Financial economics

July 16, 2013 - 1:45pm

UBS Investment Research’s latest Business Jet Market Index dropped to 39 from 41 in May. The index measures “total value” in a survey of 131 “U.S. domestic and international broker/dealers, manufacturers, fractional providers, financiers and others,” according to UBS. The majority, 63 percent, are brokers/dealers.

The survey doesn’t assess absolute business conditions but measures changes in respondents’ views. The index is near a four-year low, “and well below the 50 mark that is indicative of sequential improvement.”

June 16, 2013 - 3:30am
David McKay, CEO of insurer USAIG

There has hardly been a better time to be a buyer of aviation insurance, as all signs point to a buyer’s market. Several factors are driving lower rates in this insurance segment, including fewer airline accidents, lower overall insurance claims, the economy, more underwriters entering the market, increased adoption of safety management systems and more sophisticated aircraft. AIN talked to David McKay, president and CEO of insurer USAIG, to get a better sense of this market. USAIG and McKay are here at the Paris Air Show supporting long-time customer Bombardier.

June 4, 2013 - 3:10pm

The Aircraft Owners and Pilots Association (AOPA) launched a new brokerage venture yesterday aimed at matching its members who require aircraft financing with lenders. It will also help facilitate member loans for avionics updates, either through straight loans using the aircraft as collateral when it is fully owned, or through refinancing of the aircraft while it is still being paid off.

April 29, 2013 - 3:55pm

Bad weather, fewer patient transports and a higher percentage of uninsured patients combined to create a surprise loss during the first quarter at Air Methods, the largest air ambulance provider in the U.S. CEO Aaron Todd hinted that the downturn was just temporary.

March 4, 2013 - 9:15am
Insurance premiums for helicopters continue to remain at low levels, even for more riskier operations such as firefighting.

Most of us have a love/hate relationship with insurance; we hate paying the premiums but if something goes wrong, we love having someone else who was willing to take the risk resolve many of the headaches. Across the U.S. aviation industry, there are so many insurance companies willing to shoulder the risks that the premiums remain at low levels even for the riskier helicopter segment.

February 1, 2013 - 8:45pm

In a decision opening the way for Hawker Beechcraft to emerge from Chapter 11 bankruptcy later this month, U.S. Bankruptcy Court today approved the Wichita OEM’s joint plan of reorganization. “Today’s ruling marks the final significant step in the restructuring process,” said Hawker Beechcraft CEO Steve Miller. The company said that, as part of the reorganization, it will be rebranded Beechcraft Corp.

January 31, 2013 - 5:01pm

With Hawker Beechcraft attempting to clear the final hurdle in Chapter 11 proceedings and emerge from bankruptcy, Judge Stuart Bernstein said earlier today that he would approve the joint plan of reorganization for all but one of the subsidiaries currently under Chapter 11 protection. Bernstein reserved judgment regarding the Hawker Beechcraft Corp.

January 28, 2013 - 12:00pm

The Boeing bargaining unit of the Society of Professional Engineering Employees in Aerospace (SPEEA) has set a date of February 4 for sending strike ballots to its members, union director Ray Goforth told AIN last Wednesday. Members of the Bargaining Unit Council (BUC), consisting of all the company’s “relevant” shop stewards, reached the decision on Tuesday night, during a meeting in which the council agreed to support the negotiating team’s rejection of the company’s “best and final offer.”

January 15, 2013 - 4:05pm

JPMorgan North America Equity Research is forecasting a 5-percent rise in business jet deliveries this year, according to the firm’s latest monthly business jet report. It predicts that 627 business jets (excluding very light jets) will be shipped this year, compared with an estimated 596 jet deliveries last year.

January 3, 2013 - 2:37pm

In a filing in bankruptcy court just before Christmas, Hawker Beechcraft asked for court approval to shed two underfunded pension plans covering some 9,500 non-union workers and retirees. The request is part of an agreement with the federal government’s Pension Benefit Guaranty Corp. (PBGC) and the OEM’s machinists’ union. Terms of the agreement require PBGC to assume responsibility for the two terminated pensions, while Hawker Beechcraft will keep the pension plan covering its 8,200 current and former union employees. A hearing to consider the plan is scheduled for January 17.

 
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