Is it the Time to Sell Your Aircraft? An In-Depth Guide
Times have been challenging for everybody due to the global pandemic. As an aviation asset management business, one of our main challenges has been making sure that airplanes complete their maintenance programs and ensure their continual airworthiness. This is essential for any aircraft to operate safely, but these service records also play a crucial part when selling an aircraft.
Aviation Market – The Current Status
The current aviation market is very active, and we have seen renewed interest from our own clients and new clientele in aircraft acquisition. There are several deals in progress currently. However, when you look at the market, the inventory of good-quality aircraft is actually drying up quickly. This reflects the fact that many people and companies now see business jets as a ‘safe haven’ – a safe means of flying.
Global Demand for Aircrafts
Global demand is picking up, and Empire Aviation has recently added a Gulfstream G650 to its fleet, operating out of Jakarta, Indonesia. This aircraft is managed on behalf of the owner and will transition into the charter market and be available for charters from that region, reflecting the growing interest in private aviation.
The demand for larger aircraft is still a feature of the Middle East region. Our managed fleet ranges in size from the Hawker 900 XP, and our charter fleet consists of the Embraer Legacy 650 to the Bombardier Global and the Gulfstream G650.
Empire Aviation has been in the market recently, searching for specific aircraft for clients. As a leading name in the industry, we can see that good aircraft are selling very quickly. Inventories are drying up, and there are fewer quality aircraft available.
People will continue to use these airplanes in growing numbers and go where they need to go to do business and are prepared to pay for the ultimate convenience.
Factors Affecting the General Market Outlook
Many factors are affecting the general market outlook. Some people and businesses have done very well in the pandemic, and it is no surprise that they choose to travel in comfort by buying a jet. At particular price points, airplanes are selling quickly.
Some of the major factors impacting the general aviation market outlook are:
- Global Economy
- Technology Disruption
- Price of Jet Fuels
- Regulatory Standards
- Travel and Tourism Trends
The market condition and trends surely depict it’s the right time to sell your aircraft. So, if you have a business jet in good condition, selling it now may prove to be a profitable venture for you.
How to Sell a Business Jet ?
Acquiring and owning a business jet is a very personal experience – and so is the sale of an aircraft.
Many business jet owners eventually reach a stage where they want to refresh their aircraft, upgrade to a larger model, or buy the latest addition to the growing number of new aircraft being launched by manufacturers. Or perhaps, their travel needs have changed. So, the typical missions were flown by the owner also need to be changed.
Much like there are personalized services for aircraft purchase, there is also a need for a bespoke approach to selling an aircraft asset to ensure a smooth and successful process and outcome.
Selling a valuable aircraft asset needs careful preparation and planning, from the marketing campaign, which will include a dossier with details of the aircraft specifications and high-quality photography of the interior/exterior to the pricing and negotiation strategy. A realistic market valuation is essential as a baseline for the offer for sale.
High-quality, well-maintained aircraft are generally sought after, but consideration still has to be given to the best market opportunity for the specific aircraft type. This is reflected in the media and other channels – including aviation networks- that may be used to advertise the aircraft.
Once offers have been received, careful review and evaluation from a technical aviation perspective are essential – and this should be the first step in the selling process.
Final Thoughts
Business aviation is on a stable upward path, with many new people coming into the market in terms of aircraft ownership and aircraft usage. We are having active discussions with people in most of the markets in which we operate to buy new aircraft, put them on management or charter, and come up with new and more innovative charter models.
All in all, business aviation has a bright future, and once countries open up and people are allowed to move around again more freely, we could see an additional surge in interest. More good news for sellers.
