NAFA member NBAA welcomes FAA ruling on expanding aircraft ownership cycle. see more
Washington, DC, Nov. 17, 2022 – The National Business Aviation Association (NBAA) today welcomed the Federal Aviation Administration’s (FAA’s) direct final rule to extend the duration of aircraft registration certificates from three to seven years.
“We applaud the FAA for hearing our concerns over the current requirements and making this change,” said NBAA Director of Flight Operations and Regulations Brian Koester. “The new rule comes with tangible benefits that will help drive convenience and efficiency for business aircraft owners.”
This press release was originally published by NBAA on November 17, 2022.
Buying a Private Jet? Great! – Now How Are You Going to Crew It? see more
NAFA member, Stephen Hofer, President of Aerlex Law Group, discusses what you need to know when buying and operating a private jet.
These are boom times for private aviation. Record sales of both new and pre-owned aircraft. Unprecedented levels of flying in fractional, membership, jet card and charter programs. But that doesn’t mean that there aren’t some storm clouds looming on the horizon.
In the United States, would-be buyers who hope to take advantage of the last year of 100% accelerated depreciation are rushing to complete their acquisitions and get their newly acquired airplanes into active business usage before December 31, 2022 are facing unusual challenges. For one thing, most maintenance, repair and overhaul (MRO) facilities and other companies having aircraft inspection capabilities already have fully booked their slots for the remainder of the year. Buyers who are insistent on completing a careful and comprehensive pre-purchase inspection as a pre-condition to accepting their airplanes will find it increasingly difficult to find FAA-certificated aircraft and powerplant (A&P) mechanics who can perform the necessary evaluations and then sign off on a return to service. A similar problem faces buyers who may want to hire independent technical experts to oversee those inspections on the buyers’ behalf. Many tech reps already are fully committed through the end of the year.
Another problem facing buyers may not prevent them from closing on their purchases, but may have a significant impact on their ability to use their airplanes after they take delivery, both before and after the new year, and that’s the ongoing shortage of qualified pilots to fly those corporate and private aircraft.
This article was originally published in BusinessAir Magazine, October 2022, Volume 32, No. 10.
Q&A: Aircraft Hull Value Adjustments in Volatile Market Conditions see more
Today’s aircraft market conditions bring to light the importance of insurance and accurate hull values. If you have not consulted with your insurance agents, underwriters, or legal teams about your coverages and exclusions, the current hull value assigned to your aircraft could be off by millions.
Driven by unprecedented demand and record-low inventories, asset values are rapidly changing in almost every aviation market segment. Industry reference guides are unable to keep up. While these fluctuating market conditions remain, we recommend you consult with your insurance professionals at least twice a year to review hull value and adjust as needed.
NAFA member Ann Pollard, Aircraft Sales & Acquisitions for Duncan Aviation, recently sought expert advice from Michael McCray, Senior Vice President at Marsh JLT Specialty, to offer best practices about managing Agreed Hull Values policy adjustments in volatile market conditions.
This article was originally published by Duncan Aviation in April 2022.
Satellite Comms Market: What’s the Latest? see more
Satellite communications is a fast-evolving sector within Business Aviation. AvBuyer's Matt Harris caught up with NAFA member, Chris Moore, President of Satcom Direct, to discuss the latest developments and ask him about his predictions for the market.
Celebrating its 25th anniversary this year, Satcom Direct is founded on an understanding of ‘the value of time, and the importance of maximizing it’. In accordance with that founding principle, the company has developed a range of cutting-edge technologies that enable connection, wherever a business aircraft is located.
Today, it provides communications solutions aboard more than 7,000 aircraft.
Harnessing a powerful combination of tools, Satcom Direct is industry-renowned for its consistent, reliable connectivity across the globe. A portfolio of proprietary software, hardware, terrestrial infrastructure, cybersecurity solutions, and award-winning customer services enable the company to offer tailored data services for each individual business aircraft customer’s mission.
In addition, the company delivers educational resources that range from simple entry-into-service workshops, right up to certified qualifications for aviation IT professionals and cabin crew.
According to Chris Moore, President of Satcom Direct, “The aim is to enhance the passenger experience, improve operational efficiencies, and give back precious time by providing connectivity solutions beyond all expectations.”
This article was originally published by AvBuyer on March 14, 2022.
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.
This article was originally published by AvBuyer on February 14, 2022.
Duncan Aviation Joins National Aircraft Finance Association see more
FOR IMMEDIATE RELEASE: May 10, 2022
Contact: Tracey Cheek
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
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.
Wheels Up Joins National Aircraft Finance Association see more
FOR IMMEDIATE RELEASE: April 13, 2022
Contact: Tracey Cheek
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.
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.
This Asset Insight podcast was originally published by AvBuyer on December 10, 2021.
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.
This article was originally published by VREF on December 8, 2021.
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.
This article was originally published by AvBuyer on October 12, 2021.
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.”
This article was originally published by AOPA on September 1, 2021.
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.
This article was originally published by JSSI Parts & Leasing on August 2, 2021.
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.
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.
This article was originally published by Aerlex Law Group on July 13, 2021.
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.
This article was originally published by AOPA Aviation Finance Company on July 7, 2021.