The Importance of an Aircraft Market Analysis: G550 Review

In this 4-minute video, Doc Dwyer explains why an aircraft market analysis is important when buying or selling your airplane.

In particular, he gives you an in-depth look at the Gulfstream G550 market, and shares why you track and analyze all the details in a market to truly understand what’s going on.

Watch the video:

Doc’s Edited Transcript:

Today we’re going to talk about the Gulfstream G550 market.

I’m going to start with three statistics that just give you a sense of what’s going on in the market.

There are 30 aircraft for sale (or 5.2 percent of the market), and that 5.2 percent makes me start to think this is a little bit of a seller’s market.

Ten percent of a market is fairly standard.

There were 12 sales in the past six months (or about two sales per month), so we’re seeing some good activity two sales per month and 30 aircraft for sale leads us to 15 months to sell the current inventory.

This is a really important statistic that we like to track at Guardian Jet.

A 12- to- 18-month cycle is a very healthy market with good turnover. Less than 12 months and the market’s on fire; above 18 months, and we start to see a slowdown and prices really falling.


G550 Market Trends

The next thing I like to look at is some trending.

We track everything over eight quarters here at Guardian Jet. These two graphs jumped off the page to me. The first is the number of aircraft for sale.

As you see, the general trend over the past eight months is definitely down although we’ve seen an uptick in the first quarter of 2018, and another uptick in the second quarter of 2018.

For aircraft sold by model year, the second quarter of 2017, we sold 13 G550s. In the first quarter of 2018, we sold four. In the second quarter of 2018, we’ve sold three so far.

So you can see that the supply is starting to pick up; demand is definitely decreasing.

So what does that mean?

Let’s go back to our basic economics increasing supply decreasing demand will probably see some softening and pricing.

But if you look at the first two slides that we’ve showed you here today they disagree with each other so let’s go into more detail and see what’s really going on in the market.


What’s selling in the G550 market?

  • 9 of 12 sales are U.S.-based aircraft
  • 14 of the 30 aircraft for sale are based in the U.S.

We’re seeing a heavy favoritism toward the U.S.-based aircraft.

The number one single option to have right now in the G550 is a forward galley. Eleven out of the 12 aircraft that have sold have a forward galley while only 17 out of the 30 on the market have a forward galley.

So really those forward galley airplanes are the only one that’s moving. Aft-galley airplanes are moving solely based on price.

If you look, you’ll see that the trend on forward galley aircraft has increased over time. From 2003 to 2010, if we look at the aircraft that are currently for sale, 5 out of the 14 aircraft have a forward galley.

From 2011 to 2017, 12 of the 16 have a forward galley. As you can see, the market has really shifted in that time span to being forward galley-driven.


Why is all this important?

It’s really important when we bring your aircraft to the market to understand what the market wants, so that we can price your aircraft correctly.

If you have an international aft galley aircraft right now, we know we need to sell it on price. But if you have a U.S. forward galley airplane, we know we can be a little firmer on price and terms when it comes to the letter of intent (LOI) in agreement because we’ll have a desired airplane.

We track a number of other details in every market so that we really can have an understanding of what’s going on.

Thank you very much. If you have any interest in the G550 market—or any aircraft that you own currently or are looking at—please don’t hesitate to call us at 1-203-453-0800. We’d love you to walk you through those markets as well.


Posted in Aircraft Valuation, Asset Management, Aviation Industry, Fleet Planning, Guardian Jet, Gulfstream, Ownership | Tagged , , , , , , | Leave a comment

Visit Guardian Jet at EBACE 2018 in Geneva

Mike Dwyer of Guardian Jet invites you to come see our team at the European Business Aviation Convention & Exhibition (EBACE) on 29-31 May in Geneva Switzerland.

We’ll be showcasing the Vault 2.0, our online asset management and brokerage tool at booth Y125.

Watch this brief video:


Edited transcript:

Hi, I’m Mike Dwyer from Guardian Jet.

We’d like to invite you to visit us at EBACE where we will be demonstrating at the Palexpo in booth Y125.

We will be showcasing the Vault 2.0, which is our online portal to your relationship with your aircraft as an asset in a portfolio.

So please come by Palexpo and see us. Just give us a call at +1-203-453-0800, and we’ll set up an appointment.

About Vault 2.0

Very quickly, the Vault 2.0 is an online, 24/7 tool, that looks at every aspect of managing your airplane—from valuation fleet planning and asset management to finding the right airplane, executing a purchase and executing a sale.

There’s also benchmarking if you want to look at how you compare to your peers. We’d love to give you a deeper dive.

One of our motives for creating the Vault 2.0—besides improving our asset management product, fleet planning business with our very robust consulting in the U.S.—is international expansion.

So, whether you’re in Europe, Asia, Africa—anywhere on the planet—we have given you a portal to your airplane. See how it looks in the markets it lives in—and all of those replacement candidates that you might be considering.

So please get in touch with us; we’d love to show you the Vault 2.0 in Geneva this May.

Thank you!


Posted in Aviation Industry, Guardian Jet, NBAA, News, Vault 2.0 | Tagged , , , , , , , | Leave a comment

As Seen in Business Aviation Magazine: Advising America’s Elite

Don Dwyer, managing partner of Guardian Jet, talks to Anthony Harrington about building a leading position as advisor, broker and consultant to Fortune 500 companies on all things related to private jets.


Anthony Harrington: How did it all begin?

Mike-Dwyer,-Don-Dwyer,-Mike-Mikolay Guardian-JetDon Dwyer: Guardian Jet, one of the big three aircraft brokers, was founded in 2002, some 16 years ago, by my brother, Mike Dwyer, along with Mike Mikolay.

My brother, Mike, and I share managing partner responsibilities and Mikolay is our Executive Vice President, responsible for operations.


AH: Having two brothers as joint managing partners is something of a unique set up for this industry. How do you two manage to keep the peace between you and avoid sibling rows?

DD: (Laughs) In the beginning of our careers, out of necessity because we had a tiny budget, we made do with a very small office with our desks butting up against each

Now we have a very nice, architect-designed office. We still have our desks in the same room, not because we have to, but because it’s still the best way for us both to stay in touch with everything that is happening and what the other one is doing.

He’s better at some things than I am, so we each play to our strengths and we get along splendidly!


AH: So, how did the business fare in the early days?

DD: We took a very different approach to most start-ups. A lot of small businesses start regionally and slowly extend their customer base to other states.

We, on the other hand, started off as a customer-centric business. And, right from the outset, we said we wanted to serve the needs of the most sophisticated and demanding customer base in the world, namely the directors and senior executives of Fortune 500 companies.

We told ourselves that we wanted to earn the right to advise and to represent these companies across a range of transactions. We are a consultancy, first and foremost, and Fortune 500 companies have embraced our approach.


AH: How would you characterise the work of a great consultancy when it comes to buying and selling jets?

DD: If you’re behaving in your customer’s best interests, you should find that as often as you are saying, “Now is a great time for you to buy,” you should also find yourself saying, almost as many times, “Let’s slow down and hold on to the aircraft that we currently have!”

This last bit of advice is not going to make you money, but it’s going to build your reputation for independence and for putting the client’s interests first—and that is what we’re focused on.

And ultimately, of course, the quality of your reputation is what brings in new clients and retains the client base.

We’ve had customers we’ve given that advice to turn around and say, “Hey, aren’t you a broker? Aren’t you supposed to be selling us the jet?” And the answer is, “Not if it’s not in your best interests right now!”


AH: You are strong in the Fortune 500 segment of the market, what about the high net worth side?

DD: If you look at the number of deals we’ve done over time, we have a very high concentration of Fortune 500 clients represented in those deals.

But we love the HNWI business and we’re growing a sales force specifically to focus on individuals who have the means to own private jets.

There tends to be a different feel to the two kinds of transactions. Fortune 500 companies want a defensible plan when they allocate capital to buy a jet. They want to be able to
show its value to the business.

With a high-net-worth person, you’re really looking to see that they’ll be comfortable with the purchase and the ongoing costs.

It is important to make the point that we are not an operational consultancy. We don’t set out to tell clients how to fly more safely or more economically. Our consultancy is all about the capital that you’re going to invest in your aircraft.

We analyse all the scenarios that apply to a possible purchase, including what it would cost to charter for the equivalent number of flight hours a year.

We show them what it will cost to operate that particular aircraft and what the residual value is likely to be, and we will help them by providing all the facts around the decision.

But we don’t try to talk the client into buying the aircraft. That is their decision and we only put it to them when we are comfortable with it.


AH: Are you seeing any real change in the market today versus a few years ago?

DD: Right now, we’re seeing a host of first time buyers. It seems to me that at long last we are seeing a real charge from the fractional jet side of the market.

We’ve been waiting forever, it seems, for the first wave of buyers to come out of the fractional market and  acquire their own aircraft. It is really starting to happen at last.


AH: What about the financing side of the business? Is there the cash available from the market to support the acquisition of new and pre-owned jets?

DD: We can always find a finance company for a qualified buyer. However, we live in the world of qualified buyers. Trying to get financing for unqualified buyers is very difficult and you should probably not be doing that.

For a high-end broker, such as ourselves, there are more than enough customers that fall into the “qualified” category and who really are in the market to buy a jet.


AH: What about residuals? Th is can be a very elusive number to try to pin down, can it not?

DD: We have as much data on residual values as anyone on the planet. However, the bottom line for any owner is that a jet is a depreciating asset, with some models depreciating faster than others.

A Phenom 300, for example, holds its value very well. Today it has the same year on year residual value as pretty much all models used to have pre-2007. You also know that the Gulfstream G650 is going to hold its value better than most.


AH: I take it you are buying and selling both new and pre-owned?

DD: We buy an awful lot of new aircraft because of the nature of our client base. But we always look at the relative values and merits of new and pre-owned.

With our Fortune 500 clients, what we do is to try to help them to get some logical cadence into their buying. If they hold on to a jet for too long, for example, the delta between what their aircraft is worth and the new price will be huge.

If you buy more regularly, that delta becomes much more manageable. |BAM


To view the original Spring 2018 article online, visit Bizav Media Ltd’s flipbook.


Posted in Guardian Jet, News | Tagged , , , | Leave a comment

Helicopter For Sale: Agusta AW139 (S/N 41246)

Guardian Jet is pleased to represent for sale an exceptional, pre-owned 2010 Agusta AW139 Helicopter.

The offer is especially notable considering the tremendous value available in the pre-owned Agusta AW139 market. And, what’s more, with an expected selling price of well under $6 million, this 2010 Agusta AW139, S/N 41246 represents a rare bargain.

Currently based in Trenton and available immediately for sale, this aircraft has been owned by a Fortune 100 company since it was purchased (brand-new). The owner is widely known as one of the most experienced rotor-wing operations in the country.


exterior Agusta AW139 helicopter 41246


The AW139 is enrolled on Agusta’s Essential Power Train Program, its engines are on ESP Gold, and its avionics are enrolled on Honeywell HAPP. All of these programs offer prospective buyers operational peace of mind.

As of January 8, 2018, the aircraft’s total time was recorded at 2,275 hours, with 4,398 landings. It has no known damage history.

It’s extremely well-equipped with ZingHUMS, EGPWS, TCAS and is ADS-B Out-compliant.

We encourage any interested party to set a time to view the aircraft personally, as you will be thoroughly impressed by it, and the owner’s operational excellence.


interior seats Agusta AW139 helicopter 41246


With original Interior by Air Concepts International, following are some highlights about the S/N 41246’s interior:

  • Deluxe VIP Executive 6-passenger interior features two forward facing captain’s chairs and a four-place bench seat
  • Seats are covered in Townsend leather
  • A deluxe refreshment/storage center is located between the captain’s chairs featuring mahogany wood and veneer cabinets


And some of the cabin features include:

  • Cocoon Generation II Noise Reduction Wall Panel System
  • Coffee and hot water decanters
  • Custom executive VIP cabin interior
  • Cockpit / cabin divider bulkhead with manual sliding windows
  • Four-place rear-facing leather VIP executive seats with integrated head rests
  • Two forward-facing single leather VIP executive seats with integrated head rests
  • Cabin refreshment credenza with ice drawer, storage and waste container
  • Custom cabin carpet
  • Magazine racks on cabin doors
  • Two 110V AC outlets in cabin
  • One 110V AC outlet in cockpit
  • Dual 15″ LCD monitors


interior seats facing forward Agusta AW139 helicopter 41246


  • True North SatPhone
  • Sky Connect Tracking System
  • PBS-250 Digital Passenger Briefing System
  • Flight Displays Systems Moving Map
  • Dual 15” LCD Monitors



The helicopter’s avionics feature the following, among other highlights:

  • Honeywell Primus Epic 4-Tube 8×10” Primus II System
  • ADF: Honeywell DF-855 Module
  • AIR DATA: Dual Honeywell AZ-200 Air Data Modules
  • AUTO PILOT: Honeywell Primus EPIC 4-Axis
  • COCKPIT VOICE / FLIGHT DATA RECORDER: Curtis Wright Multi-Purpose Flight Recorder
  • COMMUNICATION RADIOS: Dual Honeywell TR-865A Transceiver
  • FLIGHT DIRECTOR: Honeywell Primus EPIC 4-Tube 8×10” LCD
  • FLIGHT MANAGEMENT SYSTEM: Honeywell Primus Epic System / FMS
  • NAVIGATION RADIOS: Dual Honeywell NV-875A VOR/LOC/GS Transceivers
  • RADAR: PrimusWC-660WeatherRadar
  • RADIO ALTIMETER: Dual RT-300 Radio Altimeters
  • TRANSPONDER: Dual Diversity XS-856A Mode S Transponders


 rotorwing maintenance Agusta AW139 helicopter 41246


Following are just a few highlights of its maintenance and inspections:

  • Engines enrolled on ESP
  • Airworthiness Date: July 23, 2010
  • Aircraft enrolled in Agusta “Essential” program covering powertrain, rotors, flight controls and landing gear
  • Honeywell HAPP Avionics Program
  • Maintenance tracking by FlightDocs



Following is a list of additional equipment and features for this remarkable AW139:

  • Desirable Long Nose Design
  • Dual Sliding Doors
  • Emergency Flotation System with Aero Sekur Rigid Covers
  • 6800 KG Weight Optional Kit
  • Aux Fuel Tank
  • Super Silent Transmission
  • Air Filtration System’s Inlet Barrier Filters
  • 44 + 27 Amp/Hour Batteries
  • Heated Glass Windshields / Windshield Wiper System
  • Manual Rotor Brake System
  • Hinged Windows for Crew Doors
  • Medco door locks
  • Dual retractable steps
  • iPad Mounts and Charger
  • Dual External Cameras
  • Locking Fuel Caps
  • Dual Cabin Windows
  • Nose Landing Gear Doors
  • Quick Access Recorder
  • CMC’s CMA 1410 (5th tube)
  • EEMU for 5th tube (429, 232 and video interface)
  • Mid Continent Video Switcher
  • Heads Up Technologies PBS 250 Passenger Briefing System
  • Heads Up Technologies CMS 400 Checklist Management System
  • DART Aerospace USA cargo floor protector kit
  • Eight USB Outlets and five 110V Outlets
  • Mast Vibration Absorber
  • Active Vibration Control Systems
  • Hydraulic Pulse Dampers
  • Precise Flight Pulse Lite System
  • Steerable Landing Light Under the Belly
  • Dual Fixed Landing Lights
  • Devore Forward-Facing Recognition Lights, Tail Flood & Main Rotor Illumination
  • Upper / Lower Anti-Collision Lights



Don’t hesitate to take advantage of this opportunity to own this beautifully maintained Agusta AW139 aircraft.

For more information about serial number 41246, please contact us at 1-203-453-0800, email us, and/or download the aircraft specifications brochure.



Posted in Aircraft For Sale | Tagged , , , , | Leave a comment

Video Demonstration: Vault 2.0 Online Asset Management Tool

Our Managing Partner, Mike Dwyer, gives you an insider’s look at Guardian Jet’s Vault 2.0. In this short 2-minute demo, he explains how the brokerage and consulting data we provide helps aircraft owners save millions over the life of their asset.

Watch the video or read the transcript.

Mike Dwyer’s Vault 2.0 video transcript:

We announced the Vault 2.0 at NBAA 2017 in Las Vegas, and we’re very pleased to report that, at the end of the first quarter 2018, the newer Vault—that’s more intuitive, with more information has been a tremendous success.

We almost have about 300 users of the Vault. And, we’re getting about 10 hits a day from our clients a day as they interact with Guardian Jet, and their relationship with their aircraft as an asset in a portfolio.

That Asset Management is where we say that, over the life of the asset, we can save you millions of dollars.

What I also want to do is show you in this update, is show you a couple of examples. Some of it is live so we can show you what’s happening.

Right now, we’re in the sales “bucket.” We’re showing you an airplane and what it’s worth. There’s a valuation.

I’m going to touch on Fleet Planning and go into Customer Reports.

This is an actual customer.

In February 2016, we initiated a Fleet Plan. It was about the disposition of a G550. We kept in touch all through 2016 and renewed and reviewed in 2017. And we’re in constant touch today. That’s what we call Asset Management.

A Fleet Plan is a Fleet Plan, and that’s great. Renewing and reviewing is what we call Asset Management.

This is a nice archive in place for all of that to occur.

So that was the Fleet Planning/consulting side of the house—and we like to start there. We like to say that consulting earns us the right to execute your trade.

On the trading side, I’m going to show you an example under Sales. In the Client Update, we show all of the prospects in your Vault that have called in, that are interested in potentially buying it.

We not only show you when they called in, but we chronicle our follow-up with that person.

So, this call came in at 11 o’clock this morning and within 15 minutes of the call being over, it was in our client’s vault. And if they looked, they’d see it as it happened.

Those are just a couple of examples of sort of the real-time nature of the Vault, and how we can help you manage the assets in your fleet or with your single airplane.

Please give us a call. Meghan Carlson runs our program here at Guardian Jet. We’d be happy to set up a demonstration—whether it’s live in your offices, or online.

We’ll be at EBACE May 29-31, and we’re very excited about it.

Thanks for taking the time to listen.

Posted in Asset Management, Business Aviation, Guardian Jet, Guardian Jet Learning Center, News, Vault 2.0 | Tagged , , , , | Leave a comment

Best Way to Buy an Aircraft: Cash vs Lease vs Financing

Should you pay cash or lease or finance your next aircraft? It’s a great question and one that we often answer for our clients here at Guardian Jet.

Below we’ll compare the different options for aircraft financing in an effort to help you understand its impact on your fleet plan.

But first, let’s see what the industry is doing, domestically here in the U.S., and abroad.


Survey Says . . .

Cash is king.

At least when it comes to buying a new aircraft in the U.S., according to Michael Chase, principal at Chase & Associates.

In his report, nearly three-quarters (73%) of new aircraft owners purchase their planes outright. And this is a statistic that’s remained largely constant since 2006.

But, internationally, things are different when it comes to aircraft finance.

When JETNET iQ’s Quarterly report surveyed 500 aircraft operators globally, only about 45% shared that that they prefer cash—or cash followed by financing—as their preference.

Where international buyers are concerned, financing is more popular.

Yet leasing is gaining considerable traction, thanks to record demand and strong liquidity. It’s an aircraft financing option that creates more efficient risk management of aircraft residual values.

In Boeing’s 2018 Current Aircraft Finance Market Outlook, aircraft leasing continues to grow in absolute size while maintaining a 40% global market share.


So, what is your best option when it comes to aircraft finance?

How do you factor in aircraft residual values? And should you let someone else take on the risk while you use your cash to fund other projects or assets?


Pros and Cons: Cash vs Lease vs Financing

Let’s get down to it and discuss the pros and cons of the different purchasing vehicles. Then we’ll go into an actual example of buying or leasing a $10M airplane.

In an aircraft lease, the pros are as follows:

  • You preserve your capital outlay.
    You don’t put anything up front, you just start making payments.
  • You have fixed monthly payments.
    You know your budget for the term of the lease agreement or your ownership period of the airplane.
  • You have no residual value risk.
    The residual value risk is born by the lessor.
  • You have some degree of flexibility.
    This is because you can write into the lease deal an EBO (Early Buy Out) or an ETO (Early Termination Option). This can be favorable to you if the market does better than what the leasing company anticipated. You usually don’t impact your P&L in the year of the transaction like you would paying $10M for an airplane.
  • You aren’t impacted negatively in the year of replacement.
  • You might have flexibility. At the time of sale, the bank may allow you to enter into new lease agreement for your next purchase.


The cons of an aircraft lease:

  • Your tax benefits are assumed by the lessor.
    You’re giving the residual value risk to the leasing company, and they’re getting the tax benefits. So the lessor gets the depreciation.
  • You pay more to own your airplane.
    Over the life of the agreement, you’re paying interest and you don’t get the same tax benefits as mentioned above. Also, when you want to sell the aircraft, the optimal timing for buying a replacement may be limited, depending on your lease term and/or exit strategy.
  • You will have usage restrictions.
    You can only fly it so many hours a year or you affect the return conditions on a lease. A lessor usually has requirements for hours flown, insurance, and being on an engine program.


The pros of financing an aircraft:

  • You will save more money.
    When financing through a bank, you’ll save the most money from a net present value cost. Aircraft financing is the less expensive option over the life cycle of your ownership from a net present value perspective.
  • You get significanttax advantages.
    You can accelerate the depreciation of the airplane. (In the example below, we use the current 100% bonus depreciation in year 1, so you’ll reap considerable tax benefits.)
  • You have more flexibility to resell.
    There are no restrictions on how you use the airplane. And you’ll be able to sell the plane more easily, without lease penalties.


The cons of financing an aircraft:

  • Your capital is tied up.
    Let’s say you pay 10% for a $10M jet. That means you’re going to put $1M down, and you can’t use that for other business needs—the way you could if you were leasing the airplane.
  • You assume the residual value risk.
  • Your P&L might be impacted negatively.
    This is because you’re spending $10M in the year of the transaction.


The pros of purchasing an aircraft with cash:

  • You get great tax benefitsfrom owning your own airplane.
  • You will save money over time. Cash is the less expensive option over the life cycle of your ownership from a life cycle cost perspective.
  • You have the most flexibility when you sell.
    If your corporate travel mission changes, you can sell more quickly without lease penalties, and there’s no loan to pay off.
  • You have no transaction costs.
  • You have no restrictions.
    This enables you to use the aircraft as you wish, and choose whether to add an engine program (it’s not required). Excessive wear and tear is not an issue (at least to the lessor).


The cons of purchasing an aircraft with cash:

  • You will have a significant capital expenditure.
  • You assume the residual value risk.
  • Your P&L might be impacted negatively.


Financial Analysis Case Study – After-Tax Cash Flow

In the following case study, we looked at financing options for a nearly new aircraft that’s less than three years old and has fewer than 1,000 hours. The purchase price is $10M, and we outlined both the 10-year life cycle cost and the net present value.

Our assumptions for a 10-year cash flow example:

  • Compared the cost of capital over a 10-year term calculating after-tax
  • Sales tax rate of 8.25%
  • Residual value decrement of 8% per year
  • Federal and State corporate tax rate of 35%
  • Net present value discount rate of 10%
  • 100% business use
  • Lease rate factor of 0.9%
  • Financing interest rate of 4%
  • 100% bonus tax depreciation for after-tax analysis

10-Year Life Cycle Cost and Net Present Value Case Study – $10M Jet Purchase


Ok. Now, let’s get into the specifics. Looking at the chart above, the blue lines represent the life cycle costs of owning the airplane over 10 years.

In the first column, the cash purchase has a very low life cycle cost.

But when you apply the cost of money or the net present value (NPV), it’s very high. In fact, it’s much higher than the life cycle cost because in the beginning of that term, you paid $10M.

Life cycle cost explained:

You buy the airplane and pay for it, including all the operating costs. You get the tax benefits, if any, and then you sell the airplane. Or, in the case of the lease, terminate the lease at the end. And then you look at your total costs.

Net present value explained:

The value of a sum of money in today’s market, in contrast to some future value it will have when it has been invested at compound interest.


In an aircraft lease, you’ll have high life cycle operating costs because you’re paying a lot of money over time to lease this airplane.

But, unlike in the purchase, because you’re paying it over time (and it becomes a discount rate), you actually have a lower NPV than your life cycle costs.

It’s much less expensive to pay with cash than to  lease, but you can see the difference, and remember that there are some advantages to leasing.

In the third column, you’ll see that financing the airplane clearly comes out ahead from a net present value perspective. This is due to the lower capital outlay combined with the ability to reap the benefits of the 100% bonus depreciation.


With all of that said, every aircraft ownership decision is unique to the corporate or high-net-worth individual.

We’re always more than happy to discuss your particular needs. To learn more, visit our financial projections page or give us a call at 1-203-453-0800. We’d love to help you out.



Posted in Aircraft Finance, Aircraft Lease, Aircraft Tax Laws, Aircraft Valuation, Asset Management, Business Aviation, Fleet Planning, Guardian Jet, Guardian Jet Learning Center, Ownership | Tagged , , , , , , , , , , , | Leave a comment

For Sale: 2005 Citation X, Serial No. 750-0249

Guardian Jet is pleased to represent for sale a beautiful 2005 Citation X (Serial Number 750-0249).

Accommodating up to nine passengers, this super-midsized business jet is a great, reliable, coast-to-coast aircraft.

Having been most recently operated by a Fortune 10 corporate flight department, this Citation X is in excellent condition and handles exceptionally well.

The aircraft features many upgrades: e.g., the interior cabinets were refurbished in 2016 and the exterior was repainted in 2013.

With only two corporate owners since new, this aircraft has always been U.S.-based and always hangared.

Available for immediate purchase, the asking price is $4,695 million.



Powered by two Rolls-Royce engines, the Citation X was built by the Cessna Aircraft Company, based in Wichita, Kansas. It’s been widely marketed as the world’s “fastest business jet.”

Historically, the Citation brand of business jets encompasses six distinct “families” of aircraft. Although it’s based on the earlier Citation III, VI and VII models, the Citation X is distinct from its sister models, differing in its wing design, avionics and engines.

In fact, the Citation X’s versatility is one of its most notable features: these jets combine transoceanic capability with the speed and comfort of a wide-body, high-altitude aircraft.

With a published range of 3,216 nautical miles (5,956 km), this Citation X will offer its new owner the freedom of direct flights from, for example, Los Angeles to New York and London to Moscow.


Cessna Citation X - SERIAL NUMBER 750-0249 forward galley



  • The Citation X’s engines are on an active Corporate Care program
  • It offers ATG-4000 High Speed Data and WAAS/LPV

Multiple inspections of the aircraft were completed in January 2018. As mentioned, the jet’s exterior was repainted in August 2013, at Duncan Aviation. Its color scheme is Matterhorn White with CVS red accent stripes.

Cessna Citation X - SERIAL NUMBER 750-0249 interior



The eight-passenger interior has both forward and aft four-place clubs, with folding tables between each club setting.

It features an aft private lavatory with a belted seat for the ninth passenger. Four Rosen swivel monitors can be moved to any of the passenger seat receptacles to screen Airshow or DVD.

Also, it’s equipped with GoGo Biz High-Speed Internet with “Text and Talk” VOIP and AirCell Satellite phone keeps you connected.

The forward galley is well-equipped, featuring a high-temperature oven, a coffee maker, microwave oven, food chiller, ice drawer and ample storage.

It is also equipped with cabin LED Lighting and two electrical outlets, with an additional one in the lavatory.


Cessna Citation X - SERIAL NUMBER 750-0249 engine and maintenance



The following are among the Citation X’s maintenance highlights:

  • Maintained Per MSG-3
  • Operated Per Part 91
  • SB-750-34-59 WAAS/LPV Complied with
  • FMS Software 6.1 Upgrade

Cessna Citation X - SERIAL NUMBER 750-0249 flight deck avionics 


The jet’s avionics feature the following, among other highlights:

  • AIR DATA COMPUTERS: Dual Honeywell AZ-940 ADC
  • AUDIO CONTROL PANELS: Dual Honeywell AV-850A Control Panels
  • AUTOPILOT / FLIGHT DIRECTOR: Honeywell Primus 2000
  • COCKPIT VOICE RECORDER: L3 FA2100 CVR (120 minutes)
  • COMMUNICATIONS: Dual Honeywell TR-833 Com Transceivers (8.33 MHz Spacing)
  • DATA ACQUISITION UNIT: Dual Honeywell DA-800 DAUs
  • DATA LOADER: Honeywell DL-950 Data Base Loader
  • DISTANCE MEASURING EQUIPMENT: Dual Honeywell DM-850 Modules
  • ELECTRONIC FLIGHT INFORMATION SYSTEM: Honeywell Primus 2000 5-Tube w/ Dual EICAS Flight Director Systems with 8×7” DU-870 Electronic Flight Displays
  • FLIGHT DATA RECORDER: Provisions Only
  • FLIGHT MANAGEMENT SYSTEM: Dual Honeywell FMZ-2000 w/ 6.1 Software
  • GLOBAL POSITIONING SYSTEM: Dual Honeywell HG2021GD04 GPS Sensor Units
  • HIGH FREQUENCY: Single Honeywell KRX-1053 High Frequency Radio (Provision for Second HF)
  • INTEGRATED COMM UNITS: Dual Honeywell RCZ-833K
  • LONG-RANGE NAVIGATION: Dual Honeywell HG2001D03 Inertial Reference Units
  • NAVIGATION: Dual Honeywell NV-850 NAV Receivers (w/ FM Immunity)
  • RADAR: Honeywell Primus WU-880 Weather Radar Transceiver
  • RADIO ALTIMETER: Honeywell RT-300 Radio Altimeter
  • RADIO MANAGEMENT UNITS: Dual Honeywell RM-855 RMUs
  • SELCAL: Avtech CSD-714 Selcal Decoder
  • TERRAIN AWARENESS AND WARNING SYSTEM: Honeywell Mark V EGPWS w/ Wind Shear Detection
  • TRAFFIC COLLISION AVOIDANCE SYSTEM: Honeywell (Bendix/King) TCAS II TPU-67A w/ Change 7.0
  • TRANSPONDER: Dual Honeywell XS-852F Enhanced Mode S Transponders

 Cessna Citation X - SERIAL NUMBER 750-0249 communications



  • ATG-4000 High Speed Data
  • VOIP “Text and Talk” Software Upgrade
  • AirCell Axxess Flight Phone System
  • Three Phone Handsets


Cessna Citation X - SERIAL NUMBER 750-0249 communications



  • Airshow 4000
  • Dual DVD Player
  • Four Rosen 8” Swivel Monitors with 8 receptacles
  • Single Forward Bulkhead 10” Monitor




Don’t hesitate to take advantage of this opportunity to own this beautifully maintained Cessna Citation X aircraft.


Cessna Citation X - SERIAL NUMBER 750-0249 exterior day

For more information about serial number 750-0249, please contact us at 1-203-453-0800, email us, and/or download the aircraft specifications brochure.


Posted in Aircraft For Sale | Tagged , | Leave a comment

Now hiring: Director of Maintenance or Aircraft Technical Services Coordinator

Update as of 3/28/18: This position has been filled. Thank you for your interest!


Guardian Jet is seeking a talented aviation maintenance professional to join our growing team. Are you our next Director of Maintenance or Aircraft Technical Service Specialist?

This is a replacement position who will directly support our Vice President, Technical Services as well as the entire sales, acquisition and consulting team.

You’ll provide sound technical advice, research and insights. Plus, your support will include:

  • aircraft build specifications
  • travel to client and maintenance facilities
  • technical research, technical presentations
  • logbook and maintenance report reading / interpretation
  • customer service and client interaction

Minimum requirements:

  • A&P – Preference to those who hold or have recently held an Inspection Authorization (IA)
  • Experience working with turboprop and jet aircraft within the business aviation industry
  • Technically competent
  • Excellent people skills
  • An abundance of energy and an inquisitive nature towards solving problems
  • Willingness to travel as needed
  • Must also be comfortable working in a close-knit, team environment where attitude and work ethic matter

Are you in? 

If you fit our minimum requirements and are ready to join our first-rate Guardian Jet team, please take a moment to review our full job description.

Then simply email us your resume, cover letter and salary requirements. No phone calls, please.


About Guardian Jet

Since 2002, our mission has been to earn the right to buy and sell aircraft on behalf of our clients. We accomplish this by delivering unrivaled aircraft brokerage and consulting services to many of the world’s largest and most sophisticated flight departments, helping them through the often-challenging process of buying and selling aircraft.



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

The Economics of Aircraft Valuation, Part II

We recently delved into the often-challenging topic of how to effectively price your business jet.

In that blog, we posed some relevant questions regarding what you should consider when you’re trying to assign a market value to your aircraft and why.

Now, drilling a bit deeper into the issues, we want to pinpoint some of the critical factors to help you confidently valuate your aircraft. These considerations can help regardless if the market—the general climate for jet sales—is soft or robust, stable or fluctuating.

Aircraft Valuation Factors

The age, condition, features and performance record of your aircraft are certainly vital to any credible valuation of it.

But so are the external factors—the market and general economic environment at the time of your valuation.

As mentioned, we touched on a few of these market factors. Now we’ll offer some additional context for pricing your aircraft.

Following is a more comprehensive list of key market considerations to help you put a more accurate valuation on your airplane. Knowing the answers will help you determine the value potential when it’s time to remarket and sell.

  • The current market values for similar aircraft, from oldest to newest.
  • The estimated five-year residual value projection.
  • The adjusted market value.
  • The number of recent aircraft sales over the past six months, from most recent to oldest.
  • The most recent aircraft appraisal.
  • The condition of the peripheral markets.
  • The number of available aircraft like yours in the market, and the number of them that are for sale.
  • The assessed best time to invest and/or divest in the asset.
  • The ready availability of maintenance parts and spares for your aircraft model.


Other factors affecting the price of your jet:

  • Use Case – Remember that aircraft use cases can differ considerably, depending on the needs. If the aircraft is owned by a Part 135 charter operator, it’s designed to offer maximum capacity and revenue generation. It may have more flight hours with more takeoff and landings than a Part 91 operator, which adds to the wear and tear of the interior.


  • Adjusted Market Value – The AMV indicates that the market or base value of the aircraft has been adjusted from a half-life condition to account for the actual maintenance status. It should come as no surprise that the maintenance you perform on an aircraft has an impact on its value. In fact, “monetizing aircraft maintenance” is a major factor in valuating an aircraft. If you keep your jet well-maintained and follow an aircraft engine program, it will always be in “ready-to-sell” condition.


  • Aircraft Asset Depreciation – Like most physical assets, an aircraft develops a “depreciation profile” whereby its current market value depreciates, over time, to a residual value. This trend, along with increasing obsolescence factors resulting from new technologies and improvements in fuel burn, has the effect of limiting an aircraft’s useful economic life.


  • Inflation – While economic activity is a key driver of aircraft valuation cycles, the role of inflation should also be considered. While there may be short-term fluctuations, over the long term, inflation can have a significant impact on pre-owned aircraft values. For example, an increase in the net price of new aircraft can have a positive effect on used values, and vice versa. An increase in the rate of inflation is a positive dynamic for the asset-based financing of aircraft when compared to traditional assets, such as bonds and equities.


Be Circumspect

The preceding factors ought to be a strong focus of your assessment and valuation. But don’t forget that there’s no better way to effectively evaluate your aircraft than to try and absorb everything you can regarding the current market. That way you can see how your aircraft measures up.

Also keep in mind that there’s no “silver bullet” to aircraft valuation and pricing. There’s no absolute framework by which to judge the value of your aircraft.

An aircraft’s value is best determined on a plane-by-plane basis, with all the unique considerations of your potential buyer’s needs measured against your plane’s attributes. The results, hopefully, are for a mutual agreement between the buyer and you, the seller.

Talk to an Advisor

Considering the above-mentioned, we’d be remiss not to pitch our own expertise in this valuation equation. As jet brokers, the core of our business is understanding aircraft value and how those values are affected by the influences in our market.

We view our clients as the best business people in the world, and we consider it our job to provide them with the information necessary to make an intelligent assessment of their aircraft, and then help them to execute a sale transaction flawlessly. And we always start by listening and diagnosing before we offer any solutions.

At Guardian Jet, we’ve developed a very comprehensive methodology that focuses on how aircraft, on a relative basis, will perform in terms of resale value.

If you’d like a quick and accurate calculation of your airplane’s value, we’re here to help. Simply complete this short online request form or us a call at +1-203-453-0800.



Posted in Aircraft Valuation, Asset Management, Aviation Industry, Business Aviation, Fleet Planning, Guardian Jet Learning Center, Ownership | Tagged , , , , | Leave a comment

Are Aircraft Buyers Getting the Information They Really Need?

On January 30th at the 2018 Corporate Jet Investor conference in London, Guardian Jet’s Don Dwyer presented, “Are buyers getting the information they really need?”

Read the transcript:

[Don]: I want to start with a recap, and build on a theme that I heard from Chad Anderson and Brian Proctor yesterday.

In my presentation last year, I started with a recap of 2016 and the 126 models that my company measures. Of those that we track and analyze, there were 1,647 transactions. (Now, that’ll be a little different than NBAA deliveries or NARA numbers because they don’t track the same airplanes. But the percentages are very close).

guardian-jet-2016-vs-2017-aircraft-transactions v2

There were 572 brokers in those 1,647 transactions. My point, at the time, is that in the brokerage community, there are no barriers to entry.

As Brian Proctor said yesterday, the guy that cuts his hair has more stringent requirements to be a hair cutter than to be a broker. We have incredibly varying levels of competence in those 572 brokers. Competence in technical, contractual, regulatory issues, financial acumen and ethics.

This year, we had 1,573 transactions. So while most people say it was a great year (it was for my company), but in the models that we measure, there were slightly fewer transactions. The good news is there were 482 brokers, so it’s coming down.

We said last year that we wanted the bottom number to grow, and the one on the right to go down. So at least the one on the rights going down.

It’s even more prevalent in the in the light jet business, which I think it’s a more serious problem. There were 408 transactions and 220 brokers. By the way, this talk is not about aligning yourself with a big brokerage.

I’ll talk about our company just a little bit. We’re not the biggest guys in the game, but at 60 transactions were one of them. We buy more than we sell. Last year, out of the 60 transactions, 36 were purchases. About half of those were new airplanes. So we have some weight in the in the community.

So this year, there were 457 transactions. A good year. Transactions went up and there were only 164 brokers.

I looked at how did that happen. I think the easiest way to explain it was I think a lot of you know Cyrus. Cyrus Sigari at JetAviva is rolling up a couple companies and putting some together. But what he really did was go out and embrace the community to that he sells to—the light jet community.

He puts on events. He’s at every Citation jet pilots association event. He really went out and embraced that community, which is something I think we all need to do. So we’re going in the right direction and moving toward in that space, I think, one of the better models for brokerage.

I’ll get on with what Al asked me to talk about and the question was are customers being served by the brokerage community? I will tell you across those 572 brokers, it’s impossible that they’re all served really well.

Is there too much data in business aviation aircraft sales?

The next thing he asked me is there’s too much data. And the answer to that is emphatically no.

We have a we consulting business along with along with a brokerage. We crunch a lot of data, and I am regularly criticized for providing too much pricing information to my customers.

Let’s think about that. I provide pricing information to my customers. I tell people what airplanes are worth what the markets are doing because that informs them and they make better decisions because of the data.

At the end of this month, we’ll have six full time researchers so we have a lot of data. But I get criticized for showing it to my customers I am NOT giving this out to anybody that I don’t have an exclusive brokerage with.

So is there too much data? No.

I’m not sharing it with your customers, but the reason I get criticized is people will say, “Well it’s harder for us to make money when they know what these airplanes are worth.”

I’m sorry but that’s just old school. That’s an old model that’s not gonna work for much longer.

Is there not enough insight in aircraft sales?

The other question Al asked me is, “Is there enough insight?”

I will tell you that depends. I think across those 572 brokers yeah probably not but there’s a lot of insight being gleaned from the data. Today that the better brokers, in this room and around the world, are of providing.

Oh, Simon Burroughs I don’t think Simon’s here great young broker here smaller business believe me I love the smaller businesses they’re serving their customers well.

Simon said to me, “data is the new oil.”

And I thought that was really interesting. He went on to talk about the insights that he was gleaning from the data, and helping his customers. A really, really great approach, but I think it depends on who your broker is if you are getting the insight.

There’s what it boils down to. I think everybody does a little of both.

deal-centric vs customer-centric

There are deal-centric brokerages and there are customer-centric brokerages.

There’s a lot of people out there just turning deals. There is nothing wrong with that if you are buying or selling an airplane. There’s nothing wrong with being a great broker that just goes out and execute transactions flawlessly.

deal-centric expertise

Deal-centric Broker

What does it take to be a good deal-centric broker? Well you’ve to have transactional expertise.

  • Valuation
    You’ve got to understand the value of airplanes. That’s why I have all these researchers. Valuation is the cornerstone of every good brokerage. Most brokerages aren’t covering 126 models from the PC-12 to the G650.I think I did a dozen “like jet” deals last year. It’s about half a dozen probably. Most of our businesses the super midsize and above. But wherever you are—and most brokerages tend to focus on a smaller segment than we are—you’ve got to be good at valuations.
  • Technical
    You’ve got to be strong technically. These are complicated airplanes.
  • Regulatory
    Today you’ve got to be good at the regulatory issues because, one, its going to affect valuations. But, two, it really affects your customers experience when, in a year, they have to change things and invest money in their airplane that they may not get back when they sell it. So understanding regulatory issues is important.
  • Contractual
    So we say it differently than Brian said yesterday. I love how he said he wanted a standardized contract. I thought that was really, really good. And I know you know one of our guys is on the board and NARA with them. And I love the idea of the standardized contract. It’s hard to pull off in this environment.The way we say it is we are looking for industry standards. We want to negotiate like demons on the commercial issues in the transaction, but then when we go to contract. We want it to move fast, and we want to go to industry standard. We are not trying to gain advantage in the contracting process. I think somebody that’s a good deal-centric broker has to do that.

By the way, there’s times that I’m a deal-centric guy. Somebody comes to me and says, “I just want you to sell my airplane. Stop with the data. I don’t need a fleet plan. Please sell my airplane.” So this is what I need to be good at.

save millions - customer centric


Customer-centric Broker

Being customer-centric is different. The expectation of the customer.

Getting lifetime customers. The reason we do it is because—and this is not an idle claim. The first time I heard my brother say it, I said “Should we say that?” And then he brought up all the examples where we do it and anecdotally. I can tell you stories all day long where, over the life of the asset, when you buy, how long you own it, how you equip it, looking for opportunities in the markets, understanding when to sell, and what what’s available from the OEMs in the used marketplace. We save people millions of dollars over the life of the asset. So does every good broker. I’m looking at Brad Harris. Brad has done that time and time again.

What is the expectation of a customer-centric brokerage customer? It’s very different from, “Go get me the next CJ or go sell my 450.”



  • Transparency
    Their expectation is transparency. And this is a hard one for this industry without any regulation.I love what’s going on at NARA. A great thing I heard yesterday, which I hadn’t heard about, was the thrust to be an international organization. With no borders on the regulations, there’s no reason NARA isn’t international. Bravo Johnny for pushing that.Transparency is a big deal in our industry. Our customers are engaged with us to be their advocate.I saw something yesterday in Brian’s presentation that really stuck with me. The expectation of our customer group is there’s hidden money in the deals. That somebody’s making money they don’t know about. The expectation.

    To me, that’s extraordinary and wrong. And, by the way, this happens in every industry. And it eventually filters down to the transparent businesses. When in the maturity of an industry, this is coming.To be customer-centric, you have to have expertise in a total cost of ownership. Not only do I have to be good at valuation, technical, regulatory and contractual (what the deal-centric broker has to do), but now I’ve got to be good at a lot of things: residual values, financial instruments, capital planning and market trends.

total cost of ownership corporate aircraft sales

  • Residual Values
    There’s a couple of great residual value stories. If we looked at the 10 years prior to 2008 (and that includes 4 years of irrational exuberance), the top 10 models that we sell lost an average of 1.5% over a 10-year period. You bought an airplane in in 1997, you sold it 10 years later. The 10 models lost an average of 1.5%.The same period for us now, it’s double figures. So that’s a sea change in the business.But what performed really well? The G650. I bought a G650 at $59.5M. It’s now 5 years later, I got 1500 hours on the airplane, and I go sell it for $46M or 47M. Do the math. It’s not double digits.The new introductions—the Phenom 300—the only airplane I know that’s really pre-2008 in its residual value reduction, it’s like 3 or 4 percent a year. Well that should affect my buying decision.I still like the Lear 75. It’s a great airplane. It competes with the 800. Eight seats. It does a lot of things well. It’s bulletproof, but boy that if I’m looking at the total cost of ownership. That 3-4 percent a year matters.
  • Financial Instruments
    I’ve got to understand financial instruments. There’s a few people here (thank you for their sponsorship of this) from Global Jet.We just did a deal with Global Jet where we represented the buyer and seller. That’s something we’re doing all lot more now. Something I don’t love to do is represent both sides of the deal. (By the way, you think transparency is important? Represent both sides of a deal).Well, the guys at Global Jet were brilliant because we had a customer that had leases with more than one financial institution. The guys at Global said, “Okay they want out, but you have another customer. Can we get them into a lease?” And now we got three big companies, and a little one, working together.We saved the buyer millions who bought the best airplane in the world. And we saved the seller millions because getting out of a lease can be incredibly restrictive. So understanding financial instruments is more important today. There’s a whole discussion on leasing buying financing, etc., that’s different. But you’ve got to be great at that to be a customer-centric broker.
  • Capital planning
    We just love capital planning. We think that whether you own a CJ2 or whether you’re Walmart who owns more than one airplane, you really ought to be smart about the capital you have invested.How long should you own these airplanes? How should you prepare the airplane? Should you be on an engine program? And, by the way there’s never an easy answer to that question because it depends on the model and time, and a lot going on. In that discussion, you ought to be good at capital planning.For every Walmart fleet plan we do—every annual plan we do with these large customers—I probably do 10 “I fly 100 hours a year. Should I own my own airplane and charter it? Should I get a fractional? Should I just keep chartering?”That’s just capital planning. If you’re really involved with your customer, and really always put his best interest at heart, you’ve got to be good at that.
  • Market Trends
    Of course, you’ve got to understand market trends. That’s what I love about our researchers because they’re living in these markets. Believe me, I’d love to tell you I’m the smart guy in the business. I’m not. These are the guys that live in these markets that tell us what’s going on.So, go back to that 452 brokers—this cottage industry—with no regulation, that anyone can enter, regardless of their ethics. I am so tired of brokers sending me emails that say, “I’m looking for an off-market G550.”

    “I’ve got three airplanes on the market today. Why are you looking for an off-market?”It’s because they’re trying to make money in the middle. I get it. I’m sensitive to it. I understand that everybody’s got to make money, and sometimes you don’t have control of the customer, so I understand it.

    But I’m seeing more off market airplanes today coming across the desk than what’s in a listing service. Well they’re on the market. There’s no real such thing as an airplane for sale that’s off market. I’m sure there’s a good reason to do it, but I haven’t figured it out.But, anyways, if we if we think across that spectrum of brokers…

    Jay Mesinger is at the top of those 572. Brad is at the top of those. Johnny is at the top of those. Chad. These guys are all at the top. Joel McCarthy. Great broker.

move your customers to a better broker
Move your customer to the better brokers. You owe it to your customers.

I think that you should expect more for your customer and demand more of your broker than a lot of the people in the industry are currently getting.

Thank you.

[Question]: Do you think we should be publishing transaction prices?

[Don]: That’s a great question. Of course, it’s a leveler. In the real estate market, you can go down to the town hall and you figure it out. Should we publish it? You know, I spend a lot of money to get it, and other people aren’t. I’m not anxious to publish what I have, except to my customers. So it is probably a bigger issue than my capitalistic nature, but I don’t know that it would be a bad thing. I mean I think it’s a leveler.

It’s a little difficult when you publish prices and Brian or Chad alluded to this yesterday. They said they said you can make mistakes when you only hear the price you hear about a

G550 that sold for $15 million. You don’t necessarily know, was it damaged? Was it up to regulatory compliance? Was it horrid looking? I’m afraid that we live in such thinly traded markets.

It’s an interesting thing about the markets right now. There’s more of G550s than GVs. We really looked hard at the last 6 months of sales and pricing. The six months previous in October when I looked at it, there were 24 sales of G550s; there were two in the GV market in 6 months. That’s levelled out a little bit since then. I’m afraid that those are really thinly traded markets. So, somebody could make a leap if they look at a $9M GV and not really understand what that means. That’s probably where the danger in it is.

[Question] To follow up, let’s say there’s a white tail goes off at a $16M discount. I think everybody in the industry finds out about it. You were talking about valuation. So would everybody at the banks have the same perfect information?

[Don] That’s a great question. I probably buy more new airplanes than anybody in the world we’re buying 18-20 new airplanes a year, year in and year out. I hear about pricing that I can’t get. I hear about $35M Globals and I hear about Challengers for unbelievable numbers. And I can’t get ‘em. I think I’m OK at getting the lowest number I can get.

If it was published, it would protect the person that over pays. We’re very sensitive to the vagaries in the marketplace. If there’s a bunch of whitetails by a manufacturer, and I know I’m gonna pay “X” they sell them all out because they sold them all at “X.” Well now they want a $1M more. Well it’s not really good service to buy one of those for my customer because the guy that bought it for a $1M less—he’s the one setting the resale price.

There’s probably some merit to it, but you know people engage us for that and I don’t know… I love the idea of transparency, but I want to make sure people are educated. And that’s harder in this world where there’s a lot of information flow in this world. There’s a lot of people understanding what’s for sale and what’s not for sale and you know it, but man it’s in the weeds. Is it a good buy? Is it a good sales price? You’ve got to have the time and energy and resources and people to dive down in the weeds to understand the pricing.

[Question]: What defines a broker?

[Don]: We’re a broker. We’re representing customers and transactions. I think we wear a couple hats as some other companies do. I think we’d probably marry them better than most but we’re a consultancy first.  I spend my energy on consulting. As a matter of fact, our sales guys they’re charged with customer creation. They’re charged with bringing in new customers, and we sell the airplanes internally. The easiest thing in a brokerage is to sell the airplane. Getting the customer to let you give you an exclusive listing is the hardest part.

[Question]: Will you disclose pricing information.

[Don]: That’s a really good question.

We distribute pricing information to our customer base, but there are customers that don’t want to say what they spent on an airplane. And of course we won’t distribute that there’s an interesting thing of how do you find these prices it’s and I hate to say it it’s horse-trading.

First of all, the Blue Book and vRef are fabulous. They are they are stunning in how close they are. They’re measuring a lot of models. We kind of take it a step further, and we work with everybody and try and understand what’s happened in a very short, acute period of time. But yeah, I don’t think people would like to see their name published.

The GE flight department closure was sort of the tip of the iceberg. We’re seeing a lot of companies shrink their flight departments. There’s a lot of scrutiny around should they go to EJM, should we go to FlexJet, NetJets, and it’s all related to the optics, which I think that question addresses.

[Alasdair]: Brilliant. Thank you very much, Don. Thank you.


Posted in Uncategorized | Tagged , , , | Leave a comment