News Updates

Signs of Recovery

There have been numerous news reports on the state of the bizav market today however things do seem to be looking up. Bomardier have reported a significant reduction in business aircraft order cancellations during the second quarter of 2010 with only 12 cancellations in comparison to the 80 cancellations for the same quarter of last year. They had been hopeful that the market recovery would be better by this point however are feeling positive in the improvement of new business. Gulfstream are seeing large cabin orders “about on track” at 18months whilst the order book for mid-cabin Gulfstream are at modest but encouraging levels.

As for pre-owned jets, latest comments from JPMorgan inform us “the inventory of in-production models edged up 11.8 percent in August versus 11.6 percent in July with all categories showing increased inventories. This is believed to be a bump in the road and expect that inventories will continue to decline gradually.” Average asking prices for pre-owned jets increased 1.3 percent in August reaching $11.4 million. There is a fair amount of caution out there with elevated used inventories, attractive used pricing and macro uncertainty continuing to hold down demand. This seems to be affecting the light to mid sized jet market whilst demand for large cabin jets continues at a steady pace.

On flight activity there has been a significant increase since the same quarter of last year showing a 7.7 percent improvement. TraqPak data (from the US) show midsized jet activity soared by 8 percent, light jets ticked over at plus 0.6 percent and large cabin jets fell by 2.4 percent with fractional operators and corporates leading the increase in flying. It seems that those companies that are innovating are keeping the market afloat, for example no frills air taxi service Blink have been leading the way forward with a fresh approach to enable companies to fly private and keep the costs down.

To sum up, we are not out of the water yet, however there is the essence of improvement in most sectors of the market and with fight activity on the up it is only a matter of time before orders start rolling in.

Re-registration & Renewal of Aircraft Registration

The FAA has issued its Final Rule regarding the Re-Registration and Renewal of Aircraft Registration. The Final Rule will be effective on October 1, 2010. All U.S. registered aircraft will need to be re-registered. Failure to comply with the rule will result in the cancellation of the United States registration of the aircraft. Full details can be read on the FAA website, follow this link for details, http://edocket.access.gpo.gov/2010/2010-17572.htm

According to the schedule for re-gistration (see table below) the first ‘batch’ is due by 31 Jan 2011. The owners will be required to give fresh information to the FAA and re-register every three years following this initial re-registration.

Re-registration and registration expiration
Certificate issued (Any year)	Certificate expires	Re-registration required
March	March 31, 2011	Nov. 1, 2010–Jan. 31, 2011
April	June 30, 2011	Feb. 1–April 30, 2011
May	Sept. 30, 2011	May 1– July 31, 2011
June	Dec. 31, 2011	Aug. 1– Oct. 31, 2011
July	March 31, 2012	Nov. 1, 2011–Jan. 31, 2012
August	June 30, 2012	Feb. 1– April 30, 2012
September	Sept. 30, 2012	May 1– July 31, 2012
October	Dec. 31, 2012	Aug. 1– Oct. 31, 2012
November	March 31, 2013	Nov. 1, 2012–Jan. 31, 2013
December	June 30, 2013	Feb. 1– April 30, 2013
January	Sept. 30, 2013	May 1– July 31, 2013
February	Dec. 31, 2013	Aug. 1– Oct. 31, 2013

Please contact us if you require more information on this point.