Small businesses, including FBOs and general aviation airports, still struggling to secure emergency operating funds may find relief from $4.5 billion in new lending authority approved by Congress and signed by President Bush. The cash infusion will enable the Small Business Administration to make 19,000 new emergency loans, according to Sen. Kit Bond (R-Mo.).
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
Business aircraft owners who want to move up have the option to engage in a “like-kind exchange” that could save thousands of dollars in capital gains taxes, according to Tonya Fritts, vice president and relationship manager for North Carolina-based Wachovia Exchange Services (Booth No. 3769).
Chicago-based Jet Support Services Inc. (JSSI) and Fleet Capital Leasing have entered into a strategic alliance agreement to bundle JSSI’s engine, airframe or tip-to-tail hourly cost maintenance program with Fleet Capital aircraft financing.
On May 6, very light jet air-taxi operator DayJet put its growth plans on hold after failing to obtain another $50 million in funding to progress to the next stage. As a result, the per-seat, on-demand air taxi laid off 100 of its roughly 260 employees and seeks to sell or lease 16 of its 28 Eclipse 500s.
Noticing that aircraft finance companies were more prominent here this year, EBACE Convention News did a quick walkabout to see when they first had booths at the show and what their impressions were.
Following an earlier initiative in the luxury-yacht market, international banking and insurance financial-services provider Fortis (Booth No. 1175) has formed Fortis Executive Aircraft Group. Capitalizing on the experience of Swiss lessor Dreieck Industrie Leasing, which it acquired two years ago, the group has established a “competence center” in Lausanne, Switzerland, with representatives in London and the Isle of Man.
Business aviation financiers exhibiting here at EBACE’08 have arrived in Geneva largely uncertain about the full implications of the ongoing squeeze on the global credit market and the availability of funds to pay for aircraft purchases. Last month, EBACE Convention News approached six banks listed as exhibitors, but only two–Citi Private Bank (Booth No. 1441) and Bank of America (Booth No.
Time is ticking, and Fairchild Dornier has only two months to find a strategic investor. In the hands of a court-appointed administrator since filing for insolvency on April 2, the company’s prospects may have grown even bleaker when one of its biggest customers–GE Capital Aviation Services–withdrew an order for fifty 728 regional jets last month.
Armed with the largest single contract in its 52-year history–converting 19 U.S. Army King Air C-12 flight decks from “analog to glass”–Stevens Aviation anticipates “substantial” demand for a similar upgrade among the operators of some 800 to 850 civilian-equivalent King Air 200s in service worldwide.
Regional-aircraft manufacturers face the prospect of increased financial risk in coming years, despite having been able to reduce sales costs since the mid-1990s, according to Moody’s Investor Service. As the economic recession continues, the New York-based credit research agency said such companies might not escape global requirements for more financial assistance to operators.