Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

The Gulfstream G550 and G650, as well as the Boeing Business Jet BBJ1, are ensnared in 25-percent aircraft import tariffs imposed today by China as a result of an escalating tit-for-tat trade war with the U.S. It’s unclear if these tariffs are an increase of, or are in addition to, China’s existing 22-percent import tariff on business aircraft.

 


Aircraft with “unladen weights” (i.e. basic empty weights) between 15,000 kg/33,069 pounds and 45,000 kg/99,208 pounds are included in China’s latest tariff list that covers $50 billion worth of imports. Basic empty weights for the Gulfstream G550 and G650 are approximately 21,546 kg/47,500 pounds and 24,131 kg/53,200 pounds, respectively. The BBJ1 is near the top of the tariff range, with a BEW of 44,334 kg/97,740 pounds. No other FAA-certified, U.S.-manufactured business aircraft appear to fall within this range.

 


Citi defense and aerospace researcher Jonathan Raviv expects these tariffs to have only a limited effect on Gulfstream, as the bulk of its sales are in North America and Europe. “The bizjet rebound has never been prefaced in China, nor should it; there are other structural impediments, and the Chinese bizjet market has disappointed for years,” he said. “China has been a modest tailwind for Gulfstream lately. This tariff talk could simply further push back the China opportunity.”

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

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