Despite an estimated $535 million overage in aviation insurance claims this year stemming from the recent spate of foreign airline accidents (including two fatal crashes involving Malaysia Airlines Boeing 777s), Corporate Aviation Insurance Group president Matt Drummelsmith doesn’t expect any effect on insurance premiums for U.S.-based aircraft operators.
The Latin America and Caribbean (LAC) region is home to more than 5,000 business aircraft–2,457 jets 2,588 turboprops–according to current data from aviation data services firm JetNet. This represents 14.8 percent of the world’s fixed-wing business turbine fleet, despite the region’s 6.6-percent share of world gross domestic product (GDP).
In the wake of recent airliner losses, carriers are bracing for substantial increases in insurance premiums when the main renewals season starts on November 1. Insurers have already made massive payouts for hull losses following the disappearance of Malaysia Airlines flight MH370 en route to Beijing and the apparent shooting down of MH17 over eastern Ukraine. Other recent losses have included the crash of Air Algerie’s flight AH5017 in southern Mali and TransAsia Airways flight GE222 in Taiwan. Further unsettling the risk environment for air transport have been recent attacks on airports in Pakistan, Israel, Afghanistan and Libya.
Demand for charter flights in Europe looks set to increase steeply over the remainder of the continent’s peak summer vacation season, according to the latest projections from online charter portal Avinode.
Charter hub Returnjet.com is extending free access to aircraft availability data to brokers in a bid to challenge the market dominance of rival portal Avinode. The change, which took effect July 14, will also allow operators who have registered their fleets with the site to have complimentary access to the real-time data.
Operators will continue to pay a 3-percent “introduction fee” for any flight conducted as a result of customer contact from the site. Returnjet plans to introduce reduced introduction fees for flights booked by brokers.
A slowdown in reforms in India over the past five years–and a virtual pause in procurement–may be about to change following renewed optimism and confidence as the new government shows, for the moment at least, that it is serious. As hectic activity takes place in the ministries of commerce, finance and defense, increasing manufacturing, exports and foreign direct investment (FDI) are focus areas of the new regime.
Foreign companies can now own 49 percent of Indian defense companies, following a change announced as part of the country’s budget statement on July 10. The budget was presented by Finance and Defense Minister Arun Jaitley, a member of the newly elected government. It includes an allocation of $38.17 billion for defense, a gain of 12.44 percent. Some $15.76 billion of this (up from $13.15 billion last year) is capital expenditure, used primarily for procurement.
NBAA president and CEO Ed Bolen praised the leaders of the House General Aviation Caucus on Tuesday for their continued support of “one of America’s greatest industries,” and repeated opposition to proposals that would be harmful to general aviation. “General aviation provides more than 1.2 million jobs–good manufacturing and service jobs–and also supports tens of thousands of American businesses,” he explained to a capacity crowd in a Capitol Hill hearing room.
The National Aircraft Resale Association (NARA) announced that two new products and services members, Embry-Riddle Aeronautical University and LL Johns & Associates, have joined the association. All NARA members must follow a code of ethics and broker/dealer members must pass a rigorous application process, established last year, to become an exclusive NARA-certified aircraft broker/dealer. “NARA products and services members’ commitment to the code of ethics guarantees value and instills the highest degree of confidence for aircraft buyers and operators,” it said.
Projected demand for private charter flights suggests significant volatility over the early part of the Northern Hemisphere summer season, according to the latest data from online charter portal Avinode. The company’s forward-looking demand index for 30 days beginning June 2 showed marked decreases in most categories analyzed for the North American and European markets, with some notable exceptions.
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