Wichita-based PIM Aviation Insurance, an insurance broker serving the business and commercial aviation market since 1982, recently added life insurance for pilots to its portfolio. Pilots interested in obtaining a free quote can stop by Booth No. 5111. PIM partnered with several insurance companies willing to provide competitively priced life insurance for pilots when they are operating aircraft, the company said.
While most companies here at NBAA’08 are showcasing airplanes and aircraft parts, Jet Support Services–JSSI (Booth No. 2229)–is displaying a different form of transportation: a 2009 Saturn Sky convertible, the grand prize for the lucky winner of the company’s “Sky’s the Limit” sweepstakes. The randomly selected winner will be announced this afternoon at 3 p.m. at the company’s booth.
Get ready for a bumpy ride. The sputtering global economy is sending the pre-owned aircraft market into a steeper dive and is likely to slow new aircraft sales and new aircraft development programs, according to leading industry analysts and observers. Prices for pre-owned business aircraft have been trending down for the last five quarters and the number of new jet buyers looking to unload their delivery positions is increasing.
According to UBS Investment Research’s business jet update issued on Friday, U.S. and international bizjet flight activity was “sharply lower” in August. However, about 86 percent of the flights UBS tracked were domestic flights within the U.S., meaning the international sampling is somewhat under-represented.
It’s true, the price of jet-A has risen steeper than a max-power climb gradient. But the cost of many other business aviation staples has remained relatively stable, and in some cases nosed over in the past five years. Even fuel prices have come down somewhat in recent weeks. These are among the findings of a comparative survey of business aviation costs and operational data compiled by NBAA Convention News.
In UBS Investment Research’s business jet update released on Tuesday, industry analyst David Strauss noted that U.S. business jet flight activity last month declined 11 percent from the same month last year.
Piper announced on July 21 that American Capital Strategies, a minority (about 2 percent) shareholder in the company since 1998, has acquired 94 percent of the Vero Beach, Fla.-based manufacturer’s voting equity. The announcement followed word on July 15 that ACS had secured Piper’s bank debt for approximately $75 million.
If you’re the kind of pilot who relishes the moment when you flee the FBO in the crew car for a round of golf or a night on the town, there is a phalanx of insurers and associations that are out to change your lifestyle. The National Air Transportation Association (NATA), NBAA and the Flight Safety Foundation are leading the charge, staunchly backed by insurance companies such as U.S. Aviation Underwriters.
To better understand insurance it helps to understand what it really is. The historical foundation of insurance is that disaster can strike anyone, at any time. The concept of insurance is the good fortune of many helping provide for the bad fortune of a few.
The business aviation downturn will last at least another year or two but there is still plenty of room for good deal-making, according to financial advisors First Equity. Director of investment banking Brett Pogany told NBAA Convention News that new aircraft sales are being stifled by “negative factors” such as supply pressure from a strong pre-owned market.