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.
Purchasing a business jet is no small investment. After a company adds maintenance to the cost, even the occasional repair has a substantial impact on a company’s budget — especially if major repairs are necessary.
A guaranteed maintenance program (GMP) eases that burden and provides assurance that your aircraft is ready to take off at virtually any time.
Why you should look at a GMP
According to Conklin & de Decker’s AIReport, all of the major turbine engine manufacturers offer some form of an engine GMP. Also, a major third-party provider of these plans covers most popular business turbine engines. When you employ a GMP through a provider, you pay into an escrow account to cover future engine maintenance. The GMP provider manages the money and pays the bills.
Here are the reasons the AIReport recommends GMPs:
- GMPs cover scheduled maintenance expenses plus all unscheduled maintenance, such as line checks. Depending on the program options selected, some GMPs also cover rental engines and the removal, re-installation and shipping for the overhaul. Except for negligence and acts of God covered by your insurance, GMPs cover nearly everything.
- Accountants love stability in budgeting, and a GMP offers just that by removing all unplanned costs and surprises in the maintenance of the aircraft engine.
- GMP fees can be a business deduction because the money flows to a third party. Cash that’s simply set aside for future expenses is not deductible and can increase the corporation’s tax liability.
- A GMP also offers insurance against rare but costly unscheduled maintenance events. Although turbine engines are reliable, when an unscheduled event occurs, it can result in significant expenses.
- An engine GMP adds value to the aircraft if you are selling it. For example, if the GMP has accrued $350,000, the accrual adds cash value and reduces risk to the buyer because the engine maintenance costs are covered.
Engine GMPs have several benefits. They are a good way to maintain the value of your aircraft, provide stable budgeting and save money over a pay-as-you-go engine maintenance schedule.
Other services to consider
Depending on the GMP provider and options you choose, aircraft management companies offer a plethora of services. Everything from aircraft repair and maintenance to cleaning, insurance, crew costs and training may be included in a GMP. They may also provide additional services such as:
- discounted parts and labor
- guaranteed aircraft availability from their fleet when yours is in maintenance
- technical audits and inspections
- heavy maintenance and airframe repair
- maintenance predictions and cost modeling
- de-registration/registration process with international authorities
- detailed monthly flight, maintenance tracking and accounting reports
Some companies offer Part 135 aircraft management agreements that allow the provider to charter your aircraft when it is not in use. Such an arrangement lets you earn revenue from your investment and significantly defrays the cost of aircraft ownership with very limited drawbacks.
You took your time, shopped around and found the perfect aircraft. It’s a sweet little Cessna, with soft leather interior and custom cabinetry. You locked in a great interest rate, and the seller is motivated. Nothing but blue skies ahead, right?
Not so fast. One of the most critical — and complicated — steps in the buying cycle is the pre-purchase inspection. If the inspection is mismanaged or rushed, you could end up on the hook for expensive repairs and/or Federal Aviation Administration fines for some time to come.
The inspection process revealed
The pre-purchase inspection should be conducted by a qualified third-party repair center and not by the repair center where the aircraft is maintained. Inspectors will examine maintenance records and logs to ensure the aircraft received routine and proper care over its lifetime. They will also verify that parts and components were replaced on schedule. Incomplete, missing or shoddy records can indicate a neglectful repair history.
The inspection also requires review of compliance with Aircraft Directives (AD), an extensive set of instructions from the FAA to guide repairs and part and component replacement. ADs are numerous and unique to each plane’s model and serial number. There are additional ADs with special instructions for any modifications made to the aircraft components.
AD review can be a time-consuming, frustrating process, but your broker has the experience to spot red flags or suspicious gaps in record-keeping.
Your broker — more than just a pretty face
During the pre-purchase inspection process, brokers play two pivotal roles. The first is to ensure that the inspection is exhaustive, thorough and conducted by an independent service center.
The second role of the broker is to help you understand and assess the severity of any repair problems that are discovered. Inspection of a pre-owned jet is bound to reveal at least a few hitches, but your broker will advise you when these issues are cause for undue concern.
Repairs: The small, the significant and the show-stoppers
Many issues that pop up during inspection are cosmetic or relatively minor. The repair of scratched or cracked fixtures, burned-out panel lights and similar problems are not unusual or unexpected. Your broker, however, will make recommendations when the total repair costs of these secondary issues exceed what is considered acceptable or reasonable.
Of course, major problems that affect the airworthiness and safety of the airplane need to be addressed by the seller. Your broker can guide you through the next negotiation steps. The seller may be asked to handle and show proof of repairs, or your broker may request a reduction in the asking price of the plane. In extreme cases, your broker will know when walking away from the deal is your best option.
Don’t let pre-purchase inspection headaches kill the thrill of jet ownership. Rely on your broker to wrangle with the details. You can spend that time planning where your newly purchased plane will take you.
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 or visit our website.
Remember that Jerry Seinfeld joke years ago about “making up time” on an airplane? The captain apologizes for the late start, but he is sure they will make up time en route and land on time. Jerry wonders why jets don’t go as fast as possible all of the time. (This isn’t that clip, but it’s pretty funny!)
There are a lot of factors that affect jet travel speed and range. If you’re thinking of purchasing a jet, make sure you know the range that will work best for your frequent, routine trips. Then, keep in mind that the range given for an aircraft is a general estimate that can change depending on many external factors.
Basically, the range depends on the aircraft’s fuel economy — fuel is often the limiting factor on trips. Be aware of these factors that affect fuel economy:
You can read more details about considering the range of an aircraft in the most recent newsletter from our friends at Conklin and deDecker.
On Feb. 6, the U.S. Senate passed a Federal Aviation Administration (FAA) bill that will expedite moving the nation’s air-traffic control system from radar to global positioning system (GPS)-based technology. The House passed the bill the previous week, and now it moves to the White House for signing.
Among other things, the bill sets aside $11 billion of the $63.4 billion, four-year budget for modernization of the air traffic control system. It’s about time — this technological upgrade is overdue.
The U.S.has the most complicated air space in the world thanks to a vibrant and varied general aviation community, so the U.S. should definitely have the safest, most advanced control system possible.
GPS-based air traffic control has many advantages over the radar system:
- Positions are updated every second, rather than every six seconds.
- Closer together, more frequent take-offs and landings are possible.
- Pilots know exact locations of other aircraft and obstacles on the ground.
- Steeper descents use less fuel.
Also, the FAA predicts a 50 percent growth in air traffic over the next 10 years. Without GPS, that growth would be very difficult, if not impossible, to accommodate.
The FAA bill requires that a GPS-based landing program be in place at the 35 busiest airports by 2015. Onward and upward! After we get the GPS air traffic control in place, then we can start worrying about unmanned drones (airspace for them is also mandated in the bill) spying on us from above. Did someone say Overlord?
As usual, many things are happening in the aviation world. Take a minute to catch up on some of the biggest stories of the week.
Super Bowl XLVI
Flying to Indianapolis on Sunday will be challenging indeed. The FAA expects a record number of private flights in the area that day, and three temporary towers have been erected to deal with traffic. The National Business Aviation Association has all the resources you need to plan your private flight to the Super Bowl. Take care of the details so you can enjoy the game! Go Patriots! Go Giants!
Honda to Release Bizjet Next Year
Boasting operational costs as low as $1,000-$1,200 per hour, the HondaJet will be released in 2013. Honda began taking orders for the quiet, economical aircraft in 2006, and the automaker-turned-jetmaker plans to roll out 80 within the first half of 2013. The company fully expects to see a profit by 2018.
Do you think Honda will be profitable in five years? What if American carmakers started turning their attention to jets — would we all be flying everywhere individually, like the Jetsons?
Oklahoma Governor Opposes $100-Per-Flight Fee
The White House has declined a petition that calls for the abandonment of the plan to institute a $100-per–flight fee for general aviation. This fee would be used to pay for air traffic control; the Obama administration maintains that the current fuel tax does not bring in sufficient funds. Some legislators and governors, including Gov. Mary Fallin of Oklahoma, are speaking out against the fee. They point to recent tough economic times for general aviation as well as its significance to the economy as reasons to protest the proposed fee.
General Aviation in California Threatened by Avgas Suit
The Center for Environmental Health (CEH) has brought a lawsuit against suppliers and producers of 100-low-lead fuel, or avgas, used by piston-engine airplanes. The organization claims that the public was not warned about exposure to the leaded fuel, and this omission constitutes a violation of California law. Ostensibly, the suit is being brought in an attempt to hurry the process of finding an alternative, lead-free fuel to replace avgas.
Most people don’t think twice about taking a breath — but breathing is nothing to take for granted on an aircraft.
Too close for breathing comfort
The close quarters of a private jet — with limited breathing room — can increase the risk of catching an infection. In addition, pollutants such as engine fumes leaking into the cabin may pose a threat to the health of crew and passengers alike.
An aircraft cabin exposes occupants to outside and recirculated air, just like a home or office. On an aircraft, however, people are much closer together. Also, occupants can’t leave at will, and the aircraft interior must be pressurized.
Without ozone converters, elevated concentrations of ozone occur on aircraft, causing airway irritation and reduced lung function.
Technologies are available to address the issue of infections, contaminants and pollutants. AirManager, an air-sanitizing system adapted from one used in hospitals and nursing homes, can eliminate bacteria, viruses and other biohazards. It also destroys chemical pollutants and removes unpleasant smells.
Pressure rises
Pressure is also a breathing issue on aircraft. At 8,000 feet, a passenger’s oxygen intake is reduced by about 4 percent — not enough to cause harm, but enough to make passengers feel fatigue. Small children and people with cardio or pulmonary ailments may experience serious health effects.
But some aircraft manufacturers are working to combat the effects of pressurization. Some 2012 Gulfstream models, for example, will include technology that keeps cabin pressure equivalent to 2,800 feet, even when the aircraft is cruising at 41,000 feet.
If you require specific equipment or accommodations in your private aircraft, you can breathe easier with the help of a private jet broker. A professional broker can quickly locate the aircraft with just the features you need.
Although some mechanics are qualified to work on only certain aircraft components, airframe and powerplant mechanics (A&Ps) are certified by the FAA to work on every part of a plane, except instrumentation.
An A&P performs regular and routine inspection of the aircraft and keeps accurate records and documentation, ensuring compliance with FAA regulations. A&Ps are trained to diagnose and repair issues efficiently — but always with an emphasis on safety — to ensure the aircraft can be flown when needed.
To become FAA-certified, A&Ps must first receive practical experience or training by one of the following methods:
- Successful completion of a 12- to 24-month training program through an FAA-certified school
- Completing at least 30 months of aircraft repair and maintenance under the supervision of an FAA-certified mechanic
- Military service, usually augmented with additional study and/or work experience in a civilian environment
After satisfactory completion of the classroom or on-the-job training, A&Ps are then eligible to sit for a series of oral, written and practical exams administered by the FAA.
Specialized skills
As aircraft system design becomes increasingly sophisticated, A&Ps must be exceptionally computer-savvy. Mechanics use computerized diagnostic equipment to test and monitor all aircraft components, including the engine, propellers, powerplant and hydraulics. It’s also essential that mechanics keep abreast of the latest technological advances with continuing education and training.
Hiring a dedicated A&P (as opposed to using a repair service center) allows the technician to become familiar with the maintenance and repair history of your aircraft. Also, the A&P who works directly for the aircraft owner is apt to be invested in providing consistent, high-quality service. That knowledge and commitment translates to more accurate assessment of the jet’s overall health, better communication with the pilot and speedier repair times.
Hiring a qualified, professional A&P is critical, so request recommendations from other jet owners, check references and request proof of FAA certification. The extra effort you make to find the right mechanic will result in peace of mind down the road.
It’s always fun to think about the innovations and advances that will happen in the aviation industry. Especially in the design of corporate jets.
In November, Jeff Burger wrote a compelling commentary that practically begs for a reinvention of the corporate jet. He was opining about how the creativity and vision of the late Steve Jobs at Apple could do wonders for the jet industry. Instead of asking frequent travelers and industry insiders what they want, perhaps airplane designers should be proactive and show business travelers what they have been missing.
So much is made about the incredibly luxurious, world-class flying castles. Transparent floors, in-flight concerts, spiral staircases and fern-lined walls are simply not typical (or feasible) for the vast majority of private and corporate aircraft.
Instead of concentrating on over-the-top interiors that only a handful of billionaires will enjoy, remember how the simple things are often better. Steve Jobs planned his airplane to the most minute detail — famously replacing separate open and close buttons with a single toggle switch. It’s that attention to detail on the typical corporate jets that will be truly innovative.
The FAA launched a new campaign on Nov. 8, 2011, asking the entire GA community to increase its reporting of wildlife collisions with aircraft. The main outreach component of the effort includes the printing and distribution of 12,000 posters to the GA community. The poster, “Report Wildlife Strikes,” is designed for frequently used areas, like training and break rooms.
The Wright Brothers documented the first aircraft-wildlife collision in 1905 in Dayton, Ohio. Obviously, aircraft and birds have endured a tenuous relationship since the beginning of air travel.
The FAA has had a wildlife hazard management program in effect for more than 50 years. From 1990-2010, more than 121,000 strikes were reported, but only 6 percent of these instances were from GA. The FAA is trying to change that. The factsheet released Nov. 8 explains innovations the agency has made to make wildlife hazard reporting easier.
- The poster contains a QR code, so anyone with a smartphone that is QR-code equipped can report a wildlife strike.
- The FAA set up a new website that easily allows users to report an incident.
Wildlife strikes endanger human and animal lives, and they cause significant damage to private property. You can see the aftermath of these collisions at a gallery on the wildlife mitigation website. Access to comprehensive data about the number of incidents, localities and the species involved allows researchers and officials to improve safety at airports and in the air.
