AvBuyer Magazine - July 2018

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Selling Unequipped Aircraft Abroad

Alternatives to equipping for ADS-B could include

trying to sell your aircraft to an operator in another

country that does not require ADS-B equipage.

However, ADS-B is not just a US mandate. Australia

was the first to implement full ADS-B Out coverage

and Europe will require it on used aircraft by June 7,

2020 (June 8, 2016 saw Europe’s mandate for new

aircraft come into effect).

Accordingly, you will need to research the

countries that are willing to register your aircraft

without ADS-B Out and find a willing buyer, which

poses its own challenges.

Scrappage: Is Breaking Up Hard to Do?

Perhaps the option to scrap your aircraft appeals. If

so, where do you turn to get this accomplished? How

many aircraft of a particular model can be scrapped

and what will the demand be for harvesting parts to

keep the remaining fleet aircraft flying?

Assuming that there are 100 business jets in

operation and 50 have the ADS-B equipment

installed, of the remaining 50 the question becomes,

what percentage could be scrapped to keep the

remaining 50 survivors in the air, while being

profitable for the salvage and parts companies?

The answer will help an aircraft owner decide

whether they are more, or less likely to receive a

satisfactory quote. It all depends on which parts are in

demand, and how many parts need to be kept in the

salvage company’s inventory for future use.

Table B (above) sets out the number of business

jet models historically produced, banding them by

the percentage of the fleet that are ADS-B compliant.

There are currently 50 models of business jet (from a

total of 222 produced) that have 0% ADS-B

compliancy. If your jet is one of these, there is likely to

be very little demand for parts from your jet, should

you choose to scrap it.

To Store or Retire?

Many factors can affect the decision to store an

aircraft irrespective of its age. However, one key

factor – aircraft value – affects whether an aircraft

comes out of storage and is placed back in service.

The value of an aircraft depreciates over time

while the cost to operate and maintain the aircraft is

always increasing. Eventually the aircraft depreciates

to a point where it is worth less than the value of its

parts, and the decision is made to dismantle the

aircraft.

As we have established, ADS-B equipage is

becoming an increasingly important factor at play

regarding the decision to scrap. Those aircraft not

equipped are candidates for storage or retirement,

and eventually subject to sale for scrap and recycling.

What is Usable?

Aircraft have technical limitations which prevent them

from being operated beyond a certain threshold. This 

Source: JETNET (as of June 6, 2018)

27

# of Business Jet Models Percentage Compliant

100%

145

50

1% to 97%

0%

Table B - Status of ADS-B Compliance for Business Jet Models

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