Interested in buying your first aircraft but don’t know how much you want to finance? Check out this guide to see how lenders determine your creditworthiness. 

While income is a major part of your financial picture, it’s only one factor in the credit approval process of to. Before you apply for a loan through FLYING Finance, examine your own creditworthiness so you can have a realistic understanding of what type of aircraft you’ll be able to finance. 

Here are some of the biggest components in a lender’s assessment:

Credit score

Traditionally, the FICO credit score is the most ubiquitous way of determining your overall credit value to lenders. Your credit score is not calculated based on income but rather on a comprehensive history of making payments on time. 

There are several ways to check your credit score, including services offered by many credit card companies, banks, and websites like Experian and CreditCheck Total.

For good terms on any large loan, lenders will want to see a credit score of at least 700, but the higher, the better.

If your credit score is less than desirable, some financial institutions including FLYING Finance offer a non-recourse asset backed product. The down payment will be higher and the terms less favorable than a full credit underwriting, but can be a viable option for those who need this solution.

Debt-to-income ratio

Often referred to as just “DTI,” your debt-to-income ratio is the other side to the income statements.

Even high-income earners, for instance, might have multiple mortgages, outstanding credit card debt, or personal loans that cause their monthly debt payments to take up a large portion of their income. DTI accounts for the sum of what you owe in a given month to any creditors but does not typically include normal living expenses such as gas, groceries, or insurance. 

To roughly calculate your own DTI, add up all monthly debt payments and divide that total by your monthly income. In most cases, a DTI below 35 percent is considered ideal. 

Liquidity

In financial terms, liquidity is a measure of how easily and quickly you can meet your financial obligations (make payments).

Liquid investments include cash, CDs, savings, stocks, bonds, options, and other investments that are considered “readily marketable securities.”. 

Illiquid assets include valuable personal property, ranging from jewelry to real estate.. Privately held business interests and other “illiquid” investments like LP investments in private companies increase your net worth, but are not counted in liquidity requirements for loans..

In the case of an aircraft purchase, you typically need to demonstrate that you have enough liquidity to make a down payment and six months of payments on the loan. 

Unsecured debt

Unsecured debt refers to debt without collateral. Secured debt, such as a car loan, is inherently attached to the vehicle, which the bank or lender could potentially seize in the event of defaulted payments in order to recoup some losses. 

Unsecured debt is considered higher risk, as it may be more difficult to recover. As a result, interest rates for unsecured debt are typically less favorable.

While it’s only one small factor in creditworthiness, be aware that a large amount of unsecured debt can impact your rates and ability to secure a new loan. 

Thankfully, FLYING Finance makes it easy for you to apply once you have an idea of what aircraft you want to buy and how much you need to borrow. Get started and finance your aircraft today using the easy online application at flyingfinance.com. 

The post How Do Aviation Lenders Determine Credit Approval? appeared first on FLYING Magazine.

If you had asked me last month, my feelings might have been a bit more mixed. It is true that a P-Baron is the best fit for me and my family as I transition from flying our Cessna Citation CJ1 to an airplane that qualifies for BasicMed. I could not find a version of my old love, a Cessna 340, that fit the BasicMed takeoff weight requirement, so the smaller, sportier Baron was the best choice. A fabulous airplane to be sure, but it ain’t no CJ1, if you know what I mean. It felt like leaving a high-end restaurant for a serviceable mid-level eatery—the food is still good, but the surroundings aren’t quite as sumptuous; not to mention losing the speed, altitude, and reliability of a jet. So, it’s out of Ruth’s Chris and over to Outback Steakhouse.

Thus resigned, a search was launched and advice was sought. Not many P-Barons with modern control yokes (1984 models and later) and good avionics were out there. After I had suffered a few false starts, an alert mechanic told me about an airplane coming to market. The owner had confided to his A&P that he just wasn’t using the airplane enough to warrant continued ownership. He would ask for a reasonable price.

I called the owner, Joe Kolshak, only to discover he was that Joe Kolshak, former heavy-equipment pilot turned executive vice president at not one but two major airlines. Kolshak revealed himself to be my kind of guy—straightforward, reasonable, and responsive. I agreed to his asking price pending a prebuy inspection. A few days later, I found myself getting off an airliner in Atlanta and taking an Uber to Peachtree-Dekalb Airport (KPDK), where Kolshak’s wife, Ann, was waiting to take me to his hangar.

After introductions, we climbed aboard and headed to Lakeland, Florida, with Kolshak at the controls. When I say “climbed” aboard, I mean just that. You enter the flight deck via the right wing. My initial attempts could not be classified as graceful…or even safe.

Once underway, we climbed to 11,000 feet and started to dodge thunderstorms. This was, I must say, even easier than in the CJ1 in the sense that the Garmin G600 and GTN 750 with SiriusXM weather gave a very clear depiction of the buildups. It goes without saying, though, the speed at which you can circumnavigate thunderstorms in a jet surpasses that of a P-Baron. We didn’t suffer a bump, though, and landed gracefully two hours later.

The prebuy went smoothly. My go-to shop in Lakeland (Double M Aviation) found some minor issues, but its owner, Mike Naab, told me, “It’s a very nice airplane!” Kolshak and I agreed on his asking price minus the estimated costs for the airworthiness discrepancies and the annual, which was due. We both signed a contract that was significantly shorter than the one used to sell the CJ1. No lawyers, no brokers, just two guys agreeing to transfer ownership of an almost 40-year-old airplane. Like I said, my kind of guy.

• READ MORE: Moving on from the ‘It’ Airplane

Tucker at Wenk Aviation Insurance, whom I’ve used for more than 40 years, found insurance. It wasn’t cheap, but the market for insurance for 77-year-old pilots, regardless of type ratings, currency, or total hours, is ugly. He recommended Wright Aviation for initial training that was insurance approved. When I queried its website, I got a call from Tye Jones, and we set a date for training with Todd Underwood, who is based close to home in Florida.

When I went to call Jones again, I noticed his phone number read “Colorado Springs.” Funny, I was headed there that day. When we spoke, I asked if he was indeed in KCOS. “Yes,” he said. A pilot for SkyWest Airlines, he’s based in KCOS and works for Wright as well. “I’ll pick you up at the airport and drive you to your hotel,” he offered.

It came to pass. Jones gave up his time during rush hour. This never happened at CAE, Flight Safety, or SimCom. We had a delightful drive, and I came home ready to get started. I memorized gear extension speeds, flap speeds, minimum control speed in the air with one engine inoperative, and turbulent air speed, among others.

On the appointed day, I met Underwood at Lakeland. Naab hooked up a power cart, and we rehearsed the use of fabulous avionics: the Garmin GTN 750 and G600. At 11:27 a.m., I did my first takeoff in a Baron. We headed north and climbed above the customary cumulous that aggregates over the Florida peninsula in summer. After steep turns, stalls (clean and dirty), single-engine demonstrations, and three landings at an uncontrolled field, I was exhausted, but there was more to come. Almost three hours later, I crawled onto the wing and headed for the water fountain. My dismount was risible. Next time, I plan to come off the wing face-first—I’ll leave it at that.

After more training and some weight and balance work in ForeFlight, Underwood cut me loose and left me with one important lesson soldered into my brain. He is a jet jockey, too, so he knows how I had been accustomed to removing my hand from the throttles after the CJ1 reached V1, the so-called decision speed. It is said in the jet world that after V1 you are going flying, pretty much no matter what. He reminded me that I hadn’t flown a piston airplane in 25 years and that single-engine flight just after takeoff is a dangerous thing in a light twin.

“What do you do when you hear a loud bang after liftoff, and the airplane starts to roll to the right?” Underwood asked. Unprepared mentally, I said control the roll with aileron and rudder, identify the dead engine, and feather the propeller on the dead engine. He pointed out that with full power on one side, I might be upside down and dead by the time I managed to perform these simple tasks. “Reduce power on operating engine,” he said. “At least you’ll have a controlled wings level crash…and you might just make it.”

Three days later, my friend, Tom, and I flew home to Sheltair in Tampa. Photos were taken, smiles flashed, and congratulations offered. Still, I kept thinking of Underwood’s advice—and that really high-end restaurant.

This column first appeared in the September 2023/Issue 941 of FLYING’s print edition.

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PlanePrice uses pricing assessments from a combination of private and public sources using thousands of recent and historical aircraft transactions. The platform utilizes artificial intelligence (AI) that considers each aircraft’s unique features to provide a current market estimate for it. PlanePrice is available only on Aircraft For Sale, FLYING’s aircraft marketplace. 

“PlanePrice marks a revolutionary milestone for both buyers and sellers in the aviation industry,” said Ian Hoyt, FLYING’s director of marketplaces. “PlanePrice harnesses state-of-the-art AI techniques and a vast historical aviation data catalog to develop the fair market price for any aircraft.  Every aircraft is different, so PlanePrice utilizes deep contextual information to determine a fair price for each individual aircraft, taking into account its unique characteristics and history.” 

The platform, using a combination of current market trends and pricing curves, provides transparency to prospective buyers, giving them the valuation range of any specific aircraft listed on Aircraft For Sale. Recent transactions with similar characteristics and current aircraft market activity are heavily weighted in PlanePrice’s model, providing unparalleled transparency.  

“For years, consumers have had access to free car and housing price estimate tools on listing marketplaces,” said Hoyt. “Until now, no aircraft marketplace has provided this information for free in the shopping process, creating anxiety for buyers and sellers alike. Much like Zillow’s Zestimate has become the go-to resource for understanding the current market value of homes, or how CarGurus’ auto listing marketplace has empowered buyers to know if a price is fair or not, PlanePrice aspires to do the same thing in the aircraft market.”  

FLYING continues to invest significantly in Aircraft For Sale, creating the most transparent and comprehensive aircraft buying resource in the world. In addition to adding PlanePrice to the marketplace for aircraft valuation transparency, FLYING plans to combine content from the extensive archives across FLYING Media Group’s (FMG) platform.

“FLYING has the largest archive of content, editorial reviews, reports, and intelligence on aircraft of any platform in general aviation, dating all the way back to 1927,” said Craig Fuller, CEO of FMG. “If a consumer is looking at any aircraft in the market, chances are that FLYING or one of our other 20 aviation media brands, including Plane & Pilot, AVweb.com, KITPLANES, Aviation Consumer, or Aviation Safety has profiled that specific make and model. By linking this content to Aircraft For Sale, consumers will have additional information, helping them make informed decisions about their prospective purchase, comparing all the available aircraft in the market.”  

Aircraft For Sale reaches more prospective aircraft buyers than any print or online classified resource in the world. In addition to having one of the largest online aircraft listings, Aircraft For Sale offers a print edition that is mailed to the homes and offices of every single FLYING subscriber and is also available at thousands of FBOs. 

The post <i>FLYING</i> Introduces PlanePrice appeared first on FLYING Magazine.

Many of us, however, do not give resale a whole lot of thought when negotiating the best possible purchase agreement. Often we are so excited by the thought of having our own aircraft and no longer having to share with fellow students or flying club members that we forget the day could come when we want to sell.

• READ MORE: The New Owner: The Power of Networking

When that day arrives, we need to think about how to approach the sale and how to use our personal networks and other resources to attract potential buyers. I mentioned personal networks first because I believe they are the best resources many of us have. While advertising your aircraft on aviation sales websites with good photos and a thoughtful, honest description is a good way to get nationwide attention, there also are advantages to marketing locally.

Over the years, I have looked at dozens of aircraft for sale at my home airport and at others nearby. When I was a student, my instructor often would say, “Let’s walk over to the hangars.There’s an airplane for sale that you should see.”

When I began shopping, I asked him, other pilots and local mechanics a lot of questions about different models they had owned or maintained. They were happy to talk and frequently recommended other people with opinions worth considering. And, of course, many knew of airplanes that were for sale, officially and unofficially, and would tell me which ones they thought were “good ones” and which were “dogs.” Typically, they also had the seller’s phone number handy.

I considered several of these aircraft, and while it took me a long time to find the right one, the local search was illuminating. One day my instructor showed me a Mooney M20 that belonged to another former student. She was moving across the country and wanted to sell. The airplane was beautiful, with newer paint and interior. Sitting in it for 10 minutes, however, confirmed that the seating position would not work for me.

With that visit I was able to remove Mooney’s from my wish list, which seemed efficient. The owner eventually changed her mind, took the airplane out west with her, and still was flying it the last time I checked. The other candidates found buyers fairly quickly.

I think that, deep down, pilots want to believe their first airplane can be their last if they do well in the selection process. If you find a high-performance piston single that is much faster than the trainer you flew previously, with enough useful load to carry your family and baggage and sufficient range to reach your favorite vacation spot, what more could you want?

• READ MORE: Finding Your Ideal Aircraft Without Remorse for Buyer or Seller

I can think of a few things, like more speed and greater range, to reach that new favorite vacation spot you and your family discovered while flying frequently in your new airplane. How about pressurization, so you can fly higher, faster, and make the most of your recently acquired instrument rating.

We bought our Commander, Annie, from a partnership of three pilots, two of whom were switching to Cirrus SR22s. For a few years, Annie had been fast enough—but not anymore. I spoke with one of the sellers last week and asked him how he liked the Cirrus. He said he misses the Commander’s comfort and handling—which is a polite thing to say—but loves the SR22’s speed. “Now those 500 nm trips seem to go by in no time,” he said. Annie still takes a while to go that far.

We found our airplane online but within a 25-mile search area. If we were to sell it, we would focus again on the local market and try to get it done by word of mouth. But we are not selling, though we understand why many do. Temptation is everywhere.

My wife, sons, and I have been traveling together in Annie for less than six months, and already we cannot stop talking about turboprops. Our airplane is a perfect fit for us, but every time we land at a new destination, without fail, there is a gleaming TBM, Piper M600, or other turbine single on the ramp.

Next come the questions like, “How fast will that one go?”

The post Prepare to Sell Your Aircraft By Tapping Local Resources appeared first on FLYING Magazine.

1. No Pre-buy Inspection

Never, ever, ever do this. Not even if it is a “friend’s” airplane. Similar to buying a used car, purchasing a second-hand airplane can mean buying someone else’s problems. A snazzy paint job does not mean it’s a healthy airplane. Having a qualified mechanic get under the cowl of the airplane, in the cockpit, and in the maintenance logbooks is how you tell if an airplane is healthy and worth the money. 

Have the pre-buy inspection performed by an A&P/IA who has not been performing the regular maintenance for that aircraft, as you want a fresh pair of eyes looking at it. As part of the inspection, make sure to verify who the airplane is registered to before you hand over any money. Every now and then, we hear stories about aircraft buyers handing over a significant chunk of change to an aircraft seller only to discover the seller either didn’t hold the title or else they had sold it to three other people already.

2. Not Budgeting for Maintenance

The cost of an airplane is much more than the sale price. Before you buy, create a budget for maintenance. Check the logbooks for recurring airworthiness directives (ADs). Look for modifications to the aircraft that may require more inspections. Note the work performed during the last three annuals—is it extensive?

There are many new aircraft owners who find themselves compelled to sell their airplane either before or shortly after the first annual as they can’t afford to keep it anymore.

3. Buying a Ramp or Hangar Queen

While it might be a good investment to buy a car that has primarily been kept in the garage and rarely driven, the opposite is true for aircraft. Aircraft need to be flown on a regular basis to keep them healthy. Those that sit on the ramp literally start to rot—you may notice black rings around the rivets. Try to find an airplane flown on a regular basis.

4. Leasing Back to a Flight School to Make Payments

This is a double-edged sword. While it can help you cover the cost of payments, it is quite rare that a leaseback will completely cover the cost of aircraft ownership. Aircraft at flight schools take a beating—tires get flattened, seat belts slammed in doors, door locks jammed, etc. 

Before you hand your airplane over to the school, make sure there is a written agreement in place about who pays for these wear-and-tear items. If it is you, those repairs could quickly eat up any proceeds you get from the leaseback.

5. Taking a Pass on Factory Training

If you buy an aircraft that comes with an offer of factory-approved transition training, take advantage of it. Many manufacturers recommend this training, especially if the aircraft is high performance or complex. 

Sometimes the training comes from a type club. For example, the American Bonanza Society offers excellent transition training. You may find that flying a set number of hours with a CFI next to you—around 10 or as many as 25—in that airframe will lower your insurance costs, as well as give you the skill and confidence you need.

The post Top 5 Mistakes First-Time Aircraft Buyers Make appeared first on FLYING Magazine.

News of a new neighbor spread quickly through the hangar rows, and other pilots have been stopping by regularly to say hello and introduce their airplanes. Dick, a few doors down, showed me his 1947 Globe Swift. “You should meet Bob. He has a Stearman next door to you,” he said. Or is Bob the guy with the Stinson Voyager in the same row? In time I will sort this out.

My regular hangout group forms at the larger flying club hangar, where we all learned from the same instructor and took our check rides with the same examiner. The difference was that the rest of them bought their own aircraft years ago. I was the holdout. When I show up now they rush to offer congratulations, handshakes, pats on the back—and lots of advice. They have started sharing old, personal stories I had never heard, despite our years of acquaintance.

In the 26 days that I have owned our 1992 Commander 114B I have felt a stronger sense of belonging within my local airport community. For years I considered myself a full member of that group. Only now do I discover that I was really a mere associate, with a sort of probationary status among the other folks. Now, it appears, I have taken a step up.

It certainly feels that way. Watching as my hangar door slowly opens and the light creeps across Seven Mike Alpha’s red wings and bright polished spinner is quite an experience—something I thought would never happen. Well, apparently my mates at the airport had begun to think the same. “I’m so relieved,” one of them told me after I brought the Commander home.

Speaking of the Commander: It had its own style of welcoming me—with a few tests. In our first hour together one of its two Garmin G5s went dark. “Was that broken already?” my instructor asked. Then he pointed to the original analog oil pressure gauge, its needle pointing to zero. I am sure that, too, was working during the pre-buy test flight. According to the engine monitor, the pressure was fine, but I need the old round dial in order to be airworthy. Is this airplane falling apart now that I own it? To top it all off, the heat did not seem to be working. 

With winter knocking on the door my instructor was not keen on flying around in an unheated airplane, so if I wanted to finish my insurance-mandated hours of instruction I would have to act fast. That meant pulling the cowling and trying to diagnose the problem—one of a few things owners who are not trained mechanics are allowed to do. Maybe an air duct came loose or was blocked somehow. Did a bird build a nest there?

Well, it turned out we had failed to open a second set of vents to allow heat into the cabin. I saw no mention of these extra controls in the manual. Using a hair dryer (one of my favorite tools) to blow through the heat ducts helped confirm they were clear. Anyway, that’s fixed, and having the cowling off gave me a chance to get to know the airplane better—a good thing for owners to do. I’ll consider the procedure an ice breaker.

Next: We have to get the oil pressure gauge fixed.

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But there was work to do. I had to arrange to get the new-to-us 1992 Commander 114B from its longtime home in Lincoln Park, New Jersey (N07) to our hangar at Sussex Airport (KFWN), about 20 nm north.

• READ MORE: The Advantages of a Drawn-Out Transaction

While I might have dreamed of flying it there myself the day of the closing, the weather forecast was better the following day, and it seemed wiser to have my instructor along for the repositioning flight for safety’s sake. Besides, the insurance company insisted on it. Indeed, under my insurance policy I have to log three hours of dual before flying solo in the Commander. I also need a total of 15 hours before carrying passengers.

That is why I drove to New Hampshire to pick up our son from college yesterday instead of bringing him home for the Thanksgiving break in the new airplane. There was no reasonable way to squeeze all of those required hours in during the past few gusty days. I also know I should be thinking more about proficiency than hours. And on that front, I’m not sure I will feel comfortable enough to cut my instructor loose so soon.

Several months have passed since the last time I flew a complex aircraft regularly, and I have to admit I’m rusty. The Commander’s checklist is longer than the Cessna 172’s, and after flying the latter more frequently of late I have become accustomed to its less demanding cockpit. Combine that with the nervous, distracted feeling of going aloft in an airplane I actually own, and suddenly I need to be reminded to raise the landing gear after takeoff.

• Finding Your Ideal Aircraft: Don’t Rush In

My first flight as the Commander’s owner felt surprisingly like my early days as a green student. The most basic tasks and maneuvers proved challenging. Even my radio voice failed me as I announced our long-anticipated departure from Lincoln Park.

“Commander Seven Mike Alpha, departing runway one niner, straight out, Sussex—correction, Lincoln Park,” I babbled, in an octave reminiscent of my seventh-grade self. I typically channel Gregory Peck in Twelve O’Clock High, but it just wasn’t in me that day. The takeoff itself was less than impressive as I eagerly lifted off a bit too soon and had to gain speed in ground effect before climbing out—essentially performing an unnecessary soft-field simulation.

The former owner recorded the maneuver and texted the clip to me later with the comment, “I think you rotated early.” So true.

I eventually collected myself and managed to enjoy the flight to Sussex, including a nice approach and landing, and the triumph of finally stashing the airplane in our hangar that has waited, empty, for months. Best of all, a group of my pilot friends were on hand to celebrate, making me feel like I had crossed a figurative line to become a full member of the airport community. They even passed out cigars. There were tears of joy.

The post Finding Your Ideal Aircraft: Bringing the New Baby Home appeared first on FLYING Magazine.

Like most aircraft shoppers, we are aching to get started on the list of trips we cultivated ever since first considering the purchase. However, in our case the wait has been so educational—and at times verging on priceless—that I would not trade the experience. 

Last week, we cleared one of the final hurdles, the pre-buy inspection. Our mechanic said the machine is in good shape, and there is nothing that would keep him from recommending it, which is about as close to a rave as I have heard from him. This was on a Friday, and we had to fetch the airplane from Blairstown Airport (1N7) in Blairstown, New Jersey, before crews arrived on Monday to repave the runway.

• READ MORE: Finding Your Ideal Aircraft: Focus On the Mission

I accompanied one of the three partners selling the Commander on the mission to bring it home to Lincoln Park (N07) about 30 nm away. Handling logistics in situations like this can be challenging but we got lucky. A friend offered to shuttle us in his 1957 Beechcraft H35 Bonanza.

This was a wonderful turn of events because, having never flown in a V-tail Bonanza, I had long wondered if tales of their speedy performance were true. Pilots have talked for decades about how fast Bonanzas are, and performance charts in operating handbooks appear to confirm this. Still, I looked forward to the opportunity to observe one in the wild. Would it put the Commander to shame and make me wish I had held out for a Bonanza, especially after wanting one for so long?

We met on a clear, sunny Saturday morning—ideal flying conditions. While preflighting the Bonanza, its owner kept talking about how the airplane would make 170 mph on the short hop to Blairstown (his airspeed indicator, like most in aircraft of this vintage, was in miles per hour).

The flight was delightful. Having started life with a carbureted 240 hp Continental O-470 engine, this V-tail had been upgraded to a 260 hp IO-470. Its performance was lively, and we lifted off from Lincoln Park’s 2,767-foot long runway before midfield.

Once we leveled off around 2,000 feet, the Bonanza’s airspeed entered a steady climb that eventually tapered off at 170 mph. Power setting was 24 squared. “There it is,” the owner said with a note of triumph. “She’s fast.” We definitely were cooking along, or at least it felt that way to this Cessna 172 driver. When you fly a slow airplane most of the time, it can be difficult to judge the seemingly minor differences in performance among speedy, high-powered models.

Lucky for me I had a copy of the Commander’s POH (pilot’s operating handbook) in my flight bag and turned to the performance charts. The Commander will do 148 knots, also known as 170 mph, at the same setting, according to the book. However, that is at 4,000 feet, where the Bonanza probably would be faster as well. Besides, the H35 can cruise at 165 knots, or about 190 mph, according to its handbook performance chart, while the Commander runs out of steam in the 150-knot range.

But somewhere in the shopping process, I let go of my speed fixation and concluded that most high-performance, four-seat retractables are “fast enough.” In the time it has taken to (almost) complete the purchase, I actually have grown to believe what I am saying.

The last few weeks, in particular, have been rich with informative discussions with owners, mechanics, and a few revealing flights in competing aircraft. Mostly, though, it was the short trip in the H35 that convinced me I could stop worrying about outright speed and get used to being outrun by Bonanzas and, frankly, numerous other models.

I have to get used to saying: “The Commander is fast enough.” We close tomorrow.

The post Finding Your Ideal Aircraft: Advantages of a Drawn-Out Transaction appeared first on FLYING Magazine.

The technology giant released on Sunday its 31st annual Global Business Aviation Outlook at the 2022 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE), with the good news—it forecasts up to 8,500 new business jet deliveries totaling $274 billion for the period from 2023 to 2032. The report registers a 15 percent increase in deliveries and expenditures when compared to last year’s outlook. The total moves the forecast back to 2019 levels with “fleet addition rates doubling from last year’s reported intentions,” according to the company’s statement.

The global pandemic altered use of private jet travel, and apparently that increased utilization will continue to drive corporations and individuals to order new turbine equipment.

“The business aviation industry is greatly benefiting from a wave of first-time users and buyers due in part to changing habits brought on by the COVID-19 pandemic,” said Heath Patrick, Honeywell Aerospace president, Americas aftermarket. “The business aviation sector is expected to recover to 2019 delivery and expenditure levels by 2023, which is much sooner than previously anticipated. 

“Demand for new business jets is as high as we’ve seen it since 2015, and we expect high levels of demand and expenditures for new aircraft for several more years.”

Behind the Numbers

FLYING spoke with Javier Jimenez-Serrano, strategic planning manager for Honeywell, ahead of the announcement to gain further insight on several key elements from the 2022 report. These include:

• Deliveries of new jets in 2023 are expected to be 17 percent higher than in 2022—already a stronger year than the two years prior.
• Respondents reported projected deliveries an average of 3 percentage points higher in their five-year purchase plans.
• Fleet additions have risen for the second year in a row, double the 2021 rate and averaging 2 percent of the total fleet.
• Growth year-over-year is projected to go up 2 percent annually

We asked Jimenez-Serrano about the timing of the survey—which gathers the data and responses that Honeywell’s team analizes—and whether that timing allowed it to take into account financial headwinds, including the increase in the base rate and projected greater cost of capital now foreseen in 2023.

The changes may have just registered into real actions in the market, he said, but “the trends are not new.” Those operators targeted for the report watch these trends closely and have already incorporated those challenges into their decision-making matrix, according to Jimenez-Serrano.

Any Surprises in the Data? 

Overall, the strong forecast is “very good news,” he said, and pointed to several elements that were unexpected: “To see 15 percent jumps in the 10-year forecast, reaching 8,500 in the next ten years” was one of them. While it’s not Honewell’s highest forecast—numbers match the report in 2015 where the forecast for new jet deliveries hovered around 8,500 as well, and 2018 where that figure stood at 8,200, according to Jimenez-Serrano—“this goes back to a pre-covid and optimistic pre-covid times.”

Also, the analysis confirms the reports from the OEMs, that most of their production lines are sold out through 2024 and beyond.

Another perhaps unanticipated outcome: Most operators expect to keep up the same level of flying. “We’ve seen a surge in demand for flights, and also used aircraft, so the question has been… is this pent-up demand or new users?” he asked. In his estimation, based on their data, it’s likely new users forming much of the increase in demand. 

One more key data point: Roughly 64 percent expect to fly the same amount of hours in 2023 and only 4 percent expect to fly less, with the remainder expecting to fly more.

Sustainability Reports

FLYING also asked what percentage of operators are currently using sustainable aviation fuel (SAF) on a regular basis–and for what percentage of their operations.

Jimenez-Serrano responded that this was a relatively new area of inquiry for the report. “It’s the second year we’ve asked questions related to [sustainability]; the first year, we put it in our report [in 2021] and put in a baseline in order to glean trends. What do we see from the survey? Half of the operators are doing something today to tackle [sustainability targets].” And, that figure is 30 percentage points higher than last year.

What do they say they are doing? They’re taking slower flights—instead of high-speed cruise, they’re flying at a long-range cruise speed, and increasing the number of passengers on each jet.

“When we ask them what the expectations are, in the future, that number [rises to] 60 percent,” those operators who will alter their mission profiles to fly more efficiently.

As for tools they use today, SAF is number one—with the purchase of carbon offsets secondary to that. “They express some frustration in the availability of SAF today,” said Jimenez-Serrano,  “but they express hope.”

However, fuel-efficiency is not a clear driver for purchase decisions—yet. Nor do operators project in their five-year plans the acquisition of any aircraft using alternative powerplants and/or fuels beyond SAF.

“We asked in a hypothetical future—-whether it is electric, hydrogen, [or another] clean form of power,” said Jimenez-Serrano. They responded, “‘not here in the short term.’”

When thinking about a future aircraft, Honeywell asked what parameters would drive the choice. “Most of them mentioned range,” he said. “But then there were mentions of speed and cabin volume, and brand—being able to stay within a brand that they know.”

One other element in purchase decisions holds true, as well. The smaller the aircraft, the more respondents care about direct operating cost. The larger the aircraft, the more that decision depends on speed and range.

Regional Growth

FLYING also asked for details regarding regional differences in what the survey found. “Latin America and APAC have increased the expected share of deliveries,” Jimenez-Serrano said, “And Latin America is curious—there’s a big market in Brazil, [along with Mexico and Argentina].” 

As for the Asia Pacific region, he said, yes, the growth is there, but it’s coming from a very small base. “[The region] is not expected to take over Europe or North America any time soon.”

The post More Strong Growth Forecast for BizAv Sector in 2023 Onward appeared first on FLYING Magazine.

It is also a 30-year-old aircraft, and like anyone else navigating the vast, diverse, and complicated used-airplane market, we have to take time to thoroughly appreciate just what that means.

While this is the newest model we have considered buying—with previous candidates dating as far back as 1966—it is still old enough for some of its original parts to need replacement after breaking or wearing out. Indeed, the toll taken by all of those years has thus far denied us a demo flight, despite the sellers’ efforts to make it happen.

On a sunny Saturday we drove to Blairstown Airport (1N7) in New Jersey, where one of the Commander’s owners was picking it up from the mechanic who had replaced a broken drag brace on the nose gear. He had offered to take us for a local flight before returning to his home base at Lincoln Park (N07). He walked me through a preflight inspection that included details and tips picked up over years of ownership. All seemed well.

As soon as the starter engaged, the Lycoming IO-540 fired. There was no belabored cranking. Soon we were taxiing past a line of gliders waiting for their turns with the towplane. I had been in and out of Blairstown many times in my flying club’s 1976 Commander 114. Later models from the 1990s are said to be better performers because of a number of modifications made to the type during production. I looked forward to seeing and feeling any differences.

The plan was for the owner to handle the takeoff and give me some time at the controls once we were clear of the airport. After holding short while the busy tow plane landed, we took Runway 25 and began our takeoff roll. This Commander immediately felt livelier than the one I was used to flying. It accelerated faster, lifted off sooner and climbed with more authority—at first. But when the pilot called “gear up,” nothing happened. The gear remained down and locked. The three green lights that foster a sense of relief at the end of most flights were now causing frustration.

He flew around the pattern while I checked circuit breakers. He tried again to raise the gear, to no avail. Nothing to do but land and hope the mechanic could sort out the problem on Monday. We headed to the airport restaurant for lunch, disappointed.

The second demo flight attempt was at Lincoln Park. The gear was working fine after the mechanic addressed a sticking squat switch. But the engine would not start. It sounded like it had no spark. Could this be a magneto problem? Mine was a lucky guess, as the mechanic determined both mags were sketchy. New ones are on the way and should be installed this week.

While the sellers worried that we might abandon the deal after these back-to-back failures, my wife and I are sticking with this one. After seeking advice from several flying friends with much more experience we understand that old airplanes often need a steady supply of new parts, especially when they fly a lot. One acquaintance quipped, “Welcome to general aviation.”

The Commander might simply be telling us how things are going to be if we go through with this purchase. Of course, I was hoping that after rapid-fire problems with the nose gear, squat switch and magnetos, we might enjoy trouble-free flying for a while.

We may learn a lot more soon. Our pre-buy inspection is in two weeks.     

The post Finding Your Ideal Aircraft: Roll With the Punches appeared first on FLYING Magazine.