pre-owned jets, alike, can enjoy flying those aircraft with peace of mind.

    For this reason, the leading aircraft manufacturers have extensive support networks, usually spread strategically around the planet, ensuring the necessary assistance reaches operators where it’s needed, when it’s needed.

    Read full article here

    This article was originally published by AvBuyer on February 14, 2022.

     

  • NAFA Administrator posted an article
    Duncan Aviation Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE: May 10, 2022                                   

    Contact: Tracey Cheek 

    tlc@nafa.aero 

    405.850.1292 

      

    Duncan Aviation Joins National Aircraft Finance Association 

     

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Duncan Aviation has recently joined its network of aviation professionals. Duncan Aviation is the largest privately owned business jet service provider in the world, with complete Maintenance, Repair and Overhaul (MRO) and aircraft broker/acquisition services. 

    “NAFA members know first-hand the value of having full-service providers who pride themselves on friendly, quality transactions,” said Jim Blessing, president of NAFA. “We welcome Duncan Aviation to our association and anticipate a long, fruitful relationship. As NAFA celebrates our 50th anniversary, we look to these companies such as Duncan Aviation to help our members and our organization continue to be known for innovation and expertise.” 

      

    Products & Services: 

    • Aircraft sales and acquisition 

    • Airframe and engine maintenance, service and support 

    • Avionics service, upgrades and installation 

    • Paint and interior refurbishment 

    • Parts and rotables sales 

    • Rapid response engine, avionics and parts support 

    • Engineering and certification 

    • Manufacturing solutions 

      

    About Duncan Aviation: Owned and operated by the Duncan family since its founding in 1956, Duncan Aviation was founded as an aircraft sales organization. Now, in addition to aircraft brokerage and acquisition services, the company provides tip to tail aircraft support. Well-known and respected by operators, manufacturers and other service providers worldwide for quality, value, timeliness, communication, work ethic and expertise, Duncan Aviation has core values focusing on service, respect and integrity. Its brand promise is a commitment to providing exceptional customer service and innovative offerings through a strong code of ethics. Duncan Aviation has major full-service MRO facilities in Michigan, Nebraska and Utah and more than 30 satellite facilities and in-field response offices. 

     

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer.  

  • NAFA Administrator posted an article
    Wheels Up Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE: April 13, 2022                                   

    Contact: Tracey Cheek 

    tlc@nafa.aero 

    405.850.1292 

     

    Wheels Up Joins National Aircraft Finance Association 

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Wheels Up (NYSE:UP) has recently joined its network of aviation professionals. Wheels Up provides on-demand private aviation services to more than 12,000 members with a fleet of over 1,500 owned, leased, managed, and partner safety-vetted and verified aircraft. 

    “NAFA is pleased to welcome Wheels Up to our association,” said Jim Blessing, president of NAFA. “As NAFA celebrates our 50th anniversary, we point to the many services our members offer to the public, including the work Wheels Up does in the private aviation vertical. We look forward to a long cooperative relationship.” 

     

    About Wheels Up: 

    Wheels Up is the leading provider of "on demand" private aviation in the United States and one of the largest private aviation companies in the world. Powered by a growing marketplace of more than 1,500 safety-vetted and verified aircraft, Wheels Up is the only company in the industry to offer a total private aviation solution that includes a relentless focus on safety and service, with flexibility across all types of aircraft, membership programs, corporate solutions, aircraft management, whole aircraft sales and commercial travel benefits through a strategic partnership with Delta Air Lines. 

    The Wheels Up App enables members and customers to search, book and fly. Wheels Up Connect, Core, and Business memberships provide enhancements such as flight sharing, empty-leg Hot Flights, Shuttle Flights, Shared Flights, signature Wheels Up Down events and exclusive member benefits from preeminent lifestyle brands. Wheels Up's ongoing Wheels Up Cares program aligns with philanthropic organizations and initiatives that affect and matter to the company and its customers, members, stakeholders, families and friends. The Wheels Up Cares fleet comprises five custom-painted Beechcraft King Air 350i aircraft, with each plane serving as a flying symbol for a specific social cause. 

     

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences, and industry insights allow member companies to provide the highest quality services the industry has to offer.  

  • NAFA Administrator posted an article
    How to Choose the Right Private Aviation Options see more

    NAFA Member Lee Rhode, President, and CEO of Essex Aviation, discusses aircraft acquisition, strategic planning, financial, operational, and management matters - so if you'd like to know how to make a more informed decision on your air transportation options, check out this Asset Insight podcast.

    Lee Rohde discusses how the consulting company he founded advises aviation-related entities on a wide range of aircraft acquisition, strategic planning, financial, operational and management matters. Specifically, Lee covers:

    • Private Air Transportation options – what should prospective users consider in reviewing their options for meeting their travel requirements?
    • In the event an entity determines they want to acquire an aircraft, how should they go about identifying the best model to meet their travel requirements?
    • What factors have the greatest influence on the decision to acquire a new vs. a pre-owned aircraft?
    • The issues and complexities associated with refurbishing or upgrading a pre-owned aircraft.
    • The expertise an entity should secure if they are planning an aircraft acquisition.
    • The factors to be considered when determining an Offer Price for an aircraft.
    • What a pre-purchase inspection entails and why it is such an important part of acquisition process.

    Listen to full podcast here

    This Asset Insight podcast was originally published by AvBuyer on December 10, 2021.

  • NAFA Administrator posted an article
    What Does Power-By-The-Hour and engine maintenance programs Mean In Aviation? see more

    NAFA member, Jason Zilberbrand, VREF President and CTO, discusses engine maintenance programs.

    Engine maintenance programs or Power by The Hour were invented due to the low dispatch reliability of classic turbine fan jet engines. The Rolls Royce Viper, Lycoming ALF-502, Garrett 731 series of engines had massive catastrophic losses and low dispatch reliability. These programs were the manufacturer's way of offering a quasi-warranty. While not truly a warranty that most consumers are accustomed to but probably closer in relationship to a term life insurance policy. The reason being the programs all rely on the same methodology. The owner pays an agreed-to hourly rate for each hour flown for a period, most likely five years. The owner essentially writes a check every month for hours flown. This concept has basically stayed the same for the last 40 years. There are several companies today that offer coverage for older engines, and of course, every manufacturer has their own as well. Programs are now available for piston aircraft, and several helicopter manufacturers offer a PBH (Power by The Hour) program as well.

    Read full article here

    This article was originally published by VREF on December 8, 2021.

  • NAFA Administrator posted an article
    Valuing the Rolls-Royce CorporateCare Enhanced Program see more

    After NAFA member Rolls-Royce established its latest CorporateCare Enhanced program within the Business Aviation community, NAFA member, Asset Insight's Tony Kioussis examines the value of Rolls-Royce’s expanded coverage.

    During the 2018 National Business Aviation Association (NBAA) annual NBAA-BACE conference, Rolls-Royce introduced CorporateCare Enhanced, the company’s expansion of its highly-regarded, and widely-accepted, CorporateCare Long Term Service Agreement (LTSA) or Hourly Cost Maintenance Program (HCMP).

    By expanding engine coverage to all maintenance and troubleshooting on the engine cowls, Thrust Reverser Units (TRUs), and engine build-up on the BR710, BR725 and the brand-new Pearl 15 engines, CorporateCare Enhanced® has enrolled over 1,400 engines as of this writing.

    Now that the program has matured, this seemed like a good time to examine what additional value the coverage provides to new, as well as existing CorporateCare users who upgrade to CorporateCare Enhanced.

    Read full article here

    This article was originally published by AvBuyer on October 12, 2021.

     

  • NAFA Administrator posted an article
    Fly It Like You Bought It - Treating Aircraft With Care see more

    NAFA member, AOPA, discusses treating your aircraft with care.

    Nailing the power-off one-eighty is a source of pride for aspiring commercial pilots. It’s a precision maneuver done with throttle closed on the downwind leg of the pattern abeam a designated touchdown spot on the runway, often the 1,000-foot markers. An acceptable landing falls not before and within 200 feet beyond the spot; otherwise, it’s a practical exam bust.

    All too often, candidates focus on planting the aircraft in that narrow window and forget about landing with any sort of grace. Such carrier landings may be appropriate at sea, but they have no place as a normal procedure because they exact an unnecessary toll on the aircraft. I think to myself, “If these folks owned the aircraft and paid for the maintenance, they would strive for better landings, spot be damned.”

    Read full article here

    This article was originally published by AOPA on September 1, 2021.

     

  • NAFA Administrator posted an article
    How to Reduce Major Aircraft Engine Maintenance Costs see more

    NAFA member JSSI Parts & Leasing Pratt & Whitney Product Line Manager Kalven Carpenter explains some of the options available to aircraft owners and operators looking to reduce the cost of business aircraft engine maintenance.

    It’s no secret that owning a business aircraft involves a significant amount of scheduled and unscheduled maintenance, which ultimately accounts for a large portion of overall aircraft operating costs. Let’s take a dive into some of the options available to aircraft owners and operators facing a major engine event.

    The highest cost maintenance event for turbine-engines is the overhaul, sometimes known as the core zone inspection. Most of that cost comes from parts that fail inspection and cannot be installed back into the engine. As a result, the maintenance, repair and overhaul (MRO) facility will likely then quote new material from the original equipment manufacturer (OEM) as replacement parts. However, while not always offered, there are a few alternatives to new material that can help reduce engine event costs: overhauled, repaired, serviceable and exchange parts.

    Read full article here.

    This article was originally published by JSSI Parts & Leasing on August 2, 2021.

     

     September 22, 2021
  • NAFA Administrator posted an article
    Conklin & de Decker Webinar: What You Need to Know and Consider When Acquiring an Aircraft see more

    NAFA had the privilege of sponsoring the recent Conklin & de Decker webinar,  “What You Need to Know and Consider When Acquiring an Aircraft.” This webinar can now be found on our website and provides insightful information regarding tax planning, insurance and how to determine the right aircraft for you.

    Click here to watch the full webinar.

     September 13, 2021
  • NAFA Administrator posted an article
    Amanda Applegate, Partner with Aerlex Law Group, discusses the seller's market in business aviation. see more

    Amanda Applegate, Partner with Aerlex Law Group, discusses the seller's market in business aviation.

    Inventory for many aircraft type, especially those of newer vintage, is significantly lower than it has been in over a decade. Additionally, transaction volume has increased. As a result, as attractive and popular aircraft are listed for sale, sellers are receiving multiple offers almost immediately. We are very much in a seller’s market. Many buyers are looking for aircraft and becoming increasingly frustrated that their desired aircraft is not available for sale and/or that when an aircraft is listed for sale that there are multiple competing offers. In today’s seller’s market, buyers and their representatives must avoid the race to the bottom and understand that the aircraft purchase process takes time. For example, establishing the ownership and operating structure for the aircraft takes time and the due diligence necessary on the aircraft prior to closing, such as the pre-purchase inspection and repair of discrepancies, takes time. Buyers must avoid skipping the necessary steps when acquiring an aircraft.

    Read full article here.

    This article was originally published by Aerlex Law Group on July 13, 2021.

  • NAFA Administrator posted an article
    Adam Meredith, AOPA Aviation Finance, answers your aviation finance questions. see more

    NAFA member Adam Meredith, President of AOPA Aviation Finance Company, answers your aviation finance questions.

    Question: I see on AOPA Finance that I can potentially finance an engine overhaul with sufficient equity in the plane. What are my options for financing a plane that will need an EO almost immediately after purchase? I am willing to put enough down on the note so that there is sufficient equity in the plane for an EO loan if I can roll that in. To be explicit, the plane is $37,500, and the EO estimate for that engine is $24,000. I am not sure what the equity requirement is, but let's say it is 40%. So, what I would hope is that I can get a loan  for $46,500 by putting down $15,000 on the plane, with the loan then completing the purchase price with $22,500, leaving $24K in the note for the EO. If the EO goes over that, I would just eat that cost myself.

    Answer: Rolling an overhaul into a purchase is a fairly simple process. As part of our internal review and the lenders’ underwriting, two values for the aircraft will be determined. One as-is for the purchase and a second with a zero-time engine. Financing can be up to 85% of the final value with the overhaul included. In your example, assuming value is roughly equal to cost, financing would look like $31,875 towards the purchase (85% of $37,500) and $20,400 towards the engine for a total loan of $52,275. The initial $31,875 would be disbursed at the time of purchase with the remaining $20,400 disbursed once the engine has been installed and signed off by the A&P. We would be happy to discuss the details further if you would like. Just give us a call at 800.627.5263.

    Read more.

    This article was originally published by AOPA Aviation Finance Company on July 7, 2021.

  • NAFA Administrator posted an article
    Aircraft registration numbers: Selecting a new registration number and waiting! see more

    NAFA member Amanda Applegate, Partner at Aerlex Law Group, discusses aircraft registration numbers.

    First-time aircraft buyers looking at a potential acquisition may not realize that the registration number painted on the fuselage or vertical stabilizer of the aircraft can be changed and personalized by the new owner. “Tail numbers” – the name often used when referring to aircraft registration numbers – can be chosen by an owner in much the same way as a “vanity” license plate for an automobile. When selecting a registration number for a U S. registered aircraft, the following rules apply:

    AN N-NUMBER CAN BE IN ANY OF THESE FORMATS:
    · One to five numbers (N12345)
    · One to four numbers followed by one letter (N1234Z)
    · One to three numbers followed by two letters (N123AZ) N-Numbers do not have:
    · A zero as the first number
    · The letters “I” or “0”

    Read full article here.

    This article was originally published by Aerlex Law Group on June 14, 2021.

  • NAFA Administrator posted an article
    NAFA member, Jared Maynard, Sr. Program Manager with Satcom Direct, discusses aircraft connectivity. see more

    NAFA member, Jared Maynard, Senior Program Manager, Gulfstream & Pre-owned Aircraft Programs, at Satcom Direct, covers the subject of Aircraft Connectivity. Topics covered include:

    • An explanation of Aircraft Connectivity for the first-time aircraft buyer.
    • Suggestions regarding connectivity upgrades for seasoned aircraft operators.
    • The connectivity possible based on aircraft size.
    • What the future holds relative to new connectivity systems and networks in development.
    • What connectivity might make sense relative to smaller and/or older aircraft.
    • Changes as a result of the COVID-19 pandemic likely to be long-lasting.

    This podcast was originally published by Asset Insight on May 3, 2021.

  • NAFA Administrator posted an article
    NAFA member, Asset Insight, shares their Season 2 Episode 7 Podcast: Consultants - Who Needs Them? see more

    This article was authored by NAFA member, David Wyndham, Vice President – Consulting Services, Asset Insight, LLC, and originally published in the December 2016 edition of AvBuyer Magazine.

    Subjects covered include:

    • The value brought by a Consultant to the decision-making process.
    • Why a Consultant may be viewed as an “aircraft therapist”.
    • What to consider when selecting a Consultant.
    • Why a Consultant should not be viewed as a decision-maker.
    • How to identify the right Consultant for an assignment.
    • Making sure the Consultant understands your expectations.
    • Compensation strategies when hiring a Consultant.

    Listen to Full Podcast here.

     

  • NAFA Administrator posted an article
    NAFA member, Jason Zilberbrand, VREF, discusses aircraft corrosion and how to prevent it. see more

    NAFA member, Jason Zilberbrand, President and CTO of VREF Aircraft Value Reference and Appraisal Services, discusses aircraft corrosion and how to find and prevent it.

    Let’s talk about one of the most significant aspects that can depreciate an aircraft immensely. We call it aircraft corrosion, and it can stop a potential buyer from ever closing a deal.

    Any corrosion on a plane is severe and can cause an aircraft to fail during flight. Various levels of decay have caused fatal and non-fatal crashes, including an England Airbus A330 in 2013, a Georgia ASA Embraer in 1995, and a Netherlands Boeing 747 in 1992 that claimed 43 lives. We see more corrosion now than ever before, and impacted airframes run the gamut from single-engine piston through commercial aircraft.

    The thing about aircraft corrosion is when an aircraft owner is told they have it, they sometimes find it hard to believe. But any pilot, mechanic, or aircraft owner with experience can tell when an aircraft is compromised because of corrosion.

    How do you keep an eye out for aircraft corrosion, treat it, and prevent it from happening in the future? Keep on reading.

    Read full article here.

    This article was originally published by VREF Aircraft Value Reference and Appraisal Services on April 28, 2021.