Guardian Jet’s Doc Dwyer answers the question, “What is Asset Management and Fleet Planning?”
At Guardian Jet, we think of asset management as ongoing fleet planning.
So, what’s a fleet plan?
A fleet plan can be anything from a high-net-worth individual who’s looking at charter, fractional or maybe a wholly owning aircraft—all the way through a large corporate operator trying to figure out what next iteration of airplane looks like.
Fleet Planning in Three Lenses
Every fleet plan we look at through three lenses: Operational, Financial and Strategic.
- Operational lens:
The first lens looks at your historical travel data — your corporate fleet and how you’ve been using it. We also look at charter, fractional and airline data. We’re going to look at it in some ways that you look at it already, but we’re going to look at it in some of our own ways that we’ve found very helpful over the years. We’re using all of this information to really define the mission and utilization of your fleet.
- Financial lens:
The second lens tries to project the cost of those different fleet options over the next 5 to 10 years. Typically, at Guardian Jet, we use 10-year cash flows. But what we really want to do is use your financial parameters to model the future costs of the aircraft.
The third lens is typically done through executive interviews. These interviews are future-looking, trying to figure out what this flight department is going to look like 5 to 7 years down the road. The operational and financial piece gives us the historical information to project, but the corporate lens, they really have an idea of what they want the flight department to look like in 5 to 7 years, and we want to be sure we’re accounting for that in our fleet plan.
Fleet Plan Reviews and Renewal
At the top, I told you that asset management is really ongoing fleet management. So, when is it that we renew or review a fleet plan?
There’s two types of review: a calendar or an opportunistic type of review.
The first review, calendar review, is fairly simple. We’re going to want to look every quarter to get an idea of where we’re at, and at least once a year, we’re going to really dig in and review that fleet.
An opportunistic is driven internally—with either a corporate leadership change, a merger—anything that’s really going to change the mission of your fleet.
Or, externally, a demonstrator or a white tail that really becomes available that really can save you significantly save you over the next few years. Or, perhaps a pre-owned trade opportunity in an aircraft we know you’re looking for.
Each of these reviews can result in one of four things.
- Completely change the plan. Maybe the merger has changed your mission so we need to change the plan to accommodate that.
- Accelerate the plan—to pull the plan forward and act more quickly.
- Stay the same—status quo. What we’ve planned for still looks good.
- Decelerate the plan—or to slow it down/drag it out because we think that’s the best for your company going forward.
The reason we’re so passionate about asset management is that we’ve proven that it works.
At Guardian Jet, our customers that have used asset management to trade opportunistically have saved millions of dollars over the life of their aircraft.
To learn more about, please feel free to contact us. We love talking about it and we’d love to hear from you.