The International Monetary Fund’s April 18 warning that Europe’s banks could lose some $2.6 trillion over the next 18 months lent weight to concerns of a continuing aircraft finance drought recently voiced by airline treasurers and finance bosses.
NBAA staff members met with officials at the Italian embassy in Washington last week to explain the negative effect that a recently enacted business aircraft tax could have on commerce between Italy and the U.S. The new tax, which imposes a levy on all civil aircraft that spend more than 48 hours on the ground in Italy, could total more than $393,630 annually for aircraft weighing more than 22,046 pounds, NBAA said.
Aviation insurer Starr Aviation now has an iPhone app that provides easily accessible information to aviation insurance brokers, Starr policyholders and potential policyholders. Functions include locating and contacting the various Starr offices, finding a local aviation insurance agent and consulting an accident checklist. Additionally, Starr Aviation allows both policyholders and their broker to access their aviation policies directly from mobile devices. Policyholders can also report an accident and file a claim within the application.
Hawker Beechcraft yesterday secured more time to solve its debt problems through a restructuring plan, with lenders granting a 90-day forbearance agreement. The move staves off the immediate threat of a filing for Chapter 11 bankruptcy protection–a move that has been widely expected by industry analysts.
The manufacturer, which is owned by Onex and GS Partners (a division of investment banking giant Goldman Sachs), announced it had “reached an agreement with certain lenders that will provide the company with approximately $120 million of additional liquidity.”
California-based private equity firm Levine Leichtman Capital Partners finalized its acquisition of ground-support equipment manufacturer Tronair (Booth P413) earlier this month. The U.S. company makes more than 1,000 products, including towbars, electric tugs, tripod jacks, de-icer carts, lavatory servicing equipment, potable water carts and engine inlet covers for more than 300 business aircraft, military aircraft and airliners. Tronair was founded in 1971 as Danair, a division of the Dana flight department, and first manufactured towbars for Learjets, Falcons and the Gulfstream Is.
“We expect a bounce in 2012, though we believe the [business jet] recovery will start slowly and we forecast delivery growth of 8 percent,” JPMorgan Investment Research said in its latest monthly business jet market report, released today. However, evidence of a recovery on the low end is still “not compelling,” it noted.
Idaho Governor Butch Otter has signed bill H.417, which exempts sales tax on aircraft parts installed on out-of-state aircraft. An emergency clause included in the legislation makes the bill take effect immediately.
The National Air Transportation Association (NATA) is calling on its members to urge their congressional representatives to include language in pending legislation to repeal the “fuel fraud” provision. The provision, part of the 2005 Highway Bill, changed the collection of taxes for non-commercial jet fuel and required them to be deposited into the Highway Trust Fund.
“We sense an eagerness for a pickup in the long-depressed business jet market, particularly at the lower end, but we continue to observe mixed signals,” JPMorgan Investment Research notes in its latest market report. Despite the conflicting signals, the investment research firm still predicts an 8-percent rise in business jet deliveries this year.
NetJets Europe launched the first direct financing product for the fractional industry in Europe, providing new clients with an alternative financing method with rates comparable to those offered by major financial institutions.