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Buying an Airplane: Tidbits and Tips

by GlobalAir.com 27. December 2016 16:28
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Buying an aircraft can definitely be a daunting task. Then again it can also be one of those life’s experiences that can be a lot of fun. Of course the main element is financially what can you afford? The other requirement to decide on before you even start is what will you use the airplane for business or pleasure or a combination (otherwise known as the mission profile). These two elements will govern the sensibility of the equation and answer the question are you ready for aircraft ownership. I can tell you from personal experience that just because you love flying and love airplanes does not mean you are ready to own one and the financial risk associated with it.

There are many factors to consider when buying an aircraft least of which is the purchase price. Just as you shop for a car in the beginning it may seem complex with all of the different choices. Though it seems complicated by doing your research and knowing what your mission profile is narrows the choices considerably. Believe it or not it may very well be more affordable than you thought.

One of the biggest mistakes when buying anything is not thinking the whole process through. Yes the purchase price is the largest out of pocket financial risk. But, you must look at the sum of the total. One of the largest “Opps” moments I have ever seen has been when the buyer thinks he has made a steal on the purchase of an aircraft only to find out LATER that they did not do a Title Search on the aircraft and there is a lean (such as a mechanics lean) which cost the buyer thousands of dollars. Folks, spending $100 bucks in the beginning for something as little as a title search could save you big bucks in the end. Never, ever buy an aircraft without having a Title Search completed. It would also be to your advantage to purchase a copy of any 337’s done on the aircraft. The 337 form is what an A&P mechanic must fill in when they have made any structural modifications to an airframe. Generally done when there has been damage or mods done to the airplane.

Speaking of Title Searches and 337’s I would also recommend that you use a Title Search company. These companies based in Oklahoma (where the FAA is) serve many tasks. Not only completing Title Searches most also serve as a holding or escrow company. An escrow company holds deposits, pre purchase maintenance fees and in general the middle man in the transaction. You don’t see a lot of the smaller transactions using an escrow but for the life of me I can’t figure out why. Yes they cost money like everything else in this world but they make sure your transaction is conducted correctly and as smooth as possible (peace of mind).

So we’ve addressed a couple of the pitfalls and the easy button that takes care of them, what’s next. Flight Mission is the most over looked aspect of buying an aircraft and unless you have money to burn for over kill (in this context yes literally kill you) it should be the first thing you look at. Everyone one wants to buy the P-51 Mustang but in reality what would that accomplish. Yes the cool factor is out of this world but when you look at what will I be using this aircraft for and the cost to operate it the P-51 is also impractical. For one it is a deadly aircraft, buying a big motor fast airplane is a bad idea. When you buy an aircraft look at what you will really use it for and what you can fly safely. If you are on a limited budget, pure pleasure and the $100 hamburger then depending on your level of training you might try a Cessna 172 or Piper Cherokee. For the more experienced pilot you might want a little more speed and space you might try a Mooney, Saratoga or Cessna 182.

If your flying is going to be more business with a little pleasure mixed in then you will probably want to look at an aircraft that can fly cross country. The Cirrus SR22 is a nice cruiser at about 200 knots has all the next gen avionics and can carry a couple of guys with luggage 800 miles or so. Probably the Cadillac of single engine piston aircraft will be the Bonanza G36. This aircraft can carry a load so yes the wife, the kids, the dog and just about all the luggage will fit just fine. In addition it has retractable gear so performance and mileage move up the scale also. Remember though these aircraft also come with a price. New out of the factory Cirrus SR22, Bonanza G36, Cessna TTX and the Piper Matrix prices can fly upwards of 700K fast.

Then there are the special mission aircraft. Again you will still need to study what your mission is. For instance in Alaska where you live and die with short gravel runways you need to have Short Take Off and Landing (STOL) capabilities. When you are flying in bush country you generally want to also have tundra tires. Keep in mind these will effect the performance of the aircraft. The Husky A-1B, Cessna 185, Cessna T206 are good for these missions.

So now you have figured out what the mission is. Before you ever sign on the dotted line here are a couple more tidbits that you need to investigate.

  1. Purchase price – Simple, low time aircraft that have been hangered all their life or new overhauled engines are always going to be at a premium. Higher time, with good avionics, new paint and interior will be next in the line of pricing. High time, runout engine (or close to it), steam gauges and god help you if it has damage is at the bottom. Globalair.com has a loan calculator that you can choose your payment and loan percentage points and will calculate an entire payment schedule.
  2. Maintenance – One of the first things to look at is where the aircraft is based. It seems almost every aircraft in its life span has spent some time near a sandy beach. Bad for airplanes, if they have been stationed there for some time corrosion sets in. A loving caring owner will sometimes do undercoating’s or rust prevention, that’s the one you want. Start a maintenance program from the start. Calculate the cost for every hour you fly (cost per hour). Put that specific dollar amount into a maintenance program. Hopefully you will never need it until the engine is ready for overhaul.
  3. Upgrades – Avionics, interior and paint. Every pilot has a favorite color or radio! This boils down to what you are accustomed to and what you feel safe to fly with.
  4. Legal work – purchase agreement takes lawyers, partnerships agreements. As the saying goes pay me now or pay me later. Your choice.
  5. Fuel – generally 30-40 percent of ownership.
  6. Insurance
    • New pilot – fly as much as you can and build your hours up, more time less cost.
    • Old pilot – with no incidents, several endorsements of other aircraft, couple thousand hours, type ratings. All of these bring your insurance cost down.
  7. Hangar cost – Most pilots make this their getaway home.

What to look for in a plane.

  1. Always the first thing to look for is there Damage History?
    • Buying an aircraft is always Buyer Beware. It is your life after all.
    • It is your due diligence (responsibility) to read the airframe log books, maintenance logs, engine logs thoroughly. This is when you bring in your local A&P or an expert in that particular aircraft.
  2. If Damage
    • What you determine is damage might not be to the seller – Define it with them from the beginning.
    • Is there a copy of the 337 form in the log books. If not walk away. Just because it is a line item written in the logs does not mean there wasn’t a ton of other work not mentioned.
    • Was the damage fixed by an authorized manufacture facility, local FBO or field repair.
      • If field, use your common sense, if the repair was a wire tie on a bolt OK, if the landing gear collapsed then oh no, walk away.
    • If the damage was repaired several years ago by a reputable maintenance facility. Then it falls under the category of your call. You will never be able to sell the aircraft for what the market is bearing for one that does not have damage, but if you plan on keeping the aircraft until you quit flying then why not. (Check with your insurance company also).
  3. Current condition – again now is the time you to have a good mechanic with you – pay the price for a good one.
    • Paint and Interior
    • Avionics
    • Current maintenance condition, again checking all logbooks determine how the owner(s) took care of the aircraft. Changed the oil regularly?
      1. Have all AD’s and SD be complied with.
      2. Has annual or other scheduled maintenance be done on regular basis
        • Radios been certified in a while
        • Other instruments needing certs.
  4. Check the engine
    • Compression, compression, compression

So we’ve gone through just about all the basic’s the final step is hit the market and find the aircraft that meets your budget and your eye. There are thousands of different aircraft to look at that fit almost any mission profile. From experimental aircraft to one from the manufacturer. This can be almost as fun as flying itself. Finding a needle in the hay stack is a rare find, but if you keep your wits and shop you can find any aircraft. For those that are a little shy on buying one themselves it is highly recommended to find an aircraft broker that specializes in what you are looking for. The reason for this is twofold. One the broker is always going to know more about the market than you will. Second if you find a brokerage firm that specializes in the type aircraft you are looking for they are also going to know more about that aircraft than you ever will which will come in handy on a pre-purchase.

Now while this article has been written for single engine piston aircraft purchases the general outline can be used for twin piston aircraft also. With jet and turbine aircraft there are a few more precession items such as turbine discs and the number of cycles on the blades that are important. For the most part the cost are higher because these aircraft are made heavier, fly higher and faster. There are also believe it or not worldwide rules that must be completed before you can complete the purchase.

Alan Carr is a thirty year veteran in the general aviation business. Bought and sold corporate aircraft and now runs a successful aviation website. To contact please email alan.carr[@]globalair.com

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Aircraft Sales | Aircraft For Sale

Winter Weather Flying

by Lydia Wiff 15. December 2016 08:00
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As I sit here in Grand Forks, ND, blanketed under over a foot of snow, I think about aviation in the winter, especially at UND.  As a tour guide at UND Aerospace, I think the question I am asked most often this time of year is: do you fly when it’s cold out?  The answer: Yes!  This week’s blog is going to focus on winter flying and a few of my tips to enjoy flying despite the cold.

#1: Plan Your Airports Carefully

During the rest of the year, sans snow, we get pretty comfortable flying into just about any airport.  However, with winter and the cold temperatures it brings, it is important to consider which airports will be the safest.  For instance, metropolitan airports usually have more tenants, more resources, etc., which means if there is snow, they are more likely to get plowed sooner.

In the same way, airports that are more remote and do not have regular services like hangars, deicing, and plug-ins for your engine, should be carefully considered.  UND, for instance, actually has a list of airports that are considered off-limits during the winter because of their location, lack of services, and runway length.  UND recognizes that students may have weather come up quickly during a long cross-country flight and it is important to make sure students are not flying anywhere too remote without a safe place to be. 

Planning for airports with consistent snow removal, fuel services, heated hangars and deicing options is one way to make your winter flying more enjoyable and safe.

#2: Carry a Winter Survival Kit

You probably think that could never happen to me (a hazardous attitude, by the way) – finding yourself stuck in a field somewhere, or making an unplanned departure from the runway with no choice but to wait for hours for help to come.  It may seem like extra stuff to carry, but a winter survival kit could be the difference between freezing to death, and well, not freezing to death.

Some things to carry in that kit: extra socks, extra food, water, flashlight and batteries, heat packs (they are so nifty and fit into your gloves and boots), winter boots, an extra jacket, flares, and anything else you might need.  At UND, once the temperature is below 32 degrees Fahrenheit, students are required to bring jacket, hat, gloves, and boots on every flight.  Now, the aircraft at UND have their own survival kits, but it can’t hurt to carry your own.  The items I mentioned are pretty lightweight and should not affect your weight and balance too much.  However, if weight and balance is your excuse for not bringing a kit on your cross-country, you have bigger issues.  Plus, if you’re not at UND, you should have your own kit anyways.

#3: Watch the Weather

This may seem like a “duh” tip, but seriously, how many times have we gone flying and seen some weather front move faster than predicted?  During the winter, this is even more important as a sudden drop in temperatures can cool off your aircraft way too fast and make it more difficult to start.  It can also mean that airports might close early due a lack to traffic (especially at non-towered airports) or the line crew goes home early.

More importantly, large winter storms, or even blizzards, can dump lots of snow when you least expect.  Checking the weather often before a winter flight is important to making sure you avoid any potential hazards.  If you are on the fence after looking at a forecast, either get a second opinion, or just don’t go.  Putting yourself in a position where you’re not entirely comfortable with the forecast is just as dangerous.

Organizations such as the National Oceanic and Atmospheric Administration (www.noaa.gov) have great resources for forecasting as well as weather reports for airports.  Of course, local TAFs and METARs should be used as well when you’re planning your winter flights.  Additionally, don’t forget to check the airports NOTAMs and the new system of field condition reporting, Runway Condition Assessment Matrix (RCAM).  The RCAM is a new way of giving field condition report which started being used as of October 1st.  There will still be Field Condition Reports (FICONs) issued along with the RCAM, but I would expect the FICON to go away after the 2016-2017 winter season.  The FAA has a great Advisory Circular on RCAM here.

Stay Warm!

Hopefully you’re still excited about winter flying this year – that wonderful, clear air is the best to fly in and the views are spectacular.  Just be sure to give the above tips in mind and you’ll be all set to enjoy flying all through the winter. 

 

Have a winter flying tip?  Leave a comment with your winter flying advice!

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Fixed Based Operators (FBO) | Lydia Wiff

2017 Thoughts - No Recovery Quite Yet?

by David Wyndham 8. December 2016 14:51
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I recently returned from the excellent Corporate Jet Investor CJI-Miami conference. The two-day conference was attend by over 200 financiers, brokers, lawyers, manufacturers, appraisers, consultants and others involved in the transactions of buying and selling corporate aircraft. This includes helicopters, too (see footnote) . There were individual speakers and panel discussions. And way too much good food. Congrats to the CJI team for putting on a great event. Much of the discussion centered around the state of aircraft sales, residual values, and when the "recovery" is coming and where. Here are some things that stood out for me.

Flying is still down. There were three sets of data points supporting this. Jet Support Services (JSSI) has their Business Aviation Index built from the utilization of about 2,000 aircraft flown by their program customers. For third quarter 2016 (2016Q3) flight activity was up 1.4% versus 2015Q3. Sounds good until you see the number, about 29 hours per month, is only 84% of the overall peak utilization. Separating out Part 91 operations showed utilization of 22.5 hours per month - only 270 hours per year. That is not high utilization for the business jet fleet. 

Wingx, using FAA data, was not promising either. They show an average of 101 hours per year for all light jets and 159 annual hours for heavy jets. Not sure how accurate the FAA data is, but trends are trends and they are well off peak levels. Promising is that turboprop and light jet activity is on the rise. 

JetNet's JetNetIQ report also showed increasing aircraft fleet cycles. But total fleet cycles flown this year are only at about 2003 levels even though we have 50% more aircraft in 2016 versus 2003. So we have more business aircraft flying fewer hours and cycles versus peak periods. But flying is slowly increasing. The utilization trend is positive.

Aircraft sales, new or pre-owned, are still flat and pre-owned values overall show no signs of recovering. Several commentators blamed an over supply of business aircraft and buyers in general just not being all that interested in acquiring aircraft.  A couple brokers did note increasing sales activity in turboprops and light jets here in the US. 

Here is a tidbit I got from looking at AMSTAT's data. For business jets globally, about 25% of the fleet, 4,140 jets, is aged over 25 years. Heavy jets are the youngest fleet with only 17% of their number aged over 25. For midsize jets, 24% and for light jets, 33% of the fleet are aged 25 years or older. On the surface, I'd say the time is ripe for those older jet owners to upgrade. Why aren't they doing so in big numbers? 

Data that we see at Conklin & de Decker suggest that as aircraft age, they require increased maintenance to maintain their reliability. This increased maintenance is in dollars and downtime.  As aircraft age, the increase in unscheduled maintenance associated with scheduled inspections also requires a great deal more maintenance down time. Similarly it will take more and more maintenance to achieve any kind of acceptable dispatch reliability. Both detract from the availability of the aircraft for flight operations. Data shows that availability drops from the 95% range for aircraft up to 15 to 20 years of age to an average of 70% at age 25 and 55% at age 30. 

    Aircraft Age        Availability

      0 – 20 years up to 95%

      25 years up to 70%

      30 years up to 55%

By age 30, many aircraft are spending as much time in the shop as being available to fly. Normally this is a big problem and justification enough to acquire younger, more productive, aircraft. But if utilization is low, then maybe this is not such a big deal. The JSSI data are for aircraft under their guaranteed hourly engine maintenance plans. This aircraft are likely to be newer models. Even so, 270 annual hours for a Part 91 business aircraft is not a lot of flying. The Wingsx analysis of the FAA data showing 100-160 annual hours also shows there is plenty of downtime left in the year for scheduled maintenance while meeting g the required flight schedule. 

If operators with these older aircraft are able to meet the flying schedule and they realize the residual value of their aircraft is likely close to spare parts' values, maybe they see little need right now to upgrade. What about FAA NextGen? ADS-B is due by 2020, but for many of these older aircraft with analog equipment, the upgrade may only require a new transponder. If they cannot upgrade, then they might as well fly them until December 31, 2019 and park them. If this is the case for these operators, they may see little benefit to upgrading for another year or two.  

Overall, the general mood at CJI was that things are very slowly improving. But pay close attention to the US. Europe is moribund for business aircraft. As long as oil prices stay low, along with political instability in the Middle East, sales activity there will be slow. Same for Africa.  China and India, although they have the highest rates of GDP growth globally, are growing more slowly than in the past and account for a very small percentage of business aircraft sales. Mexico? Trump, NAFTA, and other trade worries impact there. Brazil's economy isn't promising right now, but Argentina, small a market as they are, is promising. Oceana, another small market for aircraft, is stable. The US has the globe's largest business aircraft fleet. The US, with a pro-business president and Congress combined with the current economic growth that's already underway offers the best hope for the next few years' aircraft sales. 

Personally, I think as 2020 approaches, we will see an uptick in aircraft sales for those aircraft with the ADS-B mods already installed. As supply of these aircraft may be limited, that may help with new aircraft sales.  But given the supply of pre-owned aircraft, that uptick might not be noticeable for another year, or 2018. Food for thought (as if after both Thanksgiving and the CJI buffets I have any room left). 

 

Footnote 1. Most of the helicopter manufacturers are highly dependent on large multi-turbine helicopter sales. Most of those are in oil & gas.  The CJI panel offered little hope for sales unless the price of oil goes up further. However, a recent energy find in West Texas combined the shale oil recovery and fracking technologies getting cheaper point to more land-based oil exploration. Stay tuned.

 

 

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Aircraft Sales | Aviation Technology | David Wyndham | Flying | NBAA | News

Dogs in Aviation

by Tori Williams 1. December 2016 20:05
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Piper the Airport Operations Dog. Image via www.airportk9.org

I recently had the opportunity to adopt a puppy from a local animal shelter. My new puppy is a Shiba Inu with a lot of energy. She’s instantly become a big part of my life (mostly because she’s so needy and needs constant supervision until she’s housebroken) and it got me thinking about how dogs can fit into the wide world of aviation.

Most people think of the pain of traveling with animals when they think of bringing animals into aviation. However, there are several ways that dogs have been brought into aviation to do a job or accomplish a mission. I have collected some of the most fascinating examples of these dogs and I would like to share them with you.

Airport Operations Dog

A video went viral a few months back featuring Piper the K-9 Wildlife Management Specialist at Cherry Capital Airport in Michigan. The dog works closely with his Operations Specialist owner who drives him around to chase away any wildlife that is a hazard to airport operations. Wildlife can be a huge problem at airports, and sometimes using flares and traps isn’t enough. He appears to love having such an important job, and getting to run around chasing his natural enemies away must be rewarding as well.

Airport Security Dog

I have encountered airport drug sniffing dogs several times during my travels. These large, serious-looking dogs walk up and down the lines heading towards TSA. They have a mission to find drugs or hazardous materials that passengers may be trying to smuggle past security. They are extremely good at their jobs and help add an extra layer of protection to the airport with their superior sniffers.

Lost and Found Dog

Another viral video sensation, which unfortunately turned out to be staged, featured the adorable beagle named Sherlock who returns lost items to passengers on KLM. The PR stunt was done incredibly well, as the majority of people who saw the video (myself included) were completely convinced that dear Sherlock was a real full-time employee of the airline. Although the story was not 100% true, I could totally see a dog with an excellent sense of smell and memory being able to do that job.

Airport Stress Relief Dogs

As I mentioned in my previous article about stress relief, an even increasing number of airports are having volunteers with stress-relief or emotional support dogs come to greet passengers and hopefully make their days a little better. These furry friends help anxious passengers feel calm and comforted. I believe this is an incredibly valuable service, especially during the holidays when passengers who do not regularly fly are on their way to family and friends.

Additional Note on Taking Your Dog Flying

One of the things I was most excited about when I got my new puppy was being able to take her with me to fly-ins during the summer. Thankfully she does great in car rides so I am hoping this will translate to her first plane ride as well. AOPA has a wonderful article outlining tips for flying in your general aviation plane with your dog. It discusses restraints, food and water, motion sickness, oxygen, hearing, and traveling with your dog outside of the U.S. I highly recommend reading it in its entirety before you take your dog for a plane ride. Being safe and knowledgeable will make the flight all the more fun for you and your dog!

I hope this list has helped you see that integrating dogs into aviation can be beneficial and amazing for airports and the dogs themselves. There are a lot of opportunities for well-trained dogs to make a difference in the world. Aviation is a great field for it!

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Airports

An Introduction to Airport Insurance

by Lydia Wiff 1. December 2016 10:00
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Insurance can be defined as “peace of mind” (Wild, 2016).  It protects an insured against a loss on their investment, whether this be a car, house, an aircraft, or even an airport.  However, insurance does not just exist to protect assets or people – it can be argued that insurance offers social values as well.  These social values integrate into our economy in a variety of ways including security for personal and business situations, a basis of credit for businesses, aid in the development of the economy, reduction of costs, and protection that is affordable to the insured (Wells & Chadbourne, 2007).

While insurance may be required for such assets such as automobiles, airports are not technically required to hold insurance coverage.   The following section will discuss the legal requirements for airport insurance.

Airport Insurance Coverage Requirements

It is important to point out that while an airport is not required by the Federal Aviation Administration (FAA) to have insurance, the legal ramifications if an airport does not possess coverage are severe.  The sheer cost of a slip-and-fall a passenger might experience on a premises including the medical bills, lawsuits, etc., are more than enough to convince an airport to purchase a variety of coverages for their premises.  Slip-and-falls are not the only risk – the possibility of fuel spills, vehicle accidents, equipment malfunctions, aircraft accidents, and more are enough to lose many nights of sleep over.

When examining the rules and regulations put forth by the FAA, there is not specific wording that requires insurance for airports.  However, airports that are planning to apply for federal aid through the Airport Improvement Program (AIP) would be remiss not to have insurance already on their premises.  AIP money is usually given attached to several conditions precedent such as having a variety of insurance coverages. 

Liability when an accident or incident occurs in addition to the possibility of losing federal grants are strong points when discussing why an airport should carry insurance.  The types of coverage an airport can purchase are discussed in the next section.

Airport Coverage Types

Unfortunately, unlike automobile insurance, airports do not have a “one size fits all” type of coverage such as Full Coverage.  Airports, by nature, offer a variety of services depending on the classification of the airport.  If an airport is classified as Part 139, an airport offering scheduled commercial service, the coverage would range from aircraft operations on the field, fueling, to coverage for slips-and-falls.  

One type of coverage an airport can purchase is that of Airport Premises Liability (APL).  The purpose of this coverage is to protect the owner (or operator) of the airport from loss due to liability from the maintenance or use of the airport, operations at or away from the airport, elevators, and escalators (Wells & Chadbourne, 2007).  According to Wells and Chadbourne (2007), this particular coverage includes all of the ordinary hazards on the premises including those caused by aircraft, except: “1) aircraft owned by, hired or loaned to the insured; (2) aircraft in flight by or for the account of the insured; and (3) air meets, contests or exhibitions” (p. 190).  APL can be seen as a general liability coverage for an airport – there are other more specific types of an APL depending on the size of the airport. 

The APL generally uses one of the two basic liability forms: owners’, landlords’, and tenants’ (OL&T) or comprehensive general liability (CGL).  OL&T is considered the more restrictive of the two and is not used as often in the industry.  Smaller airports, small and medium sized Fixed Base Operators (FBOs) and concessionaires usually purchase this type of APL.  Besides OL&T, the more commonly used APL is that of CGL.  CGL is more inclusive that OL&T because it covers new exposures that may have been acquired after the policy’s inception.  Because it has a feature providing coverage for “unknown hazards”, it is distinguishable from OL&T and it is the most complete airport liability policy on the market.  CGL itself covers product and completed operations liabilities, coverage for independent contractors for construction and demolition, liability coverage for contracts, liability coverage for personnel and advertising, and hangarkeepers’ liability – these will be discussed in the next section. 

A recent airport premesis accident at KSMP - I wonder how this accident is covered under their insurance and if LSG Sky Chefs will take most of the blame or if the airport will pay out as well?

CGL Coverage

In CGL, each section of coverage covers a variety of operations at an airport, FBO, or concessionaire.  Product and completed operations liabilities can be defined in two aspects.  Completed operations cover aircraft repairs and services, which includes the installation of parts or accessories.  Product liability covers the insured for liability that would result from an injury to consumers of a defective products or from completed operations.  

Coverage for independent contractors for construction and demolition covers extension of runways, building new runways, demolition or alteration of existing structures, new hangars, buildings for administration, or maintenance shops.  An underwriter will require information on the duration and extent of operations contracted as well as costs of the contract.

Contracts liability coverage is probably the most diverse type of coverage under CGL as any given FBO, concessionaire, or airport might hold a variety of contracts for services.  Because of wide range contracts for gasoline, oil, fuel, etc., companies generally will not offer a blanket coverage and instead will only approve contracts specifically designated by the company.

The next type of coverage under CGL is that of liability coverage for personnel and advertising.  Personnel injury liability protects against claims including intentional torts – this covers false arrest, detention, malicious prosecution, libel etc.  In the past, this coverage was only available to major airports, but is now a part of the CGL form, or under the OL&T form with endorsement.  Injury from advertising liability covers offenses from slander or libel for a person or organization in oral or written publication – this includes coverage for products or services or the violation of the right to privacy.  Additionally, it protects from misappropriation of advertising ideas, style, or infringement of copyrights, titles, or slogans.

Lastly, hangarkeepers’ liability protects airport owners and operators, FBOs or maintenance and repair facilities.  This coverage, in essence, a form of bailee insurance.  It covers liability from loss or damage to an aircraft held by others, or in custody of the insured for safekeeping, storage, repairs, or while on the premises of the property of airport owners, FBOs, etc.  It is important to note that the basic coverage of hangarkeepers’ liability does not cover the aircraft in flight.  This can, however, be added to a policy through an endorsement.

Now that the most common coverages under CGL have been discussed, the author will discuss different companies that offer airport insurance.

Specialty Insurance Companies

As airport services is a complex field, there are a few companies that specialize in offering coverage for them.  Two companies will be discussed: United Sates Aircraft Insurance Group (USAIG) and Aviation Specialty Insurance. 

USAIG is company that is actually a pool of member firms (an example of spreading the risk).  It has received high ratings over the last several years and has been using the pool arrangement for the industry since 1928.  One of its coverages offered is that of Airport Liability which extends coverage for private and FBOs.  The coverage they offer includes premises, products/completed operations, contractual, personal injury, premises medical payments, and hangarkeepers’ liability – these are essentially all of the coverages under a CGL.  Additionally, if a client wants endorsements, the company will offer this on a case-by-case basis. 

Aviation Specialty Insurance (ASI) is a company that has over 80 years to combined experience to offer its customers.  Their coverage ranges from airports to drones and Unmanned Aerial Vehicles (UAVs).  ASI offers much of the same airport coverage as USAIG, but with some unique additions.  Workers Compensation, Fuel and Fuel Farm/Truck, Pollution, and Rental Car Coverage are just some of the things they offer that USAIG does not.

Conclusion 

In closing, airport insurance is a complex subject.  When examining liability, there are many liabilities an airport should consider when looking at insurance policies. While this paper only covered a few aspects through CGL, there are several other coverages an airport or FBO can add depending on their organization.  Insurance is very scalable which allows for each organization to find the best fit.  Additionally, there are several companies that offer CGL including several specialty endorsements to fit each airport or FBO.  Overall, airport insurance is a complex subject, however, the consequences are far greater than if an airport did not take the time to properly insure its premises.

References

Airport Liability. (2016). USAIG: United Sates Aircraft Insurance Group. Retrieved 21 November 2016, from https://www.usau.com/caf_coverages_airport_liability.php

Airports | Aviation Specialty Insurance. (2016). Aviationspecialtyinsurance.com. Retrieved 21 November 2016, from http://www.aviationspecialtyinsurance.com/airport-insurance/

Images retrived from www.Google.com on 28 November, 2016.

Introduction to Aviation Insurance and Risk Management. (2007) (3rd ed., pp. 189-201). Malabar.

Introduction to Aviation Insurance and Risk Management. (2007) (3rd ed., pp. 68-69). Malabar.

Wild, Brandon, Assistant Professor, University of North Dakota, Aviation Insurance, Lecture, Fall 2016.

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