How many business class tickets does your company buy annually? If you have two employees traveling internationally twice monthly on different flights, you’re booking nearly 100 flights annually (departure and return).
How many of those flights will be delayed or cancelled? How many times will your workers’ luggage get lost at a layover? What will the average cost of these tickets be each month? There’s a lot to consider here, and the numbers can paint a pretty grim picture of commercial travel.
Commercial aviation woes
Flying first class (or even business class) may feel better than hitching a ride in economy. But where you sit on the plane has nothing to do with the logistics of commercial air travel. If something goes wrong — such as a delay, cancellation, or problem boarding — all passengers are affected equally.
For every issue with commercial air travel you encounter, there’s a cost. This cost gets added to what you’ve already paid for tickets — and it’s not always a cost measured in dollars. Take a look at how they can add up:
Delays and cancellations are extremely common and can vary widely based on where you’re flying to and from, as well as weather patterns at the time. Every hour you’re delayed has rippling costs to your trip and the bottom line of your company’s balance sheet.
Layovers may be part of the trip, but they’re an inconvenience and a time-suck nonetheless. And with every additional layover comes the potential for further delays or mishaps with luggage or itineraries.
Lost luggage happens much less frequently these days, but it still occurs from time to time — especially flying internationally. Between random TSA inspections and multi-leg fights, lost luggage becomes a real possibility and, if it occurs, a real problem.
Technology troubles come with their own costs. Can’t work on the plane because the Wi-Fi is down? Issues getting the bandwidth you need at the airport? Nowhere to charge your phone on the plane? These minor inconveniences quickly amount to costly setbacks for businesses.
Compile every dollar spent, lost hour, and inconvenience — and commercial flights suddenly don’t seem so appealing. And with ticket prices subject to wild fluctuation, there’s no telling what the final cost to fly may be. If you’re buying 100 tickets a year, this is likely too much invariability to be comfortable with.
Chartered aviation to the rescue
Private aviation flips the script, taking all the negatives of commercial flights and all but abolishing them. Check out how BizAv broadly eliminates the setbacks and headaches that define commercial aviation:
There are no long lines to navigate for a chartered flight. It leaves when you’re ready.
There’s no noise or restriction onboard. It’s just you and your business, ready to work.
Forget about layovers! Direct to destination charters save you invaluable time.
BizAv delays are few and far between, and you’ll typically have far better notice.
The cost of chartered flights is comparable to first-class flights in many cases.
No lost luggage or complicated baggage claims. Your luggage is with you at all times.
Private aviation brings certainty to your demand for flying. If you know you’re buying 100 tickets per year and roughly where you’ll be flying, something like an investment in fractional flights or a jet card attaches a real, true-dollar figure to your travel outlook.
There are many concerns surrounding commercial aviation — most of which you have little control over. What you can control is the decision to charter your business flights. In doing so, you’ll introduce certainty to a previously uncertain situation.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
There’s a lot going on in the private and business aviation industry: Many soon-to-be-released luxury jets are about to enter the market, pre-owned jet prices are stabilizing, and the ADS-B mandate deadline looms. Here’s an overview of what’s happening and what it means for those trying to decide whether to purchase new aircraft, go with pre-owned models, or upgrade their current jets.
New models
Quite a lot of buzz surrounds new luxury jet models coming soon to market. Here’s a taste of what’s on the horizon for those looking to purchase a new high-end aircraft:
Boeing 787 Dreamliner – Source: Boeing
Boeing 787 Dreamliner — If you demand nothing less than the height of luxury, the VVIP Dreamliner might be the next jet for you. With the ability to fly nonstop for more than 17 hours, this model provides flyers plenty of time to enjoy its more than 2,400 square feet of cabin space with heated marble floors, a king-size bed, walk-in closet, and full-size shower. If you want to test it out before buying, you can charter this penthouse in the sky for you and 39 of your closest friends for a mere $70,000 per hour.
Embraer Legacy 500 – Source: Flyingmag.com
Embraer Legacy 500 and 450 — Brazilian aircraft manufacturer Embraer’s Legacy 500 and its slightly shorter sister, the Legacy 450, are some of the fastest jets in the midsize and “mid light” aircraft categories, delivering a high-speed cruise of Mach 0.79 to 0.82, respectively. They are some of only under-$50 million jets that feature full fly-by-wire flight controls. The Legacy 450, with a range of 1,300 nautical miles (nm), has a cabin four feet shorter than the 500, which has a 3,000-nautical-mile range. Both feature superb passenger comfort, low turbulence, and low noise levels.
Gulfstream G500 – Source: Wikipedia
Gulfstream G500 — Gulfstream’s long-range, large-cabin business jet is scheduled to enter into service in 2019. Its Pratt & Whitney Canada PW814GA engines reduce fuel consumption as well as cut emissions and noise. It sports 27-inch-wide seats with footrests for extra comfortable rides for as many as 19 passengers and includes a large, fully equipped galley. The G500 has a range of 5,200 nm and offers a state-of-the-art Wi-Fi and entertainment system as well as full digital fly-by-wire flight controls.
Pilatus PC-24 – Source: Wikipedia
Pilatus PC-24 — The PC-24 super versatile jet is the first business jet from Swiss manufacturer Pilatus Aircraft. The 10-passenger aircraft, for which deliveries began in January 2018, has a list price of just under $9 million. Its large aft door can handle standard cargo pallets, it flies as fast as 440 knots, and the PC-24 can fly six passengers 1,800 nm. Buyers can even choose among seven cabin layouts for this area that offer more overall space than its more expensive competitors. In addition, the light jet can use grass, gravel, or dirt runways as well as runways less than 2,700 feet, according to the Barron’s article.
Changes in the pre-owned market
Buyers who are not ready to go all-in on a new jet might want to take a look at the pre-owned market while they still can. Although the pre-owned Gulfstream market has been struggling over the past several years, according to an AINOnline article, an increase in pre-owned sales, decreasing inventories, and stabilizing prices have contributed to its ongoing recovery. For example, less than 4% of Gulfstream G650 and G550 fleets are for sale, which is extremely low compared to recent years.
Inventories for older Gulfstream models, however, such as the GIV-SP and G-V, are still high. In addition, values for the G550, which had been dropping nearly 20% per year for three years, have leveled off. Plus, new tax rules that allow for 100% depreciation during the first year for both new and pre-owned jets will likely boost sales in both categories in the coming year.
For those who plan to acquire a pre-owned aircraft, keep in mind the ADS-B mandate, which requires all aircraft be updated by January 2020. ADS-B Out equipment can be expensive, and slots for performing the upgrades are filling up fast. You don’t want your pre-owned new-to-you jet to lose its value or end up in the scrap heap because of your failure to comply.
Buying a jet, whether the latest model or a pre-owned model, can be a daunting, time-consuming process. To make the best of your next jet purchase, seek out an expert who understands the markets and can help you get the aircraft for your needs at the right price.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
In the 1960s, a great deal of excitement and anticipation surrounded supersonic transport (SST) aircraft in the business and commercial aviation industries. We’ve revisited the topic several times over the years as new developments seemed on the verge of becoming realities, like Spike Aerospace’s S-512 supersonic jet and Aerion Corp.’s experimental Supersonic Business Jet (SBJ). But roadblocks along the way have delayed their entrance into the market. Noise and emissions regulations, high costs, and safety concerns have cooled initial high hopes — and led to the demise of the Concorde, the only commercial SST jet — but industry experts still believe civil SST aircraft are on the horizon.
Source: New Atlas
How soon?
In December 2017, Lockheed Martin Corp. and Aerion Corp. announced they were partnering to manufacture a fast business jet that would fly up to Mach 1.4 and create renewed interest in supersonic jet travel. The partnership is interesting because Lockheed Martin is the biggest name in military aircraft, the company’s key focus throughout its history. However, the manufacturers at Lockheed Martin succeeded in building the world’s first business jet, which operated during the 1960s and 1970s. Leaders at Lockheed Martin and Aerion hope their first supersonic business jet, to be named the AS2, will take its first flight in 2023 with certification following in 2025.
Aerion and Lockheed stakeholders teamed up with General Electric Co. to design the new plane’s engine, which will allow the aircraft to fly up to 4,200 nautical miles at a speed 1.4 times the speed of sound. Aerion has already begun taking orders for the AS2 and expects to sell 300 over the next decade, according to The Washington Post article.
One of the biggest challenges for supersonic jet developers has been finding a way to minimize the sonic booms that occur when an aircraft surpasses the speed of sound. Such flights are prohibited over land, and Lockheed has been working with NASA over the past few years to come up with a way to mitigate the booms.
Aside from bone-rattling booms, AS2 makers also face the challenge of securing financing. To fund the supersonic business jet, Aerion plans to sell off as much as $200 million in debt. “That would get us through to the preliminary design phase, which would be about two years out,” said Brian Barents, executive chairman of Aerion, in an article in The National.
AS2 benefits
Aerion executives are willing to invest so much in developing the first supersonic business jet not only because they realize it will be a historical accomplishment but because the AS2 will also offer many benefits to passengers. It will be able to seat 12, and its faster-than-sound speed will cut three hours off a transatlantic flight from London to New York. That means a business executive could make the trip in just four or five hours, a tremendous benefit for executives whose businesses have strong presences in global markets. The jet could also carry diplomats, military, medical, or other officials to their destinations more quickly than other available transportation options. In addition, advanced aerodynamics will allow the AS2 to have a spacious, comfortable cabin without greatly impacting airframe drag and performance.
Source: New Atlas
Although the AS2 likely won’t be operational for another seven or eight years, its development could be signaling the beginning of a new and exciting age for business aviation. Will AS2 technologies lay the groundwork for future supersonic business jets? Only time will tell. But for business jet travelers, time is money, and the ability to reach their destinations with such speed is something many are willing to pay top-dollar for.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
In the final weeks of 2017, the country watched the debate, negotiations, and final passage of the federal tax overhaul. One segment of the population that was closely watching included private and business aviation industry members, and they had a vested interest in the outcome. Some tax cut provisions, however, have created a stir among those in the general public. Here’s the story — and a rundown of what this tax reform means to jet owners and those who plan to purchase in the near future.
The federal tax overhaul
The headlines — like this one, for example, “Republican Tax Bill Gives Private Jet Owners a Tax Break” — may sound inflammatory: Such assertions can rile the public, especially in light of recent controversies over some Cabinet members’ use of private jets. True, the reforms do contain provisions that benefit jet owners, but many headlines are misleading — and not all parts of the reform are positive for those in the private and business jet industry.
Exemption for private jet management — The provision giving rise to public disapproval is, in actuality, simply a clarification of an earlier law. Current tax laws require aircraft management companies to collect a 7.5% ticketing tax. However, it had been unclear if companies that staffed and maintained private jets were considered aircraft management companies. Then, in 2012, the IRS ruled these service companies were in fact considered aircraft management companies and therefore should be collecting the tax and should be liable for back taxes. After protests, however, the IRS stopped its efforts to collect taxes until further review. The tax reform bill makes that ruling formal: Aircraft management companies are not responsible for paying the 7.5% per-ticket airline tax.
Depreciation benefits — If you plan to purchase a new business jet in the near future, this one’s for you. You will get to depreciate 100% of the aircraft’s value during the first year. No, that’s not a typo. Under the act, bonus depreciation applies to both new and pre-owned aircraft purchased between Sept. 27, 2017, and Jan. 1, 2023. This is great news for business aviation industry members, and the National Business Aviation Association (NBAA) predicts it will lead to more jet sales and open new markets to the benefits of business aviation.
Like-kind exchange elimination — The provision that allows businesses to defer taxes on newly manufactured business property purchased to replace older equipment is repealed in the tax overhaul. Now, business property no longer includes aircraft used for business purposes. This is not good news for the industry overall, but the depreciation benefits in the bill will largely offset lost like-kind exchange benefits.
Those are just a few of the main provisions affecting private and business aviation industry insiders. Although the loss of the like-kind exchange may hurt some corporate jet owners wishing to upgrade their aircraft, the ability to expense 100% of your new jet within the first year makes now a great time to purchase a new or pre-owned aircraft. But buyer beware: With these new legal changes, it’s important to seek advice from an expert partner so you can make the most of your purchase under the act.
Considering acquiring a business jet? Here’s what you need to know
100% depreciation — The new tax plan allows owners to write off 100% of the cost of their business jets — including pre-owned jets — for purchases made after Sept. 27, 2017. Bonus depreciation will end Jan. 1, 2023.
Lower corporate tax rates — With less to pay in taxes under the new plan, companies whose corporate leaders have never owned aircraft may consider investing in business jets.
Reduced inventory — As more buyers enter the market, pre-owned inventories may become sparse.
Higher jet prices — Fewer pre-owned jets for sale and long wait times for new jet deliveries may drive prices up.
If you’re ready to begin your search, the best time is now. How would you like to fly?
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
For most people looking to purchase their first jets, choosing pre-owned aircraft is a sensible way to go. A pre-owned jet will cost substantially less than a new one and, although it won’t have the latest cutting-edge technologies, a 15- or 20-year-old jet differs very little in functionality, safety, and performance from new jets. The popularity of the pre-owned market, as well as more people holding on to and refurbishing their older jets, has resulted in pre-owned jet inventory levels at the lowest point since 2008. How does that figure into today’s private and business aviation market?
With a decline of 0.9% over last year, 10.8% of active business jets are for sale, and sales of pre-owned jets are up 6% year over year, leading many to believe the business aviation market is starting to bounce back. One thing is for sure, the price of a jet is at its lowest in a very long time — but for how long? If you might be in the market for a new jet any time soon, you might want to start looking sooner rather than later as there may never be a better time to buy.
Benefits of new
There’s just nothing like the thrill of walking onto a new jet and calling it yours. But that feeling is not the only reason buying new might be a good choice. Lenders typically offer better financing terms on new jets, and new aircraft typically come with warranties, so repair and maintenance costs won’t add up to as much during the warranty period.
Depreciation is another reason to buy new. If a new aircraft is deemed necessary for business use, it depreciates under the Modified Accelerated Cost Recovery System (MACRS). Tax laws are complicated, so consult a tax expert specializing in aircraft so you receive all the tax benefits you’re entitled to.
Another reason people are choosing to buy new is to get the latest and greatest. New jets have state-of-the art equipment for greater durability, safety, fuel efficiency, and comfort. New jets will also be equipped with the mandated Automatic Dependent Surveillance-Broadcast (ADS-B), which is required by Jan. 1, 2020.
You can customize a new jet with your own design and equipment preferences, and resale values for new versus older pre-owned jets are much higher. So, don’t just consider the initial cost when choosing between buying new and pre-owned; you need to consider the jet’s entire life cycle.
When choosing between new, pre-owned, or whether to buy a jet at all at this time, there are many factors to consider. With economic and political uncertainties in the world today, it’s difficult to predict where the market is heading and whether prices of new and pre-owned have bottomed out. Every potential buyer’s situation will be different, so it’s important to do your research to determine the best solution for you.
Contact the experts at 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 you think of private jets, the first brand that likely comes to mind is Gulfstream. No other jet brand has been a part of pop culture like Gulfstream, a name immortalized in songs and music videos and made synonymous with luxury or the “high life.” A huge part of this reputation comes from the Gulfstream G550, winner of the prestigious Robert J. Collier Trophy when it was the company’s flagship aircraft.
History and technological breakthroughs
The $46.5 million Gulfstream G550 entered service in 2003. It was the first business jet of its kind to feature a “glass cockpit” called PlaneView – a technology aviation industry insiders dreamt of for decades. Technology features include four 14-inch LCD displays that cover the entire instrument panel, offering pilots more viewing area and the ability to see every instrument and data set necessary to fly the jet. Gulfstream also delivered on its promise to add space to the cabin and increase range with this model.
Record-breaking performance
The G550 boasts the ability to fly 6,750 nautical miles nonstop while still being nimble enough to take off from short-field and high-altitude airports. It can fly 12 hours nonstop while transporting 19 passengers.
This month, Gulfstream announced that it delivered its 550th G550, cementing the aircraft’s position of quality and excellence in the world of business aviation. Although it has been around for more than a decade, the G550 still boasts a set of impressive features.
For starters, wireless internet, satellite communication, and an iridium phone and printer come as standard equipment, according to Gulfstream, allowing you to continue being productive in the air. Owners can also configure their G550s to accommodate beds for eight people or fit four living areas such as a private stateroom, rest areas for the crew, and an entertainment space.
Fourteen years after its initial release, the Gulfstream G550 continues to live up to its fantastic reputation.
If you are considering purchasing or selling a business jet, contact the professionals at L & L International. You can reach our sales specialists today at sales@L-Lint.com, call us anytime at +1.305.754.3313, or visit us online.
In the North American market, the demand for business jets appears to be increasing, according to recent forecast predictions from Embraer and Honeywell Aerospace. While political tensions and sluggish economic growth are driving a reserved approach to purchasing, operators continue to invest in aircraft retrofits and upgrades for existing jets, boosting aftermarket opportunities for preowned purchasers.
Embraer, offering a fleet of business jets including the Legacy and Phenom series, entered the business aviation market in 2000 and continues to enjoy large market acceptance. Embraer recently announced a modest increase in demand of 3% as well as a slight increase in deliveries compared with the previous decade.
This year’s Honeywell Business aviation Forecast predicts a similar 3% annual growth rate through 2025.
Lost momentum
Honeywell reports that growth in Brazil, Russia, India, and China has lost momentum. Slightly lowered purchases in the Middle East and Africa are to be expected due to significant political issues and ongoing conflicts, as is a decrease in Europe, which continues to deal with poor growth, a refugee crisis, and depreciated currency. The excitement is also gone from the Asia-Pacific market, with disappointing growth figures from government austerity measures and ongoing regional tensions.
Who is ordering jets?
According to Embraer, while the North American market continues to drive demand with orders for 4,850 aircraft, it is followed by:
Europe and Africa with 2,100 jets
The Middle East and Asia-Pacific with 1,500
Latin America with 650
Large jets continue to lead the market in terms of units and value, but midsize jets are expected to regain some of their former traction, which is good news for Embraer’s new Legacy 450 and 500 aircraft. In the short term, the light jet market continues to struggle with low estimated deliveries.
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 overall jet market is still down after the recession, but with the economy slowly and steadily picking up, purchasing a private jet now could be the smart move your business needs.
1. How much will it cost?
The cost of a private jet varies considerably based on the type of jet, whether it is new or used, and the features it boasts. Of course, the initial purchase price is just the start and you must factor maintenance, storage (hangarage), pilot and crew, fuel, insurance, and more into your budget to get the full picture of what it will cost to own and operate a private jet.
2. Should you buy new or used?
In this regard, buying an aircraft is much like buying a new car. Preowned aircraft are normally purchased on an “as-is” basis, meaning the buyer accepts the aircraft in its current condition. The depreciation of the aircraft is factored into the price, and the value is often quite good when buying a used aircraft.
Similar to buying a used car, you will want to have the aircraft’s maintenance documents and log books thoroughly reviewed by someone experienced in aircraft ownership.
3. What size do you need?
Determining the aircraft size is critical to your private jet purchase.
Take into account the typical number of people who will be traveling, but consider clients and their partners, too.
Next, take a look at how far your plane will be traveling; the distance will affect the size of plane as well.
Last, consider how often you plan to travel with your private jet. The number of flights will help you determine your operating costs.
4. How to crew your aircraft?
Choosing how to crew your aircraft is another consideration when it comes to purchasing a private jet. This includes maintenance and flight crew — all the people and expertise needed to keep your jet in perfect condition and you flying in perfect safety and comfort. When you purchase a private jet, look into the options available for a management company that can maintain and oversee your aircraft, as well as hire a pilot and flight crew.
5. Do it yourself or find a partner?
Unfortunately, buying a private jet isn’t as easy as buying a car — there are many FAA regulations and tax-related legalities that must be considered. Having your own legal advisor will make the process easier, but working with an experienced partner can make a big difference in how much you’ll spend and what type of aircraft you purchase. A partner can also help you navigate the options for a trustworthy and affordable management service provider.
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.
Compile every dollar spent, lost hour, and inconvenience — and commercial flights suddenly don’t seem so appealing. And with ticket prices subject to wild fluctuation, there’s no telling what the final cost to fly may be. If you’re buying 100 tickets a year, this is likely too much invariability to be comfortable with.
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In the North American market, the demand for business jets appears to be increasing, according to recent forecast predictions from 
The overall jet market is still down after the recession, but with the economy slowly and steadily picking up, purchasing a private jet now could be the smart move your business needs.