Ireland-based aircraft lessor Avolon is speaking out against what it characterizes as irresponsible speculation that the economic life of modern airliners has been significantly reduced by the dismantling (for parts) of a number of relatively young aircraft, such as the Airbus A318. In an October 2 webcast, Avolon CEO Domhnal Slattery and head of strategy Dick Forsberg presented the results of a study drawing on raw fleet data provided by consultancy Ascend, combined with its own 10-year projections.
Financing, Insurance and Taxes
Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.
Jetex Flight Support has introduced a new program that allows qualifying aircraft operators to buy fuel more easily without paying value added tax (VAT). The service is provided through the flight planning and support group’s new subsidiary, Jetex Fueling Services. Initially the program will be available in Austria, the Czech Republic, Finland, France, Germany, Ireland, Poland and Switzerland. Jetex intends to extend it to other countries in the future, according to program manager Ahmed Ghazal.
Engine Lease Finance (ELFC) has become the first CFM International (CFMI) spare-engine lessor to use the manufacturer’s portable maintenance for lessors (PML) program under a memorandum of understanding that could be formally ratified by year’s end.
Brazilian tax, police and aviation authorities joined forces to seize nine business jets last week, and they have targeted 13 more aircraft. According to officials, Brazilians allegedly own and use the jets but registered them overseas to avoid Brazilian state and federal import taxes of nearly 35 percent. Foreign-registered airplanes can remain in Brazil for up to 60 days without paying import duties.
Rep. Thomas Petri (R-Wis.) sent a letter early last week to Dave Camp, chairman of the House Ways and Means Committee, asking for clarification of Congress’s intent on applying the Federal Excise Tax (FET) to managed aircraft.
A legal case that could hold serious ramifications for the aircraft financing and leasing industry met its end with a blow against the lenders when the U.S. Supreme Court refused to hear an appeal.
Aerospace insurance provider Global Aerospace has been selected as the aviation insurance claims manager and advisor for the FAA. Under the agreement, Global Aerospace will provide insurance expertise, assist in claims settlements and advise the FAA on commercial aviation insurance matters with respect to war-risk coverage provided by the agency under authorization from Congress.
With aircraft owners facing continuing headaches over importing aircraft into the European Union, offshore registrations are increasingly being considered as a more flexible option. At the same time, lawyers have been scrambling to develop elegant solutions to avoid at least immediate liability for punitive rates of value added tax through deferral schemes.
A new 3,600-sq-ft customs-clearance facility has been constructed at Hector International Airport in Fargo, North Dakota, on the north general aviation ramp between two of Fargo Jet Center’s main hangars. It is equipped with the latest technology to expedite U.S. Customs clearances and improve the experience for international passengers. Fargo Jet Center is exhibiting here at EBACE (Stand 456).