What a difference a year makes.
Rockwell Collins, known primarily for its avionics products, will enter the simulator market by acquiring NLX Holding from Arlington Capital Partners, a Washington, D.C. private-equity firm. NLX, based in Sterling, Va., builds civil and military simulators and has provided business aircraft simulators to SimuFlite and Pan Am International Flight Academy.
Sentient, a leading provider of business aircraft transportation through membership block charter, was purchased last month from CSFB Private Equity by TH Lee Putnam Ventures, a New York-based private equity firm. Sentient claims more than 1,400 aircraft available from among its approved charter aircraft providers. Participants in its Private Jet Membership purchase TravelCards valued at $100,000, $250,000 and $500,000, respectively.
Adam Aircraft Industries reported the closing of a “significant investment” by GS Capital Partners 2000, a private equity fund managed by the prestigious Goldman Sachs–where Adam CEO Rick Adam was formerly a general partner.
Corporate aviation operators at all levels received good and bad news from insurance representatives at the 26th annual Aviation Insurance Association conference held in Kansas City, Mo., on April 29 and 30.
On September 24, Signature Flight Support began requiring customers at its worldwide chain of 46 FBOs to sign an “indemnification agreement for acts of war and terrorism.” The “hold harmless” agreement was the result of a decision by insurers to cancel Signature’s extended coverage endorsement for war risk liability insurance, effective 8 p.m. that day.
Insurance premiums for professionally flown corporate aircraft have decreased slightly off their peaks of last year, but charter and helicopter operators and FBOs are not seeing the same relief, though their rates have generally stabilized.
Since September 11, a growing number of countries are requiring that aircraft overflying or landing at their respective airports carry war-risk insurance.
The following is typical wording found in most aviation aircraft insurance policies addressing exposures covered under war risks. While wording may differ from one insurer to another, all carry similar overall content and intent. It is always advisable to have a qualified aviation attorney examine the policy to determine whether the coverage meets the requirements of your aircraft.
Goldman Sachs, the Wall Street investment firm, has a thing for business aviation, according to Sanjeev Mehra, the firm’s managing director. Raytheon Aircraft, purchased on March 26 this year, was its most recent acquisition. Investment funds controlled by the Goldman Sachs affiliate Goldman Sachs Capital Partners and Canada’s Onex Partners bought the Wichita OEM for $3.3 billion in debt and equity and renamed it Hawker Beechcraft.