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National Aviation Day - A Look Forward
December 1903 marked man’s first true attempt to conquer the skies. Since then, we have flown passengers to every edge of the globe, gone supersonic and walked on the moon all in the last 115 years. So what will the next 50 years of progress look like?
Today is National Aviation Day!
December 1903 marked man’s first true attempt to conquer the skies. Since then, we have flown passengers to every edge of the globe, gone supersonic and walked on the moon all in the last 115 years. So what will the next 50 years of progress look like?
Supersonic Flight
As I type, there are men and women working to bring sustainable and efficient supersonic flight to both commercial and business aviation. Sure, the Concorde made the hop from JFK to Heathrow at twice the speed of sound, but it was never really economically viable. Aerion Supersonic has teamed up with Boeing and GE to produce a supersonic business jet (SSBJ) that is slated to enter service in 2025
Aerion AS2
Space Travel
Cities like Houston, Texas are already investing huge amounts of money into a future of space travel. The long-term goal of Houston’s Spaceport and facilities like it is the idea of orbital or sub-orbital travel. In a future where we have a safe and effecient way to get into low earth orbit, trips around the globe that currently take 15+ hours on air carriers can be completed in a little over an hour. Not to mention, trips to further locales, like Mars may become more routine.
Houston Spaceport
Urban Air Mobility
Uber has made it clear that they intend to take to the skies to provide air connectivity high above the traffic on the streets below. It may seem far-fetched until you understand that Boeing, Embraer ,and Bell Helicopter (to name a few) are all heavily involved in the research and development of the program. This project aligns with a similar objective to bring electric turbines to the aircraft market - promising a quieter, greener, more reliable alternative.
Uber Elevate
The Future of Aviation is Bright
Aviation has always pushed the boundaries of what is humanly possible. With a new onset of fresh ideas and creative vision, the next generation of flight is well underway. No matter what the future will look like, I know aviation will continue to be at the forefront of innovation and continue to make the world a smaller, more connected place.
Cameron Tipton, ASA, ARM-MTS
Author:
Cameron Tipton, ASA, ARM-MTS
accredited senior appraiser
appraisal review & management - MTS
How to Choose an Aircraft Appraiser: Comparing Appraisal Credentials
There is a lot of confusion around the different appraisal organizations. ASA, NAAA, PAAO, ISTAT - what do all these letters mean to you? We take a close look at the organizations that credential aircraft appraisers and what it takes to become one for each.
Aircraft Appraisal Organizations
In our previous article we gave our top 4 things to know before getting an appraisal. Hiring an accredited appraiser is critical and there are only 3 major accrediting organizations for aircraft appraisers. The next reasonable question is, which organization’s appraisers are best for your valuation?
Here are the facts:
American Society of Appraisers
The ASA has been in existence since 1936 and was one of the founding members of the Appraisal Institute, which created and continues to disseminate the Uniform Standards of Professional Appraisal Practice (USPAP) which is the congress-recognized guideline for appraisal development and reporting. Today, the ASA is the largest, multi-disciplinary, non-profit appraisal organization and its members are recognized worldwide as a cornerstone of ethical and professional appraisal practice.
The ASA has a specialized program for aircraft appraisers taught in conjunction with Embry-Riddle Aeronautical University. The ASA requires successful completion of 4 Principals of Valuation courses for a total of 120 classroom hours, which each have an exam component that tests for comprehension of aircraft systems, finance, and valuation methodology. Candidates must then submit verifiable proof of experience in the aviation appraisal field, a 4-year college degree, and an appraisal report that all is reviewed by an international board of examiners. After receiving an accreditation, ASA appraisers are required to comply with USPAP and the ASA’s code of ethics. Appraiser’s must also fulfill the 120 hour continued education requirement every 5 years, proof of which must be submitted to the society. Flight Level’s appraisers hold their designations with the ASA.
International Society of Transport Aircraft Trading
ISTAT was founded as a non-profit educational and networking organization for professionals working in transport aircraft trading in 1983. Since then, ISTAT has developed an appraiser education and credentialing program for the valuation of transport category aircraft (think: airliners, commuters, etc…). ISTAT has varying levels of credentials that each require different levels of experience, and examination. At minimum, ISTAT Appraisers must have 5 years of experience in aviation with 2 years of full-time appraisal experience, pass a series of exams, provide proof of a 4 year college degree (or equivalent) and provide an appraisal that will be reviewed by a Board of Governors. After credentialing, Appraisers must complete on-going mandatory continued education.
ISTAT requires its members to adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) development and reporting standards and uphold societal ethics.
Professional Aircraft Appraisal Organization, LLC
The PAAO was created from the remnants of the now defunct National Aircraft Appraisers Association (NAAA). PAAO was founded at the end of 2018 and is currently only accepting appraiser membership from former NAAA Appraisers. The NAAA previously certified appraisers at varying levels dependent on experience in aviation and after attending in-person training courses. The PAAO is currently working on an education pathway for future appraisers, but does not have one in place at the time of writing. The PAAO requires its members to adhere to a societal code of ethics and states that its members should adhere to USPAP development and reporting guidelines when valuing “turbine” aircraft. There is currently limited information regarding what requirements there will be for incoming candidates and what will be required for re-accreditation.
Picking an Appraiser
It’s important that the consumer understands what type of appraiser they are hiring since it may influence the credibility of a given report. An appraiser that has a credential restricted to valuing piston aircraft is probably not the best match for a Gulfstream valuation. Knowing the ins-and-outs of the different organizations empowers you to make well-informed, smart decisions. With money and assets on the line, mistakes can be catastrophic.
We believe the ASA holds the highest standards for their credentialed appraisers. Not only is it the oldest of the appraisal organizations, it also is the only multidisciplinary one; ensuring that appraisers of all fields are interconnected and have a pulse on not only their industry, but the economy and appraisal environment as a whole. The rigorous education, testing, credentialing and continued education requirements are recognized as the gold standard, worldwide. Flight Level is proud to have two aircraft appraisers accredited by the ASA.
Corey DeWitt, AM
What happened to the allure of the airlines? From Pan Am and the 747 to today.
From flying the 747 on Pan American Airways during the Golden Age of Aviation to the high-density configuration of modern airlines, what happened to the way we fly?
October, 2017
I arrive at Houston Intercontinental airport for an 8AM flight to Denver. Although I have Global Entry, which allows me to utilize the TSA Pre-check lane, the line through security is moving as slow as molasses and takes half an hour to get to the security checkpoint. Then the dreaded high pitch beep of the metal detector rings loud for all to stare and wait on me as I’m patted down by a disgruntled and exhausted security worker. Once he is done violating my dignity at 6:45 in the morning I head to the United Club to seek some solace, coffee and a quick bite to eat. However even in the one area of the airport where there may be some reprieve I find none, the food left out for us “Club Members” is stale and the coffee, burnt. To add insult to injury all comfortable seats are taken by shabby jet-lagged travelers or families whose kids are turning common areas into playgrounds, so I’m forced to take residence center stage at a particularly awkward table next to the oatmeal bar. All I can think is -
“what happened to the allure of flying commercial?”
Take a step back in time to 1970, Pan-Am took a giant leap towards a more accessible world with the inauguration of the “Queen of the Skies”, the Boeing 747. The 747 was a game changer, an aircraft so iconic and extraordinary that it has remained in production for almost half a century. Embarking on a flight from New York to London was far more than just a couple movies to watch and a decent meal.
These were the days when the world was excited to fly.
Teague
The 747 boasted not only incredible leg room and seat breadth, but style, luxury and an experience worth talking about. Upper cabin bars, full in-flight dining, couches and lounges galore and service far beyond today’s standard complementary smile and ounce of pretzels. Flying was a highly anticipated experience as much as it was a necessity. So much so that in one year’s time from the adopting of the 747 Pan-Am alone transported 11 million passengers over 20 billion miles. People were excited about air travel, airplanes and were simply enjoying the act itself, flying.
Ultimately rising oil prices and the Airline Deregulation Act of 1978 caused a fundamental shift in future of commercial aviation. Because the fare was no longer set by the federal government there was far less focus on airline differentiation on the basis of service or amenities. The establishment of a free market led to lower barriers to entry for new competitors, increased air travel, established new routes, and decreased the average fare enabling more Americans to be able to fly. This was the beginning of the end of the “Golden Age of Aviation” and legacy airlines like Pan American Airways.
Today, most legacy airlines were forced to close their doors or be absorbed by newer more lucrative providers and dreams of the luxurious facets of commercial flight are just that, dreams. It’s a sad reality, but most Americans have become desensitized to the extraordinary feat of being 7 miles in the air at 614 miles per hour. The airlines know this and have listened to what we want, not by what we have said, but what we will pay. They have added more seats per aisle than ever thought possible, with most airlines opting for ten abreast high density configuration for long-haul aircraft. Seat sizes themselves have shrunk to accommodate the airlines attempt to capitalize on economy seating to only 17 inches wide, for reference the average stadium seat today has remained an uncomfortable 19 inches. This being said some foreign airlines like Emirates still have the luxuries and level of comfort comparable to those of the height of jumbo jet travel, at a cost –double the time and money.
It’s hard to distinguish what was the height of international travel from what the airlines have become today. We line up like cattle when our boarding group is called and eagerly push people along so we can be at ease in our seat with luggage stowed. We choose having TV monitors to distract us from the lack of leg room. We put on our headphones to establish a barrier between us and the man whose torso is protruding over the armrest onto ours. The airlines have met us where we are willing to pay and we have come to accept the terms.
Where has the allure gone? To private aviation. Those, like me, understand that although the 747 is retiring and airliners are becoming sardine cans, the experiences and capabilities that used to be common on the legacy airlines are still available. What is often thought as a luxury left only to the “Zuckerbergs” of the world is far more economical and accessible than ever before. Manufacturers in private aviation HAVE listened to our concerns and responded with aircraft operating at significantly lower costs, full air-frame parachutes and comfortable luxurious cabins. Whatever your travel prerequisites are there is a solution in private aviation for you, whether it is aircraft ownership, a jet card, membership program, ad hoc charter, fractional ownership or holding a lease.
September 2018
I arrive at West Houston Airport for a 7 AM flight to Denver and put in the access code to the gate. We park the car next to the plane in the hangar where the pilot Jack greets us and helps with our bags. Five minutes later, we taxied out and were wheels up for Denver. All the while discussing new market potentials, playing a game or two of cards and never having to distract myself from any of the nuisances that I had with the airlines a year prior.
Author:
Corey DeWitt, AM
Co-Founder/Director of
Business Development
Flight Level Partners
4 Reasons You Should Buy an Airplane
The aircraft market is HOT and the advantages of owning your own aircraft can be huge. From tax programs to increased business performance here are a handful of reasons you may have overlooked.
1. TAXES!
While the primary deterrent from aircraft ownership is often the price, few business owners understand the huge tax benefits your aircraft can offer. In an attempt to boost the economy the Obama administration issued Bonus Depreciation for factory new aircraft. Now, in 2017 that depreciation is 50% of aircraft value. That means you are able to recover 50% of total cost your first year of ownership! How does a million dollar tax credit sound?
2. It's not as expensive as you thought
Money talks and the upfront equity investment in an aircraft is usually high. However, new ownership strategies are hot on the market and can reduce or eliminate your operating costs - you essentially fly your plane for FREE. Groups like Q Air in Houston, TX are leading this wave of innovation. These companies professionally manage your airplane and in exchange sell time-share style hours to other operators. This gives you a positive revenue stream and according to Q Air customers, they not only fly free, but they make decent profits on their investments. You maintain total control of your aircraft but the downtime works for you, instead of against - NICE!
3. Your business will grow
Travel has become its own form of currency and the rate at which you are able to move yourself and your employees matters now more than ever. If you are a frequent traveler you may have noticed a slight (read: major) decline in airline performance. Oversold and tardy flights are now commonplace. Each business situation is unique, however, many companies can justify using private aircraft because their executive time lost is greatly reduced. The National Business Aviation Association reported that companies that incorporate private aircraft in their business outperform competitors in, "annual earnings growth, stock and dividend growth, total share price, market capitalization and other financial yardsticks". Not to mention, your clients will be very impressed.
4. Now is the time to buy
Business aviation is on the rise - a steep one, in fact. The U.S. economy is booming and the aircraft market is more liquid today than any other time in the past decade. As a result, prices are more competitive and the aircraft selection is constantly refreshed. For now, it's a buyer's market - but this will change. The overall selection of aircraft is certainly a limited supply and as we have noted during similar market trends (and as basic economics dictates) these low prices will surely rise. If you have ever thought about an aircraft for your business it's worth a conversation with one of Flight Level Partner's consultants. Our team firmly believes in educating the prospective buyer - so consultation is always free. So, the next time you're waiting to board your oversold, late flight - feel free to give us a call, we're happy to help.