I was invited to participate in a Aviation Insurance Round-table discussion with a few of my colleagues.
The discussion was about what we, as aviation insurance brokers, are seeing in the aviation insurance marketplace. This includes increases in premium, pilot age issues and difficulty obtaining insurance.
Thanks to Larry Anglisano and the Aviation Consumer Magazine and Kitplanes Magazine for hosting and putting this together.
To listen to the complete discussion, click here.
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.
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!
EAA AVIATION CENTER, OSHKOSH, Wisconsin — (November 22, 2019) — While fatal aircraft accident totals in amateur-built aircraft remain at historic lows, a slight increase in the total for the last 12-month reporting period shows the continuing necessity for dedicated educational efforts to push the total even lower, according to the Experimental Aircraft Association.
The Federal Aviation Administration reports that for the 12-month period from October 1, 2018, to September 30, 2019, fatal accident totals for the experimental category overall, including amateur-built aircraft, racing aircraft, those used for exhibit only, research-and-development, and some types of light-sport aircraft, rose to 52 – five above the FAA’s “not to exceed” goal of 47 for the period. Of that total, 39 fatal accidents were in amateur-built aircraft, an increase of four from the previous reporting period.
FAA measures accident totals on an October-through-September annual basis to coincide with the federal government’s fiscal year. In addition, the National Transportation Safety Board earlier this month noted that fatal accidents in all categories of general aviation increased in calendar year 2018 after several years of decline.
“What this increase tells us is that enhancing safety is not simply a target number to be reached, but a continual effort to build on the positive foundation we have already established,” said Sean Elliott, EAA’s vice president of advocacy and safety. “We are pleased that the accident totals remain below the challenge goal FAA issued to us in 2010, when the agency asked us to reduce the accident rate by 10 percent over the ensuing decade. It is not enough to simply reach a number, however; we must keep a steady focus on making improvements, especially as the number of general aviation flight hours have increased over the past several years.”
Elliott noted that the overall fatal accident numbers for experimental category aircraft remain much lower than other recreational pursuits, such as boating, skiing and snowboarding, and driving all-terrain vehicles.
EAA has worked closely with the FAA and NTSB on recommendations to reduce fatal accidents, including through participation in the FAA General Aviation Joint Steering Committee that EAA has co-chaired for the past three years. Efforts have also included more than 2,500 copies of the one-year old EAA Flight Test Manual now in the hands of amateur-built aircraft owners and the increasing use of an additional safety pilot during initial flight testing in amateur-built aircraft.
“With already very small numbers involved, a few additional accidents can create a percentage-rate anomaly, so it’s important to focus on driving the overall accident numbers lower,” Elliott said. “We must focus on training, situational awareness, and good pilot skills to complement the ever-improving technology that is part of today’s aircraft cockpits.”
About EAA
EAA embodies The Spirit of Aviation through the world’s most engaged community of aviation enthusiasts. EAA’s 230,000 members and 900 local chapters enjoy the fun and camaraderie of sharing their passion for flying, building and restoring recreational aircraft. For more information on EAA and its programs, call 800-JOIN-EAA (800-564-6322) or go to www.eaa.org. For continual news updates, connect with www.twitter.com/EAA.