Insurance is a necessity that operators hope never to put to use, but with operating costs, especially for fuel, running so high, any opportunity to save money is always welcome. Insurance underwriter USAIG is helping lower costs with its new Performance Vector Plus program, which can save flight departments as much as 15 percent on insurance premiums.
Zenith Aviation, a distributor of Dornier 328 parts and spares, is seeking multiple aircraft parts and spares consignment opportunities. The company recently invested more than $3 million in additional climate-controlled warehouse space and an automated inventory storage and retrieval system. The 44,000-sq-ft warehouse can hold up to 500,000 individual line items. According to the company, the consignor retains title to the parts until they leave the Zenith warehouse.
The Independent Fixed Base Operators Association (Ifboa) announced last month that it has now surpassed the 500-member-company mark. Founded in 2006, the group includes FBO operators, flight schools, repair stations and aircraft management and sales firms among its ranks.
Airlines may still be struggling with rising costs associated with factors such as fuel and taxes, but they are winners when it comes to insurance premiums. New data released by insurance broker Willis shows that premiums have continued to fall this year. “The balance of power in airline insurance purchasing remains firmly in favor of the buyers,” concludes the London-based group in the second-quarter edition of its Airline Insight report released on July 15.
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.
There has hardly been a better time to be a buyer of business aircraft insurance, according to aviation insurance brokers, underwriters and industry consultants that AIN canvassed for this article. All signs definitely point to a buyer’s market, with some customers almost able to name their own price. While rates are already low, they could descend even further over the next 12 months if the industry stays on its current course.
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.
Duncan Aviation’s parts consignment program sold $1.07 million in consignment parts and rotables last year and saw the number of consigners increase by nearly 30 percent. Customer parts are stored in Duncan’s warehouse until sold. During the process, the consigner retains title to the inventory. Duncan Aviation also protects the consignor in case the purchaser defaults on payment and maintains insurance against casualty and subsequent loss.
The Middle East Business Aviation Association (MEBAA) general assembly elected two new board members yesterday and held an insurance workshop for its MEBAA aviation insurance scheme (MAIS).
Wajdi Al Idrissi, managing director of Saudia Private Aviation (SPA), and Richard Gaona, president and CEO of Comlux Management, will join other industry leaders to promote business aviation in the region and beyond as members of MEBAA’s board.
Aviation insurer Chartis has added crisis response coverage to aviation policies for corporate customers, including airports and charter management companies. The new product provides customers access to immediate funds for crisis management costs resulting from a catastrophic event. With the coverage, policyholders can receive up to $250,000 of additional policy limits for costs associated with hiring a crisis management firm to help manage reputation risk, as well as for other crisis-related expenses, such as temporary living, travel, counseling, medical and funeral costs.