Dassault Aviation reported ?900 million ($1.28 billion) in Falcon sales in the first half, down slightly from the ?1.1 billion ($1.56 billion) recorded in the same period last year, but cancellations of previous business jet orders far exceeded sales. Thus, the value of Dassault’s consolidated orders for the first six months was -?1.13 billion
Financing, Insurance and Taxes
Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.
Sources for financing of corporate aircraft purchases may be harder to find this year than last, but Toennies von Limburg, director of international sales with Bank of America Corporate Aircraft Finance (Booth No. 394), said there is value to be had in what has turned rapidly from a buyers’ to a sellers’ market.
Is the bizliner immune to the current economic and financial crisis, or have slumping demand and order cancellations simply not yet caught up with that segment of the industry? Some among the narrow- and wide-body manufacturers say that executive segment of the industry remains relatively healthy and take a somewhat optimistic stance.
Customers who finance an aircraft through Bank of America can arrange more attractive lease terms if they also hire Gama Aviation for management services. Michael Amalfitano, corporate finance executive for Bank of America, and Scott Ashton, vice president for business development at Gama, announced the alliance at Gama’s booth (No. 1247).
As receivers of bankrupt regional jet manufacturer Fairchild Dornier awaited a takeover bid from a partnership led by Russian conglomerate Basic Element last month, another group of investors that hopes to prove more palatable to aircraft program stakeholders and the German government suddenly surfaced.
If you want to buy a big business jet, there’s no shortage of brokers and management companies that are eager to help you in the areas of mission analysis, acquisition, finance, accounting, legal contracts, insurance, refurbishment, maintenance, crew selection, training and day-to-day operations. But what if you’re interested in owning a smaller aircraft–maybe even flying it yourself?
Echoing a refrain that has been sung around Washington for years, Air Transport Association president and CEO James May reiterated recently that the airlines have been subsidizing general aviation, business aviation and government users of the civil aviation system for years, and he called for a sweeping reform of tax policies.
The International Civil Aviation Organization (ICAO) has ruled out introducing taxes on jet fuel for commercial operators for at least three years. In a hard-fought deal struck at the close of the organization’s assembly on October 8, ICAO delegates agreed that no fuel taxes or charges can take effect before its next triennial assembly in the fall of 2007.
Business aviation pays 102 percent of its share of the costs it imposes on the ATC system, according to a new study by Washington consulting firm HLB Decision Economics.
The study, funded by NBAA, showed that business aviation paid $188 million in federal excise taxes in FY 2001. That figure is $4 million more than the amount the FAA identified as business aviation’s share in FY 2001, the last year for which data is available.
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.