What is the advantage of using Aerlogix to steer you through your transaction? Our unique background encompasses multiple aspects of business and corporate aviation. While the acquisition of an aircraft is certainly a complex undertaking, it also may be the least restrictive factor. Insurance, Training, and Taxes can also play a major role in any operation. Fortunately, Aerlogix has professional expertise and knowledge in each of these areas. Let our experience work to your benefit.Call Aerlogix: 619-562-1875 Call Aerlogix: 928-308-6743
Aviation insurance, although not a mystery, can be very complicated to the casual observer. In fact, the insurance companies will generally have more stringent requirements when it comes to matching pilot qualifications to complex aircraft. Whether you are an owner/pilot moving up through the matrix of complex aircraft or placing insurance on a Gulfstream 550, there are no hard, fast rules that the aviation industry follows. One thing to keep in mind when considering insurance options is that the FAA's minimum requirements are just that, minimums. Insurance companies will regularly expect much more from pilots in the way of experience than the FAA. An example would be a pilot that just attained his/her multi-engine rating. While this pilot would be completely legal to act as PIC on a King Air 200 that day according to the FAA (multi-engine<12,500#), the insurance company insuring the King Air 200 would certainly never allow this to happen.
For this reason, the insurance companies like to look at complete risks. Not only are they looking at how many hours a pilot has or what type of aircraft they have flown, they want to know how many hours the pilot has flown during the last few months, year, etc. Currency issues are a real factor when it comes to accidents and insurance companies are very aware of this. The insurance company may also like to know what the pilot's goals are. Is the pilot attempting to build time to move on to more complex aircraft? Is a single pilot aircraft being flown by two pilots? What are the qualifications of the second pilot? Many factors equate into an insurance company's decision to insure and how they rate risks. Knowing what an insurance company is looking for when you are pricing insurance is key to getting the right insurance at the right price.
When it comes to corporate flight departments, insurance companies are not only concerned with pilot qualifications versus type of aircraft flown. They are also concerned with the aircraft hangar arrangement. Is the aircraft housed in a single hangar or a gang hangar, where multiple aircraft are housed? Who is pulling the plane in and out, what kind of equipment are the line service staff using to move the plane? How many line service personnel are being used to move your plane? These are all questions that can change the pricing on insurance for any risk. The number one expense for insurance companies is hangar rash, aircraft damaged while on the ground in the care of line personnel. For this reason, insurance companies are looking at more than just pilot qualifications when considering insurance possibilities.
Although there are a few exceptions, annual, simulator based training is required of most pilots flying turbine aircraft. This trend was started by the airlines and military, where its benefits were realized. Accident rates dropped dramatically with the advent of simulator technology. For this reason, insurance companies will require such training on an annual basis with a few exceptions. Once again, the insurance companies requirements far exceed the FAA when it comes to training requirements. Don't shy away from training, there are very few if any pilots who will not benefit from type specific aircraft/simulator training. For the most part, training scenarios will prepare a pilot for what isn't practiced in real time flying. The benefit has been proven in lives and money saved by insurance companies.
Where the FAA would only require a pilot to have currency requirements in a King Air, three takeoffs and landings in the last 90 days, the insurance companies will require the annual, simulator based training. Pilots of turbojet aircraft will have to pass a proficiency test for the FAA (FAR 61.58), thus they have somewhat equal requirements of the insurance companies. Both the FAA FAR 61.58 and the insurance required annual simulator based training can be conducted at the same time.
Tax considerations will have a major influence on the ownership structure of an aircraft. These considerations will include both income tax and sales and use tax, and to a lesser extent, property taxes. The following is an overview of the topics that are relevant to an aircraft acquisition.
Aerlogix has the experience to help you develop a flight department that will meet all of your goals. From initial inception to your end use of the aircraft, aerlogix can guide you through the maze of ownership hurdles. Aircraft selection, pilot qualifications, insurance, taxes and training all come together with the aerlogix team members to help you achieve your goals. Aerlogix can get your flight department headed in the right direction from the start.
Safety is the goal of any flight department. Although corporate aircraft are inherently safe by most measures, there are many factors that contribute to a "safe and efficient" operation. Aerlogix experts can look into the details of your flight department and see where improvements can be made. Although flying your aircraft may seem the logical place to start a safety audit, ground operations in a flight department will provide the basis for a safe flying experience. Ground operations include flight training, maintenance, and line service operations. Each one of these has a large influence on the overall safety of your flight department.
Aerlogix will use the latest standard in the aviation industry to insure safety within your flight department. SMS (Safety Management System) allows operators to incorporate a safety culture at every level of your flight department. From decision making at a business level to the final decisions made on each flight SMS is a total risk management tool that each flight department should be utilizing. Contact aerlogix to ensure that safety is not only a top priority in your flight department, but it's execution is as efficient as possible.