Month: July 2014

Handle In-flight Emergencies the Right Way

First aid kit

Preparation and technology are the keys to handling in-flight medical emergencies, which can happen at any time. The Federal Aviation Administration (FAA) requires all Part 91 flight crew members to be trained in emergency procedures, including handling medical emergencies and the use of first-aid medical equipment. After all, in a real medical emergency, time is the most important factor.

Even though the number of passengers traveling on a charter jet is far fewer than on the typical commercial flight, passengers who experience an in-flight medical emergency are just as frightened, and there are fewer crewmembers to handle the emergency.

Short of putting a physician on board every flight, some technology solutions like the Tempus IC telemedicine device, standard on all NetJet’s Signature Series aircraft, is a pretty close compromise. Remote Diagnostic Technologies, Ltd. (RDT) has designed a telemedicine solution that transmits vital signs and other patient data via the aircraft’s onboard satellite communications capability to physicians on the ground who can direct the crew to handle the emergency.

“This kind of control over a medical emergency is paramount when you may only have minutes to act,” says RDT Chief Executive, Graham Murphy.

MedAire is credited with providing the world’s first global emergency response center for aviators and offers medical kits for business and general aviation crews. Through MedAir services, crewmembers can quickly connect with an emergency room doctor for advice and assistance when a medical situation arises.

Private aviation operators and corporate air departments should also make 100% certain they keep their aircraft crew’s training up to date and offer emergency medical training to help them learn how to operate the onboard medical equipment in an in-flight medical emergency.

Contact L & L International for assistance with your private jet sales or purchase. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1.305.754.3313, or visit us online.

It’s a Buyer’s Market for Older Pre-owned Aircraft

Recent market developments are currently converging to make the conditions for buying older jets favorable. Here are some of the facts that are leading experts to that conclusion:

  • Inventory of young pre-owned jets, i.e., those manufactured after 2000, is down 1.3% from the same time last year (JP Morgan).
  • Only 8.1% of the nearly 11,000 jets manufactured since 2000 are available for sale (Business Jet Traveler).
  • Inventory of older jets, i.e., those manufactured before 2000, is relatively high (Business Jet Traveler).
  • Average asking prices for business jets in all categories are down 7% from the same time last year (AIN Online).
  • The price difference between newer and older jets is significant — a Gulfstream G450 is around $36 million, while a 1996 Gulfstream G-IVSP is roughly $6.5 million (Corporate Jet Investor).

But despite the massive price differential and the years in between the two models, the difference between the jets isn’t as extreme as it sounds: “If you were to park a 1996-delivered G-IVSP alongside a recently delivered G450, many wouldn’t be able to tell the difference between the two,” says IBA’s senior aviation analyst Jonathan McDonald.

In addition to price-related motivators for buying older jets, newer aircraft models are in much more limited supply. When buyers are evaluating the pre-owned jet market, they look at the percentage of the worldwide fleet that’s currently for sale and they investigate availability on a global scale.

While popular newer-than-2000 aircraft models like the Falcon 2000EXy and Challenger are sold at a rate of about one a month, pre-2000 models are currently selling at one per quarter. The continued short supply of late-model jets should spur new aircraft sales, but in a recovering economy are more likely to cause pre-owned jet buyers to take a closer look at older jets that they might not otherwise consider.

This is good news for sellers who are looking to unload an older aircraft and perhaps purchase a newer pre-owned one. Buyers should carefully research the aircraft’s maintenance records and operational history in order to be fully informed about the aircraft’s true condition before making a purchase.

Which Older Large-Cabin Jets Offer a Good Value?

Demand for preowned business jets in the heavyweight class has increased in the past year. Although a much-sought-after used Gulfstream G650 might be out of reach, lower-priced options make ultra-long-range aircraft available to buyers shopping at a lower price point.

In the ultra-long-range jet category, Gulfstream stands out among its competitors. Older models, such as the Gulfstream GV and Gulfstream GIV, are moderately priced options. The advantages of these planes include large cabins that seat 14 to 16 for the GV and 14 for the GIV, fast travel speeds of up to 488 knots for the GV and 476 knots for the GIV, and long-range capability of 6,500 nautical miles for the GV and 4,200 for the GIV.

Gulfstream GIV and GV

There are specific advantages to each model. The GIV comes in at a relatively low price of $4 million to $5.5 million and offers the flexibility to land at smaller airports. As for the GV, at $14 million to $19 million, Aviatrade calls it “the best deal around for a long-range aircraft.” With fuel-efficient engines and reasonable operating costs, the GV is considered an especially good value.

However, there are downsides to buying an older aircraft. The main drawback is age. A savvy shopper must do research to establish an aircraft’s maintenance and operational history. The disadvantages of the GIV include its age, as it was introduced in 1987; its weight, which translates to high fuel requirements; and the likely need for refurbishment. Although refurbishing costs need to be factored into the purchase price, they can also be viewed as a value-add opportunity. Although the GV is not quite as old as the GIV (the GV was introduced in 1997), it might still require refurbishing.

Buy smart

The bottom line is that older, well-maintained Gulfstream models can be a good buy; historically, heavy ultra-long-range jets retain a high value. Before you delve into a purchase, consider factors such as the aircraft’s age, maintenance records, refurbishment history, whether the avionics have been updated, and whether the aircraft has been on an engine program. A reputable private-jet broker can assist you in finding the right preowned aircraft for your requirements — or locate the right buyer for your aircraft, as the case may be.

Contact L & L International if you need assistance in purchasing or selling a private jet.You can reach our sales specialists today at sales@L-Lint.com, call us any time at+1.305.754.3313, or visit us online.

North American Business Jet Travel Shows Modest Gains

The business aviation market has long suffered from mixed messages and good news/bad news trends — and this year is no different. The market seems to be experiencing a moderate growth trend as indicated by recent travel statistics posted by aviation analyst firms (USB Investment Research and Argus), and yet activity in Europe declined year over year. Taking the microscope to the European data shows that intra-Europe flights dipped, but domestic activity was up in Germany, the UK, and Switzerland even while business jet activity in the Ukraine turned sharply negative.

According to aviation services company Argus, business jet flying in North America has climbed 1.9% since last May. Jet flying increased, with light jets pushing to the head of the pack last month (a 4.7% increase). Large-cabin jet activity is also strong, climbing 4.3%, and mid-size jet flying recorded a 2.3% increase. And of course, in the typical good/bad news trend, turboprop flying slipped by 1.6% from a year ago perhaps due, at least in part, to Avantair’s demise.

UBS reported that charter activity — which accounts for one-third of the seasonal cycles in flying — remains a “growth driver” and climbed 13% over last year. Meanwhile, non-charter cycles were roughly the same since last year. Business jet flying is now about 30% above the 2009 slowdown and largely being driven by the utilization of young (i.e., less than five years old) jets, a trend that has seen a 75% surge in activity from the 2009 low.

The FAA says Embraer leads the pack with an increase of 8%, as far as which manufacturer’s business jet is most often flown. Tied at 3% were Bombadier, Cessna, Dassault, and Hawker. Trailing behind was Gulfstream, whose aircraft were used just 1% more than they were early last year.

Ultimately, industry experts agree that a sustained recovery of business jet use is needed to drive the new aircraft cycle. Currently, the market remains in a condition of oversupply and will remain there until a more meaningful recovery occurs.

Pilot Shortage Could Hold Back BizAv Growth

Flight hours rose in Asia, Europe, and the Middle East from March 2013 to March 2014, and business jet flights in the U.S. rose 3.4% in the same timeframe. With business aviation on the rise in many regions, the pilot-in-training pipeline should be swollen with candidates waiting to get in on the action. But that’s not the case; in fact, a pilot shortage could hamper business aviation growth.

According to the U.S. Government Accountability Office (GAO), the U.S. airline industry is facing a shortage of qualified pilots. Since 1980, the number of pilots in the country has decreased by about 25% to 617,000, per the Aircraft Owners and Pilots Association. And if it continues, this drought will affect both the commercial and general aviation sectors.

Possible causes

Many industry insiders are trying to determine the reason for the shortage. The problem is likely the result of many factors:

  • Fewer students are entering and completing pilot training programs.
  • Experienced pilots are retiring as a result of mandatory age-65 retirement.
  • With military cost cuts, there are fewer military pilots — which means fewer ex-military pilots are available for commercial and general aviation positions.
  • The cost of training is high, and entry-level pilot salaries are low.

The National Business Aviation Association (NBAA) considers the pilot talent pipeline one of its top safety focus areas. The reality is that business aviation will be competing with commercial operators to hire qualified pilots from an ever-shrinking pool of available candidates.

Solving the shortage

To solve the shortage problem, current aviation professionals must recruit and mentor new pilots by touting the benefits of private-jet flying: the opportunity to fly into a variety of destinations, including small airports; the additional challenges of flying business jets; and the freedom of more operational control for the crew. In addition, businesses and business aviation trade groups can more aggressively promote and recruit candidates for business aviation — for example, by interacting with student pilots at colleges and training schools.

To help ease the cost burden of pilot training, businesses can financially support pilot-training programs, as well as encourage colleges to offer aviation training and degree programs. Also, businesses, trade organizations (such as the NBAA), educational organizations, and government initiatives can provide scholarships and other financial incentives to attract students into pilot training programs. Finally, regulatory agencies can provide more flexible licensing options for pilots.

It’s in the interest of business aviation industry stakeholders to support the recruitment and training of new pilots. The continuing health and growth of the industry depends on it.

Contact L & L International if you need assistance in purchasing or selling a private jet.You can reach our sales specialists today at sales@L-Lint.com, call us any time at+1.305.754.3313, or visit us online.

Is the Pilot Shortage Really About Pay?

Aviation industry experts are disagreeing over whether there really is a shortage of qualified U.S. commercial pilots. According to the Airline Pilots Association, there are thousands of furloughed or unemployed pilots available to fix the shortage. Many others have gone to foreign carriers that offer higher pay and perks such as housing allowances. You can hardly blame them.

Shortage or no, the entire industry has been affected by a number of things lately — the recession being one. Regional airlines have been hit the hardest, and that’s most likely for one simple reason: As the Wall Street Journal reported, the average starting salary for a first officer on a regional carrier is $22,000, compared to the average of $60,000 for a commercial co-pilot position. When training for a pilot without military experience costs upward of $100,000, the poverty line salary begs the question: “Is it really a shortage of pilots, or just a shortage of pilots willing to work for the low pay offered by regional carriers?”

The solution may be as simple as raising the pay rates (or offering loan payoff incentives) and making the money up by raising ticket prices, say some industry experts. Additionally, the Federal Aviation Administration (FAA), which recently raised the required flying hours from 250 to an unprecedented 1,500, could relax the certificate requirements. The regional carriers would then have access to at least a few more pilots.

All in all, it’s good news for the pilots of private aircraft. While corporate pilots may earn more than charter jet pilots, charter pilots are in the enviable position of earning significantly more than the commercial regional pilots (based on experience, size of jet, etc.) and they often enjoy the opportunity to fly a variety of jets. Industry movers and shakers cannot waste their time in lines, terminals packed with vacationers, and slow security checkpoints, and private charter jet pilots offer them the freedom and flexibility they need to protect their most valuable commodity: time.