Vault 2.0: Asset Management/Brokerage Platform to Save Aircraft Owners Millions

Guardian Jet Vault 2.0 Online Asset Management and Aircraft Brokerage ServicesGuardian Jet’s newly released “Vault 2.0” next-generation asset management/brokerage platform is about to revolutionize the way aircraft owners effectively manage their equipment assets.

It will do so by putting a wealth of fully transparent, real-time information, data and other input at our brokerage clients’ fingertips.

How?

The new Vault 2.0 portal is a bona fide “supertool” that is already helping them save millions.

You might be wondering: “Really? Millions?”

If it sounds too good to be true, below, we’re sharing some real-life case studies culled from our clients’ experiences to help convince you.

But first let’s take a look at what, specifically, the Vault 2.0 portal is designed to accomplish, what it consists of, and, lastly, how it can be harnessed to help optimize aircraft asset management and brokerage services.

 

“Vault 2.0.”

As stated, Guardian Jet’s revolutionary new “Vault 2.0” is a next-generation asset management/brokerage portal designed for our brokerage clients.

Simply put, the new program advancement:

  • Provides crucial knowledge and transparency around high-dollar airplane transactions—two things that are out of whack in the unregulated world of aircraft brokerage services.

 

  • Delivers the best actionable analytics and insights for more informed decisions—those that are both tactical and strategic that will save clients millions of dollars, with better-timed and executed aircraft trades.

 

  • Offers real-time, 24/7 online access to asset management and brokerage information, including every financial document and detail regarding clients’ airplanes make and model—simultaneous with those that are received at Guardian Jet. Armed with this information, clients can better understand and optimize aircraft values and the markets for 126 aircraft models, along with replacement options.

 

Vault 2.0 accomplishes its objectives in 10 important and straightforward ways:

1. Enables access to critical aircraft asset and life-cycle cost metrics to include fleet option calculations that compare to clients’ existing solution.

2. Offers real-time access to current asset value.

3. Provides ability to filter replacement aircraft options and compare model capabilities based on mission and business requirements.

4. Delivers needed information readily, 24/7, with just an internet connection.

5. Provides continuous reviews driven by calendar and opportunity.

6. Offers actionable, simple strategies and tactics driven by clients’ business rules.

7. Provides a confident offense and solid defense regarding whatever market and internal conditions dictate.

8. Helps aircraft owners execute completely transparent trades when the plan calls for it.

9. Invites aircraft owners to partner with the leading fleet solution provider in the world, period.

10/ Helps owners evaluate how to pay for the aircraft asset via cash, finance or lease.

 

Stock Management Comparison

Next, to show you how we’re using Vault 2.0 to save our clients millions, we can illustrate how the program operates by comparing it with the world of investing.

A great analogy for the process comes from Ben Graham, the father of value investing and an inspirational figure for Warren Buffet.

Graham is the author of two widely acclaimed books, Intelligent Investor and Security Analysis.

In them, he identifies two types of investors:

Enterprising Investors – To be an enterprising investor requires a serious commitment of time and energy, which pays dividends by eventually yielding an anticipated return.

Defensive Investors – A defensive investor represents a more passive approach. Working under this label, you must devise a strategy of regularly analyzing funds that protect against risk (or even employ an agent who is an enterprising investor).

 

Adopting either approach will enable you to invest and manage your aircraft assets in much the same way that a shareholder manages his or her stock portfolio.

You can do so by using a simple, value-oriented, business-like strategy that incorporates a margin of safety and takes advantage of market volatility.

Understanding what kind of investor you are going to be will let you generate the highest return possible given your circumstances.

And by adopting either an enterprising or defensive strategy will differentiate you from an investor and a speculator.

This is not to say that managing a stock portfolio and managing your aircraft assets are one in the same. In fact, when regarded within the investment framework, airplanes share very few characteristics with equity investments.

It is possible, however, by measuring and analyzing critical aircraft asset and life cycle cost metrics, to execute strategies that are consistent with value investing, and that reap similar rewards.

After all, the desired outcome is the same in either scenario: to generate the highest return on your aircraft (or stock) portfolio, one that meets or exceeds your aircraft travel requirements and service expectations.

 

Case Study Summaries

As promised, for evidence of Vault 2.0’s efficacy, following are a few select case study summaries that highlight the process and its value.

  • As a defensive strategy, an ultra-lone range and helicopter operator engaged an asset management plan, initially to trim a six-aircraft fleet to four. The asset plan not only highlighted which two aircraft to sell, but it also pointed out savings of just under $60 million, if all six aircraft were replaced with new ones in 2010. As a result, the entire fleet of six were swapped, turning a defensive strategy into a decidedly offensive one.

 

  • A light jet operator wanted to upgrade, but market conditions didn’t meet his expectation of $1 million in cash and his airplane. He engaged in asset management and tracked what then were current aircraft and replacement options until, 18 months later, we found a workable fit for him. (A neutral strategy.)

 

  • An international large-cabin operator wanted to improve their replacement strategy 25- to 30-year-old aircraft. The goal was to replace in shorter ownership intervals, have zero capital competition among their fellow business units and eliminate residual value risk at the end of the ownership period. He engaged in asset management and employed leasing (a defensive strategy).

 

  • An operator with a large-cabin fleet sought to “missionize,” and match his fleet to existing and future international and domestic missions. The solution was a mix of ultra-long range and super-midsize aircraft, which saved millions in capital and direct operating costs. Executed three years after an asset management engagement, it was characterized as an offensive strategy. 

 

  • Three partners, each with a 150-hour fractional share, wanted to have their own airplanes. Solution was to remain in a fractional environment until each partner had enough demand individually to warrant purchasing three aircraft, (a neutral strategy).

 

Register for a demo . . . today!

Now that you’ve been introduced to the game-changing power of Guardian Jet’s new “Vault 2.0., it’s time to take the next logical step.

To see how this remarkable new portal-based program can specifically help you save money and increase your asset management and brokerage efficiencies, you can:

  • Ask you Guardian Jet sales representative to schedule a live demonstration.
  • Register for a vault subscription at guardianjet.com/Vault.
  • Visit Guardian Jet at NBAA’s Business Aviation Convention & Exhibition (SD24), Oct. 10-12.
  • Call +1 203-453-0800 to schedule a video demonstration.

 

Posted in Announcements, Asset Management, Business Aviation, Fleet Planning, Guardian Jet, Guardian Jet Team, News, Vault 2.0 | Tagged , , , , , , , , , , , | Leave a comment

Elegantly Appointed Gulfstream GIV-SP, S/N 1301

Guardian Jet is teaming up with Hatt & Associates to represent the seller of this meticulously maintained, 11-passenger Gulfstream GIV-SP (serial number 1301).

Gulfstream GIV-SP sn 1301 exterior night

 

Being offered at $4,750,000, this 1996 GIV-SP has an excellent pedigree, having been first owned by a Fortune 100 company.

It has since been exceedingly well-maintained and equipped by its second owner, a private individual.

The interior was partially refurbished in 2014, adding new carpet, fabric and counter tops. Fresh 24/48 month inspections will provide the new owner with a turnkey aircraft, ready to “buy and fly.”

There’s no history of any damage to the aircraft throughout. 

 

Gulfstream GIV-SP sn 1301 interior refurbished

ABOUT THE GIV-SP

As many might be aware, the original, GIV version of this aircraft started production in 1986.

In 1992, it was upgraded to the GIV-SP version. The GIV-SP is outfitted with the same engine as the GIV, but it has slightly more range (4,000 nm for the GIV vs 4,137nm for the SP).

Gulfstream also upgraded the avionics and added additional “payload” (the part of the aircraft’s load from which revenue is derived, i.e., passengers and cargo).

Notably, in addition, the SN 301 offers:

  • Fresh 24/48 month inspections
  • TCAS II Change 7.1
  • Engines on Rolls Royce Corporate Care
  • APU on MSP Gold
  • Enrollment on BriteParts, HAPP & MPP
  • ATG-5000 with Swift Broadband
  • Repainted in July, 2010 at Gulfstream Appleton

INTERIOR HIGHLIGHTS

The SN 301 boasts a spacious, beautifully appointed floor plan which features:

  • A 2-place club opposite a 3-place divan in the forward cabin
  • A right-side conference group facing a large credenza in the center cabin
  • 2 single chairs at individual work stations in the aft area (with pop-up monitors)

 

Gulfstream GIV-SP sn 1301 interior workstations with popup monitors

AFT GALLEY HIGHLIGHTS

A fully appointed aft galley and lavatory complete the interior.

Also notable, the aircraft received a partial refurbishment in 2014, which replaced carpet, fabric and counter tops.

Features in the aft galley include:

  • Wemac cooling unit
  • Nordskog Industries high-temp oven
  • Aerolux espresso machine
  • Tia coffee maker
  • Microwave
  • 2 ice drawers

 

Gulfstream GIV-SP sn 1301 aft galley

AFT LAVATORY HIGHLIGHTS

The aft lavatory offers a vanity water switch mode to prevent water flow when the lav door is open.

There is also storage in the aft lavatory for galley items (e.g., wine bottles, third cooler unit and third ice drawer, among others).

 

Gulfstream GIV-SP sn 1301 aft lavatory

S/N 1301 MAINTENANCE HIGHLIGHTS

In addition to the maintenance features and benefits listed above, this GIV-SP offers:

  • Gulfstream CMP maintenance tracking
  • ASC 320: Max Landing Gross Weight 58,500 lbs. c/w September, 1997
  • ASC 465A: APU 36-150 (G_ Installation c/w March 2010)
  • ASC 480: TCAS 7.1 Installation c/w July 2014
  • ASC 481A: ADS-B Out c/w July 2015 (Note:  ASC 477A & 502: ADS-B Out Installation required for 2020 compliance
  • ASC 501B: Gust Lock Throttle Lock c/w August 2017
  • Engines on Rolls Royce Corporate Care

 

Gulfstream GIV-SP sn 1301 jet engine and maintenance specifications

COMMUNICATIONS & ENTERTAINMENT HIGHLIGHTS

  • GoGo Biz internet and voice (ATG-5000 and Aircell Axxess II wifi router)
  • Airshow Genesys 400 system
  • Two 19″ bulkhead monitors and one 19-in. credenza monitor
  • Magnastar C-2000 with 4 handsets (1 wireless)
  • Dual DVD Player by Rockwell Collins
  • Auxiliary A/V Input Panel interfaces to the existing CMS to enable connection of auxiliary audio & video sources
  • Four 15” Rosen Slim-Line monitors (located on forward bulkhead, above the credenza and one at each aft work station)
  • Triple Collins VHF-422D w/8.33 Spacing
  • HD-710 high-speed data terminal
  • EMS Aviation CNS-200 wireless router (provides access to Swift broadband services, 2 channels of Swift 64 mobile ISDN services as well as existing Aero H/H+ voice communications simultaneously)
  • EMS Aviation CNS-200 network accelerator interfaces with the Honeywell HD-710 HSDT & ATG-5000 and functions both as a network router & switch.
  • Facsimile / Copier / Scanner by Brother

 

Gulfstream GIV-SP sn 1301 communications

Among the outstanding communications capabilities:

  • RVSM-capable
  • Enhanced vision system
  • FM immunity
  • CAT II approaches
  • 33 kHz channel spacing for comms
  • BRNAV/PRNAV-capable
  • RNP-5-capable
  • Heads-up display

 

Gulfstream GIV-SP sn 1301 cockpit - flight deck

GIV-SP FLIGHT DECK HIGHLIGHTS 

  • BF Goodrich GH-3000 electronic standby instrumentation system
  • 5” LCD Sharp monitor mounted on the control wheel (removable) when used displays weather info from airshow system
  • Securaplane 450 security system
  • Cockpit (crew) jump seat
  • Precise Flight Pulselite
  • Davtron Clocks (pilot & co-pilot)

TO LEARN MORE

As you can clearly see from its extensive list of features and qualifications, the Gulfstream GIV-SP SN 1301 represents a remarkable opportunity to own a meticulously maintained jet aircraft. Click here to view the SN 1301 listing and see more images.

In addition to this model, we’re also offering this Gulfstream GIVSP SN 1209. It’s a 1992 model being offered for $3.095 million.

 

To speak with a member of our team regarding either GIV-SP aircraft, please call your Guardian Jet representative or our main office at +1-203-453-0800.

 

 

 

 

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From AIN: Aircraft Brokers Weigh in on BizAv Market

Aircraft brokers weighed in on the issues facing the business aviation market at the recent NBAA Regional Forum in Morristown, New Jersey.

AIN asked Joe Carfagna, Jr. of Leading Edge Aviation Solutions and Michael Dwyer of Guardian Jet for their views on the state of the market.

 

 

Joe Carfagna, Jr.: The markets in general feels like they’re starting to tighten up a little bit. And, in some cases, they’ve already tightened where the supply of certain makes and models is becoming a little bit more scarce.

This is refreshing because it’s really the first time in about 8 or 9 years that we’ve seen this happen.

It feels right now that residual value versus what new pricing is, in most cases, is at a very attractive point in the pre-owned market and that’s why this supply tightening is starting to occur.

It doesn’t seem normal that, in some cases, the airplanes can get to a residual value that we used to see at 10-years-old they’re getting it at 5 and 6.

 

Mike Dwyer:  The pre-owned market has been extremely strong for the last three quarters, and I’m not even counting third quarter, but 4Q—election-year. Activities are up. Volume is up.

We’re seeing the most activity in the longer-range equipment, the international equipment (e.g., Gulfstream, Bombardier and Dassault), and also the super midsize—what I call the flat floor—the 3,000-mile airplane that’s a great U.S.  domestic workhorse.

We’re seeing inventory dry up in a number of acquisitions in all those markets, which hasn’t happened for years. We’re getting airplanes bought out from under us. So that’s a very different thing.

The other thing is pricing.

We’re not predicting pricing going up, but we’re predicting it’s stabilizing.

We’re starting to hit the mark on what we project the sale price or the purchase to be when we get to a closing. Where we’d been kind of behind the 8-ball, catching a falling knife since 2008. So that’s a big improvement.

I’m not a great economist. I don’t see a GDP-fueled recovery. I think the political landscape has inspired a lot of confidence. And that middle-class buyer, the $100M to $500M company, all the way after the high net-worth individuals, are just confident now and saying, “this is time to get in.”

 

AIN: While demand is going up and inventory is becoming more scarce, so far, this has been primarily in the US market.

 

Mike Dwyer: I think there’s more U.S. confidence. I don’t think we’re seeing a swell yet from international. There’s some signs of international reawakening, but it’s not robust yet.

 

Joe Carfagna, Jr.: Well, primarily right now the buyers are in the United States. There are some overseas buyers, but as a rule of thumb most of the buyers are here. So the buyers that are here would like to buy airplanes that are here.

The U.S. airplanes are getting sold first. That will leave the foreign airplanes to be sold next, and it remains to be seen how that really all plays out.

 

AIN: Possibly contributing to the improving market are customers who have been moving up from flying with services like fractional shares and jet cards.

 

Mike Dwyer: I love fractional programs. FlexJet. NetJets. I love jet cards. I love Wheels Up.

Because what they’re doing is they’re bringing the new airplane person into the market. But at a much better level of equipment and service and reliability than they had that option decades ago.

If a new airplane traveler is breaking away from the airlines, and starting to think about charter, he has so many more options. And that does nothing but feed the brokerage business because their demand increases.

It does this in two ways. Number one is just the natural accumulation of: “Hey this is great, I want to do more of it.”

But also now they’re spoiled. Now they’ve been on new equipment and near-new equipment with very high level of professionalism in the cockpit, and in the cabin, if they’re at that class of airplane.

 

AIN: And finally, if you’re an owner looking to take advantage of the improving market, Dwyer has a bit of advice keep your asset liquid.

 

Mike Dwyer: From a buyer or owners point of view, owning an aircraft is just like an asset in your portfolio.

I want you to buy smart, but I want you to have your end game in mind. I want to drive how you operate the airplane in the middle, within that whole life-cycle thought process.

I don’t want you to think about buying when you’re buying, and selling just when you’re selling. I don’t think that’s when you should meet your broker—when you want to sell a plane.

I want to convince you to do things that will maximize the value of your airplane, but also make it more liquid.

I like cash better than I like stocks, better than I like real estate—because of liquidity.

I like to make an airplane as liquid as possible, which means it’s not just current on its maintenance, but its interior has been regularly refreshed. The airplane is ready to go. All the regulatory requirements that are coming in the next year or two are done in advance.

Not, “oh sell it for less.”

The old strategy of “oh, I’ll just stockpile all the things I need to do to my airplane and sell it for less” doesn’t work in today’s market.

I love liquid assets.

That’s why I like engine programs we could talk for hours about engine programs and the cost effectiveness. It makes it a liquid asset. So that’s what I like about regular refurbishment engine programs and liquidity.

 

For more information, visit the AIN article: Pre-owned Bizjet Market to Stabilize, Experts Say

 

Posted in Aircraft For Sale, Asset Management, Business Aviation, Fleet Planning, Fractional, News, Ownership | Tagged , , , , , , ,

Dassault Jet for Sale: Falcon 2000 – SN 203

Companies or private individuals seeking a terrific aircraft to begin or add to their fleet should give serious consideration to this well-maintained 2003 Falcon 2000, serial number 203.

Offered at $5,495,000, the owner of this aircraft is extremely motivated to sell. All offers or trades will be considered.

Falcon 2000 sn 203 exterior guardian jet

About the Falcon 2000

The Dassault Falcon 2000 is a French business jet and a member of Dassault’s Falcon business jet line. It operates with a twin-engine that has transcontinental range. At present, the aircraft is often operated by private individuals, companies and executive charter operators.

Falcon 2000 sn 203 exterior guardian jet

 

Highlights of F2000 Serial Number 203

 Following are a few of the highlights associated with the aircraft:

  • Turnkey aircraft
  • Will be delivered N-registered
  • Fresh pre-buy inspection
  • Fresh A/A+, 1A/1A+, 2A/2A+, 3A and Z
  • 2C and Gear Overhaul Completed in 2015
  • Engines enrolled in CSP Gold program
  • APU enrolled in MSP Gold program
  • Always hangared

As of March 23 2017, this 2003 Falcon 2000 has a total time of 3,618 hours with 3,509 landings. 

Falcon 2000 sn 203 avionics guardian jet

Avionics

Features and highlights of its avionics include:

  • Collins Pro Line IV Avionics
  • Dual Collins ADC-850 Air Data Computer
  • Dual Automatic Direction Finder – 462 Modules
  • Honeywell Cockpit Voice Recorder (120 minutes)
  • Dual VHF-422C VHF Transceivers
  • Dual Distance Measuring Equiepment -422 DME Modules
  • 3-Frequency -96 Emergency Locator Transmitter
  • Honeywell Digital Flight Data Recorder (32 Parameters)
  • Dual Collins Flight Management System -6100 with GPS
  • Dual Collins HF-9034A HF Transceiver
  • Dual Honeywell HG2001GD03 Inertial Reference Units
  • Dual Collins VIR-432 Navigation Modules
  • Collins ALT-55B Radio Altimeter
  • Honeywell TCAS-II w/ Change 7.1
  • Dual Collins TDR-94D Mode S with Flight ID Transponder
  • RTA-858 Weather Radar

 Falcon 2000 sn 203 engine guardian jet

Maintenance & Inspections

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

  • Engines enrolled on CSP Gold
  • APU enrolled on MSP Gold
  • CAMP Maintenance Tracking Program
  • In-service date: 03/19/2003
  • Dry Bay Mod completed
  • 2C Inspection completed at Duncan Aviation in Battlecreek, Michigan
  • 2A/2A+ completed in July 2016 at Aliserio Srl
  • Fresh gear overhaul

 

Take a Look Inside

This beautiful, 10-passenger executive interior features a forward 4-place club with folding tables and an aft 4-place conference table facing a two-place club seats. The wood and leather details are in great shape, so updates are not required.

Falcon 2000 sn 203 interior 5 guardian jet

The aircraft is also equipped with a forward galley, aft lavatory and a crewmember seat in the cockpit.

The galley offers ample storage as well as an oven, microwave oven and coffee maker.

Falcon 2000 sn 203 interior galley guardian jet

 

Entertainment System

The aircraft’s entertainment system is top-rated, with the following highlights:

  • Baker Cabin Management System
  • Airshow 4000
  • Two 18” LCD Bulkhead Monitors
  • Three Plug-in Monitors
  • Three 230 V Outlets in Cabin

 Falcon 2000 sn 203 entertainment guardian jet

Communications

The aircraft’s communication/information system includes: 

  • Iridium Flight Phone System
  • Three Handsets: One in the cockpit and two in the cabin

Falcon 2000 sn 203 communications guardian jet

Exterior

The jet’s exterior was repainted in April 2009 by Aero Technique Espace (ATE) in Chateauroux, France.

The upper fuselage (upper wing) is white, with a dark-blue lower fuselage (lower wing) and blue accent stripes.

Falcon 2000 sn 203 exterior 2 guardian jet

Companies or private individuals seeking a Dassault Falcon Jet should give serious consideration to this well-maintained 2003 Falcon 2000. All offers and trades will be considered.

For more information

Download our aircraft specifications sheet (PDF)

View more images on our website

Watch a video of this airplane

Schedule a private showing, by calling Guardian Jet at +1-203-453-0800 or email us.

 

 

Posted in Aircraft For Sale, Business Aviation, Guardian Jet | Tagged , , | 1 Comment

How Long Does it Take to Complete an Aircraft Purchase?

In this 1-minute video, Guardian Jet’s Matt Walter explains the details behind the aircraft deal process. If you’re looking to purchase or sell a business jet, this is a brief overview.


Matt Walter:

Hi everyone. In this short video, we’re going to talk about the time it takes to get a deal done. It’s a very common question; we field it all the time.

The short answer is that it takes about 45 to 60 days to get a deal done.

The long answer is after you’ve selected an airplane, it takes about a week to negotiate the LOI (letter of intent) with the price and basic terms.

The LOI typically defines how many days you have to execute the sales agreement—about 10 to 14. So you add two weeks for the sales agreement negotiation onto the one week of the LOI, and you’re into the deal for three weeks.

After the sales agreement is executed, you move the plane to pre-buy. That takes a couple of days. You have the pre-buy input briefing and then the pre-buy begins.

The pre-buy will then take another two to four-weeks. This is broken up into the examination portion and the correction of the discrepancies. The examination will take about two weeks, after which the inspection facility will issue an inspection report, defining what needs to be done to the airplane to return it to service.

At that point, the buyer will have the ability to accept or reject the airplane. If they accept, their deposit goes non-refundable and the inspection facility will take about another two to three weeks to fix all the discrepancies.

After that, they’ve bought the airplane out, it’s returned to service, and allow a few more days to close, then the airplane is yours!

 

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Everything You Need to Know About Jet Sales: Part II

In this second half of our two-part series on jet sales, we’re offering up some valuable insights on this complex process.

In fact, there are a whole host of things you should consider and plan for before you list your business jet for sale.

Current Market Conditions

It’s likely a given that the most changeable and unpredictable aspect of jet sales involves the “context”—the environment—in which you plan to sell it.

So just what are the market conditions surrounding your efforts? Is demand for jets surging with just a few aircraft available on the market? Or do current circumstances find a glut of jets lingering for sale in a marketplace with, seemingly, just a few interested buyers?

It’s essential that you consider what is realistic for the market.

Keep in mind that people who buy airplanes are a lot like people who buy houses. Meaning that when they look at what’s out there, they don’t have the time or attention to go really deep into the nitty-gritty; they don’t weigh the subtleties of every product over those of all the others.

They’re not going to examine every last detail of every house on the market. Instead, they’re going to look at what’s available, narrow their choices that appear to fit their needs and interests (and pocketbook), and go deep on those.

Remember: if what you’re selling misses the cut on the original two or three your buyer has “gone deep” on, it’s likely due to pricing. Pricing is the biggest aspect of your sale that you can dictate and control.

Here at Guardian Jet, to help with this critically important factor of your sale, we do pricing memos based on our proprietary market surveys. These surveys, based on each make and model, give us a clear picture of current competition, where it’s based and what’s most desirable. For instance, G450 has had a lot of recent activity.

Using our survey, an aircraft owner can review the number of recent sales, most of which are in the sub-$15 million range. When we list a higher-priced jet—say in the $16-$18 million range—we still have to be aggressive, and come up with a marketing plan that addresses the market volatility. If you’re priced incorrectly, you’ll sit there forever. Your jet will turn stale on the market and become stigmatized.

Beyond this fundamental consideration, though, there are many other market-oriented issues that you need to review: realistic pricing expectations, market trending, recent sales, etc.

 

Aircraft Replacement Strategy

Optimizing the market conditions becomes tricky when you’re involved in a replacement strategy: that is, selling your jet aircraft to upgrade to another.

Going back to my example of a home buyer, the situation might be such that they have to sell their current house before they can purchase and move into another one. As we all know, it can make for some very nerve-wracking timing/pricing issues.

So, the question is, how do you work to your benefit the timing of your sale and replacement?

At Guardian Jet, we have clients who clearly cannot operate their business with one less airplane. Still, however, we recommend putting your aircraft on the market a little early so we can take the necessary time—perhaps a few months—to find a buyer.

Of course, that’s where pricing enters into the equation.

 

How to Price Your Aircraft

In our practice, we like to price jets such that they tend to sell between 60 and 120 days.

In that calculation, you have to assume that it’s going to take 45 days to execute the Letter of Intent (LOI) to closing. So that means we’re looking find a buyer within the first 45 days.

The pricing strategy to sell in 60 to 90 days—in a highly active and robust market— involves positioning your jet as one of the top five best values in the market. Note: If your aircraft is for sale in a market with slow turnover, it had better be priced so attractively that it’s the first one to sell.

So, you need to calculate what is your 60-, 90-, 180-day sell price. Just like a home seller who needs to get out of his or her house today, in order to make that happen, what’s it worth? In airplane markets, where your residual value is falling every quarter, the 60-day price is the best price you’re going to get.

Let me give you an example: let’s assume we have a situation in which markets are falling a million dollars per quarter. And let’s say your jet is priced at $12 million. That means that even if you sell $100K under retail in the 60-day time period (at $11,900,000), you will still be better off because you know that, in 90 days, the market conditions will dictate that the best price you’re going to get is $11 million.

As I said, at Guardian Jet, our strategy is to sell between 60 and 120 days. Of course, you have much more control if you’re willing and able to sell first and buy later. While there’s a lot of activity right now in the pre-owned market, there’s a lot to look at. You have more control over buying the best airplane for your needs.

 

How About “Buy First, Sell Later”?

We just ran through a scenario in which we needed to sell first and buy later, but how about the reverse?

Let’s say your business cannot tolerate the jet you’re replacing to leave your hangar before its replacement arrives because you need a certain number of airplanes at any given time.

One thing that can really help is if you happen to have a broker who’s working for both sides of the transaction.

Using one broker gives you the advantage of working both sides of the equation: if the time is advantageous for you to think about buying under the current market conditions, then  a broker can help you sell, too.

Using the same team can help you streamline the process and identify opportunities that save you money.

The team members (and that includes you) should be willing to listen to one another. As brokers, we’re pretty darned accurate most of the time. So, you might in fact be the smartest guy in the room, but it’s important to stay open-minded. Look at the information and data that hopefully have been provided to you, and use it.

Prepare for some flexibility in how or when you’re going to sell, and when your replacement jet is going to come. Unless you’re willing to trade (not get retail for your sale), you can count on the fact that your old plane is not going to leave when your new plane arrives. (We’d all love it if, as a new one is rolling into the hangar, an older one is taxiing out to go to pre-buy and close!)

But, generally speaking, you probably need to prepare yourself—and make sure you’re willing to accept the fact—that, for a while at least, you’re going to own one fewer or one more airplane. Of course, it will affect your budget, but will it cause hangar issue? Are you willing to charter?

Here are some things to consider:

  • Pre-buy Process – Once you accept an offer, your aircraft will leave your hangar and go through a “pre-buy” process, which can take three to four weeks. Similar to a home inspection, your aircraft will be offsite at an aircraft maintenance facility for inspection and the new owner will be able to review your logbooks. And, if all goes well, the aircraft will never return.
  • 1031 exchange If you conduct a “1031 exchange,” you can buy a replacement airplane first with the intent to sell your current jet within 180 days. But you’ll suffer tax consequences if you sell after the 180-day time-frame.

Interior Focus

Keep in mind that the data on what’s selling are really important (not just the hours flown, but the condition of the aircraft interior).

For example, if you’re selling an atypical interior or configuration, it might not appeal to the masses, so you might have to take a hit on price. Once you get past this thinking, it’s probably a deduction in value. Is it easier to fix before you sell?

An aircraft’s layout is very costly to alter. Everyone has their own idea of what the perfect layout is, but there are some standard, generally acceptable ones. We don’t recommend changing your aircraft’s layout before you sell it (you might not make it perfect), but you’ll have to take the interior layout into consideration when pricing the aircraft.

What is the market telling you? There are plenty of buyers willing to kill on price, and come out with the perfect airplane. There are certain buyers that want to do their own thing.

If you don’t plan to update a seven- or eight-year-old interior, you have to consider it in your pricing. New paint and a new interior make a plane sell faster. How important is selling quickly to you? What’s the market doing? At Guardian Jet, we believe there isn‘t one right answer. Each situation is unique so we help you make your decision using the data available at that time.

Your turn

In this and the last blog, I hope I’ve given you several things to ponder if you’re planning the sale of your aircraft. Fundamentally, selling your jet (or buying one) can never be a snap decision, and the factors influencing whether you come out on top of the transaction (or not) are as numerous as they are critical.

What’s been your experience with jet sales? What considerations might have arisen that surprised you, or what did you learn throughout the process? We’d love to hear from you in this regard, so please get in touch and share your experiences.

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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!

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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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