The article below was posted on AINOnline yesterday. Read it carefully, as the new ruling affects up to 599 civil jets. At L&L International, we have a Stage 3 Gulfstream III for sale right now. Get in touch with us, as this jet will surely be in demand!
“FAA Finalizes Rule To Ban Stage 2 Bizjets
The FAA issued a final rule today that prohibits jets with an mtow of 75,000 pounds or less from operating in the contiguous U.S. after Dec. 31, 2015, unless they meet Stage 3 noise levels. To take effect on September 3, the rule could affect up to 599 civil jets, though any of these aircraft that are hushkitted or otherwise modified to meet Stage 3 standards will be permitted to operate in the U.S. in 2016 and beyond.
Some models of the banned airplanes can be modified to meet Stage 3 noise levels with the installation of a hushkit, the FAA noted. “Of the 17 models of airplanes affected by this ban, hushkits had previously been available for six models: the Dassault Falcon 20; Learjet 23, 24 and 25; and the Gulfstream II and III. An unknown number of these airplanes may already have a hushkit installed.”
However, the only hushkits currently available for the affected Stage 2 jets are for the Gulfstream II and III, the FAA said. With cost estimates ranging from $850,000 to $1.5 million for the modification, it added, “the cost of the hushkit for the Gulfstream II exceeds the recorded value of the airplane.” Avcon said last week that STC approval of its new hushkit for 20-series Learjets is in the hands of the FAA.”
A corporate jet says a lot about a company. That you’re successful, that you’re a go-getter, that you take your business seriously. Your business jet should reflect your company’s values and style. Luckily, you don’t have to buy a brand new jet to accomplish these goals.
There are many perks to investing in a preowned jet. You don’t have to wait a year or more for delivery. You get all of the value and perks of private flight, like privacy and convenience, without the price tag of a new aircraft.
Making a preowned aircraft your own
But buying preowned doesn’t have to mean settling for a dated interior. You can find the right used aircraft, and then customize it to make it perfect for your business travel needs. Refurbishments can include changing upholstery, leathers, and rugs or even modifying the woodwork, galleys, wardrobes, cabinets, and so on.
You can upgrade the plane to meet aesthetic, business, comfort, and medical needs. You can also update the aircraft to highlight business branding, such as logos on seatbacks and interior colors that reflect your company’s market presence.
You can modernize the cabin of a preowned jet with a new in-flight entertainment (IFE) system and the addition of a wireless broadband cabin connectivity system. These types of updates give you the amenities, look, and feel of a new jet at a much more budget-friendly price.
Considerations
Although most industry insiders recommend you update an aircraft to meet your company’s needs and tastes, it doesn’t hurt to keep resale value in mind. Tasteful interiors and modern technology mean less time on the market when you go to resell.
You can start the process of creating an ideal business aircraft by working with L & L International to find a great used jet. L & L can then refer you to a supplier that provides turnkey solutions for customizations to make your company’s new preowned jet ideal for your business travel needs.
– See more at: http://www.updatefrom.com/l-l/1306/interior_insights.asp#sthash.3ENRVx3d.dpuf
Private jets are an undeniable necessity for many business travelers. Businesses undertake jet purchases to address a variety of requirements: to save time, ease the financial burden of corporate commercial travel, gain privacy, increase efficiency, and so on. The ideal jet model’s specifications address all of these needs for its owner. But needs change. Perhaps the eight-passenger capacity of your company’s midsize jet is no longer practical, or you’re simply interested in the luxurious upgrades of a larger model.
Purchasing a new or pre-owned jet is complicated enough; throw in the sale of your current jet, and you’ve got a time-consuming and complicated project on your hands:
- Where will you find a buyer?
- How will you find a new aircraft that meets all of your needs?
- Can you ensure that all the proper paperwork, including certifications, registrations, and records, are up to date for your current jet as well as your potential purchase?
These tasks are highly specialized and difficult to juggle on your own. To ensure a smooth transition, enlist the help of a partner who can shoulder the burden of both the sale and purchase. A broker can simultaneously take care of the sale of your current aircraft while helping you with the acquisition of a new or pre-owned executive jet that meets all of your requirements. Professional brokers offer many valuable skills:
- They know the jet market.
- They have access to a variety of private and public contacts.
- They can find exactly the jet you’re looking for without having to make exceptions.
Why waste your time and resources by undertaking an aircraft upgrade alone? Ensure your business gets the best value and the most suitable aircraft by procuring the services of an experienced broker. You can’t beat a hassle-free upgrade!
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 877-453-8276 (+1.305.754.3313), or visit us online.
Private jets are great for business, but what if you’d like private jets to be your business?
The luxury and efficiency of jet travel isn’t just appealing to individuals and savvy corporations; it’s also becoming a viable business model. Entrepreneurs are embracing the uptick in popularity of chartered jet services by building businesses in this growing arena.
Although the dream of operating an airline might seem far-fetched, with a focused plan, this dream can become a reality. Here are a few important things to consider before starting a private jet charter service:
- Business model — What type of service would you like to offer? Who will be your main customers? The answers to these questions will determine whether you need to invest in top-of-the-line jets with all the amenities to cater to CEOs, politicians, and celebrities, or put your money toward reliable planes that simply offer a quick way for ordinary travelers to bypass the hassles of commercial flight.
- Funding — Think about how much capital you’ll need and how you’ll acquire funding to start your business. A small airline will require a large initial investment to purchase planes, hire experienced pilots, and begin marketing efforts to attract customers.
- Paperwork — You’ll need to incorporate your business, registering as either an LLC or General Partnership (assuming you aren’t the sole financial investor) as well as file paperwork with the Federal Aviation Administration (FAA).
- Specs — Finally, you’ll need to research and begin the process of purchasing aircraft. Based on your determined business model and budget, you’ll be deciding what types of jets are the best fit for your service: budget or luxury; large and economical or small and intimate; and new or pre-owned.
Taking care of all of these details for one jet can be complicated enough; purchasing multiple aircraft presents a host of hurdles. To ease this challenging task, seek out the services of a broker who specializes in jet sales. With their experience and knowledge of the market and industry, good brokers can help you invest wisely in the best aircraft for your new business.
Make your first business move a smart one: Get help finding your fleet of jets from a professional broker with experience.
If your company is new to the private jet industry, it may be difficult to decide if it’s time to embark on the quest of jet ownership. When making this decision, there are many factors to consider.
- What’s your travel time? If you or your co-workers regularly travel 150 or more hours a year, it may be time to invest in a corporate jet.
- Where are you going? The distance you travel will dictate how large of an aircraft you’ll need. You’ll also need to consider how many people will need to make the trip, and buy an aircraft of the appropriate size. An ultra-light jet won’t work for large groups covering long distances.
- Plan for maintenance costs. Fuel, repairs, crew salaries, and government required inspections can add up quickly. Other costs will creep up, too, like regular airport fees and cleaning services. Make sure you know what you’re getting into.
- Consider your image. Before you buy, consider the impact purchasing a private jet could have on the reputation of your organization. While it might be the right financial decision for your company, it might not sit well with the general public. Check with your legal department and PR specialists before you buy.
- New or used? New and used jets each have pros and cons. Make sure you get a thorough inspection before you buy a used aircraft. Used planes may require costly and time consuming upgrades to meet current regulations, too. A new plane will cost you more, but they often come with a five year, tip-to-tail warranty. While you will still be responsible for the cost of inspections, most other expenses are covered by the warranty.
Hire your team
Once you’ve decided to purchase, hire the right team to find your aircraft. You need a team that is experienced, has the resources to find the right plane, and has impeccable integrity. A professional company like L&L International will take the time to get to know your specific needs then search on- and off-market to find an aircraft that’s perfect for you.
Buying a corporate jet is a complex process, and bringing in professional help is going to save you time and money. Working with an experienced broker like L&L International will ensure that you love your purchase long after the transaction is finalized.
CenterPoint Aviation Law’s lawyers advise an international client base about the regulatory, tax and commercial issues affecting aircraft transactions.
Aircraft owners need expert answers to questions about issues such as avoiding entanglements with a company’s flight department, making sense of the entertainment-use tax rules or structuring and conducting a complex aircraft transaction. CenterPoint’s expertise helps ensure its clients’ assets are protected in the acquisition, ownership and operation of their aircraft.
CenterPoint regularly counsels clients about:
- compliance with federal aviation regulations
- federal excise tax exposure
- federal income tax planning, including addressing depreciation
- personal use of corporate aircraft
CenterPoint’s lawyers also assist clients with aviation-related state and local sales, use and property tax planning issues. The firm provides expert guidance for FAA and Cape Town International Registry registration. And the firm can assist owners in creating ownership trusts, aircraft management and charter agreements and joint ownership arrangements.
Attorneys Alan and Stephanie Burnett take a proactive approach to guiding all professionals who deal with their clients’ aircraft, including:
- technical representatives
- management and charter companies
The firm’s interaction with these professionals ensures smooth transactions through all aspects of buying, selling, owning and operating private aircraft. The CenterPoint referral network saves users valuable time and energy in selecting qualified aviation service providers.
CenterPoint Aviation Law is located in Seattle, Wash. Call (206) 805-5700, e-mail info@centerpointaviationlaw.com or visit http://www.centerpointaviationlaw.com/index.htm for more information.
A professional jet broker is just one player on your team of trusted representatives that assist you in finding and buying the right aircraft. In fact, every aircraft purchase includes many critical pre-purchase components that involve the expertise of skilled and specialized professionals who will make the purchase process clean, smooth, and safe for you and those you carry in your aircraft.
Aviation inspection: Ensuring safety and reliability
A thorough pre-purchase inspection centers around ensuring that the aircraft being considered is mechanically sound. A trusted broker can recommend qualified, unbiased third-party technicians who specialize in the kind of detailed inspection you’ll require.
A thorough inspection includes not only physical inspection and testing of the aircraft’s systems, but also a review of maintenance and repairs. Your technicians will review:
- maintenance records, starting from the time the aircraft left the factory
- log books, to ensure records have been maintained accurately
- physical systems, components and structure, accomplished by performing an official Chapter 5 manual maintenance inspection or customized evaluation
- special maintenance needs of the aircraft
- potential upcoming or ongoing maintenance issues
- potential required upgrades to avionics or other technology
The results of these reviews will provide you with a wealth of information about the aircraft that will help you understand the type of care and maintenance it will require and the potential costs involved in ownership.
Aviation law: Ensuring a clean transaction
A broker is also an excellent source for connecting to aviation legal counsel. Unlike your corporate or personal attorneys, an aircraft attorney can provide specialized information about such topics as:
- federal aviation regulations
- federal excise tax exposure
- tax and depreciation considerations
- personal use of corporate aircraft
- joint-ownership arrangements
Aviation law specialists also assist clients with aviation-related state and local sales, use and property tax planning issues, FAA and international registration, ownership trusts, aircraft management and charter agreements.
A qualified, trusted broker can help you connect with key specialists such as these and others, including lenders, insurers, accountants, pilots, management and charter companies, escrow agents, owner trustees, qualified intermediaries, and other personnel you will work with through all the aspects of buying, selling, owning and operating your private aircraft.
Title insurance might not be the most exciting aspect of buying a jet, but it’s essential for a successful acquisition. The good folks at Insured Aircraft Title Service(IATS) offer filing and up-to-the-minute aircraft registry information to customers throughout the world, including North and South America, the United Kingdom, Western and Eastern Europe, Africa, the Middle East, and the Pacific Rim.
With more than 40 years of experience in the industry, this trusted Oklahoma City-based company provides escrow services and document and title recordation services for aircraft registered anywhere in the world. Aviation firms and financial institutions such as Ford Motor Company, Williams Grand Prix Engineering, DOW Corning Corporation, Bank of America, and Bombardier Aerospace Corporation, rely on IATS’ services, which include:
- Documentation filing with the FAA
- Customized registration numbers
With complete title and document recordation services offered to the entire aviation industry on every continent, IATS can ensure that you’re covered.
Purchasing a pre-owned private jet might seem like an inherently risky task: Do you start by searching Craigslist? Is the jet you’ve found a score or actually a swindle? Is the title in order or are there problems? Even if you feel confident in your ability to choose a quality pre-owned plane, do you have the time to deal with the hassle of appraisals, title searches, and financing? With a skilled, reputable jet broker, you can set aside those fears and challenges and focus on your purchase.
In this hassle-free environment, you can realize the many reasons to consider a pre-owned jet purchase:
- Ordering a jet from a manufacturer will take a couple of years to deliver. On the other hand, there are a variety of pre-owned options currently ready to ease your business travel needs.
- A pre-owned jet can be a better value than a new jet. If you find the right pre-owned aircraft for your needs at the right price, you’ll gain the advantages of skipping commercial flight without shelling out for the cost of a new jet.
- Pre-owned aircraft provide all the same freedoms and amenities as new jets. You can bypass the hours spent waiting in commercial airline security and ticketing lines, travel at times that are convenient for you and your clients, and be more productive as you travel in privacy.
Hiring a qualified jet broker to guide you in the buying process instantly gains you insight and experience in the private jet market. You simply communicate what you’re looking for in a private aircraft, and an experienced broker will then match your criteria to your pre-owned jet options.
A jet broker guides you through the entire process, from choosing the right pre-owned aircraft for you or your company to making sure certifications, registrations, and all other records are correct and up to date. You don’t have to worry about the countless details of securing financing, acquiring insurance, or employing a proficient inspector. You get to simply enjoy the many benefits of private jet ownership.
The news is teeming with financial jargon and op-eds spouting the benefits and shortcomings of the American Taxpayer Relief Act of 2012, which was signed into law at the beginning of January. Bonus Deprecation? Section 179? Through this financial news flurry, it can be difficult to find grounded information about how this legislation affects all aspects of business, and private jet owners in particular.
Here’s how it works: A company can write off the purchase price of certain equipment a little at a time through depreciation. However, to boost the bottom line of U.S. businesses, the government instated Section 179 of the tax code. Section 179 allows businesses to write off 50% of the purchase price of qualifying equipment, such as a new private jet, in the first year rather than claiming the deduction over a period of five years (this stimulus applies to all qualified capital assets, not just aircraft).
The idea is to give businesses an incentive to invest in themselves through the purchase of new equipment. As of 2007, Section 179 was supposed to be phased out and eventually eliminated. However, this tax code has proven popular over the years and has been included in multiple Stimulus Acts since 2007.
The American Taxpayer Relief Act of 2012 is no different. This bill extends the 50% accelerated depreciation tax relief, also known as Bonus Depreciation, to factory-new jets purchased in 2013. This extension includes any aircraft ordered by year-end. As long as you have a written, binding contract by Dec. 31, a new jet is covered by Bonus Depreciation even if it won’t be delivered until 2014. This legislation applies only purchases of new jets, not pre-owned aircraft.
So what does all this mean? It means that now is a good time to buy a jet!
This legislation represents an opportunity to determine the best private jet purchase for you and your business. Compare the benefits of accelerated depreciation on a new aircraft with the up-front savings of purchasing a pre-owned jet. See this month’s Art of the Deal article to learn about how a qualified and experienced broker can help you determine the right choice for your individual goals.
For more information about Bonus Depreciation and Section 179 of the tax code, see http://www.nbaa.org/admin/taxes/depreciation/bonus/index.php and http://www.section179.org/section_179_deduction.html.
