The FAA mandate for all planes flying in class A, B, and C airspace is fast approaching and will be required as of January 1, 2020. Many private jet owners are choosing to put off equipping their plane with this required technology. One of the reasons for this is that they feel it is well over a year away and so they have enough time.
Why Delaying Is A Bad Move
Many estimates suggest that there are as many as 100,000 aircraft that still need to be fitted with this technology. With the remaining time between now and the deadline, it means that there are hundreds of planes a month that would need to be fitted with the new technology if everyone started having their aircraft converted now. Unfortunately, many aircraft owners are choosing to delay.
There have been other instances where the deadline for an FAA mandate has arrived and many aircraft did not meet the new guidelines. This led to those aircraft being grounded for significant amounts of time at all because their owners failed to update the aircraft before the deadline. This is almost certain to happen with the automatic dependent surveillance-broadcast mandate.
The aircraft owners that insist on delaying are highly likely to experience the pressure of trying to have their aircraft upgraded at a time when everyone else is trying to do the same. This will inevitably lead to delays and additional cost for installation. When the companies that are capable of performing the insulation are bombarded with customers demanding that their aircraft be fitted with this technology, then they will inevitably raise their prices to meet the demand.
Why The Time Is Now To Be Fitted With The Automatic Dependent Surveillance-Broadcast Technology
Because there are so many private jet owners that are choosing to delay having their aircraft fitted with this technology, it is an ideal time to have it done. Right now it is possible to have the aircraft fitted easily and the prices are as good as they are likely to get. Delaying is very likely to result in paying higher prices for the installation.
Those who delay too long will inevitably have their plane grounded for however long it takes until it is fitted with the required technology. All of this can be completely avoided simply by planning ahead and having your aircraft updated now.
Will The Deadline Be Extended?
Some private jet owners have the feeling that the deadline will be extended. But one of the heads of the FAA has already stated strongly that the date is firm. There is no incentive for the FAA to delay the deadline as they have already given more than enough notice. The acting Deputy Administrator said that if you wanted to operate your plane in controlled airspace that it's necessary to have your aircraft updated by December 31, 2019.
Will Prices Drop?
The price of the technology itself is already considered very reasonable. The likelihood is that the cost to install the new technology will go up rather than down. The reason is that there are so many people choosing to delay updating their aircraft. Once the demand goes up and there are more people wanting their aircraft updated then there are technicians available to do the work, then there's every reason for installation companies to raise their price and no reason not to.
If I'm Planning To Sell My Aircraft Is It Necessary To Update It First?
Most people who are in the market for a private jet knows of the impending FAA mandate. Most Brokers agree that anyone trying to sell their aircraft without the update has a hard and long road ahead of them. In fact, it is already having a significant effect on the value of the aircraft. With each passing month, it will simply have a greater and greater effect until the aircraft cannot be sold without the update.