Category Archives: aircraft finance

Time to buy an airplane?

Posted on by

Buy an airplane?

If you are thinking you might buy an airplane, this may be a good time to get serious. Besides the fact that spring always seems to bring out more buyers it also seems like the market is “right” for buying an airplane. By “right” it appears that in today’s economy you can buy some airplane models and probably be able maintain their value or even make a few bucks over the next couple of years. I’m not saying buy new, but good used  popular models.

Anyway, I have been involved in the aviation market for a number of years. I can remember when buying an aircraft (especially a Cessna 172 or Cherokee Archer etc.) was almost a guarantee to make money. Used airplane prices were always going up.  Of course, there were years of high gas prices or high interest rates which had major impact on prices. And then the crash in the in the 2006 – 2007 area where prices went lower than 1995…

But, recently it looks good again.  I was researching aircraft prices for a recent Cessna Owners and Piper Owners Magazines article where I was discussing how to value your aircraft.  Personally, I like to use VREF as a pricing guide and included a recent graph in my story of the light single engine market prices.  See the graph below.

Take a look at the 3rd quarter of 2016. The single engine market started an uphill run and doesn’t look like it will slow down. It looks like if the economy keeps up the momentum, maybe we can get back to the peak prices we had back in 2000 – 2001.

buy an airplane

Of course don’t forget to get an insurance quote from SkySmith for the airplane you are thinking about buying! Click here to get a quote!

Textron Aviation announces enhanced flight deck features!

Posted on by
 
News Release
 

Media Contact
Jessica Solis
+1.316.517.5124
jsolis@txtav.com
txtav.com

Textron Aviation announces enhanced flight deck features coming to Cessna and Beechcraft piston lineup

WICHITA, Kan. (Jan. 11, 2018) – Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, today announced enhanced flight deck capabilities for new production Cessna and Beechcraft piston platforms. The features include new standard and optional equipment as part of Garmin’s G1000 NXi next-generation integrated flight deck, which provides pilots with enhanced control and connectivity in the cockpit.

“Today, new and experienced pilots alike continue to rely on our renowned Cessna and Beechcraft pistons to experience the joy of flight firsthand,” said Christopher Crow, vice president, Piston Sales. “We’re thrilled to once again elevate the capabilities of these aircraft and connect the next generation of aviators with the latest technology and equipment needed to fly with added confidence, ease and control.”

New equipment includes the latest Garmin GMA 1360 audio panel with enhanced audio capabilities and Bluetooth audio link to pair portable electronic devices to the flight deck.

Other equipment includes the GFC 700 Autopilot with Enhanced Automatic Flight Control System (E-AFCS), now standard on 2019 production Cessna Skylane, Cessna Turbo Stationair HD, Beechcraft Bonanza G36 and Beechcraft Baron G58 pistons, and optional on the Cessna Skyhawk. With E-AFCS, pilots benefit from a lineup of automated features designed to help maintain an optimal flight envelope, while enhancing situational awareness. The added features include Electronic Stability and Protection (ESP) with auto-level functionality, Underspeed Protection (USP) and Coupled Go-Around.

Factory-new Baron G58 aircraft are also equipped with Garmin’s new GWX 75 Doppler weather radar, which provides pilots with onboard weather information, and allows operators to customize the weather picture on each individual display in the cockpit. When used with optional turbulence detection and ground suppression technology, the radar enables Baron pilots to more easily navigate around challenging weather.

Other optional features for all Cessna and Beechcraft pistons include Garmin GSR 56 Iridium satellite receiver, which provides near worldwide access to downlink weather services and allows pilots to make voice calls and send text messages. A subscription service is available through Garmin and can be customized based on need.

###

About Textron Aviation Inc.

Textron Aviation Inc. is the leading general aviation authority and home to the Beechcraft, Cessna and Hawker brands, which account for more than half of all general aviation aircraft flying. The Textron Aviation brands represent unrivaled innovation, performance and leadership in the industry, and offer an unmatched value proposition rooted in the total ownership experience. Leveraging unparalleled speed-to-market, Textron Aviation provides the most versatile and comprehensive business and general aviation product portfolio in the world through five principal lines of business: business jets, general aviation and special mission turboprop aircraft, high performance piston aircraft, military trainer and defense aircraft and a complete global customer service organization. Textron Aviation has delivered more than 250,000 aircraft in over 143 countries. Its broad range of products include such best-selling aircraft as Citation business jets, King Air and Caravan turboprops and T-6 military trainer aircraft, all of which are backed by the industry’s most capable global service network. For more information, visit www.txtav.com

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Textron Off Road, Arctic Cat, Textron Systems, and TRU Simulation + Training. For more information, visit: www.textron.com

Certain statements in this press release may project revenues or describe strategies, goals, outlook or other non-historical matters; these forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update them. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements.

Aircraft financing

Posted on by
Thinking of buying an aircraft?  

Dream planes don’t come cheap.  If you are the type of person that is buying an aircraft for personal use (which is probably 95% of the buyers) the money is probably coming out of the discretionary income account.  That’s the extra stuff you have burning a hole in your pocket every month.  The money we spend on the things we really don’t need, but want.  Don’t get all up tight and try to tell everyone how important an aircraft purchase is, how you need it!  We’ve all been there and done that!  It may be necessary, but it’s not always rational!  Buying an aircraft is a very emotional decision.  Since an aircraft is extremely hard (if not impossible) to rationalize, you need to think of the money that you spend like fun money or maybe a stock market account.  And just think most aircraft have increased in value better than blue chips stocks.

If you have to buy…and it is always a have to… you need to come up with the money.   Either you dig into the savings accounts or you borrow money from a lending institution (or you’ve got the money stored in your mattress).  Do you need to finance?  That’s really a personal decision.  Many a good aircraft deal was missed because my funds were tied up in the wrong place (food, housing, clothing, etc.) 

But borrowing money can sometimes be the right means to the end!   Financing comes into play when you need to preserve your existing cash or when you need cash to begin with.  It’s even been said that another good reason to finance is because the average aircraft is only owned for a few years.  Why tie up one’s own money in equity in an aircraft that you don’t plan on owning for a very long time.  And one other thing, at this time, borrowing money is relatively cheap. 


Where will you go for the money?  After you’ve exhausted all your friends’ relatives and neighbors, you can go to your local lending institution (bank, credit union, savings bank) and ask for an aircraft loan.  In fact, most aircraft lending groups recommend that you check there first.  It may even be easier to get a local loan because of the existing banking relationship the buyer has with the institution.  But most local banks are not fluent in aircraft.   If the loan officer didn’t bust out laughing, you might have a chance.  If they stared glassy eyed straight past you at clock on the wall, mumbling something about a break, start looking elsewhere.

Below are six basic tips to make your financing experience a good one. 
1. Choose a finance source that understands aircraft
2. Select an aircraft that fits your needs (be realistic)
3. Review your credit history prior to applying for a loan (make sure your information is current and correct)
4. Put together a complete financial package which include: detailed loan application, Up to date personal financial statement, at least two years of income Verification (w-2, Payroll stubs, Tax returns and business tax returns if self-employed).
5. Provide a thorough description of the aircraft which could include log book copies, airframe and engine hours, equipment lists, result of pre-purchase inspection, pictures
6. Explain how the aircraft will be used, estimated hours of use, location of home base and any other details.

If you plan ahead and contact the loan underwriter with the above information the loan process can be completed in a few days (and that includes title searches, credit checks and insurance binders.)  Whichever airplane is your dream plane and no matter how much it cost or whatever financing method you use…remember, it’s only money!