MCLEAN, Va.–At a total cost of more than $10 million, Pentagon Federal Credit Union has purchased a business jet, saying it will benefit “members and employees through increased safety and productivity.”
According to a registry maintained by the Federal Aviation Administration, Pentagon Federal Credit Union registered ownership of a multi-engine private jet manufactured by Textron Aviation, Inc. (Cessna), model 560 XL.
The 560XL series is described by Textron Aviation as a midsize business jet that includes the Cessna Citation Excel, Cessna Citation XLS and Cessna Citation XLS+ models.
In a statement to CUToday.info, PenFed Credit Union President/CEO James Schenck, said, “After careful consideration of our business needs, PenFed acquired an employee business shuttle to help us become even more efficient and effective in our national operations serving members through PenFed’s regional financial centers in San Antonio, Texas; Omaha, Neb.; Eugene, Ore; and our Tysons, Va., headquarters. The cost of the shuttle represents less than 0.2% of PenFed’s annual operating costs, and this decision benefits our members and employees through increased safety and productivity.
“The successful execution of our operating strategy has contributed to our record-breaking annual lending volumes, up nearly 70% this year compared to the six months ending June 2020,” Schenck continued. “PenFed has loaned over $14 billion through June of this year, benefiting Americans buying homes, cars and financing their dreams.”
Costs related to the jet appear on page 53 of PenFed’s 2020 Annual Report as a $10.5 million line item for “aircraft equipment.” The line item was first reported by Chip Filson on his blog.
The $27.6 billion PenFed, which has approximately 2.34 million members, reported net income of nearly $133 million at mid-year.
About the Aircraft
On its website, Textron Aviation says of the aircraft, “Offering transcontinental range, enhanced cabin and cockpit technology and superior performance, the jets in the 560XL family have transformed business aviation, evolving with the industry and operators throughout the past 25 years. The 560XL series is known for propelling the landscape of business aviation forward, delivering speed, spaciousness and comfort to a new segment of the industry. Its evolution and prominence continue to resonate with customers across the globe…
“The Business owners consistently choose the Cessna Citation XLS+ more than any other aircraft in the midsize category for its unparalleled combination of performance, comfort, ease of operation, range of mission capabilities and favorable operating efficiencies,” the website adds.
Range & Costs
The aircraft can fly at speeds up to 498 miles per hour, according to the manufacturer, with a maximum economy range of 2,100 nautical miles. It features advanced avionics, weather navigation systems, airport diagrams, detailed flight status data, checklists, and diagnostic systems that are directly in the crew’s line of sight, the company said.
According to Business Jet Traveler, the price of a new aircraft in the XLS series is approximately $13 million, with an average asking price for aircraft in the series currently listed for sale at $7.1 million.
LibertyJet estimated the cost of flying the aircraft 200 hours per year at $822,980 ($4,114.90/hr) and for 400 hours per year at $1.261 million per year ($3,152.50/hr).
PenFed CEO Schenck is a former Army Black Hawk helicopter pilot who served as an aviation officer while with the Army.