Purchasing the right aircraft, at the right price, with the right terms, and avoiding unpleasant surprises can be a daunting process. Unfortunately, because of this, some aircraft buyers do occasionally make mistakes in their buying journey. Here is our advice on watching out for the most common pitfalls and how to avoid them.

Don’t Base the Purchase Solely on Price—Some buyers believe that buying the cheapest is always the best option. Instead, buyers should purchase a well-maintained aircraft with a good pedigree (not too many owners, with a solid manufacturer’s maintenance program, and service performed at an authorized center that kept well documented aircraft records and engine logs), rather than looking for a bargain deal. If not, it could leave buyers with additional maintenance costs down the road. It is important that a buyer knows whether or not the aircraft for purchase is enrolled in a manufacturer maintenance plan, or if there is any remaining warranty that can be transferred.

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Tom Hauge, National Sales Director, Wings Insurance
[email protected]

How long have you been at your current organization?

I started at Wings Insurance in February of 2004. Prior to joining Wings I spent a short period of time in the Reinsurance business working for the world’s largest Reinsurance broker.

What are your responsibilities within your organization?

I am the National Sales Director for Wings Insurance. I also take on the role as my firm’s industry focal for many professional aviation organizations that we support and participate in such as National Aircraft Resale Association (NARA) and the numerous aircraft ownership organizations that exist in the turbine aircraft marketplace (Citation Jet Pilots, TBM Owners, Phenom Owners, Meridian/Malibu Owners, Pilatus Owners etc). Finally, I mentor and oversee our sales staff and lead sales initiatives for our aviation insurance product line.

Describe a typical day or week in your role.

A typical day in my role usually involves interaction with my team in preparing insurance renewal proposals for our current client base. In addition to our existing clients – my team usually has anywhere from 3-5 new business opportunities we are working on every week which range from light aircraft up to commercial aviation risks – we do focus heavily on turbine risks which makes up the bulk of our book of business. In a week’s time I typically will have some travel away from home office. My time away from the office generally will involve visiting clients in our company aircraft or traveling to a convention or outing in support of the owner/pilot and professional aviation organizations that we support.

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Product Overview

Embraer began designing the Phenom 300, a light jet aircraft, after finding that potential customers of the Phenom 100 would also like a bigger aircraft. Designers took the basic fuselage cross-section of the 100 and added an extra 14 inches in length, an all-new wing, and powerful and quiet Pratt & Whitney Canada turbofan engines.

As of May 2016, 15% of the Embraer Phenom 300 aircraft were purchased pre-owned by their current owners, the other 85% new. 5.6% are currently for sale with the majority of those (72%) under an exclusive broker agreement. When for sale, the average number of days on the market is 255.

Brief History

The Embraer Phenom 300 first flew in 2008 and received FAA Type Certification in December 2009 as the Embraer EMB-505. A total of 342 Phenom 300 aircraft have been produced with 324 of them in operation. Two Phenom 300 business jets have been retired.

Worldwide Appeal

There are 324 Embraer Phenom 300 aircraft in operation today. Most of these are owned outright (233) with 4% currently leased. North America has the largest percentage of Phenom 300 aircraft (56%), followed by South America (22%) and Europe (16%).

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Written by Marius Breitenbach, Sales Director
[email protected]

When the time comes to sell your business jet, what are some critical factors you need to consider before placing the aircraft on the market to ensure you maintain control of the transaction process, achieve a successful outcome and minimize your deal costs?

Many owners make the decision to sell their aircraft based on the expectation of a future event, whether that is a new aircraft coming on the market, the end of a lease, or the sale or expansion of their company. It is often found that the event driving the decision has a specific date for closing, and this is also the desired date for the sale of the current aircraft.

As a seller of a corporate aircraft, the benefits of properly preparing a sound game plan for putting your jet on the market comes down to appropriate long-term planning. Such a strategy should be cornerstoned by a well thought-out business plan, which strategically takes into account market conditions and your company’s growth. Most importantly, knowing the true value of your aircraft in today’s marketplace is an essential first step toward a successful sale.

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Peter Antonenko, Chief Operating Officer, Jetcraft
Location: Minneapolis, MN, USA
[email protected]

How long have you been at Jetcraft?

I joined Jetcraft in November 2006.

What are your responsibilities within the global Jetcraft team?

Management of legal and transaction management matters, corporate and transaction strategy, marketing and IT oversight, member of the board of directors, and manage outside counsel.

Describe a typical day or week in your role.

I typically start the day addressing current deals that are either pending or working to become pending. This includes working with the legal, transaction management and sales teams, and coordinating with other members of the board on upcoming opportunities. I’ll also handle delegation of deals to the various transaction management team members and to outside counsel who may be assisting us. Depending on the day, I’ll have meetings with the marketing team to discuss upcoming events or other marketing activities, and if a board meeting is coming up, discuss what if anything we’ll need to present to the board on behalf of marketing. As a transaction-focused organization, much of what I do is centered around getting deals done.

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Product Overview

The Gulfstream G650 is the fastest business jet ever built and has one of the longest ranges. The fuselage cross section is a unique oval shape with 8 large (28 inch) cabin windows on each side and the highly efficient wing has a greater sweep (36 degrees) than previous Gulfstream models. It is equipped with a fly-by-wire flight system.

As of May 2016, 8% of the Gulfstream G650 aircraft were purchased pre-owned by their current owners, the other 92% new. 11.7% are currently for sale with the majority of those (79%) under an exclusive broker agreement. When for sale, the average number of days on the market is 149.

Brief History

The Gulfstream G650 debuted in 2012. There have been a total of 158 aircraft produced with 120 currently in operation.

Worldwide Appeal

Most of the 120 Gulfstream G650 aircraft in operation today are owned outright (119) with 7% currently leased. North America has the largest percentage of Gulfstream G650 aircraft (55%), followed by Europe (23%) and Asia (15%).

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Written by Chad Anderson, Jetcraft President
[email protected]

With so much focus on the surging North American business aviation market, we should not forget Europe. Even though strict rules on lending practices and continuing currency issues do pose some challenges, Europe continues to show economic resilience. The continent still has buyers and sellers, although fewer than previous years.

Despite such challenges, we continue to see activity in the European business aviation sector as it comfortably remains the second largest market next to North America. The European business aircraft fleet is one of the world’s youngest, with close to half of its aircraft being less than ten years old. In addition, transaction activity remains steady-state for Europe. Our own market analysis points to Europe accounting for 14% of the total worldwide business aircraft deliveries throughout the next decade— not far from its traditional 15%-unit delivery share.  Such activity reinforces the fact that Europe remains a healthy place to do business. And we see activity primarily from North America fueling Europe’s business jet engines.

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AvBuyer Magazine, May 2016
by Ken Elliott

Helping you understand the technology, integration and advances of aircraft avionics and equipage, Ken Elliott concludes a five-part series on aircraft connectivity, this month with a brief history followed by an insightful look to the future.

Last month we addressed the expanding use of walk-on Personal Electronic Devices (PEDs) on board aircraft, and how they reduce the need for permanently installed equipment. PEDs also allow the user to seamlessly function with the same device and familiarity as experienced on the ground.

While this capability is profound in itself, let us take a step back and look at the wider aspect of future aircraft connectivity.

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Devri Pitts, Independent Association Director, NARA

How long have you been at your current organization?

I started working for NARA (National Aircraft Resale Association) in the Fall of 2004.

What are your responsibilities within your organization? 

I am the Independent Association Director. I work closely with the NARA Board and Products & Services Member Advisory Council to provide Association management, membership services, and administrative support. I also plan NARA meeting functions and to oversee and coordinate NARA’s marketing efforts.

Describe a typical day or week in your role.

Each day I communicate with our Board of Directors on current action items, whether that be marketing initiatives, upcoming meetings, committee organization, or Association management details. I also handle the day-to-day member communications including responding to membership inquiries and current member requests, as well as the day-to-day finances that keep the Association humming.

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