The turnaround in the U.S. private jet market has finally reached the small- to medium-sized jet sector. A period of frugality, brought on by the U.S.’s recent economic struggles as well as the public’s negative perception of corporate jet usage, may have finally come to an end.
Smaller-jet shipments are up
As the home of approximately two-thirds of the world’s fleet of light to midsized jets, the U.S.’s continuing economic recovery is spurring jet sales. The General Aviation Manufacturers Association (GAMA) reports that midsize and light jet shipments increased by 12% in 2014 over the previous year. In the same timeframe, the demand for light and superlight jets increased a significant 19%.
Compare these facts with the reduction in large-cabin, long-range jet shipments, which declined more than 10% in 2014, according to GAMA. The numbers indicate that the market for smaller used jets is primed and ready.
Fuel prices, new models also drive demand
Other factors are contributing to the increase in small to midsized jet sales. They include lower fuel prices and the release of a number of new and upgraded midsize aircraft models: among them the Embraer Legacy 500, Bombardier Challenger 350, and Cessna Citation X+.
In addition to these, the much-anticipated HondaJet, a very light jet (VLJ) aircraft, should finally be available by Q2 of this year.
As entrepreneurs and business owners consider how to maintain business growth in a flourishing economy, they’re looking more favorably on business jets as a corporate investment. Many of those same business owners also have big cash reserves and are more willing to open their checkbooks now than they were several years ago. With the economic outlook strong and business leaders optimistic, the bizjet market outlook is promising for 2015.
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.
You may think you know a lot about air travel, but let’s put that claim to the test. If you want to impress your aviation pals at your next get-together, take note of these nine interesting and little-known facts about aircraft:
- Commercial airline pilots and copilots never eat the same meal. Why? In the event that one of them gets food poisoning, the other will still be well enough to fly the plane. It makes you look at the airport food a little differently, doesn’t it?
- You lose about two cups of water from your body for every hour you spend flying. Most of the moisture is lost through breathing, and dehydration is a common complaint among passengers on long flights.
- Flight attendants have significant levels of first-aid training. They really are safety personnel and will likely be the first to assist you in an in-flight medical emergency.
- Statistically, flying is still the safest form of transportation after the elevator and escalator. In the rare event of a plane crash, you have a 96% chance of surviving.
- The word “stewardess” is the longest word in the English language that is typed exclusively using the left hand on a keyboard. (Go ahead and try it!)
- A commercial aircraft door will not open in flight — it can’t because it is actually bigger than the door frame itself and it’s designed to open inward, toward the cabin. To open the door while the plane is flying would require the equivalent strength needed to lift a 2,200-pound weight.
- Only 5% of the entire world’s population has ever traveled by aircraft; however, more than 80% of people claim to be afraid of flying.
- Ever wondered why so many people prefer V8 juice as an in-flight beverage? The ability to taste salty flavors is hindered by cabin pressure. So the juice, which is very high in sodium content, actually tastes sweeter in the air than it does on the ground.
- Most aircraft that fly internationally display their home country’s flag painted on or near the tail and facing forward on the left side of the plane, backward on the right side. This is because it imitates how a flag would look if it were hoisted on a pole above the plane during 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.
When most people think of business aviation, they imagine a large private aircraft used by a well-known conglomerate, filled with business people in suits making deals. But here’s a surprising fact: Smaller businesses, not the Fortune 500 giants, operate the majority of business aircraft. Specifically, a large majority (85%) of companies who own and operate business aircraft are small and midsized businesses (SMBs); the largest corporations operate only 3% of the U.S. business aircraft fleet.
Bizav is big among SMBs
Why is bizav so popular among SMBs? Many of the smaller U.S. businesses operate in markets across the country where commercial airlines have reduced or even eliminated services, leaving the private jet market to pick up the slack.
Owners of SMBs also realize that they get the same competitive advantage that larger companies do by investing in a business jet. A business aircraft allows them to compete efficiently and fosters productivity among their employees. Business owners with a business aircraft can quickly travel to more places — often visiting two or three places in a single day. And their aircraft are equipped with the latest communications technologies, enabling owners and executives to stay connected with their associates on the ground. Studies consistently prove that companies that operate business aircraft are more competitive, more productive, and earn greater profits than those that don’t.
A smart investment
Sure, the initial cost of an aircraft can be daunting for smaller businesses, but comparison studies show that when the costs of commercial airfare are combined with overnight expenses for food and hotels and car rentals, they typically exceed a private aircraft’s costs. Add to those overhead costs and the loss of time for traveling executives who are disconnected from the rest of the company while in the air — especially if their destination is not close to a major airline hub — and the benefits of a private jet really begin to shine.
In the fall of 2010, a study by NEXA Advisors and the NBAA found that the investment in a private aircraft was a smart one for many U.S. SMBs. Companies using business aircraft produced better financial results, posted greater top-line growth, and achieved better customer access, improving customer retention and securing new sources of revenue.
Private jets offer the same benefits to all businesses, regardless of their size. If your company leadership and sales employees travel frequently, take a few minutes to add up all their travel costs. You may find that a pre-owned private jet, combined with today’s lower fuel costs, could save your small or mid-sized business a significant amount of money.
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.
Another year, and another Valentine’s Day is almost here. As a jet owner, you have plenty of options for making the holiday memorable for you and your significant other. If you haven’t made plans yet, consider a spur-of-the-moment getaway to one of these three destinations — each perfect for a Valentine’s weekend retreat.
Napa Valley
A wine lover’s paradise, people around the globe flock to this destination in the summer months — but Napa Valley is also perfect for a winter season getaway. February is Cabernet season, and the wine makers and chefs of Napa Valley really get into the season of love. You and your partner can enjoy top-quality wines perfectly paired with tasty bites. Don’t miss Calistoga’s Castella di Amorosa, a picturesque castle set in a beautiful vineyard whose name fittingly translates to “Castle of Love.”
Virgin Islands
If you’ve been longing to escape winter’s cold and lounge on a beach with your favorite person, this is the place to escape on Valentine’s Day. This Caribbean paradise enjoys temperatures that stay between 70 and 80 degrees all year round. The breathtaking beaches of St. Thomas, the romantic seclusion of St. John, and the history of St. Croix give you lots of options. Enjoy the convenience of paying for your trip with U.S. dollars when you stay within the U.S. Virgin Islands.
Sedona, Arizona
Not just a haven for heat-seeking snowbirds, Sedona’s dramatic landscapes make it one of the most beautiful places in the U.S. The area boasts more than 100 hiking trails and adventure around every corner. A lively shopping scene and world-renowned restaurants make it a special place for your valentine. If you are mystically inclined, you’ll be glad to know that spiritual healers flock to the region to take advantage of the spirit-balancing powers of Sedona’s vortexes.
Whether you want a secluded beach getaway, a spiritual awakening, or a lazy day drinking wine in the sun, a private jet can get you there quickly and easily. Surprise your special someone with a Valentine’s Day weekend to remember.
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 private jet market is relatively new in China. Between 2009 and 2012, China’s mushrooming economic growth meant that increasing numbers of the population were able to amass large personal fortunes — and the market for new private jets was robust. Before 2013, no resale market existed for business jets in China, but since then at least two major Chinese companies have sold their corporate jets at a loss. The demand for private jets has drastically decreased, and industry experts predict a continued decline in 2015.
Corruption crackdown curbs jet ownership
One reason for the decline may be Chinese citizens’ reaction to their government’s recent crack downs on corruption. Despite the fact that many business aviation companies market their planes as efficiency tools, the public has long regarded jet ownership as a way to help government officials and business people collaborate on illegitimate business deals. The complicated interrelationship between business people and government officials in China does little to destroy this illusion.
A frugal mood
Another reported reason for the decline in favor may have something to do with the public problems of Chinese comic star, Zhao Benshan. Zhao has recently been plagued with rumors that his fortunes are fading, that his family was planning to emigrate out of China, and that his works have been banned in some countries. Zhao purchased a private jet — one of the Challenger series from Bombardier Aerospace — for 200 million yuan ($32 million U.S.) in 2009, but reportedly asked to return the jet after being hospitalized.
Zhao later gave up on the idea of returning the jet when he learned that he would take a large financial loss on the deal. The topic later resurfaced in late 2014 as continued rumors of his fall from official favor — combined with hints that Zhao might donate his jet to the government — have continued to influence the private jet market. The situation has resulted in a kind of butterfly effect. As long as the central government of China is stressing frugality in hard economic times, the wealthy will be compelled to postpone their purchase of a private jet and even withdraw their orders to avoid drawing unpleasant attention to themselves.
Chinese jets may flood the market
What does the frugal Chinese mood mean for the private jet market in China? Forbes writer, Russell Flannery, reports that both existing jet owners and would-be first-time buyers of private jets are now reluctant to invest in such luxury items. The government crackdown on corruption and a creeping “anti-luxury” sentiment under Chinese President Xi Jinping has caused a lot of second thoughts among the wealthy. The current mood in a country of such previous economic growth is emphasizing frugality, and owners of private jets are less willing to show off their pricey symbols of wealth in such a time.
As a result, up to 20% of China’s existing private jet fleet, including their corporate jets, could be going up for sale in 2015. Buyers in other nations could snag some great deals while the Chinese market looks bleak for new jet sales.
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.
Winter weather and holiday traffic jams aren’t the only things causing delays for air travelers. The current pilot shortage has hit regional airlines and their passengers particularly hard. What’s causing this shortage of qualified pilots? A few things:
- In 2013 the FAA increased first-officer qualification requirements — from 250 to 1,500 hours of flight time.
- Many pilots are reaching the mandatory retirement age (as many as 25% of the total pilot force are expected to retire within the next six years).
- Fewer students are entering and completing pilot training programs.
Many airline industry experts worry that dwindling pilot numbers will hamper air travel. The airlines, particularly the smaller regional airlines where most new pilots start their careers, are finding it increasingly difficult to fill their first-officer vacancies. The low salaries for these entry-level positions also discourage newcomers.
Where the pilot shortage hurts most
Although the FAA ruling to increase first-officer qualification requirements was designed to combat the alarming trend of deadly crashes, seemingly caused by inexperienced pilots, the change is impacting the aviation industry at all levels. Because it can take a pilot several years to accumulate the required 1,500 flight hours, new pilots find it difficult to qualify for even a regional job.
Small airports, especially, are suffering from the pilot shortage, as they must service 10,000 passengers a year to qualify for FAA infrastructure funding.
Pilot-shortage solutions
The aviation industry is investigating possible solutions to the pilot shortage. For example, NASA is exploring the possibility of single-pilot commercial flights. This solution would employ a copilot to monitor the flight from the ground and remote-assist when necessary.
Other researchers are looking into ways to reduce crew size, including studying innovative ground support technology, increasing automation on board airliners, and improving crew resource management and physiological monitoring.
Still, the hurdles of overcoming public fear, persuading politicians, retraining pilots to fly solo, and reconfiguring jetliners are high. Aviation key players will need to collaborate to overcome these barriers and find ways to bring more new pilots into the industry.
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.
National Aviation Hall of Fame (NAHF) recently added four names to its prestigious roster of 225 men and women — each recognized as a pioneer in air and space technology. Since the Hall of Fame’s founding in 1962, it has honored the greatest contributors to U.S. aviation. The four new members are:
- Robert N. Hartzell (deceased) — Hartzell, a neighbor of Orville Wright, began making wooden propellers for the Wright brothers in 1917. He supplied the propellers used on U.S. aircraft in both world wars. Postwar, his company created the lightweight, controllable propellers that spurred development in general aviation across the world.
- Gen. Robert L. Cardenas, USAF (Ret) — Cardenas graduated from test pilot school in 1945 after flying World War II combat as a B-24 pilot in Europe. He played an instrumental role in the supersonic, record-breaking X-1 program and was chief pilot in the XB-49 flying wing program. He was commander of both the combat wing of F-105s in Southeast Asia and Air Force Special Operations Force.
- Eugene “Gene” Kranz — Kranz was a fighter pilot in Korea and an Air Force flight-test engineer before joining NASA’s Space Flight Group in 1960. There, he rose through the ranks of flight operations with the progression of the Mercury, Gemini, and Apollo programs. In his 37 years of service, he served as Flight Director during the Apollo 13 mission and as NASA Director of Mission Operations, with the responsibility of managing 6,000 employees and a $700 million budget.
- Abe Silverstein (deceased) — Silverstein was a mechanical engineer and aerodynamicist whose work contributed to improvements in World War II and early supersonic aircraft. In 1958 he transitioned from the National Advisory Committee for Aeronautics (NACA) to NASA, serving as the agency’s first Director of the Office of Space Flight Programs. Known as the Father of Apollo, and credited with architecting the space program, his vision led to human exploration of the moon and beyond.
Each of these individuals played a groundbreaking role in the advancement of air and/or space technology.
The NAHF announced its “class of 2015” on December 16, 2014 — the eve of the anniversary of the Wright brothers’ first flight over Kitty Hawk, North Carolina, on December 17, 1903.
Facts about the NAHF
NAHF started as a nonprofit organization in Dayton, Ohio — also the home of the Wright brothers and said to be the “birthplace of aviation.” After achieving national charter status by the 88th U.S. Congress and President Lyndon B. Johnson in 1964, the organization become a public foundation, reporting annually to Congress (a role it continues to serve today).
The purpose of the NAHF is to preserve and memorialize the accomplishments of its honored inductees. Air and space veterans such as Amelia Earhart, Charles Lindbergh, and Neil Armstrong are all NAHF members.
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.
If you frequently fly private jets, your departing and landing experience may be limited to walking across the hangar and into a waiting car. However, an airport’s fixed-base operator (FBO) offers many useful ground-support services you might not know about — services that can make your flying experience safe and low-stress:
- Ground equipment — Fuel is a primary source of income for FBOs and an important service for jet owners. After a long flight, the FBO staff will refuel your aircraft so that you’re ready for your next destination. And many FBOs offer fuel loyalty programs, allowing customers to accrue points that can be used toward future purchases. FBOs also have deicing trucks, tow bars, ground power units (GPUs), and other equipment to assist your landing and departure.
- Maintenance — In case of an emergency, all FBOs can provide maintenance services; it’s even an airport requirement. In a worst-case scenario, it is a comfort to know that an FBO can provide the assistance you need to get you on your way.
- Amenities — FBOs offer several services to keep you and your crew comfortable, such as concierge services, in-flight catering, hangar space, and sales of aircraft parts and supplies. Facilities such as a pilot lounge with computers and weather-reporting services, showers, Wi-Fi, and other amenities are typically available as well. Full-service FBOs strive to exceed customer expectations — they may have a hot cup of coffee ready for you upon arrival or even food ordered in from your preferred restaurant.
Some airports have as many as six FBOs. To locate an FBO at your destination airport, use an FBO directory such as the one available at GlobalAir.com.
FBOs are a key perk of flying a private aircraft. A dedicated FBO, such as Orion Jet Center in Miami, works to provide services that make clients’ travel experiences comfortable and enjoyable.
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 surprising plunge in oil and fuel prices made news in late 2014 and has continued to make headlines into the new year. Prices for fuel, including jet fuel, have been on the decline and are anticipated to continue to drop in 2015. With crude oil prices dropping 40% since June — from more than $115 a barrel to less than $50 a barrel — the resulting reduction in jet fuel costs is good news for private jet owners and business aviation.
Older jets get a boost
Fuel prices can make up 30 to 40% of total operating costs. As a result, many businesses favor newer, more fuel-efficient (and more expensive) aircraft models during times of higher oil prices. Current fuel prices give owners of older jets more incentive to keep flying their aircraft longer, rather than replace their planes with newer fuel-efficient aircraft.
The decline of oil prices is also making used aircraft more attractive to buyers. In addition to their considerably lower cost, used jets can be delivered and put into service much more quickly than new models can — especially considering enormously backlogged orders for new jets.
A good time for pre-owned aircraft buyers
Aircraft buyers may find good deals on jets owned by oil industry execs whose net worth is falling in the wake of low oil prices. Such is the case particularly in Russia, where many private jet owners are motivated to sell their aircraft to pocket on-the-rise U.S. dollars.
And for first-time jet buyers in particular, the fuel-price decline makes private jet ownership more of a bargain than ever compared with the cost of commercial airlines for business travel. Lower fuel costs have not been reflected in the price of commercial flights. Some airlines are pocketing the profits rather than passing along cost savings to customers, either to avoid having to raise ticket prices again when fuel costs increase or because they have little incentive to cut ticket prices given the high demand for business travel. Other airlines are actually losing money as an unforeseen consequence of agreeing upon set jet fuel prices with suppliers before the cost of fuel dropped so significantly.
Although the lower fuel prices are having a mixed effect on the aviation market as a whole, as long as prices remain suppressed, owners of older jets or those in the market for a pre-owned plane will continue to reap the blessings of the worldwide oil glut.
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.
Buying or selling a used aircraft can be confusing as you navigate the maze of tax laws, financing details, and assessing the aircraft’s condition. Assembling a team of experts to advise you during this process can help you to make a smart purchase and get the best possible value. To guide you through the aircraft-buying process, consider enlisting the help of the following professionals.
Broker
The internet makes it possible to gather more information than ever about a jet. However, in the same way you would trust a medical professional over a Web-based self-diagnosis, a jet broker’s informed opinion and expertise are invaluable when attempting to sift through the deluge of jet sales information. A reputable broker can assess an aircraft’s condition and valuation, help you determine a long-term operating budget, explain regulation changes, and ensure you are paying a fair price.
Aviation tax attorney
Aircraft operations planning is no easy task. It requires knowledge of FAA and DOT regulations, federal and state income and sales tax issues, and aircraft economics. An aviation tax attorney can assist you by designing a compliant operational structure, drafting purchase agreements, and maximizing your tax savings.
Lender
Financing your aircraft is an essential part of the buying process, so finding the right lender is crucial. Your lender can advise you on the many options available for financing your jet and offer you a loan with the best terms for the aircraft you’re looking to purchase.
Management provider
Some buyers choose an aircraft management company during the buying process; others handle this step post-sale. Either way, a management company can help you with the time-consuming job of managing and maintaining a multimillion-dollar aircraft. A management company provides essential services, such as locating and hiring a qualified pilot and crew, handling accounting, coordinating flights, and managing aircraft storage. Engaging a management company can reduce your ownership risk, lower operational costs, and maximize revenue. You can make sure you choose the right management company for your needs by asking the right questions.
Although you may need additional expertise to assist you in buying a jet, these four key team members will handle the essential parts of the process to ensure smooth sailing through such an exciting purchase.
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.
