The drones are coming! The Federal Aviation Administration (FAA) has promised to issue updated rules for unmanned aircraft by the end of the year. The FAA’s Notice of Proposed Rulemaking (NRPM) for small unmanned-aircraft operators within U.S. airspace will come none too soon for business owners in many industries, many of whom have been frustrated by the FAA’s longtime ban on commercial drone use.
Many questions surround the FAA’s upcoming rules for drones — also called (among other names) unmanned aircraft systems (UAS). These rules are part of a multi-phased plan to integrate UAS into the U.S. National Airspace System (NAS) and are likely to bring a range of new challenges, opportunities, and concerns for business aviation.
First wave of commercial UAS
The FAA recently exempted six film industry operators from its commercial UAS ban. These exemptions give a ray of hope to would-be commercial UAS operators who want to use unmanned aircraft for applications such as these:
- security — for example, police uses such as crowd monitoring and surveillance;
- search and rescue;
- monitoring — for example, forestry and pollution control; and
- agriculture management — applications such as crop dusting and grow-area monitoring.
Expected challenges
A major concern with UAS operations is that it will create hazards for pilots and the public. Both military and commercial drones have crashed on the ground and in the water; collided with buildings, people, and vehicles; and even hit or nearly missed a few piloted aircraft.
Before UAS can be integrated into the NAS; the FAA, pilots, and UAS vendors and operators will have to collaborate to develop and implement protocols and technologies that enable safe UAS operations. One proposed solution is to equip drones with sense-and-avoid technology that enables them to avoid collisions. Another is to add technology that allows air traffic control to detect UAS. However, such technologies are still in the research and development stages and likely would not be available for certification until 2016 at earliest, says National Defense magazine.
Currently, UAS operators are not required to receive safety training. The growing numbers of untrained drone operators will increase the odds of accidents unless operators receive some standardized level of education and training.
Expected opportunities
Drones represent a huge opportunity for many industries, including aviation. The National Business Aviation Association (NBAA) reports that the UAS technology industry is expected to grow from its current $13 billion by more than tenfold in the next decade. Companies can expect to expand their service offerings by providing UAS to do jobs that are too difficult or too dangerous for piloted flights, or for work that is more easily done at lower altitudes. Such activities include crop dusting, remote-area search and rescue, aerial photography and videography, power line and pipeline inspection, oil and gas flare stack inspection, and many others.
Although it may be some time before U.S. airspace is fully ready to accommodate UAS, commercial drones are on their way. For the business aviation industry, it’s time to learn about this opportunity, study the FAA rulings, and get ready.
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.
Maybe you knew your company is ready for a private jet, but you’re not sure if the budget is ready. Your reluctance could vanish after you take a look at today’s used jet market. It’s an exceptional time for first-time buyers to own a jet, with more affordable options than ever before.
Prices are falling for many models
As cited in the recent Robb Report (October 2014), prices of pre-owned aircraft plunged during the recession (starting in 2008), triggered largely by a glut of planes from owners who could no longer afford them or justify their cost. Jetnet reports the average asking price for a pre-owned aircraft only 15 years old or newer was $8.7 million in 2013 — 20% less than it was in 2009.
While used aircraft values continue to trend downward, prices are falling less drastically than they were during the worst part of the recent recession, reports aviation website Globalair.com. The continuing low prices make the pre-owned market especially welcoming for first-time buyers as well as bizjet and private jet owners who want to trade up. Buyers looking to acquire larger aircraft may also add to the used-jet supply by selling their current jets as the market achieves some equilibrium and as the stigma of owning a business jet wears off.
Best aircraft values
A large selection of reasonably priced models is available — especially older, pre-2000 aircraft. Prices have fallen considerably for some late-model midsize jets, too, such as the Bombardier Challenger 300, Challenger 605, and Gulfstream G150. The entry of the Gulfstream G650 means that prices for older Gulfstream models — the G550, G450, GV, and GIV — have all been pushed down. For example, the average price for a G550 over the last six months (based on 10 transactions) is $36.1 million used, and a GIV can be as low as $3 million.
As more buyers enter the used jet market and soak up the available supply, reduced inventory levels could drive up prices and create a seller’s market. For the foreseeable future, however, the pre-owned aircraft market is ripe for the picking.
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.
Private jets save money and time for businesses whose executives travel frequently. Recent research shows that a private jet could even boost your company’s performance, providing a competitive advantage over companies that don’t use business aircraft.
Bizjet users are top performers
A 2013 study of Business Aviation by NEXA Advisors reviewed the link between private aircraft and the world’s top-performing companies. The study found “ample proof” that business aviation creates significant value for businesses and can “materially improve” a company’s ability to create value and increase returns for shareholders. The report showed that growth in business aviation activity around the world has also benefited international companies and shareholders in a similar manner to those in the U.S.
Most would agree that private jets save time and money for businesses whose executives have to travel frequently, but it’s validating to learn that private jet ownership significantly boosts company financial performance as well.
The advantages that private aircraft offer businesses can be summed up with this statement: Private jets make it easier and faster for executives to conduct business in person with their customers and partners.
Private aircraft advantages
If you still need convincing, consider these specific advantages of private aircraft:
- Skipping the hassle and delays of the TSA.
- Scheduling flights around your needs — If your meeting runs late, you fly on your time, and the plane waits for you.
- Departing on request — You can book several meetings in a day, make every meeting on time, and still be home for dinner.
- Using smaller airports to get to your destination faster — More than 5,000 airports can accommodate smaller aircraft, compared to only 550 larger airports that are available for larger commercial aircraft.
- Trust and privacy — Owning your jet means hiring a pilot and crew you trust. It also allows you to conduct business in private without worrying about compromising sensitive information.
The upfront cost of a private jet may seem sizable, but compare that to the cost of flying to multiple locations using commercial airlines, the price of overnight hotel stays, time lost in delays and ground travel, and reduced productivity. An investment in a bizjet pays for itself pretty quickly and gives you “more bang for your buck.” Plus, private aircraft costs may be tax deductible — so the jet investment gives your business a tax advantage as well as the ability to conduct business on your terms.
Sure, we get it: A private business jet is an incredibly luxurious way to travel. But owning a jet provides a host of other benefits. The end result is a more direct route, less time spent traveling, and the all-important bottom line. If your business growth depends on meeting clients and partners in person, investing in a private jet is a no-brainer.
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.
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Forty years ago, the future of supersonic transport (SST) aircraft looked bright. In the 1960s and early 1970s, England, France, the Soviet Union, and the U.S. were excited to develop passenger planes that could cruise at speeds over Mach 1. Although the last commercial SST flight was 11 years ago, aerospace researchers today are exploring the feasibility of developing a new generation of SST aircraft.
SST aircraft of the past
Despite the initial enthusiasm about SSTs, only one — the Anglo-French Concorde — had any commercial success. When the Concorde flew its first transatlantic flight from Washington D.C. to Paris’ Orly Airport in just 3 hours and 32 minutes in September 1973, people around the world cheered. Of course, the Concorde wasn’t the first commercial supersonic aircraft. That honor belongs to Tupolev Tu-144, which was built in the Soviet Union and nicknamed Concordeski. Its first flight was in December 1968, but it was quickly retired after it crashed at the 1973 Paris Air Show. Like Concordeski, Concorde also crashed once, in 2000.
Notwithstanding Concorde’s promising start, interest in supersonic air travel waned because of its high costs and low ticket demand, environmental and safety concerns, and strict aviation regulations that limited where SST aircraft could fly. Concorde flew its last flight in October 2003 and was retired.
SSTs — The next generation?
With the deck stacked heavily against SST technology, research and development ground to a halt for a number of years. However, interest in SST development is resurging, and companies like Boeing, Lockheed Martin, Aerion, Spike Aerospace, and university research teams are looking into supersonic again. At Aviation 2014, an annual event of the American Institute of Aeronautics and Astronautics, NASA presented its most recent work on new technology that may revive civilian supersonic travel within the next 15 years.
One problem that’s stalling supersonic technology is the need to reduce sonic booms — the shock waves caused by the aircraft flying at speeds faster than sound. Other barriers include high-altitude emissions, fuel efficiency, and public distaste for noise surrounding airports. Some of these issues are a matter for engineering teams, some a matter of public attitudes, and others require change to government regulations. Given these obstacles, it may still be a while before we’ll be able to cross the Atlantic in one hour.
Whether or not you agree that the world needs a new civilian SST aircraft, the idea certainly sparks some significant levels of excitement in the commercial and business aviation world. We’ll be keeping an eye on the prospects as they develop.
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.
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The public perceives business and private aviation as a major producer of greenhouse gas (GHG) emissions that contribute to climate change — and that’s true. Aviation is responsible for 2% of all human-induced carbon dioxide (CO2) emissions and 12% of CO2 emissions from all transport sources, per the Air Transport Action Group (ATAG). That’s still far less than the road transport sector, however, which generates 74% of CO2 emissions, per ATAG.
Even so, the aviation industry recognizes its part in generating CO2 and is taking a more proactive role in reducing GHG emissions. The industry is taking a multipronged approach to addressing climate change through a number of initiatives, including collaboration and focus on alternative fuels.
Collaboration on climate change
At the United Nations Climate Summit in September, aviation industry representatives stated their commitment to climate action and the partnership between the U.N.’s International Civil Aviation Organization (ICAO) and aviation industry groups.
In addition, at the 38th ICAO Assembly in September 2013, ICAO Member States committed to jointly developing a global market-based measure for aviation emissions that will take effect in 2020. This commitment provides evidence that the aviation industry is taking climate change seriously.
And the European Business Aviation Association (EBAA) has a “four pillars” plan for meeting emissions reduction and fuel-efficiency targets. The EBAA has committed to making progress in technology, infrastructure and operational improvements, alternative fuels, and market-based measures in an effort to meet its environmental pledge to reach business aviation green targets.
Alternative fuels
On another environmental front, the aviation industry has identified alternatives to 100 low-lead (100LL) jet fuels, such as biofuels and unleaded avgas. According to the National Business Aviation Association (NBAA), approximately 167,000 general aviation (GA) aircraft in the United States use 100LL. The Federal Aviation Administration (FAA) announced in September that it will begin testing four unleaded aviation fuels for piston-engine GA aircraft.
In tandem with the U.N. Climate Summit, Finland’s largest airline, Finnair, powered an eco-friendly flight from Helsinki to New York purely with biofuel.
The NBAA is a key player in many of these eco-initiatives. In addition to those mentioned, the NBAA provides information for GA operators about the EU Emissions Trading Scheme, which is the cornerstone of the EU GHG emissions-reduction policy and the largest international system for trading GHG emission allowances.
Climate change is a vast problem, and the efforts of the aviation industry alone won’t be enough to eliminate the majority of GHG emissions. But these initiatives are an important and necessary part of mitigating climate change, and their momentum shows that aviation is more aware of its environmental impact than ever. Each effort, small and large, makes an environmental difference and helps move the industry closer to sustainability.
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.
Whether you’re buying a car, a house, a company, or an aircraft, due diligence is a key part of the process. When you’re buying a pre-owned aircraft, this appraisal involves establishing the aircraft’s condition and history to ascertain its fair market value. Here are the specific tasks involved in due diligence as part of a pre-owned aircraft purchase.
Aircraft assessment. This step can identify potentially costly maintenance needs as well as possible safety issues. In fact, the aircraft assessment step, also called a pre-purchase inspection, is so important that it is often performed twice: first, as an initial in-person inspection and then again as a more rigorous undertaking later in the buying process.
The pre-purchase inspection includes a thorough, onsite physical assessment of the aircraft. The buyer pays for the pre-purchase inspection and receives a report from the inspector; the seller, in turn, gets a report detailing any issues that need to be corrected.
For the inspection, the buyer should choose a certified, trustworthy maintenance provider who is highly knowledgeable about the aircraft make and model you’re looking to buy. The provider should have experience in completing “tip to tail” inspections that include internal and external engine parts, avionics, and other aircraft areas and systems.
Records review. Another important task is a thorough review of records from the aircraft’s engine maintenance service plan (MSP) and other maintenance records. This paperwork should include verification of total time in service, that regular servicing and inspections have been performed, and that maintenance records are complete.
Establishing a clear title. This step ensures that you are buying an aircraft free of mortgages, liens, leases, or other obligations. To establish whether the aircraft’s title is clear, check the title filed in the FAA Civil Aviation Registry or in a foreign registry and, if necessary, take the required actions to clear the title. (Title insurance can protect aircraft owners from title problems stemming from liens and other liabilities incurred by previous owners.)
Tax review. The buyer should ensure that tax records for the aircraft are up to date and taxes are paid in full.
If you’re working with a reputable pre-owned jet broker like L & L International, you can rest assured that the broker’s representative will perform the necessary due diligence tasks. Even so, it helps to understand what’s involved in the due diligence process, so that you can ask the right questions to acquire all the information you need about the aircraft’s condition and history and whether its title is clear.
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.
A buyer’s first impression of any item for sale — be it a house, a car, or an aircraft — is based largely on its appearance. A renovated interior and cleaned or repainted exterior can get prospective buyers excited about your aircraft. It’s also a great way to improve your aircraft’s value, just as remodeling the kitchen or installing new flooring can add value to a home.
But similarly to home improvements, some enhancements affect an aircraft’s value more than others. The key to making cost-effective and value-adding upgrades is to know which ones will make your aircraft more desirable to prospective buyers. These four refurbishments are most likely to boost your aircraft’s value and wow buyers.
1. Paint
A new exterior paint job can wow a potential buyer, as long as it’s is done well. Old paint should be removed properly, the aircraft should not be over-sprayed and over-buffed, and the paint used should be high-quality and a neutral or classic color. An aircraft that’s repainted every five to seven years will be an asset to current owners as well as future buyers.
2. Aesthetic improvements
Improving your aircraft’s aesthetics means modernizing interior features. Interior upgrades can be one of your biggest aircraft maintenance expenses, but they’re essential to preserving and even improving the value of your aircraft. Like painting, interior upgrades should be done every five to seven years.
Interior investments in updated seats, new carpet, refinished cabinetry, and refurbished hardware can go a long way toward differentiating your aircraft from others on the market. Avoid over-customizing your aircraft’s interior or choosing upgrades based solely on your unique personal tastes. Instead, opt for classic interior upgrades that have universal appeal.
3. Technology updates
The addition or upgrade of Wi-Fi technology, LED lighting, and state-of-the art entertainment systems make a big impact on buyers in the market for a quality pre-owned jet. Out-of-date technology gives the impression that the aircraft is outdated as well.
4. Detailing
Though it may seem obvious, cleanliness makes a huge difference in perceived value of a pre-owned plane. Investing in professional detailing, ideally on a regular schedule, improves the flight experience for current and future passengers and helps prevent wear and tear on your interior investments.
Posh, glitzy interiors may attract attention, but investments in such upgrades won’t give you the most bang for your buck. Sensible, cost-effective refurbishments will make your aircraft’s interior more attractive and comfortable and will help to make your plane more marketable when you’re ready to sell.
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.
An escrow company plays an important role in an aircraft purchase transaction. When a prospective buyer puts down a non-refundable deposit toward the aircraft’s purchase, the escrow company serves as a trusted, neutral third-party to securely hold the aircraft papers and deposit. Whether you’re buying or selling an aircraft, knowing how an escrow company works will help you to be better informed about the sale process.
Escrow basics
Using an escrow agent can help avoid conflicts of interest in an aircraft sales transaction. That’s why it is of the utmost importance that an escrow company has no ties to the buyer, seller, or broker involved in a transaction.
Once a buyer and seller have agreed on the terms of the aircraft sale, the buyer submits a letter of intent (LOI) to the seller. Once the seller accepts the LOI, the buyer then submits deposit funds for escrow. The buyer and seller should jointly agree on the steps in the escrow process to avoid surprises at closing. When the transaction is near completion, the buyer and seller meet with the escrow company to release ownership documents to the buyer and funds to the seller.
The escrow company typically charges a fee to hold the deposit and aircraft documents and also files documents with the FAA to transfer the title. Most escrow services are FDIC insured, but you should verify this with the escrow service you’re considering.
A full-service escrow company such as Insured Aircraft Title Service (IATS) can assist with document and deposit-holding services, title and registry search, and title clearing as well as filing the necessary documents with the FAA.
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.
Who hasn’t played Monopoly? The perennially popular board game hasn’t gone out of style yet — in fact, it has gotten a lot more stylish. Zontik, an online retailer of high-end games, offers a Monopoly set elegant enough to inspire deals worthy of any real estate mogul.
The sides of the game board and storage box are made of hand-bound Dauphin calfskin and feature detailed scalloped plinth and 70 gold- or silver-embossed inlays. Game pieces are available in your choice of pewter, sterling silver, or silver-gilt, and two ball-cornered precision dice come with leather dice cups.
Even the bank boxes are tastefully done, with a leather rule envelope and money separators. The faux currency is the same as in more pedestrian Monopoly sets — but with a set this opulent, you might want to play with real money.
The set is priced at $5,737 to $14,161, depending on which game pieces you choose. Additional customization options are available.
As the seasons change, we are reminded that weather can have a big impact on air travel. Commercial and even charter air travel are prone to costly disruptions that cause significant problems for passengers. However, private jets have a few advantages when it comes to weather changes.
How weather affects air travel
If you’re a frequent traveler, you’ve probably experienced some interesting weather conditions. Here are the main ways weather affects air travel:
- Fog — Heavy, moisture-laden, and low-lying clouds ensure poor visibility and pose a risk for runway landings and takeoffs. When fog limits visibility, a private jet pilot can divert to an alternative nearby airport with better conditions.
- Snow/Ice — When snow and slush aren’t plowed off runways, more distance is required to safely take off and land. The formation of ice on a plane can also be problematic, as it can change the aircraft’s shape and disrupt air flows. While commercial flights are typically forced to wait for better conditions, private jets have the ability to take off and land at alternative airports that have not been affected, or access hangar facilities to deice their aircraft.
- Tropical storms — Hurricanes, cyclones, and tropical depressions can combine a wide range of conditions such as strong wind, rain, hail, and lighting, and cause poor visibility. Private jet pilots have more alternatives, such as the ability to gain clearance to fly around storms or even depart ahead of schedule to avoid a storm all together.
Why flying private in bad weather wins
The demand for flights on private aircraft usually increases during times of bad weather for a reason. Obviously, extreme weather will impact private aviation but not to the same extent as commercial aviation. In fact, the big “wins” for flying private include these:
- More airport choices — A slight change in location can make a big difference in weather conditions and temperature, and private jets can take advantage of alternative airports easily.
- Schedule flexibility — Travelers can wait out poor conditions or leave a location early to get ahead of bad weather. You can’t get that flexibility with commercial flights.
Of course, the advantages of flying private mean it’s important to plan flexibility into your travel schedule when changing weather conditions could cause you delays. Luckily, you can easily move your business meeting onto the plane, if necessary, and conduct it in privacy and comfort.
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.
