Global economic growth in 2017 was at its strongest since 2011. As consumers continue to grow more confident and more have expendable income, the number of commercial airline passengers is also likely to increase. In fact, the International Air Transport Association (IATA) expects a nearly 6% rise in passenger numbers to 4.3 billion in 2018. This will, in turn, drive demand for private jets, and those in the private aviation industry will need about 21,000 jets to keep up. This is good news for business and private aviation growth, but what do these numbers mean for individuals or company leaders looking to purchase or sell jets?
More people flying private
The first thing to note is that more individuals are choosing to fly private. Argus International TRAQPak data showed business aircraft activity in the U.S. and Canada continuing to increase year over year in March 2018. Activity for large-cabin jets was up 4.7%, and midsize jets also saw a 4.4% year-over-year increase. In addition, charter activity also increased by 7.7%. These increases are due, in part, to a significant surge in first-time private flyers, including more first-time jet owners. Another factor that’s spurred this increase is charter companies offering more flexible pricing and scheduling models, leading industry analysts to predict a future rise in the number of individuals who want to fly privately but can’t afford to purchase.
Pre-owned versus new markets — and their caveats
This upswing in private and business aviation is good news for manufacturers — and those in the pre-owned market. With aircraft demand up overall, more jet buyers are looking at pre-owned models rather than waiting for new aircraft deliveries that are still years away. The 100% expensing option for used aircraft under the federal tax overhaul will likely give the market a boost as well.
However, as pre-owned aircraft sales climb, jet brokers’ inventories are also falling off and were down to 9.4% of the business jet fleet in March 2018. Although the market swung to favor sellers in February of the same year, market prices have now stabilized, giving buyers reason to purchase. With such limited inventories and a stable market, those who are holding off in hopes of further price reductions may want to rethink their plans — or end up risking a very long wait.
Off-market aircraft
Of course, those who are ready to buy but not finding what they’re looking for can search off market. Off-market aircraft includes inventory that owners are not actively listing or advertising but may be willing to sell for the right price. However, this “off-market” definition could apply to 99% of the pre-owned business jet fleet. Although buyers may be pleased about the increase in the pool of aircraft potentially available for sale, off-market transactions very often lack transparency. Without listings, it’s difficult for potential buyers to know their options or compare aircraft features and prices. Therefore, in off-market deals, it’s important to involve a broker who can invest time investigating the aircraft to avoid problems during or, worse, after the transaction.
ADS-B Out compliance
One of those potential problems and another factor shaking up jet market dynamics is the looming 2020 ADS-B Out compliance deadline. With approximately 46% of the pre-owned business jets available on the market being more than 20 years old and the deadline fast approaching, installing ADS-B equipment can be time- and cost-prohibitive for many would-be buyers. This will likely leave many owners of aging aircraft grounded unless they purchase already-upgraded jets or buy new. And for those still planning to buy used, ADS-B homework will be necessary to acquire an aircraft that has the mandated upgrades to fly after 2020.
Today’s private and business jet market is a tricky landscape with so many factors affecting both new and pre-owned jets. Those wanting to purchase or sell jets should take heed and seek help from a professional who understands and knows how to navigate the market — and is willing to go the extra mile to get the best deal.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Brexit continues to cast uncertainty over business aviation in the U.K., European Union (EU), as well as the United States. Industry insiders in these and other areas who regularly conduct business flights into and out of the U.K. are looking toward an unsure future. As we reported shortly after the Brexit vote, U.K. voters’ decision to leave the EU left many in the industry wondering whether agreements put in place before the vote will remain, undergo modifications, or disappear completely in favor of new legislation. Today, two years later, the potential outcome is not much clearer and many still wonder how the breakup will affect international business aviation, of which the U.K. is a vital part. With the actual withdrawal set to take place in March 2019 with a subsequent 21-month transition period, all involved have a lot of work to do to lessen Brexit’s effects on business aviation.
As a member of the EU, the U.K. enjoyed less restrictive air travel between Europe, the United States, and several other countries due to legislation such as the European Common Aviation Area (ECAA) and open skies agreement. These agreements as well as other safety and legal-related EU membership aviation benefits may now be in jeopardy.
Because of this, former Federal Aviation Administration (FAA) administrator Michael P. Huerta warned the U.K. in December 2017 that the U.S. needs clarity about how the U.K. will handle these business aviation safety and legal issues after it leaves the EU. Without that clarity, costly disruptions to transatlantic trade could occur. Huerta added that, if that clarification did not come soon, the FAA would need to work on multiple potential post-Brexit scenarios, a much costlier strategy.
Currently, the U.K. is a member of the European Aviation Safety Agency (EASA), which coordinates rules and regulations governing air safety across Europe. If the U.K. chooses to continue following EASA regulations post-Brexit, the transition would be a simple, straightforward matter. If, on the other hand, the U.K. were to choose to develop its own regulations, the process could prove more difficult and time-consuming.
In other efforts to help avoid costly disruptions in business aviation, several organizations are pursuing initiatives to further collaboration between the U.S. and EU. FAA and EU officials signed an amendment to the Aviation Safety Agreement involving reciprocal acceptance of approvals pertaining to flight simulator training devices and pilot licensing. The agreement also promotes collaboration on air traffic safety oversight, which will reduce resource duplication and allow better resources allocation between the two entities.
Another initiative, an Air Traffic Management (ATM) amendment to further transatlantic cooperation, expands ATM collaboration to better address NextGen and Sesar modernization programs. “The expanded agreement will now cover the full life cycle of air traffic management modernization activities from development to deployment,” according to the FAA.
Future scenarios
In addition to these EU and U.S. accords, the European Business Aviation Association (EBAA) is pushing for U.K. and EU negotiators to preserve their aviation relationship to reduce potentially detrimental effects on business aviation. It has outlined six possible scenarios for the future.
The status quo remains. This is not likely unless the U.K. holds another election and voters decide to remain in the EU.
The U.K. joins the European Economic Area. Countries such as Norway and Iceland use this model.
The U.K. becomes part of the European Common Aviation Area (ECAA).
Negotiators reach a U.K.-EU bilateral aviation agreement. This is known as the Swiss model.
The U.K. reaches no aviation deal. In this case, parties would revert to pre-EU agreements.
The U.K. negotiates new air service agreements with the EU or EU member countries.
The best-case scenario, according to the EBAA, is to maintain existing relationships to the extent possible. The best way for this to happen is for the U.K. to join the European Economic Area.
Needless to say, many in the business aviation industry, not just in Europe, are concerned. Some are worried that any aviation agreements will need to be part of overarching trade agreements or that agreements will be made for the entire aviation industry without input from those in the business aviation sector. Whatever happens, business aviation industry stakeholders must prepare to adjust quickly to reduce any negative impacts.
In 2017, United States-registered business jets saw 62.5% fewer fatalities. That’s certainly great news, but does it mean those in the private and business jet industry reached their safety goals and can congratulate one another on a job well done? In short, no. Aviation industry professionals should never become complacent over safety issues. Hazards and safety threats will always exist, so focusing on past accomplishments does not equate to safety assurance moving forward. However, savvy jet owners and travelers can look to past safety successes to guide their decisions as they continue to build on this culture of safety.
Making business aviation safer
Through dedication and perseverance, aviation professionals are making the industry safer every day, working to decrease flying-related vulnerabilities. But while safety gaps still exist, organizational leaders are taking steps to discover and mitigate them.
NTSB — The National Transportation Safety Board (NTSB) hosts seminars to help jet operators with communications when aviation accidents occur. Aircraft operators involved in accident investigations can provide information valuable in preventing similar accidents, but strict guidelines govern the information they can and cannot share. While their insights are invaluable, much of the information they contribute cannot be shared publicly before its official release as it can jeopardize investigations.
ACSF — The 2018 Air Charter Safety Foundation (ACSF) 2018 Safety Symposium focused on procedural noncompliance and the resulting devastating consequences that can occur when pilots don’t adhere to strict safety measures. Discussions centered around the various causes of noncompliance and how best to balance operations with safety.
GHSS — Aviation safety initiatives are not focused solely on in-air safety. The first Ground Handling Safety Symposium (GHSS) was held in Washington, D.C., in late 2017, allowing industry insiders to discuss how to keep ground operations safe. The primary focus was on taking a business approach to safety by using safety management systems (SMS) to identify and mitigate safety concerns.
Top safety focus areas
What types of concerns should those in aviation focus on? In the spirit of making the industry ever more safe, the National Business Aviation Association’s annual “Top Safety Focus Areas” is out — and, once again, runway excursions are a leading concern. The NBAA reports that almost a third of business aviation accidents are due to veering off runways during takeoffs and landings, making runway excursions “the most common type of accident.” Most of these incidents are preventable if flight crews follow best practices to mitigate risks.
Others on the safety list include loss of control inflight (LOC-I), single-pilot operation safety, procedural compliance, as well as ground handling and taxi incidents. The NBAA Safety Committee came up with the list and will be working with regulators and stakeholders to identify effective methods for lessening these risks.
Safety management systems
To help alleviate these concerns and more, business and private aviation insiders can use SMS. An SMS is an organization-wide structured approach to proactively managing business aviation hazards and risks, helping ensure all involved handle safety management with the same urgency as other business processes. According to the AviationPros article, these are the four pillars of safety support in effective SMS initiatives:
Safety policy — A written statement outlining personal or company objectives that includes an emergency response plan
Safety risk management — A safety reporting system to assess incident reports and allow those involved to take steps to stop dangerous practices
Safety assurance — An analysis of the effectiveness of any measures put in place with opportunities to make changes where needed
Safety promotion — Continual safety goal education and periodic SMS training
Safety is an ongoing effort, with the goal to continuously make aviation safer for all. With persistence, vigilance, and resolution, those in private and business aviation can continue to make the industry as safe as possible.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
In 2013, the government shut down for 16 days due to budget issues. Because the aviation industry is heavily regulated, this shutdown affected many services and organizations, and those throughout the industry felt its lasting damage. Despite concerned members of several aviation groups urging politicians not to shut certain services down — most notably the FAA Aircraft Registry — the brief shutdown in January 2018 highlighted one obvious fact: The business aviation industry is vulnerable.
Government shutdowns
Back in 2013, the government failed to appropriate funding for fiscal year 2014 and closed down most routine government activities between Oct. 1 and 16. Hundreds of thousands of nonessential federal employees were furloughed, and a million more federal workers were required to work with no guaranteed payment date. The most recent shutdown went into effect Jan. 20 and ended Jan. 22 after Congress and President Donald Trump agreed to legislation to restore government funding for another three weeks, according to the NBAA article. On March 23, additional legislation put into effect an $18 billion FAA budget as part of the spending package that will keep the government functioning through September.
Shutdowns and business aviation
During the 2013 government shutdown, the U.S. Department of Transportation (DOT) closed the FAA Aircraft Registry and interrupted hundreds of aircraft deals, resulting in nearly $2 billion in losses. The furloughs did not affect those working in safety-centered positions, such as air traffic controllers and aviation inspectors. And although these essential positions remained filled in 2013, shutdowns also impact “the aircraft registry, aviation rulemaking, NextGen activities, airman certificate issuance and approvals of unmanned aircraft systems.”
Just how important is the aircraft registry? According to FAA data, at least 10,000 aircraft registrations expire each month. Not only can aircraft owners not renew their registrations during shutdowns but related activities such as aircraft purchase and sale maintenance transactions, ATC modernization efforts, aeromedical case reviews, as well as aircraft imports and exports also come to a halt, according to the AINonline article on vulnerability. And, while those involved in safety-sensitive positions were not affected in the 2018 shutdown — which was also the case in 2013 — the furlough still impacted “17,859 of the FAA’s 45,668 employees.”
Fighting back
Immediately after the Jan. 20 shutdown, the Aircraft Owners and Pilots Association (AOPA), along with five other general aviation groups, sent a letter to the DOT requesting it reopen the aircraft registry. The letter states, “We respectfully submit that DOT has authority under the Anti-deficiency Act,1 to staff the U.S. Registry as it is vital to protection of human life and property, and necessary for the U.S. to fulfill its ongoing international legal obligations under the Chicago Convention and the Convention on International Interests in Mobile Equipment (‘Cape Town Convention’) relating to the registration of aircraft.”
On its webpage dedicated to the impact of government shutdowns on business aviation, the NBAA also weighed in: “The government shutdown has effectively brought to a halt the U.S. general aviation industry and is jeopardizing the future of thousands of U.S. small businesses.” It added that the U.S. is the world leader in general aviation and the shutdown would affect more than one million Americans working in companies that provide aircraft maintenance, sell fuel, construct hangars, and facilitate aircraft sales.
For now, politicians have averted another government shutdown and its effects on business and private aviation. Unfortunately, the potential for a shutdown will likely remain for the foreseeable future. The NBAA is urging its members to act now to prevent future shutdowns from closing the FAA Aircraft Registry and related services. The organization is collecting reports of real-world scenarios that impacted industry insiders who hope these efforts and continued pressure from general aviation groups and individuals will help keep business aviation from being impacted during any future government shutdowns.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Are you in the market for a new private or business jet? If you’ve purchased an aircraft in the past, you know it’s a complicated, time-consuming process. You don’t just stroll into the nearest dealership, sign some papers, offer a handshake, and walk out as a new jet owner. Those looking to acquire jets have numerous decisions to consider, such as ownership type, whether to purchase new or used, various usage requirements, and more. If you’re thinking of your next jet purchase as a DIY project, however, you’re likely to get in trouble. There are a few mistakes and pitfalls inexperienced jet buyers should look out for.
Don’t let nonexperts sway your decision
You wouldn’t purchase a new car based on the advice of your aunt’s next-door neighbor. Well, you might, but you’ll also likely regret it. A station wagon with room for four kids and a dog might be perfect for her, but you were looking for something a bit sportier. The same goes for buying a private or business jet. Your friend may love his large-cabin Gulfstream, but you fly mostly short business jaunts with three or four passengers. Without considering your needs and consulting with an expert, you may wind up with something that doesn’t haul enough cargo or passengers, requires too many fuel stops, or has unnecessarily high operating costs.
Consider your purchasing options
Will you buy new or pre-owned? Too many buyers believe that, if you’re going to purchase a jet, you might as well get the newest model. New might be the best way to go in some cases, but you’ll pay a higher price and you may not be able to get your hands on it for a couple of years. However, new jets typically come with a five-year tip-to-tail warranty.
Acquiring a pre-owned jet can mean getting a good bargain. Just remember that retrofitting and ensuring your new-to-you aircraft meets FAA regulations can be expensive and time-consuming as well. Keep your options open and conduct diligent research to get the most value out of your purchase.
Understand sales tax implications
It usually takes an expert to unravel all the regulations, exemptions, loopholes, international rules, as well as other purchase and use considerations. It makes a difference where you buy, when and where your jet is delivered, where you fly, who is managing your aircraft, and so much more. And tax laws change all the time, so you need — or, better yet, your consultant needs — to stay current. You don’t want to be surprised when the IRS comes knocking.
Get a pre-buy inspection
Invest a bit of time and money to ensure the aircraft you’re considering has no major maintenance or safety issues. Work with a trusted, licensed mechanic to inspect for issues so you’re not hit with millions in expenses after a short while in the air. If your mechanic finds any problems, your consultant may be able to use these as bargaining chips to negotiate a better purchase price.
Remember that buying a jet is not a money-making asset. Your jet will depreciate and drop in value over time. However, savvy jet owners agree purchasing a private or business aircraft offers many benefits, making it a worthwhile investment for those who do their due diligence.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
As one of the world’s largest private and business jet manufacturers, Gulfstream Aerospace is renowned for its family of high-end, high-performance, large- and midsize cabin jets. The jets are not only some of the most technologically advanced in the world but are also equally known for their distinctive interiors and leading cabin comfort, making them sought-after choices for discerning private and business jet customers.
By the numbers
As the jet market has started to recover over the last few years, increased demand for large-cabin private aircraft has positioned Gulfstream in a dominant position at the top of the market. 2017 ended strong for jet manufacturer Gulfstream and parent company General Dynamics. Fourth-quarter Gulfstream orders were up 20% due mostly to large-cabin orders, and “Gulfstream G650/650ER orders were up 78 percent year-over-year, making the fourth quarter the best for G650 family sales in three years and the second best quarter overall.”
General Dynamics leaders expect this increase in orders as well as soon-to-be introduced G500 and G600 models to push their company’s aerospace group, which also includes Jet Aviation, to as much as $8.4 billion in 2018 revenue. This would be an increase of $220 million over the previous year. However, they expect only about an 18% profit margin as they also plan to increase spending on R&D. Another factor in the anticipated low profit margin is due to General Dynamics decision-makers transitioning their Gulfstream assembly lines as they reduce G550 output and prepare for the upcoming G500 and G600 to enter into service.
Continued excellence
Although the company is no longer producing G450s, the Gulfstream G280 is still a business and private aviation favorite. This super-midsize jet recently reinforced its superior performance reputation with the addition of three new city-pair records:
Lagos, Nigeria, to Cape Verde, Africa — This 1,858-nautical-mile (nm) flight from Murtala Muhammed International Airport to Amílcar Cabral International Airport took 3 hours, 52 minutes, at Mach 0.84.
Cape Verde to San Juan, Puerto Rico — After landing in Cape Verde, pilots flew the G280 to Luis Muñoz Marín International Airport. They completed this 3,011-nm flight at Mach 0.82 in 6 hours, 40 minutes.
Johannesburg to Lagos — The 2,596-nm journey from Lanseria International Airport to Murtala Muhammed International Airport lasted 5 hours, 31 minutes, with an average speed of Mach 0.83.
The G280, which entered into service in November 2012, performs better than any other aircraft in its class and has 60-plus city-pair records to prove it.
Out with the old …
While the G280 is best in class, the G450 has been one of the best-selling and most celebrated business jets in the industry. Its advanced technology, remarkable range, and unmatched passenger comfort make it one of the most popular business jets in history. In January, however, Gulfstream executives announced it had reached the end of the road. The final Gulfstream G450 has been delivered, freeing up additional Gulfstream production space. Although the company will continue to provide support for the G450, it’s time to make room for its successor, the G500.
… in with the new
Gulfstream leaders expect the large-cabin G500 will receive certification and enter into service this year. With that expectation, Gulfstream pilots have begun a 12-country G500 tour to introduce the aircraft to potential customers. The highly anticipated high-performance fly-by-wire jet features advanced technologies and an extra-wide cabin. According to Gulfstream president Mark Burns, the tour will allow customers to explore the aircraft as well as provide the opportunity for Gulfstream insiders to thoroughly test the jet prior to its entry into service.
If you’re excited about the new G500 but don’t want to wait for its entry into the market, some great deals exist on pre-owned Gulfstream jets. Which member of the Gulfstream family will you choose?
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Business aviation had a strong year in 2017 — record-breaking, in fact. According to the Jet Support Services Inc. (JSSI) 2017 Business Aviation Index, the fourth quarter was the busiest in more than a decade. Is this a sign that industry analysts expect the post-2008 business aviation recovery to continue as we move further into 2018?
What do the numbers mean?
The JSSI Business Aviation Index tracks worldwide business aircraft flight activity, including that of jets, helicopters, and turboprops. In the report, JSSI president and CEO Neil Book said flight hours typically drop by 4% in fourth quarters but, in 2017, flight hour use dipped only 0.4%. He added that business flight activity is often a good indicator of the economy’s general status because it is a key tool for carrying out so many core business activities.
Here are some key JSSI findings for various business aviation industry sectors:
Average flight hours increased 6.1% year-over-year and 4.5% year-to-date.
Fourth-quarter aircraft utilization hours were the highest on record for any fourth quarter and flight hours were the highest in 10 years.
Consumer goods, construction, health services, business services, and real estate sectors all saw increases in flight activity, whereas manufacturing, aviation, financial services, as well as power and energy sectors decreased.
All regions except the Middle East had year-over-year increases in business flight activity.
These trends, although somewhat mixed, show a general increase in business aviation use in most business sectors and regions, which points to an increasingly healthy industry and global economy.
Looking forward
Due to the improving global economy, growth in the stock market, and recent tax legislation, the business aviation market will likely continue its upward trend. And so far, business activity stats for the start of 2018 seem to point in that direction, too.
According to ARGUS TRAQPak business aviation data, business aircraft activity in the U.S. and Canada was up 3.5% in February year-over-year, and analysts expect to see a 4.2% rise in March. Part 91, or noncommercial aircraft activity, rose 0.7% while fractional aircraft activity slipped 0.6% from last year at this time. Large-cabin jets showed the highest activity gain, followed by midsize jets with a 3.6% increase, then light jets up 2.3%.
Although the pilot shortage is still a concern for those in the industry, stabilizing oil prices, favorable tax conditions including the 100% depreciation write-off, and the general health of the economy should help the business aviation market continue its recovery. With the still-low prices on used aircraft, and as costs continue to firm up, more and more business leaders will be able to venture into the market to take advantage of business aviation benefits. And the growing charter markets will allow a younger segment of the population to get away from the hassles and restrictions of commercial flight and into the once out-of-reach experience of private aviation.
So, although struggles will still likely exist, the industry outlook is good and recovery likely to continue. To stay abreast of these changes, savvy business aviation insiders will pay attention to the markets and industry reports, and those thinking of purchasing new or used jets — or selling their own — should seek expert advice.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Today’s private and business jet owners expect reliable high-speed internet connectivity when in the air — both for productivity and entertainment. And their passengers do, too. Luckily, it’s more affordable than ever. Gogo Business Aviation, a leading provider of innovative broadband connectivity solutions for aviation, recently launched its Gogo AVANCE L3 system, a low-cost in-flight connectivity system with a lightweight form factor that even comes with free digital content.
Features and benefits
The AVANCE L3 system offers many benefits for private and business jet owners as well as their crews and passengers. While it’s possible to install the system on all sizes and types of business aircraft, AVANCE L3 is especially suited for smaller aircraft. The platform provides a full set of “Smart Cabin” features that allow passengers access to the cabin management system (CMS) to customize their experience. They also have access to all available data, maps, and entertainment systems. The system enables flight department teams to manage the number and types of devices allowed to connect.
How does it work?
The AVANCE L3 smart router connects to the Gogo Biz data network, which provides connectivity for email, voice calls, and optional Gogo Text & Talk. Gogo Vision, which provides access to moving maps, weather, flight information, movies, and television shows, is also available through AVANCE L3. Gogo AVANCE L3 itself is available in three configurations, depending on jet owners’ needs and budgets. The Core plan provides email, voice, and internet browsing for five devices. The Plus plan adds full internet access for seven devices, and the Max plan offers the Plus functionality for as many as 25 devices.
Digital magazines
Gogo AVANCE now also offers a selection of 30 digital magazines for Gogo customers and those who fly in Gogo-equipped business jets. Magazines include titles such as Newsweek, Forbes, People, and Golf Digest, and jet owners determine what’s available through their Gogo plans. Gogo offers this content to AVANCE and Vision customers as well as a selection of Bloomberg News content on hot news topics from around the world. This digital content is updated monthly via Gogo Cloud from customers’ hangars as well as Gogo Cloud locations in the United States and Europe.
Connectivity: More than a luxury
Gone are the days when internet connectivity during business and private flights was a nice perk. Today, passengers expect and even demand it as flight time isn’t synonymous with downtime for business executives. When they can conduct so much business online, internet connectivity means productivity continues while en route to nearly any destination. But connectivity doesn’t just mean business. It also can provide relaxation and entertainment for customers who need a little business break or to keep up with personal correspondence. If you’re looking to acquire a jet, internet connectivity is a likely consideration for your next purchase. Talk to an expert to ensure you get the right connectivity solutions for your needs.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
There’s a lot going on in the private and business aviation industry: Many soon-to-be-released luxury jets are about to enter the market, pre-owned jet prices are stabilizing, and the ADS-B mandate deadline looms. Here’s an overview of what’s happening and what it means for those trying to decide whether to purchase new aircraft, go with pre-owned models, or upgrade their current jets.
New models
Quite a lot of buzz surrounds new luxury jet models coming soon to market. Here’s a taste of what’s on the horizon for those looking to purchase a new high-end aircraft:
Boeing 787 Dreamliner – Source: Boeing
Boeing 787 Dreamliner — If you demand nothing less than the height of luxury, the VVIP Dreamliner might be the next jet for you. With the ability to fly nonstop for more than 17 hours, this model provides flyers plenty of time to enjoy its more than 2,400 square feet of cabin space with heated marble floors, a king-size bed, walk-in closet, and full-size shower. If you want to test it out before buying, you can charter this penthouse in the sky for you and 39 of your closest friends for a mere $70,000 per hour.
Embraer Legacy 500 – Source: Flyingmag.com
Embraer Legacy 500 and 450 — Brazilian aircraft manufacturer Embraer’s Legacy 500 and its slightly shorter sister, the Legacy 450, are some of the fastest jets in the midsize and “mid light” aircraft categories, delivering a high-speed cruise of Mach 0.79 to 0.82, respectively. They are some of only under-$50 million jets that feature full fly-by-wire flight controls. The Legacy 450, with a range of 1,300 nautical miles (nm), has a cabin four feet shorter than the 500, which has a 3,000-nautical-mile range. Both feature superb passenger comfort, low turbulence, and low noise levels.
Gulfstream G500 – Source: Wikipedia
Gulfstream G500 — Gulfstream’s long-range, large-cabin business jet is scheduled to enter into service in 2019. Its Pratt & Whitney Canada PW814GA engines reduce fuel consumption as well as cut emissions and noise. It sports 27-inch-wide seats with footrests for extra comfortable rides for as many as 19 passengers and includes a large, fully equipped galley. The G500 has a range of 5,200 nm and offers a state-of-the-art Wi-Fi and entertainment system as well as full digital fly-by-wire flight controls.
Pilatus PC-24 – Source: Wikipedia
Pilatus PC-24 — The PC-24 super versatile jet is the first business jet from Swiss manufacturer Pilatus Aircraft. The 10-passenger aircraft, for which deliveries began in January 2018, has a list price of just under $9 million. Its large aft door can handle standard cargo pallets, it flies as fast as 440 knots, and the PC-24 can fly six passengers 1,800 nm. Buyers can even choose among seven cabin layouts for this area that offer more overall space than its more expensive competitors. In addition, the light jet can use grass, gravel, or dirt runways as well as runways less than 2,700 feet, according to the Barron’s article.
Changes in the pre-owned market
Buyers who are not ready to go all-in on a new jet might want to take a look at the pre-owned market while they still can. Although the pre-owned Gulfstream market has been struggling over the past several years, according to an AINOnline article, an increase in pre-owned sales, decreasing inventories, and stabilizing prices have contributed to its ongoing recovery. For example, less than 4% of Gulfstream G650 and G550 fleets are for sale, which is extremely low compared to recent years.
Inventories for older Gulfstream models, however, such as the GIV-SP and G-V, are still high. In addition, values for the G550, which had been dropping nearly 20% per year for three years, have leveled off. Plus, new tax rules that allow for 100% depreciation during the first year for both new and pre-owned jets will likely boost sales in both categories in the coming year.
For those who plan to acquire a pre-owned aircraft, keep in mind the ADS-B mandate, which requires all aircraft be updated by January 2020. ADS-B Out equipment can be expensive, and slots for performing the upgrades are filling up fast. You don’t want your pre-owned new-to-you jet to lose its value or end up in the scrap heap because of your failure to comply.
Buying a jet, whether the latest model or a pre-owned model, can be a daunting, time-consuming process. To make the best of your next jet purchase, seek out an expert who understands the markets and can help you get the aircraft for your needs at the right price.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
In the 1960s, a great deal of excitement and anticipation surrounded supersonic transport (SST) aircraft in the business and commercial aviation industries. We’ve revisited the topic several times over the years as new developments seemed on the verge of becoming realities, like Spike Aerospace’s S-512 supersonic jet and Aerion Corp.’s experimental Supersonic Business Jet (SBJ). But roadblocks along the way have delayed their entrance into the market. Noise and emissions regulations, high costs, and safety concerns have cooled initial high hopes — and led to the demise of the Concorde, the only commercial SST jet — but industry experts still believe civil SST aircraft are on the horizon.
Source: New Atlas
How soon?
In December 2017, Lockheed Martin Corp. and Aerion Corp. announced they were partnering to manufacture a fast business jet that would fly up to Mach 1.4 and create renewed interest in supersonic jet travel. The partnership is interesting because Lockheed Martin is the biggest name in military aircraft, the company’s key focus throughout its history. However, the manufacturers at Lockheed Martin succeeded in building the world’s first business jet, which operated during the 1960s and 1970s. Leaders at Lockheed Martin and Aerion hope their first supersonic business jet, to be named the AS2, will take its first flight in 2023 with certification following in 2025.
Aerion and Lockheed stakeholders teamed up with General Electric Co. to design the new plane’s engine, which will allow the aircraft to fly up to 4,200 nautical miles at a speed 1.4 times the speed of sound. Aerion has already begun taking orders for the AS2 and expects to sell 300 over the next decade, according to The Washington Post article.
One of the biggest challenges for supersonic jet developers has been finding a way to minimize the sonic booms that occur when an aircraft surpasses the speed of sound. Such flights are prohibited over land, and Lockheed has been working with NASA over the past few years to come up with a way to mitigate the booms.
Aside from bone-rattling booms, AS2 makers also face the challenge of securing financing. To fund the supersonic business jet, Aerion plans to sell off as much as $200 million in debt. “That would get us through to the preliminary design phase, which would be about two years out,” said Brian Barents, executive chairman of Aerion, in an article in The National.
AS2 benefits
Aerion executives are willing to invest so much in developing the first supersonic business jet not only because they realize it will be a historical accomplishment but because the AS2 will also offer many benefits to passengers. It will be able to seat 12, and its faster-than-sound speed will cut three hours off a transatlantic flight from London to New York. That means a business executive could make the trip in just four or five hours, a tremendous benefit for executives whose businesses have strong presences in global markets. The jet could also carry diplomats, military, medical, or other officials to their destinations more quickly than other available transportation options. In addition, advanced aerodynamics will allow the AS2 to have a spacious, comfortable cabin without greatly impacting airframe drag and performance.
Source: New Atlas
Although the AS2 likely won’t be operational for another seven or eight years, its development could be signaling the beginning of a new and exciting age for business aviation. Will AS2 technologies lay the groundwork for future supersonic business jets? Only time will tell. But for business jet travelers, time is money, and the ability to reach their destinations with such speed is something many are willing to pay top-dollar for.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
One of those potential problems and another factor shaking up jet market dynamics is the looming 2020 ADS-B Out compliance deadline. With approximately 46% of the pre-owned business jets available on the market being more than 20 years old and the deadline fast approaching, installing ADS-B equipment can be time- and cost-prohibitive for many would-be buyers. This will likely leave many owners of aging aircraft grounded unless they purchase already-upgraded jets or buy new. And for those still planning to buy used, ADS-B homework will be necessary to acquire an aircraft that has the mandated upgrades to fly after 2020.
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