selling an aircraft

There are signs that the used aircraft market has hit bottom.

Anyone who makes their profession within the business aviation industry is well aware of what happened to seemingly everything we touch relative to business aircraft as a result of the pandemic. During that time of uncertainty, everything became scarce and expensive.

Now, nearly four years later, we all can likely agree that things have loosened up for a vast majority of us who work in and around business aircraft—to a certain degree. I cannot speak to all sectors of the industry, but I can speak to the aircraft resale market. Let’s look back and also forward to see where it puts us now.

Depending on the source of the data chosen, it will show in approximate terms that the supply of for-sale preowned business aircraft was at an all-time low in early 2022, at approximately 2 percent of the fleet. It hit a high of about 6 percent four months ago and, at present, it is just off that high. What we have defined as “normal” in years past is approximately 7 to 8 percent of the fleet for sale at any given time. But it makes me wonder: is 6 percent the “new normal”?

Read full article here

This article was written by Leading Edge Aviation Solutions and originally published in Aviation International News AINsight on March 22, 2024.

FOR IMMEDIATE RELEASE: March 6, 2024 

Contact: Tracey Cheek 
tlc@nafa.aero  
405.850.1292

Joseph Dail 
Finance & Insurance Specialist 
406-FLY-1-NOW 
C: 336.380.0447 
joseph@lifestyleaviation.com 
www.lifestyleaviation.com 

 
NAFA Welcomes New Member: LifeStyle Aviation 

Edgewater, MD –  National Aircraft Finance Association (NAFA) is pleased to announce that LifeStyle Aviation has recently joined its network of aviation professionals. Lifestyle Aviation is dedicated to broadening access to aviation for individuals and businesses, offering innovative ownership and financing options that make owning a plane more affordable and attainable.  

“NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support LifeStyle Aviaiton’s services that play a role in advancing the interests of NAFA members within the aviation industry.”  

About LifeStyle Aviation: 
LifeStyle Aviation is committed to realizing the dream of flight for everyone by providing access to modern, innovative aircraft for personal and business use. Beyond aircraft sales, the company fosters a community of aviation enthusiasts passionate about flying.   

LifeStyle Aviation distinguishes itself through its specialization in the Diamond Aircraft line, known for its cutting-edge technology, safety features and efficiency. LifeStyle Aviation is also dedicated to empowering pilots through comprehensive training programs offered through its network of flight schools, ensuring pilots of all skill levels have the knowledge and confidence to take to the skies safely.  

In addition to aircraft sales and training, LifeStyle Aviation serves as a hub for aviation enthusiasts. The company hosts events, seminars and fly-ins where pilots can come together to share their passion for flights and connect with others who share their love of the sky.  

Joseph Dail, Head of the Finance and Insurance Department, plays an important role in realizing aviation dreams. He has expertise in aviation financing and insurance and ensures customers have access to flexible and affordable options for purchasing and protecting their aircraft.  

Whether seeking financing to purchase a first plane or the right insurance coverage to protect your investment, Joseph and his team guide clients through every step of the process. With a commitment to innovation, safety, and community, LifeStyle Aviation doesn’t just sell planes; it helps people discover the joy of flight and make it part of their lifestyle.  

For more information, visit lifestyleaviation.com.   

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. 

FOR IMMEDIATE RELEASE: March 8, 2024 

Contact: Tracey Cheek  
tlc@nafa.aero  
405.850.1292

Eric Hammer 
President 
336.553.8888 
ehammer@integrityjets.com 
integrityjets.com 

NAFA Welcomes New Member: Integrity Jets    

National Aircraft Finance Association (NAFA) is pleased to announce that Integrity Jets has recently joined its network of aviation professionals. Led by industry veteran Eric Hammer, Integrity Jets is a boutique aircraft brokerage firm that provides brokerage, acquisition and market intelligence services.   

NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world,” said Ed Medici, NAFA President. “We’re excited to welcome Integrity Jets to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members.” 

About Integrity Jets: 
Integrity Jets connects buyers and sellers of private aircraft. The company offers comprehensive brokerage services tailored to each client’s needs.   

Integrity Jets understands that buying or selling an aircraft is a complex and time-consuming process, and engaging with Integrity Jets ensures clients experience the most stress-free, efficient and financially beneficial transaction possible. The company is committed to delivering exceptional customer service and meeting each client’s unique requirements and preferences. 

About Founder Eric Hammer:  
With 33 years in the aerospace industry, Eric Hammer recently launched Integrity Jets. For the past 22 years, he has specialized in representing buyers and sellers of business aircraft.  

Hammer’s mission is to establish Integrity Jets as a trusted, strategic and tactical partner for clients in acquiring and disposing of their business aircraft.  

Hammer’s background includes: 

• Overseeing the sale and acquisition of over 225 turbine-powered aircraft. 

• Leading pre-owned aircraft sales efforts at Embraer for nearly a decade. 

• Managing new and used Citation and Caravan sales at Cessna for eight years. 

• Serving for 11 years in NASA’s Mission Control Center in Houston as a Flight Dynamics Officer for the nation’s space program.  

• Holding a commercial, multi-engine, instrument-rated pilot certification.  

• A 20-year veteran of the Navy Reserve 

• Earning a Master’s Degree in Aerospace Engineering 

• Achieving the title of five-time Powerlifting National Champion.  

For more information, visit integrityjets.com.   

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. 

FOR IMMEDIATE RELEASE: February 28, 2024 

Contact: Tracey Cheek 
tlc@nafa.aero  
405.850.1292

Jared Hasty 
Co-Founder 
770.233.7518
Sales@piedmontjets.com  
https://www.piedmontjets.com 
 

NAFA Welcomes New Member: Piedmont Jets    

National Aircraft Finance Association (NAFA) is pleased to announce that Piedmont Jets has recently joined its network of aviation professionals. Piedmont Jets is a highly specialized, boutique aircraft brokerage and acquisition firm.  

“Piedmont Jets joining NAFA is a step forward in advancing our mission to improve and facilitate the financing process to support aircraft buyers,” said Ed Medici, NAFA President. We welcome Piedmont Jets to our growing organization and enhancing opportunities for all our members.”  

About Piedmont Jets: 
Piedmont Jets leverages experience, efficiency and expertise to navigate clients through aircraft transactions. Driven by a team of experienced pilots with a love of aviation and building lasting relationships, Piedmont Jets aims to make transactions simple and seamless. 

After careful analysis backed by industry-leading data, the Piedmont Jets team will source worldwide, on and off-market opportunities while managing the details of the procurement process.  

Piedmont Jets provides a roadmap so clients are informed and empowered throughout the acquisition. The Piedmont Jets team uses its tools, processes and industry relationships to ensure maximum exposure and return on clients' investments. 

For more information, visit piedmontjets.com.  

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. 

FOR IMMEDIATE RELEASE: February 7, 2024    

Contact: Tracey Cheek  
tlc@NAFA.aero  
405.850.1292  
 

Kelly Wolff
sales@jetAVIVA.com
Mobile:  321.258.5057
Office:  512.410.0295

NAFA Welcomes New Member: jetAVIVA

The National Aircraft Finance Association (NAFA) is thrilled to welcome jetAVIVA, a global leader in pre-owned aircraft sales and acquisitions, to its esteemed network of aviation professionals. As one of the world's largest private jet sales organizations, measured by total annual transaction volume, jetAVIVA brings a wealth of experience and expertise to the NAFA community. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world,” said Ed Medici, NAFA President. “We’re excited to welcome jetAVIVA to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members.” 

About jetAVIVA: 
For almost 20 years, jetAVIVA’s expert team has assisted thousands of clients in purchasing and selling aircraft, providing expertise in the aviation industry to streamline transactions and ensure a smooth and successful process. jetAVIVA's specialized services can enhance transaction outcomes for NAFA members and their clients, making them a valuable partner in any deal. Additionally, jetAVIVA keeps a pulse on the state of the aviation market, providing NAFA members with up-to-date insights and trends. 

jetAVIVA CEO Emily Deaton comments, "jetAVIVA is dedicated to supporting NAFA's membership with our expertise and established track record of success. We look forward to contributing to the association’s mission to provide the highest quality services the industry has to offer.” 

To learn more about jetAVIVA, visit https://jetaviva.com.  

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. To add your company to our world-class network of the best in aircraft finance, sign up at https://www.nafa.aero. 

FOR IMMEDIATE RELEASE: December 11, 2023    

Contact: Tracey Cheek 
tlc@nafa.aero  
405.850.1292  

Eli Mansour 
emansour@swlaw.com  
858.910.4772 

NAFA Welcomes New Member: Snell & Wilmer  

National Aircraft Finance Association (NAFA) is pleased to announce that Snell & Wilmer has recently joined its network of aviation professionals. Snell & Wilmer is an aircraft transaction advisory service that helps clients make the best decisions when buying, selling or owning a business aircraft.  

“We’re excited to welcome Snell & Wilmer to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members,” said Ed Medici, NAFA President.  

About Snell & Wilmer: 
Founded in 1938, Snell & Wilmer is a full-service business law firm with over 500 attorneys practicing in 16 locations throughout the United States and in Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. 

Snell & Wilmer’s aircraft law practice consists of knowledgeable attorneys experienced in the legal issues facing aircraft owners and operators, air carriers, flight schools and fixed base operators and other aviation-related service providers. They provide a full range of legal services related to the acquisition, ownership and operation of aircraft, tax planning and ownership structure, fixed base operators, maintenance and repair organizations and other aircraft service providers, FAA and DOT regulations, aircraft and component product liability and accidents and other aviation transactional and litigation matters.  

Snell & Wilmer attorneys have experience in federal, state and local legal issues applicable to aircraft operations and transactions. In addition, several hold FAA pilot licenses and have diverse operating experience, including charter operations and military aviation. 

For more information, visit swlaw.com. 

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. 

While engaging an aircraft broker adds a cost to the transaction, the benefits they bring in terms of expertise, market intelligence, time savings, and risk mitigation often outweigh the associated fees. However, choosing a reputable and experienced broker is crucial to maximize these advantages. NAFA member, Duncan Aviation was founded as an aircraft brokerage organization, and the Aircraft Sales & Acquisition team has been working with jet and turboprop owners on the sale and acquisition of aviation assets for more than 65 years.

There are 7 main reasons why you’ll need a broker when buying or selling a private jet.

1. Market Expertise: Aircraft brokers have in-depth knowledge of the pre-owned business jet market. A highly skilled brokerage team will be backed by an experienced technical team. They stay up-to-date on current market trends, aircraft values, equipment obsolescence, inspection programs, modifications, technical and performance specifications, and other relevant factors. This expertise allows them to provide valuable insights and guidance to clients, helping them make informed decisions in a complex marketplace.

Read full article here

Can you be sure a pre-existing lien on your aircraft won’t come back to bite you? Gerrard Cowan polls a selection of experts to understand the nature of liens, how to check and safeguard against them, and what to do if a notice of foreclosure is served...

Liens can be a complex factor in business jet ownership, posing financial challenges for aircraft operators. Owners must ensure they fully understand the nature of any liens on their own aircraft, according to industry experts, while buyers should secure the best possible industry advice in any transaction.

There is a wide array of liens that can attach to an aircraft, its engines, or related components. But it is liens relating to financing that tend to be enforced more than other types, according to Brian Macbean, Director of Credit & Sales at AOPA Aviation Finance.

“Any time the aircraft is used as collateral for a loan, the lender will file a lien on the aircraft. Lenders that specialize in aircraft financing often file liens on the aircraft, the engines, and the avionics,” he adds, pointing to the prevalence of mechanics’ liens, also.

Liens on US-based aircraft should always be filed with the FAA, Macbean notes. “Depending on the specific scenario, a Uniform Commercial Code (UCC) filing could also be an effective method to assert interest or influence relating to an aircraft.”

Liens generally fall into two categories, according to Lori McGee, Partner at Jetstream Aviation Law, including consensual and non-consensual liens.

Consensual liens are typically agreed-upon between a lender and an owner, or another party with an interest in the property, McGee elaborates. For example, this could include aircraft mortgages and security agreements.

Non-consensual liens arise by operation of law, not as the result of an agreement between the parties – mechanics’ liens being primary examples. In the US these are governed by state law and vary from one state to another.

“Although the specifics of this type of lien are different in each state, generally speaking [they] are meant to provide a person that performs work or supplies materials for an aircraft with an interest in that aircraft to secure payment for such work or materials," McGee says.

Read full article here

This article was originally published by AvBuyer on November 20, 2023.

NAFA member, David G. Mayer, Partner at Shackelford, Bowen, McKinley & Norton, discusses how buying a charter operator bypasses a long application process.

Aviation entrepreneurs seem increasingly interested in purchasing aircraft charter companies opportunistically from the thousands that exist today. Others who want to enter the aircraft charter business believe the cleanest way to do so is to apply to the FAA for a new air carrier certificate authorizing operations under FAR Part 135.

In most cases, a potential buyer fares better by purchasing the legal entity (Part 135 operator) to which the FAA issued a certificate. That purchase may take several months to close, whereas an applicant may have to devote a year or more to obtaining two separate authorizations—one from the Department of Transportation (DOT) under FAR Part 119 and a related certificate from the FAA.

Although you may have heard or read that a buyer can purchase a 135 certificate itself from a Part 135 operator, the FAR does not allow such a direct purchase. However, using various structures, a buyer can purchase a Part 135 operator with the effect of transferring the certificate to the buyer.

Read full article here

This article was originally published by AINonline on November 10, 2023.

FOR IMMEDIATE RELEASE: November 16, 2023    

Contact: Tracey Cheek 
tlc@nafa.aero  
405.850.1292  

David Coleman
President 
info@colemanjets.com
847.748.8333 

NAFA Welcomes New Member: Coleman Jet Solutions 

National Aircraft Finance Association (NAFA) is pleased to announce that Coleman Jet Solutions has recently joined its network of aviation professionals. Coleman Jets is an aircraft transaction advisory service that helps clients make the best decisions when buying, selling or owning a business aircraft.  

“NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support Coleman Jet Solutions’ services that play a role in advancing the interests of NAFA members within the aviation industry.”  
 

About Coleman Jet Solutions: 
Coleman Jet Solutions, located in Chicago’s North Shore, provides technical, regulatory and financial guidance in aircraft transactions.   

President David Coleman grew up in business aviation and has a keen interest in supporting financial institutions when complex cross-border or distressed transactions are necessary. This expertise led him to start Coleman Jet Solutions in 2021.   

With over 75 years of combined experience in the aviation industry, Coleman Jet Solutions helps clients make the best decisions when buying, selling, or owning a business aircraft. Their expertise in aircraft research, aircraft evaluation and negotiation techniques is for the sole benefit of its clients. 

For more information, visit http://www.colemanjets.com/. 
 

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. 

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.

Read full article here

This article was originally published by AINsight on September 8, 2023.

FOR IMMEDIATE RELEASE:  September 5, 2023                                    

Contact: Tracey Cheek  
tlc@nafa.aero  
405.850.1292  

Steve Hofmann 
President 
steve@thunderbirdairways.com 
713.649.1919 

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/. 

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.

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.”

Read full article here

This article was originally published by AvBuyer on July 5, 2023.

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.

Read full article here

This article was originally published by Essex Aviation on June 26, 2023.

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.

Watch the webinar here

This webinar was originally published by Shackelford, Bowen, McKinley & Norton, LLP on May 2, 2023.