Commercial aviation continues to struggle as the COVID-19 pandemic stretches on. But it’s not necessarily for lack of demand. While fewer people are flying and plane occupancy is subject to limited seating, commercial aviation has a new competitor: private jets. Private aviation has seen a significant uptick in traffic this year, in large part due to first-time travelers seeking a safe, comfortable, responsible alternative to economy-class seating.
Big-time business
Travel restrictions have long-since irritated those passengers who simply love to travel, and with the onset of COVID-19, those onerous restrictions have become even more cumbersome. As a result, more people than ever before have turned to private travel to ensure that they get transportation that’s as clean and safe as commercial travel — without all the hassle.
To underscore that increase in travel volume, Air Charter Service, the world’s largest aircraft charter company, reported in August a 51% increase in leisure bookings compared to the same month in 2019. More to the point, nearly half of ACS’ bookings in July came from first-time fliers. And who made up the bulk of those bookings? U.S. residents. In other words, if you’re in the mood to explore private travel, you’re in good company.
Book your first flight
Securing passage onboard a private jet isn’t just for those with millions of dollars to spend on their vacation. In fact, it’s remarkably simple. You can visit the website of one of several companies (like Air Charter Service, mentioned above) that operate out of every major city in the United States and fly to destinations worldwide.
Getting tickets works just like it would on any commercial airline. You’ll pick your departure and destination cities, plus the number of passengers on the flight. The costs of a private jet flight will vary greatly, depending on several factors. Are you renting the entire plane or just one seat on an otherwise open flight? How many passengers are on the manifest? How far are you going?
Although the price is higher for a standard seat on an open private jet, most passengers prefer the increase in personal amenities and customer service.
Plan carefully: Many private jets have access to smaller airstrips that are ultimately closer to your final destination. Make sure you know all the options available when planning out your itinerary.
Book early: Remember that bookings for private jets are soaring, so secure your spot as soon as possible — just as you would when buying tickets on a commercial flight.
Negotiate: You’re buying a ticket from an independent operator, not a big commercial business. That means there’s wiggle room on the price. Use the website to find a reasonable price, then pick up the phone and give the operator a call to sweeten the deal.
You’ll still need photo ID: Don’t leave home without it!
Manage your luggage weight: You’ll have more space when you book a spot on a private jet, but don’t go overboard. A commercial airline will charge you for going overweight with your luggage. A private jet company will tell you to leave it behind.
Picking the right flight doesn’t have to be a trial. You just need a little know-how and the confidence to ask a few questions. Don’t worry — if private flying becomes routine for you, you’re sure to settle in just fine.
Contact the experts at L & L International if you need assistance acquiring 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.
Discrepancy isn’t a term with good connotations. It usually means something falls short of expectations or differs from the norm. When you’re buying a jet, it’s not a word you want to encounter at any phase of the transaction. But discrepancies are something almost every used jet buyer faces. They’re a natural part of the inspection process and an important one to acknowledge before ownership of the aircraft changes hands.
Also called “squawks,” discrepancies can range from minor annoyances to major airworthiness concerns. Aircraft buyers need to understand that discrepancies exist in every used jet, and that some squawks reserve more attention than others in their ability to make or break a sale.
A small rip in one of the passenger seats of a used jet is a discrepancy. But so is a leading edge that’s out of limits. One of these issues affects airworthiness; the other is purely cosmetic. Both show up on a discrepancy report, but one of them isn’t likely to sink a sale. Realizing the severity of a squawk within the context of the plane’s condition means discerning what’s truly important versus what’s not.
Who fixes damages and what’s worth haggling over?
A discrepancy report is going to list every single thing that’s wrong with a plane — from major airworthiness issues like body corrosion and worn brakes, to minor interior scuffs and stains. As a buyer, you’ll get the complete scoop on your potential investment. It can be overwhelming, especially if the report is several pages with multiple glaring concerns.
Who fixes discrepancies? That’s the question any buyer immediately asks, and the answer truly depends on the situation. The seller is on the hook to deliver an airworthy jet, so often they’ll assume responsibility for fixing major discrepancies. For cosmetic squawks and notes of condition, the situation can get murky. For example:
The seller may be willing to cover repairs up to a certain amount, allowing the buyer to choose which squawks to address with those funds.
The buyer and seller may negotiate a list of repairs, making the sale contingent on repair completion.
The seller may come down on sale price with the condition that the buyer assumes repair costs.
The buyer and seller may use a mediator to determine a fix/no fix list before the sale.
As with any transaction, the goal is to reach a compromise. Sellers want a fair price for their used jet; buyers want a jet that’s safe and in good condition. The key to achieving this balance lies in navigating the squawk scale. Beyond airworthiness repairs, buyers and sellers need to determine what cosmetic discrepancies are low priority versus those that could waylay a deal.
Listen to the squawks and distinguish what matters
The key to understanding, resolving, and moving past discrepancies is in navigating the pre-sale discrepancy report. Reports will (hopefully) be thorough, documenting the entire scope of a discrepancy. From this documentation, buyers and sellers can tell what’s of critical importance versus what’s just static. Beware of reports with lackluster descriptions and read deeper into squawks to get a feel for their level of importance. Then, make your concerns known to the seller before the transaction is finalized.
Contact the experts at L & L International if you need assistance acquiring 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.
Buying a private jet isn’t like picking up a new car. In fact, it’s more akin to buying a small business! The financial transaction itself is massive, and as a result, the actual steps to closing the sale are more involved than many first-time buyers realize. Whether you’re making a corporate purchase or a private investment, it’s worth understanding the nuances of buying a private aircraft before you start shopping.
Before getting too deep into the process, it’s important to understand the difference between buying and leasing. We’re going to talk about buying a jet. Leasing is a great option if the financials of an outright purchase don’t make sense. However, buying an aircraft is the only way to fully control your private aviation experience.
See if the numbers add up
Before you think about securing the funds to buy a jet, make sure the math works. There’s more to it than figuring out purchase price — it’s also about knowing if you can maintain the plane and cover the many fees that go with licensing, registration, and ownership. The best way to evaluate all costs associated with a jet purchase is to use an aircraft cost calculator. Plug in the numbers and see what works for you before you consider financing.
Check your qualifications
More than likely, you’re going to end up financing a large portion of the jet you buy. In doing so, you’ll need to prove to your lender that you’re worth the loan beyond your net worth. While your wealth plays a part in financing, responsible lenders will evaluate you on several other factors:
Your credit history and reputation as a borrower
Your net worth and any existing capital assets
Your income and cash flow for repayment
Any collateral you have against defaulting on the loan
The conditions of use for the aircraft you purchase
Most lenders will also expect a report on the aircraft you’re attempting to finance. What condition is it in? What type of aircraft is it? What history of maintenance and airworthiness does it come with?
Find a lender specializing in aviation
If the math checks out and you can afford the running costs, capital investment, and finance payments, it’s time to find a lender. Many major banks are capable of handling financing for private jet purchases, but just because they offer it doesn’t automatically make them the best choice.
Now, this isn’t to say your traditional lender is a bad option. On the contrary, if you’re a high-net-worth individual that has a fruitful relationship with a regular lender, by all means, work with them! Pre-existing banking relationships often afford the same level of flexibility as aviation-specific lenders, with the added bonus of keeping your finances consolidated.
Sign on the dotted line
Assuming you check the boxes as a borrower and have a lender willing to finance your private aircraft purchase, the final step is signing on the dotted line. As is the case when you acquire a massive asset, you’ll be held to terms and conditions beholden to the lender underwriting your loan. Involve a lawyer and keep yourself engaged throughout the buying process!
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
It seems like every few years a new, modern jet hits the market ― or at least an enhanced model of an existing plane. Many jet buyers wonder if they should make the investment or buy used. And, if you buy used, how old is too old? It’s a valid question. Aviation requirements change and airworthiness directives are a common issuance. How do you know how many years of service a used jet has left in it?
Pressure and maintenance
How many years a jet has left in it depends almost entirely on its condition and maintenance record. A 20-year-old jet with a well-maintained airframe and diligent service record may still be airworthy – just look at early Learjets and Dassault Falcon models, as well as smaller Gulfstream styles. Just as easily, a late model jet that’s out of compliance and under-maintained may not be worth the investment, let alone airworthy!
But there’s more to it than good care and maintenance. It’s important to think about an aircraft’s lifespan in terms of pressurization cycles. Every time the cabin pressurizes, it’s another step toward extinction. Why? Because cabin pressurization, coupled with high-altitude external pressure, puts strain on the plane itself. And while it’s possible to replace parts damaged by metal fatigue, at some point it’s just not cost efficient.
Maintenance can help alleviate the stress of metal fatigue, but eventually every plane succumbs.
Technology evolves
Even if a jet is in good condition, it might not be worth keeping due to technology considerations. Old tech is a liability in the air, especially in light of new ADS-B standards. Sure, jet owners can shoehorn in new cockpit technologies, but the cost alone makes it extremely prohibitive for older models.
Retrofitting old cockpit tech can also spiral out of control quickly. New tech often demands modernized components in other areas of the plane. It’s a rabbit hole no jet owner wants to fall down.
Upkeep and efficiency
Any aircraft owner knows the cost of upkeep is what really determines a jet’s affordability. It can also determine how much life is left in a jet. Take, for example, a jet equipped with hush kits and winglets. Their ability to improve fuel economy may make an older, well-maintained plane more affordable to fly than a late-model stock jet.
It’s also prudent to look at range. Can your jet cover the area you need in one trip, or does it require refueling en route? Is there a comparable jet out there that could make the trip in one shot? If so, the efficiency of the new jet may antiquate your existing one.
Consider what’s important
Measuring a jet by how many years it’s been in service isn’t a good metric for determining its value or airworthiness. There are too many other factors to consider. Look at a jet holistically to determine if it’ll meet your needs for the foreseeable future or if it’s more of a liability than an asset.
The rule of thumb for examining a jet’s lifespan is to look at the rest of the fleet. Is more than half still in service? If yes, it’s worth the investment. If no, it’s an ‘end-of-life’ model that might be more trouble than it’s worth.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us anytime at +1 (305) 754-3313, or visit us online.
The clock is ticking for thousands of aircraft in the United States that have not yet gotten the necessary upgrades to meet the compliance standards of Automatic Dependent Surveillance-Broadcast (ADS-B), a new surveillance technology used for air traffic control. The January 2020 deadline is fast-approaching, but many aircraft owners are unsure of whether to make the leap.
The cost of upgrading to meet the new program’s standards can be steep, particularly for older aircraft that lack much of today’s modern tracking technology. Few options for selling jets and values that sit far below the cost of compliance may force many jet owners to retire their aircraft.
What is ADS-B?
ADS-B is a new air traffic surveillance system implemented by the Federal Airline Administration (FAA) to replace radar technology. The system has been designed to improve safety and efficiency in the air, reduce costs, and minimize the environmental impacts of flying. ADS-B is the FAA’s attempt to modernize air traffic control and improve the safety of pilots and their passengers.
Beginning January 2020, all aircraft must be equipped with ADS-B Out systems to fly in most controlled airspace. ADS-B Out provides the ability to transmit flight data to air traffic controllers and other aircraft equipment with ADS-B In, the counterpart system.
ADS-B In is not required for compliance, but the FAA encourages it to allow pilots to utilize all the benefits of the system, including weather and traffic pattern updates.
Options for owners
Although upgraded tracking systems stand to benefit the aviation industry, the FAA-mandated compliance requirements are troublesome to many aircraft owners, particularly those who own smaller aircraft such as private jets.
Cost is the major issue. For older aircraft with outdated systems, the cost of upgrading to ADS-B standards could cost owners $90,000 or more. This cost includes the need for new transponders, GPS receivers, antennas and other equipment. Newer jets may be able to trim these costs significantly, but the expense may still outweigh the value of some smaller jets. Downtime expenses are also a factor for jet owners that lease their aircraft out as a revenue stream.
The cost of not upgrading may be just as steep. Without being ADS-B compliant, aircraft will not be allowed to fly in controlled airspace. This puts a damper on many aircraft and their capabilities. If jets need to fly into this airspace regularly, the owners face a difficult choice: upgrade or retire.
Selling old aircraft at this time isn’t easy. With the FAA deadline looming over their heads, aircraft buyers are thinking to the future and purchasing already compliant aircraft. This leaves aircraft owners with the option to scrap their jets to earn back some of their investment.
If you are the owner of a private aircraft that is not yet ADS-B compliant, now is the time to weight your options. If you choose not to upgrade, you may still be able to sell your aircraft, so call an experienced aircraft broker and learn more about your options in the market.
Contact the experts at L & L International if you need assistance acquiring 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.
Owning business jets has long been a goal of company executives due to the prestige and convenience associated with private aircraft. Now, thanks to the 2017 Tax Cuts and Jobs Act (TCJA), jet ownership may become a reality for many more businesses.
The TCJA altered several existing tax laws, including many provisions regarding income tax deductions and depreciation. Previous tax law was somewhat favorable to buyers and owners of business jets. Owners attempting to sell and purchase a new model were given opportunities to avoid taxable gains. Additionally, purchasers of new aircraft were able to write off some of the aircraft expenses upfront.
The new laws may be both favorable and not to the business aviation industry. One of the major changes is allowing more businesses to take the leap into private jet ownership.
Changes to aircraft write-offs
Under the old tax law, new aircraft were eligible for a bonus deduction of up to 50 percent in the year of acquisition, followed by five or seven years of depreciation on the asset. The old law also allowed depreciation on pre-owned aircraft but followed a slower schedule.
This change is huge, largely because of the ability for buyers to purchase and write off a pre-owned aircraft — especially when it wouldn’t otherwise be economically feasible.
Elimination of “like-kind” exchanges
The second major change to the aircraft tax law is the elimination of “like-kind” exchanges when selling and purchasing an aircraft. Previously, owners were able to mitigate taxable gains from selling aircraft if they purchased similar aircraft afterwards.
The TCJA eliminates this like-kind exchange model. All gains from the sale of an aircraft must now be claimed and taxed as determined by the income tax bracket.
This change is drastic but offset by the 100 percent expensing on new and pre-owned aircraft.
Thanks to 100 percent expensing, executives are now able to purchase more expensive jets than they could before. Additionally, companies that didn’t have the option to purchase under the old tax law can now purchase either new or pre-owned jets with less difficulty.
Business jet owners must be wary, however, restrictions still exist on the new depreciation laws. The jets’ operating expenses must be reasonable for the company’s size, and aircraft must be for business use only. Entertainment expenses are disallowed, even if they are related to business activity.
Those interested in purchasing business jets under the tax law change should be cautious about whether specific aircraft will qualify for the exemption. Speak with a qualified broker to learn more about how tax law can impact your buying and selling decisions.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Typically, when you hear the words “That’s going to be a project,” it’s a red flag that indicates a lot of work over a long period of time. For those who are not up for a project, it’s best to stay away. Jet projects are no exception. Yet some looking to acquire aircraft purposefully search out such projects — and have some very good reasons for doing so. While taking on a project is not for everyone, the potential payoffs can be compelling. But how do you know whether a project aircraft is right for you?
Project aircraft benefits and pitfalls
Although many preowned jet buyers shy away from deals that require significant work and risk, project aircraft can have their benefits. In addition to discounted prices, owners have complete control over their rebuilds and can customize as they go. They can get their hands on vintage luxury and update their jets to meet their preferences. Many simply like the challenge and satisfaction of creating something uniquely their own.
But downsides to project craft exist as well. It’s often difficult to gauge whether such preowned jets will meet performance needs when completed and tough to predict total rebuild costs. Those who don’t have the necessary skills will need to find a qualified partner to retrofit the craft. Depending on the jet, a limited supply of replacement parts may be available to work with. Project aircraft buyers also need to be sure their completed jets will be ADS-B out compliant.
Finding the right project
A good prospect for a project aircraft is one with a sound structure, no corrosion or significant damage, and a good maintenance history. A project will take time, so those in the market will want to judge how much time their projects will require compared with how much time they have before they want or will need to fly in their new acquisitions. Of course, interiors are less concerning as it’s relatively easy and quite common to replace carpeting, seats, as well as other features and décor.
On the other hand, for jets that are not airworthy, buyers will need to negotiate “as-is” sales subject to engine bore inspections, logbook and maintenance research, as well as inspecting for other common issues. Would-be buyers should also research the particular models that catch their interest for any known manufacturing or performance problems.
If you’re considering taking on a project, it’s very important you estimate the potential costs of getting your project craft into the operational state and condition you desire. It’s easy to get in over your head if you’re not careful as you can quickly become upside down in your financing. The key is to work with someone familiar with preowned jets, their potential problems, negotiating points and deal breakers, as well as financing options.
If you find the right project craft, you can save money while obtaining a personalized jet that will fit your needs and desires. If the project process sounds like more than you want to deal with or you’re dealing with time constraints or other issues, a project craft may not be the best option for you. Especially if you are a first-time buyer, a new or preowned jet ready for flight might be a better fit. Whichever path you take, make sure you work with a knowledgeable professional who can help you navigate the sometimes complicated and confusing purchasing process to ensure you make a well-informed decision.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
A stalwart in the industry for more than 50 years, Bombardier Business Aircraft has one of the most comprehensive lines of jets in the industry. Its three aircraft families — Learjet, Challenger, and Global — can address the needs of customers as their travel requirements change along with their businesses. With a good start to the year and the anticipated delivery of the Global 7000 following shortly, 2018 looks to be an exciting year for Bombardier.
A good start
If the rest of 2018 is like the first quarter, business aviation insiders can expect Bombardier to have a banner year. First-quarter revenues reached $1.11 billion, a 9% increase year-over-year, and deliveries were up two jets at 31. Bombardier projects 135 deliveries in 2018, and the first deliveries of its Global 7000, sold out through 2021, will add to its already-large portfolio. The timing couldn’t be better as analysts expect the business aviation industry to continue its long-awaited turnaround.
The Bombardier family
The Challenger 350 was among the best-selling business jets in the first quarter of 2018. In addition, it was the top-selling business jet in 2017, according to General Aviation Manufacturers Association data, with 56 deliveries. In the first quarter of this year, Bombardier delivered 12 of the super-midsize jets. The Challenger 350’s popularity is a testament to the exceptional flight experience its roomy cabin, advanced cabin management system, in-flight luggage compartment access, as well as excellent connectivity and communications solutions provide. The aircraft has a range of 3,200 nautical miles, is NextGen-ready, and has the lowest operating costs in its class.
Bombardier’s flagship Global 5000 and 6000 were also top sellers with 10 deliveries combined in the first quarter of 2018. The Global series of large-cabin ultra-long-range jets is known for its comfort and style while providing the latest in business productivity tools and technologies. The Global 5000 seats up to 16 passengers and has a 5,200-nautical-mile range; the Global 6000 seats up to 17 and has a range of 6,000 nautical miles.
Global 7000: The next great business jet
The Latest: Bombardier Announces Global 5500 and 6500
Continuing its legacy of long ranges, large cabins, and smooth rides, Bombardier recently announced two new business jets: The Bombardier Global 5500 and 6500.
The Global Series will soon have another aircraft in its lineup: the Global 7000. The 7000 made its debut flight in November 2016, and the five flight test aircraft in the fleet have since accrued more than 1,800 flight hours. Certification is expected later this year with the first delivery shortly thereafter, making the 7000 Bombardier’s flagship business jet. It has a range of 7,400 nautical miles and can see speeds up to Mach 0.925; however, as its flight tests have shown, it has the capability to hit the 7,700-nautical-mile mark at Mach 0.85, positioning it to claim the long-range business jet title and opening up “city pairs such as New York to Hong Kong and Singapore to San Francisco,” according to the BJT article.
Whether you’re looking to buy a quality preowned Challenger or are in the market for state-of-the-art technology and comfort in the new Global 7000, you shouldn’t undertake the process of finding and financing a new aircraft on your own. Get help from an expert to find the best option for your needs.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Cessna’s Citation family of business jets has been a popular choice in business aviation of late. The most recent models, Latitude and Longitude, provide the quality, comfort, and performance private and business jet owners expect. Here’s a look at why these models are getting so much attention from those in the aviation industry.
Source: cessna.txtav.com
Citation Longitude
Cessna and parent company Textron Aviation’s new super-midsize Citation Longitude is in full production with FAA certification coming soon. The company completed a 31,000-nautical-mile tour last month to introduce its features and capabilities to the market.
Building on the success of the Citation Latitude, the Longitude is Cessna’s biggest jet to date. It sports a large cabin with a 6-foot ceiling and customizable interior configuration capable of seating 12 passengers. Those passengers can control the cabin management system via a mobile device app. The jet is also complete with a walk-in luggage compartment accessible during flight. Quiet flights combined with such amenities and a lower cabin altitude provide a comfortable, relaxing ride, especially on longer legs.
The Longitude’s Honeywell HTF7700L turbofan engines provide superior performance as well as a 3,500-nautical-mile range with four passengers on board. Features include a Garmin 65000 avionics suite with head-up display and enhanced vision capability. Another perk is the jet’s maintenance requirements. Designers made the aircraft as efficient as possible, increasing the maintenance interval to 800 hours or 18 months. The Longitude will have an estimated $27 million list price, according to the AIN article.
Source: cessna.txtav.com
Citation Latitude
Although most of the recent buzz about the Citation line has been centered around the Longitude’s upcoming entry into service, the Citation Latitude has been making headlines as well. In 2017, deliveries of Cessna’s popular Latitude midsize business jet increased 30% over the previous year, making it the most-delivered midsize business jet for two years running. The Latitude’s success is revitalizing the business jet market and is a clear validation of the company’s innovative product development strategy.
Praised for both comfort and performance, the 9-passenger Latitude has a spacious cabin and offers passengers 30 inches of legroom, a 6-foot-high ceiling, and a lavatory 60% larger than others in its class. It also has the lowest cabin altitude in its class at just under 6,000 feet. In addition, its fuel-efficient Pratt & Whitney PW306D1 engines provide a 2,700-nautical-mile range with four passengers on board.
If you’re looking to purchase a new business jet, it’s difficult to go wrong with the best-selling Latitude or the new-to-market Longitude. However, it’s important you choose the aircraft that best fits your needs and budget.
Perhaps a preowned Cessna is a better option for you. Wherever you are in the buying process, a professional aircraft broker can help you sort out all the details to find the right new or preowned jet for you or your business.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Global economic growth in 2017 was at its strongest since 2011. As consumers continue to grow more confident and more have expendable income, the number of commercial airline passengers is also likely to increase. In fact, the International Air Transport Association (IATA) expects a nearly 6% rise in passenger numbers to 4.3 billion in 2018. This will, in turn, drive demand for private jets, and those in the private aviation industry will need about 21,000 jets to keep up. This is good news for business and private aviation growth, but what do these numbers mean for individuals or company leaders looking to purchase or sell jets?
More people flying private
The first thing to note is that more individuals are choosing to fly private. Argus International TRAQPak data showed business aircraft activity in the U.S. and Canada continuing to increase year over year in March 2018. Activity for large-cabin jets was up 4.7%, and midsize jets also saw a 4.4% year-over-year increase. In addition, charter activity also increased by 7.7%. These increases are due, in part, to a significant surge in first-time private flyers, including more first-time jet owners. Another factor that’s spurred this increase is charter companies offering more flexible pricing and scheduling models, leading industry analysts to predict a future rise in the number of individuals who want to fly privately but can’t afford to purchase.
Pre-owned versus new markets — and their caveats
This upswing in private and business aviation is good news for manufacturers — and those in the pre-owned market. With aircraft demand up overall, more jet buyers are looking at pre-owned models rather than waiting for new aircraft deliveries that are still years away. The 100% expensing option for used aircraft under the federal tax overhaul will likely give the market a boost as well.
However, as pre-owned aircraft sales climb, jet brokers’ inventories are also falling off and were down to 9.4% of the business jet fleet in March 2018. Although the market swung to favor sellers in February of the same year, market prices have now stabilized, giving buyers reason to purchase. With such limited inventories and a stable market, those who are holding off in hopes of further price reductions may want to rethink their plans — or end up risking a very long wait.
Off-market aircraft
Of course, those who are ready to buy but not finding what they’re looking for can search off market. Off-market aircraft includes inventory that owners are not actively listing or advertising but may be willing to sell for the right price. However, this “off-market” definition could apply to 99% of the pre-owned business jet fleet. Although buyers may be pleased about the increase in the pool of aircraft potentially available for sale, off-market transactions very often lack transparency. Without listings, it’s difficult for potential buyers to know their options or compare aircraft features and prices. Therefore, in off-market deals, it’s important to involve a broker who can invest time investigating the aircraft to avoid problems during or, worse, after the transaction.
ADS-B Out compliance
One of those potential problems and another factor shaking up jet market dynamics is the looming 2020 ADS-B Out compliance deadline. With approximately 46% of the pre-owned business jets available on the market being more than 20 years old and the deadline fast approaching, installing ADS-B equipment can be time- and cost-prohibitive for many would-be buyers. This will likely leave many owners of aging aircraft grounded unless they purchase already-upgraded jets or buy new. And for those still planning to buy used, ADS-B homework will be necessary to acquire an aircraft that has the mandated upgrades to fly after 2020.
Today’s private and business jet market is a tricky landscape with so many factors affecting both new and pre-owned jets. Those wanting to purchase or sell jets should take heed and seek help from a professional who understands and knows how to navigate the market — and is willing to go the extra mile to get the best deal.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
The Latest: Bombardier Announces Global 5500 and 6500
