Preowned business aircraft values remain strong, although there is some evidence that the seller’s market may be changing, according to the third-quarter 2022 Vref Market Trend Report. These strong valuations persist despite inflation and recessionary fears, Vref said.
A summer slowdown hasn’t affected most aircraft model prices, the report notes, and “buyers’ appetite for business jets remains at levels not seen in years.” While there was an uptick in inventory for turboprops and business jets, the averages stand low at between 3 and 4 percent of the in-service fleet. However, these averages have edged up between 1 and 2 percentage points from the end of last year. Business jet valuations have continued to climb, the report says, noting that, for example, Cessna Citation values have increased between 2 and 20 percent from the second quarter.
The report notes that days on market have remained unchanged from the first and second quarters. Still, Vref president Jason Zilberbrand pointed out that there are instances of some valuations weakening. “Demand continues to outpace supply, although we may finally be hitting the apex for asking prices,” he said.
Vref forecasts a “hectic” fourth quarter as buyers continue to take advantage of bonus depreciation before it expires and because of a “loathing of commercial carriers” that is “enough to keep the train on the track, keeping demand and asking prices at current levels.”
We are approaching the end of the second year of record purchases by first-time business aircraft buyers. Some entered this orbit being frustrated or even scared by airlines and public airports because of Covid, while others were lured by 100 percent bonus depreciation on both new and preowned aircraft.
Regardless of the reason for entering, they all came with certain expectations of what private aircraft ownership would mean to them and what steps had to be taken to achieve their goal.
Over these 24 months, we have had our fair share of first-time buyers also come to us to achieve the dream. I took some time this week to circle back with a few of our clients to see how ownership was meeting their needs and/or their expectations.
I also wanted to ask about the steps that had to be taken to prepare for ownership and if the process was what they had expected. Just because we are ending the second year, we are by no means at the end of the line of people who are still considering, or actually entering, this world.
The FAA yesterday granted supplemental type certificates (STCs) for the use of the General Aviation Modifications Inc. (GAMI) G100UL high-octane unleaded fuel throughout the piston-powered aircraft fleet.
Under the broad approval, the agency is requiring GAMI to work with aircraft owners to track and report any mechanical issues that may arise from the use of the fuel, as well as to track fuel deliveries to airports across the nation. The move followed a review by an independent technical panel that evaluated GAMI’s test results and other documentation, the FAA said, adding it plans to use the same process for other potential unleaded fuel candidates as they near readiness for the market.
GAMI first obtained an STC in July 2021 for use of the high-octane unleaded gas, initially for the Lycoming engines that power some Cessna 172s. It since worked to expand the approved model list to cover the fleet of spark-ignition piston-powered aircraft and engines.
“This is a big day for the industry. It means that for a lot of our general aviation communities, and especially for a high fraction on the West Coast, relief is on the way,” said GAMI co-founder George Braly.
Distribution will be limited initially with a rapid ramp-up anticipated after that, possibly in the 2024 timeframe. In addition to GAMI, Swift Fuels, Afton/Phillips66, and Lyondell/VP-Racing are testing high-octane unleaded avgas candidates.
Chicago DuPage Airport yesterday opened a $1.3 million U.S. Customs and Border Protection (CBP) facility. The 2,200-sq-ft, user-fee CBP facility is conveniently located on the first floor of the DuPage Flight Center FBO.
“This new facility adds to DuPage Airport’s top-tier aviation services, including the region’s longest runway outside of O’Hare, the 24/7 FAA air traffic control tower, aircraft rescue and firefighting capability, award-winning snow removal, and fueling and support through the DuPage Flight Center,” said DuPage Airport Authority (DAA) chairman Herbert Getz. “DuPage Airport is the premiere general aviation and corporate facility not only in Chicagoland, but across the nation.”
DuPage is the third-busiest airport in Illinois, behind only Chicago O’Hare International and Midway International airports. The general aviation airfield generates more than $1.5 billion in economic impact, supporting more than 5,500 jobs in the Chicago region, according to the DAA.
“DuPage Airport has a tremendous economic impact on the city of West Chicago and the region as a whole, and this new customs facility will only enhance that,” said West Chicago mayor Ruben Pineda. “Whether they’re flying for business or pleasure, international travelers will be very welcome at DuPage Airport.”
The latest operating system upgrade for Avidyne navigators is now available as a free software upgrade, although it must be installed by an authorized Avidyne dealer. The AviOS10.3 upgrade has received FAA technical standard order and supplemental type certificate approval for IFD-series FMS/GPS/navcoms and Atlas/Helios flight management systems (FMS).
Key new features include a visual approach with pilot-selectable straight-in, base, or downwind entries and glideslope angle. Optional TAWS is available for $7,999. Helicopter operators will appreciate the new radar altimeter display, power line database, half-mile zoom range, and optional three arc-second high-definition terrain database.
New IFD and Atlas/Helios features include VNAV (advisory on the IFD5XX series), CDI scaling for oceanic mode, an interface with Garmin’s GI 275 electronic flight instrument, map zoom to half a mile, radius-to-fix legs, and display of ADS-B weather and traffic from portable devices. Additionally, it offers extended support for flight operational quality assurance programs, twin-engine fuel calculation support, importing of user waypoints from a CSV file, weight calculator, and other improvements.
Release of the new software was delayed in part by the pandemic and supply chain issues, according to Avidyne president and CEO Dan Schwinn. “AviOS10.3 includes several significant new functions and features that will continue to keep our FMS line at the forefront in general and business aviation avionics.”
SmartSky Networks this week unveiled its partnership with Oklahoma-based Liberty Partners, which is the company behind the recent supplemental type certificate (STC) for the air-to-ground (ATG) connectivity provider’s airborne hardware on the Cessna Citation X.
To date, Liberty Partners has developed four STC applications for SmartSky, including providing engineering services and installation kits. Specifically, Liberty Partners generates all certification data, fabrication of parts and assemblies, the performance of required tests and inspections, and delivery of a certified kit.
“The Liberty Partners team has been with us every step of the way,” said SmartSky v-p of customer operations Darren Emery. “They have been a pivotal part of our team by helping to support our product FAA certifications, and engineering and certification solutions for installation of the SmartSky system across a range of airframes for our next-generation ATG solution. With their engineering and manufacturing resources and expertise, they are a tremendous asset to our MRO partners and customers as well.”
As part of its overarching effort to spark interest in aviation, Palms Springs, California-based Desert Jet sponsored an interactive STEM educational field trip for elementary and middle school students in the Coachella Valley. The August 25 field trip to the Discovery Cube Orange County science museum involved 100 students who participated in hands-on exhibits and activities surrounding the theme of “Travel through Space,” with a focus on aviation. Activities ranged from a solar system encounter and physics lab to paper airplanes and straw rockets.
“We all know the value of STEM education and the need for a science-based curriculum in our school systems to help engage, inspire, and stimulate the next generation of forward-thinkers,” said Desert Jet CEO Jared Fox. “The Discovery Cube is a wonderful organization that addresses the lack of STEM education in schools by providing a unique and fun hands-on learning experience.”
Some students transition to Desert Mirage High School, where they can participate in its aviation program and have opportunities for Desert Jet shadowing and internship programs.
“Coachella Valley Unified is grateful for our partnership with Desert Jet and the Discovery Cube,” said Coachella Valley USD career technical education district coordinator Marie Perotti. “Field trips are an essential part of student learning, helping them make academic connections to what they are learning in the classroom to the world, as well as inspire their curiosity.”
Charter and managed aircraft provider Luxaviation has added six aircraft to its fleet, five of which will be used for charter, the Luxembourg-based company announced yesterday. The five aircraft include a Bombardier Global 5000; two Cessna Citation CJ4 Gen2s and a CJ2; and a Beechcraft King Air 260. A Bombardier Challenger 604 was added to its managed fleet but will not be available for charter.
“Such rapid expansion of our charter fleet shows how powerfully and confidently we are emerging from the shadow of the pandemic,” said Luxaviation UK CEO and head of European charter sales George Galanopoulos.
The Global 5000 will be based in Dubai and the CJ2 in Baden-Baden, Germany. A first for the company, the new CJ4 Gen2s will be housed in Belgium, with a third remaining to be delivered. The King Air will be based at Lanseria International Airport near Johannesburg, South Africa.
Luxaviation operates more than 260 jets and helicopters.
Photo of the Week
Deep in reflection. No, this isn’t a prototype of a next-generation, flying-wing business jet. Instead, corporate pilot Ken Giuffre used the still-flawless exterior on his 2000 Bombardier Global Express as an on-the-fly mirror to capture this stunning sunset in Barcelona, Spain. Thanks for sharing, Ken!
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