selling an aircraft

NAFA member, Duncan Aviation's Tim Barber, EMEA Aircraft Sales - London, UK, discusses the demand for non-airworthy aircraft. 

At the beginning of 2021, there was an abundance of aircraft, airworthy and non-airworthy, on the market. That wasn’t the case by the end of the year, and prices were skyrocketing.

I had a CL-605 for sale that would have struggled to get $12M at the start of 2021.

I presented an offer to the owner for $12M. The owner decided the offer wasn’t competitive enough and did not accept it. The aircraft returned to the market a year later and received an offer for over $15M.

During 2022, we saw a 25-50%, and often higher, price hike on aircraft. Buyers panicked as prices rose, and owners took advantage of the opportunity by increasing prices. It became a sellers’ market rather quickly.

There were several reasons for the price hike. The most prominent were the Presidential election in the United States and the Covid pandemic.

People anticipated that with the change in Presidency, the bonus depreciation would disappear. The Covid pandemic played an equally important role as people who had the means to fly private were taking full advantage of the opportunity.

Currently, prices remain higher than usual, but they aren’t spiraling up or down. The light to super mid-range aircraft are still carrying a healthy premium due to the demand of charter companies, but this isn’t the only sector that’s thriving.

Read full article here.

This article was originally published by Duncan Aviation in February 2023.

NAFA member, Stephen Hofer, President of Aerlex Law Group, discusses the outlook of the 2023 business aviation market.

What will happen to the business aviation market in 2023? That’s the $64,000 question on everyone’s mind now as we come to end of 2022 and what has been a truly unprecedented 18-month paroxysm in market growth. Everyone in the industry, from aircraft brokers, sellers and buyers to management companies, charter providers, aircraft maintenance and repair facilities and even hangar landlords, would like to know the answers as they draft their business plans and draw up their budgets with a new calendar in mind.

I attended the 2022 Corporate Jet Investor Miami Conference in early November at the Fontainebleau Miami Beach and several panels were devoted to forecasting the future. Rollie Vincent, president of Rolland Vincent Associates, LLC and co-creator of JETNET iQ, and Wayne Starling, executive director of the International Aircraft Dealers Association (IADA), two seasoned veterans of the industry with more than 60 years of experience under their collective belts, looked to the numbers rather than tea leaves in an effort to glean the answers.

Starling shared data from IADA’s Third Quarter 2022 Market Report and Quarterly Forecast based on information collected from some 50 dealer/members with 300 brokers (full disclosure, Aerlex Law Group is an IADA Products and Services Member) and it indicated that the third quarter of 2022 was nearly as busy as the whirlwind third quarter of 2021 when the post-Covid 19 recovery first erupted. The numbers were impressive – 331 completed transactions in 3Q 2022 versus 340 in 3Q 2021 and 355 deals under contract in 3Q 2022 versus 360 in 3Q 2021 – although there were a few statistics that suggested a slowdown may be in the offing: 31 transactions with lowered prices in 3Q 2022 versus only 7 in 3Q 2021 and 162 new acquisition agreements in 3Q 2022 versus 190 in 3Q in 2021.

Read full article here

This article was originally published in BusinessAir Magazine, November 2022, Volume 32, No. 11.

NAFA member, Duncan Aviation, discusses six reasons why you’re better off going exclusive with an aircraft broker.

SIX PITFALLS OF A NON-EXCLUSIVE RELATIONSHIP

Aircraft sales brokers frequently talk to owners who believe they are better served to have their aircraft represented by multiple brokers rather than committing to an exclusive agreement. They believe this will raise the aircraft’s market exposure, increasing the likelihood of it selling quickly, and result in a more lucrative transaction. This is rarely the case.

A reputable aircraft broker will typically not enter into a non-exclusive contract. Here are six reasons why you’re better off going exclusive.

EXCLUSIVITY COUNTS

I met with an owner who had two aircraft for sale. One was already on the market without an exclusive agreement, and the owner was planning to make the same sale arrangements for the second aircraft.

After 30 minutes of research, I found the first aircraft represented by five brokers at three prices, all with different total aircraft hours. One broker even failed to mention the engine programs. This illustrates the feeding frenzy mentality and misinformation that prevails when an aircraft is in the market without exclusivity.

After the owner discovered how his first aircraft was being represented, I secured the exclusive agreement of the second aircraft.

IN WHOSE INTEREST?

With no certainty of getting paid, non-exclusive brokers typically do not invest much time and money to represent an aircraft thoroughly. These informal arrangements create competition among brokers instead of buyers, so the non-exclusive broker may lean toward persuading the seller to lower the price quickly in an attempt to get the first bite. There is not the same incentive for a non-exclusive broker to ensure that the seller’s best interests come first.

Read full article here

This article was originally published by Duncan Aviation in December 2022.

Those new to the world of private aviation may notice that the term “broker” comes up fairly frequently and can be used to describe various roles. In the most general terms, a broker refers to any person or firm that facilitates transactions between two parties. Though this definition is still broadly true for the private aviation industry, there are multiple types of private jet brokers who offer distinct areas of expertise and fill different roles depending on the particulars of the situation.

In short, the term “broker” can have multiple meanings within the private aviation industry. Therefore, it’s important to understand the distinction between these different types of brokers to ensure that you identify a candidate with the experience, reputation and specialized skills you need.

In this article, NAFA member Thomas W. Mitchell, Executive Vice President of Essex Aviation will offer insight into the various types of private jet brokers, how to identify which type of broker you might need and what skillset to look for when choosing a broker. We’ll also explain when and why it might make sense to retain the services of a professional private aviation consultant rather than — or perhaps in addition to — a traditional broker.

Read full article here

This article was originally published by Essex Aviation on April 26, 2022.

NAFA member, Peter Antonenko, Chief Operating Officer of Jetcraft, discusses strategic growth in business aviation. 

This year marks Jetcraft’s 60^th anniversary, a significant milestone that we’re extremely proud to have achieved. A huge part of Jetcraft’s success to date has been our grit and determination. The journey to 2022 has not been a straightforward one, but we have emerged from the pandemic stronger than ever before and marked a record-breaking year for pre-owned aircraft transactions across the industry.

As we reflect on our 60-years’ experience, there are several ways in which we believe a business can build strategically and develop a global presence:

Firstly, ensuring you select the right people is critical, you need to have confidence in your team and trust their abilities. Success in this industry isn’t just about having excellent salespeople but having outstanding individuals who support the organization as a whole. At Jetcraft, our experienced financial, legal, branding and marketing teams are vital to guaranteeing seamless transactions for the benefit of our clients.

Read full article here.

This article was originally published by Jetcraft on March 24, 2022.

After 21 consecutive monthly decreases, business aircraft inventory increased during April while Ask Prices were nearly one-third higher compared to December. Which models were affected the most? NAFA member and President/CEO of Asset Insight, LLC, Tony Kioussis explores…

Listings for Asset Insight’s tracked 134-model fleet are still down nearly 18% Year-to-Date (YTD), but the 726 listed aircraft at the end of April represented a 4.0% rise – a monthly increase of 28 units. Total inventory is still nearly 57% lower than the June 2020 peak, but no group posted an availability decrease in April, suggesting aircraft demand and availability may be close to, if not at, equilibrium.

Asset Insight’s tracked fleet Quality Rating recorded a fourth consecutive monthly improvement in April, thereby setting another 12-month high figure. At 5.347 on the scale of -2.5 (low) to 10 (high), inventory assets moved deeper into the ‘Excellent’ range, signifying fewer near-term maintenance events. The figure also represents about a 1% improvement Year-over-Year (YoY).

April’s Pre-Owned Aircraft Value Trends

The Average Ask Price for the tracked models decreased 4.2% during April, but is still 32.9% higher YTD, and 9.4% higher YoY. Actual transaction values for young, low-time aircraft continue to be higher, but that’s to be expected, given that many of these assets are transacting without a ‘for sale’ listing.

By category, the Ask Price changes for tracked models were as follows…

• Large Jets: Ask Price posted an amazing 13.6% increase to establish an all-time record high average for the group. That equated to more than a 52% increase YTD and over 69% YoY.
• Mid-Size Jets: Decreased 1.2%, but remained very close to March’s 12-month high figure. April’s value represented a 63.2% increase YTD, and more than 25% YoY.
• Light Jets: The group’s Ask Price, was nearly 59% higher YTD, and 39.5% YoY, but decreased 3.7% from March’s 12-month high value.
• Turboprops: Rose 1% to post a 12-month high figure, an increase of 7.6% YTD and 7.1% YoY.

Read full report here

This Asset Insight report was originally published by AvBuyer on May 19, 2022.

NAFA member, Joseph Carfagna, Jr., Partner, President & CEO of Leading Edge Aviation Solutions, discusses corporate aircraft.

I am not the only aircraft sales professional you have heard talk about the iconic decrease in supply of pre-owned corporate aircraft.  But why do we think we are here, and where do we think things may be headed? Let’s discuss & add up all of the ingredients…

• A strong stock market for a long time
• Unprecedented low interest rates (not for long now)
• Loads of new wealth that has been created in recent years
• The global pandemic
• Big tax incentives (which are scheduled to begin rolling back after 2023)

This all adds up to a frothy mix of ingredients that have caused this shift.

We now know that approximately 30% of all pre-owned corporate aircraft sales in 2021 were to first time buyers. This is a huge factor – first time buyers do not have an aircraft to sell before buying another.

In sum, corporate aircraft have become like oceanfront Palm Beach real estate – hard to find, and you will pay a premium to get the one you want. 

Read full article here

This article was originally published by Leading Edge Aviation Solutions on February 16, 2022.

FOR IMMEDIATE RELEASE: May 10, 2022                                   

Contact: Tracey Cheek 

tlc@nafa.aero 

405.850.1292 

Duncan Aviation Joins National Aircraft Finance Association 

Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Duncan Aviation has recently joined its network of aviation professionals. Duncan Aviation is the largest privately owned business jet service provider in the world, with complete Maintenance, Repair and Overhaul (MRO) and aircraft broker/acquisition services. 

“NAFA members know first-hand the value of having full-service providers who pride themselves on friendly, quality transactions,” said Jim Blessing, president of NAFA. “We welcome Duncan Aviation to our association and anticipate a long, fruitful relationship. As NAFA celebrates our 50th anniversary, we look to these companies such as Duncan Aviation to help our members and our organization continue to be known for innovation and expertise.” 

Products & Services: 

• Aircraft sales and acquisition 

• Airframe and engine maintenance, service and support 

• Avionics service, upgrades and installation 

• Paint and interior refurbishment 

• Parts and rotables sales 

• Rapid response engine, avionics and parts support 

• Engineering and certification 

• Manufacturing solutions 

About Duncan Aviation: Owned and operated by the Duncan family since its founding in 1956, Duncan Aviation was founded as an aircraft sales organization. Now, in addition to aircraft brokerage and acquisition services, the company provides tip to tail aircraft support. Well-known and respected by operators, manufacturers and other service providers worldwide for quality, value, timeliness, communication, work ethic and expertise, Duncan Aviation has core values focusing on service, respect and integrity. Its brand promise is a commitment to providing exceptional customer service and innovative offerings through a strong code of ethics. Duncan Aviation has major full-service MRO facilities in Michigan, Nebraska and Utah and more than 30 satellite facilities and in-field response offices. 

About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer.  

While pre-owned aircraft availability appeared to be stabilizing, demand was at an all-time high in March, and Ask Prices continued to increase. Which models were affected the most? NAFA member, Asset Insight's President and CEO Tony Kioussis explores.

Asset Insight’s tracked fleet decreased 0.7% (five fewer aircraft) during March, and listings were 58.5% below the June 2020 peak. The analysis undertaken on March 31 examined 134 models, equating to 698 inventory assets. However, many young, lower-time aircraft continue to transact without ever being listed for sale.

The tracked fleet’s Quality Rating posted three consecutive monthly improvements to reach a 12-month high figure in March. At 5.308 on Asset Insight’s scale of -2.5 (low) to 10 (high), inventory assets moved into the ‘Excellent’ range (from February’s ‘Very Good’ status), signifying fewer near-term maintenance events and proving, yet again, that Maintenance Status does not directly relate to aircraft age. The figure was also relatively unchanged Year-over-Year (YoY).

Read full report here

This Asset Insight report was originally published by AvBuyer on April 21, 2022.

FOR IMMEDIATE RELEASE: April 13, 2022

Contact: Tracey Cheek

tlc@nafa.aero

405.850.1292

Avia Yacht Partners 360 Joins National Aircraft Finance Association

Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Avia Yacht Partners 360 has recently joined its network of aviation professionals. Avia provides bespoke consulting and facilitation of acquisitions, sales and financing/leasing for preowned and new build business jets and superyachts worldwide.

“NAFA members pride themselves on knowing their markets, and the luxury market is one of our most important verticals,” said Jim Blessing, president of NAFA. “As NAFA celebrates our 50^th anniversary, we point to the many services our members offer to the public, including the work Avia Yacht Partners 360 does in the luxury aircraft world. Knowing the legal filings required is equally important as understanding the mechanics or routes for flight.”

Founder and CEO Rolf Smith serves the luxury niche in both the aircraft and luxury watercraft markets. Because of his own insider insights as well as a network of trusted partners, Avia Yacht Partners 360 helps make the dream of custom aircraft ownership and charters a reality.

Products & Services

• Charter: planning and execution of for-hire air travel
• Sales: for those acquiring or selling aircraft
• Financing and leasing: facilitation of the purchase process
• New builds: integration and management of new-build luxury aircraft

About Avia Yacht Partners 360:

Avia Yacht Partners 360 was founded by Rolf Smith and is based in Ft. Lauderdale, FL with locations in North America and Europe. The company provides a customized and bespoke approach to all the advisory, commercial, financial, legal, technical, and project management aspects of luxury aircraft acquisition. Avia is able to tailor services and components according to the needs of the client.

About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

FOR IMMEDIATE RELEASE: April 8, 2022                                   

Contact: Tracey Cheek 

tlc@nafa.aero 

405.850.1292 

Omni Aircraft Sales Joins National Aircraft Finance Association 

Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Omni Aircraft Sales has recently joined its network of aviation professionals. Omni Aircraft Sales specializes in private business aircraft brokerage and acquisitions. 

“NAFA members place a high regard on the buying and selling of aircraft, and we welcome Omni Aircraft Sales to our association,” said Jim Blessing, president of NAFA. “As we celebrate 50 years in the aviation world, we appreciate conscientious brokers who provide optimal service, integrity and value to our members.” 

Products & Services: 

• Aircraft brokerage 

• Aircraft acquisitions 

About Omni Aircraft Sales: Omni Aircraft Sales provides aircraft acquisition and brokerage expertise, with a mission for maximizing transparency and providing exceptional customer care. Omni is certified by the International Aircraft Dealer Association (IADA) and has nearly 40 years of experience and transactional knowledge. With deep knowledge of current market situations, Omni Aircraft Sales uses research, industry relationships and years of personal and professional experience to create the perfect match negotiating transactions. They offer boutique-style services, including technical quality evaluations, minor refurbishment, in-house marketing support, dedicated research analysis, maintenance and 24/7 sales support. 

About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer.  

NAFA member, Chad Anderson, President of Jetcraft, shares the latest trends and indicators of note in the business aircraft sales marketplace. 

It's been a fascinating 18 months in pre-owned aircraft sales with vibrant activity and increasingly diminished inventory. What are the important market trends to note leading into 2022? Jetcraft's Chad Anderson shares his thoughts.

Jetcraft has been in Business Aviation for 60 years, and, during that time, has grown to offer highly astute market research capabilities, plus expertise in aircraft sales, marketing, and deal management – all the tools today’s aircraft buyers and sellers need to ensure a smooth transaction.

So it’s unsurprising to hear that in 2021 Jetcraft capitalized on a lightning-quick market, exceeding the previous year’s transaction count, putting it on track for a record year, according to Chad Anderson, President of the company.

Read full article here

This article was originally published by AvBuyer on January 24, 2022.

FOR IMMEDIATE RELEASE: March 16, 2022                                   

Contact: Tracey Cheek 

tlc@nafa.aero 

405.850.1292 

Aircraft Executives Joins National Aircraft Finance Association 

Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Aircraft Executives has recently joined its network of aviation professionals. Aircraft Executives provides services focused on flight operations and aircraft acquisition transactions. 

“NAFA members recognize the importance of flight operations and the data behind aircraft purchase transactions,” said Jim Blessing, president of NAFA. “Members with the type of expertise that Aircraft Executives possess are what make NAFA relevant and vital to the industry. We welcome Aircraft Executives to our organization as NAFA celebrates our 50th anniversary and look forward to their involvement in our upcoming conference and other events.” 

 Products & Services: 

• Aircraft Brokerage and Acquisition Services  

• Flight Operation Services  

• Aviation Consulting Services 

About Aircraft Executives: Based in Atlanta, Georgia, Aircraft Executives aims to ensure the best private aviation experience possible with transactions personalized to fit each client’s specific needs. The team can handle every step of the process from listing to closing and beyond with efficiency and professionalism. Aircraft Executives strives to continue relationships beyond the closing of the deal, whether to provide flight operation services or to simply be the trusted source for aviation questions.  

Aircraft Executives services include research, valuation, selection, marketing and contracts for aircraft acquisition, flight department setup and crew staffing for operation services and aviation consulting services that include appraisals, delivery, leasing and charter brokering. 

About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. The company now has three offices: Geneva, New York City and Dubai. 

NAFA’s Tracy Cheek explains why, more than ever, you need to do your homework, and have your financing team in place…before you begin shopping.

Selling prices for aircraft are through the roof right now, reaching levels of 20% or more above what they were just two years ago. And if the current demand persists, they could continue to increase at similar rates for years to come.

That uncertainty causes buyers to wonder if they’ll find themselves in a difficult financial position when they’re ready to sell or trade up.

It’s a dilemma, but if you are in the market to buy or replace an aircraft, fluctuating prices won’t diminish your air transportation needs. If you are ready to buy, you’re ready to buy.

Real concerns can arise, however, when it comes to financing the purchase. If you buy an aircraft at an inflated price today, what happens if the prices plunge when you decide to sell or trade? How does that affect the type of funding structures that financial organizations offer to customers in the current market? (See BAA Family (Office) Planning for Aircraft, December 2021)

Click here to read full article

This NAFA article was originally published by Business Aviation Advisor on March 14, 2022.

FOR IMMEDIATE RELEASE: February 15, 2022                                   

Contact: Tracey Cheek 

tlc@nafa.aero 

405.850.1292 

JetValues-Jeremy LLC Joins National Aircraft Finance Association 

Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that JetValues-Jeremy LLC has recently joined its network of aviation professionals. Jet Values-Jermey LLC provides appraisals for all aircraft with expertise in covering aircraft not covered by any price guide.  

“NAFA members proudly support general and business aviation aircraft throughout the world, and we’re happy to add JetValues-Jeremy LLC to our association,” said Jim Blessing, president of NAFA. “Accurate, reasonable appraisals are essential for our members and the purchases they make. Without a good appraisal, owners, buyers, and financial institutions have nothing to work with. As NAFA celebrates our 50th anniversary, we point to the many services our members offer to the public, including the work Jet Values-Jeremy LLC does in the aircraft appraisal industry.”  

Products & Services 

• Aviation consulting 

• Aircraft management 

• Asset appraisals 

• Expert witness in aviation legal cases 

About JetValues-Jeremy LLC: JetValues-Jeremy LLC is based in the St. Louis area but provides global service as required. Jeremy Cox, known in the industry as ‘JetValues Jeremy,’ is active in the aviation industry as a commercial and instrument-rated pilot, A & P (Airframe & Powerplant) mechanic with an IA (Inspection Authorization), and FCC GROL Radio Operator License with Radar. Cox has extensive experience serving as the direct interface between aircraft purchasers and sellers, from marketplace research to pre-purchase inspection monitoring and aircraft appraisal. Jeremy is also a regular contributing aviation writer, having been published in a variety of trade journals. He is also an instructor for the American Society of Appraisers in the ASA Aircraft Valuation Education Program. Cox is active in the Greater St. Louis Business Aviation Association, National Business Aviation Association, the Experimental Aircraft Association, and the Aircraft Owners and Pilots Association. He is also a Colonel in the Commemorative Air Force. 

About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences, and industry insights allow member companies to provide the highest quality services the industry has to offer.