Month: April 2014

The Preowned Business Jet Market Stages a Comeback

Good news for aircraft owners who are looking to sell: JETNET’s year-end market report indicates that the inventory of preowned business jets for sale was down by almost 1% in 2013. In fact, 2013 year-end inventories of preowned business jets were at their lowest point since 2007.

Encouraging signs for sellers

It’s not quite a seller’s market yet, but for aircraft owners — especially owners of heavyweight aircraft — the signs are encouraging. In 2013, full-sale transactions for preowned business jets were up by 0.6% from 2012. In addition, these bizjets showed the largest gain in average asking prices, posting an increase of 10.7% year-over-year.

However, it took longer to sell these aircraft: The average days on the market for preowned business jets increased by 20 days to 391 days in 2013. Significantly, retail sales transactions increased only for some weight classes of preowned business jets:  heavy and medium-weight, which grew by 5.7% and 2.3%, respectively. Lightweight preowned aircraft sales declined by 4.2%.

The decline in sales of smaller preowned business aircraft is consistent with the ongoing trend of the business jet market splitting into distinct, unequal segments. The market has seen considerable bifurcation in the past five years, with the very wealthy clamoring to purchase brand-new, large, luxury aircraft, leaving the small- and preowned-small jet market floundering. However, things are looking up for the preowned jet market as young, wealthy Chinese buyers are recognizing the value of used aircraft and are partially responsible for driving the increased demand.

What to expect

What do these trends mean for preowned jet owners, buyers, and sellers? For owners who are looking to sell heavy- and mid-weight-class business jets, the market is more favorable than it has been in several years. Large-cabin private jet owners are in an especially advantageous position, as demand for these aircraft continues to grow. However, sellers will need to remain patient, as sales could take a year or longer to close.

The bottom line is this: Even though the market is more amenable to sellers, it is still a buyer’s market, with inventories above 10% and preowned for-sale business jets staying on the market longer.

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.

Flying Private Gets More Flexible

It used to be that the only alternative to flying commercially was to pay millions to purchase your own private jet. Now, there are more options and some innovative new ventures that make it easier for infrequent travelers who still want the freedom and flexibility a private jet provides.

Private flight alternatives

Up until recently, there were only a few options for flying privately without owning a jet:

  • Jet chartering, which is popular, but has also proven to be financially inefficient due to empty return flights.
  • Fractional ownership, which is another popular option but still ultimately expensive for the number of flight hours you get when maintenance and fuel costs are factored in.
  • Jet cards, which are used to prepay for a set number of flight hours that can then be used at will.

Each of these options has its drawbacks, but during the recent economic crisis, less expensive alternatives to private flight were necessary. Many jet companies and corporate travelers tried to make the best of a bad situation by coming up with more creative options for flying private. As the industry tries to find ways to make private jet flight economical, we’re seeing a lot of innovation surface. Here are two recently launched ventures attempting to make private flight more flexible.

Brokering empty legs: Fresh Jets

Timmy Wozniak, who previously worked for a guest services company, estimates that 33% of charter jets are vacant for one leg of the flight. That’s why he and business partner Johnny Sengelmann launched Fresh Jets: a service that offers the available seating on empty flight legs to their website’s users.

About 410 companies and more than 1,400 individuals have signed up for the free website’s service so far, and jet operators pay the company a licensing fee to be listed on the site.

Cutting out the middlemen: Returnjet

In another creative move, Mark Blanchfield has launched Returnjet, which lets globetrotters search for and reserve private planes using a website that cuts brokers out of the equation and substantially reduces the cost of chartering a private jet. By connecting people who need to fly with already-scheduled flights, Returnjet helps customers save costs by sharing flights.

Taking advantage of the fact that 40% of private jet flights (an even higher number than the vacant legs on charter flights) are empty, this new UK-based business has already signed up two-thirds of the UK’s private jet operators and gives jet-setting customers more choices.

Despite the state of the economy, travelers still want to fly in private jets. Instead of crushing the private flight business, the economic downturn has spurred innovations that are making private flight more accessible.

Top 4 Destinations for Easter Travel

Whether you enjoy the Easter holiday for its religious significance or simply for the eggs and bunnies, there are plenty of fun places to celebrate this iconic springtime holiday. Try one of these unique destinations for an Easter getaway.

Semana Santa in Madrid

The Semana Santa is Holy Week and one of the primary religious celebrations in Madrid, where Easter traditions have existed since the 15th century. There are many parades — as many as 20 in one week! — and traditional ceremonies that ensure you will have something to do every day that you’re there.

If you’re looking for Easter to be a cultural learning experience, Madrid’s Semana Santa is an excellent choice.

White House Egg Roll in Washington, D.C

This year will be the 136th annual White House Easter Egg Roll, a tradition since 1878. The Easter Egg Roll isn’t just a great event for the kids: 30,000 adults and children are expected to assemble on the south lawn to join in the fun.

The event features live music, storytelling, cooking stations, and more. You can also pick up a souvenir egg to prove you spent Easter hanging out on the President of the United States’ lawn!

Good Friday and Easter Week processions in Rome

The days leading up to Easter are often filled with religious ceremonies with longstanding traditions, rituals, and high-energy celebrations. If Easter is a religious holiday for you, consider spending it in Rome.

Dramatic processions are a highlight of Easter in Rome, including a 24-hour-long Good Friday procession known as Misteri di Trapani. Many towns hold live Easter plays, and the Pope celebrates mass in St. Peter’s Square.

Red Rocks Sunrise Service in Denver

Many places have sunrise services to celebrate Easter. One of those is perhaps most notable for its location: Red Rocks, the stunningly beautiful outdoor amphitheater near Denver, Colo. There’s free admission and parking, although a donation of non-perishable foods is requested.

The Reverend Dr. Jim Ryan has been holding this service for over 13 years, and this is to be his final Easter service. More than 10,000 people attend every year.

Whether you want a spiritual journey, a cultural and educational experience, or simply a fun trip this spring, a visit to one these destinations might be just the thing to help you shake off the winter blues and get ready for summer.

Proposed BizAv TSA Regulation Changes Met with Backlash

Some of the latest news from Washington is about recently revised security guidelines for private aircraft weighing more than 12,500 lbs (roughly the size of a Beechcraft King Air 250 turboprop): The Transportation Security Administration (TSA) has proposed requiring all aircraft with a maximum takeoff weight above 12,500 pounds adopt a large aircraft security program based on the current protocols that apply to operators providing scheduled or charter services.

The reasons beyond the TSA proposed changes include the fact that even a plane of smaller weight could do a lot of damage if hijacked — especially if packed with explosives or other dangerous materials. According to Michal Morgan, the TSA head of general aviation security, “It’s the evolution of security into a new operating environment.”

The proposal is set to take effect next year and be phased in over the two following years with 85% of the costs being paid by jet owners. The changes are expected to affect approximately 15,000 corporate jets and 315 small airports across the country.

As may have been expected, the jet-owning community has responded with some backlash. When the TSA published Security Guidelines for General Aviation Airports in 2004, the general aviation trade associations willingly adapted to many of the recommendations and developed security programs for their members. Many private jet owners have spoken out, stating that not only does the TSA not understand their industry (with restrictions on carry-on items like golf clubs and tools) but also that they fail to recognize the self-policing efforts (including strict recordkeeping) already implemented.

In response to the backlash, the TSA has restarted the Aviation Security Advisory Committee it inherited from the FAA and members will vet policy changes. Indications are that the community can expect a decision soon.

In the meantime, it is important to pay close attention to security mandates, including researching your destination carefully, ensuring that passengers and crew have emergency numbers to call and that they check in at home regularly, and ensuring that security regulations regarding international travel are strictly adhered to.

Whether security regulations end up being adjusted or not, the aviation industry has the opportunity right now to demonstrate excellent security through our current systems.

Don’t Be an April Fool: How a Jet Broker Can Simplify Your Used Aircraft Purchase

An aircraft is a big ticket item, and the purchase of one involves a number of choices and decisions — each of which can make a big difference in your comfort and enjoyment of your private aircraft. Most experts say buying an aircraft is more like buying real estate than buying a car, even though a jet is a vehicle. This is because the process involves

  • complicated negotiations,
  • lots of necessary inspections, and
  • the correct insurance.

When you are ready to purchase a private aircraft, it’s a good idea to take full advantage of professional, experienced, knowledgeable brokers who understand the industry and can streamline the process for you.

How does a jet broker work?

One of the most important benefits of an experienced jet broker is that they have the right industry connections to get a good appraisal of a potential aircraft for you, your lender, and/or insurance company. They also have access to planes that are not yet on the open market, much like a good real estate agent knows what properties are likely to become available with the right incentives.

An experienced jet broker will ask the kinds of questions that reveal what type of jet you want and need — for instance, an entire jet is not always the right choice when a charter service or fractional ownership will work just as well. A jet broker will also know how to help you determine the size and type of aircraft that will best meet your needs. In addition, a jet broker’s goal is to ensure that your purchase is a good investment.

How do you choose a jet broker?

The best way to choose a jet broker who will do their best work for you is to start by finding one who

  • has at least five years of experience in the industry,
  • can clearly explain their process and their added value,
  • has references they are willing to share with you, and
  • can describe their brokerage fees willingly.

L&L International has all of the above, as well as the experience and drive to help make your aircraft purchase a smooth process.