aircraft charter

FOR IMMEDIATE RELEASE

EDGEWATER, Md. - Jan. 16, 2019 - National Aircraft Finance Association (NAFA) is pleased to announce that Blue Ridge Jet Management has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Blue Ridge to our association,” said Ford von Weise, President of NAFA.

Blue Ridge Jet Management is a multi-faceted private aviation company offering services designed to evolve with the needs of their customers, including aircraft management, charter brokerage, aircraft sales and acquisitions, business aviation consulting and flight crew services.  Their team encompasses over 100 years of aviation experience and supports their clients’ private aviation needs throughout the various phases of growth and development.  

Many of their clients start with charter, transition through jet cards or a fractional share program and ultimately end up owning an aircraft.  The goal at Blue Ridge Jet Management is to foster the client relationship by finding the right solution for every need, now and in the future. 

“Blue Ridge Jet Management shares the commitment of the National Aircraft Finance Association to our mutual clients who require the expertise of a team of professional partners to receive the best guidance, advice and counsel regarding the complex process of aircraft acquisitions, financing, operations and management.  It is an honor to be associated with NAFA and its Members,” stated Greg Kinsella, Co-founder of Blue Ridge.

Much like NAFA, Blue Ridge Jet Management promotes the highest standards of customer service in private aviation. Blue Ridge and NAFA contribute greatly to the aviation industry as committed partners with their clients. 

For more information about Blue Ridge Jet Management, visit www.blueridgejet.com.  

About NAFA: 

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – Feb. 4, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that Clay Lacy Aviation has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Clay Lacy to our association,” said Ford von Weise, President of NAFA.

Founded in 1968 by an aviation legend and industry pioneer,Clay Lacy Aviation is considered one of the world’s most experienced operator of private jets. For the past 50 years the company has managed, maintained and globally operated jet aircraft from every major manufacturer- serving business and world leaders, Fortune 500 companies, government agencies, professional athletes, sports franchises, celebrities and dignitaries. 

“NAFA brings together talented leaders from across the business aviation industry and we are delighted to support and participate in their efforts,”said Scott Cutshall, VP Brand Development with Clay Lacy.

Clay Lacy Aviation is a trusted partner for aircraft management, charter, maintenance, avionics, interiors and FBO services. The company has aircraft operations and regional offices across the U.S., including a full-service FBO at Van Nuys Airport in Los Angeles, and aircraft maintenance centers in Los Angeles, San Diego, and Oxford, Connecticut. They are also the authorized dealer for the Quest Kodiak 100 Series II in the Northeastern U.S. 

 Waterbury-Oxford Airport, Oxford, CT

The company prides itself on having the resources of a large organization, with the agility, responsiveness and personal attention of a small, private flight department. Their highly knowledgeable team of aviation professionals manages every facet of their clients’aircraft- whether one aircraft or a fleet, a light jet or an airliner- anticipating needs, reducing costs and protecting assets.

Much like NAFA, Clay Lacy Aviation is dedicated to the continuous improvement of safety, service and value throughout the industry.Clay Lacy and NAFA foster highly trained, knowledgeable and passionate aviation professionals worldwide with their expanding networks of experienced and trusted businesses. 

For more information about Clay Lacy Aviation, visit claylacy.com.  

Van Nuys Airport, Los Angeles, CA

About NAFA: 

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

NAFA member, Lee Rohde, Founder, President and CEO of Essex Aviation, writes about what to consider when your aircraft needs change.

Perhaps your travel mission recently has changed, and you’ll be flying to new destinations. Or you’re interested in having more cabin space, amenities, and upgrades. Maybe the lease on your current aircraft is coming up for renewal and you want to be sure you’re using the most appropriate aircraft. Or your aircraft is fully depreciated and there are tax considerations to your continued ownership.

Is buying a new aircraft your only – or the best – option for you? Today’s business aviation market offers current aircraft owners a broad range of options to meet those evolving needs. Here are three different avenues to consider:

ONE: Upgrade or Refurbish Your Existing Aircraft

The first option is to refurbish the interior and exterior of your current aircraft while also considering upgrades to meet your new mission or regulatory requirements (see “Time Flies …Will Your Aircraft? BAA January/February 2018). This option offers the obvious benefits of not having to go through the search, inspection, and purchase process inherent in buying a new aircraft. It also reduces the unknowns, since you are familiar with and know the history of the aircraft you currently own. The downside is that you will have to take your aircraft out of service while the refurbishment and/or upgrades are completed. You’ll have to weigh the costs of the refurbishment and/or upgrades coupled with the costs to use alternative lift while the work is being completed.

Depending on your mission requirements, typical upgrades to consider would include but are not limited to:

• Avionics upgrades
• FANS/ADS-B Compliance
• Enhanced Vision Systems
• Cabin Management Systems
• In-Flight Connectivity and Entertainment Systems
• Galley Layout and Equipment

Interior and exterior aircraft refurbishment can involve all or some of the following:

• Exterior Paint
• Floor plan Modifications
• Seating Design and Upholstery
• Cabinetry Veneer
• Carpet
• Headliner and Sidewall Covering
• Improved Lighting

Upgrading and/or refurbishing your existing aircraft is usually recommended if you plan to keep your aircraft for at least four or five more years. If you’re thinking of selling sooner than that, work with your aviation advisor to consider which upgrades will help with the aircraft’s resale value and marketability, and which probably would not provide a substantial return.

TWO: Supplement Your Existing Aircraft

Another option is to keep your current aircraft and supplement it with an additional asset — such as charter, fractional ownership, or a membership or card program. This option can be an ideal combination if you enjoy your current aircraft but have encountered additional travel requirements that it is not best suited to support.

For example, perhaps you currently own a large cabin aircraft and need to make regular short trips throughout the Northeast, to Long Island, or to one of the several island destinations during the summer months. That may be much more aircraft than is needed and not cost effective given the short distances to be flown. In many cases, using a fractional share, charter, or membership/card program for these trips can be more efficient, and frees up your aircraft for other travel. Some options for supplemental, alternative lift are:

Charter

When you charter an aircraft, you are essentially renting the aircraft for a certain mission and period of time. Charter is best for quick trips since you’ll keep the plane with you for the duration of the trip, and the aircraft is exclusively available to you. If you are traveling for a two-week vacation and plan only to use the plane to get you there and back, retaining the chartered aircraft can be expensive compared to other options. One of the benefits of chartering is schedule flexibility, which normally allows you to change your travel plans as needed.

Fractional Ownership

With fractional ownership, you are either purchasing or leasing a share and percentage of allotted flight time in a specific aircraft type. Typically, fractional programs require a minimum of 50 hours per year to participate. Fractional ownership does not offer as much flexibility in terms of scheduling change as does charter. Fractional shares can be beneficial if you plan to stay at your destination for a longer period of time, since you pay only for the occupied flight time you use, albeit at a higher per hour cost than for occupied round trip charter.

Membership/Card Programs

Membership/Card Programs are ideal if you don’t need to fly frequently during the year, and if you appreciate flexibility in the aircraft available for each trip. On these programs, you typically will be required to use a minimum of 25 hours per year. When evaluating these programs, it is critical to understand how each provider sources its aircraft and the safety ratings of the operators they use, as well as the terms and conditions of the funds being put on the account.

THREE: Replace Your Existing Aircraft

You also may choose to replace your existing aircraft altogether. For example, if your destinations have changed and you need an aircraft capable of landing on shorter runways, you need a larger aircraft to travel internationally, you want to stop less frequently to refuel on longer flights, or you just need more room for more passengers.

As you think about replacement, you will need to consider several questions, including but not limited to:

• How will you be using the aircraft? For business or personal use, or a combination of both?
• How many trips do you take annually? What is the average duration?
• Do you travel to airports with runway restrictions or that are limited to certain size/performance aircraft?
• For how many passengers do you need seating?
• Is international travel anticipated? If so, where and how often?
• Do you want a cabin with stand-up headroom?
• How many and what type of sleeping locations do you desire?
• Do you carry a lot of baggage or other equipment when you travel?

You also will have to decide whether you want to buy a new or pre-owned aircraft. Purchasing a new aircraft will allow you to fully customize it, but will require a longer time for final delivery. Or you could acquire a “white tail,” which is an aircraft that has already been built and completed, but whose original purchaser failed to take delivery. While you don’t have the same ability to customize, you’ll benefit from a much quicker final delivery and entry into service. A pre-owned aircraft also offers you the option, if desired, to refurbish or upgrade the aircraft to meet your needs.

If your mission requirements have changed or you anticipate a near term change, consider all the options. An unbiased aviation consultant or advisor, not affiliated with a specific operator or third-party provider, can help you evaluate your options and offer recommendations based on your current and future travel needs.

The original article was published in Business Aviation Advisor on March 1, 2018. 

NAFA member, David Norton, with Shackelford, Bowen, McKinley & Norton, LLP, writes about customizing your charter management contract.

When seeking to generate extra revenue to help offset the overhead costs of owning and operating your aircraft, you’ll likely hire a properly licensed aircraft charter management company (a “certificated air carrier” in FAA-speak) with the authority to make it available to the public for charter flights.

Normally, you would set up a “dry” lease (a.k.a. “charter management contract”) to that charter operator. While the FAA will impose some restrictions on what such a contract can require, it is your aircraft, so you may seek to impose some guidelines that most charter operators won’t necessarily initially offer to help protect your valuable asset.

Any good charter management contract will have standard clauses dealing with the term and termination rights of the parties, the services the charter operator will provide (crew, maintenance, record keeping, etc.), the basic obligations of the airplane owner to pay for the maintenance of operations of the aircraft (in exchange for receiving most, if not all, of the generated charter revenue), insurance requirements and related indemnification and risk-of-loss issues, key legal provisions such as statements addressing the FAA’s rules on “operational control” of the aircraft, and common “boilerplate” provisions dealing with notice requirements, confidentiality, and so forth.

• What else might you consider asking for that does not typically appear in the first draft of a charter management contract? Examples of such provisions include:
  Limitations on who can charter the aircraft, such as:
  • “Hard partiers” (e.g. rock bands)
  • Young children
  • Customers who refuse to submit to credit checks.
• Limitations on substances you might not want on your aircraft:
  • Red wine (See “Something to Hide” BAA Nov/Dec 2016)
  • Marijuana, even if legal under your state law
  • Smoking of any kind.
• Beyond what is typically covered under aircraft insurance provisions, areas where you may not want your aircraft to be operated, such as:
  • Any region on the U.S. State Department’s Travel Advisory list, or even outside your country at all
  • Into a weather-challenged zone, such as a hurricane area, forest fires, or after a recent blizzard
  • To a country that imposes tariffs that you might end up having to pay after the fact.
• Specific items you may not want on board, such as:
  • Animals, whether caged pets or exotic species
  • Firearms
  • Other materials you might find objectionable.
• Additional safety items or restrictions, such as:
  • Requiring the pilots to be trained by a particular training company
  • Imposing crew duty requirements more stringent than the FAA’s
  • Requiring every flight to have a corporate flight attendant (See “The Corporate Flight Attendant: Safety and Service,” BAA April 2014).
• Any timing limitations on use of your aircraft, such as:
  • The requirement to provide at least 48 hours’ notice before a charter so that you can make sure it won’t conflict with your planned use
  • No weekday charter (if you use your airplane primarily for business during the week), or conversely
  • No holiday weekend charter (if your use is primarily personal).

All of these suggestions are subject to some very important restrictions. The Department of Transportation’s anti-discrimination rules make it very clear that you cannot seek to limit the use of the aircraft based on race or gender, for example. And the FAA has significant rules regarding placing so many restrictions or guidelines on the charter management company that you have, in effect, failed to give them the operational control of the aircraft they are required to maintain.

But it is your aircraft, so discuss with the charter management company just how it will – or will not – use your aircraft. 

This article originally appeared in Business Aviation Advisor September/October 2018.