GE Capital Aviation Services has amplified threats to withdraw its regional jet financing deals with US Airways if pilots do not accept a revised letter of agreement (LOA 91) to loosen restrictions on RJ placement outside the airline’s wholly owned subsidiaries.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
Webster Bank’s Center Capital of Waterbury, Conn., has formed a general aviation finance division headquartered in Dallas. The new division’s target market initially is new and pre-owned helicopters and airplanes, as well as maintenance projects, valued at under $2 million. Charles McGuire, v-p and general manager of the division, told AIN that there are no restrictions with reference to aircraft age or noise stage.
EPG Insurance introduced a out-of-warranty maintenance plan that the company said covers almost all unscheduled repairs on small business jets and turboprops. The coverage plan, called Av-Guard, is restricted to aircraft that sell for $3 million or less. It is effective for 12 months or 500 hours of operation, whichever occurs first.
Representatives from The Royal Bank of Scotland are on hand at NBAA’07 to provide information about the bank’s corporate aircraft financing entity, RBS Asset Finance.
The division writes large, individually structured loans and leases for corporate aircraft ranging in price from $1 million to $250 million with terms lasting between two and 10 years, the company said.
The process for deciding whether or how to buy a business aircraft is fraught with seemingly incalculable factors and subjective considerations. Over the past five years a small French company called Aero Capital claims to have developed an armory of software power and expertise that can give prospective buyers a higher degree of reassurance that they are making the right move.
Before bailing out last month for the usual summer vacation, the House and Senate took no action on the tax bill that would have extended the bonus depreciation benefits allowance. Extension of the bonus depreciation benefits for certain business aircraft buyers is part of a larger tax package to be decided, and that is being held up by battles over items unrelated to the bonus depreciation.
An International Lease Finance Corporation (ILFC) order for 50 Boeing 787s, plus conversion of two previously unannounced options (booked earlier this year along with a 777-300ER, for which ILFC was the launch customer) has brought total announced orders for the new twin-aisle twinjet to 634 from 45 customers since its launch in April 2004.
The boom in demand for business jets is inevitably pushing prices skyward, and Citi Private Bank is here (Booth No. 858) to help would-be buyers finance their airplanes.
Given the bucks or the ability to borrow them, buying a business jet ought to be a straightforward affair. And if you don’t care about the potential downsides, it may be. But the typical business aircraft transaction involves a multinational cast of players and a plethora of contracts to go with them.
Gestair Private Aviation has announced a $115 million investment over the next four years to further expand its 30-aircraft fleet. The Spanish-based company is also planning a new main- tenance hangar. Also anticipated is FBO network expansion and company acquisitions abroad.