Fractional-share operator Avantair released its fiscal fourth-quarter financial results yesterday, which included growing revenues, declining operating losses and an EBITDA profit. Avantair operates a fleet of 52 Piaggio Avanti twin turboprops. The company added one more Avanti to the fleet during the fiscal quarter that ended June 30 and sold one core aircraft.
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Clearwater, Fla.-based fractional provider Avantair reported another quarter of positive EBITA profits in a difficult economic environment, clearly putting the Piaggio Avanti fleet operator on the path to health after years of losses. In its fiscal third quarter that ended March 31, the company saw year-over-year revenues climb 15.7 percent to $34.7 million.
According to Cessna Aircraft, enhancements made to business aircraft this year might qualify for the new bonus depreciation tucked into the recently passed federal stimulus legislation, depending on the tax accounting treatment.
For business aviation, the latest $787 billion economic stimulus bill–H.R.1, the “American Recovery and Reinvestment Act”–giveth with one hand and taketh away with the other.
Sparta, N.J.-based business aviation consultancy Brian Foley Associates today said it believes the recovery of the business jet market will be sooner than previous estimates, despite “being nowhere near the bottom” of the current market cycle. “It’s hard to think recovery in this environment, but there’s reason to believe that we may come out of this a little sooner than widely expected,” noted company president Brian Foley.
A new federal tax-cut law contains an increase in the bonus depreciation percentage from 30 percent to 50 percent in the first-year allowance for the purchase of capital goods, including new aircraft. The rate will be available for any new aircraft–regardless of value if used under Part 91–acquired after May 5, 2003, and before Jan. 1, 2005. The aircraft must be placed in service before Jan. 1, 2006.
Sentient Jet Holdings, parent of Sentient Flight Group, today revealed that its financial backers have agreed to provide a new supply of funding to help the charter, aircraft management and jet card firm continue growing and address a cash-flow problem that has resulted in delayed payments to vendors. Sentient also revealed that Gregory Campbell, Sentient’s chairman of the board of managers, is assuming the role of CEO.
Under a provision of President Bush’s economic stimulus package, purchasers of new aircraft can take a first-year depreciation deduction of 30 percent for the taxable year in which it is placed in service. H.R.3090, “The Job Creation and Worker Assistance Bill of 2002,” included a 30-percent bonus depreciation provision on the value of certain capital assets for 36 months.
Many business gurus believe knowledge is power, but the ability to transform that wisdom into action is the real measure of success. With just that goal in mind, 17 general aviation business leaders–CEOs, presidents, CFOs and operations managers–gathered at Northwestern University’s Transportation Center recently for the Strategic Management for Aviation Service Firms conference.
The acquisition costs of the three diagnostic systems assessed above vary markedly, but what is the annual cost of ownership to operators? To calculate this, AIN assumed a three-year amortization of the purchase price for the VitalLink and Tempus systems (EMS-Link is leased).