Everything You Need to Know About Selling Your Jet

In the first of a comprehensive, two-part series that offers some valuable insights on the complex process of selling a jet aircraft, I’d like to begin by focusing on this important preliminary step: How to pick a broker and knowing what to look for.

Guardian Jet Gulfstream 550 how to sell a jet NBAA 2016 static displayHaving as much knowledge and understanding about the brokerage professional representing you is vital to the process.

Keep in mind that your relationship with them is, for all intents and purposes, a “strategic partnership.”

Before you shake hands and agree to work together, you should familiarize yourself with their operation. In doing so, you’ll gauge how valuable they’ll be to your sales goals, how they work, what their relationship with you and potential buyers will entail, and many other important considerations.

After all, you want to be sure what the broker you select is capable of doing for you. What background, skills, technology, relationships and marketing experience can they summon to the job of selling your aircraft?

 

Value, value, value

Understanding an aircraft’s value is a core competency of any broker; it’s also the most important.

The pre-owned aircraft marketplace is an incredibly intelligent one that rarely overpays in value. This makes pricing your aircraft extremely important. Price too low and you give away money. Price too high and you’ll end up chasing the market down over time, and/or not selling at all.

What knowledge and tools does your broker use to value aircraft? And what is their pricing strategy?

At Guardian Jet, we’ve build a robust, proprietary system to continuously tracks the aircraft values of more than 125 aircraft markets. The data is at our fingertips, 24/7, and it’s also available to our clients online through our client portal called “The Vault.”

 

Keep it “open

Here at Guardian Jet, if we happen to be representing you as your broker, it’s our strong belief that we must work to ensure complete transparency throughout the sales process. If we’re working in your behalf, our process is to help you know everything that’s going on.

Through “The Vault,” we keep you up-to-date of all activity on your aircraft as well as important documentation related to the sale.

 

Make it “shine”

Aside from pricing, prepping your aircraft for sale is the most important component to help distinguish it so that it stands out from the masses of others in the marketplace. As a part of that, you have to probe the brokers you’re considering to help you in the sale regarding several aspects of their services, and how they’re going to position your aircraft:

  • What’s their experience?
  • What’s their marketing strategy?
  • How many other sellers are they representing? What’s their position regarding exclusivity?
  • How many aircraft do they sell annually, and what’s their sales tally over the past two or three years?
  • How do they collect data on your aircraft and what do they collect?
  • How—and how timely—do they handle sales call follow-up?
  • Most important, what happens after the sale? Will the broker serve as your partner and help you create an asset management strategy so you know the value of your aircraft throughout its lifecycle?

Regarding the first bullet, you’ll want to fully explore their experience, including their client list, client references, their marketing plan, their network of potential buyers and whether they’ve formed any exclusive relationships in the marketplace. How big a sales team do they operate with? Is it just one broker who handles everything?

As obvious as it might seem, remember that whatever broker you choose to handle your sale should organize and review all details of your marketing with you before your aircraft goes on the market.

Here at Guardian Jet, it’s our practice that when we complete the listing agreement we immediately start all the preliminary steps to ensure that your aircraft will be seen in the best possible light. That includes setting up a highly professional photo shoot.

 

Make it “marketing-friendly”

Keep in mind that, these days, the first exposure someone has to your aircraft marketing will be online (via AMSTAT, JETNET, Controller, etc.). In our case, the majority of prospective inquiries originate from these sites.

To ensure that your aircraft stands out among the crowd, you’ll want the most in-depth aircraft specification (brochure) in the market. This includes the latest data on the aircraft as well as photos taken by a professional photographer.

Guardian Jet’s aircraft specs are part technology, part sales and marketing. Therefore, our “brochure” caters to both pilots and potential owners.

 

Make it “timely”

Lastly, what can you expect in terms of timing for your sales cycle? How long does the broker typically average to sell an aircraft?

In a depreciating market (which aircraft markets typically are) the faster the aircraft sells, the more money the market will bring.

Correctly identifying the value of the aircraft up front is the biggest hurdle in moving your aircraft fast. A good rule of thumb is a range of between 90 and 180 days if your aircraft is appropriately priced to sell.

Remember, a well-priced, well-maintained aircraft with a representative of the crew who can answer and all questions about the plane that might arise are some of the basic components of a quick sale!

 

Next up . . .

In my next blog, I’ll be discussing market conditions necessary for a quick, effective sale. What do you need to consider or plan for before you list your business jet? We’ll be exploring that issue at length, so please check back with us!

Posted in Aircraft For Sale, Business Aviation, Fleet Planning, Ownership | Leave a comment

A Superb Gulfstream V Exclusively Offered by Guardian Jet

In a one-of-a-kind offering, Guardian Jet is representing the sale of what can only be described as the finest Gulfstream V on the market today.

Gulfstream V flying in the blue sky - Guardian Jet

Impeccably maintained to the highest safety standards, this beautifully appointed, ultra-long-range, turnkey Gulfstream V is currently owned and operated by one of the most exclusive, membership-only, charter providers in the U.S.

Bold and graceful, this exceptional aircraft has an outstanding history of care and ownership.

And it offers a passenger experience filled with superlatives.

In addition to an interior that boasts ultra-fine leather seats and exquisite custom bedding, the Gulfstream V offers, among many other highlights, the following:

  • Worldwide high-speed wireless internet
  • High-definition monitor
  • Dual galleys with main galley aft
  • FANS 1/A and ADS-B (Out)
  • Forward and aft lavatories
  • Expanded 2-place crew rest
  • 192-month inspection completed (No expense was spared to make this airplane globally compliant)

This Gulfstream V conveys luxury and sophistication at every turn and has the perfect layout for business or pleasure.

Among its many other outstanding features, it’s equipped with a full cabin management system, bone china, crystal and an espresso machine to enjoy fresh cappuccino at 47,000 feet.

Gulfstream V forward 4-person club seats - Guardian Jet

 

The 4-place forward club is an ideal place to spend quality time with family or colleagues.

 

Gulfstream mid cabin dining - Guardian Jet

 

The mid cabin area is designed to enjoy a perfect gourmet dining experience at 47,000 feet.

 

Gulfstream V floorplan - Guardian Jet

 

This Gulfstream V layout is ideal for both large parties and smaller executive travel. It’s certified for up to 16 passengers and seats 14 in the main cabin.

 

Seating options include:

  • Four-place club seating with two foldout tables in the forward cabin.
  • Two-place divan in the entry vestibule; area functional for crew rest with forward lavatory.
  • Four-place table and large credenza in the center cabin, which is ideal for both dining and business meetings.
  • Two-place club seating and a four-place berth-able divan in the aft cabin area.
  • Area in the mid-to-aft cabin can be secluded using the existing privacy screen.

Gulfstream aft sleeping area - Guardian Jet

The aft cabin area offers full privacy for overseas trips so you will arrive rested and ready to go. The aft area also offers a large passenger lavatory as well as in-flight access to the aft baggage area.

Gulfstream Galley - Guardian Jet

FEATURES:

  • Wemac cooling unit
  • High-temperature oven
  • Coffee maker and hot liquid container
  • Whirlpool microwave
  • Dual ice drawers
  • Multiple 115V/400 cycle outlets

Flight Deck

This jet’s avionics upgrades comply with future regulatory mandates, including ADS-B Out and FANS1/A, allowing you to fly worldwide.

Gulfstream avionics flight deck - Guardian Jet

  • Avionics: Honeywell Primus SPZ-8500 system
  • Airborne Flight Info System: Honeywell AFIS data mgt. system, VHF and satellite capability
  • Air Data Computer: Triple Honeywell AZ 840 micro air data computers
  • Attitude Heading Reference System: Triple Honeywell
  • Automatic Direction Finder: Dual Collins ADF-462
  • Auto Throttles: Dual function of IAC
  • Autopilot/Flight Director: Honeywell SPZ-8500
  • Cockpit Voice Recorder: Universal CVR-120
  • Communications: Dual Collins VHF 422C with 8.33 spacing
  • Distance Measuring Equipment: Dual Collins DME-422
  • Emergency Locator Transmitter: Artex 406-N ELT
  • Flight Data Recorder: DFDR and QAR
  • Flight Guidance Computer: Dual Honeywell IAC computers
  • Flight Management System: Dual Honeywell FMS and single Universal UNS-1ESPW FMS
  • Global Positioning System: Dual Honeywell HG2021GD02 GPS
  • Heads-up Display: Honeywell EO-200 HUD
  • High-Frequency Radio: Dual Collins HF 9034A transmitter/receiver
  • Lightning Sensor: Honeywell LP-860 lightning sensor processor
  • Long-Range Navigation: Triple Honeywell IR-310 inertial reference units
  • Navigation: Dual Collins VIR-432 receivers
  • Radio Altimeter: Dual Honeywell RT-300
  • Standby Flight Instrument: Smith standby alt/air indicator
  • Terrain Awareness & Warning System: Honeywell Mark V EGPWS with windshear warning
  • Traffic Collision Avoidance System: Honeywell TPU-67A (TCAS II) with change 7.1
  • Transponder: Dual Collins TDR-94-D with Flight ID, enhanced surveillance with 8 downlink parameters
  • Weather Radar: Honeywell WU-880

Cabin Entertainment

With the superb, cabin-based features this aircraft offers, you and your passengers will be able to tap the jet’s worldwide connectivity to catch up on work or, if you choose, enjoy your favorite movie in high definition.

  • Airshow 400
  • Rosen DVD player
  • Forward HD video monitor
  • Credenza monitor
  • (6) 5.6” Rosen swivel monitors
  • (4) Camera External System
  • 14” swivel monitor at aft-cabin divan armrest

Global Communications 

  • Aircell ATG 4000 GoGo Biz US domestic HSD
  • Swift broadband worldwide HSD
  • Aircell Axxess II Iridium transceiver and phone system with 5 handsets
  • WiFi – Aircell Cabin Router

  Maintenance & Inspections

  • APU on JSSI
  • Avionics on Honeywell Avionics Protection Program (HAPP)
  • Enrolled in Honeywell Mechanical Protection Program (MPP)
  • Maintained per part 135, Chapter 5 and Due List
  • CAMP maintenance tracking program
  • Recent 192-month inspection completed (most items due in 2027)

 

The engines are maintained “on condition,” requiring no specific overhaul interval, thus typically reducing operating costs. Many owners prefer reduced annual cash flow associated with an on-condition engine program, saving up to $700,000 per year.

To schedule a private showing, please call Guardian Jet at +1-203-453-0800 or email us.

You may also view a complete list of specifications for the Gulfstream GV serial number 550.

 

About Guardian Jet

At Guardian Jet, we elevate corporate jet decisions to a higher strategic level.

Founded 15 years ago in 2002, our core concept has always been to earn the right to buy and sell aircraft on behalf of our clientele by providing consistent business value to our clients.

We do this by offering excellent consulting advice, market intelligence and flawless execution.

Our unmatched experience, combined with proprietary data analytics, help us deliver the insight you need to make aircraft decisions, and help you manage your aviation assets to maximize value and drive down ownership costs.

A passion for aviation is a common thread that drives our focus on integrity and industry expertise.

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In Aircraft Sales is it Better to Buy New or Used?

aircraft sales buy new or usedAs residual aircraft values continue to drop, many companies and individuals with a history of buying new aircraft look to the resale markets to update their aircraft.

While this is not an unwise decision, you might be better served to buy a late model aircraft directly from the Original Equipment Manufacturer (OEM).

Here’s why:

Today, many aircraft owners are holding on to their aircraft longer before replacing. This is an excellent strategy if your current aircraft will be your last one (See “Will You Be the Last Owner of Your Aircraft?” BAA Nov/Dec 2014).

But if you plan to replace that aircraft, hanging on to it longer in a declining market could result in a significant decline in your eventual trade-in value, and cost more in the long run.

You definitely will write a bigger check when you do replace the aircraft.

Unsurprisingly, as residual values fall, selling new aircraft becomes a more difficult job for the manufacturers. But what is a challenge for the OEM can be an opportunity for you, the buyer.

While several factors, including original purchase price, operating costs, and tax benefits, must be included in the total cost of ownership, the three biggest factors now are residual value, the currency of the aircraft model (when was the model first introduced), and market supply.

Residual Value

The eventual disposition price, or residual value, of the aircraft has a significant impact on your total cost of ownership.

Light jet and turboprop pricing in the latest models stabilized more than a year ago, making their residual values, and thus the total cost of ownership, more predictable, while the larger cabin markets have fallen dramatically during the last two years, and are just now beginning to stabilize.

Although you don’t have to wait for market stabilization to upgrade your aircraft, it is a factor in whether to buy new or used.

A preowned market, with rapidly changing residual value, is far more volatile than new aircraft purchase prices.

Currency

Recently introduced models like the Phenom 300 and Gulfstream G650 fare better than do older, “legacy” aircraft. Introduced in 2009, both aircraft have limited numbers in service, and have enjoyed strong residual value histories.

Consider the company which two years ago replaced a Gulfstream V (purchased new) with a newer model preowned Gulfstream 550, while waiting for the ultimate replacement aircraft, a new Gulfstream 600, due for a 2020 delivery.

After analyzing that total cost of ownership under both scenarios – keeping the GV until the G600 arrived, or trading the GV for the G550 and then trading that for the G600 – it was determined that taking the intermediate step of buying the G550 was no more expensive than trading directly from the GV to a G600.

Market Supply

Every OEM works hard to produce the right number of aircraft for the current market reality: a challenge, since a new aircraft is, to some degree, comprised of outside vendor parts. Companies have used furloughs, layoffs, and product line reductions to achieve their goal of matching supply with current and forecasted demand.

For example, at the end of 2015, there were a number of new, unsold Global 6000s available for immediate delivery, while at the end of 2016, none were available. This dearth leads to more disciplined pricing, which in turn leads to more stable residual values, then to less risky purchases of new aircraft.

No single solution is right for everyone. Selecting the right aircraft, at the right time, at the right cost to meet your travel and budgetary needs, requires a careful analysis of many factors.

Today, new aircraft acquisitions are winning the analysis battle more often than in the last few years.

So don’t rule out looking to the OEMs for your next aircraft.

 

This article originally appeared in Business Aviation Advisor in January/February 2017.

Posted in Aviation Industry, Business Aviation, Fleet Planning, Ownership | Leave a comment

The Rise of the Business Aviation Professional

The rise of the business aviation professional.

This is a topic that’s very near and dear to my heart because it’s very much aligned with the way we’ve tried to build our company—to help aviation leadership.

 

 

So, just for fun . . . the way we got started on this topic (because we knew we wanted to do some research on it) was that we got our hands on a 1972 NBAA membership list. We went through the leadership of all the members were pilots.

So that tended to be, back now 40 years, the way that flight departments were selected. Or it was the Chairman who hired a chief pilot who might have had some military background.

The flight department tended, even in very large organizations, to operate an autonomous standalone entity. Maybe a little dark hole. But it was it was not the well-scrutinized department that we find in most large companies today.

One of my favorite descriptions by a very “switched on” aviation business leader.

When he was a young pilot, he went into his boss and said, “Hey listen, I think we should do some fleet planning and, you know, start looking at this like a business.”

And his boss had his feet up on the desk, and he was reading the paper, and said, “Listen, son, when we need new airplanes, the boss will tell us. Thanks. Now go back to work flying the line.” Then he put up his paper.

That’s the kind of the way things were done in the “old days.”

Today we’re seeing a dramatic shift in the leadership of aviation flight departments—from strictly flight ops, where of course you had flight operations, with an HR component. And there was some financial responsibility, but it tended to be building an annual budget.

We’re looking at a tremendous shift in that leadership. Now it’s moving away from just managing flight ops to managing a business unit.

Look now at the number of maintenance technicians that are running very sophisticated flight departments.

One of my favorite credentials are an ATP and an IA with a MBA and JD. I won’t mention any names as he’s a very humble individual (Pat), but he’s just an outstanding candidate.

By the way, in a Fortune 20 company, an aviation manager was selected from the business. He came into the department as the business manager for the flight department and rose up through the ranks and is now director of aviation.

So you’re seeing a real shift, thanks to NBAA, aviation universities, and other forward-looking companies, like ours, that are providing a lot of resources to aviation managers to help them become more sophisticated and speak the language of the senior business leaders.

As leaders of business aviation business units today, our financial responsibility goes well beyond creating a budget.

Now we’re even doing things like accurately inputting income for executives. We’re managing transportation solutions as opposed to flying airplanes. We look at charter. We look at fractional. We look at its role in their company as supplemental to the core fleet or as a replacement to core fleet. We look at it, and we make a business decision.

There’s a toolbox and all these components are tools that go in the box. That’s the difference from just driving airplanes and fixing airplanes in the old days.

We also look at creating fleet plans that are consistent with capital budgeting criteria–from P&L book reporting, life cycle cost, net present value (NPV) to associate the time-value of money with a fleet. There’s a lot more going on now.

The bottom line is that the aviation manager today wants to be integrated into the strategic vision of his company.

He wants to speak the language and present his case in the language in the format that business leadership speaks. And he earns the right to say, “this is what we think makes the most sense for our company in our flight department.”

It’s just a very exciting time and we’re very excited to be a part of it.

Please get in touch with us if you think that we have some resources in our Learning Center that will help you.

 

The bottom line, we want to help you do your job better and that’s what we’re trying to accomplish.

 

Thanks so much.

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Guardian Jet Welcomes Roy Gioconda as Director of Maintenance

Roy Gioconda Director of Maintenance Guardian Jet

GUILFORD, Conn. – June 2017 – Aircraft maintenance professional Roy Gioconda was recently named Director of Maintenance for Guardian Jet LLC, the Guilford, Connecticut-based business aviation consulting and brokerage firm.

In this newly created position, Gioconda will play a critical technical role for Guardian Jet, in which he will oversee the myriad technical aspects of aircraft transactions for the firm’s clients.

He will also help support Guardian Jet’s sales, acquisition and consulting team by providing sound technical advice, aviation research and key insights.

“As our DOM, Roy will touch all of the things that pilots care about — from the airframe to avionics — as well the things in back that passengers care about — Wi-Fi connectivity and entertainment systems,” said Mike Dwyer, Managing Partner, Guardian Jet.

Gioconda brings to Guardian Jet more than 35 years of aviation industry experience in all aspects of aircraft maintenance—from Part 121 (commercial aviation) and Part 135 (charter), to Part 91 (general aviation) and Part 145 (maintenance repair) environments. He is a recognized authority in aircraft maintenance, inspection, quality assurance and quality control.

“We’re creating this new position because we understand that our sophisticated clients are best served, and our aircraft transactions best managed, when we deploy technical ‘boots on the ground’—be it in Singapore, Savannah or other parts of the globe,” said Don Dwyer, Managing Partner, Guardian Jet.

Gioconda says a Director of Maintenance on staff at an aircraft brokerage firm may seem unusual, since they are typically associated with flight departments, air carriers and repair stations, but he believes it will be beneficial to the clients of Guardian Jet.

“Having a DOM in-house at Guardian Jet ensures that our clients receive technical assistance with their transactions,” Gioconda said. “This provides additional value to our clients and ensures that Guardian Jet continues to be a leader in the industry.”

Prior to joining Guardian Jet, Gioconda served as a senior managing consultant for IBM Global Business Services’ Digital Operations Center of Competence. He also worked for CAMP Systems International for seven years, serving in progressive positions that included Field Service Representative, Manager of Field Services and General Manager of Customer Support.

“Far and away, what impresses us most about Roy—beyond his technical capabilities and industry reputation—is his character, his demeanor.” Mike Dwyer said. “He relates extremely well to people, and when there are conflicts (which there always are), Roy will resolve them by understanding the issues. I know he’ll always put our clients’ needs first and do so in a very pleasant, confident, professional fashion.”

Gioconda began his career as an aircraft mechanic at American Airlines, where he spent 19 years in aviation maintenance and quality roles. He has also worked for Flight Options, Jet Logistics and FlightWorks, where he was Vendor Manager, Director of Maintenance and Director of Quality, respectively.

He graduated from Embry-Riddle Aeronautical University in Daytona Beach, Florida, and holds an Airframe and Powerplant (A&P) certificate issued by the Federal Aviation Administration.

About Guardian Jet
Founded in 2002, Guardian Jet, LLC, offers business aviation brokerage, consulting and oversight services for thousands of clients worldwide. The company distinguishes itself with its focus on integrity and industry expertise, and by consistently providing business value to clients. Guardian Jet’s core mission has always been to earn the right to buy and sell aircraft on behalf of its clientele by providing great consulting advice, market intelligence and flawless execution. For more, visit guardianjet.com.

Posted in Announcements, Guardian Jet Team, News | Leave a comment

Guardian Jet Hires First Director of Maintenance, Roy Gioconda

Roy Gioconda Director of Maintenance Guardian Jet

We’re excited to announce our newest member of the Guardian Jet family.

Welcome Roy Gioconda, our first-ever Director of Maintenance.

And he’s already off to a tremendous start.

This week he attended the NBAA Maintenance conference and met with more than 20 maintenance organizations.

His goals were to understand how each of these maintenance providers can help us provide better technical capabilities and customer service to the sophisticated customers who buy and sell airplanes with Guardian Jet.

So, just what will Roy do as our Director of Maintenance?

Firstly, he’ll help support Guardian Jet’s sales, acquisition and consulting team by providing sound technical advice, aviation research and key insights.

At our core, we think of Guardian Jet as a research company. Therefore, Roy’s ability to provide key technical research is a big win for us.

It also helps that he worked for CAMP Systems International—which is the maintenance tracking software used by nearly all of our clients. During his 7-year tenure at CAMP, Roy’s roles ranged from Field Service Representative to Manager of Field Services to General Manager of Customer Support.

Secondly, Roy will play a critical, client-facing role for Guardian Jet by overseeing the myriad technical aspects of aircraft transactions for the firm’s clients. That means he’ll be onsite during inspections, and help our clients understand how the maintenance pedigree of an airplane affects its value.

“Roy will touch all of the things that pilots care about (from the airframe to avionics) as well the things in back that passengers care about (Wi-Fi connectivity and entertainment systems),” said Mike Dwyer, our Managing Partner.

Everyone here in Guilford—as well as our remote staff—is grateful to have Roy’s 35+ years of aviation industry experience on our team.

His aircraft maintenance is broad and far-reaching—from Part 121 (commercial aviation) and Part 135 (charter), to Part 91 (general aviation) and Part 145 (maintenance repair) environments.

Plus, he’s a recognized authority in aircraft maintenance, inspection, quality assurance and quality control.

“It’s amazing how many people know and respect Roy as I travel around the globe,” said Don Dwyer, Managing Partner.

Far and away, what impresses us most about Roy—beyond his technical capabilities and industry reputation—is his demeanor.

“He relates extremely well to people, and when there are conflicts (which there always are), Roy will resolve them by understanding the issues,” Mike Dwyer said. “I know he’ll always put our clients’ needs first and do so in a very pleasant, confident, professional fashion.”

Roy began his career as an aircraft mechanic at American Airlines, where he spent 19 years in aviation maintenance roles. He has also worked for FlightWorks, Jet Logistics and Flight Options.

He graduated from Embry-Riddle Aeronautical University and holds an Airframe and Powerplant (A&P) certificate issued by the Federal Aviation Administration.

Please welcome Roy to the team!

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JET FOR SALE: 2013 Gulfstream G650, SN 6044

Companies or private individuals looking for a superb aircraft to begin their fleet (or add to an existing one) are in luck.

Offered by Guardian Jet, this one-owner 2013 Gulfstream G650 is a turnkey business aircraft. It’s been wonderfully maintained and has exceptionally low time.

With so many outstanding attributes and features, it’s impossible to list them all. For anin-depth look, check out the full aircraft specifications for serial number 6044.

Take a Look Inside

Inside, the spacious, “open floor plan,” 14-passenger executive interior features a forward 4-Place Club and a 4-Place conference table.

14-passenger executive interior features a forward 4-Place Club and a 4-Place conference table

There’s also a credenza in the mid-cabin, and a double divan in the aft cabin.

The aircraft is equipped with forward and aft lavatories and a forward galley, as well as a forward crew rest.

Forward galley - Gulfstream for sale G650

The cabin also boasts dozens of upgrades that were added through the Gulfstream Cabin Enhancement Program, including improvements to cabin seats; an aft lavatory door; door latches; a microwave, refrigerator and wine chiller; and window shades.

Espresso machine and microwave - G650

As of mid-January of this year, this business jet’s total flight time was just 718 hours, with 353 landings.

Powered by a pristine pair of Rolls Royce engines (BR-725A1-12), the jet is maintained on Corporate Care for the engines and MSP for the APU.

G650 - jet engine

Notable Features

Among this Gulfstream’s long list of notable features, it offers:

  • Swift broadband with wireless LAN.
  • BOW 54, 178 lbs., which allows full fuel and 8 pax.
  • Autobrakes (ASC 055) for reduced landing distances.
  • An optional reduced MTOW of 90,000 lbs.

2013 Gulfstream G650 - avionics in cockpit

Warranties

The 2013 Gulfstream G650 offers a host of fully transferable new aircraft warranties, including:

  • Standard Warranty
  • Airframe 20 years/20,000 hours (labor included).
  • Structural Airframe 20 years/20,000 hours (labor included).
  • Production Non-structural 5 years (labor included).
  • Standard Avionics – 5 years (labor included).
  • Optional Avionics – 2 years (labor included).
  • Engines – 6 years/3,500 hours.
  • APU – 5 years (labor included).
  • Paint – 2 years (labor included).
  • Interior Completion – 2 years (labor included).

 

Maintenance

As to its maintenance status, following are a few of the highlights:

  • In the next 12 months, the jet is scheduled for minor inspections, operational checks and lubes.
  • There is no damage history for the aircraft.
  • Engines are on hard time/calendar, with an overhaul due at 10,000 hrs. or in 2032.

 G650 - Forward VIP Seat with VIP control panels

Entertainment System

This beautifully appointed aircraft also boasts a state-of-the-art entertainment system with such features as:

  • Gulfstream Cabin View System with iPad App control.
  • High-Definition Monitor array includes 26” HD LCD monitors at the forward and aft bulkheads and mid-cabin credenza.
  • 12” HD LCD monitors at the forward cabin single seats and a 17” HD LCD monitor in the forward crew rest area.
  • External media Inputs – Two HDMI inputs allowing operator supplied media devices to be connected to the cabin entertainment system.

G650 entertainment system with ipad control

And its communications/information systems include:

  • Swift BB High-Speed Data with Wireless LAN CNX-200 Router
  • Honeywell MCS-7120 INMARSAT Satellite Communication System (supports up to 6 channels)
  • Iridium Aircell Axxess II Satellite Flight Phone System (supports 2 channels of voice or data)
  • Cabin Wi-Fi
  • Cockpit printer

 

To schedule a private showing, please call Guardian Jet at +1-203-453-0800 or email us.

You may also view a complete list of specifications for the 2013 Gulfstream G650 serial number 6044.

 

 

 

 

 

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CJI17 London: The State of the Aircraft Brokerage Business

Guardian Jet was a proud sponsor of the Corporate Jet Investor London conference, which was held this past January 30-31.

It happened to be the second year second that I (Don Dwyer) spoke before a sizeable audience of our aviation peers.

Alasdair Whyte, the editor and organizer of Corporate Jet Investor content and events, asked me to talk about the evolution of the high end aircraft brokerage business, and where I think it’s headed.

For those of you who’d like to watch my CJI17 address, it’s embedded below.

 

Here’s a brief recap

To recap what I shared with our peers that morning, I first posed the question, which was asked by Alastair: “Do we have an image problem in the brokerage business?”

Then I offered some evidence to support my strong belief that, no, I don’t think our image is suffering.

That’s because the high-end aircraft brokerage and consulting firms that people entrust their money to see us as a valuable partner in the transaction.

What we do suffer from, however, is what I refer to as a “fragmentation problem.”

In light of the numbers of different aircraft models and the corresponding number of transactions and brokerage companies, I pointed out that it’s impossible not to be somewhat fragmented.

I shared how I think of this industry—this brokerage business—as a very sophisticated “cottage industry.” We have a lot of small players that are impacting the customer experience.

And, because our business occupies a highly unregulated space, it creates a lack of transactional consistency from region to region.

And this leads to a significantly varying degree of competency.

Another issue I raised is how a plethora of regulatory issues are affecting the brokers’ ability to effect competent transactions, and how ballooning financial issues are also affecting those sales.

And then I got into another issue: the ethics that guide our business, along with the ethics underlying broker/customer “exclusivity” and “non-exclusivity.” I shared how the latter can open the door to problems with “bad actors” in our brokerage industry.

Along with all these challenges, however, I reported the good news that I think the aircraft brokerage industry is evolving and maturing. And, as it does, the marketplace is demanding more because brokers are delivering more.

So where are we headed?

In my opinion, we’re headed toward greater transparency, and a more educated customer base.

Corporations and high net worth individuals are more educated because the brokers are making a greater effort to communicate with their clients in a more honest, straightforward manner.

The last item on my list of topics was innovation.

At our company, Guardian Jet, I know that we focus on building our business by being smart about capital, and we’re fine-tuning our consulting business before we build the brokerage.

So it’s great for our customers and, by the same token, it’s great for us.

I finished my talk by encouraging everyone in the audience to make sure that they pick a great broker to work with, one with the right level of expertise and savvy to bring their transaction to a happy conclusion.

And I encourage you to watch the video to hear a much more expanded discussion of these critically important topics in our industry.

 

Below are some additional images from the 2017 Corporate Jet Investors London event:

   

You can watch the entire talk on Guardian Jet’s YouTube channel.

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Aircraft Life Cycle Cost Using a Buy, Fly, Sell Methodology

From a financial standpoint, to effectively manage your fleet of aircraft, life cycle cost is the most basic projection of your fleet’s future operating costs.

In the informative video below, Mike Dwyer, Managing Partner of Guardian Jet, discusses the importance of life cycle cost to your aviation organization’s bottom line.

Mike explains how, when you develop models to compare the cost of different aircraft, different ownership options and different utilization levels, life cycle cost is, in fact, the bottom line, the final aircraft finance number that provides what it will cost.

This video also offers details of the variety of inputs and projections that are used to calculate life cycle cost and how it can help you make critical decisions.

 

Watch on YouTube or read the full transcript below:

 

Hi! I’m Mike Dwyer.

Thanks for coming to the Guardian Jet Learning Center to talk Aircraft Finance 101, or life cycle costs.

We look at life cycle cost analysis as kind of the foundation of a lot of the financial work that we do, and there’s a couple reasons for that.

First of all, life cycle cost has tremendous analytical merit all on its own to help you understand the impact of what you’re operating or what you’re considering operating in the future.

Second, life cycle cost is a great foundation for all the more complex financial models that you use to consider capital expenditures.

In a fleet plan—whether you have one airplane, five airplanes or 10 airplanes—life cycle cost is a wonderful piece of the puzzle.

Net present value, when you consider cost of capital, the time value of money…

Replacement timing is often looked at through the life cycle cost lens: do I operate an airplane five, 10 or 15 years? Do I make the replacement today, next year, or in two years or three years?

So, life cycle costs gives you a great look at that, and also, ultimately, it is an interval part of asset management, where you look at your airplane like any other assets in the portfolio.

There are lots of reasons to try and understand life cycle cost, so let’s get started and talk about exactly what we mean.

 

Life Cycle Cost Analysis

In life cycle cost analysis, we’re looking at a financial projection, so it’s usually looking between five and 10 years into the future.

The three components of life cycle costs are the purchase price, the operating costs over the term, and the disposal or residual terminal value at the back end.

Since we’re talking about airplanes I like to call it: “buy, fly, sell.”

Simply put, we build a model where we enter the purchase price of the aircraft. Then we look at what it cost to operate the aircraft over the term, and then we have a terminal value at the end. We sum those numbers into the net cumulative number down in the bottom right-hand corner.Life Cycle Costs Buy Fly Sell

Of the three inputs, two of them are pretty straightforward: the purchase price and the operating costs.

First of all, we can investigate or negotiate purchase price, second of all the operating costs—which are very well published in our industry—and you might have your own direct experience with the operating the aircraft.

The two inputs, “buy” and “fly,” are straightforward. I’d make sure that you get some expert advice on the residual value; it’s the toughest to call because it’s out in the future, and it does vary from model to model.

It’s a learning center discussion topic on its own, so you might want to get some help in the third part of the life cycle cost analysis.

In round numbers, in the actual projection or cash flow or spreadsheet, there’s about a hundred inputs that go into a typical life cycle cost.

It makes great sense to build consensus at the beginning of the process between the people that will interpret the results of the life cycle cost analysis and the people building it.

If everybody gets on the same page early, it makes for a much more efficient process and, of course, a much more effective product at the end.

Examples of those inputs would be the term:

  • How far out do we want to look — 5 years, 10 years, etc.?
  • Do we want to do a cash flow (which is more typical in life cycle cost) or do we want to do it from a profit-and-loss perspective (as in the more traditional financial reporting statements)?
  • Is the model a pre-tax model or is it an after-tax? If it’s an after tax, what’s the tax rate that will we will apply to all the deductible expenses, such as operating costs and appreciation interest if that’s involved?

Once we’ve settled on the inputs, then we say: “Is this going to be a comparative analysis?”

We like to look at the baseline life cycle costs projection as your status quo . . . what if we just kept doing what we’re doing today for 5-10 years to determine the analysis?

Then we can start comparing that to different options of replacing in this interval, looking at different replacement options for what we currently operate, etc. But that’s what we mean about the comparative nature of a life cycle cost.

Now let’s look at an example of a cash flow so we can get an idea of what one looks like.

First of all, there are several pages of inputs, but I’m going to skip past that right now and just get to what the output looks like.

They’re essentially two pages that build on each other. The first page has the operating costs in it, and in my “buy, fly, sell” metaphor this is the fly part. It’s also what I call “If I hand you an airplane, this is what it costs me to operate one.”

So we started out pretty simple, variable costs on top, fixed costs come after that, or you can do it vice versa.

variable expenses per hour

Then we like to have interval costs associated with it, and an interval cost would be when we have a significant expense that occurs at some point during the term of the projection—like an overhaul on an engine or painting an interior refurbishment—a significant maintenance event that would affect the results of the life cycle costs.

interval expenses -life cycle cost aircraft

That’s page one, and that really deals with what it cost to operate the aircraft.

Page two brings in the “buy” and the “sell” phase, and adds that into the operating expenses. We look at what we buy the aircraft for, so we’re introducing capital, and then introduce the tax impact of the deductible expenses here on this page.

acqusition capital costs for private aircraft - life cycle costs

The second page introduces the operating expenses and the capital cost, so we’ve got buying it, (and, by the way, if you’re financing or leasing, that would be representative in page 2), and then you have the operating costs you added from page one.

And then, at the end, you have the residual or terminal value back into the cash flow, so you have a representation of what the value of what the asset was at the end of the period.

That nets down to that bottom right-hand corner, life cycle costs cumulative number.

net life cycle cost for private aircraft

That is the “buy, fly, sell” life cycle costs in a nutshell.

If you’d like to discuss your personal or particular circumstances in more detail, please give us a call.

We’d love to talk about it. And thank you for listening today on life cycle costs.

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Guardian Jet Welcomes Sasha Khounani

Sasha Khounani Guardian Jet LLC Marketing SpecialistGUILFORD, Conn. – April 5, 2017 – Aviation professional Sasha Khounani was recently named Marketing Specialist for Guardian Jet (guardianjet.com), the Guilford, Connecticut-based business aviation consulting and brokerage firm.

In his new position, Sasha will lead many of Guardian Jet’s efforts to identify new business opportunities and build relationships with business aviation clients and aircraft brokers. Additionally, he will lead the company’s market research function, support all major business jet transactions and maintain specifications on all aircraft for sale or lease.

Don Dwyer, Managing Partner of Guardian Jet, LLC, expressed enthusiasm for Khounani’s appointment and his potential role with the company.

“Sasha is a consummate aviation professional, someone who lives and breathes this industry and everything that it stands for,” Dwyer said. “He’s going to make a major contribution in our efforts to build an ever greater business at Guardian Jet.”

Prior to joining Guardian Jet, Khounani spent several years in international finance and sales and marketing for The Boeing Company. Beginning as an intern at Boeing before being accepted in the company’s prestigious “fast-track” program for promising young executives, Khounani soon gained significant experience appraising, estimating and pricing, and marketing commercial aircraft and military weapons systems. He also handled contract negotiations for many of Boeing’s international sales programs.

From his late teens onward, Khounani spent many years working in his family’s luxury automobile sales business, where he marketed such high-end brands as Porsche, Ferrari, Lamborghini, Maserati, Bentley, Rolls Royce, Audi, Mercedes and BMW.

Khounani earned a Bachelor of Science degree in Aviation Business Administration from Embry-Riddle Aeronautical University in Prescott, Arizona. He is a private pilot, with experience flying a variety of small aircraft, as well as Citation jets.

“The two things that get me excited about marketing and selling business jets are the products and the clients,” Khounani says about his new position. “In a niche industry like business aviation, our clients are highly successful individuals and corporations, and I happen to enjoy learning from their unique experiences.”

About Guardian Jet

Founded 15 years ago, Guardian Jet, LLC, offers business aviation brokerage, consulting and oversight services for thousands of clients worldwide. The company distinguishes itself with its focus on integrity and industry expertise, and by consistently providing business value to clients. Guardian Jet’s core mission has always been to earn the right to buy and sell aircraft on behalf of its clientele by providing great consulting advice, market intelligence and flawless execution. For more information, visit guardianjet.com.

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