It’s not just your imagination: Sales of pre-owned aircraft have climbed and inventory has shrunk.
JetNet reports that pre-owned business aircraft sale transactions between January and July increased 11.2 percent compared with the same seven-month period in 2010, and turboprop sales increased 3.7 percent. Pre-owned inventories continued to decline gradually in July, to 13.7 percent for business jets and 10.1 percent for business turboprops versus the same month last year, representing 1.2 percent and 0.8 percent drops in inventories, respectively.
This trend means that if you’re in the market for a pre-owned jet, you’ll spend more time looking for the aircraft you want — and finding fewer options. That is, unless you work with a jet broker.
Less pain, more plane
Using a jet broker takes the pain out of buying an aircraft. You don’t have to waste valuable time searching through private jet sales listings, inspecting and haggling over the jet: You simply let an expert do it for you.
Companies such as L&L International will take down your requirements, work with you to refine them to meet your budget and business needs, and procure the perfect lease or finance plan for the acquisition of the aircraft. Your involvement consists of making the final selection and signing the bill of sale.
You may not know exactly which type of private jet is most suitable for your needs, but a jet broker can help you understand your options.
Dedicated service for sellers and buyers
If you already have a personal or corporate jet, you may find that you need to upgrade to a jet that carries more passengers, is capable of longer flights or is more luxurious than your current aircraft. If you have a jet for sale and also want to buy a new model, a jet broker is a valuable asset.
You are likely too busy to put in the dedicated hours required to secure both the best price for your own jet and for the jet you want to purchase. It’s your jet broker’s job to work tirelessly on your behalf to secure the best deal. Brokers have good relationships developed throughout the world of buying and selling jets. Thus, they are in the best position to research not only the best aircraft on the market, but also the best off-market deals.
In today’s market, a jet broker’s insider knowledge saves you time and effort — and presents opportunities you don’t want to fly by.
Check out these great jets available from L and L International. Please contact us with any questions.
The FAA launched a new campaign on Nov. 8, 2011, asking the entire GA community to increase its reporting of wildlife collisions with aircraft. The main outreach component of the effort includes the printing and distribution of 12,000 posters to the GA community. The poster, “Report Wildlife Strikes,” is designed for frequently used areas, like training and break rooms.
The Wright Brothers documented the first aircraft-wildlife collision in 1905 in Dayton, Ohio. Obviously, aircraft and birds have endured a tenuous relationship since the beginning of air travel.
The FAA has had a wildlife hazard management program in effect for more than 50 years. From 1990-2010, more than 121,000 strikes were reported, but only 6 percent of these instances were from GA. The FAA is trying to change that. The factsheet released Nov. 8 explains innovations the agency has made to make wildlife hazard reporting easier.
- The poster contains a QR code, so anyone with a smartphone that is QR-code equipped can report a wildlife strike.
- The FAA set up a new website that easily allows users to report an incident.
Wildlife strikes endanger human and animal lives, and they cause significant damage to private property. You can see the aftermath of these collisions at a gallery on the wildlife mitigation website. Access to comprehensive data about the number of incidents, localities and the species involved allows researchers and officials to improve safety at airports and in the air.
If you’re considering purchasing a private aircraft for your business, you’re not alone.
Recent trends indicate that business aviation activity is gaining ground. That means if you’re considering buying a jet, finding the right one at the right price will present more challenges.
Flight and manufacturing activity on the upswing
Aviation International News (AIN) reports that Part 91 flights (owner-operated aircraft) saw a year-over-year climb of 4.9 percent in August, and Part 91 light jet activity increased 10.3 percent.
Jet manufacturers and pundits also reported improvements in the market compared with last year:
- Gulfstream sales are expected to be up 14 to 15 percent this year, and the company’s production backlog includes orders for more than 200 G650s.
- Dassault Aviation Chairman Charles Edelstenne reports that its order intake for new Falcons in the first half of 2011 was 22 units, compared with orders for just two jets in the same period of 2010.
- Although business jet deliveries will remain flat this year at about 549 aircraft, they could rise to more than 650 next year, according to JPMorgan North American Equity Research’s latest business jet monthly report.
Tightening the search radius
Although an improving market is good news, it presents challenges for those looking to purchase a jet.
- More competition with other buyers in the market
- Longer wait for a new aircraft
- More limited inventory of used aircraft
To find the right aircraft at the right price, you’ll need insider information and expertise. That’s where a professional jet broker comes in.
Jet brokers consult closely with you about your requirements and constraints to discover the private jet that is most appropriate for you. They have in-depth knowledge of the available pre-owned jets for sale and can broker the purchase and the sale of private jets, using their own market and off-market connections. By knowing when “jets for sale” ads are about to come up, jet brokers ensure their clients are the first in the line for the perfect private jet.
Jet brokers will work with you to negotiate terms with the seller and even help you to procure financing and insurance. Your best bet for a good deal on a pre-owned jet is to rely on the expertise of a professional jet broker.
After talking about the NBA lockout and private jets I did some follow up research and found some interesting news related to the NBA and corporate jets. I have actually met and talked with Mark Cuban in Las Vegas in 2007 and he had flown into Vegas on one of his own private jets to speak at an event and conference where I was speaking. I didn’t get a chance to see his aircraft then but it was of note that he has not one but three private jets. Cuban of course is the owner of the world champion Dallas Mavericks.
Cuban’s Gulfstream G-550 was a $40Million purchase he actually made online. The interesting fact there is that he purchased the Gulfstream online making it the largest online transaction ever made by anyone. Cuban also is the owner of a Boeing 757 that is the team’s method of travel. The 757 includes a weight room and over sized seats for the tall team members, as well as meeting and coaching areas that includes the ability to view video of games and other resources. Cuban obviously understands what it is like to have a private corporate jet. He stated in an interview of his aircraft that it allows him the freedom and privacy he needs and has gone as far as to say he cannot live without his corporate jets. Cuban also owns a Boeing 767 that he has for charter.
The other NBA player and part owner of the Charlotte Bobcats is the very well known Michael Jordan. Jordan’s Gulfstream IV is listed as having an N-Number of N236MJ meaning his number of his jersey as 23 and the 6 representing the number of championships he won as a player in the NBA. The other notable information in the picture that was put out by Yardbarker is that Michael Jordan has put his logo on the tail and the color of the plane is the Carolina Blue of UNC where Jordan attended college and played. I also understand that when the plane is seen from underneath you can also see the number 23 and the Carolina Blue colors. Jordan may not be able to compete with the big markets in the NBA but he is tops in our book with his Gulfstream IV.
I have been following closely the “Occupy Wall Street” protests going on around the country to see if their protests have reached us here in the area of business aviation. To date, I have yet to see any specific attacks on the industry in spite of the fact that private and corporate jets and a major industry that is used by the 1% that is under scrutiny. It is true that the 1% that is being held up as part of the elite that is the target of the people that are protesting are a major contributor to the business aviation industry by way of purchasing and leasing private jets. It is also important to understand that the world of business aviation is a major contributor to well paying jobs and contributes to manufacturing and jobs that President Obama is trying desperately to bring back and make a part of his jobs bill.
In a letter and statement to President Obama, the National Business Aviation Association expressed their displeasure in what has been an underlying attack on the industry by statements made by the President, and in part I thought I would restate what the NBAA stated that may be pertinent:
Business aviation represents one of the great American industries. It generates highly skilled and well-paying jobs, including the kind of manufacturing jobs you have said are a priority for your administration. It brings economic development to thousands of communities with little or no scheduled airline service. It helps U.S. companies be efficient and flexible – important traits for businesses trying to compete in a global marketplace. And, business aviation helps our country care for its most vulnerable, whether responding to earthquakes and floods, transporting organs for patients, or taking cancer victims to treatment.
To date, the protests have not targeted our industry as an elite only industry, but I assume as they get better organized they will begin to hold out companies that cater to the 1%. I hope that the NBAA is working on a strategy to combat those claims and that they look at the overall industry instead of making disparaging remarks or making it appear that the industry is to blame for the current economic crisis.
For a copy of the NBAA June 30, 2011 advocacy letter to President Obama, it can be downloaded from their site.
With the NBA lockout now well past the 100 day mark and no real agreement being seen on the horizon, it makes me wonder about private jets of athletes, owners and others. As talks begin the heat up in the NBA lockout a private jet would be used as a way to get from meeting to meeting with the highest amount of privacy. Owners that need to meet with other owners and NBA officials may not want to fly a commercial flight and conduct discussions on the flight with other passengers present. They would need to be able to speak freely of contract negotiations and lockout details without the fear of others hearing the details of those negotiations.
Players involved with the NBA lockout are now finding other forms of employment. They are playing in other leagues around the world in other countries or are taking extended vacations during the lockout. As negotiations heat up for players to return to the NBA ad as they need to return quickly to be able to return to practice and ready for the new season, they will need to travel quickly. They also will need to speak to agents and negotiate deals and endorsements and would want to have a heightened amount of privacy. Private jets and corporate jets are the perfect vehicle for this type of travel.
For now it does not appear that the NBA lockout is reaching a stage that will allow much of the above to happen. I am hoping that it does end soon and not because I am staring at a blank television screen waiting for the games to begin, but because I am hoping all the pilots and crews of the private and corporate jets are all put back to work soon flying athletes and owners around the world and across the country.
I interested is always peaked when watching movies that have cameo appearances of private jets. Most of them are quick shots to set the scene of the stage or in this case screen. I have talked about this in previous posts when we see private jets. The latest occurred last week as I was watching Transformers, Dark of the Moon. In that particular movie we see a quick cameo shot of a private jet of a character Charlotte Mearing, the United States Director of National Security. The irony of having a private jet being used by a public employee won’t be discussed. Charlotte Mearing is played in the movie by Francis McDormand.
The jet itself is a Gulfstream and is owned by the movie’s director Michael Bay. The Gulfstream Aerospace G-1159A jet (registration number N4500X) makes a quick appearance and it is one of my favorite manufacturers in the private jet industry. I have included a picture here of the jet and of interest is the picture of the autobot on the tail. My thanks to Airport-Data.com for the image. The film itself show the jet flying which makes me wonder how they actually filmed the shot. Was it from another jet or from a commercial jet? I suppose we’ll have to get deeper into this but thanks to Michael bay for a great cameo of his private jet. Now we need to wonder what type of robot this plane will turn into.
I have been thinking about the case of Amanda Knox recently and how she has become the biggest story in the news recently. She is following another case of big hype in the case of, Casey Anthony, the mother accused of murdering her daughter. Finally, this also dovetails with the two men in Iran that were accused of spying and were recently released. All of them were very high profile cases and they garnered much attention and the press was in a frenzy to get pictures and to get that brief statement to add to their stories.
In the case of Casey Anthony it was most attentive to me because of the protection of her privacy once released by using a private or corporate jet to transport her from the site of the case to her destination. It was noted that the priovate jet took her away to a destination unknown. She had complete privacy when dealing with the spectacle she had become.
I noticed that following the release of Amanda Knox she decided to take a commercial flight from Italy to Seattle where she had to deal with the press and the photographers. She of course was celebrating her release from prison and her situation may have been different from that of Casey Anthony, but she chose not to have the ultimate privacy afforded by the use of a private or corporate jet. Amanda Knox also had to spend 30 hours traveling from Italy to Seattle and it could have been spent with her family alone without the public having access to her.
This is why so many celebrities choose to use private jets instead of using the public accessed commercial flights. Even first class flights don’t allow for the complete privacy and they also allow people to photograph and have contact with the celebrity.
We have talked a number of times about the event in Europe but the latest convention in the business aviation industry is in Latin America. The 8th annual Labace event kicks off today in São Paulo – Brazil. It is our understanding that this event will be the largest of its kind in Latin America. We will be at the event in and hope to provide some of our thoughts of the conference as they unfold.
Labace expects to have more than 13,000 visitors from around the world at this event and many of the top aviation executives will be in attendance, as well as most of the manufacturers. From its beginning in 2003, attendance was less than 5,000 people and last year they produced more 15,000 attendees each year eclipsing the mark set the year before. There were a record number of exhibitor last year at the event and conference organizers are looking forward to that type of return in 2011. Labace had more than 50 aircraft on the grounds last year and we hope to see that many or more at this event.
Once we have had an opportunity to sift through the news and get some images of the event we will try to get them up here or we will update the Facebook page with the information. Stay tuned!
