Buying&Selling 3.qxp_Finance 22/03/2022 14:14 Page 1
BUYING & SELLING AIRCRAFT
AVBUYER.com
Selling Tips: Rules for Successful Jet Transactions Though the marketplace currently favors private jet sellers, aircraft transactions still require effort and organization from both parties. Aviation Director Andre Fodor shares some rules he applies to ensure success as a seller.
M
uch has been said of the Sellers’ Market existing in the pre-owned aircraft sales industry. With such a low level of inventory available, these are, without doubt, unprecedented times. Covid-19 has undoubtedly been a turning point in Business Aviation. The fear of infection and contamination, disruption to scheduled airline services, and the need to keep business functioning as normal have driven many first-time users into the sector. One financial advisor who used to preach a conservative approach to wealth and spending confided recently that his viewpoint and philosophy have changed. He now considers lifestyle to be a far more valuable asset, and, consequently, he views private aviation far more favorably. Late last year, fractional ownership and charter companies were operating approximately 30% 50 Vol 26 Issue 4 2022 AVBUYER MAGAZINE
more flight hours than they were pre-Covid – and that was just for leisure travel. Today, I consider myself lucky when I find any charter flights available to provide the additional lift needed by my corporate operation. Meanwhile, OEM backlogs are stretching into the latter part of 2024. As I recently assisted a client through the process of spec’ing a new airplane we were advised to focus on signing the Letter of Intent (LOI), and warned by the OEM of the risk of losing the available position within a few hours - since another customer had an LOI and a check in-hand, ready to buy the same jet. The pressure on the buyer within today’s market, whether seeking charter, pre-owned, or new aircraft is immense. If your finances aren’t in place, and all your ducks aligned to sign the contract, undertake the inspection, and close quickly, you are likely to miss out on a buying opportunity. Consequently, pre-owned aircraft are
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