Pilot's Guide to Avionics 2014-2015 - 71

Aircraft Owners Must Meet ADS-B
2020 Equipage Mandate
BUT HOW DO THEY PAY FOR IT?
Without a doubt, avionics shops are having ongoing
conversations with their customers regarding the ADS-B
equipage mandate looming on New Year's Day in 2020 .
And certainly, most pilots and aircraft owners will place
future orders for the necessary installation at some
point, but those darn financial barriers have caused
many folks to delay the equipment upgrade well into the
future .
So how can owners and
managers of avionics shops
help close these orders
sooner rather than later?
Well, one more financing option is expected to
become available in the
future, as the Aircraft Electronics Association recently
announced a partnership agreement with the NextGen
GA Fund to accelerate the rollout of NextGen by providing access to quick, affordable financial incentives to aid
aircraft owners .
Once the Federal Aviation Administration approves
the loan guarantee certificate for it, the NextGen GA
Fund will finance NextGen installations, using stipulated
equipage families to include WAAS-capable GPS, ADSB In, ADS-B Out, RNAV/RNP avionics, data communications, SWIM, flat-panel displays, antennas, electronic
components, instrument panel modifications, and installation and certification costs .
The NextGen GA Fund is a public-private partnership formed between the U .S . Congress, the aerospace
industry and the private-sector investment community .
Congress approved of this program by granting federal
loan guarantees found in Section 221 of the Federal
Aviation Administration Reauthorization Act of 2012 . The
NextGen GA Fund will initially bring approximately $550
million as a capital base, eventually supporting some
$1 .3 billion in recurring financings to the general aviation
sector during the next 10 years . The NextGen GA Fund
will enable the retrofit of tens of thousands of general
aviation aircraft .
Expected to be facilitated through the AEA and a special web portal made available in the future, AEA mem-

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ber repair stations will be able to quickly and seamlessly
refer customers to the NextGen GA Fund as a financing
alternative to help provide the necessary resources
in accomplishing important upgrades for more than
157,000 general aviation aircraft .
"The NextGen GA Fund will help customers of AEA
member repair shops move forward with the Jan . 1,
2020, ADS-B equipage mandate," said Paula Derks,
AEA president . "It also will
bring substantial privatesector capital to help pilots
and aircraft owners overcome financial challenges
to completing these safetyenhancing installations ."
"Finding efficiencies and cost-effective ways to
meet public needs has never been more important to
Congress, taxpayers and aircraft owners," said Michael Dyment, general partner with the NEXA General
Partnership, manager of the NextGen GA Fund . "This
also protects the FAA's own $40 billion investment in
NextGen infrastructure, for which aircraft equipage is essential . The debate is not about upgrading U .S . aircraft
with NextGen; it's how to inexpensively finance it . The
NextGen GA Fund is about doing just that . An alternative to commercial bank financing alternatives, the NextGen GA Fund offers owners of general aviation aircraft
the advantage to equip for NextGen without a large cash
outlay or having to mortgage the aircraft in return ."
For more information about the NextGen GA Fund,
visit www .nexacapital .com . q
Editor's Note:
The NextGen GA Fund LLC is managed by the NEXA General
Partnership and Management Company. This Fund was formed
by NEXA Capital Partners LLC, which provides specialized
transaction-focused services including business advisory, capital
planning, corporate finance and investment banking for the
aerospace sector. With offices in Washington D.C., NEXA also
works closely with government and industry organizations that
drive regulatory requirements so important for the aerospace and
airline sectors. For more information, visit www.nexacapital.com.

http://www.nexacapital.com http://www.nexacapital.com

Pilot's Guide to Avionics 2014-2015

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