If you’re tired of defending your private jet investment as an essential business productivity tool, take heart. Even professional sports is recognizing the benefits of travel on private aircraft, and a number of eye-opening statistics could make it easier to justify your business jet to critics.
Professional athletes and business travelers
Professional athletes are business travelers, too, and the stress of flying takes a heavy toll on them. In fact, a 2008 study showed that traveling baseball teams that cross three time zones are 60% more likely to lose their game. The inconveniences and discomforts of commercial or even chartered flights leave athlete travelers drained, depleted, and discouraged before they even get to their destination.
Air travel’s productivity-sapping effects on athletes motivated Nike and Seattle design firm Teague to design a private jet that’s perfect for transporting professional basketball teams to away games. The concept is called Home-Team Advantage at 40,000 Feet, and was conceived to improve travel conditions for NBA team players in order to boost their chances of winning away games.
Losing isn’t in the game plan for NBA teams, and we’re willing to bet it’s not in your business’ game plan, either.
Productivity benefits of flying private
The same level of focus that enhances athletes’ productivity — recovery, sleep, circulation, and thinking time — applies to business travelers as well. A 2009 National Business Aviation Association (NBAA) survey revealed that respondents were 20% more productive on a company aircraft when compared to being in the office and 40% more productive than when traveling on a commercial aircraft.
Consider these additional facts about private jets’ productivity benefits:
- When speed is important, private jets are faster. Private jets often reach their destinations more quickly than commercial aircraft because they spend less time waiting on the ground, avoid TSA delays, and land at smaller airports with smaller crowds, which are often closer to your target destination.
- More comfort means better performance on the ground. A quiet environment, more comfortable seats, and high-quality lighting make a private jet ideal for a restful and rejuvenating flight experience versus the relative discomfort of commercial flying. All this means you arrive rested and ready for your next move.
- Better privacy makes it easier to conduct important business. The confidential environment of a private jet simply can’t be matched by any commercial flight — even in first class.
For business executives, professional athletes, and anyone else whose work requires them to be in many different places, the productivity offered by a private jet is undeniable. With the benefits of less time on the ground, a faster trip, and comfort and privacy that allows you to get work done, a private aircraft is a smart investment.
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 +1.305.754.3313, or visit us online.
The business aircraft market is looking better all the time — welcome news as the industry slowly recovers from the global economic slowdown. But it’s still a top-down recovery, with the large-cabin sector seeing the greatest growth.
Large and midsize jets drive demand
Nearly two-thirds of new business aircraft that will be delivered in the next 10 years will be large-cabin and ultra-long-range jets, reports the Teal Group. Teal’s latest forecast states that 13,030 business aircraft worth $325.6 billion will be delivered over the next decade. Large-cabin planes are driving the demand for business and private aircraft, while demand for smaller aircraft lags.
Bombardier also reports a healthy long-term outlook for the large-cabin and midsize sectors over next 20 years, with business beginning to pick up slightly through 2014 and true improvement starting in 2015. The rosy forecast, especially for large-cabin planes, mirrors the U.S. economy’s expected continuing recovery. Corporate and ultra-wealthy private aircraft buyers have more money to spend than they did several years ago — and they’re spending it on the largest, most expensive planes.
Good news for preowned jet market
The forecasts indicate that aircraft manufacturers are optimistic about corporate and wealthy buyers’ willingness to invest in new aircraft, and this outlook bodes well for the preowned jet market. Used aircraft inventories continue to decline, especially in the big jet arena. Large aircraft represent 6.2% of all preowned inventory, as reported in Bombardier’s Business Aircraft Market Forecast 2012-2031.
Lower inventories favor the sellers of preowned aircraft and spur a demand for new aircraft. In addition, lower preowned inventories have been associated with higher residual values of aircraft in recent years, per Bombardier. (The exception is 6 to 10-year-old aircraft, which still tend to be overvalued.)
Business jet owners and operators in North America are more hopeful about the bizjet industry than they’ve been in the past four years, reports JETNET iQ Surveys. Owners and operators’ confidence in the industry, coupled with their belief that business aviation has passed its nadir in the recent business cycle, should help to sustain gains in both the new and preowned aircraft markets.
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 +1 (305) 754-3313, or visit us online.
While the term “black charter,” referring to illegal airplane charter, makes aircraft operators sound like shady villains, the term actually refers to a very common occurrence in the private jet world. Specifically, if you have access to a private jet through an owner you know and you occasionally fly using that jet — including the crew the owner uses. You likely feel you’re getting a great deal; the arrangement offsets the cost of jet ownership for the private owner and it’s likely a lucrative option for you as well.
So, what’s wrong with friends helping friends? This arrangement is illegal for one simple reason: the Federal Aviation Administration (FAA) requires public charters to have an Aircraft Operating Certificate (AOC) and those operators are regulated under part 135 of the FAA regulations. Essentially, you’re hitching a ride from an acquaintance that is not a commercially licensed pilot, and that is an illegal move — for you, for the pilot, and for the jet owner.
Commercial pilots holding AOC certification are required to undergo extensive training every six months and subject themselves to regular flight reviews from senior pilots. The aircraft also undergoes routine maintenance and safety inspections by trained pros, also held to high standards.
Still, black charters are very common. In fact, some estimates by industry professionals indicate that up to 50% of all jet charters worldwide are illegal. The chances of getting caught borrowing or loaning an aircraft are not large — the FAA and DOT have their hands full — and as long as the flight proceeds without incident, there’s little chance of enforcement action.
The consequences of being caught, however, are huge, and many jet owners either don’t know about the possible penalties or they turn a blind eye to Part 135 regulations:
- Letting someone borrow a jet you own means putting your crew’s licenses on the line — even if the crew doesn’t know the flight is illegal (and they usually don’t).
- Crewmembers could have their license — their livelihood — suspended or revoked and could be assessed significant fines. As the owner of the aircraft, you could also be subjected to serious FAA fines. Whatever insurance you carry on the jet involved in a black charter could be voided if an accident occurs while it is illegally carrying a passenger.
- If you are the illegal passenger on a black charter, your only recourse in the event of an accident is to sue the owner, your friend, for your losses.
One further note — as an aircraft owner, you may escape the notice of the FAA and your insurance company, but that doesn’t mean you’re off the hook. Usually these arrangements catch the eye of the IRS, an entity that is often much better at enforcement than the FAA. If an audit reveals you allowed the use of your aircraft and crew and received money for those flights, the IRS may deem that you owe Federal excise taxes that operators are required to collect and pay for every charter flight.
Aviation may seem like an industry that’s too large and too specific for the latest e-commerce techniques to work, but don’t ignore these technologies when you’re trying to sell an aircraft; they could help you more than you think!
Aircraft sales are typically business-to-business transactions, and B2B buyers make their decisions based on some predictable factors:
- 50% of B2B buyers regularly use social media/peer reviews to make buying decisions.
- 78% of B2B buyers go directly to vendors’ websites.
While these may seem to be the actions related solely to new jet buying, these tendencies also carry over into jet resale.
Smart jet brokers are leveraging all of the latest technologies to create a relationship between the buyer and the broker. Your jet is unique — maintenance information, recent upgrades, and distinctive features can all be lost in traditional listings that set it alongside thousands of other aircraft. Tech-savvy buyers can easily miss out on seeing what makes your jet special — or seeing your jet at all.
When selling, take advantage of today’s most advantageous avenues for enticing buyers:
- Blog posts and articles — If people see the seller as a trusted resource for industry news and information, they will also trust that source to recommend the right aircraft.
- Google+ and Facebook — According to a study by Gallup, users of these sites tend to be young, affluent, and educated — the target audience for jet sales.
- Email Newsletters — Specific analytics and click reports now let brokers follow up with people who demonstrated interest in certain types of aircraft, even if they didn’t get in touch.
- Search Engine Optimization (SEO) — Getting the right eyes on the jets you are selling is ultimately the key to getting the sale. SEO can help tie your listings to relevant keywords and search terms, bringing the buyers you’re looking for to your website.
While implementing all these high-tech selling techniques can be intimidating, the power of that technology can often mean a faster aircraft sale. Partnering with a broker who leverages all these technologies and more (like L&L International) can give your aircraft the best representation and promotion.
Aside from telling the world your brand is successful and stylish, customizing your business jet may be just what you need to set yourself apart. Branding your jet is much like branding your website or your corporate office space, and it has the same effect: It sends a message. What message do you want to send?
“We’re stylish.” Perhaps your jet could use an exterior paint job to up your flashiness-factor upon arrival. Consider Prada: The fashion house is synonymous with the color black, so it’s no surprise that the company’s business jet — a Gulfstream G450 — is detailed with an all-over matte black.
“We’re detail-oriented.” When Donald Trump purchased Microsoft cofounder Paul Allen’s Boeing 757, he dropped another $100,000 to refurbish it to his gold standard of detail. According to a video tour by Amanda Miller, Trump’s assistant, the main cabin features all-leather sleeper seats adorned with the Trump family crest, 24-karat gold plated seat belts, and personal A/V systems. For business clients, showing your attention to detail can make a sale. If you want to come across as thoroughly meticulous, consider putting some capital into your jet’s interior fixtures.
“We take security seriously.” If your business takes you into dangerous areas or you’re flying someone high-profile, investing in tech-savvy gadgetry will set you apart. Look at Air Force One. While Air Force One is the call sign of any aircraft carrying the president of the United States, the actual Air Force One is one of two custom Boeing 747-200B series aircraft. Each plane has 4,000 square feet of floor space on three levels including a Presidential suite and quarters for the President’s senior advisors, Secret Service, and the press. Air Force One planes include secure communications systems, magnetic pulse-proof electronics, and the ability to refuel in-flight.
“We want total brand commitment.” Show the world your company is in it to win it! Splurging on an overhaul to make your jet’s interior, exterior, and hangar a flying reflection of your company will certainly make others stand up and take notice. Take Nike for example. Regardless of which Nike aircraft is in flight or on the ground, there’s no mistaking its owner. The company’s Gulfstream G550 is even painted to look like a sneaker, with the underside of the wings painted like the sole of the training shoes and the Nike ‘swoosh’ on the tail. And the customization doesn’t end there: The tail number (N1972N) contains the year that Nike was first incorporated. This jet, along with the company’s other branded aircraft, is housed in the customized Nike Air Hangar designed by TVA Architects, Inc.
When you’re ready to find the perfect jet to fit your message, talk with the expert jet brokers at L&L International. We’ll help you find a new jet or customize a pre-owned aircraft to fit your needs, your brand, and your message.
One of the first questions that comes to mind when it’s time to buy or sell a jet is, “How long will this take?” Of course there’s no exact answer to that question — everyone’s situation is different. There’s the market to consider, as well as the condition of the plane you’re selling and the demands for the jet you’re interested in purchasing. However, there are several scenarios that can cause jet transactions to go much more slowly than expected.
- Incorrect pricing. Whether you’re a buyer or a seller, a jet’s price tag has a huge impact on the transaction. If you’re selling a jet and it’s priced too far above market value, it may not garner any interest. And as a buyer, you want to watch out for deals that are too good to be true — unusually low prices are often signs of bigger issues you may uncover during your inspection.
- You have, or are looking for, something specific. Of course you want a business jet that meets all of your needs — capacity, efficiency, cost. But if you’re interested in a new, hard-to-find, or popular model, obtaining the ideal aircraft could take months (or years!). Similarly, if you’re selling a jet that has been highly customized to your tastes, it may take a while to find an interested buyer.
- You can’t find the right buyer or bizjet. People aren’t exactly searching the classifieds for business jets. Buyers and sellers aren’t always public — and the bizjet market spans the globe. If you don’t have the right network, you can expect to spend a lot of hours searching for the right fit.
- You have to sell before you can buy. If your new jet purchase is contingent upon the sale of your current jet, then you may find yourself in a bind. Trying to find the ideal buyer and your ideal upgrade in the same timeframe can be like waiting for the stars to align.
If you’re interested in a smooth, quick aircraft transaction, then the smartest option is contacting a jet broker. Brokers have established relationships with buyers and sellers around the globe — and even have access to off-market and unadvertised inventory. Plus, they take the frustration out of the process: A skilled broker will efficiently identify what you’re looking for, handle negotiations, and manage closing. They’ll even juggle the sale of an old aircraft with the purchase of a new one.
You’re busy. Waiting around to buy or sell a jet may keep you grounded longer than you can afford. Let the brokers at L & L International ensure the plane you’re buying or selling spends as little time on the market as possible!
Oct. 14 is on the horizon! It’s Columbus Day, which celebrates Christopher Columbus landing in the Americas in 1492. After negotiating generous compensation with King Ferdinand of Spain for both the financing of the voyage and profit sharing from discovered lands, he sailed three ships into uncharted territories. While controversy surrounds both the man and the holiday, one thing is certain: Columbus was an adventurous businessman.
There is no lack of adventurous businesspeople in our modern world. We are still inspired to go the distance to make the deal. Fortunately, we no longer have to launch ships and spend months getting to our destinations. Private jets are reaching farther distances without refueling. The newest offering from Gulfstream, the G650, has a range of 7,000 nautical miles — that’s New York to Tokyo nonstop, or about twice the distance of Columbus’ initial voyage to the new world.
These large, long-range jets won’t slow you down; in fact, they keep getting faster. It took Columbus five weeks to cross the sea. Now you can make that same trip in less than nine hours, making your global business ventures both practical and appealing. And because there are so many airports to land at in your private jet, you’ll get closer to your final destination than you would if you had to take a commercial flight (or a ship). This saves hours of lost work time.
Today’s long-range jets also have luxurious on-board amenities that allow you to stay connected and keep your business moving, even while you’re in the air. Comfortable work areas and on-board Wi-Fi make your private jet an office in the sky. Many jets even offer real beds and showers to make sure you’re ready for your meeting when you arrive.
These jets are optimal for modern day explorers. You can take your business farther, see more of the world, and enter new markets with a long-range business jet. L&L International can help you find the aircraft that’s right for your business and travel needs, whether you’re interested in taking your business to Dallas or Dubai. Connect with one of our brokers today and they’ll start the search for the perfect jet immediately. You’ll be exploring in no time!
Dining in the air can lend itself to unhealthy and unsavory habits. The jet set crowd is often bombarded with snack foods and meals packed with preservatives. But there’s another way! Impress business associates and your taste buds with a memorable dining experience in the skies.
Air Culinaire Worldwide is redefining in-flight catering. They’re goal is to deliver not just food, but a culinary experience for passengers. World-class educated chefs create fresh, made-from-scratch meals from local, sustainable, high-quality ingredients. With constantly evolving menus, Air Culinaire offers regional cuisine as well as dishes inspired by your favorite global fare. In addition to delicious menus, their chefs can work with you to design a selection that best suits your passengers’ tastes while maintaining the highest standards of artisanship and freshness.
No matter where you are in the world, Air Culinaire is ready to handle your catering experience. This ultra-convenient service has hundreds of locations around the globe and allows you to order through several platforms: phone, email, or fax; through their website; or via a proprietary order management platform that integrates with a variety of flight-planning software.
Air travel doesn’t have to be endured — with Air Culinaire, it can be savored.
With the tight economy and widespread news of corporate misconduct, misperceptions about corporate jet ownership and use are common. You know a business jet keeps your company competitive in your industry, but it’s still an investment you have to validate to stakeholders, the media, and employees. Even if your company already owns a jet, you need to be prepared to support the aircraft’s continued use in the event of executive turnover.
Be ready to answer a variety of questions about your corporate aircraft:
- Who will use the corporate jet?
- How much money and time will it save over commercial travel?
A handy resource that highlights other common questions about business aviation is available at NBAA.org. The key to addressing all of these concerns is to be prepared with honest, well-documented answers. Clear and concise language outlining the benefits of a business jet will make it easier to garner support.
Highlight the benefits of private jet travel, which include time savings, increased flexibility and reliability, improved productivity, the ability to better support your customers, and the capability to attract and retain key personnel.
If your company already benefits from a business jet, then keep track of supporting documentation showing the jet is an essential business tool. Was a business trip reduced from three days to one as a result of the corporate jet? Show how much your company saved on travel expenses. Or perhaps your sales team was able to meet with 10 new prospects in five days. Make it clear your sales figures have improved because travel time is cut drastically by employing the company jet.
In addition, you can gain detailed insight into the ins and outs of owning a corporate jet by consulting an expert. L&L International can show you the many justifiable benefits of corporate jet ownership. Our experienced brokers will help you find the perfect aircraft for your business’s needs — making the advantages of your bizjet crystal clear.
Last week, we wrote about the current market trends in aviation. While it’s a mixed bag, Gulfstream and Bombardier are leading the way, as well as large-cabin corporate jets. Private air travel helps companies conduct business. But how they are getting aboard?
Some companies are turning to the convenience of corporate jet ownership. This is especially true for global enterprises. The desire to expand internationally has increased the number of large-cabin corporate jet deliveries, as these aircraft allow longer-range flights with more people aboard. These jets are often used by companies wanting to get into new and developing markets like Eastern Europe and Russia.
One of the other bizav trends is refurbishing older corporate jets. This gives a company the convenience of a private jet without the costs of purchasing a new one. Companies in developing markets are more likely to refurbish, allowing them to take advantage of the preowned jet market. Refurbishing is especially popular option for companies in Africa and South America.
Charter services and leasing options are filling the gap for companies that want the convenience of private jet ownership but don’t travel enough to warrant owning a jet outright. Online charter companies allow you to search for available private jets, much in the same way travel sites allowed you to book a seat on a commercial flight. Some bizav companies allow you to lease a private jet for 6- or 12-months at a time. Fractional ownership is another way to avoid taking on the cost and liability on your own, although you’ll find yourself having to work around the schedules of other people more often.
Trends like chartering are great for companies that own corporate jets, too. This is an opportunity for your company to defray some of your own costs. You’ll retain control of your jet but offer it up to others for a fee when it’s not being used. There are many websites that allow you to list your jet’s availability for a monthly charge.
Private jet travel is beneficial for any company working in international markets. Being able to meet face-to-face with international clients will save your company time and trouble in the long run. You’ll also have an edge over competitors who aren’t able to make that trip whenever needed. Private jets help businesspeople get business done.