Charter operator Bahrain Executive Air Services Co. (Bexair) is announcing the launch of a new aircraft financing operation here at the show. The firm plans to provide business aircraft handling services at an undisclosed Middle Eastern airport, as well as for new passenger shuttle and cargo operations.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
Mission Oaks National Bank in Temecula, Calif., hopes to become the lender of choice for pilots shopping for general aviation airplanes and, in some cases, helicopters in the western U.S. from New Mexico to Washington, as well as Nevada and Arizona, and occasionally other states. The bank will consider loans on aircraft valued up to $3.5 million. Veteran aviation lender Juan Alonzo has been hired to manage the new aircraft loan department.
The almost three-year-old European Aviation Safety Agency (EASA) wants to keep on a fast growth curve, despite its acknowledged teething problems. The main problem–funding–is being addressed through a major increase in certification fees. Over the next two years, the agency is preparing to extend its responsibilities to cover aircraft operations, flight crew licensing and eventually activities such as airports.
While the debate continues over how best to fund the next-generation air transportation system, the Government Accountability Office (GAO) is of the opinion that “given the diverse nature of the FAA’s activities, a combination of alternative [funding] options may offer the most promise for linking revenues and costs.” In a study released last week, the GAO stated that among the alternatives that the FAA should consider are “user fees.” The GA
Everyone in the industry knows that new and used business aircraft sales, prices and inventories generally follow the overall economy. But do the different classes of aircraft react differently to changes in the economy?
In a report released early last month, the National Air Traffic Controllers Association said policy decisions by the Bush Administration, not inadequate revenues, are causing the declining balance in the Aviation Trust Fund.
By just about anyone’s reckoning the FAA audit process known as the Air Transport Oversight System (ATOS) has turned into a horribly labor-intensive and time-consuming job. Now, as the agency’s flight standards office loses about 250 employees a year to budget cuts, the onus has fallen squarely on the nation’s regional airlines to pay the bill.
With the airlines arguing that they pay for more than 90 percent of the ATC system but don’t account for 90 percent of its use, and with the FAA confirming that budget cuts will hamper its certification work, there wasn’t a lot of good news at the FAA’s industry budget briefing for FY2006 last month in Washington.
The nation’s major airlines have declared war on business aviation and, as the weapon to win that war, they intend to push for ATC user fees to be levied upon business aviation operators. This was the message NBAA president Ed Bolen delivered April 8 at the Arizona Business Aircraft Association (AZBAA) forum in Scottsdale.
Unlike physics, economic forecasting is not an exact science, and significant natural disasters have a way of scattering the tea leaves. Nevertheless, it might be worthwhile to see what two experts are saying.