Category Archives: aviation insurance

EAA Airventure Updates for 2009

Posted on by

Check out some of the things going to happen at Oshkosh this year. If you think aviation is slowing down, think again.

Direct from the EAA Press room!

While much more is in the works for AirVenture 2009, some early confirmations include:

Virgin Galactic’s WhiteKnightTwo – World public debut – arrives Monday, departs Saturday, and see it on AeroShell Square throughout the week.

Jeff Dunham performs his comedy act Saturday night presented by RotorWay International.

Doobie Brothers take the stage opening day, presented by Ford Motor Company.

Concorde’s 40th anniversary celebration and reunion of the 1980s-90s Concorde participants.

“Fly For Life” program with weeklong events recognizing those who fly to serve others.

100th anniversary of air racing featuring the Wright Model B.

60th anniversary of the legendary T-28 with daily air show participation

100th anniversary of Canadian Flight featuring aircraft, personalities, and more

Don’t miss this years EAA AirVenture Oshkosh 2009, July 27 – August 2!

To get more information on event schedules, hours of operation, and travel and lodging, visit www.airventure.org or call 1-800-JOIN-EAA.

Changing coverage

Posted on by

In these economically challenging times, insurance is often one of the first things that aircraft owners cut from their budget. Many owners feel that they can’t afford insurance, hangar AND fuel, so something has to go. That is very understandable.

But before you eliminate all the coverage, take a look at what you have and see if there are changes that can be made to the limits or the types of coverage. Like any other investments review what you have and check on alternatives so you do not lose all the value in the worst case scenario.

Many owners believe that if they crash the plane they will probably be gone anyway and they don’t need to worry about the value of the plane. But take a look at the accident statistics, in reality, general aviation is very safe and there are very few fatalities. (Even if there is a worse case situation, the estate will be out the value of the plane if it is uninsured.)

So that means the majority of accidents cause damage to the plane and even surrounding property but not fatalities. If it took years to build the aircraft, why take the risk of losing that investment? At least in the event of a loss if you have insurance you are allowing the insurance company to share part of the risk and help rebuild or replace the plane.

Most owners also think that “it won’t happen to them” and that might be the case, but are you willing to take that risk? If you are a gambler and willing to risk the value of your plane and can afford the loss, go for it.

Also if your age is in the sixties or even seventies, many insurance underwriters will not insure you as new business, especially in high performance aircraft. If you cut coverage this year expecting to get coverage back in five or six months, it might not happen. So it’s best to keep some sort of coverage in effect.

If you do not have a loan, look into reducing the coverage to something like liability only. If the aircraft is not financed, you could get rid of the hull coverage and at least keep liability coverage in effect. Liability is usually the lowest cost portion of a policy and usually what is required by an airport or state.

If you are in the older age group, this would keep the aircraft insured so you would not be a “new” risk. You could always look into adding hull coverage at a future date. At least you would be insured by a company which would make it easier to get additional coverage.

Ground not in motion hull coverage might also be an option. This type of coverage would protect the hull when it was not under its own power from things like fire, theft and storms. These are things that the owner tries to protect the plane from but is often out of the owner’s control.

What ever your decision, check out the options before you cancel all the coverage.

Cape Town Treaty

Posted on by

Recently I had a customer buy a Cessna 421 and the finance company required him to get an international registration. This process takes time, escrow accounts and cost more money. This is a stage of the purchase process that I don’t see, so a little research was in order.

What I discovered was that while it takes time and money, international registration (known as the Cape Town Treaty) is not only required, but it is in the best interest for the buyers of certain aircraft.

Where does this registration come from?
The Cape Town Treaty establishes the right for owners of these aircraft to grant an “Irrevocable De-Registration and Export Request Authorization” (IDERA) to a secured party. The treaty was adopted in the United States by The Cape Town Treaty Implementation Act of 2004, on August 9, 2004. This also establishes the “Civil Aviation Registry”. The effective date of these changes was March 1st, 2006.

Still confused about the Cape Town Treaty?
Well so am I. This thing was voted on and adopted with little if any fanfare in the aviation industry (except maybe the NBAA (National Business Aircraft Association)) but for most of us general aviation pilots it is a new requirement.

Even if you are not planning on flying internationally, when you buy a certain plane you will be required register the plane not only through the FAA but also through this international registry program called the “The Cape Town International Registry” (CTIR).

The CTIR was designed to protect financial interests in certain aircraft and engines. The International Registry is recognized by a number of countries (not all, but yes, the USA) as an additional place for the filing of interests, including prospective interests, in certain airframes, helicopters, and aircraft engines. From what can tell, countries like Canada and Mexico opted out of the treaty.

Depending on who you talk to, it appears to have been started by a big aircraft company that wanted to find a way to protect their interest in planes and engines around the world. It was decided that an international registry would be a way to keep control of those interests outside of the FAA’s boundaries. But what wasn’t really planned was the trickle down to the general aviation flying public. I’m talking owner/pilots of smaller twins and singles.

What planes are included?
Basically any airplanes that are:
1.Certified with at least eight (8) seats including crew; or carrying “goods” in excess of 2750 kilograms (6050 pounds).

2.Helicopters that are type certificated to transport: At least five (5) persons including crew; or “goods” in excess of 450 kilograms (990 pounds)

3.Jet propulsion aircraft engines with at least 1750 pounds of thrust or its equivalent.

4.Turbine-powered or Piston-powered aircraft engines with at least 550 rated take-off horsepower or its equivalent.

The registration process is fairly simple, but does require a procedure through a title company, registration with CTIR which is based; it appears, in Ireland and of course additional funds. This registration can cost the new owner into the thousands of dollars.

Do you have to do this even if you never plan on flying internationally?

Yes, it is a registration requirement. But also, it appears to be in the best interest of the buyer/owner and financial institution because the priority of your lien will be at risk. The explanation I was given was that a person or company could register your aircraft on the international registry (before you) and that registration would take priority over the FAA registration and they would be come the “owner” of your aircraft. IF that is true, you might have to pay the internationally registered “owner” to release your aircraft registration to you. This could be a nightmare. Fear of fraudulent filing makes it important to take this serious.

I am not an expert in this by any means. But I do think that if you own an aircraft that meets these registrations requirements such as a Cessna 421 or even a Malibu Jet Prop, you should look into it. Call your bank or go online to the FAA at:

http://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/cape_town_treaty/

Still have more questions (I did) about the International Registry you need to go to the International Registry website at https//www.internationalregistry.aero.