The latest business jet market index from UBS Investment Research fell a further 8 percent, to 37, the second consecutive decrease and below the threshold of 50–the median above which a growing market is indicated and below which deterioration is seen. This follows a stable first half, in which the index held at 50–meaning stabilized conditions–for three consecutive surveys.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
Richard Santulli announced today the launch of a new business jet and helicopter leasing company, Milestone Aviation Group, headquartered in Dublin, Ireland. Santulli in the mid-1980s founded fractional share company NetJets, which was sold in 1998 to Warren Buffett’s Berkshire Hathaway. Santulli left that company last year. He is now chairman of Milestone.
Securus Escrow has been established as a new specialist escrow service aimed at bringing greater piece of mind and transparency to aircraft transactions. The London-based company is supported by aviation law firm Gates & Partners and can provide separate escrow accounts for clients with a leading UK bank.
Barely two years ago prospective business aircraft buyers in Europe were among the most sought-after clients for a banking industry attracted both to the high rates of growth in this market sector and to the exceptional strength of asset values, driven largely by soaring demand and long delivery backlogs.
For the business aviation industry, the past year has been a trying one, to say
the least. Aircraft sales and usage declined steeply as the economic downturn tightened its grip, forcing operators to cope with the new financial realities, and in some cases with disparaging views of the industry.
Global Aerospace has announced its online insurance certificate processing site, www.eCert.global-aero.com. By early 2010, brokers and customers of the Short Hills, N.J.-based company (Booth No. 1845) will be able to issue and print insurance certificates anywhere in the world.
Capital Aviation (Booth No. 4442) of Bethany, Okla., has gained a supplemental type certificate (STC) for an upgrade of the Challenger 600 series that includes a Universal Avionics Waas-capable flight management system, EFI-890R display upgrade and terrain awareness and warning system (TAWS). The initial upgrade
Bank of America and Avjet Aviation Services yesterday announced a strategic alliance whereby business jet buyers will receive preferred terms if they finance their airplane through Bank of America and enter into a management agreement with Avjet.
The results of a major bank merger are on display at the NBAA Convention. The aircraft-financing divisions of San Francisco-based Wells Fargo and Charlotte, N.C.-based Wachovia, which was acquired by Wells Fargo on December 31, are showcasing their offerings together in the exhibit hall.
Cessna Finance has introduced new lower-rate financing for Cessna piston singles and Caravan turboprops. The program, which applies only to 2009 purchases, covers the Cessna 172, 182 and 206 high-wing pistons; the Corvalis and Corvalis TT high-performance low-wing pistons; and the 208/208B Caravan/ Grand Caravan turboprops.