Austrian-based operator Jetalliance announced here on Tuesday that it is now offering what it claims to be a new kind of business aircraft financing called asset-based leasing. Under the scheme, a firm or individual agrees to make a down payment for part of an aircraft–say, 30 percent. Jetalliance then buys the aircraft from the manufacturer. It will then own the remaining 70 percent.
Much of the unprecedented recent growth in sales of business aircraft has been driven by the international market, where advantageous exchange rates have made dollar-denominated assets unusually affordable.
Back in 2001, NetJets Europe might have considered a shortage of suitably qualified pilots to be a nice problem to face. At the time, the industry’s fractional ownership leader had no more than 80 clients in Europe–five years after having imported the concept from the U.S.
The Aircraft Electronics Association (AEA) convention usually offers a sneak preview of the future of general aviation avionics. This year there were plenty of product introductions, but the real news from AEA 2007 unfolded before the show started.
European Union (EU) Regulation 785/2004, which went into effect April 30 and requires minimum aircraft insurance levels for war risk and third-party liability, has resulted in "severe financial impacts" for operators far greater than expected, according to the International Business Aviation Council (IBAC).
Starting May 1, the Isle of Man–a British Crown Dependency located in the Irish Sea between the UK and Ireland–will have its own aircraft registry, open only to corporate and private aircraft. The UK government recently notified ICAO that it is allowing the Isle of Man to use the previously idle “M” tail number registration that was allocated to the UK in 1919.
A provision in the legislation to reauthorize the nation’s surface transportation programs, known as the Highway Bill, would “drastically alter the way the taxes on jet fuel are collected,” according to the National Air Transportation Association. Under the proposal, jet fuel would be taxed at the same 24.4-cent-per-gallon rate as diesel fuel.
Following a hard look at the recent series of air charter accidents, the National Air Transportation Association has taken steps to assist operators in improving safety. NATA president James Coyne unveiled the association's new “Safety 1st” air charter Safety Management System (SMS) in a town hall meeting yesterday with some 50 aviation businesses at Teterboro Airport.
A federal court in Texas recently ruled that a 1976 King Air C90 that crashed before its resale was finalized was not covered by insurance because the purchase was not yet complete when the accident occurred. According to a report in a recent issue of the Lawyer-Pilots Bar Association Journal, two days after a successful acceptance flight, the buyer wired funds to an escrow account with instructions to release the money to the seller.
NBAA and the National Air Transportation Association are creating a joint working group to address the fuel tax provisions of the Highway Bill that was signed by the President earlier this month. “Of particular concern is that taxes on jet fuel will be assessed at the diesel fuel rate [24.4 cents per gallon instead of the 21.9-cent per-gallon jet fuel rate] and deposited into the Highway Trust Fund,” NBAA said.