Partial Shutdown Of FAA Taking Toll On Aircraft Sales
by: Andrew Schneider, October 8, 2013 5:10:00 am
Houston is home to one of the largest concentrations of aircraft in Texas. About half a dozen companies here are devoted strictly to the sale of aircraft for business aviation — notably to the oil and natural gas sector. As with any vehicle, the sale of an airplane requires a formal transfer of title.
“An integral part of the transfer of title is the filing of that bill of sale at the FAA records division in Oklahoma City, which is officially closed as of the government shutdown.”
Janine Iannarelli is president of Par Avion LTD, based in West Houston. She says the inability to close on sales stands to hurt aircraft manufacturers and brokers badly.
“The backlog of aircraft transactions is going to be huge. Huge. Surely, if the manufacturers can’t deliver, you know, we are certainly getting into the hundreds of millions of dollars.”
Iannarelli says that doesn’t include the cost to vendors — such as avionics and aircraft cosmetics companies — which are involved in refurbishing used aircraft.