Selling Jets September.qxp_Finance 19/09/2018 10:10 Page 2
OWNERSHIP T BUYING & SELLING
Keep Your Information in Context
Working with a well-established acquisition agent that has deep connections within both the brokerage community and the operational/maintenance side of the industry will help ascertain how each aircraft fits into the marketplace. Viewing recent sales activity and the aircraft currently ‘For Sale’ (knowing the nuances of each aircraft’s history, including the costs and downtime needed for upgrades that will bring it in line with your requirements) is what every educated buyer is doing on some level. However, those with the best information will be able to ascertain the best value and quality available on the market. Simply put there are things about an airplane that even the most intelligent buyer won’t fully understand without the support of appropriate expert ise. That’s because a well-connected acquisition agent will know all of the right questions to ask about history and distinguish whether a seller could be misrepresenting something. There are many ways, for example, that an aircraft can comply with ADS-B/FANS. Consequently, the required cost (or value added to an aircraft already upgraded) can vary with different upgrade options. Moreover, understanding the nuances of a ‘damage history’ gray area is important. Obtaining such information is just a first step, however, and experience of the aircraft resale industry is needed to understand how the information will affect resale when you wish to sell the asset in the future. 58
AVBUYER MAGAZINE – October 2018
It’s not Apples-to-Apples…
Buyers often feel they are comparing apples-toapples when they are looking at ostensibly similar aircraft with a similar year, airframe/engine hours and cosmetics. The true differences can be buried much deeper, requiring someone with an eye for quality and a deep understanding of market dynamics for that make/model aircraft to help ascertain a current market value. Identifying personal preference for pedigree and maintenance history; cosmetic condition; required downtime; acquisition and annual operating budget may seem like the starting point, but without market knowledge a lack of context can cause a serious error in a purchasing decision. What makes this discussion especially relevant is that within today’s market, the nicest airplanes have been cherry-picked and buyers are having to consider a wider selection of aircraft. Using a buyer’s agent with a client focus who does not have other conflicts of interest will enable you to make the most of today’s available aircraft, whether they’re publicly ‘For Sale’ or ‘off-market’. T Jet Tolbert is President of American Aircraft Sales. Established in 1968, it is a premier brokerage firm which has been a trusted partner since corporations first began utilizing jet aircraft to grow their businesses. With offices in the US, Latin America sales team and a partner office in Zurich, Switzerland, American Aircraft Sales is an active NBAA, IBAC, EBAA & ABAA member.
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Aircraft Index see Page 153