Airplane Gov. Dave Heineman wanted sold by University of Nebraska Foundation

The much deliberated and debated airplane Gov. Dave Heineman wanted the state to purchase from the University of Nebraska Foundation has taken flight.

The foundation put the plane up for sale last summer after the Legislature held up the sale for more study. The sale to an out-of-state buyer closed Sept. 30, said foundation spokeswoman Dorothy Endacott.

"It was sold to a private individual, and we are not releasing further details about the buyer or the sale price," she said.

The Beechcraft King Air B200, manufactured in 2001, was listed on the open market July 1, after the state's lease ran out June 30 and the state opted not to sign a new one.

During the 2013 legislative session, the Appropriations Committee first said it would not allow for deficit spending to buy the plane from the foundation for about $2.165 million. Then the committee changed its mind and put it in the budget.

When the issue got to the full Legislature, senators said they wanted to hold off on buying the plane and asked for a study to determine the best option for carrying the governor and other state agency personnel across the vast open spaces of Nebraska.

While the Legislature conducted that study, the foundation offered a new $10,000-per-month lease to the state to continue using the plane, but no money was set aside in the budget, Endacott said.

The foundation didn't want to wait indefinitely, so it listed the one-owner turboprop plane with a broker. The list price was $2.15 million.

Heineman now uses the state's 1982 Piper Cheyenne when needed, as he did Thursday for his trip to Kearney for a news conference. He had no comment Thursday on the airplane's sale.

The foundation had given the state an exclusive opportunity to buy the plane last year, because the state was its biggest user.

Omaha Sen. Bob Krist, an Air Force veteran who also is a pilot, said it was great for the foundation that the plane was sold, but he had no remorse for the state's missed opportunity.

"I think that if they were able to recoup the money that they wanted to, out of their airplane, I think that's a great thing," he said.

The first phase of the $4,800 study by independent appraiser Conklin and de Decker commissioned by the Legislature showed the fair market value of the plane was closer to $1.98 million.

Krist said that even though the foundation offered it to the state at above fair market value, there were aspects of the plane purchase that were attractive.

Those aspects that were unattractive were the plane's 10-year-old electronic systems, such as communications, navigation and monitoring. Those upgrades would have cost another $500,000. And the engines were going to require overhauls in the next year or so, depending on the hours flown, for another $500,000 to $750,000.

It would make more sense to buy a new plane, under warranty, with no hidden costs of a used plane, he said. Like a King Air C90, for $3.8 million up front and about $1.2 million per year to operate.

"All the numbers point to us buying a brand-new, little bit smaller airplane, but still capable of doing everything the state needs to do," he said. "It's cheaper by a substantial amount over a 20-year period of time, and particularly in the first six years."

The study showed that for security and emergency management, owning the plane -- not leasing or renting trip-by-trip -- is the best option.

The study said the state would need a plane with two turbine engines for safety and reliability; two pilots, capable of flying five to seven passengers anywhere in Nebraska and the neighboring states using public-use airports; and a secure environment for senior officials. The state also would want it to be available immediately for state emergencies.

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