AINsight: Which Aircraft Brokers Rise Above the Field? see more
NAFA member, David G. Mayer, Partner at Shackelford, Bowen, McKinley & Norton, explains why finding the right fit when it comes to aircraft brokers can ease buying or selling a used business aircraft.
Private aircraft are time machines—speeding travel from place to place in privacy, security, and comfort. Individual and corporate owners may differ in the reasons they use, sell, or buy private aircraft, but virtually all of them find that a buy-sell transaction is complex and challenging.
A top-flight aircraft broker appreciates these dynamics and guides a seller or a purchaser (client) through a purchase or sale transaction as a member of a team of experienced industry professionals.
The right broker for the client and the transaction can facilitate a smooth process. Conversely, an unsuitable aircraft broker can generate frustration, recrimination, delay, and less-than-favorable terms and economics. Thus, clients should make a strong effort to choose the right broker.
This article was originally published by AINsight on September 8, 2023.
NAFA Welcomes New Member: Thunderbird Airways see more
FOR IMMEDIATE RELEASE: September 5, 2023
NAFA Welcomes New Member: Thunderbird Airways
National Aircraft Finance Association (NAFA) is pleased to announce that Thunderbird Airways has recently joined its network of aviation professionals. Thunderbird Airways is an experienced, on-demand private jet charter operator and aircraft management company.
“NAFA members proudly finance, support or enable the financing of general and business aviation aircraft worldwide. We extend a warm welcome to Thunderbird Airways and support their services to further NAFA members in the aviation business,” said Ed Medici, NAFA President.
About Thunderbird Airways:
Thunderbird Airways provides on-demand charter flights anywhere in the continental U.S. Thunderbird also offers a full-service aircraft management program for corporate and personal aircraft, enabling aircraft owners’ peace of mind that their plane is cared for and maintains its airworthiness.
With a legacy in the private aviation sector, Thunderbird Airways connects people and destinations by putting the personal well-being of their passengers and crew first. Over decades, Thunderbird has earned the trust of a lasting customer base that transcends industries.
Thunderbird services include:
- Charter operator
- Aircraft management
- Aircraft sales and acquisitions
Steve Hofmann, President of Thunderbird Airways and its parent company, E.N.G. Aviation, is an entrepreneur at heart. Steve's aim is to unite his passions for people, planes and technology to create a simpler, more seamless charter and aircraft ownership experience. His vision is to create an atmosphere of inspiration and comfort that makes the journey part of the destination.
Before joining Thunderbird Airways, Steve spent almost a decade pursuing his passion for innovation in the technology sector and is proud to have served in the United States Marine Corps. Steve's life-long love of aviation extends into his personal life as well. He is a multi-engine and instrument-rated private pilot with plans to achieve his first type-rating in 2023.
For more information, visit https://thunderbirdairways.com/.
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.
Big Costs to Factor Beyond a Jet's Asking Price see more
Buyers of pre-owned business jets face a range of costs beyond the ask price, some of which might be unexpected. What costs do they need to account for, and how can they avoid any nasty surprises? Gerrard Cowan asks the experts...
First-time buyers can often be ‘a little surprised’ by the high costs of ownership, which go well beyond the initial purchase price, says aviation analyst Brian Foley. The costs of hangaring, maintaining, insuring and crewing their newly acquired aircraft can amount to millions of dollars annually.
Indeed, there have likely been numerous one-time, after- purchase discoveries for those who bought without a Pre-Purchase Inspection, he says, “which could easily cost as much as the airplane did to get airworthy again. Some of these buyers have already cut their losses and returned to their Economy Plus airline seat or charter.”
You Can Remove the Unpredictable Aircraft Maintenance Costs
Aircraft maintenance is a Pandora’s Box, according to David Caporali, Senior Vice President, Business Development for the Americas at Jet Support Services, Inc (JSSI), a National Aircraft Finance Association (NAFA) member.
Such maintenance costs take many buyers by surprise, he says, and this needs to be a vital consideration in the aircraft selection process. Indeed, it can be one of the largest variable costs in aircraft ownership, including all parts and labour, and can account for up to 35% of the aircraft’s operating budget.
“Outside of certain scheduled inspections and replacement items (that can be tracked through maintenance software) there is no way to anticipate when a part will break, making maintenance very difficult to budget for,’’ Caporali elaborates.
“‘Scope creep’ is common during any aircraft inspection, as additional squawks are often found. We have seen many work orders double or even triple the initial expected cost of a certain inspection.”
This article was originally published by AvBuyer on July 5, 2023.
Aircraft & Jet Appraisals: An Introductory Guide see more
When purchasing an aircraft, you want to be sure you’re getting a fair or current market price. You’d also like to be confident that the seller is being candid about their valuation; you don’t want to find out after the fact that you could have paid far less than the aircraft was worth. NAFA member H. Lee Rohde III, President and CEO of Essex Aviation, explains.
In the private aircraft acquisitions market, aircraft appraisers can assist with the validation on a seller’s or broker’s asking price, providing appraisals based on pricing guide analysis and guidance from the Professional Aircraft Appraisal Organization (PAAO). It’s their job to determine the fair market value of an aircraft for brokers and owners alike, ensuring transparency during the sales process.
What Is an Aircraft Appraisal?
An aircraft appraisal is an impartial assessment of an aircraft’s current market value, as determined through a valuation process conducted by a certified appraiser. A majority of aircraft appraisers are accredited by the American Society of Appraisers (ASA) and trained to evaluate all the elements that may affect an aircraft’s value. Following consultation with an appraiser, the seller can then generate a fair and accurate retail price.
This article was originally published by Essex Aviation on June 26, 2023.
Webinar: How to Navigate the Aviation Market - What First-Time Purchasers and Sellers Need to Know see more
Recently, NAFA Member David G. Mayer, Partner with Shackelford, Bowen, McKinley & Norton, LLP, presented a webinar titled How to Navigate the Aviation Market - What First-Time Purchasers and Sellers Need to Know. It was sponsored by Aeromarine Tax Professionals and well-attended.
This information provides a useful tool for aviation purchasers, sellers, lessors, financiers, lawyers, tax and other professionals, brokers, wealth managers and OEMs (primarily your clients), aircraft managers, and others involved or interested in purchasing or selling business aircraft.
Depending on your experience level, you should take away a foundational, enhanced, or refreshed understanding of the process, the issues, and the roles of the team needed to complete these deals.
Contract Issues Remain Hot as Jet Sales Cool see more
NAFA Member, David G. Mayer, Partner at Shackelford, Bowen, McKinley & Norton, LLP, discusses the preowned market.
The preowned market for business jets is trending away from the near-manic demand and harsh seller terms we have experienced over the last few years. Ostensibly driven by the pandemic fears and the exuberance of first-time buyers, purchase prices skyrocketed and enabled sellers to restrict the due diligence of purchasers who often willingly accepted severe contract limitations to close an aircraft deal.
Despite and perhaps because of these extreme market conditions, the momentum in the preowned aircraft sales market remains strong and resilient—but not impervious—to inexorable headwinds of high inflation, rising interest rates, global economic and geopolitical risks, stock market wealth contraction, and incessant discussion of a recession.
Amid these strong market forces and slightly rising inventory of used jets for sale, pricing and contractual terms in aircraft purchase and sale agreements (APAs) appear to be rebalancing roughly to pre-pandemic norms. This comes even as some sellers resist lowering their sales prices or easing back on negotiating four major issues in APAs: hard and soft deals; aircraft delivery condition; inspection scope; and defaults and remedies for purchasers and sellers.
This article was originally published by AINonline on March 10, 2023.
NAFA Welcomes New Member: Privé Jet Sales see more
Kyle Foddrill, President
97 Village Lane, Suite 350
Colleyville, TX 76034
NAFA Welcomes New Member: Privé Jet Sales
National Aircraft Finance Association (NAFA) is pleased to announce that Privé Jet Sales has recently joined its network of aviation professionals. Privé Jet Sales handles the buying and leasing of new and pre-owned aircraft, including marketing, market research and assistance with contract negotiations.
"NAFA members proudly finance, support or enable the financing of general and business aviation aircraft throughout the world, and we are happy to add Privé Jet Sales and its services to our association," said Jim Blessing, President of NAFA.
About Privé Jet Sales:
With more than 40 years of aviation experience and many successful collaborations, CEO/President Kyle Foddrill and partner Robert Eikel created Privé Jet Sales, LLC In 2014. Each has formed an impeccable reputation in the industry and brings value to any private aviation endeavor.
Foddrill has transacted over $2.0 Billion in aircraft sales and acquisitions. He is well-rounded in all aspects of an aircraft transaction and brings invaluable knowledge that aircraft owners expect when they put their trust in hiring an aviation professional to represent their best interest.
Eikel has a wide variety of experience in the field of private aviation. His expertise includes aircraft sales, purchasing, management, completion supervision and technical oversight. Eikel is also a specialist in aircraft entry into service for new aircraft deliveries and setting up flight departments for new ownership operations.
Privé Jet Sales has offices in Colleyville, Texas and Zug, Switzerland.
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. The company now has three offices: Geneva, New York City and Dubai.
The Demand for Non-Airworthy Aircraft Remains see more
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.
This article was originally published by Duncan Aviation in February 2023.
Reduced Inventory Will Likely Sustain Business Jet Prices in 2023 Because Private Jet Travel Enjoys “The Stickiness Factor”Reduced Inventory Will Likely Sustain Business Jet Prices in 2023 Because Private Jet Travel ... see more
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.
This article was originally published in BusinessAir Magazine, November 2022, Volume 32, No. 11.
Don't Be Afraid of Commitment see more
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.
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.
This article was originally published by Duncan Aviation in December 2022.
Private Jet Brokers: What Do They Do & When Do You Need One? see more
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.
This article was originally published by Essex Aviation on April 26, 2022.
Lessons in Strategic Growth see more
NAFA member, Peter Antonenko, Chief Operating Officer of Jetcraft, discusses strategic growth in business aviation.
This year marks Jetcraft’s 60th 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.
This article was originally published by Jetcraft on March 24, 2022.
Used Aircraft Maintenance & Marketability Analysis – April 2022 see more
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.
This Asset Insight report was originally published by AvBuyer on May 19, 2022.
If a Farmer Has Too Few Tomatoes to Sell, He Does Not Need a Bigger Truck... see more
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.
This article was originally published by Leading Edge Aviation Solutions on February 16, 2022.
Duncan Aviation Joins National Aircraft Finance Association see more
FOR IMMEDIATE RELEASE: May 10, 2022
Contact: Tracey Cheek
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
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.