It’s difficult to know what to expect with the airlines. When cabin attendants aren’t jumping out of emergency exits, their employers are buying, selling, merging with other airlines and adding ever more outrageous surcharges. You pay for luggage, food and a premium for legroom. There’s plenty of uncertainty with commercial travel but I know this—the more difficult commercial becomes, the easier it is to justify private jet charter for you, your family and colleagues. With space in mind, I’d recommend the Falcon 2000 LX. With its impressive performance and beautifully appointed interior it’s an increasingly popular option with our clients. Take a look at TWC’s luxurious Falcon 2000LX and let me know if you want to charter this aircraft.

However, a smooth and successful aircraft transaction is the result of a process during which a lot of things can potentially go wrong. Very wrong. This is why many companies and individuals employ an aircraft broker to manage the process for them. In this article I’ll explore the benefits and potential pitfalls of using a broker, and offer some guidance on how to find the right one for you.

Barbers Need A License, But Brokers Don’t
As a starting point, let’s make a comparison with the real estate industry, which also involves the sale and purchase of high-value assets. To get a real estate license in California, where the average home sells for around $300,000, you must take classes and pass an exam, then work for a licensed broker who will supervise your transactions. They will also take your fingerprints for good measure. And if you want to upgrade to a real estate broker’s license, you need even more training, as well as additional insurance policies to protect the consumer.

Contrast this with business aviation, where a jet can cost anywhere from about $2 million to $50 million or more. You would think that the rules would be even stricter than for real estate — yet you would be wrong. In fact, to be an aviation broker, all you need is a phone and an email address. That’s right: no training, no license, no government oversight. Talk about buyer beware!

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The next NBAA Regional Event will be held August 18th in Chicago, Illinois.  TWC Aviation will be in attendence.  If you would like more information or to make an appointment with a TWC Aviation representative to attend the Chicago event, contact Scott Cuthsall via email at scutshall@twcaviation.com

Private Jet Inventories Are Stabilizing

The recent economic downturn has been trying on the economy as a whole, but particularly on the used aircraft market. As the global economy is continuing its recovery, global issues are slowing buyers’ enthusiasm about returning to aircraft ownership. In the years leading up to the economic downturn much emphasis was put on the fast-rising emerging economies of Brazil, Russia, India and China. Today focus is now put on the PIIGS(Portugal, Ireland, Italy, Greece and Spain) which all have weak economies riddled with high debt. While the ups and downs of the global economy may not have a long-term effect on our economy as a whole, these fluctuations are making the used business jet market volatile.  This volatility, driven by a lack of buyers’ confidence, is scaring away jet buyers who are afraid the global economic downturn could spread to the US economy.

The used business jet market is fast becoming a buyers market. Many prospective aircraft buyers are asking me, ‘Will the prices keep dropping?’ My response to them is that the current used aircraft market is unlike we have ever seen it before. Values of some aircraft have dropped over 50% in two years. I think we have hit our bottom. Even

Gulfstream G450 TWC Aviation Recently Sold

if prices continued to drop another 20% the amount of the drop in dollar terms would be much less. In the view of many business owners, fear has subsided. The result is that the value of private jets have stabilized. Some small segments of the used jet market as still finding their footing, but the market as a whole has been stable for the last 6 months.

Going forward I believe the used aircraft market will continue to remain stable. The driving factor in this economy is fear, and the buyers that can push through the fear and acquire a used aircraft will continue to benefit from the never before seen deals this marketplace has to offer.

For more information on the used aircraft market, or for a cost analysis on any used aircraft contact the Sales and Acquisitions team at TWC Aviation.