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What happened to the allure of the airlines? From Pan Am and the 747 to today.
From flying the 747 on Pan American Airways during the Golden Age of Aviation to the high-density configuration of modern airlines, what happened to the way we fly?
October, 2017
I arrive at Houston Intercontinental airport for an 8AM flight to Denver. Although I have Global Entry, which allows me to utilize the TSA Pre-check lane, the line through security is moving as slow as molasses and takes half an hour to get to the security checkpoint. Then the dreaded high pitch beep of the metal detector rings loud for all to stare and wait on me as I’m patted down by a disgruntled and exhausted security worker. Once he is done violating my dignity at 6:45 in the morning I head to the United Club to seek some solace, coffee and a quick bite to eat. However even in the one area of the airport where there may be some reprieve I find none, the food left out for us “Club Members” is stale and the coffee, burnt. To add insult to injury all comfortable seats are taken by shabby jet-lagged travelers or families whose kids are turning common areas into playgrounds, so I’m forced to take residence center stage at a particularly awkward table next to the oatmeal bar. All I can think is -
“what happened to the allure of flying commercial?”
Take a step back in time to 1970, Pan-Am took a giant leap towards a more accessible world with the inauguration of the “Queen of the Skies”, the Boeing 747. The 747 was a game changer, an aircraft so iconic and extraordinary that it has remained in production for almost half a century. Embarking on a flight from New York to London was far more than just a couple movies to watch and a decent meal.
These were the days when the world was excited to fly.
Teague
The 747 boasted not only incredible leg room and seat breadth, but style, luxury and an experience worth talking about. Upper cabin bars, full in-flight dining, couches and lounges galore and service far beyond today’s standard complementary smile and ounce of pretzels. Flying was a highly anticipated experience as much as it was a necessity. So much so that in one year’s time from the adopting of the 747 Pan-Am alone transported 11 million passengers over 20 billion miles. People were excited about air travel, airplanes and were simply enjoying the act itself, flying.
Ultimately rising oil prices and the Airline Deregulation Act of 1978 caused a fundamental shift in future of commercial aviation. Because the fare was no longer set by the federal government there was far less focus on airline differentiation on the basis of service or amenities. The establishment of a free market led to lower barriers to entry for new competitors, increased air travel, established new routes, and decreased the average fare enabling more Americans to be able to fly. This was the beginning of the end of the “Golden Age of Aviation” and legacy airlines like Pan American Airways.
Today, most legacy airlines were forced to close their doors or be absorbed by newer more lucrative providers and dreams of the luxurious facets of commercial flight are just that, dreams. It’s a sad reality, but most Americans have become desensitized to the extraordinary feat of being 7 miles in the air at 614 miles per hour. The airlines know this and have listened to what we want, not by what we have said, but what we will pay. They have added more seats per aisle than ever thought possible, with most airlines opting for ten abreast high density configuration for long-haul aircraft. Seat sizes themselves have shrunk to accommodate the airlines attempt to capitalize on economy seating to only 17 inches wide, for reference the average stadium seat today has remained an uncomfortable 19 inches. This being said some foreign airlines like Emirates still have the luxuries and level of comfort comparable to those of the height of jumbo jet travel, at a cost –double the time and money.
It’s hard to distinguish what was the height of international travel from what the airlines have become today. We line up like cattle when our boarding group is called and eagerly push people along so we can be at ease in our seat with luggage stowed. We choose having TV monitors to distract us from the lack of leg room. We put on our headphones to establish a barrier between us and the man whose torso is protruding over the armrest onto ours. The airlines have met us where we are willing to pay and we have come to accept the terms.
Where has the allure gone? To private aviation. Those, like me, understand that although the 747 is retiring and airliners are becoming sardine cans, the experiences and capabilities that used to be common on the legacy airlines are still available. What is often thought as a luxury left only to the “Zuckerbergs” of the world is far more economical and accessible than ever before. Manufacturers in private aviation HAVE listened to our concerns and responded with aircraft operating at significantly lower costs, full air-frame parachutes and comfortable luxurious cabins. Whatever your travel prerequisites are there is a solution in private aviation for you, whether it is aircraft ownership, a jet card, membership program, ad hoc charter, fractional ownership or holding a lease.
September 2018
I arrive at West Houston Airport for a 7 AM flight to Denver and put in the access code to the gate. We park the car next to the plane in the hangar where the pilot Jack greets us and helps with our bags. Five minutes later, we taxied out and were wheels up for Denver. All the while discussing new market potentials, playing a game or two of cards and never having to distract myself from any of the nuisances that I had with the airlines a year prior.
Author:
Corey DeWitt, AM
Co-Founder/Director of
Business Development
Flight Level Partners
Does Anyone Care About General Aviation Anymore?
The general aviation community is responsible for cultivating a new group of users to assure our freedom to fly remains unchanged. With more efficient aircraft and innovative ownership strategies, the argument to fly private is stronger than ever.
Santa Fe: General Aviation’s Hotspot for a Weekend
The Flight Level team headed west to Santa Fe last weekend to enjoy one of the AOPA’s infamous “Fly-Ins”. Each year, the Aircraft Owners and Pilot’s Association (AOPA) hosts a number of regional gatherings across the country to facilitate continued growth of general aviation. The events have something for everyone - air shows overhead, educational seminars, beer and food (what else could you want?). But beneath the surface, these Fly-Ins serve an important role in keeping you flying.
Public Support MATTERS
Believe it or not, our freedom to fly, as the general aviation (“GA”, as we call it in the biz) community is constantly up for debate. A quick spin of the globe would reveal a world of highly restricted, pay-for-usage, airspace systems that systemically oppress the growth and sustainability of private aviation. The United States accounts for the majority of GA flying conducted around the world - we LOVE our airplanes. But even more than a love for aviation, the U.S. has realized the incredible business benefits for flying private, but that is for another post….
The voting public (and their duly appointed representatives) hold our fate to fly private in their hands, so what happens if they stop caring?
Just this year, the fate of the Air Traffic Control system was nearly handed over to airline executives (yes, the same executives that keep taking away your legroom). This bill would have dramatically changed the way we approach our airspace system and prioritized commercial airlines over all other traffic (a system that has stifled European GA). But to many, the general aviation system exists in a vacuum and the majority of the public has no knowledge of our secretive world. This keeps us in danger of one day losing this battle.
Share Your Passion
For all of us who work or play within GA our obligation is to continue to share our collective passion with anyone who will listen. I believe that we are at a pivotal moment in our aviation community. Each day aircraft manufacturers are making strides to reduce aircraft operating costs, increase safety margins and appeal to a wider audience than the traditional base of aviators. Aircraft operators have been equally focused on reducing the cost burden on end-users by reinventing the way we access aircraft. Today, there is more opportunity for individuals and businesses alike to use GA, but it takes all of us, working together, to continue to share the opportunities afforded by private aircraft.
Our Commitment
To share this responsibility Flight Level Partners will be featuring the stories of general aviation users from across the country right here on our blog. We would love the opportunity to share how general aviation has benefited you, if you would like to be featured shoot us an email to info@flightlevel.co. With our collective passion, the future of GA is brighter than ever.
Author:
Cameron Tipton, ASA
Co-Founder/Director of Brokerage
Flight Level Partners
Your Friendly Neighborhood Appraisers
Flight Level Partners has two ASA certified aircraft appraisers. What does this mean for our clients? Expanded services, greater knowledge, even more transparency.
ASA Certified
The Flight Level Partners team is thrilled to announce that both of our Founders, Cameron Tipton and Corey DeWitt have earned Aircraft Appraisal designations with the American Society of Appraisers (ASA). These designations are earned after extensive, in-person classwork, written exams, and the submission and review of past appraisals to an international board of examiners. The ASA holds its designees to the highest professional standards and is known, worldwide, as a premier organization. Receiving this designation means we are even better prepared to serve our clients.
why should you use a certified appraiser?
Anyone can call themselves an "Aircraft Appraiser" so what distinguishes on from another?
In the United States there are two major bodies that issue designations to Aircraft Appraisers - the ASA and the NAAA. Both offer training to their respective candidates and require their members to adhere to strict ethical and practical standards throughout their appraisal practice. Other individuals may hold themselves out as Aircraft Appraisers, but their results and methods may not yield an accurate result. In addition, the Appraisal Reports produced by non-credentialed appraisers will not carry much weight with lenders, insurers, or in a court of law.
What does this mean for our Current clients?
Our core value proposition has always been offering our clients "data-driven" results. We don't believe a simple opinion has any place in consulting. As such, our commitment to continued growth and education guarantees our clients stay ahead of the curve. Having two credentialed appraisers on-staff is a not only an advantage for our customers, it's a game-changer.
Cameron Tipton, ASA
Accredited Senior Appraiser, Machinery & Technical Specialties - Aircraft
Corey DeWitt, AM
Accredited Member, Machinery & Techincal Specialties - Aircraft
Aircraft Value (briefly) Explained
Are aircraft a good investment? They certainly can be. Aircraft depreciate just like any other asset, but their values change based on untraditional factors.
Depreciation
If you have owned a house or car you know that depreciation can spell bad news for your bank account. Aircraft are certainly not immune to depreciation, but many people are confused about what depreciation looks like for an aircraft. To understand how aircraft value's change over time we must first examine why all items lose value: obsolescence.
As your car ages, new, more advanced cars will come onto the market. As time goes on, your car will continue to become less and less desirable against its newer cousins. As such, your car's value will reduce to the lowest value of its utility and components. This is a simplistic view, but one that illustrates why aircraft hold value so well.
Airplane Parts Have High Utility
Over time, you will typically find that your aircraft's value reduces at a much slower pace than other transport assets. This is largely due to the high utility of aircraft components as they age. Even as the physical airframe ages the engines, avionics, and most other components continue to retain their value.
But, why?
The "why" is really interesting (at least to an appraiser, like me). While aviation seems like it would foster amazing innovation - it really doesn't. Safety concerns, bureaucratic red tape, and lack of market desirability make it difficult for manufacturers to offer any innovative designs to market. This means, that there is much less market pressure driving your aircraft's obsolescence. That wing design, those expensive engines, and all those gauges up front are unlikely to change anytime soon. Even if they did, market implementation is typically sluggish at best which keeps your aircraft's value stable.
So, is an Airplane a Good Investment?
An airplane certainly can be a great investment. While much of the investment payout will be in increased productivity and tremendous amounts of time saved, there is much to be said about that final residual value. As of today, many aircraft markets are performing well. In fact, many values have increased steadily over the past few years - predominantly in the turboprop and light jet market. The overall utility of these markets, in particular, has time-and-again proven to protect residuals.
It's safe to say that the overall value of an aircraft depends entirely on how the owner plans to use it. There is an enormous value-add for the owner and users of general aviation that can far outweigh any actual depreciation.
Cirrus SR22 - The Best Way to Travel Around Texas
Travel doesn't need to be complicated. Buying a Cirrus SR22 can save you time and money while getting you to your destination in style. This luxury 5-seater offers speed and comfort in an affordable package.
American-Made Versatility
Cirrus has been an innovator since they first put pencil to paper in 1984. Through the years, Cirrus has brought bold new design and features to an otherwise stale and stagnant general aviation market. The Cirrus SR22 is a high-performance 4 seat airplane that simply works.
Travel Without Compromise
Most light planes come with too many sacrifices for the price. The Cirrus SR22 is the exception, full fuel, and 4 adults can load up and fly for over 1,000 miles at over 210 MPH - not too bad for an airplane that sips fuel. Luckily, Cirrus didn't stop under the "hood", the interior of the SR22 is reminiscent of a luxury sedan. Leather and soft touch finishes are found throughout the cabin. The flight deck commands attention with its two massive screens powered by Garmin's G1000 (with G1000 NXi on the new G6), which has time and again proven to be an unmatched system for performance and safety. The SR22 also offers a host of creature comforts - air conditioning, XM radio, and in-flight texting.
Real World Flying
Cirrus has made sure that their airplanes are up to the challenges of daily flying. The SR series was the first certificated airplane that came standard with a full airframe parachute that Cirrus has dubbed, "CAPs". Other noteworthy features include airframe de-icing capabilities, airbag integrated seatbelts and a host of redundant mechanical systems. That means that you can fly safely in weather that keeps other airplanes in the hangar.
The Math Works
We find ourselves consistently recommending new and used Cirrus to our clients. If you or your company are making frequent regional trips within 600 miles a Cirrus SR22 may be the best way to travel on your next trip. The Cirrus is the clear answer for regional fliers and offers substantial cost savings over turboprop airplanes. The SR22 costs about $150 per hour to operate, that means a roundtrip from Dallas to Houston will only run you about $300 (Southwest couldn't beat that!). Flight Level Partners works closely with Cirrus and would be happy to offer consultation and place you in the right hands at Cirrus. If a previously loved Cirrus is more your style, Flight Level Partners can offer industry-leading expertise to find you the perfect plane for your needs and budget.
You Can Buy an Airplane
Buying an airplane is a rewarding but complicated process. However, there has never been a better time to buy. From tax incentives to employee productivity private air travel is the answer to airlines travel woes. Here we explain the affordability and accessibility that comes with buying a plane.
Invest in Easy Travel
Private planes definitely have a stigma - they're EXPENSIVE. While an airplane may cost more than your car, it opens up endless possibilities for you and your business. Let's do some quick math. If you or your team use airline travel multiple times per month you are likely spending tens of thousands per year getting around the country. The hours spent commuting to and from an airport, waiting in TSA lines and delayed flights work together to hurt your bottom-line.
Price of a Plane
Prices vary widely in the aircraft market, but there are options for every budget. For many individuals and small businesses, travel is regional and a light plane is a perfect choice. Something like a used Cirrus SR22 or Beechcraft Bonanza will run between $200,000-$500,000 and offer efficient and fast travel around a 600-mile area. Annual and hourly operating costs are very reasonable.
For others, something that flies higher and faster may be necessary. A Citation Mustang or Phenom 100 are great planes to buy. These planes cost between $1-$2.5 million and offer 1,000+ mile range and speeds of an airliner. Many owners are surprised how affordable these private planes are to operate.
If these prices shock you, don't fret. There are so many ways to save on both the upfront capital and operating costs. Our group specializes in cost reduction through the use of fractional ownership, leasing, and chartering with our partners. For example, two companies may choose to team up to buy and operate the plane - reducing overall costs by half. We can even help with the matchmaking process.
Save Big on Taxes
We know what you're thinking, how can I possibly SAVE money buying an airplane. It's actually pretty easy, especially for businesses. Recent legislation has allowed for 100% first-year book depreciation for both new and used aircraft. This essentially means that you can "write-off" (deduct) the entire cost of your aircraft on your taxes the year you purchase.
Not only are you saving upfront but a huge portion of related aircraft operating expenses are deductible too. The IRS doesn't view your flight on your business aircraft differently than a ticket on the airlines. You may deduct these company trips the same way you would any other flight. This makes ownership achievable for a huge number of buyers.
Buy a Plane Today
Flight Level Partners specializes in working with first-time buyers. We take the time to educate you, our clients, on both the good and bad of ownership and build ownership strategies that make you successful. We believe that aviation continues to offer unparalleled advantages to businesses and professionals, alike. Call us or shoot us an email today to talk about how ownership can benefit you.
4 Reasons You Should Buy an Airplane
The aircraft market is HOT and the advantages of owning your own aircraft can be huge. From tax programs to increased business performance here are a handful of reasons you may have overlooked.
1. TAXES!
While the primary deterrent from aircraft ownership is often the price, few business owners understand the huge tax benefits your aircraft can offer. In an attempt to boost the economy the Obama administration issued Bonus Depreciation for factory new aircraft. Now, in 2017 that depreciation is 50% of aircraft value. That means you are able to recover 50% of total cost your first year of ownership! How does a million dollar tax credit sound?
2. It's not as expensive as you thought
Money talks and the upfront equity investment in an aircraft is usually high. However, new ownership strategies are hot on the market and can reduce or eliminate your operating costs - you essentially fly your plane for FREE. Groups like Q Air in Houston, TX are leading this wave of innovation. These companies professionally manage your airplane and in exchange sell time-share style hours to other operators. This gives you a positive revenue stream and according to Q Air customers, they not only fly free, but they make decent profits on their investments. You maintain total control of your aircraft but the downtime works for you, instead of against - NICE!
3. Your business will grow
Travel has become its own form of currency and the rate at which you are able to move yourself and your employees matters now more than ever. If you are a frequent traveler you may have noticed a slight (read: major) decline in airline performance. Oversold and tardy flights are now commonplace. Each business situation is unique, however, many companies can justify using private aircraft because their executive time lost is greatly reduced. The National Business Aviation Association reported that companies that incorporate private aircraft in their business outperform competitors in, "annual earnings growth, stock and dividend growth, total share price, market capitalization and other financial yardsticks". Not to mention, your clients will be very impressed.
4. Now is the time to buy
Business aviation is on the rise - a steep one, in fact. The U.S. economy is booming and the aircraft market is more liquid today than any other time in the past decade. As a result, prices are more competitive and the aircraft selection is constantly refreshed. For now, it's a buyer's market - but this will change. The overall selection of aircraft is certainly a limited supply and as we have noted during similar market trends (and as basic economics dictates) these low prices will surely rise. If you have ever thought about an aircraft for your business it's worth a conversation with one of Flight Level Partner's consultants. Our team firmly believes in educating the prospective buyer - so consultation is always free. So, the next time you're waiting to board your oversold, late flight - feel free to give us a call, we're happy to help.