Business aviation is changing. It’s expanding reach both into a new brand of customer — not just the ultra-rich — as well as into more global markets. That’s good for the industry, but active pilots and maintenance crews aren’t able to presently meet the demand. To combat this issue, industry leaders at the National Business Aviation Association (NBAA) have created a mentorship program to guide individuals who are interested in business and private aviation, and congressional representatives are sponsoring initiatives to encourage more women to enter the field.
Mentorship program
Those at the NBAA have initiated phase one of a mentorship program for people desiring to explore opportunities in business aviation. Representatives from the NBAA’s Young Professionals Council created the program along with Domestic Operations and Business Aviation Management Committee members. The program matches industry veteran mentors with those interested in learning about the industry or current aviation professionals who want to further their careers.
- Newcomers — NBAA members paired individuals from the first group into 20 teams according to their common interests and goals. The 20 mentees include college students starting their careers as well as mature individuals wanting to deepen their knowledge and experience or take a different path within the industry. One mentee is actually a company CEO who wants to learn more about business aviation.
- Mentors — NBAA members chose mentors for these newcomers from a pool of candidates who expressed interest via membership surveys. Those in each matched pair sign a confidentiality agreement, decide how often they will meet, and set a specified end date so both parties understand it’s not a never-ending commitment.
Phase one will go through June of this year, after which the NBAA has scheduled a nine-month program to begin in September 2019. The group hopes to launch its full mentorship program in fall 2020.
A push for more women
NBAA members aren’t the only ones growing their ranks. With room for opportunity, the business aviation field is predominantly male: Only 6% of pilots, 2% of airline mechanics, and 26% of air traffic controllers are female. Those stats prompted lawmakers to sponsor initiatives to bring more women to the industry.
One bill, the Promoting Women in the Aviation Workforce Act of 2017, urges industry leaders to “explore all opportunities, including pilot training, science, technology, engineering, and mathematics education, and mentorship programs, to encourage and support female students and aviators to pursue a career in aviation.” The bill calls for the FAA to sponsor a Women in Aviation Advisory Board and to explore ways to expand opportunities for women in the field.
In another initiative, lawmakers approved the creation of the Women in Aerospace Act. It allows several science agencies to open up grant opportunities to women. The bill also calls for NASA to prioritize recruiting and promoting qualified women and minorities who are underrepresented in fields such as aviation and aeronautics.
Growing diversity
The actions NBAA members and lawmakers are taking acknowledge the need to advance diversity in private and business aviation. These methods are meant to develop and sustain the interests of individuals aspiring to aviation careers, which could help the industry keep up with business aviation’s expanding role. These programs help promote collaboration and idea exchanges both within the individual programs and the wider business aviation community.
It’s the start of a new year and, traditionally, time for holding tight to resolutions and making predictions for the year ahead. In that spirit, we resolve to make our best predictions for the private and business aviation industry based on trends, past occurrences, and expert opinions for 2018.
The Tax Cuts and Jobs Act will provide a boost for private and business aviation. The recently approved tax overhaul is good news for business aviation as the biggest benefit is new owners’ abilities to depreciate jets 100% during the first year of ownership — as opposed to five years — which should also increase demand. The provision applies to both new and pre-owned aircraft. Tax breaks for individuals and private corporations may also spur interest in aircraft purchases.
However, it’s not all good news. The bill also repeals like-kind exchanges, although the depreciation provision will basically offset the change. And a one-time repatriation tax may cause leaders of multinational companies to delay purchasing business aircraft until next year. This could play into the overarching prediction that deliveries of private jets will remain flat in 2018.
The business jet market will be slow to recover. Despite the so-called “Trump Bump” insiders expected with the new administration and tax overhaul, financial experts predict that aircraft sales will remain stagnant in the near term and that 2018 will be a “reset” year for the market. According to the AINonline article, UBS Global Research forecasters stated that, “The manufacturers appear to be planning for flat industry deliveries in 2018 with new model introductions—Cessna Citation Longitude, Gulfstream G500 and Bombardier Global 7000—offsetting declines in certain older legacy products.” This means Bombardier, Gulfstream, and Textron should see increased deliveries in 2018 while Dassault and Embraer Executive Jets will likely see fewer.
FAA oversight will likely heighten. Illegal charter operations — most commonly operating on-demand charter flights without proper Part 135 certification — is a growing problem, and the National Air Transportation Association (NATA) wants the Federal Aviation Association (FAA) to crack down. The FAA has historically weakened or heightened its regulatory enforcement according to events and pressures from the pubic or aviation organizations. In calling for greater enforcement, NATA reiterated its position that incidents involving illegal charter operators “mar” the general aviation safety record. In recent years, the FAA has tended to let operators find and correct their own problems. However, with pressure from NATA, FAA enforcement policies could be on the upswing.
New technologies will allow for new product innovations. The FAA has loosened its stance and now allows lower-cost electronics inside cockpits, paving the way for advanced product developments and upgrades for older jets. Smaller head-up displays (HUDs) will allow for their placement in smaller aircraft, thus enhancing their safety, and advancements in sensor technologies will allow pilots to see through thick fog. Other advancements, such as high-speed Ka-band connectivity, will allow passengers enhanced internet connectivity while traveling.
It’s difficult to know whether tax cuts will be enough to boost aircraft sales, but combined with low prices on new and used private and business jets, sales should begin to pick up and really gain momentum going into 2019. In addition, constant technology advancements are sure to offer better and safer flight experiences. With so much to look forward to in the aviation industry this year, isn’t it time you got on board?
Two big names in private aviation, Boeing and Embraer, have confirmed they are in talks concerning a merger of the two companies. Although they haven’t disclosed details about the structure of such a deal, the Brazilian government — along with regulators and shareholders — will have final say if and when they announce a deal. So, what would a merger mean to them, their competitors — and members of the private and business aviation industry in general?
What these industry giants bring to the table
Boeing is the largest aerospace company in the world. It is a leading manufacturer of commercial and military jets, satellites, launch and defense systems, as well as advanced communication systems. It provides aftermarket aircraft support and training for customers in the U.S. and governmental clients in more than 150 countries. Boeing Capital Corporation, a global financing solutions provider, supports its three business units: Commercial Airplanes; Defense, Space & Security; and Boeing Global Services.
Embraer is an aerospace conglomerate headquartered in São José dos Campos, Brazil. It manufactures commercial, military, executive, and agricultural aircraft as well as provides aerospace services and support. It has been around since 1969, although it didn’t enter into the business aviation sector until 2000.
Reasons to merge
So, why would these two giants join together? It could bring Embraer increased sales authority with the major airlines. Other potential gains for the Brazilian company could come with maintaining jets already in service and savings with suppliers.
In exchange, Embraer’s strength in regional jets would boost Boeing offerings. In fact, Embraer is a chief rival of Canadian manufacturer Bombardier in 100-to-150-seat regional commercial jets. This is significant because Bombardier jets are the targets of a trade dispute between Boeing and Bombardier: Boeing has filed a complaint against Bombardier for “dumping” its C-series on a U.S. airline below cost and receiving unfair Canadian government subsidies.
Another impetus for the potential partnership may be the recent merger between Bombardier and Airbus. Airbus is buying a majority stake in the Bombardier C-Series jet program, which is a direct rival of Embraer’s E-Jets, and partnering with Embraer could give Boeing an aircraft to compete with the C-Series.
Possible roadblocks
Although there are benefits to be had, potential issues exist, too. Brazilian government officials say they back the partnership, but a company takeover would not be acceptable. According to a Reuters article, Brazil’s President Michel Temer “would welcome an injection of foreign capital into Embraer” but would veto any attempt at a takeover. Because of Embraer’s primary role in Brazil’s defense industry, the government would use its “golden share” to prevent giving company control to a foreign government. Boeing may also have to make concessions such as allowing the Brazilian government to retain some measure of control over Embraer.
A large acquisition like this always comes with potential risks, and unforeseen problems can crop up after the fact. However, if the deal does see completion, it would expand Boeing’s range into the smaller end of business jets and could enhance manufacturer competition in that sector.
In the final weeks of 2017, the country watched the debate, negotiations, and final passage of the federal tax overhaul. One segment of the population that was closely watching included private and business aviation industry members, and they had a vested interest in the outcome. Some tax cut provisions, however, have created a stir among those in the general public. Here’s the story — and a rundown of what this tax reform means to jet owners and those who plan to purchase in the near future.
The federal tax overhaul
The headlines — like this one, for example, “Republican Tax Bill Gives Private Jet Owners a Tax Break” — may sound inflammatory: Such assertions can rile the public, especially in light of recent controversies over some Cabinet members’ use of private jets. True, the reforms do contain provisions that benefit jet owners, but many headlines are misleading — and not all parts of the reform are positive for those in the private and business jet industry.
- Exemption for private jet management — The provision giving rise to public disapproval is, in actuality, simply a clarification of an earlier law. Current tax laws require aircraft management companies to collect a 7.5% ticketing tax. However, it had been unclear if companies that staffed and maintained private jets were considered aircraft management companies. Then, in 2012, the IRS ruled these service companies were in fact considered aircraft management companies and therefore should be collecting the tax and should be liable for back taxes. After protests, however, the IRS stopped its efforts to collect taxes until further review. The tax reform bill makes that ruling formal: Aircraft management companies are not responsible for paying the 7.5% per-ticket airline tax.
- Depreciation benefits — If you plan to purchase a new business jet in the near future, this one’s for you. You will get to depreciate 100% of the aircraft’s value during the first year. No, that’s not a typo. Under the act, bonus depreciation applies to both new and pre-owned aircraft purchased between Sept. 27, 2017, and Jan. 1, 2023. This is great news for business aviation industry members, and the National Business Aviation Association (NBAA) predicts it will lead to more jet sales and open new markets to the benefits of business aviation.
- Like-kind exchange elimination — The provision that allows businesses to defer taxes on newly manufactured business property purchased to replace older equipment is repealed in the tax overhaul. Now, business property no longer includes aircraft used for business purposes. This is not good news for the industry overall, but the depreciation benefits in the bill will largely offset lost like-kind exchange benefits.
Those are just a few of the main provisions affecting private and business aviation industry insiders. Although the loss of the like-kind exchange may hurt some corporate jet owners wishing to upgrade their aircraft, the ability to expense 100% of your new jet within the first year makes now a great time to purchase a new or pre-owned aircraft. But buyer beware: With these new legal changes, it’s important to seek advice from an expert partner so you can make the most of your purchase under the act.
Considering acquiring a business jet? Here’s what you need to know
- 100% depreciation — The new tax plan allows owners to write off 100% of the cost of their business jets — including pre-owned jets — for purchases made after Sept. 27, 2017. Bonus depreciation will end Jan. 1, 2023.
- Lower corporate tax rates — With less to pay in taxes under the new plan, companies whose corporate leaders have never owned aircraft may consider investing in business jets.
- Reduced inventory — As more buyers enter the market, pre-owned inventories may become sparse.
- Higher jet prices — Fewer pre-owned jets for sale and long wait times for new jet deliveries may drive prices up.
If you’re ready to begin your search, the best time is now. How would you like to fly?
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, by sales@L-Lint.com, or at +1 (305) 754-3313.
In July 2017, Rep. Stephen Lynch, D-Mass., introduced a bill that, if passed, will affect jet aircraft owners and those looking to purchase. The Aircraft Ownership Transparency Act of 2017, H.R.3544, would require beneficiary verification in addition to the owner’s identification before the Federal Aviation Association (FAA) would allow aircraft registration. What are the underlying reasons for this new legislation — and what could it mean for new and existing aircraft owners if passed?
Behind the bill
Current statutes require FAA personnel to record ownership and lien information for every civil aircraft they register. However, as it stands, owners can hide their identities through the use of agents. These agents can create trusts or “shell companies” to purchase aircraft on behalf of owners who — for various reasons — want to conceal their identities.
Looking for information on tax reform, aka the Tax Cuts and Jobs Act?
If you’re considering purchasing a private jet, especially for business purposes, don’t miss out on 100% depreciation!
Read the tax reform blog.
This makes it easy for foreign entities or even individuals with nefarious plans to register their aircraft anonymously. Although the FAA oversees registration, it is difficult to verify identities without accurate information about actual aircraft owners, beneficiaries, or users. And often, shell company owners do not have this information to pass on to the FAA. Legislation supporters believe this lack of oversight is a significant threat to national security and public safety. Planes can be — and have been — used as weapons, to launder or transfer money secretly, or to transport drugs, other prohibited cargo, or people traveling illegally.
What the bill does
If it passes, the Aircraft Ownership Transparency Act of 2017 will require “the disclosure of beneficial ownership by a foreign person of aircraft registration” before the FAA approves a certificate of registration. The bill mandates that, if the true owner is hidden behind a trust or association, the relationship among the owner, trustee, and beneficiary be disclosed. The bill defines beneficiary as “each natural person, who directly or indirectly, exercises control over the covered entity through ownership interests, voting rights, agreements, or otherwise; or has an interest in or receives substantial economic benefits from the assets of the covered entity.”
If the bill passes, private and business jet owners as well as those looking to purchase could expect stricter disclosure regulations when registering their aircraft. For those with nothing to hide, however, it shouldn’t be problem.
What is the state of private and business aviation worldwide? The globalization of business has placed tremendous importance on corporate aviation. Company leaders need to get to wherever business takes them, and commercial airlines are not the only answer. But business aviation today also has its challenges along with this growth. Therefore, the state of business aviation depends a lot on location.
England
Business aviation in the United Kingdom is in a somewhat uncertain state as the U.K. continues preparing for its break from the European Union. Brexit will likely have a significant impact on regulations governing business aviation, and if government officials don’t address the aviation industry in their Brexit talks, the U.K. could suffer a hit to global imports and exports. According to an article in The Telegraph, the Independent Transport Commission issued a report that states, “In order to preserve the UK’s air connectivity, the UK will need to ensure that there is a timely renegotiation of a significant number of aviation treaties, including with third countries such as the US, as well as with the EU.” The United Kingdom’s large aviation manufacturing industry is another area of concern because it depends so heavily on a global supply chain that relies on aviation agreements.
Africa
Africa’s importance in the global business aviation sector was underscored by the African Business Aviation Association’s (AfBAA) acceptance into the International Business Aviation Council (IBAC), the business aviation industry’s global association. AfBAA CEO Rady Fahmy is excited about the prospect of working with fellow members on improving aviation standards in Africa and on a global scale. Along with that development, more good news was reported by Global Jet Capital (GJC) researchers as they expect the country’s private and business jet fleet to grow by 25% within the next eight years, according to an ÂIN Online article. One of the biggest challenges will be operators’ abilities to finance these aircrafts.
UAE
Business aviation is booming in the Middle East, especially in Saudi Arabia and the United Arab Emirates (UAE). Business aviation has long had a strong presence in the region, but it traditionally was driven by those in the oil and gas industry. These days, business aviation is making inroads in corporate sectors such as finance and health care. Ghada Fawzi, director of sales for Falcon Aviation, said there is high demand for midsize jets that can seat eight to 19 passengers. She said overall business jet sales are projected to increase 15% to 17% in 2018. This is likely due to the number of new jets available pushing prices down, but the variety of models to choose from is making this a very good time to purchase as lower prices are beginning to increase demand.
India
Things just got a little easier for private and business jet operators flying out of India. Those leaving the country previously required prior permission from the Directorate General of Civil Aviation (DGCA), but new relaxed regulations no longer require such clearance. Indian operators who are certified by the DGCA and approved for an international “area of operations” will be able to fly unscheduled international flights without prior permission for the length of their five-year certifications. This should help reduce flight delays, which is essential in today’s fast-paced business world.
Jet travel is becoming a necessity in the global marketplace, and governments are recognizing the necessity of facilitating international business aviation. As decision-makers in countries around the world recognize its importance to the global economy, business aviation is likely to continue overcoming such challenges and mature.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, by sales@L-Lint.com, or at +1 (305) 754-3313.
The 2008 financial crisis created what many in the private and business aviation industry view as a “lost decade” with slow sales and decreased flight numbers. They liken the current situation to the lost decade that occurred between 1986 and 1996 when business jet deliveries fell off at about 350 aircraft annually. According to an AIN Online article, Jon Raviv, U.S. aerospace and defense senior equity analyst at Citi Research, said overproduction of aircraft in the 2000s created a “shadow” pre-owned inventory which “cannibalized” the market for new jet demand this decade.
The end of an era?
But the light and midsize jet market may be nearing the end of the lost decade. Raviv expects recovery to be slow — with sales in these sectors remaining flat at an average of 444 deliveries per year. Although the economy is stabilizing and the jet market has adjusted to demand, some corporate leaders are still skittish, so it will likely take time to get back to prerecession numbers.
While the light and midsize jet market appears to be poised for an upswing, the large-cabin jet market may be on the verge of its own lost decade. Over the past 10 years, jet deliveries in this segment surpassed demand, creating a glut of inventory and driving prices down. However, new Gulfstream and Bombardier models soon to hit the market may help lessen the impact.
Another factor contributing to slow aircraft sales is the fact that other private and business flight options — charters, memberships and fractional ownership — are quickly gaining popularity.
A good time to buy?
Although jet sales are down, aircraft manufacturers have been slow to catch on. Though some manufacturers have cut back a bit, there is still a large excess of jets available. This is driving deep discounts on new jets and fueling a price decrease on pre-owned jets. In fact, pre-owned private aircraft prices were down 16% year over year in August 2017. Case in point: A 5-year-old plane sold in 2016 was worth just 56% of its original price, down from 2012’s 64% value on jets half a decade old. This is a boon for buyers as jet brokers are offering great deals, enticing them to purchase new and pre-owned jets.
But many experts believe things are starting to look up for aircraft sales. With Gulfstream and Bombardier releasing their new jets — the G500 and G600 as well as the Global 7000, respectively — in the coming months, many believe sales activity will begin to slowly and steadily pick up. It’s difficult to predict how quickly the market will rebound, but for the time being, buyers are likely to get their hands on some tremendous bargains on both new and pre-owned aircraft.
Bombardier has recently reported double milestones for its Challenger business jet series. Bombardier introduced the super-midsize Challenger 350 into service in June 2014 and has now hit 200-plus deliveries, making the Challenger 300 series the most-delivered business jet series within the past 10 years. In addition, the company’s large-cabin 650 model first released in 2015 surpassed 50 deliveries, making it the best-selling large jet of its category in history, according to Bombardier, with more than 1,100 Challenger 600 models delivered.
These milestones are a tribute to the newest Challenger models’ unequaled capabilities, according to Bombardier Business Aircraft Senior Vice President of Sales and Marketing Peter Likoray. According to the AIN Online article, he said, “No competitor comes close to the comfort and connectivity of the Challenger’s cabin, nor to their class-leading economics and dependable performance in operation.”
The Challengers
The Challenger 350 boasts a range of 3,200 nautical miles. It is NextGen-ready with a well-equipped cockpit, plus its direct operating costs are the lowest and connectivity is the best of any jet in its category. The 650 model also offers the lowest direct operating costs for a large aircraft. It offers a 4,000 nautical mile range, Ka-band connectivity, and larger seats along with the ability for passengers to move around the cabin freely. Both aircraft are at the top of their classes in performance and comfort, and either is a winning choice depending on your needs and desires.
Pre-owned options
If you’re thinking of acquiring a pre-owned Challenger, several models are available.
Challenger 605 — This is the fifth jet Bombardier released in the 600 series. It seats eight with a range of up to 4,000 nautical miles. Upon its release, no other business jet of its size offered a better mix of cost-effectiveness and comfort. It provides unparalleled dispatch reliability and everyday utility. It is more space-efficient than the earlier 604 model with more cabin area for passengers. The Challenger series has captured a lot of operator loyalty: They cite its cabin comfort, range, and low operating cost as reasons for purchasing — and keeping — their Challengers.
Challenger 300 — Much like the Challenger 350, this super-midsize jet in the 300 series offers the comfort and spaciousness typically found only in large-cabin jets. It has superior runway performance and a range of 3,000 nautical miles. The 300 seats eight to nine passengers, depending on cabin configuration, and offers a heated baggage compartment accessible from the cabin. It provides similar comfort to Bombardier’s Gulfstream 550 — at only 65% of the G550’s operating costs.
Challenger 604 — Like the Challenger 350 and 605 models, the 604 model has a range of up to 4,000 nautical miles. In addition, its maximum cruise speed is Mach 0.82, and it offered the widest cabin of any business jet upon release. Its overall comfort, performance, dependability, and value make it the best-selling jet in its class.
There are many reasons why Challenger 300 and 600 series business jets are so popular with those in the private and business aviation industry. Whether you buy new or go with a proven pre-owned model, these jets promise to deliver.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, by sales@L-Lint.com, or at +1 (305) 754-3313.
The National Business Aviation Association (NBAA): You know it’s an important aviation organization that sponsors the NBAA-Business Aviation Convention and Exhibition (BACE), the largest business aviation trade show in the world. But what benefits does it provide its members, and why should you consider joining as a private or business jet owner — or future owner?
A little history
The NBAA is a trade organization that supports the needs of business jet owners who depend on business and private aviation. It was founded in 1947 to protect private and business aviation interests. Private aviation interest surged soon after WWII: Business leaders were realizing the benefits of flying, and more and more personal operators were cropping up. Organizers understood they had to act quickly to protect the rights of and airspace for private and business aviators; thus, they formed the NBAA with 19 companies as charter members.
Throughout its history, the NBAA has stayed true to its founders’ goal of promoting private and business aviation interests. It has played a role in
- airport improvements,
- enhanced air traffic control regulations and weather reporting,
- improved aircraft and aviation technologies,
- important legislation in the best interests of business aviators, and much more.
Today, the organization has more than 10,000 member companies and has become more global in its scope. It now helps promote and protect aviation interests in the worldwide marketplace. It also provides products and services to those in the business and private aviation industry, including the NBAA-BACE.
NBAA membership
Membership is open to private and business jet owners — whether they own one or many — as well as members of companies involved in the business aviation industry, including aircraft manufacturers, pilots, maintenance professionals, flight operations team members, as well as suppliers and vendors. Levels of membership vary and determine dues and benefits. In addition, those who register their aircraft outside the U.S. can become affiliate members.
Members share their expertise on organizational initiatives with each other. They have opportunities to serve on various committees that address industry causes and concerns. They have access to information regarding industry issues as well as opportunities to advance their managerial skills and careers. Members also receive discounts on events, a free weekly newsletter and monthly trade magazine to stay informed on important news and technologies, as well as the backing of an organization whose members and leaders advocate for them locally and on a national level.
If you would like your organization to become a NBAA member or become one yourself, you or a representative of your business can simply fill out an application.
Standards and resources
The NBAA and its member companies are dedicated to making the skies safer for business aviation. The organization implemented its Flying Safety Award program to recognize outstanding safety records of member companies and their employees. It requires member companies and their pilots, maintenance workers, and others involved in aviation to undergo ongoing training and proficiency checks to help ensure the utmost safety.
To keep up with their training and stay on top of the latest regulations, requirements, technologies, equipment, and additional information related to business aviation, members have access to a vast array of resources. The NBAA website offers access to information, products, services, social media, podcasts, an events calendar, and a job board. Members can network with each other and gain instant access to expert knowledge, ask questions, and problem solve. They also receive discounts on services such as shipping and aeromedical services, certain events, business development services, as well as insurance and workers’ compensation plans.
The NBAA also maintains a member list and recommends you utilize expert services if you are looking to purchase a new or pre-owned jet. They can explain the acquisition process, help you find a good aircraft fit, and guide you through the purchase process, which can be daunting. By purchasing through a NBAA-endorsed member, you can be assured of a well-maintained aircraft, a fair price, and a relatively problem-free buying experience.
In a November 2016 blog post, we explored the Automatic Dependent Surveillance-Broadcast (ADS-B) system and the rebate program industry groups instigated to encourage early implementation. The ADS-B Out mandate requires most business aircraft be equipped with the technology by 2020, which means we are approaching the deadline’s two-year countdown. Will you be ready?
What’s ADS-B?
ADS-B is a GPS-based surveillance system. It’s part of the Next Generation Air Transportation System (NextGen), the FAA’s U.S. air traffic control system infrastructure modernization initiative. Pilots who fly aircraft properly fitted with ADS-B Out transmitters report much more accurate positioning information to other pilots and air traffic controllers without the use of radar. The technology enables both pilots and aircraft controllers to see the same display, which helps to separate aircraft and improve safety. It can also report on inclement weather conditions, further improving safety.
ADS-B provides better coverage than radar, and remote areas without radar coverage will have surveillance capabilities with ADS-B. It also provides greater satellite signal accuracy and improved reliability, as well as enabling pilots to fly aircraft more directly to their destinations, saving time, money, and carbon emissions.
The ADS-B Out mandate
ADS-B Out is the broadcast technology that reports aircraft position whereas ADS-B In is the reception of that positioning information by those on the ground. The FAA mandate involves only ADS-B Out technology and requires that business aircraft be equipped with the proper FAA-certified ADS-B transmitter and position source.
The typical ADS-B Out upgrade will cost around $7,000, so you may decide it’s not financially feasible if your plane is worth less than $50,000. That does not necessarily mean your jet will be grounded. The ADS-B Out equipment will be required only in airspace in which the FAA requires a Mode C transponder, so there is still a lot of airspace where pilots can fly without the upgrade.
Don’t wait
Although the deadline is still two years away, it’s important you don’t procrastinate. Most business aircraft will upgrade to comply with the mandate, and there will likely be an overwhelming demand on service centers as the deadline draws closer. If you travel internationally, you may have already installed the equipment to comply with regulations in countries such as Australia and Singapore.
It’s important to review exactly what your aircraft needs to be compliant. ADS-B Out systems also need to be tested to ensure they work properly, so you’ll need to allow adequate time for testing and solving any operational problems.
You may not be thrilled about the upcoming deadline and associated upgrade costs, but the ADS-B Out mandate was created improve the operational safety of not only your aircraft but all the aircraft that occupy the same airspace as well. And that’s a good thing.
