Not only does upgrading your private jet’s interior allow you to personalize it, make it functional, and heighten aesthetics, a facelift also adds to the jet’s value if and when you decide to sell it. That being said, you should give careful consideration to making up-to-date technology and style improvements.
In the two years it may take to deliver a new aircraft with the “latest and greatest” features, those features may already be old hat, but a typical cabin upgrade for a used aircraft will take only six months, and the technology will still be relatively new.
David J. Wyndham, vice president and co-owner of Conklin & de Decker, claims third-party companies often seek to enhance aircraft in terms of functionality, performance, or looks. But when you evaluate an aftermarket upgrade for your aircraft, consider the impact on the aircraft’s value.
Ask yourself whether the upgrade represents a step forward in technology closer or equal to that of a new variant. If the current production models have a particular feature that is also offered as an upgrade to your model, then that change likely adds value to your aircraft.
Also question whether most buyers will commonly accept the upgrade, or is it something only you and a few others can and will use, Wyndham recommends. Although an upgrade has to make sense for you and your aircraft mission, you also need to be aware of its impact on the future value of your aircraft.
Buying a used jet and refurbishing it costs less than a new aircraft — even with the latest in high-speed Internet connectivity, a cabin-management system with Blu-ray video, a couple of 42-inch HD video screens, satellite television, and docks for such carry-on entertainment as iPods and video games. Even when you add cockpit avionics upgrades and exterior paint, it’s still a bargain compared with a brand-new aircraft.
And of course, if you do choose to renovate a used aircraft, the project comes with its own set of questions, including whom to hire to do the renovations. Be aware that such a project can require numerous meetings and up to 18 months from the initial meeting until delivery. The process involves choosing amongst countless product options, ongoing inspections and reviews, negotiations and more.
It’s important to hire an experienced, independent consulting firm in the early stages of the process for valuable input during the negotiation phase, specification development and design integration to save time, money and risk of misinterpretation. The consulting firm will monitor the milestone schedule, participate in all program reviews, design reviews and inspections, and identify potential issues early in the program before they become major issues resulting in rework, change orders or schedule delays.
The European Union is losing support for its Emission Trading Scheme, which requires aircraft companies and owners to track their carbon emissions and pay fees for emissions over a set amount. The “Airbus ministers,” representatives from U.K., Spain, France, and Germany, publicly asked the EU to either postpone or be flexible about implementing the ETS.
U.S. position
It’s becoming clear that both the administration and Congress oppose the ETS. Secretary Clinton and Secretary LaHood sent letters last December requesting European leaders to change ETS requirements or face U.S. action. Republican John Thune and Democrat Claire McCaskill are sponsoring a bill that will be brought to a vote in the Senate this week. This bill already passed its committee, and it would keep U.S. airlines from having to comply with ETS requirements.
If passed, the House of Representatives can either pass the Senate bill or combine it with the version the House passed last year. At the time, ranking members of the Committee on Transportation and Infrastructure urged representatives to support the House bill.
They offered numerous reasons to reject the EU ETS:
- Violation of international law
- Many other countries oppose the scheme
- Infringes on U.S. sovereignty by taxing U.S. aircraft for travel over U.S.
- U.N.’s International Civil Aviation Organization (ICAO) is correct forum for such regulations
We should know by the end of the week if this crucial bill for aviation will move forward or stall until mid-November. In the meantime, the NBAA offers step-by-step compliance instructions for members.
In an industry with complex rules and regulations, it’s critical to have access to industry organizations like the Aircraft Owners and Pilots Association (AOPA). Established in 1939, AOPA is the world’s largest and most active aviation organization supporting pilots, aircraft owners, students, and enthusiasts.
A rich history
In its infancy, the AOPA contributed to the education of pilots who served in World War II. In the aftermath of Pearl Harbor, the AOPA fought against government efforts to ban civilian flying, helping to launch a more reasonable pilot identification program instead.
After the war, the aviation industry expanded rapidly, and today the AOPA acts as legislative advocate for more than 400,000 members. Its central mission is to “preserve the freedom to fly” while emphasizing accessibility and safety for the general public. The organization also supports and promotes initiatives that ensure a secure and stable future for the aviation industry.
Online tools
The AOPA website hosts an extensive set of training and how-to resources for anyone interested in aviation:
- Tips for buying and selling aircraft
- Finding a flight instructor
Annual membership fees of just $45 provide a wide range of benefits including aircraft and life insurance plans, special rates for legal services, and emergency medical coverage. Members also enjoy exclusive access to programs that assist with aircraft financing, title services, and more.
For more information about the association and the many benefits of AOPA membership, visit www.aopa.org.
Here’s a recap of a couple of important stories happening right now in the aviation world.
Forecasters Worry Jet Deliveries to China Won’t Live Up to Expectations
China has been a bright spot on the horizon for private jet sales. Jet manufacturers expect high deliveries there in coming decades. Boeing says China will need 5,260 new airplanes by 2031. Sounds great! The stumbling block may surprise you: a severe shortage of certified pilots and technicians.
EU Reconsiders Airline Emissions Law
Many countries dislike the European Trading System requiring all airlines to purchase permits for the carbon they release en route to and from European airports. In fact, the controversy has become quite heated; China has refused to allow European jet sales in the country, which is a very promising market for Airbus. Something’s gotta give!
Shuttle Endeavour Prepares for Last Flight
Ever wonder how a space shuttle travels across the country? It’s not as simple as you may think. It requires a crane, a scaffolding structure called a Mate-Demate Device (MDD), a 15,000-foot concrete strip, and a Boeing 747 Shuttle Carrier Aircraft. The trip from Florida to California, Sept. 16-20, includes special flyovers and overnight stays at important landmarks, like Cape Canaveral and Edwards Air Force Base.
Hot off the runway and causing an industry stir is Bombardier’s new Learjet 85, which is scheduled for delivery in 2013. The slick new aircraft, assembled in Wichita, Kan., is constructed almost exclusively of composite materials, promising increased aerodynamic efficiency, easier repair and maintenance, and a longer plane life.
The aircraft has seating for up to eight passengers and a range of up to 3,000 nautical miles. As the largest Learjet available, the cabin interior features 30” of legroom and double club seating that fully reclines, making the comfort of the passenger a top priority.
The Bombardier cockpit includes a state-of-the-art avionics system designed to reduce demands on the pilot. Thanks to advanced navigation equipment, pilots have instant access to graphical flight planning, weather conditions, and enhanced maps right at their fingertips. The ultra-efficient PW307B engine provides increased fuel efficiency and decreased noise output.
Other appointments include a Cabin Management System (CMS) with wireless cabin controls, plus luxury features like an iridium phone and XM satellite radio capability. The ergonomic interior also includes personalized LED lighting and a large galley space.
Take it for a virtual test flight to get ready for the Learjet 85 release in 2013.
Last month, the IRS delivered a final ruling prohibiting certain tax deductions for the entertainment use of business aircraft. The new limitations apply to any tax years after Aug. 1, 2012, and include expenses like fuel, landing and hangar fees, pilot salaries, depreciation, and interest.
Industry organizations like the National Business Aviation Association (NBAA) are expressing dissatisfaction with the new regulations, insisting that they are “administratively burdensome,” and that they have “produced unfairly skewed disallowances for many taxpayers.”
To help aircraft owners understand the new ruling, the NBAA is holding the NBAA Tax, Regulatory and & Risk Management Conference, Oct. 28-29, 2012, in Orlando, Fla. The event includes a well-timed session on strategies and tips to help aircraft owners mitigate any negative tax implications that may have cropped up following the final IRS ruling.
If your organization has previously filed deductions for the entertainment use of your private aircraft — regardless of whether the aircraft is leased, chartered, or owned outright — be sure to seek the advice of a qualified tax adviser to help you navigate the complex new regulations.
Read the new regulations.
Many people think immediately of an icy CEO or shallow celebrity when they picture a private jet passenger. Terminally ill children, disabled veterans, researchers, or rescued animals don’t usually spring to mind. However, many private aircraft operators, owners, and pilots offer their services and equipment for numerous types of charitable missions.
The variety of services provided by volunteer groups is pretty wide-ranging. The majority provide flights to specialized hospitals for extremely ill patients. Imagine the stress that free flights alleviate for families coping with severe health problems. For these patients, travel is difficult, especially frequent, expensive, long-distance trips. And that’s what groups like Angel Flight West provide: free flights to people in need. Volunteer pilots who love to fly and help others donate their time to transport individuals in extenuating circumstances.
Several charitable aviation organizations turn to the four-legged victims. Cloud Nine Rescue Flights rescues animals facing euthanasia from over-crowded shelters, and three volunteer pilots fly them to locations where they will be adopted. While this group will transport any healthy spayed or neutered animal, dogs and cats are the most common travelers.
Other groups specialize in disaster recovery, environmental research, or search-and-rescue assistance. Light Hawk in Lander, Wyo., offers trips to scientists so they can acquire valuable sky-high data of environmental issues.
If you’re a pilot or an owner of a private jet, consider the good you can do. If you or someone you know has a compelling need for transportation, know that many private pilots and aircraft are willing to help you out.
To see a list of charitable aviation groups, visit aircareall.org. You can search by region, by need, or by alphabetical name.
Labor Day weekend, the unofficial end to summer, is here. Perhaps you’re tired of the cocktails of summer — Gin and Tonic, Mint Julep, and Margarita — but you aren’t quite ready to turn to the Manhattans and neat scotches typical of the long nights of fall and winter.
The Aviation is the perfect cocktail for aviation enthusiasts looking for a new drink for this long, relaxing Labor Day weekend. This pre-Prohibition cocktail was invented by Hugo Ensslin in New York City in 1911, but the Aviation didn’t appear in print until his 1916 Recipes for Mixed Drinks.
Nobody really knows how the cocktail got its name. Some say it was an homage to the growing popularity of aviation at the time. Others claim that the blue hue of the drink serves as a reminder of the friendly skies. Blogger palatejack offers a different explanation for the name: “With its faint robin-egg blue color, it is a cocktail that evokes the jeopardy between the perils of early flight and the wonder of a bird’s eye view.”
While it has never been as popular as other classic cocktails, like the Martini, Sidecar, or Tom Collins, it’s unique and delicious. If you’re looking for a classy, distinctive cocktail for your party or jet this weekend, try an Aviation.
Here’s the original recipe:
Aviation
- 1/2 ounce fresh lemon juice
- 1/3 ounce maraschino liqueur
- 1/6 ounce crème de violette
- Maraschino cherry for garnish
Combine liquid ingredients in an ice-filled cocktail shaker. Shake until cold, and then strain into a chilled cocktail glass. Garnish with a maraschino cherry.
A July article in the New York Post reports that private jet owners are taking a big hit to their wallets as the resale values of their jets lose as much as 50 percent. As a basis for comparison, many industry experts previously estimated aircraft depreciation at just around 2 percent a year.
While the news is a bitter pill for those looking to sell, it’s a great time to be in the market for a private jet. This optimal buyer’s market for private aircraft persists for a few reasons. Fueled primarily by an emerging class of wealthy buyers who prefer newer planes, the market for new jets is recovering faster than the one for pre-owned models.
BRIC is buying
Additionally, demand from BRIC countries (Brazil, Russia, India, and China) is supporting an otherwise ailing pre-owned market. Aviation experts predict that, for the first time this year, demand from these countries will surpass that of the U.S.
If you’ve been putting off the move toward purchasing a used jet for fear the market will continue to decline, don’t worry. High inventory and low demand continue to indicate near-perfect conditions for acquiring a pre-owned jet. There are plenty of good bargains to be had.
The rush is on
However, a bargain basement price on a pre-owned aircraft doesn’t necessarily signal a good deal. The old rules still apply. Do your homework, and above all, reach out to an experienced broker who understands the intricacies of the pre-owned jet market. The right partner will help you navigate this turbulent market and will have established key relationships that pave the way for a smooth buying process.
There’s no way to predict where the market will go next, but signs indicate that a recovery is imminent. By the time you read this, the best deals on pre-owned aircraft could already be gone.
Just last week, Brazil hosted the 9th Annual Latin American Business Aviation Conference and Expo (LABACE) in São Paolo. The record attendance at LABACE 2012 is indicative of the rosy prospects for business aviation in the region, especially Brazil.
Brazil has demonstrated significant growth in private aviation in the past couple of years.
- Traffic at general aviation airports within 100 miles of São Paolo has doubled in the last 5 years.
- Embraer is opening a new center in Sorocaba, which is already home to the Dassault Falcon and Gulfstream centers.
- The number of private jets in 2011 increased to 623 — 77 more than in 2010. That’s a growth rate of nearly 14 percent!
As is common in emerging private jet markets, the infrastructure to support aviation is not adequate and needs serious improvements. Earlier this year, Secretary of State Hillary Clinton worked with Brazil minister of external relations Antonio Patriota to develop the U.S.-Brazil Aviation Partnership. The memo of understanding allows private and public entities from the U.S. and Brazil to work together to improve airport security, technology, and infrastructure.
Brazil is very close to allowing the private construction of business aviation airports, and this would alleviate the considerable traffic at congested commercial hubs. Check out the plans for a new general aviation airport, Catarina Aeroporto Executiva, in the São Paolo region.
There’s a sense of urgency, too, for Brazil to ramp up its aviation infrastructure. The country hosts the World Cup in 2014. In 1950, the last time the World Cup was in Rio de Janeiro, more than 1 million people attended. Rio also is the location for the 2016 Olympic Games; more than 9 million seating tickets were sold for the London games this summer.
People (and jets) get ready!
