The 2003 Budget in Brief is, as the title implies, brief, but its complexity still leads the aviation alphabet groups to cherrypick for comment, while news media reveal their opinions through select editing. Few readers study the original text, yielding conclusions that range from focused to false.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
The President’s Budget of the United States has usually been delivered by the Government Printing Office to Congress bound in a sober, solid navy. This year’s, issued February 4, was literally wrapped in the flag. The red, white and blue motif was repeated in the United States Department of Transportation Fiscal Year 2003 Budget in Brief, which tossed in photos of airplanes and ships in flag livery or overflying flag masts.
Long Island-based jet charter and management company ExcelAire has been selected to join Executive Jet Management, Jet Aviation and Jet Direct as a partner by Bank of America’s aircraft financing division. According to the bank, customers seeking aircraft financing will be offered discounted lease terms if they select one of these management providers.
What a difference a year makes.
Matt Eller, an Ames, Iowa real-estate developer, acquired the intellectual property of bankrupt VisionAire on October 2 for $441,000 and, under company name Eviation, plans to certify and produce the single-turbine Vantage very light jet.
Unlike insurance rates, which are decreasing slightly or at least stabilizing, aviation financing rates have apparently bottomed out and were on the rise last month.
However, like home mortgage rates, interest rates for aircraft are still near historic lows. What direction they go next is impossible to predict accurately, but current economic conditions seem to point in a continued upward direction.
GE Capital Aviation Services has amplified threats to withdraw its regional jet financing deals with US Airways if pilots do not accept a revised letter of agreement (LOA 91) to loosen restrictions on RJ placement outside the airline’s wholly owned subsidiaries.
Webster Bank’s Center Capital of Waterbury, Conn., has formed a general aviation finance division headquartered in Dallas. The new division’s target market initially is new and pre-owned helicopters and airplanes, as well as maintenance projects, valued at under $2 million. Charles McGuire, v-p and general manager of the division, told AIN that there are no restrictions with reference to aircraft age or noise stage.
EPG Insurance introduced a out-of-warranty maintenance plan that the company said covers almost all unscheduled repairs on small business jets and turboprops. The coverage plan, called Av-Guard, is restricted to aircraft that sell for $3 million or less. It is effective for 12 months or 500 hours of operation, whichever occurs first.
Representatives from The Royal Bank of Scotland are on hand at NBAA’07 to provide information about the bank’s corporate aircraft financing entity, RBS Asset Finance.
The division writes large, individually structured loans and leases for corporate aircraft ranging in price from $1 million to $250 million with terms lasting between two and 10 years, the company said.