Four Tips to Selling Your Aircraft

Four Tips to Selling Your Aircraft

by | Apr 21, 2020 | Blog

Buying or selling an aircraft can be an arduous process, but it doesn’t have to be. Here are four tips to help you get started.

Tip 1 – Choose Proper Representation

0Seeking a broker is a wise decision when choosing to buy or sell an aircraft. A broker’s sole purpose is to focus on selling your aircraft by using industry tools and leveraging his experience to accomplish the sale while keeping you aware of market conditions and valuations.Typically, an aircraft owner has other work to do and doesn’t have the time to be focused on answering dozens of phone calls about the specifics of the listed aircraft. This is one of the many reasons professional representation is recommended for a time-consuming, complex process such as an aircraft sale.

An aircraft broker is focused on keeping your aircraft in front of potential buyers, monitoring market changes, identifying potential competing aircraft that may be affecting the timely sale of your aircraft, and managing expectations of both the seller and buyer to accomplish the goal of selling the aircraft.

The broker’s network is a unique asset that can be leveraged in an aircraft purchase or sale transaction, and most buyers, sellers, and pilots do not have access to such a network. This is one of the most powerful tools when buying agents are seeking a valued aircraft – a trusted broker within their ranks.

Pilots and management companies can sell aircraft, but they may not have your well-being completely in mind and their relationships may be hindering the process. They most likely do not have access to software, services, and marketing media a professional broker uses daily. A professional and full-time aircraft sales broker has the bandwidth to respond to inquiries on your aircraft while a pilot may be flying and a management company may have other priorities. Having an experienced full-time broker assigned to your listing is valuable when buyers want answers and solutions expeditiously.

Tip 2 – Obtain an Aircraft Appraisal and Set a Realistic Asking Price

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Knowing the accurate value of your aircraft can be a scientific process to most experienced aircraft brokers. It is more complicated than finding a book value of your aircraft as it involves experience, market research, and a fundamental understanding of the market and condition of the aircraft.

Remember, your airplane is only worth what the market will pay for it. Your aircraft is an advanced piece of machinery, but its value may be similar to art – it’s only worth what someone is willing to pay for it. Don’t become emotionally attached, understand its value with a broker, set realistic expectations of when it is going to sell and for how much, and know what potential hurdles stand in the way.

In most cases, aircraft will sell close to market value, but it may take longer to sell your aircraft depending on its demand or lack thereof.

Additional equipment installed on your aircraft, in most cases, adds value to your aircraft but it may make your airplane less desirable to certain buyers depending on the situation. A trained broker can determine which upgrades make your aircraft more desirable or what might potentially create problems during a sale process.

Damage history is also important to disclose. In aviation, this can be a huge black eye, but it does not mean it can totally ruin a deal. Remember – there is always a buyer! There may be a buyer who wants a high-time aircraft with a manageable damage history to use for charter or personal use at a lower price. Your aircraft’s value will be diminished because of damage history or missing logs, but it does not mean it cannot be sold. Understanding this is important in managing your own expectations as well as others.

Once you and your broker have gone over the current market and a review of your aircraft and its potential value and/or challenges, a typical starting ask price should be clearly discussed. Let your broker know if you’re motivated to sell the aircraft swiftly or have time to wait for the right buyer at the right price.

Tip 3 – Communicate and be Transparent (Expect it too)

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Countless deals in business aviation have been aborted by a lack of transparency and communication, and in some cases even led to unwanted legal battles. Sellers, buyers, and brokers want to avoid legal battles at all costs and transparency and communication is key in preventing this heartache. If your aircraft has had damage or repairs, let your broker know. A minor repair may mean something more to the buyer but overcoming this objection early on saves everyone time and builds transparency.Communicate your expectations of the selling process to your broker and ask your broker to tell you theirs. You can save yourself and your broker a lot of time by identifying whether there is a fit or a mismatch in expectations before the process starts. A good broker will tell you if you have unreasonable expectations and a better one will tell you why! If you can find a broker that is able to communicate in a way that always has your interest in mind – retain them!

Tip 4 – Ask about Additional Services

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An experienced broker knows how to navigate the intricacies of the buying and selling process. He or she will also be able to recommend counsel, tax professionals, and trust companies that will help insulate you from potential pitfalls. They also can provide marketing in multiple media outlets that allow a larger scope of a potential buying audience to see your aircraft.Services such as professional photography and aircraft cleaning can go a long way when showcasing your aircraft to potential buyers. Most brokers include a basic level of photo advertising and cleaning with every exclusive listing.

If privacy is a concern or your company has strict public relations policies, most aircraft brokers know how to keep a transaction private or point you in the right direction to a discrete closing.

Pre-purchase inspection is also very important. Typically, you want to have a third-party maintenance facility to perform the inspection of the aircraft during “pre-buy.” This protects the buyer and the seller from surprises and keeps impartiality intact. A good broker can keep a deal together by informing the seller of any issues or “squawks” and communicating with the buyer or buyer’s agent of any potential areas for concern. Some pre-purchase inspections go smoothly, and some can be complex with issue after issue. Having someone paying attention and properly communicating with all parties can keep even the most difficult of inspections pushing towards a close.

 

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If you would like a complimentary appraisal of your aircraft, are interested in selling your aircraft, or want to learn more about purchasing your next aircraft, our team of aircraft sales professionals at Modern Aviation can guide you through the process and explain the intricacies of aircraft ownership.

Our top priority is identifying an aircraft that meets or exceeds your expectations and requirements. We are here as a resource to business leaders and entrepreneurs who want an extra leg up in today’s complex, competitive market.

Modern Aviation provides charter solutions as well as Aircraft Sales (new and pre-owned).

Email me at: gconley@modern-aviation.com for a discussion on selling your aircraft or purchasing one in today’s uncertain market conditions.

Five Reasons Your Business Needs an Aircraft

Five Reasons Your Business Needs an Aircraft

by | Apr 4, 2020 | Blog

In today’s uncertainty and volatility in the markets you may be asking yourself, “does owning an aircraft make sense?”
There are two factors that contribute to answering that question, your specific operation and business needs. Here are five reasons why owning an aircraft makes sense for your small, medium, or even large business.
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Reason 1 – TIME

When I first started my aviation career, I was having dinner with a successful executive in the abrasives industry. This was before I was in aircraft sales, so you could say I was a little “fresh.” We were having dinner and he leaned over and asked me, “Grant, do you know what I love most about having an aircraft for work?” I responded, “because it’s cool, you like flying?” He laughed and said, “Yes I love flying but it’s a time machine and it saves money, it allows me to be at home for dinner, with my family, after traveling to sales meetings all day.”

Most people in aviation understand this benefit, but often we forget that some businesses, entrepreneurs, and individuals haven’t thought about an aircraft as a “time machine” and all of the ancillary expenses associated with delaying a sales trip by a day or two.

TSA Lines can be excruciating depending on your departure time and airport. Having your own aircraft eliminates this altogether. Having your own aircraft also increases your security by limiting the people around you, your employees, and your family. Arranging for your aircraft to be fueled and ready to depart on your schedule only adds to your time savings.

How much is your time worth? An aircraft can give you the time savings you and your team need to be more efficient, especially with the unreliability and uncertainty of the airline industry.

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Reason 2 – COST SAVINGS

Most people scratch their head after hearing “Cost Savings” and “Aircraft” in the same sentence. However, it is true. Depending on which aircraft you own, the cost will vary but the opportunity costs, potential tax benefits, and time savings can contribute to your bottom line. In some situations, you may be able to write-off the entire depreciation cost of the aircraft. Our friends at Aero and Marine Tax Professionals can help you navigate tax laws and practices if you would like to learn more.

Think about it – how much does it cost you or your sales team to travel for a meeting or business function? Take your hotel expenses, airfare, food, and other business expenses and add two days of travel to this number. Why two days? It typically takes two days to travel to and from business meetings depending on the distance. That’s two days of additional lodging, food, and other expenses on top of your original business function. If you own an aircraft you can, in most cases, be home for dinner without the need to stay several nights because your airline flight isn’t available until the following day. Instead of making your schedule work around the commercial flight departure times, you can set your aircraft departure time around your schedule.

Some aircraft owners offset the costs of owning an aircraft by having a third-party manage their aircraft and charter the aircraft out during times you are not flying. This way it is generating revenue while you’re not using it. Although your aircraft most likely won’t become a cash cow, it can help offset some of your expenses by generating additional income.

By filling an appropriate number of seats on your aircraft with colleagues, while still remaining comfortable, you can maximize the benefit of operating an aircraft for business by cutting down on expenses. Finally, if you can reduce the amount of time spent traveling and help you and your employees spend more quality time with their families, you will not only improve your bottom line, you will most likely achieve higher employee appreciation and higher retention rat

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Reason 3 – PRIVACY

Having your own aircraft can mean increased productivity during your flight. Some aircraft come equipped with Wi-Fi and in-flight telephones which allow you to remain connected in the air.

You can easily be more productive when you have complete privacy. It can be extremely difficult to hold a meeting or even effectively communicate on commercial flights. Think about all of those unproductive hours on a commercial flight.

If you are bringing additional employees onto your aircraft you can easily have confidential meetings in the air, en route to your destination. Whether it’s your CFO or board members suggesting you maximize efficiency in the air, it’s wise to be more productive when you can – especially if one of the points of owning your own aircraft is to focus on cost/benefit elements.

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Reason 4 – TAILORED EXPERIENCE

Utilizing an aircraft for business doesn’t always have to be about…business. Oftentimes a trip can be extended for personal use.

Most aircraft owners love having an aircraft as a tool and love the tailored experience that comes along with it. You decide when the aircraft departs (weather and safety permitting) and you decide when the trip ends based on YOUR needs.

Having an aircraft will allow you to customize your sales trips and business meetings accordingly and hopefully in a more enjoyable manner.

 

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Reason 5 – ACCESSIBILITY

According to the United States Bureau of Transportation Statistics, there are over 19,000 airports in the United States. Only 5,000 of these airports are public/commercial airports. With access to airports that do not serve commercial airlines, you have the ability and accessibility to reach more customers, produce more sales, all while saving a significant amount of travel time. You choose the most convenient airport for you to get to, from your home or office, and you land at the airport nearest to your meeting(s).

Imagine what you can accomplish for your business, family, and future when given access to more airports using your aircraft.

 

Want to learn more?

If you would like to learn more about how owning an aircraft can help and improve your business and family, our team at Modern Aviation can guide you through the process and explain the intricacies of aircraft ownership. Our top priority is identifying an aircraft that meets or exceeds your expectations and requirements. We are here as a resource to business leaders and entrepreneurs who want an extra leg up in today’s complex competitive market.

Modern Aviation provides charter solutions as well as Aircraft Sales (new and pre-owned).

Contact:  Email me at: gconley@modern-aviation.com for a discussion on how owning an aircraft can benefit you and your team.

 

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How Your Business Can Survive During a Crisis, Using Business Aviation

How Your Business Can Survive During a Crisis, Using Business Aviation

by | Mar 18, 2020 | Blog

Does your company depend on travel to conduct business?

Airlines are notorious for cancelling flights during market changes and emergencies. Your business and your customers can’t rely on uncertainty. Scheduled service from the airlines can easily be disrupted during emergencies, pandemics, economic downturns, and more.

These scenarios require business leaders to adapt to allow their businesses to survive. Not only is the bottom line important, but the welfare of your employees is equally important.

Business aviation can provide a few options when “normal” travel is no longer available.

Two main options are present for businesses and individuals.

 

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Option 1 – Book a Chartered Aircraft

This option is widely used by various individuals, families, and businesses, to travel to almost anywhere in the world. This option allows most people to travel without the hassle of TSA Lines, baggage lines, and in most cases without even the need to interact with other people.

Prices vary greatly depending on distance and aircraft used but, it is a very effective option in saving time. The downside might mean you won’t have complete control over the departure time or who the passengers are on-board.

Benefits Include:

  • Ability to customize trips that fit your needs
  • Ability to choose from a majority of airports
  • Ability to travel alone
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  Option 2 – Purchase an Aircraft for Your Business or Family

This option is a great for businesses and families who want complete control over their flying options. This allows businesses to place their employees, executives, or families on private aircraft.

Benefits Include:

  • Complete control over departure times
  • Maximizing time by allowing business to be conducted in the air without distraction
  • Eliminating airport lines and check-in times by boarding the aircraft and departing immediately
  • Limit exposure during an emergency or a pandemic to unknown people
  • Allows you and your employees to be home in time for dinner
  • Potential tax benefits for businesses which include write-offs and other advantages
  • Ability to choose from additional airports such as private airstrips and executive airports

Whether you choose option 1 or 2, having the ability of choice is key to adapting in business and in life. Both options offer their own attractive positions, and both can contribute to your bottom line by allowing your sales teams, engineers, executives, and family to travel expeditiously without the challenges presented by commercial airline operations.

If you would like to know more about how private aviation can help your firm or family during a crisis or challenge, our team of aviation professionals at Modern Aviation can guide you to the right decision.

Modern Aviation provides both Charter Services and Aircraft Sales.

Email me at: gconley@modern-aviation.com for a discussion on how business aviation can help your business and your family.