Tomorrow we are running a Town Hall Meeting looking at aircraft values to sign-up please click here.
CORPORATE JET INVESTOR ALSO WANTS PEOPLE TO STAY CURRENT WITH ONLINE COURSE
In a blatant promotion, we also wanted to remind you about our online Aircraft Transaction Masterclass!
CIRRUS AIRCRAFT WANTS OWNERS TO STAY CURRENT WITH ONLINE COURSES
The company says:
“If your flying adventures have been put on hold, there are still ways to connect with The Cirrus Life™ and keep your skills sharp from the comfort of your own home.
Over the coming weeks, our team is sharing a series of videos on our Facebook page designed to enhance your flight training and keep our passionate community of pilots, owners and operators connected.
In this first video, our flight training team covers a wide-range of tools and tips so you can stay current and ready to go when it’s time to fly.”
EBAA WELCOMES EUROCONTROL DECISION TO ALLOW OPERATORS TO DEFER ATC CHARGES
European Business Aviation Association (EBAA) warmly welcomed the financial package agreed by Eurocontrol and European Member States enabling operators to defer the payment of air traffic control charges.
The Eurocontrol Member States have agreed a financial package enabling operators to defer the payment of up to €1.1 billion of air traffic control fees due for payment to Europe’s air traffic management industry in the coming months.
The announcement comes as the 374,000 people who work in the European Business Aviation sector are facing a crisis of unprecedented magnitude and uncertain futures. In the last week of March, Eurocontrol observed a decrease of 72% in Business Aviation traffic, and estimated revenue losses for the thousands of SMEs that make up the sector range from 50-90%.
Commenting on the announcement, EBAA Secretary-General Athar Husain Khan said:
“We thank Eurocontrol and the national governments for this measure which will ease the immediate burden on operators and help the Business Aviation sector continue to play its vital role in the fight against COVID-19”.
Many operators specialised in medical and emergency flights are currently providing essential services to communities fighting the pandemic, including for the transport of health workers. But all other medical emergencies have not stopped, and are being handled by Business Aviation operators despite numerous operational challenges and restrictions.
Along with medical and emergency flights, Business Aviation also provides cargo flights, ensuring the transport and delivery of critical medical supplies in Europe and around the world. Business Aviation is also supporting European and national governments’ efforts in reuniting families through repatriation flights.
In an open letter last week, the European Business Aviation community urged European policy-makers and regulators to protect the continuity and survival of the Business Aviation sector in the face of the COVID-19 pandemic. EBAA will continue to work in close partnership with policy-makers and regulators across Europe to overcome the crisis, maintain the essential functioning of the sector in the immediate future, and ensure its prompt recovery once the outbreak is under control.
EBAA members who have questions on the package should contact Vanessa Rullier-Francaud (vrullier@ebaa.org).
ALI AHMED ALNAQBI, MEBAA CHAIR: “WE WILL BOUNCE BACK STRONGER”
In an open letter, Ali Ahmed Alnaqbi, founding & fxecutive Chairman, MEBAA, is asking for anyone with urgent issues to contact the association.
XO TRANSPORTING MEDICAL EQUIPMENT ON ALL FLIGHTS TO NEW YORK
Release:
XO, the go-to on-demand private flight booking platform, has announced that all inbound flights to New York will be used to transport medical equipment for hospitals in New York City, who are on the front lines of fighting COVID-19.
Ron Silverman, Chief Commercial Officer, XO said:
“Our team at XO is continuously working to support our community at large during this difficult time. Knowing that New York City is the most impacted city in our country, our goal is to assist hospitals and their medical partners, to transport needed supplies in a timely manner, from cities across the country.”
XO will provide an updated flight schedule daily, highlighting direct flights to the tri-state area. The company plans to expand this program to other cities as needs continue to rise.
To inquire about upcoming flights to transport medical supplies, XO is urging hospitals and medical partners to get in contact with XO directly, by visiting: https://flyxo.com/support-hospitals/ or calling 1-888-803-5996.
WINGX: EUROPEAN TRAFFIC DOWN 77% FOR FIRST FIVE DAYS OF APRIL
The latest data from WINGX shows that business aviation traffic in Europe is down by 77% for the first five days of April 2020 compared with 2019. There were 7000 more flights in the first five days of 2019.
Richard Koe, managing director of WINGX, says that there is a 73% decline if comparing same days.
DAVID MAYER: “AIRCRAFT OWNERS MAY BE ABLE TO REDUCE CASH FLOW DEMANDS”
David Mayer, Partner, Shackelford, Bowen, McKinley & Norton, has written five guidelines for any aircraft owner considering financing or refinancing aircraft.
With the availability of surprisingly low financing rates, aircraft owners may be able to reduce cash flow demands and/or create an extra cash resource during and after the Covid-19 crisis. Owners and others may be able to do so by aircraft refinancing, borrowing and leasing, cashing out aircraft equity or entering into sale leasebacks.
If you have purchased an aircraft for cash and you can wait out the crisis without stress or still prefer to and can purchase an aircraft with cash, read no further – except number four below.
Otherwise, you may find the following five guidelines useful to qualify for and close these transactions during the Covid-19 crisis:
Be thorough; be patient. You can apply for and facilitate a credit review process by providing all lender or lessor (financier) requested information promptly and thoroughly. In this unprecedented environment, financiers still generally assess your financial capability during and beyond the crisis based on typical criteria such as aircraft attributes, cash flow, business prospects, net worth and total debt obligations. However, with current business disruption, you should expect slower credit review and documentation processes.
Ask for payments that match your expected crisis and post-crisis cash flow.
You may need or want several months of no payments, interest only or other lower payments during the crisis followed by increasing payments or other amortization changes thereafter. Financiers can customize your financing within policy and regulatory parameters.
Realize that a durable relationship with your financier is crucial.
Your transparency and high quality of integrity and character will go a long way toward building a strong and lasting relationship with a financier, especially during the current health emergency. The relationship is likely begin with some uncertainty during crisis period but, if all goes well, last for years after the corona virus ends. Stay in touch with and be responsive to your financier – by voice – not just email.
Structure your transaction to align with the FARs.
Spare yourself additional anxiety of operating illegal charters or other illegal flight department companies (often LLC holding companies). Your violations may cost you significant sums in attorney’s fees as a result of potential FAA scrutiny or action against you. Use loan or lease credit review time and/or any pause in flight operations during the crisis to structure or restructure your agreements to comply with the Federal Aviation Regulations (FARs). Aligning your aircraft ownership, leasing and operations within the FARs is a frequent task for experienced aviation lawyers.
Search broadly for insurance coverage at credit application.
In your financing proposal, specify commercially available liability insurance that you have secured or expect to buy. It is important to add this term so that financiers do not ask for more coverage than you can deliver in an insurance market that is still in turmoil due to, among other difficulties, past underwriting losses and the tragic Kobe Bryant accident.
For more information please contact:
David G. Mayer
Direct Line: (214) 780-1306
dmayer@shackelford.law
TRAVEL RESTRICTIONS MAKE DELIVERING AIRCRAFT DIFFICULT
Shepherd Aero, an aircraft delivery, training, and management company, has highlighted how hard exporting aircraft is at the moment.
Last week the company delivered a Piper Meridian aircraft from the UK’s Bournemouth Airport to Jefferson City Airport, Missouri. The tested its crewmembers both before and after ferry missions for Covid-19.
“Last year, a normal transaction would have a certificate of airworthiness issued a few days after closing, and we would expect to deliver the aircraft within a week afterwards. These are anything but normal times,” says Travis Holland, president, Shepherd Aero. “But, this week, we accomplished exactly this ‘normal’ timeline. It was twice the effort on the inside, but to our clients, we performed as if there was no crisis.”
Holland says his dispatch and maintenance team worked “literally around the clock.”
March 21: Aircraft sale closed
March 28: Certificate of Airworthiness issued by DAR
April 2: Flight crew conducted flight tests
April 3: Leaves Bournemouth Airport, UK
April 5: Aircraft delivered to Jefferson City Airport, US
NBAA WEBINAR ON CATERING DURING COVID-19
NBAA is organising a free live webinar at 1100 EDT. The webinar is moderated by Jo Damato, CAM, VP, Educational Strategy & Workforce Development, NBAA and features: John Detloff, VP, Air Culinaire Worldwide; Paula Kraft, Founding Partner, Davinci Inflight Training Institute; and Shannon Weidekamp, NBAA Flight Committee Chair. You can sign up here.
