Aircraft Sales Insights

A Service of Dallas Jet International

Intelligently Using Technology to Sell Aircraft

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Everything Dallas Jet International does revolves around building relationships through the process of buying, selling and asset management.  These days, even building relationships involves intelligently using technology to sell aircraft.

Most purchasers use the Internet for research before making a purchase. We’ve mentioned in previous articles that prospective buyers are much more informed when they contact us.

We have a comprehensive system that builds a relationship online with several online “touchpoints” so that a customer for a particular aircraft has several opportunities to find what he is looking for, interact with us, and become comfortable with our business before he calls us on the telephone (or sends an email) to express interest in an aircraft.

using technology to sell aircraft

Forrester Research, March 2011


For our potential buyers (and sellers) convenience, we have a robust online presence.
 

A Comprehensive Online Marketing System

 

Of course, there are many choices available for listing an aircraft online.  Although DJI has many years of experience in aircraft sales, we are constantly learning about developments in sales and marketing research, and we work with strategic partners such as ABCI to keep up to date with changes in technology to facilitate the sales process.   We don’t pursue every new social media site or technique, but we carefully consider, and then invest, in proven, powerful channels.

Our website, www.DallasJet.com, is the center of our online marketing system. We updated the site in September, 2011 to use the latest technology to sell aircraft.

Your aircraft has a unique story. You have invested in maintenance and upgrades to keep it in top condition. You certainly don’t want to simply list it in a huge database of aircraft that displays “cookie cutter” listings of your aircraft along with hundreds of others.

DJI ensures that your aircraft is highlighted with an exclusive, customized listing – rather than being merely one among many of a particular aircraft type with a limited description and display options, DJI has invested in technology capable of “telling the story” of a unique aircraft with images and video, as well as words.

DJI Website listing

The DJI image gallery shows up to sixteen photos of a particular aircraft, and provides viewers with photo selection and expansion capability.

Images from our website are larger and higher resolution than most sites allow.

DJI also has the ability to feature video “tours” and floor plans on the listing page, and to customize the text of a listing to include as much information as needed to ensure buyers have a complete understanding of the value of your aircraft.

 

Blog – Aircraft Sales Insights.

 

Since January 2011, our site is supplemented by a blog with valuable biweekly articles such as this one.  These articles have been mentioned in leading publications such as the AviationWeek Business Aviation Blog.

 

People who read our articles see us as a trusted source of information on the aircraft market. This leads to conversations where we can introduce them to the ideal aircraft for their situation.

 

Articles include:

 

 

Google and Facebook Usage Skews Young and Affluent.

Both Google and Facebook attract young, affluent, and educated Americans in large numbers, according to results of a new USA Today/Gallup poll. Each counts more than half of those under 50, those with college degrees, and those making more than $90,000 a year among their users.
Men and women use Facebook equally, but men use Google more. Gallup data indicates men (42%) are about as likely as women (45%) to have a Facebook page. However, men (63%) are 12.5% more likely than women (56%) to say they visit Google in a given week. Overall, 40% more US adults say they use Google in a typical week (60%) than have a Facebook page (43%).

However, as mentioned above, both sites have substantially higher usage rates with younger, wealthier and educated Americans. For example, among 18-to-29-year-olds, 83% use Google in a typical week and 73% have a Facebook page. Those respective figures drop to 34% and 17% among Americans age 65 and older.

(Source – Marketing Charts, February 2011 – http://www.marketingcharts.com/direct/google-facebook-users-skew-young-affluent-and-educated-16173/)

 

We use the latest search engine optimization (SEO) technology and page coding techniques to optimize  each listing, not just our site as a whole.

 

We also list each aircraft on our popular Facebook page.

Dallas Jets International Facebook Listing

 

DJI also sends a biweekly email newsletter that includes an introduction or excerpt from a blog article written on a topic of interest to the business aviation market.

 

We feature your aircraft for sale on Facebook and Twitter, two channels that expand the reach of our marketing efforts and interact with potential buyers.

 

Dallas Jet International Listing on Twitter

 

DJI doesn’t put faith in mere numbers of Twitter followers, but we’ve found that respected aviation and luxury market Twitter indices such as GlobalAir Business Aviation and PriveAccess include Dallas Jet International’s Twitter streams among their sources of information.

 

Biweekly Email Newsletter

We feature your aircraft in a popular emailed newsletter that we send to those people who have requested it.

 

Unlike purchased “blasts” which have very low open rates, the DJI emailed newsletter includes a mix of articles and aircraft listings.  Each newsletter is personalized, and includes a synopsis of one of our blog articles, as well as the aircraft listings.

Dallas Jet International Email Newsletter

We use sophisticated technology to track the number of “opens” and “clicks” for each email. Detailed reports enable us to pinpoint (and follow up with) buyers interested in particular aircraft types.

 

Being Where We Need to Be, In-Person

 

All of this technology counts for nothing without the sales expertise and know-how to take the sale to the next step.  We are on-site, in person, for every inspection, test flight and closing.

 

Our clients and customers come back to us many times to buy, sell, trade or manage their aircraft as their needs change over the years, because we place the emphasis on the long-term relationship rather than the short-term transaction.

 

Technology doesn’t change our priorities or our principles; it merely facilitates the process of finding the right people for the right aircraft.  It also makes it easier for us to spend our time where it is the most important – building trusted relationships with our clients.

Brad Harris

Brad Harris is founder and CEO of Dallas Jet International. Mr. Harris holds a Bachelor of Science Degree in Professional Aviation and Airway Science and a Masters Degree in human resources from Louisiana Tech University. Mr. Harris entered the aviation industry in 1989 as a corporate pilot for a Fortune 500 corporation. In 1993, he started a successful aircraft leasing and renting company which expanded to a successful aircraft management company in 1995. In 1993, Mr. Harris began his aircraft sales career and, in a very rapid fashion, became one of the most highly respected aircraft brokers in the World. In 1998, Mr. Harris started an aircraft sales, consulting, and brokerage company that is known today as Dallas Jet International. Mr. Harris is a current airline transport pilot who is type-rated in ten (10) different jet aircraft including the Gulfstream 550, 450, 350, GV, GIV, GIII, GII, Hawker 125, Falcon 10, Citation 550/500, Beechjet 400, 400A, Lockheed Jetstar II, Diamond Jet and King Air 300/350. In the many different aircraft markets, Mr. Harris parlays extensive hands-on knowledge and experience into clear results for his clientele. In addition to Mr. Harris maintaining a career focus on aircraft sales, he also has extensive experience in aviation consulting and management. Included on his client list are several clients for whom Mr. Harris and his firm have set up flight departments, consisting of aircraft crewing, aircraft management, aircraft maintenance and aircraft operating budgets. He and the firm are currently managing a Gulfstream V, a Gulfstream IV, a Falcon 50, a Citation II, a Citation ISP, a Citation Mustang, a Hawker 400XP, and two King Air 350’s.What most people do not know about Mr. Harris is that he possesses significant entrepreneurial experience in real estate and commercial insurance. This business experience, combined with his unparalleled experience in all facets of corporate aviation, has been the foundation of success for Dallas Jet International and its clients.

Buyer’s Market? How to get a read on a supply levels within specific aircraft markets

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Does it seem like “a lot” of aircraft of a particular type are for sale? It depends on the size of the fleet to begin with.

By Shawn Dinning

In a previous blog post, I went through various aircraft markets and compared snapshots of those markets 3 years ago to snapshots of those same markets today. In all cases, aircraft markets (and associated aircraft values) have fallen dramatically, in some cases 50 to 60%.

What I would like to do now is take a look at the markets today from a slightly different perspective – “Percentage of aircraft fleet for sale”.

Everybody is seemingly in tune with how many aircraft are available for sale in a given market. For example, if I go to my database and research reports of aircraft, and extract all Citation Excels available for sale, I see a total of 26 aircraft available for sale.

To diverge from my topic for a moment, the database and research that DJI uses is much more robust than any retail website that aircraft buyers might be familiar with. If I go to the industry’s most popular retail website for aircraft listings, there are 13 Citation Excel listed for sale. So, by tapping into a broker’s resources and databases, a prospective buyer would have access to 100% more airplanes in this particular market! Like in any market in any type of product, there is a small portion of the 26 Excels that isn’t truly for sale, but you get my point.

So, 26 Excels sounds like a lot of airplanes for sale and a lot to choose from. It would suggest that it is a “Buyer’s Market”. So, now you know how many Excels are available for sale, but do you know how many have been produced and are in operation today? Amazingly, there are 369 Citation Excels in operation today.  This large number is due to a relatively long and stable production run of the aircraft, in addition to widespread marketplace acceptance of the Excel. This paints a much more telling picture of the state of the Citation Excel market. Yes, 26 airplanes is a sizable number of aircraft. However, you must process that number in the context of the entire fleet, which consists of 369. Percentage-wise, only 7% of all Citation Excels in operation are available for sale. This is not that many. This comes back to the supply and demand basics that we all know. While 26 airplanes is a notable supply number in absolute terms, it is not that sizable in the relative perspective.

It is this relative perspective that seasoned aircraft brokers, lenders, and appraisers use (along with other statistical data) to gauge the health and momentum of the market.  All things being equal, a broad rule of thumb to use is that 10% is a good line of demarcation between a slow market and a “heating” market. So, the Excel market is not as over-supplied as one would think. There is clearly no rationale for prices to drop further in this market, if you’re looking at supply alone. The constant stream of Citation Excel transactions at today’s prices is proof of a limited supply and stable, steady demand

Compare this market to the Hawker 800XP market. There are 52 Hawker 800XP aircraft for sale, in the context of 423 in operation. This equates to 12.3% of the fleet for sale. As any Hawker 800XP seller knows, the market has a high relative supply, and thus prices have not found a way to completely stabilize.  In order for prices to truly stabilize, supply/inventory must be sold to effect a lower supply percentage, or demand must increase on the available supply.

Everybody has heard that the 10 years and younger, large-cabin market has shown signs of increasing momentum this year. DJI conducts a lot of business in this realm. The percentage of Fleet for Sale for Gulfstream V aircraft? 5.7%. Data does not lie.

Below is a summary of fleet percentages available for sale.  As you go through this list, try and correlate your perception of that particular market’s momentum with the percentages.   You will notice a strong correlation.

  • Gulfstream V (GV) – 5.7%
  • Gulfstream G450 – 4.2%
  • Gulfstream G550 – 3.9%
  • Gulfstream GIV – 19.9%
  • Falcon 900EX EASy – 8.5%
  • Falcon 2000EX EASy – 12.5%
  • Falcon 50 – 21.2%
  • Bombardier Global Express XRS – 3.4%
  • Bombardier Challenger 300 – 6%
  • Bombardier Challenger 604 – 14.1%
  • Bombardier Lear 60 – 15.3%
  • Bombardier Lear 60XR – 16.5%
  • Hawker 800XP – 12.3%
  • Cessna Citation X – 6.3%
  • Cessna Citation Excel – 7%
  • Cessna Citation XLS – 6.1%
  • Cessna Citation CJ3 – 5.8%
  • Embraer Legacy 600 – 17.2%
  • Embraer Phenom 100 – 11.5%

While certainly not the only indicator we use to quantify a particular aircraft market, it is a great indicator that all aircraft sellers and buyers should be aware of. These numbers change monthly, if not weekly. Please feel free to contact me to further discuss these types of valuable data sets. It is my ultimate goal to help sellers and buyers have the intelligence to make smart decisions in the transacting of their high-value aircraft.

 

Shawn Dinning, Director of Sales & Acquisitions

Mr. Dinning acquired his formal education at the United States Air Force Academy in Colorado Springs, Colorado, in the areas of Operations Research and Management Science and also holds a degree in Aeronautical Science from Embry-Riddle Aeronautical University. Mr. Dinning brings 16 years of aviation experience from a variety of aviation disciplines, including FAR 91, FAR 121, FAR 135, defense, and shared ownership sectors. A former full-time professional pilot, Mr. Dinning holds a current Airline Transport Pilot (ATP) certificate, and is type-rated in the Gulfstream V/G550/G500/G450/G400/G350/G300, Bombardier CRJ-200, and Citation 510 Mustang. He has logged over 5500 flight hours, with 3500 of those hours in corporate turbine aircraft. Mr. Dinning has been consulted in publications such as Business & Commercial Aviation on various issues related to turbine aircraft transactions.

Mr. Dinning brings to Dallas Jet International a rare and highly valuable skill set of operational and business acumen, and has become a leader in the professional marketing and procurement of corporate turbine aircraft all around the globe. He also specializes in aircraft mission analysis, aircraft valuation, and cash flow and operating cost analysis for private aircraft owners. Mr. Dinning has a track record of successful transactions that is well known amongst his clients and colleagues. His reputation for intelligent and meticulous management of aircraft transactions have made him one of the most respected aircraft brokers in the industry.