Doing exactly what customers want can be exciting, if a bit challenging. However, every time they have asked, we have answered in a big way.

During a pre-buy inspection, one of Suzanne Hawes, Senior Sales Representative for Completions and Modifications in Battle Creek, Michigan, customers told her he wanted the Falcon 900 cabin seating reconfigured from 14 seats to 17. He also wanted to drop the overall weight of the aircraft so the round-trip customer flights he was planning could be completed with no fuel stops.

The reconfiguration required an STC (Supplemental Type Certificate), and Suzanne says team members from Engineering, Airframe, and Interior met with her, Project Manager Rich Jones, and Designer Ken Reita almost daily to compare notes and ideas after the initial meeting with the customer, his wife, and his aviation department.

“We had spreadsheets that we updated regularly with the weight of every single item, including coffee containers and life rafts, on that aircraft. We even took out the carpet and weighed it!” says Suzanne. “We pored over that interior, coming up with savings, ounce by ounce.”

In the last few months, Doug Roth, Aircraft Sales Representative for Duncan Aviation for 29 years, has been asked many times about the effect an ADS-B (Automatic Dependent Surveillance-Broadcast) upgrade has on the value of a business aircraft when it’s sold. The deadline for the FAA’s mandate is about 30 months away, and owners are weighing their options: Upgrade or sell.

Prospective buyers are weighing their options, as well. Time is money for flight departments, so an aircraft that’s already equipped with ADS-B is attractive, too, because it won’t require additional downtime for the installation.

Doug says unequivocally that the value of an aircraft right now is directly related to whether it has ADS-B.

“It’s dollar for dollar,” says Doug. “If you have upgraded your aircraft, you will get back every dollar you spent on the upgrade to make the aircraft ADS-B compliant. For instance, if you have a newer model aircraft and have gone with the high dollar upgrades, such as WAAS/LPV capability for the GPS so you can take advantage of the lower approaches, you will recoup every dollar you invested if you were to sell that aircraft in the current market.”

By the same token, if you have not yet brought your aircraft into compliance, the sale price will be set back dollar-for-dollar based on the amount the upgrade will cost the prospective buyer.

“It doesn’t matter if you have a newer model aircraft or one that’s nearing the end of its flight time, if you plan to sell your aircraft without the ADS-B upgrades, you will lose dollar-for-dollar the cost of the upgrade,” says Doug. 

There can be more than one path to upgrade, and which one you choose depends on a number of factors.  If you intend to fly your older model aircraft that has about 5 years of life left, you might want to opt for one of the least expensive solutions.

If you’d rather try to sell your older model aircraft now, you’ll need to deduct the cost of the ADS-B upgrade plus any related labor costs from the sale price of your aircraft.

This is true, too, for a newer aircraft that has many years of flight time remaining. Buyers who make a substantial investment to acquire a newer model aircraft will still need to turn around and spend more to get the aircraft in compliance with the ADS-B mandate.

Doug suggests that anyone who’s thinking of selling an aircraft without the ADS-B upgrade to remember how the market reacted to aircraft without RVSM (Reduced Vertical Separation Minimum) when that was mandated.

“When RVSM came out, the cost to install was a dollar-for-dollar direct value adjustment to the value of the aircraft. Before it was required and we knew it was coming, everyone was budgeting for the expense whether you owned the aircraft or were looking to buy one that did not have it installed,” says Doug. “I remember selling one aircraft right in that time period without RVSM because it was not yet required in the US. The sale price was less the cost of the upgrade, and after the prebuy, the buyer had us install it at their expense before delivery.”

The buyer would have paid more for the aircraft if RVSM had been installed, and he could have avoided the extra downtime necessary for the installation.

Were you aware an important Airworthiness Directive is coming due at the end of the year? How about how what could cause your transponder to reject the beacon signal from Air Traffic Control?

No? Then you haven't read the April issue of the Duncan Intelligence. 

April Duncan Intelligence

Corrosion Does Not Discriminate Corrosion doesn’t care what make/model business aircraft you have or how many flight hours it sees. All it cares about is getting its start and hoping you are not paying attention. TFE731 Engine Airworthiness Directive Compliance Coming Due in October 2017 To be eligible for any OEM warranty consideration, affected engines need to comply by October 1, 2017. Aircraft Compass System Alignment Formulae If you replace or change the magnetic compass or components on your aircraft’s compass system, it is appropriate to swing the compass to verify or align it to minimize errors. TDR-94/94D Common Failures: Transponder Off Frequency If the transponder on your business aircraft is off frequency, it could begin to reject the beacon from ATC. Flat Rate Exchanges Help To Avoid Over and Above Charges 0xygen masks are an accessory that we hope we never need. But if the cabin pressurization system fails and our altitude is above safe levels, we really want those masks to work correctly.   Duncan Aviation’s Kansas City Shop Upgrades Gulfstream G150 for ADS-B  Read more.   Duncan Aviation Main Facilities Currently Performing Global Pre-Purchase Evaluations Read more.

The Duncan Intelligence is a free, technical newsletter for business aircraft owners and operators. Written in-house by Duncan Aviation's technical representatives, each edition includes technical tips and advice on topics and trends in business aviation. It is a free, monthly e-mail subscription for aviation enthusiasts around the world.

Inspired by the owner’s preference for a sleek, modernized interior and a flair unique to his tastes, Duncan Aviation Senior Designer Mary Lee transformed the interior of this Bombardier Global Express from its traditional, outdated neutral environment into one of contemporary luxury.

In order to capture his vision of a sporty yet sophisticated environment, the design concept began by incorporating blue carbon fiber and silver metallic painted cabinetry in place of traditional wood veneer.

After walking up the Duncan-Aviation-designed stainless and neoprene entry steps, you see the first stunning feature: the custom blue LED-illuminated wine cabinet.

The owner’s passion for fine wines and gourmet cooking became an inspiration for the final galley design.

As you watch the video below, note the unique features and details throughout the aircraft. The angled touch-screen bezels and chrome inlays, for example, were designed and manufactured by our in-house fabrication team.

The blue LED-illuminated cup holders are also an exclusive Duncan-Aviation design and were incorporated into the drinkrail to complement the ambient blue floor lighting.

The blue carbon fiber served as the unifying element to achieve balance throughout the cabin and the focal point on the bulkhead dividers.

If you would like to see what this Bombardier Global Express looked like before this transformation, read the Fall 2016 Duncan Debrief article.

Duncan Aviation estimates that roughly 6,000 of the business jets in its core customer base still need ADS-B. That paints a pretty urgent picture of the industry. However, when you consider that ADS-B affects ALL aircraft, it's an even more dramatic picture. The number of U.S.-based turbine aircraft that still need ADS-B is closer to 11,000 and the number of all U.S. aircraft that still need ADS-B is closer to 74,000.

Brian Redondo, Duncan Aviation's Ft. Lauderdale Satellite Shop Manager, explains why he is concerned about the shortage of qualified installation labor.

"During the RVSM mandate compliance phase, shops performing RVSM installations could hire technicians from other shops that were slow because their core customers were not affected by the mandate. That won't be possible with ADS-B because every installation shop will be performing these installations for many years to come. And honestly, there is already a shortage of skilled labor as it is."

Operators need to begin looking at their paths for compliance and schedule the work needed, and soon. This video will highlight some of the key figures about why you need to be thinking about your upgrade now.

It always amazes me just how many people are caught out when they make the decision to sell their business aircraft, but when you look at the array of specialists offering to support the sales process, it is hardly surprising.

It’s often said that in excess of 80%, as many as 85% perhaps, of all business jet sales transactions involve an appointed broker, so my primary focus here is to help guide you through this selection process.

A professional broker should be a trustworthy and knowledgeable individual or organisation with excellent industry relationships and history. Ideally, they should not have any ownership interest in the aircraft (unless they do actually own it) and should be willing and able to provide a wide range of support. The following list is by no means exhaustive but is a useful aide memoire when you are speaking with a prospective broker.

Firstly, are they a broker or an intermediary?

There are many individuals purporting to be brokers who are best termed as “intermediaries” and whilst these individuals fulfil a purpose, it’s important to realise that they are not the ones overseeing your transaction. In fact, they will then take your aircraft to their “partner,” a specialist aircraft broker, who will manage the sale for them. However, they will have been squeezed on their fee. Whilst such arrangements can work, you may possibly have been better off paying your entire fee to the broker to focus his attention even more.

Ensure the broker is actually selling aircraft they have inspected?

In fact, it’s actually the records that are perhaps more important, so make sure that they intend to review the facts rather than selling “blind.” When an aircraft is marketed without this thorough check being undertaken, the chance of the deal falling over is likely to be significantly higher. Equipment lists need to be verified, maintenance status fully understood, confirmation of no damage history or indeed understanding the repairs or replacements that were undertaken if there has been an incident, how good is the paint and interior, and so on. In my experience, just about every aircraft owner believes their aircraft is the best one available, so it’s a good idea to have this verified.

1999 Gulfstream GIVSP currently available. Click on photo for more information. 

How much support is the broker going to give your aircraft in what is a very overcrowded market?

Make sure that the advertising commitment is sufficient. There are many advertising portals available, but are they hitting page one of Google? A presence on their own website simply won’t be enough; they need to commit to pay for display on the likes of Controller.com and AVBuyer.com throughout the marketing process. If not, your aircraft will be largely invisible to buyers.

Also check to see whether they are planning to run print media adverts in the leading aircraft sales journals. These are still an important source of leads as prospective buyers peruse such magazines in FBOs or on board their aircraft.

Are they innovative?

Increasingly, social media is an important tool in the sales process, so do ask what they are doing and then check it out by reviewing their online presence.

Also, take a look to understand what they have done for their clients’ aircraft through the use of creative press. Getting your aircraft placed into editorial media can be very rewarding and a major contributor to a swifter sale.

Are they proactive?

It is important that your aircraft is listed as being “for sale” on the trade databases AMSTAT and JetNet but you’ll be in the very lucky minority if this alone finds your buyer. Such tools, whilst vitally important for the trade, won’t get your aircraft exposed to the retail buyer. Any promise of “global databases of buyers” won’t be enough in isolation; you’ll need advertising, networking, telesales, social media and so on.

How many people/offices do they have to commit to the sales process?

Generally speaking, you will be better served by a team rather than an individual. And you’ll be even better served by a team that has vital connections to technical data like avionics upgrades, interior options and maintenance schedules. Sometimes, the slickest websites are run by a lone broker operating from a spare bedroom of a suburban semi, whilst purporting to offer a global network. Verify this by checking the facts; check out the other offices, the other individuals, look at their online and print advertising to see what other aircraft they are selling, and so on.

Don’t be afraid to ask for references from satisfied clients.

Check their core activity

One phenomenon that you may have encountered is the existence of the extended chain of brokers and intermediaries. One contributing factor here is that some brokers are unable to secure their own exclusive mandates and therefore focus their attention on assisting with another broker’s sale or purchase.

It is usually safe to assume that the longer the chain, the more brokers or intermediaries are involved and as a consequence there is more chance that the deal may fall over.

Brokers who have exclusive mandates have every reason to give your aircraft 100% focus because they know that when they are successful, they will be paid. A non-exclusive broker will sometimes lose interest in your aircraft once they realise that it’s not going to be a quick deal or that there are too many other brokers punting it around the market.

Pay them only when they have performed.

Very occasionally you may find a broker seeking an element of upfront payment, but this is not the norm in the industry. Typically the agreed commission is settled from escrow, upon completion of the sale. However, if you have driven a particularly tight deal, then the broker may seek a compromise of payment for their travel to inspect the aircraft, usually with this sum discounted from the final commission.

With purchase mandates, it is normal for an element of the commission to be advanced.

Who is overseeing the sale process in your office?

From time to time, we come across situations where the appointed representative for the sale of an aircraft is feeling vulnerable and therefore doesn’t provide all of the support and cooperation the principal assumes is being offered. The sale of an aircraft can often unnerve the individuals closest to it – pilots/crew, management companies, maintenance technicians, and so on – particularly when there is no clarity about a replacement. So, make sure that you don’t create such a conflict.

How many competing aircraft do they offer?

Much of my attention so far has been to ensure that you choose a credible partner but at the other end of the scale, where you are working with a known market leader, take a look to see how many similar aircraft they are currently offering. Ideally, you don’t want to be the oldest, highest hours or the most expensive of the 4 “identical” aircraft that they are selling at any point in time.

Exclusive or non-exclusive appointment?

Some owners believe that by giving their aircraft to multiple brokers they significantly increase the chance of it being sold or perhaps that they are getting better value for money, but this is rarely the case. The right broker exclusively mandated will give 100% to achieving a sale and protecting the online presence of your aircraft by preventing secondary, unauthorised marketing. With multiple agents working for you it is hard to retain control and before you know it, someone that you have never heard of is purporting to represent the aircraft but is offering it at a price well below what you would accept. This is not something that will ultimately benefit you or your aircraft.

As for the value for money, the actual commission paid out to either broker will broadly be the same, so you just as well focus your efforts on working with the right partner.

Follow these steps, make sure that you have a leading aviation lawyer, take good tax advice (as appropriate), be realistic in terms of pricing and disposal timetables and there is no reason that your aircraft sales experience won’t be a positive one.

Whether buying or selling, getting the right support is key to the success of your overall experience. 

Tim Barber recently joined Duncan Aviation’s Aircraft Sales and Acquisitions team, representing clients in the European, Middle Eastern and African markets. You may reach him at +44 2032 8789 86, +44 7836 352 676 or on SKYPE tim.r.barber. On Twitter https://twitter.com/Tim_bizav and LinkedIn https://www.linkedin.com/in/timbarber2.

The Aircraft Sales & Acquisitions team is backed by a vast number of resources. Duncan Aviation touches every part of an aircraft and the company has first-hand knowledge of how corporate flight departments function to further business goals. Clients who work with the Duncan Aviation team have access to the entire spectrum of knowledge and experience that the company’s 2,200 team members located worldwide provide. Since inception, Duncan Aviation has undertaken more than 3,250 aircraft transactions. In addition, the company services more than 2,000 aircraft per year.

Duncan Aviation set out once again to make its presence and services known to the larger helicopter world at the 2017 Heli Expo in Dallas, Texas.

Just like 2016, we were greeted with enthusiasm, professionalism, and curiosity. But two things stood out to Ken Hurd, Duncan Aviation Accessories Technician that made this year’s show different.

1. A Lot More People

“This year's show was promoted as bigger than ever, and the size of the crowds seems to confirm the show as one of the best attended.”

2. More People Recognized Duncan Aviation

“During the show we were more widely recognized as a company that supports rotor wing accessories and avionics. Attendees visited the Duncan Aviation booth and shared their ideas on how we could take advantage of our impeccable reputation and abilities in the business aviation industry to expand our presence in the helicopter industry.”

Although we have been Heli-Expo attendees for several years, 2017 is the second year we had a show booth with team members representing areas that often touch helicopters or helicopter components. These areas include component repair and overhaul, parts sales and exchange, as well as the Government and Military contracts.

“I didn't know Duncan Aviation worked on helicopter components” was heard over and over again during the show. While it is true Duncan Aviation’s history is firmly grounded in the fixed-wing industry, we have been working on helicopter avionics for decades and the business is growing. 

Read about Duncan Aviation in the 2017 HAI Insight Magazine

According to Karl Detweiler, Duncan Aviation Components Business Development Manager, several attendees and exhibitors were glad to see Duncan Aviation expanding into helicopter components. “They expressed the need to have more long-term stability in the available service shops. To them, Duncan Aviation represents stability and quality."

Since purposefully promoting the Duncan Aviation helicopter component business in 2016, the projected growth for 2017 has a positive outlook. In fact, by the end of Heli-Expo, every Duncan Aviation representative found new helicopter business for the company to add to its already expanding portfolio.

We will continue to work hard and continue to build our reputation into the helicopter industry.

The business aviation industry has been talking about Automatic Dependent Surveillance-Broadcast (ADS-B) for the last decade, and the January 1, 2020, mandate deadline is coming fast. It is now time for aircraft owners and operators who want to avoid inconvenient circumstances to finalize their ADS-B compliance plans.

What is ADS-B?

In May 2010, the FAA published its final rule mandating ADS-B Out, with the goal of making crowded skies safer and more efficient. ADS-B is a relatively new technology that provides Air Traffic Control (ATC) with precise, three-dimensional position data. Pilots in equipped aircraft have access to air traffic and weather services that provide a new level of safety, better situational awareness and more efficient routing.

ADS-B transmissions include position, altitude, velocity, aircraft identification and other information and are more accurate than ground-based radar.

The ADS-B Out mandate requires all aircraft operating in the US airspace to have a certified GPS position source paired with a transponder capable of transmitting data from the aircraft without prompting from the pilot or a request from ATC.

What If I Miss The Deadline?

If your aircraft is not ADS-B compliant by January 1, 2020, it will, unless you plan to fly below 10,000 feet and avoid Class A, B and C airspace, be grounded.

Post-mandate, and on a case-by-case basis, ATC may give permission to relocate the aircraft in order to have it modified for compliance with the mandate. You’ll then be notified that the aircraft is grounded until it complies.        

The Myths of ADS-B

We are seeing an interesting industry trend. Nearly 9,000 business aircraft need ADS-B. Roughly one-third of them are in compliance. So 6,000 more need to upgrade. With the deadline roughly 34 months away, more than 175 aircraft will need to be upgraded each month. Yet many operators are waiting. Those who continue to wait will face scheduling pressure and higher installation costs. Yet many unfortunately believe several myths currently circulating.

• There is plenty of time.

Those in the industry need only think back to 2005 and the RVSM mandate. Capable avionics installation facilities were at capacity 24 months before the mandate and for a full 12 months AFTER the mandate. ADS-B installations are similar to RVSM (Reduced Vertical  Separation Mimimum) installs in complexity and downtime.  Make no mistake.  There simply isn’t enough capacity in the industry to complete the number of modifications required.  There will be aircraft sitting and waiting for modification after January 1, 2020.

• The deadline will be extended.

I feel confident in telling customers that the deadline will not be extended. FAA Administrator Michael Huerta and other FAA and industry leaders have consistently gone on record several times saying the mandate deadline will not change.

• The prices will drop.

Installation shops and aircraft manufacturers have collaborated, and owners now enjoy a wide array of choices and price points for equipping to meet the mandate.  I am sure that with supply and demand for equipment and labor, prices will only increase as the mandate deadline moves closer.

• The aircraft will be sold.

For most models, the preowned business aircraft market is still very buyer-oriented. If you don’t upgrade to ADS-B before the sale, the price you will be able to ask for your aircraft will be significantly less than if it had ADS-B.

Be Informed

I feel that we, as leaders in the business aviation community, have a responsibility to inform and provide a solution we are capable of providing.  I don’t share this information to scare operators; but I remember the RVSM days well.  We fielded lots of calls from owners who wanted immediate input, and I was unable to help. I want to make sure owners and operators understand the risks they take by not having an ADS-B compliance plan--now.

As originally appeared in the March/April 2017 issue of Business Aviation Advisor

Have you heard about the Honeywell HTF7500E Stator Vane Seal Inspection Program? How about the cause behind those intermittent software failures on your Avidyne EX-500 MFD? 

No? Then you haven't read the March issue of the Duncan Intelligence. 

 March Duncan Intelligence

Falcon 7X Flap Rigging Precautions  Caution is needed when rigging the flaps on a Dassaut Falcon 7X aircraft. ADS-B Solution for Bombardier Challenger 800/850 SE Aircraft  This was an industry-first installation in the United States and was performed in the customer’s hangar. Honeywell HTF7500E Stator Vane Seal Inspection Program  This inspection program is applicable to the HTF750E model engine. Why Is My Avidyne EX-500 MFD Experiencing Intermittent Software Failures?  Completing a proper shutdown every time will prevent this. Got a crack in your APU Exhaust Support? Don’t Replace It. Repair It.  Duncan Aviation has AWS D17.1 certified welders and inspectors on-site, all capable of welding all types of materials for aerospace applications. The NBAA Tech Committee Wants To Hear From You Progress can only be accomplished if we have regular interaction with and feedback from you, the Citation operator.

Get The Duncan Intelligence In Your In-box

The Duncan Intelligence is a free, technical newsletter for business aircraft owners and operators. Written in-house by Duncan Aviation's technical representatives, each edition includes technical tips and advice on topics and trends in business aviation. It is a free, monthly e-mail subscription for aviation enthusiasts around the world.

For the Honeywell HTF7000 series engine model, there are a number of Service Bulletins that have become hot items. These can be accomplished at our Turbine Engine services shop in Lincoln, Nebraska, or any one of our Engine Rapid Response locations across the United States.

SB AS907-76-9021

Issued on May 13, 2016, this SB addresses the possibility of water entering the ECUs (Electronic Control Unit) after the aircraft is parked in the rain for an extended length of time. This may lead to unscheduled maintenance and expenses, aircraft dispatch delays, Loss of Thrust Control (LOTC) events and the possibility for inflight shut downs.

This is a CAT 1 SAFETY SB meaning it may require urgent action and may be associated with an FAA AD (Airworthiness Directive). Compliance is recommended to be within 400 engine operating hours or 18 months from the date the SB was issued.

This SB is relevant to the following aircraft:

• Bombardier Challenger 300/350 (HTF 7000/HTF 7350)
• Gulfstream G280 (HTF 7250)
• Embraer Legacy 450/500 (HTF 7500)

SB AS907-72-9064

This SB was issued to address instances of corrosion and pitting found in the inner and outer bypass ducts and supports. This SB will inspect and evaluate the corrosion and pitting of the FWD and AFT Ducts as well as the Core Cowls. If corrosion is noted, we will perform a repair to add a coat of paint as a preventive barrier for future contamination.

Because this SB requires the removal of the forward and aft outer fan bypass duct(s) and mid and aft inner fan duct panels, it should be scheduled during a maintenance event that will have the aircraft down for 7 to 10 days. I recommend accomplishing SB AS907-72-9044 at the same time, if applicable and you meet the required interval per the bulletin. Another good time to schedule this bulletin is during a 4000 hour digital borescope inspection. If repairs are noted from the borescope, most of these ducts and panels would be removed for the repair of the hot section components.

The SB applies to the following engines:

• AS907-1-1A (Bombardier Challenger 300)
• AS907-2-1G (Gulfstream G280)
• AS907-2-1A (Bombardier Challenger 350)

SB AS907-72-9044

The SB replaces the engine combustion chamber assembly. I recommend you have this SB accomplished at the same time as the previous SB mentioned (SB AS907-72-9064), if applicable and you meet the required interval per the bulletin. Most of the same panels and ducts need to be removed for both.

SB AS907-76-9013 W5

This SB changes the location of the W5 & OSSD (Overspeed Shutoff Detector) wire harness to increase its reliability and prevent failure in the high-heat environment in the engine.

Honeywell Engine Technical Support

Shawn Schmitz

Engine Technical Representative

+1.402.479.8166 office

+1.402.730.8767 mobile

Shawn.Schmitz@DuncanAviation.com