The Business Jet

The warnings are out there, that if you do not act soon, your jet may be grounded by the end of this year, 2019.

This is due to the requirement to fit ADS-B Out surveillance technology by January 1, 2020. ADS-B is a Automatic Dependent Surveillance – Broadcast, as defined by the FAA in requirement 91.227

Dependent on the aircraft model this could cost in the region of $200,000, to complete.

There is a wider impact to ADS-B, that is the general business market. The requirement to fit ADS-B Out surveillance technology is driving some away from purchase of pre-owned older aircraft, into newer or new business jets.

That in turn is making it much more difficult for owners and brokers to sell older pre-owned business jets.

Shearwater Aero Capital, the business jet lending specialist, is quoted as reporting that up to 3,500 older private jets could struggle to secure new financing when their existing loans and leases expire, leaving a $10 billion funding gap.

The “dilemma” facing some business jet owners is whether to “stick or twist”, as-in hold onto their current jet and install the mandatory ADS-B Out surveillance technology and undertake the subsequent maintenance inspections, or trade and buy new. The cost of installation, inspection and any required maintenance overhauls could come close to a business jets total market value, depending on model, specification and age.

This issue is facing those especially that have a business jet valued under one million dollars against the cost of ADS-B Out and any cost of upcoming maintenance inspections or overhauls.

It is clear for many; this is an unexpected bill even though the industry has been talking about this for some time. Any private or business jet aircraft management program or manager, or maintenance program worth its value, should at some point have mentioned or marketed the need for ADS-B Out for private and business jets.

1 January 2020 is not far away, nor is the issue facing those operating, or wanting to operate without it.