aircraftsales

In the midst of business aviation’s traditional fourth quarter aircraft transaction frenzy, we review where things stand with Jay Mesinger, CEO of Mesinger Jet Sales. Topics covered include:

• Demand – are we seeing changes relative to the types of buyers?
• Supply – is inventory likely to continue increasing?
• Pricing – rationalizing ongoing Ask Price increases with increased pre-owned listings.
• Rising maintenance costs and 2023 Hourly Cost Maintenance Program rate increases.
• Charter activity – has the charter user evolved and are charter rates holding steady?
• Fuel pricing going into 2023 – might rising fuel prices positively affect the use of SAF?
• Aircraft pre-purchase inspections, facility access, and supply chain issues.
• Key takeaways from this year’s NBAA and CJI Miami.

Vivek Kaushal, Chief Executive Officer for Global Jet Capital, reviews the firm’s wide array of financing solutions for the business aircraft market. Topics covered include:

• Overall business aviation market conditions.
• A discussion on aircraft values.
• The potential effect of the Russia / Ukraine crisis on business aviation.
• Global Jet Capital’s value proposition.
  The company’s Operating Lease product and other available services.
• Global Jet Capital’s Asset-Backed Securities Program, or ABS.
• The company’s second annual Market Outlook.

2021 is in the home stretch, so we asked Jay Mesinger, CEO of Mesinger Jet Sales, to join us for another discussion on the market. Topics covered include:

• Dynamics surrounding the Business Aviation’s record-low, pre-owned aircraft inventory.
• How does a buyer address a seller’s time limitation to conduct a Pre-Purchase Inspection?
• Aircraft transaction prices, and what the next six months might hold.
• Aircraft demand and potential new tailwinds in 2022.
• Increasing Days on Market for older aircraft during the third quarter.

With second quarter statistics compiled, we asked Jay Mesinger, CEO of Mesinger Jet Sales, to join us for another discussion on the market. Topics covered include:

• What might be the greatest hurdle facing Business Aircraft sales today.
• What buyers are paying to secure desirable aircraft.
• Advice for anyone seeking to secure an aircraft before the end of this year.
• How supply chain delays hampering transaction timing.
• Market demand during the second half of 2021.
• The potential for used aircraft retirements in the near future.
• The potential for consolidation among the various Business Aviation service providers.

Richard Aboulafia, Vice President, Analysis, for Teal Group, discusses how Business Aviation has performed during the first half of 2021, and where things might be headed. Among the topics covered during Richard’s second podcast of 2021:

• The market’s bifurcation between large and small jet sales.
• Leading market indicators and more immediate market health guideposts.
• How aircraft deliveries are shaping up during 2021, and over the next few years.
• Which airframers are best positioned at the moment.
• The opportunities for a supersonic aircraft within the Business and Commercial business sectors.
• Business Aviation’s growth forecast for 2021 and 2022.

William Sturm, Vice President of Sales for Aero Asset, and a co-owner of the firm, reviews how the helicopter market withstood the pandemic, and where things might be headed the remainder of 2021.

With statistics showing the number of first-time aircraft buyers to be at perhaps an all-time high, David Mayer, a Partner at the Shackelford, Bowen, McKinley & Norton law firm, discusses what first-time private aircraft buyers need to know. This conversation touched on numerous topics, including:

• The types of entities seeking to acquire an aircraft for the first time, and what is motivating their acquisition.
• The private flying familiarity shared by first-time buyers, and their level of knowledge about buying an aircraft.
• How far a first-time buyer’s aircraft search is likely to have progressed before they turn to an aviation attorney for assistance.
• The top three topics first-time buyers most want to discuss.
• Guiding a first-time buyer through the acquisition process.
• The top three issues aircraft owners are likely to face once their purchase has closed.
• Services an aviation attorney can provide to first-time buyers that they need to consider.

Richard Aboulafia, Vice President, Analysis, for Teal Group, discusses the impact COVID-19 has had on the Business Aviation market. Topics covered include:

• The pandemic effect on Business Aviation during the past year, and how it compares with other impactful global events.
• The present tailwinds and headwinds affecting Business Aviation.
• How new aircraft deliveries are likely to evolve during 2021, and over the next few years.
• Business Aviation’s recovery compared to the airlines.
• Views on the market for a Supersonic Business Jet.
• Advice for OEMs, aircraft Financing Institutions, and aircraft Service Facility for the near term and the next few years.

Written by: Tony Kioussis, President & CEO, Asset Insight, LLC
Read by: Deborah Hooten

This article was originally published in the September 2019 edition of Professional Pilot Magazine, and the topics covered include:

• An operator’s choice of Service Facility for major maintenance events
• MRO Value-Add Services
• Aircraft Age and Maintenance Equity
• Leveraging Third-Party Services
• Converting Data into Actionable Information
• Predictive maintenance and spare parts requirements
• Thinking Outside the Box

To read the original article, and view related charts and graphs, click here and go to page 8.

Robert E. Beaumont, Founder & President of AirConformity, discusses what operators need to consider when purchasing an aircraft that needs to be exported from one jurisdiction and imported into another country. Topics covered include:

• What needs to take place for an aircraft to be moved from one country to another.
• How does a buyer address Airworthiness Directives when they vary from country to country?
• Must Service Bulletins be completed in order to import an aircraft?
• Obtaining an Export Certificate of Airworthiness, and who issue that document.
• Should a Pre-purchase Inspection be accomplished before the aircraft is exported?

Jay Mesinger, CEO of Mesinger Jet Sales, provides his thoughts about how business aircraft sales are being affected by the COVID-19 crisis, and how the market could be affected as we enter, what has historically been, the strongest quarter of the year relative to aircraft sales. The topics covered include:

• The types of entities actively seeking to purchase aircraft as we enter the fourth quarter.
• The potential effect of this year’s election on fourth quarter sales.
• Current pricing and what may be on the near-term horizon.
• What leads to successful transactions in the current market – whether you’re a buyer or a seller.
• Supply Chain timelines relative to parts – what buyers and sellers should plan on.
• Under what conditions might the effects of the COVID-19 pandemic end for business aviation.

This article was originally published in the November 2019 edition of Professional Pilot Magazine. Written by Tony Kioussis, President & CEO, Asset Insight, LLC and read by Deborah Hooten

Subjects covered include:

• Understanding the financial dynamics that come into play when selling an aircraft.
• Using objective analytics and a standardized grading system to determine how any aircraft compares with like models listed for sale.
• Tools to determine exactly how any aircraft’s Residual Value is affected by maintenance due.
• The appraised value of maintenance events completed.
• There problems with traditional Residual Value forecasting methodology.
• Utilizing an aircraft’s ETP Ratio to determine its marketability.

Click here to read the original article, and view related charts and graphs.

Assent Aeronautics was founded in 2004. Along with the company’s aircraft management, operations, and maintenance services, Assent provides aircraft acquisition and sales capabilities. President and Founder W. Hulsey Smith discusses the company’s private aircraft auctions platform, and topics covered include:

• The market’s interest in completing aircraft transactions via an auction, especially during the COVID-19 pandemic.
• The transparency, and other advantages, offered by Assent’s auction platform to aircraft buyers or sellers.
• How Aircraft Brokers and Acquisition Consultants are utilizing Assent’s Private Aircraft Auctions platform.
• How Assent identifies financially qualified bidders.
• How to participate in an Assent auction via the Internet.
• Handling global time-zone issues and the bidding period available to buyers.
• The types of fees incurred by those utilizing Assent’s platform.

Formed in 1991 as The National Aircraft Resale Association (NARA), the organization officially changed its name to The International Aircraft Dealers Association (IADA) to reflect its constant presence around the world and international domination of pre-owned aircraft sales. Wayne Starling, IADA’s Executive Director, discusses the Association’s history, its capabilities, and the services IADA provides to the Business Aviation Community, including:

• An overview of the organization and how it has evolved over the years.
• How IADA’s Dealer Accreditation Program benefits aircraft buyers and sellers.
• Certification for Brokers working for an Accredited Dealer. 
• The value offered by IADA’s Verified Products and Services Members.
• The organization’s philanthropic efforts and the IADA Foundation. 
• The capabilities, services, and power of the Association’s online marketplace, AircrftExchange.com.

This article was originally published in the November 2018 edition of Professional Pilot Magazine. Subjects covered include:

• Differentiating between “low price” and “good value”.
• How Maintenance Costs can impact an aircraft’s overall value.
• Utilizing an aircraft’s ETP Ratio (maintenance Exposure to Ask Price Ratio) as an indicator of its marketability.
• Projecting an aircraft’s Residual Value.
• How utilization can change maintenance costs and impact the aircraft’s actual Residual Value.

Click here to read the original article, and view related charts and graphs.

David Wyndham joined the firm of Conklin & de Decker and helped the consulting company become an industry authority on Business & General Aviation aircraft operating costs. Now working with Par Avion, David discusses Aircraft Operating Costs with Asset Insight, including:

• Identifying the different types of operating costs, and how an operator should view them.
• Identifying Variable, Fixed, and Other Costs an operator should keep in mind.
• The reasons for tracking aircraft-related expenses on a Cost per Hour and a Cost per Mile basis.
• Understanding the cyclical nature of maintenance.
• The items to consider when operating under a “low utilization” environment.
• What owners and operators are most likely to misunderstand when it comes to operating costs.
• Improving understanding and communication when it comes to costing.
• Structuring an operating budget.

Brad Harris, President and CEO of Dallas Jet International, discusses how the firm he founded helps aircraft purchasers and sellers meet their private transportation needs through market knowledge and active participation during every step of a proven, streamlined process structured to ensure a successful outcome for the client. Topics covered include:

• Determining the optimum aircraft to meet a client’s requirements.
• Factors to consider in determining whether to purchase a new or an in-service aircraft.
• The benefits of using an experienced acquisition consultant.
• Determining and justifying an aircraft purchase price.
• The process for establishing and overseeing a successful pre-purchase inspection.
• Determining the correct State to close an aircraft transaction.
• The optimum ownership period to replace an aircraft.
• Strategies an owner can use to optimize the value of their asset.
• The criteria that make one in-service aircraft more marketable over other similar assets.
• The value an aircraft broker brings to the table when selling an aircraft.

Par Avion Ltd. was established in 1997 by Janine Iannarelli, an industry veteran, who saw a need to provide more personalized service within the business aircraft acquisition and sale arena. Janine discusses aircraft acquisitions and sales, as well as the topics:

• Determining the optimum aircraft model for the client’s mission.
• The benefits of utilizing a Consultant to acquire or sell an aircraft, and the overarching role a broker can play.
• The factors to consider in determining whether to acquire a New versus a Used aircraft.
• Using a team approach to complete an aircraft transaction, adding specific expertise to address legal and tax implications, along with technical oversight.
• The benefits gained through the use of a Professional Aircraft Management Company.
• Is it financially prudent to charter your aircraft?
• Deriving and justifying an Offer Price, in an acquisition, or an Ask Price, in the case of a sale.
• The appropriate level of due-diligence associated with the Pre-Purchase Inspection.
• Optimizing the value and marketability of your asset when it is time to sell.
• Thoughts on prevailing trends as the industry approaches the second half of 2020.

René Bangelsdorf discusses aircraft acquisition and disposition strategies, and her firm’s comprehensive suite of business aviation services: In Depth Research, Marketing & Sales, Acquisitions, and Advisory Services. Topics covered include:

• Determining the best aircraft to meet a first-time buyer’s private air transportation requirements.
• Points to ponder in determining whether to acquire a new versus a pre-owned aircraft.
• The benefits one can secure by utilizing an aircraft Acquisition Consultant and/or a Sales Broker.
• Factors to consider when deriving the Offer Price for an aircraft.
• The challenges of refurbishing or upgrading an in-service aircraft prior to its acquisition.
• The pre-purchase inspection – how much scrutiny is enough.
• The costs and benefits associated with Professional Aircraft Management.
• Chartering your aircraft – does it really reduce your operating cost?
• Determining the optimum time to replace your aircraft.
• Optimizing the value, and marketability, of the asset at time of sale.