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owning & operating an aircraft

  • 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:

    · 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.


  • NAFA Administrator posted an article
    NAFA member, Greg Reigel of Shackelford Law, discusses drafting Aircraft Mechanic Liens. see more

    NAFA member Gregory J. Reigel, Partner with Shackelford, Bowen, McKinley & Norton, LLP, discusses Aircraft Mechanic Liens.

    If you perform work, provide services, or furnish materials to an aircraft, you likely have the right to assert a lien against that aircraft.  A lien may also arise from a lien claimant’s storage of an aircraft. Aircraft mechanic liens are governed by state law.  And each state is a little bit different.  However, most states require that a lien statement be filed with the Federal Aviation Administration (“FAA”) within a certain period of time.

    What Does The FAA Require?

    In order for the FAA to accept and record a lien statement, it must include the following:

    1. The state or the specific law under which the lien is being claimed;
    2. A description of the aircraft including manufacturer, model, serial number, and registration number;
    3. The amount of the claim;
    4. The date on which the last labor, services, or materials were furnished on/to the aircraft; and
    5. Signature of the claimant showing appropriate title of the individual signing the statement.

    Read full article here.

    This article was originally published by Shackelford, Bowen, McKinley & Norton, LLP, on April 26, 2021. 

  • NAFA Administrator posted an article
    VREF's Jason Zilberbrand discusses what you need to know about annual airplane inspections. see more

    NAFA member Jason Zilberbrand, President & CTO of VREF Aircraft Value Reference & Appraisal Services, discusses annual airplane inspections.

    Is your aircraft due for its annual inspection? What do you actually know about this critical part of airplane ownership?

    Annual inspections keep your aircraft in safe, airworthy condition. You can address any issues before they cause an accident.

    Your inspection records are important when you sell your plane too. Good record-keeping and a history of making any necessary repairs can increase the resale value of your aircraft.

    Find out more about required aircraft inspections. You'll be able to make more informed decisions about the maintenance of your aircraft.

    Types of Required Aircraft Inspections

    Federal regulations require several types of aircraft inspections depending on how the airplane is used. The three main types are:

    • Annual inspections
    • 100-hour inspections
    • Progressive inspections

    Annual inspections apply to most aircraft. Any aircraft that carries passengers for hire needs 100-hour inspections as well.

    Progressive inspections are only available for certain applicants. High-usage fleets like flight schools often use progressive inspections to minimize downtime. Checks of aircraft components happen at fixed intervals.

    For example, if your plane would normally need a 100-hour inspection, you could do an inspection every 25 hours that would cover part of what the 100-hour inspection includes. After four such inspections, the 100-hour inspection would be considered complete.

    In addition to these three types of inspections, a plane must pass a preflight inspection before it can fly. Every pilot must make a preflight inspection before each flight.

    Title 14 of the Code of Federal Regulations defines the inspection standards. People often refer to these regulations as the FARs.

    Read full article here

    This article was originally published by VREF Aircraft Value Reference & Appraisal Services on April 13, 2021.

  • NAFA Administrator posted an article
    The value of private aviation comes to provide solutions to the different global challenges faced... see more

    NAFA member Western Aviation discusses the value of private aviation.

    Private aviation comes to provide solutions to the different global challenges faced by companies and individuals. Here are some reasons, companies rely on private aviation.

    Travel where the commercial airlines cannot. 

    Commercial airlines can reach around 450 airports worldwide but for private jets, on the other hand, these can reach more than 6000 airports worldwide, so the opportunities are endless really. In 2018, pilots surveyed by the NBAA reported that 42.5% of their flights were to towns with little or no airline service—and 31.5% of their flights were to destinations that have never been serviced by commercial airlines.   Business aviation helps companies go beyond the scope of a commercial flight, especially if your business needs to reach destinations that do not draw the demand of commercial airlines.  This is where business aviation can be your solution.

    Read full article here.

    This article was originally published by Western Aviation on April 22, 2021.

  • NAFA Administrator posted an article
    Important Clarification from the IRS for Owner Flights under Part 135 and its Impact on Aircraft Own see more

    NAFA member, Amanda Applegate, Partner at Aerlex Law Group, shares important IRS information for aircraft owners.

    For every aircraft purchaser, there is a lot of time and thought that should go into the aircraft ownership and operating structure.  Aircraft owners must consider both federal tax regulations and state tax regulations for the state where the aircraft will be based and also states the aircraft will be used frequently. In addition to the tax planning that should occur, there are also significant liability concerns an aircraft owner must take into consideration. Because an aircraft is a flying machine with millions of parts, the liability concerns for an aircraft owner are just as important, if not more so, as the tax planning. This is because when aircraft accidents or incidents occur, the payouts can be considerable and while the amount and type of insurance can reduce the liability concerns, strategic structural considerations can also help. Finally, and equally important to tax and liability considerations, is making sure the aircraft ownership and operating structure is in compliance with the federal aviation regulations (“FARS”), otherwise significant fines can occur or insurance policies can become void.

    As described above, aircraft ownership and operating structure has three important factors: tax, liability and regulatory. Just like a three-legged stool where each leg needs to be the same length, in aircraft ownership and operations planning, each factor must be given equal consideration. If one factor is focused on more than the other you could have an aircraft structure that does not work. For example, if the plan is created to provide a maximum amount of liability protection without understanding the constraints of the FARs, then the ownership and operating structure will likely violate the FARs. All three factors must be considered and often the final ownership and operating structure is a compromise between the three factors. At the end of the day the plan may not be the best plan from a tax or liability stand point but it is a plan that has adequate tax planning and liability protection, while still in compliance with the FARs.

    The recent pre-publication final rule by the United States Internal Revenue Service (“IRS”) on the Tax Cuts and Jobs Act (TCJA) as it relates to aircraft management companies is helpful to owners because the factors do not require as much of a trade-off any longer. The rule states, among many other things, that when an owner flies on its own aircraft under Part 135, that the 7.5% federal excise tax (“FET”) does not apply. The final rule also clarifies that certain common ownership structure planning tools including owner trusts and qualified leases will also not be subject to FET for owner/lessee flown Part 135 flights when on the aircraft owned/leased. This final rule may change the ownership and operating structure plan for new buyers and for current aircraft owners. The rule also confirms that FET is not due on any management fees paid to a management company for its services.

    In the past when an owner elected to fly flights on its own aircraft under Part 91, even when engaging a full-service management company, it did so as part of its ownership and operating structure plan to avoid FET on owner flights. However, it was a trade-off because when an owner flies under Part 91, the owner of the aircraft has operational control and therefore more potential liability. However, now, under the IRS rules, if an owner hires a full-service management company that has a Part 135 certificate, the aircraft owner may elect to have all of its flights flown under Part 135, with the management company in operational control and not have to pay FET. Under the IRS rule, FET is not applicable on owner flights when owner is flying on its own aircraft. The forgoing applies to the aircraft owning entity or another entity that qualifies under the rule, such as a beneficiary under an owner trust or a lessee under a qualified lease.

    With the recent pre-publication final rule by the IRS related to the TCJA as it relates to aircraft management companies, new aircraft purchasers may have to make fewer compromises during its aircraft ownership and operating structure planning. Additionally, current aircraft owners may consider restructuring their ownership and operating structure to take into account the new IRS rules related to FET.

    This article was originally published by Aerlex Law Group on March 2, 2021.

  • NAFA Administrator posted an article
    What's the True Value of Rolls-Royce CorporateCare? see more

    NAFA member Andrew Robinson, Senior Vice President of Services & Customer Support for Rolls-Royce, discusses with fellow NAFA Member Anthony Kioussis, President & CEO of Asset Insight, LLC, the importance of an engine maintenance program, and the technological and digital advancements made by Rolls-Royce in this Asset Insight podcast.

    Specific topics covered include:

    • The importance of an engine Program and the true value of CorporateCare.
    • What led Rolls-Royce to upgrade CorporateCare to Corporate Enhanced?
    • The additional benefits now offered by CorporateCare Enhanced.
    • Technology and digital advancements made by Rolls-Royce, in 2020, and what the industry should expect to see in 2021.
    • Electronic Engine Health Monitoring – how it works and why it is important.
    • Virtual Training, and how it is improving customer support.
    • Sustainable Aviation Fuel, and where does Rolls-Royce stand in this initiative.

    About Andrew Robinson

    Andrew “Andy” Robinson joined Rolls-Royce over 40 years ago. Today, he is Senior Vice President Customers and Services, Business Aviation at Rolls-Royce.  In this role, Andy leads the company’s worldwide Business Aviation services activities. He is based at the Rolls-Royce North America headquarters in Northern Virginia

    During his career, Andy has held a variety of increasingly senior positions across a wide array of Rolls-Royce customer-facing businesses and functions. Most recently Andy served as Vice President – Customers Services, International Aero Engines (IAE), a joint venture between Rolls-Royce, Pratt & Whitney, JAEC, and MTU. In this role, he led global customer services for over 4,000 installed engines with over 190 operators worldwide.

    From 2005-2008, Andy served as IAE’s Regional Vice President Asia and Middle East where he directed all aspects of IAE business and played a leading role in securing over $6 billion in new business in that region.

    Prior to his IAE secondment, Andy worked in a number of Rolls-Royce Civil Aerospace senior customer-facing roles with both major airlines and airframe manufacturers. During his tenure, he has been based in a variety of countries including India, Singapore, New Zealand, Australia, and Holland.

    Andy graduated from Derby University in Kedleston, England. A native of the United Kingdom Andy resides in Northern Virginia with his wife and two children.


    Rolls-Royce is a leading engine supplier in business aviation, powering some of the largest, fastest, and longest-range business jets available. Rolls-Royce powers aircraft built by Bombardier, Cessna, Embraer, and Gulfstream. Our products and services include the Pearl, BR725, BR710, AE3007, Tay, Spey, MR&O, and CorporateCare Enhanced, the leading solution for engine care. This maintenance program offers increased asset liquidity, nacelle coverage, and complete engine management, from line maintenance to shop visits. CorporateCare Enhanced, the comprehensive, fixed-cost engine maintenance management plan, provides customers with a global support infrastructure which includes: Engine Health Monitoring, a worldwide network of Authorized Service Centers and globally distributed spare parts and engines, all managed by our dedicated 24/7 Business Aircraft Availability Center. 

    To view the podcast and/or read the transcript for this podcast, click here.

  • NAFA Administrator posted an article
    Past Maintenance Predicts Future Value see more

    NAFA member Anthony Kioussis, President & CEO of Asset Insight, discusses how aircraft maintenance effects your aircraft's value with Gil Wolin, Business Aviation Advisor Publisher, in this Business Aviation Advisor Above & Beyond Podcast.

    It’s so tempting. The inventory of preowned turbine aircraft for sale was down near 7.2% in late March, according to JETNET. This might be a great time to sell or trade your current aircraft, as market values appear to be near all-time highs.

    Market value depends not only on total hours flown, but also on your aircraft’s maintenance record: how close it is to major inspections, overhauls, updates, or refurbs.

    In Past Maintenance Predicts Future Value, Asset Insight’s Tony Kioussis discusses how to calculate the impact of your aircraft’s current maintenance condition on its current and future market value – and how to use those data to manage your investment maintenance.

    When there’s more to be said than space and copy deadlines allow, you can rely on the Business Aviation Advisor “Above and Beyond” podcast series to get you the information you need, enabling you to make the most of your aviation investments.

    Click here to listen to podcast.

    This podcast was originally published by Business Aviation Advisor on April 4, 2021.

  • NAFA Administrator posted an article
    What You Need to Know about Jet Maintenance see more

    NAFA member, Thomas W. Mitchell, Executive Vice President of Essex Aviation, shares what you need to know about Jet Maintenance.

    Like any mechanical piece of equipment, business aircraft must undergo routine maintenance in order to ensure proper operation and airworthiness. To that end, most private jets strictly adhere to a maintenance timeline: a series of inspections based on age and utilization as outlined by the Federal Aviation Administration (FAA), the aircraft manufacturer and other governing bodies.

    In this beginner’s guide to jet maintenance, we’ll provide a high-level look at those timelines, as well as the various elements that go into keeping an aircraft in peak operating condition.

    Table of Contents

    Key Terminology

    Let’s begin by covering some general terminology useful to both engine and airframe inspections:

    • Life-limited Parts (LLPs): An LLP is “any part for which a mandatory replacement limit is specified in the type design, the Instructions for Continued Airworthiness, or the maintenance manual.” Generally, LLPs are tracked by total time (hours) in service, or by the total number of cycles (or aircraft landings) accumulated. As would be expected, an LLP is often associated with an environment of heat or stress, such as within an engine; although an LLP may appear to be in good condition, it must be removed from service at its prescribed interval.
    • Maintenance Repair and Overhaul (MRO): The airline industry uses the term MRO to identify a maintenance service company. With private aircraft in the U.S., the term is typically used to refer to larger, full service aircraft maintenance providers. Depending on the aircraft in question and the inspection requirements, there are multiple maintenance facilities that might not be formally recognized or referred to as MROs but are still fully capable to perform inspections and repairs.
    • Major Repairs: According to the FAA, a major repair is any repair “that, if improperly done, might appreciably affect weight, balance, structural strength, performance, powerplant operation, flight characteristics, or other qualities affecting airworthiness” or “that is not done according to accepted practices or cannot be done by elementary operations.” Major repairs are typically required following an event in which an aircraft is damaged. Note: In cases where major repairs are administered, it is important to be aware whether timeframes between inspections that were originally assigned to the repaired area have been reduced.
    • On Condition: Over the past few decades, a significant number of components, including turbine engines, have been approved to operate “On Condition.” Many airframe parts are visually inspected at certain intervals but, generally, one can assume that as long as a component operates correctly, isn’t leaking fluid, isn’t corroded and so on, it can continue in service On Condition. A turbine engine that is considered On Condition utilizes two primary data sources to ensure the engine is in good condition:
      • Trend monitoring, which is a sophisticated means of measuring changes in engine performance by way of indications; and
      • Borescope inspections, in which a technician utilizes video equipment to determine the internal condition of an engine without invasive engine disassembly.
      • Note that the requirements of LLPs remain in full effect regardless whether an aircraft or engine utilizes On Condition tracking for maintenance or inspections.
    • Time Between Overhauls (TBO): As its name implies, a TBO is the time period recommended by an aircraft manufacturer before an engine or other component requires overhaul. Two major components that come to mind when thinking of TBO are landing gear and engines. That said, there are normally many components associated with the aircraft that have prescribed TBO, which is typically tracked by hours, landings or calendar time.
    • Supplemental Type Certificates (STCs): An STC is essentially an FAA-approved modification to an aircraft. When it comes to ongoing aircraft maintenance, it is important to ensure that any ongoing maintenance requirements related to an STC are followed. These requirements are known as Instructions for Continued Awareness (ICAs) and are included within STC records. ICAs are critical because they hold equal importance to the aircraft’s maintenance manual during inspections.
    • Wear and Tear Repairs: Wear and tear repairs refer to any basic service necessary to repair damage resulting from expected normal and regular use. Such wear and tear often includes everything from cosmetic damage (chipped paint, oil streaks and so on) to areas such as the aircraft’s tires, brakes, control cables and windows. Regarding turbine engines, it is also helpful to know some basic terminology:
    • Core Zone Inspection (CZI): A CZI is a term that applies to a major inspection interval on turbofan engines, typically used with Honeywell turbine engine models. CZIs are equivalent to an engine overhaul, which require certified engine maintenance providers to remove and completely disassemble and retest the engine.
    • Hot Section Inspection (HSI): An HSI is also a significant engine inspection, one that examines the condition of limited engine components. HSIs primarily focus on the portion of a jet engine where high temperatures occur, including turbine discs, turbine blades and the combustion chamber. Similar to a Major Periodic Inspection (listed below), an HSI is often scheduled at the midway point of a scheduled engine overhaul interval, or if the performance of an engine deteriorates.
    • Jet Engine Overhaul: Depending on the engine manufacturer, different terminology is used to refer to an overhaul; for example, Honeywell uses the term CZI, while Rolls Royce prefers the term “Shop Visit.” Pratt and Whitney and GE generally use the term overhaul for this inspection task. Regardless which term is used, a jet engine overhaul is the most comprehensive scheduled inspection an engine undergoes. A jet engine overhaul requires the complete disassembly and reassembly of the engine, followed by a recertification and rigorous testing process in order to approve it for future service.
    • Major Periodic Inspections (MPI): Like CZI, the term MPI is also uniquely used by Honeywell, which is a popular turbine engine manufacturer. However, the essence of this inspection is similar to that of an HSI and is normally required after accumulating 50% of the hours required prior to a scheduled CZI.

    Why is Jet Maintenance Important?

    Similar to an automobile, business aircraft experience wear and tear — but, in most cases, aircraft are subject to more severe conditions that require preventative maintenance, servicing, corrosion control and ongoing monitoring to ensure safety. These services are designed to ensure that all parts and components are serviceable at the time of flight, and that the engines and systems are operating at peak performance levels.

    In addition to ensuring peak performance, regularly scheduled maintenance also:

    • Helps prevent canceled flights due to parts and components failure
    • Complies with regulations and standards imposed by relevant governing bodies
    • Ensures passenger comfort and safety
    • Extends the life of the aircraft
    • Allows for a better overall ownership and flying experience

    How Frequently Should Your Aircraft Undergo Maintenance?

    As we mentioned at the top of this article, there are multiple contributors responsible for setting jet maintenance timelines to ensure that private aircraft receive necessary attention on a routine basis.

    Chief among these governing bodies is the aircraft manufacturer, which will specify the appropriate inspection intervals and TBO depending on the make and model of the aircraft, as well as when it was built, calendar time, the total number of hours flown and the total number of landings. In most cases, or unless safety concerns arise, the FAA will adopt the manufacturer’s inspection as an approved inspection program for that aircraft. To that end, private aircraft owners are advised to consult the manufacturer’s inspection guide for their particular make and model of aircraft; these should be made readily available to the owner at point of purchase but are otherwise available upon request.

    Generally speaking, for corporate aircraft, six years between major maintenance events is common; likewise, 5,000 landings is often a major milestone for the aircraft’s landing gear to be overhauled. Finally, 1,200 and 2,400 hours flown are generally considered significant flight time intervals and would also require more invasive inspections. Emerging technologies, such as real-time engine monitoring services, make it easier for operators to assess when aircraft might need maintenance before its prescribed or scheduled timelines.

    As previously mentioned, the FAA normally defers to the manufacturer’s recommended guidelines for maintenance timelines and requirements. It’s important to note that the FAA’s regulations and maintenance requirements only regulate those aircraft registered in the U.S.; other countries have their own regulatory authorities, so it’s in a private aircraft owner’s best interest to consult the relevant authorities when following an approved maintenance schedule.

    How Much Does Private Jet Maintenance Cost?

    There is no easy answer to the question of how much jet maintenance costs. Similar to a manufacturer’s unique maintenance guidelines, maintenance costs are dependent upon a number of factors — calendar time, the total number of hours flown and the total number of landings, in particular, dictate whether an aircraft requires routine maintenance or possibly major overhauls and repairs.

    There are two ways to approach private jet maintenance costs: The first is a pay-as-you-go option, which enables owners to forecast costs based on the age of their aircraft and current and prior usage. The second is to enroll in various maintenance programs. While maintenance programs do vary, you pay an hourly rate, which is invoiced monthly; this hourly rate covers a determined and defined level of maintenance, much like a warranty. Most new aircraft come with an optional manufacturer’s maintenance program, and pre-owned aircraft can generally be enrolled in either a manufacturer’s program or third-party program.

    Whether you choose to pursue a pay-as-you-go approach or pay into a maintenance program is entirely dependent upon your unique desire and requirements. With that said, it is generally advisable to enroll engines in a maintenance program because it can protect owners from exposure to high emergency repair costs.

    Certain engine maintenance programs might also come in handy for routine engine repairs and maintenance. Jet engine overhauls — which are infrequent — generally last between 60 and 90 days. During this time, the MRO can provide the aircraft owner with a loaner engine for a per-hour cost based on the engine model. Jet engine maintenance programs typically cover the cost of access to a loaner engine but, rather than pay a standard rental fee, the owner might only be responsible for the direct operating cost per hours used of the loaner engine when enrolled in a maintenance program.

    Who Should Maintain Your Aircraft?

    Where you should take your aircraft for jet maintenance is entirely dependent upon the availability of a service provider recognized for high quality service on your particular aircraft model. Manufacturers generally offer some sort of warranty for newer aircraft, so, if you’ve acquired a new aircraft, it might make the most sense to bring it to a manufacturer-approved service center for MRO.

    For older aircraft, we often advise our clients to look for specialty shops with experience working with their particular model aircraft, especially if it is a “classic” (that is, no longer in current production). These facilities do not need to be approved by the manufacturer, however, they must be FAA-approved. Although you could, technically, still bring an older model aircraft to a manufacturer-approved facility for service, there’s the chance that the manufacturer will be constrained from offering beneficial options. These options may include repairing a component (as opposed to replacing it) and utilizing approved aftermarket or serviceable products that could provide considerable cost-saving advantages.

    For minor inspections and general maintenance, it’s best to look for local maintenance providers because the expense of flying your aircraft to a shop that’s geographically distant could outweigh the cost of the actual maintenance event. That said, it’s important that the capability of the local facility align with the complexity of the work needed. For example, if you’ve scheduled an inspection to coincide with interior or paint work, it is in your best interest to look for a single facility that can perform all of these tasks rather than go to multiple shops. An exception to both of these recommendations is, of course, the need for jet engine repairs. Jet engine repairs might involve complex activities that require the engine to be removed from the aircraft and delivered to a separate facility for necessary repairs.

    Before selecting a maintenance provider, we recommend that you secure at least three separate bids from appropriate MROs. If you need a milestone inspection, you’ll want to ensure that any shops bidding on the project have the necessary tooling and labor resources to get the job done. A private aviation consultant is a valuable asset when evaluating bids from different jet maintenance providers because they can leverage their industry experience to help you identify which one best meets your particular maintenance requirements.

    Find a Qualified Private Jet Maintenance Provider with Essex Aviation

    When it comes finding the right jet maintenance provider, the experts at Essex Aviation are your most trusted allies. We will:

    • Evaluate different facilities according to your customized needs, using our vast network of industry connections to assess the capabilities of different service centers
    • Qualify various shops and identify which is the most capable based on the requirements of the job, including the warranty they provide for their work
    • Provide onsite services during inspections to advocate for your interests and ensure that the best solution is selected
    • Filter approvals and determine which ones deserve your attention
    • Validate charges based on whether they’re true, accurate or even necessary
    • Finalize and review return-to-service paperwork to ensure that all entries, part numbers, serial numbers, work completed and so on are accurate before they’re entered into your log books or permanent records
    • Identify and rectify any discrepancies in paperwork and track down any missing documentation in order to protect the future value of your aircraft

    As you can see, Essex Aviation is prepared to be your representative throughout the entire private jet maintenance process — and with over 100 years of combined aviation industry experience, we have the necessary skills and expertise to see the job through and ensure that it’s done right, the first time.

    This article was originally published by Essex Aviation on February 23, 2021.

  • NAFA Administrator posted an article
    Used Aircraft Maintenance & Marketability Analysis – February 2021 see more

    NAFA member, Tony Kioussis, President and CEO of Asset Insight, LLC, shares the February 2021 Used Aircraft Maintenance & Marketability Analysis. 

    Continuing a trend dating back to July 2020, Asset Insight’s tracked inventory fleet posted another reduction in February, although the decrease was much smaller than in recent months. Which business aircraft were impacted the most? Tony Kioussis explores.

    Asset Insight’s February 28, 2021 market analysis covering 134 fixed-wing models, and 1,737 aircraft listed for sale revealed an eighth consecutive monthly contraction (0.5%) of the tracked fleet for sale.

    A decrease in market transactions had a nominally positive effect on the Quality Rating, improving it to 5.354 from January’s 5.348, keeping the for sale fleet within the ‘Excellent’ range for the thirteenth consecutive month (based on Asset Insight’s scale of -2.5 to 10).

    February’s Aircraft Value Trends

    The tracked fleet’s average Ask Price increased 1.4% in February, following three consecutive monthly declines. By category, however, the results were mixed:

    • Large Jet average Ask Prices fell another 1.4% to post the group’s second consecutive 12-month low figure.
    • Mid-Size Jet prices rose 1.8%, following January’s 12-month low.
    • Light Jet ask prices decreased 2.2% to post a second consecutive 12-month low.
    • Turboprop ask prices increased 1.6% to better the group’s 12-month average.

    February’s Fleet for Sale Trends

    Following seven consecutive monthly decreases in availability, Asset Insight’s tracked fleet posted another 0.5% reduction (nine units) during February, with only 8.3% of the active fleet being listed for sale.

    • Large Jets: Inventory increased a nominal 0.5% (two units), and 7.1% of the active fleet is listed for sale.
    • Mid-Size Jets: A single unit decrease equated to a 0.2% reduction in our tracked Mid-Size Jet fleet. Currently, 10.0% of the active fleet is available for purchase.
    • Light Jets: Inventory decreased 2.2% (12 units), representing the group’s eighth consecutive monthly decline. Light Jet fleet availability now stands at 8.7%.
    • Turboprop: This group saw its first increase (0.5% or two units), following six consecutive monthly decreases. Still, only 6.3% of the active Turboprop fleet is available for sale.

    February’s Maintenance Exposure Trends

    Following the Quality Rating’s path, Maintenance Exposure, an aircraft accumulated/embedded maintenance expense, improved (decreased) by another 0.2% in February. This shows that upcoming maintenance events for the listed fleet will be slightly less expensive.

    All four groups improved/decreased, and individual figures were as follows…

    • Large Jets: Improved/decreased 1.3% to a figure only slightly worse than the 12-month average.
    • Mid-Size Jets: Improved/decreased 1.2% to post the group’s lowest (best) figure of the past twelve months.
    • Light Jets: Improved/decreased 0.8% to a figure that remained above (worse than) the 12-month average.
    • Turboprops: Improved/decreased 0.3% to post the group’s fifth consecutive 12-month low/best figure.

    February’s ETP Ratio Trend

    The overall tracked inventory’s ETP Ratio increased/worsened to 73.5%, a figure just shy of the 12-month high (worst) value.

    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 increases, in many cases by more than 30%.

    During Q4 2020, aircraft whose ETP Ratio was 40% or greater were listed for sale 64% longer than assets with an ETP Ratio below 40% (277 days versus 454 days). How did each group fare during February?

    • Turboprops: For the fifteenth consecutive month, Turboprops registered the best/lowest ETP Ratio. February’s 39.8% was equal to January’s Ratio, placing Turboprops below the 40% excessive Maintenance Exposure point for the third consecutive month.
    • Large Jets: Maintaining second position, Large Jets had a Ratio of 66.6% - but that figure exceeded the group’s 12-month average.
    • Mid-Size Jets: Posting a second consecutive monthly improvement (decrease) Mid-Size Jets posted a Ratio of 69.3%, just above the group’s 12-month low/best.
    • Light Jets: Establishing another record-high (worst ever) figure of 108.0%, while this will not help most Light Jet sellers, February’s ETP Ratio is only mildly surprising given the age of assets comprising this group’s inventory at present.

    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 February 2021.

    Continue to full report.


    This article was originally published by AvBuyer on March 18, 2021.