Tuesday, August 5, 2014

2014 Operations Costs Guide (compiled by Aviation Research Group/U.S.)

BCA's Ops. Costs Guide 2014 shows data into seven areas:

1. Aircraft Categories (six categories there, Cat. 1 -turboprops < 12,500 lbs. and VLJs < 10,000 lbs., Cat. 2 multiengine turboprops of 12,500 lbs or more and LJs of 10,000 to 19,999 lbs, Cat. 3 jets of 20,000 to 29,999 lbs., Cat. 4 jets weighting 30,000 to 40,999 lbs., Cat. 5 are jets 41,000 lb. or more and Cat. 6 are ULRJs with range above 6,000 nm. 2. Mission costs: three missions are computed: 300 nm, 600 nm and 1,000 nm. 3. Variable costs (Per Hour) included fuel expense, maintenance labor expense, parts expense, and miscellaneous. 3. Fixed costs (Yearly): hull insurance, liability insurance. 4. Periodic costs: Mid-life/hot-section inspection, engine overhaul , overhaul interval, paint, interior refurbishment, modernization/modification/upgrade allowance. 5. Personnel costs. 6. Training. 7. Facilities (hangar/office costs/miscellaneous}.










Tuesday, July 15, 2014

Jet Charter VistaJet reported in talks for a sale

VistaJet, a Swiss broker that owns its plans is in talks with bankers over a potential sale of the business which could fetch up to $900 million, according to Reuters.

"Bombardier last year sold FlexJet for $195 million in a deal estimated by analysts to be worth between 8 and 9 times core earnings (EBITDA).

VistaJet has core earnings of around $100 million, one of the sources said, giving a deal value of up to $900 million at those multiples."




Forbes on VistaJet article | Private Jet | Jet Charter | Air Charter | Learjet Charter | Luxury Aviation | Private Jet Partnership | Private Jet Ownership | Executive Jet Charter

Friday, May 9, 2014

LP perspective: "great merger" between hedge fund and private equity managers in the future

On Opalesque TV, Charles Van Vleet, CIO and Assistant Treasurer of Textron, Inc. discusses his best asset allocations, why benchmarking against the HFRI is a mistake in a rising S+P environment, "good HF managers are using a private equity structure".



Saturday, May 3, 2014

Personal jet use of company CEOs up

Bloomberg reported this month that "For the 50 largest S&P 500 companies that reported data, the average co. jet use was $284,682 in 2013 up from $276,014 in 2012. For the 10 largest, the average jumped to $259,643 last year."

Companies are required to report uses of $25,000 or more (Bloomberg).

Bloomberg

Saturday, March 22, 2014

Business Aircraft Finance Primer

Having the flexibility afforded by private air transportation is an important time-management tool for businesses that have operations in harder to reach/widely dispersed geographical locations.

According to the NBAA, an industry lobbying group, the majority of business aircraft seat six passengers and fly an average trip of less than 1000 nautical miles. Very light jets seat 6 to 8, have a max. range of 1178 nautical miles and cost $2 -4 MM. That's where we should see the most demand in terms of outright purchases.

Having the flexibility afforded by private air transportation is an important time-management tool for businesses that have operations in harder to reach/widely dispersed geographical locations.

According to the NBAA, an industry lobbying group, the majority of business aircraft seat six passengers and fly an average trip of less than 1000 nautical miles. Very light jets seat 6 to 8, have a max. range of 1178 nautical miles and cost $2 -4 MM. That's where we should see the most demand in terms of outright purchases.

The business aircraft finance area, part of the larger equipment/asset-based lending (ABL), has gone through some challenges since the 2008-09 recession. It is still possible and feasible to finance aircraft at 250-300 Bps over Libor rates. Since plane makers demand 20-30% down payment leasing may be the more attractive option to buying. The old rule was the aircraft age + loan term be less than 25, now it's likely 15 to 20. The newer the aircraft, the longer the term loan.

Banks Rule: typically, banks seek to get the airplanes back at or before engine midlife.

Business aircraft finance is governed by various federal statues and regulations as well as The Cape Town Convention (2006), which the United States has ratified, and which applies to, among other things, secured loans, leases, contracts of sale, and certain other interests and “associated rights.”

Each financing customer will register with the International Registry to become a “transacting user entity.” Each financing customer must designate an “administrator.” Lastly, creditors will require their customers to designate a “professional user".Source: CTC


Leasing may be the most efficient way of using an aircraft - if you lease, you don't worry about market depreciation. When the lease is over you still would have paid less since the lessor wrote off the airplane on an accelerated basis (an aircraft can be written off to a zero tax basis).

Leases are of three types:

  • Capital
  • Operational
  • Synthetic: a SPE (Special Purpose Entity) buys the aircraft and leases it back to the operator.




Friday, February 21, 2014

Business Jets Market Data -Inventories down, Sales ticking up

At the International Corporate Jet & Helicopter Finance Conference 2014 earlier this month in London, UK, data presented shows a fall in inventories in practically all segments. "The number of business jet sales also increased by 0.6 per cent and the average asking prices increased by 10.7 per cent in 2013 according to JETNET IQ.(link)

Also at CorporateJetInvestor,
A short guide to corporate aircraft registration

Gulfstream G650 deliveries to-date

Arguru (EDX's 5un5hine remix) by deadmau5 on Grooveshark

Monday, February 10, 2014

Pre-flight planning app for the Ipad

AC-U-KWIK Ipad App

FBO /handler and ground services
Fuel service providers
Extensive clearance data
Airport Diagrams
Selective maintenance and catering services
Weather forecasts and updates
No. America approach and departure diagrams
Geo-referenced mapping
Distance calculator

Click for Aircraft Bluebook Marketline Q4 report

BC&A PilotReport: Learjet 75