As the economic outlook for major global corporations has improved, so has their investment in private air travel. It’s encouraging to see corporate heads traveling by private aircraft once again. However, out of the stir of market activity, new questions arise about the state of the jet aircraft market: How healthy is the market? What’s happening with prices? And most importantly, how does the current atmosphere affect you as a buyer or seller?
Uncertainty in the market
The reality is that the answers aren’t completely concrete, as there are many factors that affect the market and prices, such as the overall health of the economy, demand and supply, corporate profits, wealth creation, emerging markets (notably Asia and Latin America), and global trade.
The slow recovery of the aircraft market since 2008 adds to the sense of uncertainty. According to a report from Flightglobal Ascend Consultancy, there were only around 650 aircraft deliveries in each of the past five years. And jet sales aren’t the only indicator of a slow turnaround. Even commercial flight sales lagged: The Private Jet Services’ PJS 2015 Market Outlook report cites the Bureau of Transportation and Statistics, reporting that commercial airlines only reached an average of 80% capacity on flights over the past 5 years.
In addition, prices have stayed low and depreciation has been unsteady. Pre-2008, the most widely accepted depreciation figure for aircraft value was 5% per annum. However, Ascend saw depreciation values skyrocket to 12% at the end of 2013. This atypical rate of depreciation has fed financers’ reluctance to lend for the past five years.
A turn for the better
However, demand is up! As the economy has steadily recovered, so has business growth. Businesses are once again turning to corporate jets for transportation: PSJ found that 77% of survey respondents use private aircraft for business and personal use. The third quarter of 2014 saw 3.5% growth in the U.S. economy and a 24% rise in demand for private aircraft over the previous year. With a healthy increase in business travel, the need for private transportation has once again become a priority.
So what does this mixed bag of factors mean for the market today and moving forward? Industry experts predict that demand will foster better growth in 2015 and in coming years. Ascend anticipates deliveries of just under 10,000 aircraft in the next 10 years as OEMs bring new aircraft models to market. With five new models already stimulating demand in 2014, it is a good sign that the trend will continue and encourage more sales PSJ also predicts a shift in interest to larger aircraft, from super-midsize to VIP airliners — two classes that are expected to account for 45% of new aircraft purchases and 75% of total value.
The takeaway from all these statistics? As the economic well being of global corporations turns skyward, the private aircraft market follows.
Contact L & L International if you need assistance in purchasing 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.
Working with an aircraft broker offers many advantages — you have a knowledgeable expert with your best interests in mind working at your side to assist you through the complicated and sometimes daunting process of procuring an aircraft. One of the greatest advantages of this partnership is access to off-market aircraft.
Before an aircraft is widely advertised for sale on the Internet, a broker may be notified of the upcoming plan to sell. How is this good news for buyers? A broker can give you access to these to-be-listed aircraft before they are publically announced.
In fact, a broker is often on the lookout for aircraft that interest his or her customers — and when an off-market jet that meets the customer’s needs comes onto the radar, a good broker can offer the lead to the customer before the listing is picked up by the masses.
With their extensive list of business and personal connections within the industry, brokers can connect you with sellers you would never come across simply through an Internet search or by browsing listings.
An offer you can’t refuse
Off-market aircraft are good news for buyers. Who wouldn’t want early access to the most recently listed aircraft? Off-market and unlisted planes increase buyers’ selection and offer competitive pricing. You also have the potential to work directly with the selling owner rather than another broker, perhaps garnering intimate knowledge about an aircraft’s past use and condition. This avenue saves you money and speeds the buying process.
Rather than taking on the search for an aircraft alone, enlist an experienced broker to help you. Jet experts, such as L & L International, are immersed in the industry and have access to more aircraft, both on and off the market, and can advise you during your search.
Contact L & L International if you need assistance in purchasing 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.
Known as the “Oscar” of aircraft interiors awards, the 9th annual Crystal Cabin Awards selected the best of the best in 2015 aircraft interior innovations. A record number of submissions were entered this year, all contending for this prestigious recognition. The 68 entries that met award criteria were narrowed down to 21 finalists, who were judged by an international jury of 24 men and women who represent airlines, manufacturers, specialists, and technical service suppliers.
Awards were presented in seven categories:
- Greener Cabin, Health, Safety & Environment
- Industrial Design & Visionary Concepts
- Material & Components
- Passenger Comfort Hardware
- Passenger Comfort Systems
- Premium Class & VIP
- University
Judges looked for novelty, ability to meet general market demand, aesthetics or engineering qualities (where applicable), usability, and cost-effectiveness.
The winners were determined at the Aircraft Interiors Expo in Hamburg, April 14–16. Standout innovations that won awards include:
- Peter Bishop of Bishop Aeronautical Engineers’ “Solar Eclipse” concept, which uses a sun visor to provider passengers with electricity to charge their devices.
- Tony Dixon of Airliner World Magazine’s “SANTO Seat” (Special Accommodation Needs for Toddlers and Overweight Passengers), which makes use of normally wasted space at the rear of the aircraft to meet special needs.
- Marc Spille, university student at Hamburg University of Applied Science, for his development of a mobile trash container that uses vacuum technology to compress trash.
Past winners include brands such as Paperclip Design Limited, Lufthansa Technik, and Diehl Aerospace. With so many big industry names joining the competition in 2015, anyone could go home with a Crystal Cabin award in next years’ competition.
Contact L & L International if you need assistance in purchasing 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.
The National Business Aviation Association (NBAA) has been a widely used and respected resource for those in the aviation industry since its founding in 1947. Its members have been involved in major aviation events and rallied around numerous policy changes and movements, tremendously impacting the direction of the industry.
Those looking to join the ranks of the NBAA’s 9,000 member companies, and growing, can look forward to numerous benefits:
A voice in aviation policy — Representation by the leading organization in Washington, which advocates for the betterment of the aviation industry.
Access to knowledgeable experts — Members can receive prompt answers for their most pressing questions from industry specialists via email or phone.
Business management tools — A toolkit that includes the NBAA Compensation & Benchmark Survey, shipping discounts, 10% off the Complete Aeromedical Services Program (CASP), attendance at the NBAA Leadership conference, and more are offered to membership businesses.
Discounts on attendance at industry events — You can attend or exhibit at business aviation events worldwide at discounted rates.
Networking opportunities — Build your contact list at numerous NBAA events, seminars, conventions, and conferences.
Even without a full membership, the NBAA offers a great deal of resources for website visitors, including updates on the latest aviation-related legislation and regulatory matters, information about upcoming events, and numerous free resources covering aircraft operations and flight department administration.
For more information, and to add your company to the growing list of NBAA members, check out the full list of membership benefits and access the application here.
Contact L & L International if you need assistance in purchasing 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.
Avegant’s Glyph headset
What better way is there to escape the mundane of everyday life than to immerse yourself in a virtual reality? Avegant Glyph headsets let you do just that, converting TV, films, and video games into a truly immersive escape.
The Glyph headsets, which look like bulky headphones, can be pulled over users’ eyes and set to video mode for an amazing visual experience. The device uses new technology to offer exceptional image quality that cannot be matched.
Rather than looking at a LCD of OLED screen through the lens, images are project directly into the users’ retinas through “virtual retinal display.” This combines special optics and millions of tiny mirrors in a way that replicates the way we see the world around us. The end result rivals, and even surpasses, the experience of a home theatre — all in one portable device!
Glyph headsets are in production mode now, but the beta version will be mass marketed in fall 2015. For those who cannot wait to try the experience themselves, the headsets can be pre-order from Avegant for $599.
In February 2015, Gulfstream’s Aerospace Corporation became one of the first original equipment manufacturers to earn International Standard for Business Aircraft Operations (IS-BAO) Stage 2 certification. The voluntary, but arduous, process was developed by the International Business Aviation Council (IBAC) and its members associations such as the National Business Aviation Association (NBAA) as a standard code of best practices designed to enhance flight department safety. At the core of the certification is a scalable Safety Management System (SMS) tool for business aircraft operators.
While the Federal Aviation Administration (FAA) has not yet issued SMS regulations to U.S. registered flight operators, some civil aviation authorities in other countries are in the process of developing their own SMS regulation mandates. It is still unclear whether the FAA will require IS-BAO and SMS certification for U.S. flight operators, and it is further unclear whether flight operators currently exempt from the certification requirements in the U.S. will need to meet certification requirements while operating in SMS-required countries.
Dan Nale, Senior Vice President of Programs, Engineering, and Test with Gulfstream, clearly felt the voluntary certification would validate the safety management processes for the company. The certification was achieved prior to the start of two flight test programs for the all-new Gulfstream G500 and G600.
The certification arms the organization with:
- A structured decision-making process
- Improved risk controls and safety assurance processes
- A framework to promote safety culture
But the primary purpose behind an SMS certification is to identify and manage flight risks before accidents occur. Gulfstream Flight Operations Test had to work with IBAC auditors to implement IS-BAO protocols into their operational practices to effectively evaluate their flight test procedures.
Flight tests inherently involve flights that are significantly different from the standard business aircraft operator; experimental test flights are designed to demonstrate that design goals have been met and to earn type-certification from government entities. The IBAC auditors evaluated Gulfstream’s operating, scheduling, and dispatch processes and how those coordinate with the company’s production and service facilities — more than 16 worldwide!
If you, or your organization, are interested in learning more about the certification process, the NBAA website’s Safety Management System (SMS) information is a great place to start. The best way to stop accidents is to ensure they don’t happen, and SMS certifications can help you develop organizational processes that keep aircraft operations safe.
Contact L & L International if you need assistance in purchasing 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.
Up until very recently, getting on a plane meant being cut off from any sort of communication with the rest of the world. It meant spending the flight wondering about important calls and emails, and hoping that things would run smoothly until you were back on the ground. Technology is quickly catching up, however, and our ability to stay connected while in flight has dramatically increased to include our phones, television, and most recently, the Internet — making midflight connectivity nonnegotiable for many passengers.
But some manufacturers such as Honeywell, Satcom Direct, and others have designed their equipment to be installed in a certain way, while other vendors have found a different range of methods to integrate their communications systems. Without standardization or alternative methods for integrating these solutions, providing in-flight connectivity can be a challenging task for aircraft owners.
The National Business Aviation Association (NBAA) formed a working committee two years ago to address this problem and to create a standard for cabin electronic systems. Headed by Boeing’s Mike Wuebbling and IBM’s manager of aircraft maintenance services, Jim Janaitis, the committee aims to establish common equipment as well as create performance and serviceability standards.
A competitive market
With the rising popularity of in-flight connectivity solutions for business aircraft, advances in technology have made in-flight email and texting possible through the utilization of new communications frequencies. New players in the field such as Gogo Inc. are already creating next-generation aviation technology systems to improve air-to-ground connectivity. Other newcomers, like SmartSky, strive to bring airborne 4G LTE-based wireless networks to the business aviation market, with their beta launch planned for the end of 2015.
One roadblock newcomers to in-flight connectivity solutions may face is getting regulatory approval from the Federal Communications Commission (FCC) to gain spectrum rights for their air-to-ground (ATG) systems. Gogo currently dominates holdings of FCC spectrum licenses, but if access to other spectrums is granted to competitors by the FCC, Gogo’s position may become more precarious.
But the FAA approval process for installing connectivity equipment on planes is reportedly an arduous endeavor, and some experts predict that commercial services may not launch until well after 2020. In the end, standardization for in-flight connectivity must happen. And when it does, it will make it easier than ever to stay well connected while in flight.
Contact L & L International if you need assistance in purchasing 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.
Hobbyists and business owners have long been ready to capitalize on the opportunity unmanned aircraft systems (UAS), aka drones, provide for both fun and commercial activities. The multitude of possible applications for UAS permits have been on hold pending Federal Aviation Administration (FAA) action regarding the rules and regulations for unmanned aircraft. With potential applications running the gamut from delivering packages to innovating the forestry and farming industries, the noise around drones and what they could do to improve human lives is staggering.
Will FAA rules stymie commercial drones?
But the FAA’s recently released first draft of its Small UAS Notice of Proposed Rulemaking leaves would-be commercial and private drone operators wondering whether they’ll ever be able to fly their drones legally. The list of limitations includes:
- Drones must fly within the operator’s line of sight at all times.
- Drones may not fly over people.
- Drones may not operate at night.
- Drones may not fly higher than 500 feet above the ground.
- Drones may not fly faster than 100 miles per hour.
The rules are part of a multi-phased approach to integrate drones within the U.S. National Airspace System (NAS). Federal officials envision allowing drones to perform duties such as aerial photography, crop monitoring, and inspection of cell towers, bridges, and other tall structures — but the limitations are making many proposed applications impossible. Among the list of disappointed companies is Amazon, which wanted to use drones to create a faster delivery system and has threatened to move its operations to drone-friendly nations if the restrictions are not lifted.
Hobbyist drones proliferate
In the meantime, hobbyist drone operations have escalated as drones appear for sale online and in some stores. As hobbyist drone usage increases, so have incidents of lost drones, called “flyaways.” The Washington Post reports that since 2009, public agencies have reported 23 accidents and 236 unsafe incidents with civilian-piloted drones.
Along with concerns about drones’ safety have come concerns over privacy, which have been far more pressing in the court of public opinion and have caused some people to register their properties as No Fly Zones. As drone laws continue to take shape, the upcoming months will reveal the fate for many commercial drone dreams when the FAA makes final rulings.
Contact L & L International if you need assistance in purchasing 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.
2014 continued to be a buyer’s market for pre-owned business jets. Even so, according to data from JetNet, used business-jet inventories in December 2014 dropped to 11% — their lowest point since 2007 and a 1.5% decline year over year, as reported by AINonline.
The year-over-year retail transactions for used business jets surged by over 8% in December, hitting a new record of 2,569 pre-owned jets. However, the average asking price for pre-owned business jets continued to slide by over 10%.
While the number of in-operation business jets has continued to grow over the past several years, up until last year, pre-owned aircraft inventories had remained fairly stable, declining by less than one percentage point per year between 2011 and 2013, as reported by JETNET. The significant drop in pre-owned inventories bodes health for the market overall.
Pre-owned Gulfstream models a good buy
In the wake of Gulfstream’s delivery of its G650 to a waiting list of wealthy buyers, quite a few G550s are now for sale. CNBC reports that more than 30 used Gulfstream G550s are currently for sale, up from 11 a year ago. A 2006 G550 can be purchased for less than $30 million, around 60% of its original retail value. With the increase in G550 inventories, prices could fall even lower, possibly enabling individuals or business that previously couldn’t afford a private jet to do so.
Sales of older airplanes have typically been cash only, with models priced far below market value. For example, Gulfstream’s GIV models, originally priced at $36 million in 1998, now sell for $3 to $4 million. Financing for these older models has been almost nonexistent. However, recently some financial institutions have started offering aircraft loans, including financing for older aircraft, reports Business Jet Traveler.
If you are a jet owner and considering upgrading your current business jet to a newer model, now appears to be a favorable time to sell — before a flood of pre-owned jets hits the market and drives down values.
Contact L & L International if you need assistance in purchasing 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 mobile app for just about anything you want to do: from checking the weather to ordering takeout to tracking your health — and now, even for booking a private jet flight.
The latest trend in charter flights is to book them through various smartphone apps. Inspired by the popular ride-sharing service Uber, the idea has now branched into private aircraft.
Just as Uber made getting a ride easier, a range of private jet apps is doing the same thing. Apps such as JetSmarter, FlightTime, and BLADE allow you to book a flight to your destination with a few taps on your smartphone.
The process of connecting with a private jet charter is quite simple: users plug in their travel dates, departure location, and destination and view available flights. From there, they can compare prices, view specs, and even see images of the aircraft.
Why use a charter-booking app?
One of the most important benefits of using an app to book a charter flight is sheer speed. The entire process of locating and booking a flight can take just a few minutes, and many private jet services can take off within an hour of booking.
Another benefit is cost savings. In eliminating the broker, the apps enable customers to save significant money on air charters. Many of the apps let time- and money-conscious users take advantage of “empty leg” deals — booking empty seats on private jets that are returning to private airports or heading to popular destinations half-full.
Bringing private jets to the masses
The success of these apps has surprised many in the bizjet industry, including the creators of the apps themselves. The apps are bringing private flights to a wider population than just business executives and the wealthy, and they’re helping to maximize jet owners’ ROI by reducing seat vacancies.
Even as wealthy families are paying as much as $500,000 for a private flight — all booked through their iPhone — flight-booking apps are making charter jet travel almost a commodity by offering much lower-priced seats to customers. Such apps could have a significant impact on the market for private jet travel.
Contact L & L International if you need assistance in purchasing 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.
