LIGHTNING-QUICK MARKET REACTIONS what transpired in 2008/2009. Interestingly enough US economic conditions began to quickly change direction around Thanksgiving of last year as unemployment began to reverse course and housing numbers began to stabilize. The looming debt crisis in Europe seemed to stabilize with investors returning back to the US stock market as prospects for the US economy looked brighter heading into 2012. Even President Obama’s dismal approval ratings began to reverse course. While Europe still faces massive uncertainty, and a March 20th deadline for Greece to re-finance its debt approaches, just last Friday rating agencies downgraded several European nations. The outlook seems to be a bit more positive, and analysts believe at least in the near-term that financial disaster has been placed on hold. As a result, aircraft activity redirected just as quickly. During the weeks of December and early January a half-dozen Global Express aircraft have either already traded or are under contract. The G-IV market saw four transactions over the past thirty days and the G-IVSP market currently has five aircraft under contract which is more than during the entire
July-November timeframe last year when the US economic headline news looked dismal. In today’s world we all have access to fasttraveling information on our Blackberrys, iPhones, iPads, Satelite TV as well as various other electronic devices. Information and capital travel at the speed of a keystroke. Our industry is no longer insulated or immune from this phenomenon. Now, more than ever, buyers and sellers require professional representation in the purchase or sale of their aircraft. On the buyer’s side, timing is everything in getting the best deal in terms of the purchase price and the correct aircraft that meets their mission requirement. On the seller side, we have seen poorly-written contracts or other hurdles leading to buyers fleeing deals at the first sign of a negative headline. On both sides of the transactions the buyer’s or seller’s commitment in today’s environment is very low. Economic and political “headline news” has instant ramifications with regard to complex aircraft deals. Ten years ago what happened in Beijing was of little relevance. Now ordinary Americans review the latest Chinese economic data on CNBC the moment it is released.
Now, more than ever, a professional broker is an important element in today’s aircraft transaction, keeping deals together and leveraging both industry-specific aircraft knowledge with general economic knowledge to the financial benefit of buyers and sellers. ❯ Andrew C. Bradley is senior vice president, Global Sales & Acquisitions at Avjet Corporation, an international provider of aircraft charter and management solutions. The company is headquartered in Burbank, California, and maintains a global presence in Washington D.C., Seoul, Dubai, Abu Dhabi, Moscow and other locations around the globe. To learn more about the company, visit www.avjet.com
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WORLD AIRCRAFT SALES MAGAZINE – February 2012
www.AvBuyer.com
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