April 18, 2024
Thursday

FBO Sonoma Jet Center at California's Charles M. Schulz–Sonoma County Airport (KSTS) is staging a Green Fuel Day celebration to demonstrate the company’s commitment to cleaner aviation and the adoption of sustainable aviation fuel (SAF). Parent company Sonoma Aviation, which also operates the Carlsbad Jet Center, is kicking off its Green Week festivities by offering SAF today at KSTS at the same price as conventional jet-A, with the $2.50-per-gallon price delta covered by fuel provider Avfuel.

Sonoma Aviation has stocked California-produced SAF since 2021, with each truckload of 30 percent SAF fuel blend contributing to a 19-tonne decrease in net carbon emissions. This year, the company expects to sell more than 100,000 gallons of SAF.

“Adopting sustainable aviation fuel is a crucial step toward ensuring that future generations inherit a passion for aviation and a cleaner environment,” said Sonoma Jet Center president Josh Hochberg.

Avfuel is a leading distributor for SAF—which in its neat form can reduce lifecycle carbon emissions by up to 80 percent versus jet-A—supplying it to OEMs, 13 FBOs, and directly to corporate flight departments.

“This Green Day Fuel Celebration provides a great opportunity to not only further educate the business aviation community, but the community at large on what SAF is and how it’s helping our industry achieve real, measurable sustainability goals,” explained David Mittleman, Avfuel’s senior sales manager for the Western U.S.

The IRS is using additional resources and new AI tools as it delves into the possible noncompliance issues with the largest U.S. corporations and partnerships, including in the area of corporate aircraft use, IRS Commissioner Daniel Werfel told lawmakers this week.

During a U.S. Senate Finance Committee hearing on the 2025 budget, as well as the 2024 filing season, Werfel reiterated that the agency is “closely examining potential noncompliance” and had opened audits of more than 75 of the largest U.S. partners that on average have more than $10 billion in assets across industries.

He pointed to plans to also begin dozens of new audits on corporate aircraft involving personal use as “another illustration” of how the IRS is looking to address “high-risk compliance areas.” “We are concerned people are using business aircraft for personal use, which means the businesses are taking deductions they may not be fully entitled to,” he noted.

Werfel conceded that this is a complex area, and in the past the IRS staff has been stretched thin. “With expanded resources, these aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities,” he maintained.

Finance Committee Chairman Ron Wyden (D-Oregon) acknowledged the new effort “to root out the abuse of tax breaks for corporate jets—high-flying executives who take tax write-offs for personal travel.” 

The notifications of audits surrounding business aircraft use are anticipated to pick up in the next several months. NBAA has been monitoring this effort closely.

Inventory of preowned business jets is now 4.8 percent of the in-service fleet, according to the latest monthly report by Jefferies Equity Research, but remains 67 percent below the August 2009 peak. The report also noted that average used jet pricing declined by 2 percent YOY but rose by 1 percent month-over-month.

Last month, there were 1,116 jets for sale versus 922 in April 2023. For young aircraft—those less than seven years old—there was a 27 percent increase year-over-year (YOY), to 3.7 percent of the active fleet.

Midsize jets on the market were up 31 percent YOY, followed by light jets (+28 percent) and heavy/large-cabin jets (+16 percent). Among the major OEMs, all had rising inventory—with the exception of Embraer, which saw its available aircraft decline by 19 percent, to 29 jets.

For the year, Jefferies forecasts new-production business jet delivery growth of 19 percent, spurred by service entry of Gulfstream’s new flagship G700 and the ramp-up of Falcon 6X manufacturing at Dassault.

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NBAA’s northeast regional director Brittany Davies testified this week before a New York City council hearing, arguing that recent efforts by the council to curb "non-essential" helicopter usage in the city would damage both the transportation system and the economic infrastructure.

The council’s Committee on Economic Development’s agenda items included calling for the state legislature to establish a noise tax on “non-essential” helicopter and seaplane operations, a motion to the FAA to ban such charter and tourist flights outright, and restricting operations at city heliports to only electric-powered rotorcraft.

“New York City is an international hub for commerce and intermodal transportation,” Davies said. “The proposed restrictions on helicopter operations at the city’s heliports would be devastating to New York City’s economy, operators, business, and workers that contribute to the creation of 43,200 jobs and generation of $8.6 billion in total economic output.”

Davies also cited the NBAA’s work toward the industry achieving net-zero carbon emissions by 2050 in response to criticism of the environmental impact of business aviation.

The FAA has qualified uAvionix’s FlightLine ADS-B surveillance and situational awareness system for the Surface Awareness Initiative (SAI). The SAI program offers a more cost-effective alternative for airports that aren’t equipped with surface surveillance equipment.

“The FAA has identified over 230 airports that are potential candidates for an SAI solution,” according to uAvionix, and an operational needs assessment lists 45 that are first candidates. Two airports are deploying FlightLine SAI installations—Indianapolis International Airport and Austin-Bergstrom International Airport—and these will be operational by June 30.

FlightLine captures ADS-B signals from aircraft and ground vehicles on both the 978- and 1090- MHz ADS-B bands. Ground vehicles can be equipped with approved ADS-B Out systems, including uAvionix’s VTU-20. Traffic is displayed on an airport surface map that “will at a minimum depict runways, taxiways, hold ramps, and other movement areas,” the company said.

“Uniquely, because we have control over the network and the receivers, we are able to validate the ADS-B signals to address concerns over false targets and spoofing,” a uAvionix spokesman told AIN. In partnership with Capital Sciences, uAvionix can deploy and manage FlightLine as a turnkey service that includes training, sustainment, and upgrades.

“This is a clear example of how industry’s innovation to bring new entrants into the airspace has resulted in near-term opportunities to enhance safety for traditional aviation,“ said uAvionix CEO Jon Damush.

Fractional ownership aircraft provider Volato’s flight hours in the first three months dipped slightly quarter-over-quarter, according to key performance indicators the company released this morning. Volato is the largest HondaJet fleet operator in the U.S., and its 26 light jets flew nearly 3,000 hours in the first three months of 2024, down from more than 3,500 hours in fourth-quarter 2023.

Of that amount, however, the percentage of hours considered “empty” or non-occupied declined quarter-over-quarter from 37.9 percent to 35.1 percent, denoting improved fleet efficiency.

In the first quarter, the usage mix was split evenly between ownership and program/ad hoc charter, and its blended yield—the average occupied price per hour across all the company’s usage types—remained strong at more than $5,300 per hour.

“We continue to focus on growing our flight hours and optimizing our demand mix to achieve a higher blended score and lower empty percentage,” said company CFO Mark Heinen. “We are pleased the blended yield remained strong despite the impact of winter weather and fewer peak calendar days in Q1.”

On Monday, Volato’s executives celebrated the company’s listing on the New York Stock Exchange by ringing the closing bell. It became a publicly traded company via a SPAC merger in December.

SUSTAINABILITY QUESTION OF THE WEEK

True or False: Purchasing sustainable aviation fuel (SAF) via book-and-claim has no comparable concept—it's a new accounting process that the aviation industry is determining in real-time.
  • A. True
  • B. False

Bend, Oregon-based training provider Leading Edge Flight Academy has upgraded its Robinson R44 helicopters with FreeFlight Systems 5G-tolerant radar altimeters. The RA-4500 MK II radar altimeters are upgraded from the RA-4500s installed in the R44s that were “affecting its pilot training sessions and operations,” according to FreeFlight.

Radar altimeters provide essential information for the operation of helicopter terrain avoidance and warning systems. “Ensuring the safety of our pilots and students is our top priority at Leading Edge, which is why we took immediate action when we noticed the interference caused by 5G transmissions," said Travis Warthen, president of Leading Edge Flight Academy. "As existing customers of FreeFlight, we know the quality of their products and their commitment to addressing the 5G interference. That's why we upgraded our RA-4500 [units] to the RA-4500 Mark II."

Part 141 training provider Leading Edge offers both airplane and helicopter training. Its helicopter courses include mountain flying, as well as night vision goggle and external load operations.

The RA-4500 MK II is a direct replacement for the RA-4500. For other applications, FreeFlight offers the RA-5500 for airplanes and Part 27 helicopters and the RA-6500 for Part 29 helicopters and business jets.

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UPCOMING EVENTS

  • NBAA MAINTENANCE CONFERENCE
  • PORTLAND, OREGON
  • April 30 - May 2, 2024
 
  • BUSINESS AVIATION SAFETY SUMMIT (BASS)
  • AUSTIN, TEXAS
  • April 30 - May 1, 2024
 
  • NBAA BUSINESS AVIATION TAXES SEMINAR
  • DALLAS, TEXAS
  • May 15, 2024
 
  • EUROPEAN BUSINESS AVIATION CONVENTION & EXHIBITION (EBACE)
  • GENEVA, SWITZERLAND
  • May 28 - 30, 2024
 
  • AIRCRAFT INTERIORS EXPO
  • HAMBURG, GERMANY
  • May 28 - 30, 2024
 
  • NBAA WHITE PLAINS REGIONAL FORUM
  • WHITE PLAINS, NEW YORK
  • June 12, 2024
 
  • CBAA CONVENTION 2024
  • MONTREAL, CANADA
  • June 18 - 20, 2024
 
  • FLIGHTSIMEXPO 2024
  • LAS VEGAS, NEVADA
  • June 21 - 23, 2024
 

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