Imagine you’re visiting a foreign locale where the culture and currency are very different from your native country. You hire a local guide for the day and ask him to help you navigate a large open-air market. As you wind through the crowd, merchants call out to you in an unfamiliar language, urging you to buy. Your head spins in confusion as your stomach churns with hunger.
A nearby stall is displaying an assortment of unfamiliar edibles which look fresh enough. Your guide, however, shakes his head and leads you to another vendor. After some haggling, you’re feasting on a special local delicacy of the freshest quality at a surprisingly reasonable price.
The critical role of the broker
This scenario is not very different from the challenges of purchasing a private aircraft. Yes, you can explore the market on your own, but a local guide — in this case, your broker — can help you avoid the traps and pitfalls you might never see coming.
Aoife O’Sullivan, partner at London-based Gates and Partners and author of the industry white paper The Gold Standard in Private and Corporate Jet Sales, cautions that “buying a business or private jet for the uninitiated (and, indeed, even for those familiar with the industry) is a complicated, expensive and potentially hazardous jaunt into the unknown.”
Don’t be fooled by that new-plane smell
Most private jet purchasers are surprised at how complicated the buying process can be, even for a new plane available directly from the manufacturer. Says O’Sullivan, “Manufacturers can have a soft side, and the good brokers know how to negotiate a better deal for buyers whether in the form of price, elevated delivery date, and additional perks for credits such as additional training or increased warranty periods.”
In other words, a trusted broker knows the manufacturer’s pressure points and how to leverage them to maximize every dollar spent on a new aircraft.
The pre-owned advantage
In the pre-owned market, an experienced, professional broker has the inside track on available inventory and pricing fluctuations. Plus, your broker is familiar with lesser-known sources of quality aircraft — often tapping into those channels before the product becomes widely available for sale on the Internet or through other public means.
O’Sullivan adds that “the broker who has a long-term relationship with the buyer or seller will also have an in-depth knowledge of the history of the aircraft and can be a valuable source of information when researching title, whether there has been any damage to the aircraft, etc.”
Very few decisions are as significant and weighty as choosing a private aircraft, but it doesn’t have to be daunting, frustrating or risky. Partner with the right broker and along with the thrill of owning a private aircraft, you’ll uncover the best value for every dollar you spend.
Contact L & L International if you need assistance in purchasing or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at 877-453-8276 (+1.305.754.3313) or visit us online.
Some say that baseball is America’s favorite pastime, but if you ask me, no sport is more American than football. There are so many more traditions built around the Super Bowl than the World Series. The parties. The commercials. The half-time show (I thought Bruce Springsteen was the best!). The tail-gating. The beer. The wings.
The private jets.
Serious fans obviously can’t miss the big game, and they won’t risk flight delays or tarmac waits to get to Indianapolis this year. When the Patriots take on the Giants on Feb. 5, Gisele Bündchen won’t be the only one who arrives in style.
Private jet companies expect to break the record of 611 private flights to the Super Bowl set in Dallas, Texas, in 2011 when the Steelers lost to the Packers. Considering that many fans will be traveling from Boston and New York City, two of the wealthiest cities in the U.S., the record seems reachable.
Indiana airports are feeling the pressure. The FAA has set up temporary towers to accommodate the extra traffic at three airports. Indianapolis Regional Airport is already near capacity and has a wait list for larger aircraft.
Here’s a look at the New York Giants’ flight to San Francisco to win the NFC championship game. The Patriots have enjoyed home field advantage, so their first flight of the playoffs will be on Jan. 29.
Who are you cheering for in the Super Bowl? And more importantly, how are you getting there?
Stories of air rage continue to pop up in the media, including the recent and well-publicized battle between Alec Baldwin and American Airlines. Managers of commercial airports recognize that air travel is often unpleasant and stressful for consumers. In response, airports are scrambling to find new ways to provide better customer service, reduce frustrations and manage flight schedules at or near maximum capacity levels.
CAP Strategic Research, an aviation market research and consultancy firm, predicts several significant trends headed to airports around the world over the next 10 to 15 years.
Check-in is out
Say goodbye to check-in counters. Travelers in 20 years will check in to their flights exclusively from their homes, offices or mobile devices before arriving at the airport.
Unfortunately, as long check-in lines are eliminated, so is the sometimes necessary option of transporting extra or oversize bags. In the near future, whatever doesn’t fit into a single carry-on ships via special arrangement through a separate cargo carrier.
High-tech becomes a high priority
Advances in biometric technology, using facial, iris or palm scan, provide flyers with the option to fast-track through lines at security. For an extra fee, frequent business travelers apply in advance for “trusted traveler” status, allowing them to circumvent security checks completely.
Immigration and emigration processing is streamlined and automated as traveler data and security information is instantly shared through computerized systems around the world.
Finally, thanks to better airplane design, engines are quieter, allowing flights to depart in the middle of the night without disturbing the homes and neighborhoods situated close to the airport.
Why wait until 2025?
For many business travelers, the future has already arrived. Business travelers using private jets already enjoy perks that allow them to skip past security lines and follow minimal immigration/emigration processing.
Additionally, flying privately today allows for flexible departure schedules, open seating, and the convenience of toting extra luggage. Plus, once in the air, the private jet becomes either a flying boardroom or bedroom, where work or rest occurs without disruption or distraction.
Perhaps Alec Baldwin should consider these benefits before he steps on another commercial flight.
Much has been made of the Obama administration’s plan to reorganize funding for air traffic control. General aviation has always paid for air traffic control through a fuel tax. Now, Obama plans to change that to a flat fee — $100 per flight.
This proposed fee, projected to raise $11 billion before 2022, was unveiled Sept.19, 2011. Every flight within controlled air space will be required to pay the fee, with the following exceptions:
- Recreational piston aircraft
Immediately after the proposed fee was announced, general aviation groups cried foul. The backlash comprises a few major arguments:
- General aviation already pays for air traffic control with fuel tax.
- Government should encourage general aviation as an economy-builder rather than adding fees.
- More bureaucracy would be needed to collect the fee.
Some 9,000 individual opponents to the suggested $100-per-flight fee signed a petition demanding the White House drop the proposal. They received their answer on Friday, Jan. 13, 2011, when the associate director of general governmental programs, Dana Hyde, repeated the White House opinion that the fee is necessary for air traffic control.
What do you think? Does the fee level the playing field or unfairly target business aviation? Does the current fuel-tax system work?
The media and general public may not understand the value of private aircraft, but successful businesses do. Private jets are not for show and comfort. Rather, they are an important — often indispensable — tool in the battle for business, especially as many companies are fighting their way out of recession.
Frequent business travelers say private aircraft offer several advantages.
- Provide more time to spend with family
- Reach numerous destinations quickly
- Eliminate common safety issues associated with commercial flights
Better efficiency, better business
Even beyond these practical advantages, private aircraft deliver measurable ROI for the businesses that use them. According to the study Business Aviation: An Enterprise Value Perspective — The S&P 500 from 2003-2009, private airplane users outperform non-users in revenue growth, profit growth and asset efficiency.
The study demonstrates that, compared to non-users, private aircraft users
- see 116 percent higher average annual revenue growth
- realize 434 percent higher annual earnings growth
- average 81 percent higher annual earnings before interest and taxes
- see 496 percent higher market capitalization growth
Whether before, during or after the significant decline in the business aviation market in 2008, business jet users substantially outperform non-users in nearly every analyzed financial category.
Jet market continues to rebound
Business executives who understand these advantages continue to invest in private aircraft. The private jet industry has certainly experienced its share of turbulent weather during the recession and the slow, ongoing recovery. However, many experts believe the worst is behind it, according to a May 2011 New York Times report.
In the report, Richard Aboulafia, an aviation analyst at the Teal Group in Fairfax, Va., says, “The overall market has stopped falling, and 2011 deliveries are likely to be about level with last year. For next year, leading indicators are pointing to renewed growth, with the pool of available aircraft in the used jet market shrinking, although prices for used planes are still soft.”
The New York Times report also notes that typically, as recovery sets in, returning buyers first hunt for bargains on pre-owned planes and then start to look at new models. Experts at L&L suggest that if you will be in the market for a pre-owned jet soon, you might begin looking now.
Several lengthy reports and laundry lists of expectations for the state of the business aviation market have been released over the past couple of months and weeks. Corporate Jet Insider took some time to compile the data into a quickly accessible, easy-to-digest format. Thanks to the good people at Conklin & deDecker and Aviation International News for doing the heavy lifting.
The forecast for 2012 is mixed: growth in some areas and decline in others. Overall, expect more growth, but slower than was anticipated in 2009.
Contributing Factors
- Slowing growth in BRIC countries
- Sputtering growth of U.S. economy
Sales forecast by aircraft type
- Large cabin jets — increase in sales (funded by the corporate profits)
- Small and medium cabin jets — flat
- Piston market — last to recover
- Helicopters — largely dependent on oil prices (which are expected to be stable)
Honeywell’s predictions
New jets: Expect 11 percent decline in new jet deliveries in 2012
Used jets: Prices still below 2008 levels, but uptick in demand through 2017
You can read the FAA Aerospace Forecasts FY 2011-2031 for more in-depth analysis for the coming decades.
All in all, a mixed bag for business aviation continues. It is still a buyer’s market, but as long as the U.S. economy s l o w l y improves, the aviation market will demonstrate very modest gains. The European debt situation may also significantly affect growth stateside.
Most people don’t think twice about taking a breath — but breathing is nothing to take for granted on an aircraft.
Too close for breathing comfort
The close quarters of a private jet — with limited breathing room — can increase the risk of catching an infection. In addition, pollutants such as engine fumes leaking into the cabin may pose a threat to the health of crew and passengers alike.
An aircraft cabin exposes occupants to outside and recirculated air, just like a home or office. On an aircraft, however, people are much closer together. Also, occupants can’t leave at will, and the aircraft interior must be pressurized.
Without ozone converters, elevated concentrations of ozone occur on aircraft, causing airway irritation and reduced lung function.
Technologies are available to address the issue of infections, contaminants and pollutants. AirManager, an air-sanitizing system adapted from one used in hospitals and nursing homes, can eliminate bacteria, viruses and other biohazards. It also destroys chemical pollutants and removes unpleasant smells.
Pressure rises
Pressure is also a breathing issue on aircraft. At 8,000 feet, a passenger’s oxygen intake is reduced by about 4 percent — not enough to cause harm, but enough to make passengers feel fatigue. Small children and people with cardio or pulmonary ailments may experience serious health effects.
But some aircraft manufacturers are working to combat the effects of pressurization. Some 2012 Gulfstream models, for example, will include technology that keeps cabin pressure equivalent to 2,800 feet, even when the aircraft is cruising at 41,000 feet.
If you require specific equipment or accommodations in your private aircraft, you can breathe easier with the help of a private jet broker. A professional broker can quickly locate the aircraft with just the features you need.
That’s right. As of Dec. 15, 2011, the FAA approved pilots to use iPads to replace the paper-based flight bag on American Airlines. While some joke about the possibility of pilots playing Angry Birds or updating Facebook, nearly three weeks later, we haven’t heard of any dire consequences.
The iPad is replacing paper navigational charts and manuals for the operation of the aircraft. Weighing in at 38 pounds and 12,000 sheets of paper, the flight bag is a hefty item for pilots to tote around. However, the iPad only weighs 1.5 pounds. It seems like it would much easier to find answers in an intuitive iPad app rather than rifling through 12,000 sheets of paper.
American Airlines has additional plans in mind for the tablets. Flight attendants and pilots will also use the iPads in emergency situations to communicate with professionals on the ground through the InFlight911 Services.
Less paper, less weight, quicker access to manuals, better communication with the ground — iPads on planes seem like an obvious innovation. Perhaps the naysayers are just jealous that they still have to use their iPads in airplane mode during a flight?
Although some mechanics are qualified to work on only certain aircraft components, airframe and powerplant mechanics (A&Ps) are certified by the FAA to work on every part of a plane, except instrumentation.
An A&P performs regular and routine inspection of the aircraft and keeps accurate records and documentation, ensuring compliance with FAA regulations. A&Ps are trained to diagnose and repair issues efficiently — but always with an emphasis on safety — to ensure the aircraft can be flown when needed.
To become FAA-certified, A&Ps must first receive practical experience or training by one of the following methods:
- Successful completion of a 12- to 24-month training program through an FAA-certified school
- Completing at least 30 months of aircraft repair and maintenance under the supervision of an FAA-certified mechanic
- Military service, usually augmented with additional study and/or work experience in a civilian environment
After satisfactory completion of the classroom or on-the-job training, A&Ps are then eligible to sit for a series of oral, written and practical exams administered by the FAA.
Specialized skills
As aircraft system design becomes increasingly sophisticated, A&Ps must be exceptionally computer-savvy. Mechanics use computerized diagnostic equipment to test and monitor all aircraft components, including the engine, propellers, powerplant and hydraulics. It’s also essential that mechanics keep abreast of the latest technological advances with continuing education and training.
Hiring a dedicated A&P (as opposed to using a repair service center) allows the technician to become familiar with the maintenance and repair history of your aircraft. Also, the A&P who works directly for the aircraft owner is apt to be invested in providing consistent, high-quality service. That knowledge and commitment translates to more accurate assessment of the jet’s overall health, better communication with the pilot and speedier repair times.
Hiring a qualified, professional A&P is critical, so request recommendations from other jet owners, check references and request proof of FAA certification. The extra effort you make to find the right mechanic will result in peace of mind down the road.
