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The Duncan Download Blog: Business Aviation Advice & Observations

A Little Perspective on the Business Aircraft Purchase Agreement

Posted by Diane Heiserman on Tue, Feb 14, 2017 @ 09:00 AM

Contributed by Doug Kvassay, Aircraft Sales Representative

An aircraft purchase agreement provides the roadmap, defining processes and deadlines, through to the point of closing.

An aircraft purchase agreement provides the roadmap, defining processes and deadlines, through to the point of closing.

A couple of years ago, one of the larger banks in the business aviation industry called asking for my immediate assistance in locating the purchase agreement for an aircraft that we bought for a client a few years prior. The bank was undergoing an audit and had no record of it. Although I located the file on the transaction, it did not contain a purchase agreement. This transaction was for the acquisition of an aircraft that, at the time, was worth close to $20 million for a well-known individual. It didn't take long to remember the details of the events surrounding the deal.

There Was No Aircraft Purchase Agreement

The aviation attorney for our client negotiated with the bank (the aircraft owner) until the bank called and said they had had enough. We were told we had to close on the acquisition the following day or lose the aircraft. We wired funds, received an FAA Bill of Sale (BOS) from the bank and took delivery of the aircraft.

When I started in this business the process to buy a business aircraft was simple. You flew out to look at it, reviewed the records, did a quick test flight around the patch, handed the owner a cashier’s check, received a FAA BOS in return and flew home with the aircraft, all in the same day. No purchase agreements. No pre-purchase inspections. No escrows. Today, it is not uncommon to have two outside aviation attorneys spend the better part of two or more weeks negotiating a purchase agreement, usually at considerable expense to their clients.

Purpose of Aircraft Purchase Agreements

An aircraft purchase agreement provides the road map, defining processes and deadlines, through to the point of closing. However, in almost all cases, the purchase agreement is filed away once executed and never referred to again during the transaction. Even if a point of contention arises prior to closing, the buyer and seller usually work it out together without legal action, as the cost of litigating a dispute is never an economical option.

What many fail to realize is that an aircraft purchase agreement governs and spells out what both the buyer and seller are responsible for prior to closing. Typically, the only contractual promise in the purchase agreement that survives closing is the warranty of title, which is included on the standard one page FAA BOS. In the scenario above, since time was of the essence, we verbally agreed to move along with the deposit and pre-purchase inspection and were finished before we had a contract, at which point it didn't really matter. All we were receiving was warranty of title. And if you ever bought an aircraft from a bank, you know that warranty is limited to anything they specifically had to do with the aircraft.

Necessary Legal Advice

If you have special tax requirements or require setting up of an entity to hold the aircraft, legal advice from an aviation tax attorney can be indispensable. However, for a business aircraft transaction, where a straightforward purchase and sales agreement is sufficient, a competent broker working with your in-house or regular corporate attorney is a much more economical alternative to hiring a specialized aviation attorney.

Know the Details Before You Sign

Whether you are buying or selling a business aircraft, the Aircraft Purchase Agreement is a very important document to the transaction. Because it incorporates all terms and conditions of the sale, it is vital that you take the time know all the details of the contract before you sign.

Buying and selling an aircraft can be a stressful experience. You can lessen the stress by having a thorough understanding of the Aircraft Purchase Agreement.

Duncan Aviation’s Aircraft Sales & Acquisitions has been assisting operators buy and sell aircraft since 1991. Backed by in-house legal counsel, flight operations staff and over 2,000 airframe, engine and avionics technical representatives located around the world, gives Duncan Aviation first-hand access to, and knowledge of, the aircraft marketplace unmatched by any other broker or acquisition organization.

Visit www.DuncanAviation.aero/aircraftsales/listings.php for the latest aircraft for sale.

Doug Kvassay is a part of a team of four Aircraft Sales Representatives. He specializes in advanced aircraft aftermarket analysis and managing complex transactions. His aviation career began in 1980.

Tags: Aircraft Sales

ADS-B Myth #5: I Don’t Need ADS-B

Posted by Kate Dolan on Thu, Feb 09, 2017 @ 09:00 AM

Yes, you almost certainly do. You need a transponder capable of DO-260B transmissions and an upgraded or new WAAS (Wide Area Augmentation System) receiver unless you plan to fly below 10,000 feet and avoid Class A, B, and C airspace*.

With fewer than 34 months remaining to equip the entire US business aviation fleet with ADS-B Out avionics equipment, there will likely be shortages of hangar space at qualified shops as the deadline draws nearer. From now until the mandate deadline, January 1, 2020, roughly 174 aircraft per month still need to find available hangar space and qualified technicians.

Avoid The Scheduling Crunch

ADS-B-LobbyPoster-sm.jpgIf you are not yet ready for the required upgrades and are worried about finding available capacity at certified service centers, take a look at our ADS-B Slot Program

The Duncan Aviation ADS-B Slot Program lets you buy a slot to reserve a confirmed date and hangar space for your aircraft at one of our Satellite Avionics Shops. The deposit will be applied to the ADS-B installation when you arrive.

By scheduling now, you will see better pricing, have easier access to the certified transponders and GPS sensors, and find time for the upgrade/installation that fits your flight schedule and calendar.

Contact the Duncan Aviation Satellite Shop (www.DuncanAviation.aero/locations/#satellites) nearest you, one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new slot reservation program.

ADS-B Myth Busting

ADS-B Myth #1: There Is Plenty Of Time

ADS-B #2: The Deadline WIll Be Extended

ADS-B Myth #3: The Prices Will Drop

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

ADS-B Myth #5: I Don’t Need ADS-B

Download ADS-B  Straight Talk Now 

*What Is Class A, B & C Airspace?

Class A airspace encompasses all airspace over the continental United States and Alaska from 18,000 feet to 60,000 feet. This includes all airspace withing 12 nautical miles of the coasts of the continental United States and Alasaka and some designated international airspace beyond those 12 nautical miles. All flights in Class A airspace are under ATC control and must operate using IFR (instrument flight rules) only.

Class B airspace, which is the airspace around the 37 busiest airports in the United States, is strictly controlled. Aircraft flying in Class B airspace must be under the control of ATC, and VFR aircraft must receive explicit permission to enter the airspace. No aircraft can takeoff or land at these airports without permission or without an operating Mode C transponder and a two-way radio. These rules cover airspace within 30 nautical miles of the airports, often encompassing other airports in the area. For instance, the Dallas Love Field is not a Class B airport, but DFW is and Love Field is within the DFW airspace and is subject to the same rules.

Class C airspace goes from the surface to 4,000 feet MSL (Mean Sea Level) above the airport. These 122 airports have operational control towers, currently control approaches by radar, and have mostly IFR operations. Two-way radio communication is required for takeoff and landing, and aircraft may not enter Class C airspace without directly communicating with ATC first.

Tags: Avionics Installation, WAAS, ADS-B, NextGen

Be Aware of Naked Brokerage Transactions with Business Aircraft

Posted by Diane Heiserman on Tue, Feb 07, 2017 @ 09:00 AM

Contributed by Doug Kvassay, Aircraft Sales Representative

Naked Broker

The primary focus of a Naked Broker is to maximize their personal income, not minimize the cost or risk to the buyer.

I first heard the term "Naked Brokerage" from a colleague who used it to describe an aircraft brokerage deal where the broker did not have a written agreement with either the buyer or seller of a business aircraft. Because, the broker has no protection or guarantee of payment from either side, they essentially are "naked."

Increased Aircraft Sale Price

In a Naked Brokerage situation, a business aircraft buyer is typically talking to many brokers offering different aircraft, some of which are represented by a second broker, who has the actual agreement to represent the seller. During the course of the transaction, the broker will contract with the seller of the business aircraft while at the same time write a duplicate contract between themselves and the buyer, increasing only the sales price. Surprisingly, many aircraft transactions are done this way due to ignorance or indifference on behalf of the aircraft buyer.

No Incentive to Represent Buyer Interests

Brokers in a Naked Brokerage transaction are not guaranteed to receive payment for their efforts. During every transaction they look out for their own interests and seek to maximize their profit; oftentimes collecting fees many times greater than paid under an acquisition agreement. In the Naked Brokerage arrangement, the interests of the broker in the middle are not aligned with the interests of the buyer. Their primary focus is to maximize their income, not minimize the cost or risk to the buyer.

Seek Out Predetermined Brokerage Fees

More and more aviation attorneys are refusing to consult on purchases set up as a Naked Brokerage transaction. They want to receive the warranty of title and any other representations, directly from the actual owner, not from a broker in the middle of the transaction.

Most business aviation brokers offer an acquisition service, where the fee is predetermined and the acquisition agreement clearly states that the broker is solely looking out for the interest of the buyer. This benefits both the buyer and the broker. The broker will receive the predetermined fee and the buyer will get 100% of the broker’s effort in the acquisition transaction.

The Bottom Line

Always take a second look at the Letter of Intent and make sure you understand exactly who you are buying the aircraft from.

Duncan Aviation offers business aircraft acquisition services where the fee is predetermined and the agreement clearly states we are working for the buyer. Our interests are to secure the aircraft that best fits their needs at a greatest value. View the latest aircraft for sale by Duncan Aviation’s Aircraft Sales & Acquisition.  

Doug Kvassay is a part of a team of four Aircraft Sales Representatives. He specializes in advanced aircraft aftermarket analysis and managing complex transactions. His aviation career began in 1980.

Tags: Aircraft Sales

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

Posted by Kate Dolan on Tue, Jan 31, 2017 @ 11:04 AM

 

Myth4 paperweight.jpgAs one industry broker told us, “Without ADS-B, you may as well use your aircraft as an expensive paperweight. No one is going to buy it.”

Duncan Aviation’s Aircraft Sales & Acquisitions team says that whether an aircraft is equipped with ADS-B Out is already affecting its resale value. In this buyer’s market, if you don’t pay to upgrade to ADS-B Out now, the price you’ll be able to ask for your aircraft will be significantly less than if you had performed the upgrade.

And, with less than 35 months remaining to equip the entire US business aviation fleet with ADS-B Out avionics equipment, there will likely be shortages of hangar space at qualified shops as the deadline draws nearer. From now until the mandate deadline, January 1, 2020, roughly 167 aircraft per month still need to find available hangar space and qualified technicians.

Avoid The Scheduling Crunch

ADS-B-LobbyPoster-sm.jpgIf you are not yet ready for the required upgrades and are worried about finding available capacity at certified service centers, take a look at our ADS-B Slot Program

The Duncan Aviation ADS-B Splot Program lets you buy a slot to reserve a confirmed date and hangar space for your aircraft at one of our Satellite Avionics Shops. The deposit will will applied to the ADS-B installation when you arrive.

By scheduling now, you will see better pricing, have easier access to the certified transponders and GPS sensors, and find time for the upgrade/installation that fits your flight schedule and calendar.

Contact the Duncan Aviation Satellite Shop (www.DuncanAviation.aero/locations/#satellites) nearest you, one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new slot reservation program.

ADS-B Myth Busting

ADS-B Myth #1: There Is Plenty Of Time

ADS-B #2: The Deadline WIll Be Extended

ADS-B Myth #3: The Prices Will Drop

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

ADS-B Myth #5: I Don’t Need ADS-B

Download ADS-B  Straight Talk Now 

Tags: Avionics Installation, Aircraft Sales, ADS-B, NextGen

ADS-B Myth #3: The Prices Will Drop

Posted by Kate Dolan on Tue, Jan 24, 2017 @ 09:00 AM

saving-jar.jpg

This is an interesting thought, and we have heard many customers say this. If you look at our industry and the history of mandates, though, prices don’t typically decrease for equipment that is both required and has limited availability. It is our expert opinion after studying the issue thoroughly that as the mandate approaches, prices will instead increase, especially when you look at the upcoming demands for avionics installation capacity.  

There are fewer than 35 months remaining to equip the entire US business aviation fleet with ADS-B Out avionics equipment. That means from now until the mandate deadline, January 1, 2020, roughly 167 aircraft per month will need to find available hangar space and qualified technicians.

Avoid The Scheduling Crunch

ADS-B-LobbyPoster-sm.jpgIf you are not yet ready for the required upgrades and are worried about finding available capacity at certified service centers, take a look at our ADS-B Slot Program

The Duncan Aviation ADS-B Splot Program lets you buy a slot to reserve a confirmed date and hangar space for your aircraft at one of our Satellite Avionics Shops. The deposit will will applied to the ADS-B installation when you arrive.

By scheduling now, you will see better pricing, have easier access to the certified transponders and GPS sensors, and find time for the upgrade/installation that fits your flight schedule and calendar.

Contact the Duncan Aviation Satellite Shop (www.DuncanAviation.aero/locations/#satellites) nearest you, one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new slot reservation program.

ADS-B Myth Busting

ADS-B Myth #1: There Is Plenty Of Time

ADS-B #2: The Deadline WIll Be Extended

ADS-B Myth #3: The Prices Will Drop

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

ADS-B Myth #5: I Don’t Need ADS-B

Download ADS-B  Straight Talk Now 

Tags: Avionics Installation, ADS-B, NextGen

ADS-B Myth #2: There Is Plenty Of Time

Posted by Kate Dolan on Thu, Jan 19, 2017 @ 09:00 AM

deadline-graphic-myth2.jpg

We feel confident saying the deadline is firm. At the EAA AirVenture Air Show in Oshkosh, Wisconsin, in July 2016, FAA Administrator Michael Huerta reiterated that the mandate deadline will not change, and he encouraged general aviation owners to upgrade their equipment now, adding that it’s a smart move.

The FAA says there will not be an extension. The agency has outlined its NextGen initiative, and it includes ADS-B technology. Customers in Asia Pacific, Hong Kong, and Singapore all thought the same thing when the deadline for their mandate approached in December 12, 2013. It was not extended.

The FAA has given our industry 10 years to comply, and January 1, 2020 is the deadline. The time to schedule your ADS-B installation is now.

Because business aircraft operators in the United States have less than 35 months remaining to equip the entire fleet with ADS-B Out avionics equipment. That means from now until the mandate deadline, January 1, 2020, roughly 167 aircraft per month will need to find available hangar space and qualified technicians.

If you wait too long, the installation prices will increase, based on simple supply and demand, and you run the risk of not finding a shop qualified to complete the upgrades and installations.

Avoid The Scheduling Crunch

ADS-B-LobbyPoster-sm.jpgIf you are not yet ready for the required upgrades, but don’t want to get caught up in the mad rush to find available capacity at certified service centers, we are offering an ADS-B Slot Program

The Duncan Aviation ADS-B Splot Program lets you buy a slot to reserve a confirmed date and hangar space for your aircraft at one of our Satellite Avionics Shops. The deposit will will applied to the ADS-B installation when you arrive.

By scheduling now, you will see better pricing, have easier access to the certified transponders and GPS sensors, and find time for the upgrade/installation that fits your flight schedule and calendar.

Contact the Duncan Aviation Satellite Shop (www.DuncanAviation.aero/locations/#satellites) nearest you, one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new slot reservation program.

ADS-B Myth Busting

ADS-B Myth #1: There Is Plenty Of Time

ADS-B #2: The Deadline WIll Be Extended

ADS-B Myth #3: The Prices Will Drop

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

ADS-B Myth #5: I Don’t Need ADS-B

Download ADS-B  Straight Talk Now 

Tags: Avionics Installation, ADS-B, NextGen

ADS-B First In The US For Challenger 800/850 SE

Posted by Mark Francetic on Tue, Jan 17, 2017 @ 09:00 AM

We recently performed an industry first in the United States by installing/upgrading ADS-B-compliant avionics on a Challenger 850 SE. ADS-B-LobbyPoster-sm.jpgWe have combined the use of the STC from Rockwell Collins for WAAS/LPV with the STC from Avmax for ADS-B, approved for use on Challenger 800/850 SE aircraft by the FAA, which satisfies the upcoming January 1, 2020 ADS-B mandate deadline.

By combining these installations/upgrades, we minimized the downtime and access charges for the aircraft’s owner.

The installation/upgrades were performed by avionics technicians from the Duncan Aviation Las Vegas Satellite Avionics Shop at the customer’s hangar, and the aircraft’s pilots were ecstatic when they flew LPV approaches with the new system.

In addition to saving downtime and access charges, any of our experienced avionics technicians from our more than 26 Satellite Avionics Shops around the country can perform these installations/upgrades at a customer's facility.

ADS-B Information & Solutions

For information about ADS-B (www.DuncanAviation.aero/services/avionics-installation/adsb) and the mandate deadlines, please contact me at +1 702.303.4888 or via email Mark.Francetic@DuncanAviation.com

For information on scheduling an ADS-B installation/upgrade, please contact the Duncan Aviation Satellite Avionics Shop nearest you (www.DuncanAviation.aero/locations/#satellites), one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new Duncan Aviation slot reservation program.

 Still need more information?

Download ADS-B  Straight Talk Now 

Tags: ADS-B, NextGen

ADS-B Myth #1: There Is Plenty Of Time

Posted by Kate Dolan on Tue, Jan 10, 2017 @ 11:00 AM

Business aircraft operators in the United States have less than 35 months remaining to equip the entire fleet with ADS-B Out avionics equipment. That means from now until the mandate deadline, roughly 167 aircraft per month will need to find available hangar space and qualified technicians.

calender-book-5.jpgJanuary 1, 2020 seems like a long way off, but if you remember previous FAA mandates the industry experienced huge backlogs because there simply was not enough hangar space to accommodate the rush of owner/operators who needed to get their aircraft into complaince. Remember the scheduling difficulties with RVSM (Reduced Vertical Separation Minimum)? You don’t? Refresh your memory here. (Remembering the RVSM Crunch)

If you wait too long, the installation prices will increase, based on simple supply and demand, and you run the risk of not finding a shop qualified to complete the upgrades and installations.

Avoid The Scheduling Crunch

If you are not yet ready for the required upgrades, but don’t want to get caught up in the mad rush to find available capacity at certified service centers, we are offering an ADS-B Slot Program

ADS-B-LobbyPoster-sm.jpgThe Duncan Aviation ADS-B Splot Program allows you to buy a slot to reserve a confirmed date and hangar space for your aircraft at one of our Satellite Avionics Shops. The deposit will will applied to the ADS-B installation when you arrive.

By scheduling now, you will see better pricing, have easier access to the certified transponders and GPS sensors, and find time for the upgrade/installation that fits your flight schedule and calendar.

Contact the Duncan Aviation Satellite Shop (www.duncanaviation.aero/locations/#satellites) nearest you, one of our Duncan Aviation Avionics Installation Team Members (www.DuncanAviation.aero/services/avionics-installation/contacts), or call +1 402.475.2611 for more information about ADS-B upgrades and the new slot reservation program.

ADS-B Myth Busting

ADS-B Myth #1: There Is Plenty Of Time

ADS-B #2: The Deadline WIll Be Extended

ADS-B Myth #3: The Prices Will Drop

ADS-B Myth #4: We’re Going To Sell Our Aircraft Anyway

ADS-B Myth #5: I Don’t Need ADS-B

 Still need more information?

Download ADS-B  Straight Talk Now 

Tags: Avionics Installation, ADS-B, NextGen

Robert Duncan Reflects On 60 Years of Success & Innovation

Posted by Diane Heiserman on Thu, Jan 05, 2017 @ 12:10 PM


DonaldD_phone_SM.gifThe bedrock at the foundation of Duncan Aviation’s success was formed by the values of its founder, Donald Duncan. “…taking care of the customers, taking care of each other, telling the truth". So many talk about it, so few are able to consistently maintain it.

Values & Innovation

Duncan Aviation’s Core Values were established in 1996. They are proudly displayed at all of our locations and reviewed at every new employee orientation. Since they were first identified and written down, Duncan Aviation has more than tripled in size. However, the core values still match the company’s culture. They ring true to all team members and remind us daily about what is important.

Near the top of the list of Core Values is ‘lead through action and innovation’. These are not just words on a poster to be read and forgotten, it is a belief taken very seriously. Duncan Aviation team members have always been given the latitude to explore ways that can improve the customer experience without compromising integrity or safety. It is this eye towards innovation that has been vital to our providing improved services and, ultimately, more value to our customers.

Watch this video of Robert and Todd Duncan reflecting on 60 year of success and innovation at Duncan Aviation. 

 

 

As we look back on our 60th year in business aviation, we are reminded that it is our Core Values and innovative spirit that is the foundation of the culture and the cornerstone of Duncan Aviation’s continued success.

Thank you for helping us celebrate 60 years. We are proud of our family ownership and history of excellence, innovation and responsiveness. We are also truly grateful to have had the opportunity to work with you.

Here’s to 60 more!

Tags: Announcements, 60th Anniversary

Duncan Aviation’s Chuck Zahnow Receives the 2016 AMT Next Gen Award

Posted by Diane Heiserman on Wed, Dec 28, 2016 @ 10:53 AM

Duncan Aviation team members are among the most experienced in the business aviation industry and the quality of the service they provide is among the best in the world. So it comes as no surprise to us when others recognized and acknowledge what we already know. 

Congratulations Chuck on an award well-deserved. 

Republished with permission from AMT Magazine

Zahnow, Charles_SM.jpg39-year-old Chuck Zahnow is an Airframe Technical Representative for Duncan Aviation in Battle Creek, MI. His great uncle worked on aircraft during WWII and he thought that would be a good path to follow.

After high school he attended American Flight and Technology Center, a one-year trade school that has since closed due to low attendance. He has continued his education with aircraft specific training on most of the Citations, Hawker, and Falcon 50 EX and 20 at FlightSafety. Zahnow has also been fortunate in having many people guide him along the way. "I adopted early on that people are always willing to teach, you just have to make yourself available to learn. I have learned from so many I could not begin to list them."

Zahnow started at Zantop Airlines, then went to American International Airways, and from there to Duncan Aviation. He currently works as liaison between the techs on the floor to Textron Aviation (Citation and Hawker) for all facets of airframe maintenance. He is also responsible for managing the tooling needs as it pertains to Textron aircraft and provides additional technical support to techs on the floor as well as external customers. This may mean a phone call, but could also include on-site support.

Mark S. Chaney, senior director, aviation at Coca Cola Bottling Company, says, "Chuck Zahnow has shown a strong commitment to business/general aviation through his incredible work ethic and support of Duncan Aviation customers. I have seen evidence in his support of my company's aircraft as a Duncan customer and reports from other customers. Chuck also serves the industry through his membership on the NBAA Citation 500 Series Technical Committee. I have the pleasure of serving with him as a current committee member and former chairman. He represents his company and Citation operators through a strong personal and professional commitment to safety and product/process improvement. He exceeds all of the qualifications for this award. I expect to see great things for our industry from Chuck in the coming years."

Zahnow is a member of NBAA and its Technical Committee for both the large cabin and small cabin Citation aircraft which helps to better the aircraft for the owners and operators. Duncan Aviation has also given him the opportunity to speak with high school students that are considering aviation as a career either by tours or by visiting with them at a local vocational center.

As for the future, "I have never put a ceiling on my career. I have always considered each opportunity and made a decision that would best serve myself and my family. I have been fortunate to be at a company that recognized and promoted me along the way to get where I am."


Chuck is one among many of whom we are very proud. Meet them all. 

Duncan Aviation Tech Reps

Tags: Airframe Maintenance, Announcements, Careers & Recruiting

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