April was a banner month for Landmark Aviation, beginning with the Carlyle Group subsidiary announcing it had entered the UK FBO market in a big way by buying the three former RSS Jet Centre locations at London Luton Airport, Manchester Airport and Glasgow Prestwick Airport.
The process of buying a business jet is fraught with potential pitfalls, among them the many ways that owners can fall afoul of legal constraints. The 2014 NBAA Tax Seminar & Conference, held last month in San Francisco, offered a one-day summary of the issues facing aircraft owners, not only summarizing the key problems that can develop but also giving participants a foundation for understanding how best to set up a flight department from a legal standpoint and how to satisfy taxing authorities with the minimum hit.
Next month’s 2014 Farnborough International Airshow (July 14-20) will not be short on novelty, with 26 percent of exhibitors new to the biennial event. With economic conditions generally stronger even in Western markets that have been soft in recent years, and with continued and new military tensions around the world, the business context for this year’s show is arguably on more solid ground than it was for the 2012 event.
Business jet makers continued to build on their delivery momentum from last year, while total industry billings increased by 9 percent year-over-year, according to first-quarter delivery statistics released last month by the General Aviation Manufacturers Association (GAMA).
Following 4-percent growth last year, the global business aviation market saw a 2-percent slowdown in flying during the first quarter versus the same period last year, according to JSSI’s latest business aviation index. The firm’s index tracks the number of hours that business aircraft have flown by region, industry and aircraft type.
NBAA and more than 150 other associations and coalitions sent a letter last week to the U.S. Senate urging swift passage of a bill to restore tax incentives that expired last year, including accelerated depreciation on purchases of long-term capital assets such as business aircraft.
Hawthorne Global Aviation Services recently opened its newest FBO at Chicago Executive Airport. The FBO–the company’s third following new facilities at MacArthur Airport in Islip, N.Y., and Lakefront Airport in New Orleans–is part of an aggressive business plan to open executive FBOs throughout the U.S. in major and medium markets. “We have the next four sites in mind, and they will probably be online this year,” Bill Koch, chairman of the board, told AIN.
“We think a sustained recovery in business jet utilization is necessary to drive improvement in the new aircraft cycle,” UBS Investment Research aerospace analysts said in their latest business jet market update, released yesterday. “Without a recovery in utilization we still see the market as oversupplied.”
Embraer and Boeing signed a memorandum of understanding (MoU) to create a joint biofuels research center at a technological park near Embraer’s headquarters in São José dos Campos, Brazil. Under the partnership, the companies will be “developing and maturing the knowledge and technologies that make it possible to establish a sustainable biofuels chain for aviation.”
Delta Private Jets launched a new aircraft management program designed to help owners cover the cost of purchasing a business jet by providing a guaranteed monthly income stream over a five-year fixed term. Called Ownership Assist, the new program is designed for owners who require only occasional use of their jet and are looking for guaranteed monthly income that covers 80- to 100 percent of their monthly payments, according to Delta Private Jets. Under the program, aircraft owners are allotted 30 flight hours per year over 20 flight days at no cost.