Why 'Pre-Owned' Private Jets Can Be Surprisingly New see more
NAFA member, Chad Anderson, President of Jetcraft, discusses why you should buy a pre-owned aircraft and where to find them.
Pre-owned, vintage, used…from sports cars to designer clothes and beyond, these words don’t usually indicate ‘new’.
But, according to Jetcraft, the world’s leading aircraft sales specialist, pre-owned private jets don’t have to be ‘old’ – in fact, the savviest buyers are now picking up these airplanes after less than a year of use.
So how do buyers find an almost-new aircraft? And what’s bringing these jets to the market in the first place? We asked Chad Anderson, president of Jetcraft.
Why should I buy a pre-owned jet?
Pre-owned aircraft allow buyers to find the long-range or large-cabin model they need at the best possible price. Private jets are valuable but expensive assets, so it’s important you invest in an aircraft that suits your needs and will retain value. With the sophistication of upgrades and renovations available today, pre-owned planes are every bit as attractive as new ones.
Why are these almost-new aircraft available?
As many businesses ‘go global’, and more and more private jet owners fly greater distances for work or leisure, demand is growing for spacious, fast jets that can span half the world without stopping. The top jet manufacturers are responding to this need by releasing new large-cabin aircraft. This influx is driving some buyers to sell their airplane after only one or two years of ownership, so they can upgrade to an even newer model.
Indeed, this summer Jetcraft sold the world’s first pre-owned Gulfstream G500 – an aircraft that only came onto the market in 2018. The speed of this sale shows how demand for almost-new long-range models is at an unprecedented high.
How do I find a pre-owned jet to buy?
There’s a lot of competition for young, pre-owned jets. In fact, our recent market forecast anticipates four times more pre-owned transactions a year than new deliveries by 2023 and we’re seeing many aircraft that are correctly priced, marketed and positioned are sold before they even hit the market. If you’re planning to purchase a pre-owned aircraft, it’s important to work with a consultant you trust and who has a pulse on the market and the latest available inventory.
Which jet should I choose?
Today, most buyers are looking for an aircraft that can fly direct from London to cities such as Seoul and Singapore. If you’re regularly travelling long distances, you want a fast jet that allows you to be in the office or at home with your family as much as possible. Choosing between types at the very top of the market, such as the Gulfstream G500 and G600, the Bombardier Global 7500 and the Dassault Falcon 7X and 8X, can be difficult. Speaking with an experienced professional is invaluable in finding an aircraft that perfectly fits your needs.
This article was originally published in Luxury Lifestyle Magazine on September 24, 2019.
Elevate Jet Joins National Aircraft Finance Association see more
FOR IMMEDIATE RELEASE
EDGEWATER, Md. – October 18, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that Elevate Jet recently joined its professional network of aviation lenders.
“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Elevate Jet to our growing organization as we head to our 50th anniversary,” said Jim Blessing, President of NAFA.
Elevate Jet, a subsidiary of Elevate Holdings, is a trusted and professional single-source set of solutions for private jet owners and flyers, offering aircraft management, corporate shuttle, consultancy, and advisory services. The company has been serving private aviation with professional services since 2003, advising private flyers concerning their aviation interests.
Elevate is a premier aircraft management company founded on the growing need for boutique style aircraft management. The company is designed to align with their clients’ mission profiles, providing highly customized services to private aircraft owners and flyers. Their experienced aviation team has a wealth of industry knowledge and intelligence that ensures exemplary levels of bespoke service in aircraft management and aircraft consultancy.
Much like NAFA, Elevate Jet places great importance on fostering knowledge, experience and trustworthiness throughout the aviation industry, providing the highest levels of professionalism in aviation asset management advisory.
“Elevate Jet takes our fiscal responsibilities to our managed aircraft owners seriously, as well as to the clients that retain us to provide aviation advisory services,” said Patti Ann Sullivan, Executive Vice President – Aircraft Management. “The NAFA forums for discussion of issues impacting the aviation and finance industry, exploration of best practices and review of risk mitigation strategies, along with continuous education benefit the industry and the aircraft owners and flyers that we are fortunate to serve. It is for these reasons Elevate Jet is pleased to be a member of the esteemed NAFA association."
For more information about Elevate Jet, visit nafa.aero/companies/elevate-jet-llc.
The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.
5 Ways Aircraft Management Saves a Private Jet Owner Money see more
NAFA member Clay Lacy Aviation, discusses ways aircraft management can save you money.
Through pooled purchasing and thoughtful decision making, an aircraft management company can save a private jet owner 25-30% in annual operating expenses over a single aircraft flight department; while also improving safety and service. Here is an overview of the five areas that aircraft owners will save when choosing to partner with a reputable aircraft management company.
Fuel is the largest variable cost that private jet owners incur; accounting for about 38% of variable expenses and 19% of annual operating expenses. A management company reduces this cost through large fleet fuel purchase programs. “The more diversified a private jet operator is, the more savings that can be passed along to an aircraft owner directly,” says Daniel Murphy, Senior Fleet Analyst at Clay Lacy Aviation. “We can pass along savings to aircraft owners by driving down purchase costs. Aircraft owners essentially save by leveraging our large fleet’s buying power,” Daniel continues.
Crew Training, Retention, & Utilization
Pilot and cabin attendant training is a necessary and recurring component to owning and operating a private jet. Pilots are required to attend training, multiple times throughout a year to remain proficient on aircraft systems and emergency procedures. “We can achieve discounts on crew training in the range of thousands of dollars for each training event,” estimates Daniel. “Over time, these savings add up and make a difference for our clients,” Daniel continues.
Crew retention is also an area that a management company helps aircraft owner’s save. Clay Lacy carefully vets pilots and cabin attendants; meticulously choosing only the best and most well suited to be part of an aircraft owner’s in-flight team.
In Clay Lacy’s fifty-year history, pilots often stay ten, twenty, and even thirty years with the company. This incredible level of retention offers a consistency, efficiency, and savings often unachievable with other private jet management companies.
When management companies have multiple air-frames of the same type within their fleet, lateral use of flight crews is also possible. For example, if a private jet management company operates three Gulfstream G550s, there is the option to rotate the flight crews between the aircraft if necessary. This helps to eliminate the need for outside contract pilots in the instances when full-time crew members are unavailable.
Considering aircraft insurance, both the opportunity for cost-savings and ‘lifestyle savings’ should be noted. When working with a large aircraft management company, aircraft owners will see significant savings being incurred on both a quantitative and qualitative basis. “The real value in a quality insurance program lies in replacement aircraft programs and other benefits,” says Daniel.
“Clay Lacy’s policies include an aircraft replacement option that allows for individuals to utilize other jets in the fleet when their aircraft is down for maintenance or experience another issue or service update,” continues Daniel. When an aircraft management company maintains a large fleet, the temporary replacement option provides clients with peace of mind and ultimate convenience. “With over one-hundred aircraft in Clay Lacy’s managed fleet, and over 50 percent large-cabin jets, it’s advantageous for aircraft owners’ to join our insurance programs,” says Daniel.
In-flight WiFi is a necessary amenity in this era of private jet travel. However, there is a significant cost to installing the equipment and sizable ongoing monthly service fees. Aircraft management companies are able to develop ongoing relationships with companies like Honeywell, Gogo Inflight or Smart Sky, and in turn, leverage the multiple jet subscription discounts to help reduce costs for each individual aircraft owner. “Once again, we see savings for a private jet owner based on an ability to individually serve one client while maximizing the benefits that a large fleet yields,” reiterates Daniel. In addition to WiFi, there are five to ten other subscription based services that aircraft owners save on, including items like aeronautical charts, flight planning services, satellite weather, parts and avionics warranties, and much more.
One of the most significant expenses that occur regularly are those related to a flight. Examples of trip expenses include ground transportation, catering, landing fees, aircraft parking, international permits, FBO services, crew hotels and crew transportation. “Aircraft management companies maintain relationships between various vendors and can achieve discounts that a one or two aircraft flight department cannot achieve,” says Daniel.
The Individualized Approach To Savings
In addition to the five areas mentioned above, an aircraft management company can significantly lower maintenance costs while continuing to maximize an owner’s use of the aircraft. “An aircraft management company that offers in-house maintenance will be able to save a jet owner over the long-term by decreasing the number of cycles imposed on an aircraft and increasing efficiency,” says Daniel.
Daniel’s role at Clay Lacy looks at both qualitative and quantitative data regarding each aircraft in the managed fleet. Subsequently, the information gathered is used to choose the best course of action for projected long-term savings, as well as operational goal achievement. “Some owner’s raise concerns over being part of a large managed fleet but at Clay Lacy, we can achieve both the cost-savings benefits of a large organization with the familiarity and comfort exhibited by a small management firm,” says Joe Barber, Director of Aircraft Management at Clay Lacy Aviation. “This ability to translate what seems to be two opposing entities is possible through the system of support we employ for each aircraft. Every aircraft owner has a professional and specialized team, available at any time; day or night. “We have the resources and relationships available to give our owner’s the ownership experience that they deserve and desire.”
Would you like to know how you can save more money as a private jet owner? Contact an aircraft manager today!
How to Know When It’s Time for a Private Jet Upgrade see more
NAFA member, Jason Zilberbrand, President of VREF Aircraft Value Reference & Appraisal Services, shares what to look for when determining if you are ready for a jet upgrade.
If you’ve got a private jet, congrats. You’re one of a very select few people who do.
Having a private jet is a unique joy. Skipping TSA security checks, avoiding cramped quarters, and traveling on your own schedule are all perks that justify any expenditure.
But what if your experience is lacking? It might be time for a private jet upgrade.
If you’re thinking it’s time to revamp your jet but aren’t sure, look no further. VREF will show you a few signs that it’s time to refurbish that baby.
The Exterior Is Looking Rough
Considering planes regularly soar through the sky for long periods of time over great distances, it’s understandable that they’d accrue a significant amount of wear and tear over the years. The most obvious form that wear takes is cosmetic.
The day you bought your jet was probably a joyous occasion. A shiny, gleaming vehicle that was prepared to literally shoot you into the clouds. Only, these days, it might not be so shiny anymore.
If you’ve found yourself less enthralled with how your jet is looking, it might be time for a new paint job. Sometimes, the only thing you need to reignite that initial love affair is a fresh look. It’s one of the simplest ways to get your jet looking brand new again, so if it’s looking worse for the wear, don’t hesitate to slap a fresh coat of paint on it.
The Interior Isn’t Looking So Hot Either
When your jet takes a beating on the outside, it doesn’t have much practical effect on your experience. It might not be as great to look at as it once was, but your trip goes as planned, you won’t be looking at the exterior of your jet during the flight.
The interior of the jet is what really counts when it comes to having a positive flying experience. A rundown or outdated interior cabin can make travel a serious downer.
It might be something as simple as cosmetics. If you just don’t like the look of your cabin anymore, revamp it. A sleek, modern update can often do wonders.
That said, it might be an issue of actual convenience. After all, a private jet isn’t much fun without all the proper amenities.
If your jet’s tech seems like it’s been lifted straight from a 60s Bond film…Well, actually, that sounds pretty cool. But you know what we mean. Your jet’s features should feel modern.
Bluray players, up to date television technology and other little details can make or break a flying experience. Don’t let your jet live in the past. If it feels dated, it probably us. Give it a much-needed overhaul.
Invest in a Private Jet Upgrade
If you think you need a private jet upgrade, you most likely do. Don’t let your experience be ruined by an aging piece of equipment when all it would take is a fresh look to bring it into the modern age.
On the other hand, you might be looking to sell your jet and get something new. If so, make sure you’re getting the job done right. Get a top quality professional appraisal right here.
This article was originally published by VREF Aircraft Value Reference & Appraisal Services on April 22, 2019.
Tips To Get The Best From Your Business Jet see more
NAFA member David Wyndham with Conklin & de Decker offers advice on three things to keep in mind that will help you get the full benefits of a business jet.
Though it’s impossible to prepare for every situation, it is possible to prepare for things to change and to learn what’s needed for adapting and managing those changes.
The business aircraft is one of the tools that enables and enhances your ability to act, manage and react to the changes within your business. To get the full benefits of a business aircraft, however, it pays to keep the following three things in mind…
1. Different Aircraft for Different Missions
Throughout my career as a consultant, the 100% solution (that is, the aircraft capable of flying all the missions you may need) is most often the costliest. Over the long run, it may also be one of the least effective solutions too.
To illustrate, I once had a client who was looking at a Mid-size jet.
- This jet had the runway performance to manage the required short trips into smaller airfields, but with a light passenger load.
- It had the seats for the handful of longer trips with six or seven people.
- With full seats, however, its range was limited.
One larger cabin business jet offered the short runway performance and the range with full seats the client wanted, but the acquisition and operating budget was beyond what the board would approve.
What proved to be a better fit for the client was a turboprop for the short-range, short-runway trips and a fractional share of a Mid-size jet for the longer-range missions. That Mid-size jet fractional share could also be upgraded to a Large jet for the two or three trips annually that required eight to ten seats.
It’s vital to remember that owning your business aircraft does not prevent you from using other options (such as charter, jet cards and fractional). These lower utilization alternatives can give you the second aircraft for the few times its needed or expand the capability when occasionally needed.
2. Re-evaluate Your Options Regularly
How does the business aircraft you use support your current strategies for managing your business and your time? You will need to regularly re-evaluate your options. Planning is necessary for your company, and that includes forward-planning with regards to the aircraft.
It may be running nicely and not costing a lot of money to operate currently, but you should not wait for a major expense to arise before evaluating your options.
- Are you looking to grow into new markets in the next five years?
- Are you in the Mergers and Acquisitions market?
- Can the current aircraft support the future company?
An aircraft replacement can take 12-18 months to plan and execute, especially if you’re acquiring an aircraft that will need to be outfitted to your specifications. It’s advisable to have a written plan for when, and how to upgrade or replace your aircraft. Review the plan and revise it as your company changes, grows or develops into new markets.
3. Numbers Don’t Tell the Whole Story
While they can help you make an informed decision, a spreadsheet alone should not make the decision for you. So, what are the other factors that need to be considered in the decision? I’ve had several clients where the optics of owning the aircraft were a concern.
One was a defense department supplier of technology. My analysis showed them that a Light jet was the most efficient for their travel in terms of cost and speed, but they chose to purchase a slower single-engine turboprop that lacked the non-stop range for about 40% of their trips.
Their decision was based upon appearances. If the Generals saw the supplier with a turboprop single, they believed it would give the impression of frugality in their business and that their technology solution would also be judged as the cost-effective choice.
Another client upgrading from a Turboprop chose a Mid-size jet over a Large-Cabin jet. The lower cost Mid-size jet would still meet 85% of their needs but also look appropriate to their shareholders.
But it’s about more than just optics. Comfort plays a role, too. Another client evaluating Large-Cabin jets preferred the slightly smaller cabin alternative as it offered more cabin width, which felt roomier.
The costs of the applicable options were similar, but in addition to having the slightly wider cabin his choice also had less range. Nevertheless, as the client was going to spend 400 hours per year on board, this was the right choice for him. Comfort was the deciding factor in this case.
Business aircraft owners and operators all have slightly different criteria that they use for evaluating subjective qualities like comfort. When evaluating different aircraft, it’s important to decide in advance what criterion are important to you.
Remember that numbers are very helpful but leave some room for the subjective.
This article was originally published on AvBuyer on August 23, 2018.