though he admits it could change at any point. “It’s been a wild ride,” Blessing says. “Activity levels are still a little ahead of what they were in 2018,” even considering the interest rate cuts ahead of the COVID-19 crisis. Though Blessing says that AirFleet’s activity overall is tran- sitioning back to “more normal levels,” with fewer new trans- actions and more refinancing, there’s still a bright horizon. New aircraft make up 30 percent of AirFleet’s annual volume, and Blessing reports those activity levels are “a bit higher this year [in 2022]. Are interest rates going to upset buying hab- its?” Hard to tell, but Blessing says there is still ample cash out there earmarked for aircraft purchases. “Our biggest competi- tor [as a loan underwriter] is a cash buyer.” If you want a new turbine mount, in most cases you’ll need to negotiate a substantial waiting list. Manufacturers, such as Textron Aviation, Pilatus, and Gulf-stream, all register backlogs into 2024 or later—a point reflected in Blessing’s assessment: “We’re not seeing any inventory on the OEM side. Cancella- tions are an opportunity for the OEM,” allowing them to ac- commodate a new buyer at a better price than the one previ- ously negotiated when material and workforce costs were lower. What does this mean for the pilot or flight department that wants a new jet for the fleet, or to enter business aircraft ownership for the first time? You have a wide range of excit- ing platforms with incredible long-range, high-speed perfor- mance—and a “greener” signature—but you might have to plan carefully in order to secure one on your preferred timeline. Fractional Fleet Updates Another part of the jet market that has benefited from the continued development of niche turbine mounts are frac- tional jet operations. Volato, based in Atlanta, Geor- gia, recently announced that it would expand from its current fleet of 11 HondaJet Elites to add the Gulf- stream G280. The company placed an order for four units in September. With these incoming aircraft, Volato said it would be able to expand its business model to serve a wider share of the mar- ket. “When we launched Volato, our strategy was to initially target the largest segment of the market that was not being directly addressed: short-haul flights with only a few passen- gers,” Volato CEO Matt Liotta says. “From listening to our customers’ needs and recognizing that our innovative business model is not just limited to light jets, we are excited to expand our model to larger aircraft,” Liotta adds. “This would also ensure that existing HondaJet custom- ers would be able to fly their edge case missions that are farther or with more passengers.” The jump from six seats to the 10- passenger configuration in the G280 allows for that growth, making it the first company to operate the super midsized jet in a fractional model. • From a previous issue of FLYING Magazine
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