Aircraft Sales Insights

A Service of Dallas Jet International

“Trading In” Your Airplane –An Often Overlooked Option

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While trading in an automobile is a common transaction, many airplane owners don’t often consider the possibility of an airplane trade.

This could be because most brokers don’t have the economies of scale to effectively manage two simultaneous transactions, usually on different aircraft types.

An airplane trade can be a great option if your company outgrown the size or mission profile of your current aircraft?

Has your company outgrown the size or mission profile of your current aircraft? Consider trading it in!

DJI has the economies of scale to make an aircraft trade a simple, convenient and efficient option that meets your transportation needs and suits your financial situation.

Even in the case of complex trades, where an owner trades a significantly older aircraft for a newer one, a smaller aircraft for a larger one, or vice versa; we can provide the range of services seamlessly.

Dallas Jet International (DJI) specializes in the purchase and sale of all of the following:

  • Factory new aircraft (line positions)
  • Pre-owned aircraft as old as mid-1980s models that need work to bring them to market condition.
  • Large-cabin aircraft as large as the Boeing Business Jet (BBJ), Gulfstream G450, G550, G650, and Bombardier Challenger 604/605 and Globals.
  • Small and Mid-size jets such as the Learjet, Some Cessna Citations, Dassault  Falcon’s , Embraer Legacy and Phenom, and Hawker’s
  • Turbo-prop aircraft such as the Beechcraft King Air

Aircraft owners from around the world value DJI’s unique ability to buy their airplanes for resale inventory, saving owners the delay of retail marketing. In over 90% of instances, upon receipt of all specification / maintenance reports on a given airplane, DJI provides an offer within 48 hours to buy that aircraft, subject to normal transactional guidelines.

DJI is what is known as a “stocking dealer.”  We are one of the largest bidders / buyers of aircraft in the industry.

We also have significant leverage with the aircraft manufacturers (OEMs) because of our position as a stocking dealer. We have access to factory new aircraft, trade-ins and other aircraft. As an example, when Bombardier takes a Gulfstream 450 in trade, they call us for an inventory bid.

We have an extensive network of maintenance and repair facilities that can replace an engine, detail and refurbish the interior, upgrade avionics and exterior paint – whatever is needed to bring the aircraft to a competitive market position more cost-effectively than many owners can do themselves, resulting in a significant savings of cost and effort.

Example of an Airplane Trade

An example of this – a financial institution owned a Gulfstream IVSP that needed 2.5 million worth of upgrades within the next in 5-6 months.  The corporation followed the very common practice of having one account for buying and selling aircraft and another account for repair and maintenance, and a tax situation that required that one account cannot reimburse the other.   They were not in a position to pay for the work. DJI was able to take this aircraft in trade immediately, taking the aircraft off the books quickly to meet a financial deadline.

In turn, this beautiful Gulfstream IVSP may be perfect for a client trading in a Gulfstream 200 that has a growing company and needs to upgrade to a larger aircraft.

There are many instances where trade airplane makes sense for everyone.

 

Brad Harris

FOUNDER AND CEO
As founder of Dallas Jet International, Mr. Harris has established an esteemed 23-year aviation career.  He holds of Bachelor of Science Degree in Professional Aviation and Airway Science and and a Masters Degree in Industrial Organization Psychology from Louisiana Tech University.   Mr. Harris entered the aviation industry in 1992 as a corporate pilot for a Fortune 500 corporation and soon started a successful aircraft leasing and renting company.

In 1993, Mr. Harris began his aircraft sales career and became one of the most highly respected aircraft brokers in the world. In 2002, Dallas Jet International began offering aircraft sales, consulting, and brokerage services. 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, Falcon, Citation, Beechjet, Lockheed JetStar II, Diamond Jet and King Air 300 / 350. Mr. Harris parlays extensive hands-­on knowledge and experience into clear results for his clientele. His firm has set up flight departments, consisting of aircraft crewing, aircraft management, aircraft maintenance and aircraft operating budgets, for several clients. Mr. Harris also possesses significant entrepreneurial experience in real estate and commercial insurance. This knowledge, combined with unparalleled experience in all facets of corporate aviation, is the foundation of success for Dallas Jet International. He often speaks to groups of aviation professionals, publishes monthly blog articles and sits on the Advisory Board for GE Capital Corporate Aircraft and Finance, and CAE Simulflite. He currently sits on the board of Directors at NARA (National Aircraft Resale Association) as President.

Coordinated Aircraft Ownership Services – The Virtual Tour of DJI’s New Offices at Aviation Place –

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To simplify the aircraft ownership experience, Dallas Jet International (DJI), together with several other aviation-related companies, has moved to a new 18,000 square foot building  in Colleyville Texas with several other aviation-related businesses.

 Aircraft Ownership Solutions at Aviation Place Aviation Place 2

 

There is a natural synergy that happens when companies share a building – especially one that has some common facilities like meeting areas.  Simply sharing a cup of coffee can lead to a productive working relationship or the solution to a complex problem.

“When a client has a question about helicopters, for example, we can simply walk down the hall with them and have a conversation with the experts on that topic.”

Here are some snapshots from the construction project:

 

Aircraft ownership is a complex experience that often requires expert assistance in a variety of fields. DJI has a long history of building trusted relationships among an extensive network of companies in aviation, finance, law, accounting, and other specialties that can assist their clients.

Our new address:

Dallas Jet International
97 Village Lane
Suite 200
Colleyville, TX 76034

Phone and fax are unchanged.
Office Phone: (817) 520-4009
Fax: (817) 520-4016

You can still find Dallas Jet  at these existing locations as well:

100 Crescent Court
Suite 700
Dallas, Texas 75201
Office Phone: (214) 459-3303
Fax: (214) 291-5425

or

2221 Alliance Boulevard
Suite 600
Fort Worth, TX 76177

or

7363 Cedar Springs Road
Dallas, TX 75235

 

 

 

A Day in the Life of an Aircraft Owner

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Any aircraft owner will tell you that the primary motivation for aircraft ownership is the ability to do more in less time.

One of our clients, an oil and gas professional in the United States, recently had a day like this:

  • Left Fort Worth in the morning for a work site in Williston, ND.
  • Attended meetings in Bismarck, ND.
  • Changed plans when the last meeting at Bismarck was cancelled, used the time to stop in to resolve a problem in Oklahoma City.
  • Arrived home in Fort Worth in time for dinner with the family.
Day in the Life of an Aircraft Owner - Click to enlarge the map

Day in the Life of an Airplane Owner – Click to enlarge the map

Benefits to the Aircraft Owner

Besides the unequaled schedule flexibility that aircraft ownership provides, there are other benefits that may not be as obvious but can be equally valuable.

  • The airplane becomes a mobile office, complete with needed electronics, communications equipment, a luxurious conference room, and a secured place to keep files and equipment.
  • You can collaborate with your flight crew to safely adapt to changing business and weather situations.  A resourceful corporate pilot has more flexibility than airline pilots, can find ways to get you where you need to be, getting around weather and high traffic situations.
  • The crew can be vetted and have confidentiality agreements in place.  The only people on board are those that you approve.
  • Luggage and equipment can be left on the airplane so you’re ready to go at a moment’s notice. Many aircraft owners keep business and personal items on board for the flexibility to stay an extra day (or several days) if they encounter a situation that requires it.
  • Luggage can be accessed in flight (rather than checked or shipped.)

You can certainly put a price on aircraft ownership. We specialize in creating cost-effective solutions for your specific needs.

You cannot put a price on time, flexibility, confidentiality and safety.

Give us a call today at 817-328-2900 and let’s talk about how aircraft ownership can simplify your business life.

Brad Harris

FOUNDER AND CEO, Dallas Jet International
As founder of Dallas Jet International, Mr. Harris has established an esteemed 23-year aviation career.  He holds of Bachelor of Science Degree in Professional Aviation and Airway Science and and a Masters Degree in Industrial Organization Psychology from Louisiana Tech University.   Mr. Harris entered the aviation industry in 1992 as a corporate pilot for a Fortune 500 corporation and soon started a successful aircraft leasing and renting company.

In 1993, Mr. Harris began his aircraft sales career and became one of the most highly respected aircraft brokers in the world. In 2002, Dallas Jet International began offering aircraft sales, consulting, and brokerage services. 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, Falcon, Citation, Beechjet, Lockheed JetStar II, Diamond Jet and King Air 300 / 350. Mr. Harris parlays extensive hands-­on knowledge and experience into clear results for his clientele. His firm has set up flight departments, consisting of aircraft crewing, aircraft management, aircraft maintenance and aircraft operating budgets, for several clients. Mr. Harris also possesses significant entrepreneurial experience in real estate and commercial insurance. This knowledge, combined with unparalleled experience in all facets of corporate aviation, is the foundation of success for Dallas Jet International. He often speaks to groups of aviation professionals, publishes monthly blog articles and sits on the Advisory Board for GE Capital Corporate Aircraft and Finance, and CAE Simulflite. He currently sits on the board of Directors at NARA (National Aircraft Resale Association) as Chairman.

Why You Need Professional Representation for your Aircraft Transaction

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Why you need professional representation for your aircraft transactionDallas Jet International clients are experienced, intelligent businesspeople.  They have many years of significant and successful experience buying and selling businesses, real estate, and other vehicles.

So why do they turn to DJI  instead of simply handling their aviation transaction themselves?

Among the many advantages we bring to these smart, sophisticated clients are our proven process, access to information, international experience, and our network of connections. Which of these is most important varies depending on the client, but every one of them has found that working with DJI provides them with more profitable outcomes and few, (if any!)  Setbacks or headaches.

Honestly, we have never had professional representation that compares to DJI. We’ve hired agents and consultants to negotiate acquisitions of items such as yachts, property and luxury cars, and none of those compare to the DJI experience. They have extreme market intelligence… helping us decide which airplane is the best, out of a myriad of choices. They also have detailed knowledge of every facet. DJI even assisted us with hiring our pilots and acquiring the aircraft insurance that fit our specific needs.

– CF Capital

 

A Proven Process for the Entire Aircraft Transaction

Each step in this diagram is actually a complete process in itself. As an example, the Closing Process (Step 7) involves a 100-­step checklist.  The process is outlined  in our Overview of an Aircraft Purchase.

 Access to Information

The best information results in the most optimal solutions for every situation.  The best negotiators in the world negotiate with an information advantage. DJI provides that information advantage.  We subscribe to proprietary information services and study the rapidly changing aviation marketplace every day.

International Experience

The word “international” in the company’s logo is not just a brand name, it is an identity. While the United States still has more business aircraft than any other country, a large number of aircraft are being located in countries throughout the world. Dallas Jet International has bought and sold aircraft to and from just about every region of the globe. Each region and country has its own regulations, aircraft avionics requirements, aircraft registries, and import/export processes. Because DJI has been dealing in the international marketplace for numerous years, they can guide clients through the process with ease. This international experience has spurred a growth in clients from all over the world using DJI as their aircraft broker, consultant and representative.

 

Do not use a broker who limits the purchase or sale of your aircraft to one region of the world; with DJI, the entire globe is your marketplace.

Network of Connections

The best deals are often given to the buyer that is first in line. Through relationships and reputation, DJI will always put their clients in position for the best value or aircraft. Through our vast network of connections in the industry, DJI is also in a position to know about aircraft that are “off market,” or not advertised.  Some of the most valuable transactions taking place in the world today are conducted confidentially through brokers experienced in a particular industry. In the aviation marketplace, certain sellers cannot advertise their aircraft due to competitive pressures, public perception, or privacy / personal security issues. In these cases, the airplane is sold through tight broker networks, of which DJI is an integral member. DJI’s buyers benefit from DJI’s knowledge of the off-­market aircraft. They often represent the best values available. As with any transaction, the more options available to a buyer, the better negotiating position the buyer has. With DJI’s off-market knowledge, our clients have access to 10 to 30% more aircraft than they would have on public websites and classifieds.

Smart Businesspeople Rely on DJI’s Professional Representation

We take our fiduciary responsibility very seriously.  Clients rely on DJI’s proven process to discover and resolve issues early, and they appreciate the advantages of our access to information and network of connections.  DJI understands the demands of business and the expectations of successful people. Their success strategy is to build a lifetime relationship with each client; so they work diligently and use their depth of experience to ensure the best possible outcome in every scenario – not just the current transaction.

National Aircraft Resellers Association Elects Brad Harris of Dallas Jet International as Chairman

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NARA elects Brad Harris of Dallas Jet International as ChairmanNARA (National Aircraft Resale Association) 

Introduces Newly Elected Officers to Serve in 2013

 

The National Aircraft Resale Association (NARA) is pleased to introduce its new officers, who will serve terms in 2013. Officers were elected at the association’s annual membership meeting held in Orlando in October.

 

Outgoing NARA Chairman Paul Kirby, Managing Partner of Cerretani Aviation, LLC, says, “Integrity, knowledge and responsiveness are keys to surviving in a tough market. As an association, NARA’s members have banded together over the last several years and worked very hard to provide clients with the best possible solutions to their aircraft ownership needs. It has been a pleasure to serve the NARA membership as Chairman for the past year.”

 

“Over this time,” Kirby continues, “we have added a dozen new members, improved the content and networking opportunities at our spring and fall meetings, started an educational blog series at our website (www.nara-dealers.com/blog_nara) and expanded our Code of Ethics to better recognize the importance and value of NARA’s Associate Members. I am pleased that NARA continues to provide members with excellent networking opportunities, access to an immense collective knowledge and distinguishing ethical standards. NARA is well-positioned to continue to build on its success in 2013.”

 

Members elected to serve on NARA’s 2013 Board of Directors are:

 

Chairman:                          Brad Harris, Dallas Jet International, LP

Treasurer:                          Nick Schneider, Global Wings, LLC

Secretary:                           Jay Gantt, Gantt Aviation

Board Members:                Ben Murray, General Aviation Services

Paul Kirby,                           Cerretani Aviation, LLC

 

Members were also elected to serve on the organization’s Associate Member Advisory Council.  Associate Members elected to serve for 2013 are:

 

Chairman:                          Louis Seno, Jet Support Services, Inc. (JSSI)

1st Vice Chairman:             Tracey L. Cheek, Aircraft Title Insurance Agency

2nd Vice Chairman:            Anthony Kioussis, Asset Insight, Inc.

Secretary:                           Wayne Starling, PNC Aviation Finance

 

“I am looking forward to representing NARA as Chairman next year,” says Brad Harris, President and CEO of Dallas Jet International, LP. “With 78 member companies, all of whom are the best in their fields and are committed to NARA’s high ethical standards, NARA has the foremost collection of aircraft transaction and operation expertise in the industry. I am excited about continuing to make NARA membership more valuable for our members and our respective clients in the coming year.”

 

NARA is a professional trade association of businesses organized to promote the growth and public understanding of the aircraft resale industry. Its members abide by a 14-point Code of Ethics that provide standards of business conduct regarding aircraft transactions. For more information about NARA, its members and its code of ethics, visit the NARA website at www.nara-dealers.com or call Devri Pitts, Independent Association Director, at 866-284-4744.

 

 

P.O. Box 3860, Grapevine, TX 76099 ▪ Phone 866-284-4744 ▪ Fax 866-447-1777

www.nara-dealers.com  nara@nara-dealers.com

Is it Time to Upgrade Your Airplane? Jet Sales Analysis

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Is it cost effective to sell your older, less expensive aircraft and upgrade to a newer aircraft with a higher acquisition cost, but with a lower operating cost? Our jet sales analysis may reveal that it is.

At some point, the acquisition cost of a new aircraft can be offset by operational costs that are less than your older, less efficient airplane in our jet sales analysis

Depending on the situation, yes!

A real-world example can be very helpful in understanding the importance of balancing acquisition cost with operational cost.

A client approached us with this very question several months ago.  He owns a 1990 Bombardier Challenger 601 for the last 10 years. The operational costs seemed high, and the aircraft was not serving his needs as well as it used to.

Jet Sales Analysis

DJI performed an analysis of his current aircraft value and recent sales of comparable aircraft.  We also performed our usual process for analyzing his current needs, including, among many other factors:

  • Budget for the acquisition
  • Annual budget for operational costs
  • Usual range of travel
  • Passengers/Luggage
  • Conditions of typical destinations (high, hot, short runways, other considerations)
  • City Pairs
  • Domestic/International travel needs
  • Cabin and amenity preferences and requirements

Based on our client’s needs, we provided a short list including a (newer) Bombardier Challenger 300, a Citation Sovereign, or a Falcon 2000.  We provided information and discussed the particulars, and decided upon a Citation Sovereign as the ideal solution for their needs.

Together, we determined that a Citation Sovereign was the ideal aircraft. Our client requested that DJI begin looking for on- and off-market Citation Sovereigns available to acquire.

Here’s a simplified breakdown of the numbers:

Selling our clients’ old Challenger 601

 Gained $3.5 million

Purchase price of the new Citation Sovereign

Spent $10 million

Capital Outlay

Additional  $6.5 million

So far, it certainly seems as though our client is spending considerably more money.  But the “rest of the story,” as Paul Harvey used to put it, is this:

Our client flies approximately 300 hours per year.  At that rate, they save about $720,000.00 per year in operating costs.

Operating cost per hour

Hours Per Year

Operating Costs per year

1990 Challenger 601

$4,400

x 300

$1,320,000

2007 Citation Sovereign

$2,000

x 300

$600,000

Annual  Savings

 

 

 Save $720,000/year

If our client keeps the airplane for nine years, he has saved more than enough to cover the additional outlay in acquisition cost, including the interest or opportunity cost of using that money.

In addition to the cost savings realized over time, our client also enjoys many benefits of an aircraft that is seventeen years newer:

  • Faster, easier and less frequent required maintenance
  • Better dispatch reliability
  • A safer, more reliable airplane
  • More advanced avionics
  • A much newer, more luxurious interior

As always, it’s our objective to find the best outcome for each client’s individual situation. A newer, more expensive airplane may NOT be the best choice for you.  But if you’re flying an older aircraft, you fly a lot, and you find that your airplane is becoming less reliable and potentially facing expensive repairs, please give us a call and let’s talk about your situation and options.

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 jet 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.

Off-Market Aircraft – An Overlooked Source of Win-Win Jet Sales Transactions

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Aircraft  that are publicly listed (like this beautiful Gulfstream IV) represent a small percentage of the aircraft available to acquire.

Airplanes that are publicly listed (like this beautiful Gulfstream IV) represent a small percentage of the aircraft available to acquire.

Not all aircraft are marketed or traded on the open market. This is common in many industries outside of aviation. Some of the most valuable transactions taking place in the world today are conducted confidentially for off-market aircraft through brokers experienced in a particular industry.

Why Off-Market Aircraft can be the best deal?

In the aviation marketplace, certain sellers cannot advertise their aircraft due to competitive pressures, public perception, or privacy / personal security issues. In these cases, the airplane is sold through tight broker networks, of which DJI is a part. DJI’s buyers benefit from DJI’s knowledge of the off-­market aircraft. They often represent the best values available.
As with any type of transaction, the more options available to a buyer, the better negotiating position the buyer has. With DJI’s off-market knowledge, our clients have access to 10 to 30% more aircraft than they would have on public websites and classifieds.

Brad Harris

FOUNDER AND CEO
As founder of Dallas Jet International, Mr. Harris has established an esteemed 23-year aviation career.  He holds of Bachelor of Science Degree in Professional Aviation and Airway Science and and a Masters Degree in INdustrial Organization Psychology from Louisiana Tech University.   Mr. Harris entered the aviation industry in 1992 as a corporate pilot for a Fortune 500 corporation and soon started a successful aircraft leasing and renting company.

In 1993, Mr. Harris began his aircraft sales career and became one of the most highly respected aircraft brokers in the world. In 2002, Dallas Jet International began offering aircraft sales, consulting, and brokerage services. 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, Falcon, Citation, Beechjet, Lockheed JetStar II, Diamond Jet and King Air 300 / 350. Mr. Harris parlays extensive hands-­on knowledge and experience into clear results for his clientele. His firm has set up flight departments, consisting of aircraft crewing, aircraft management, aircraft maintenance and aircraft operating budgets, for several clients. Mr. Harris also possesses significant entrepreneurial experience in real estate and commercial insurance. This knowledge, combined with unparalleled experience in all facets of corporate aviation, is the foundation of success for Dallas Jet International. He often speaks to groups of aviation professionals, publishes monthly blog articles and sits on the Advisory Board for GE Capital Corporate Aircraft and Finance, and CAE Simulflite. He currently sits on the board of Directors at NARA (National Aircraft Resale Association) as President.

Operational Costs – An Often Underestimated Factor in Aircraft Selection

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Operating costs are a key factor in determining the best aircraft for your needs.

Operating costs are a key factor in determining the best aircraft for your needs. This Hawker 850XP has moderate estimated operating costs.

When DJI consults with a client about the ideal aircraft, we need to thoroughly understand the clients’ transportation needs in order to help them select the best aircraft.

Not surprisingly, acquisition cost is usually the most important factor. Of course, major considerations also include speed, range, cabin size and dispatch reliability of the aircraft.

But what sometimes surprises clients is the difference that operating costs can make to the total financial picture.

In some cases, operational costs can have such a significant impact on the total investment profile of an airplane that it becomes a financially sound decision to purchase a newer, larger, or otherwise more expensive plane that has lower operating costs.  We will illustrate this as a case study in a future article.

What follows is a discussion of the key factors we consider as we guide our customers through the aircraft selection process.

Operational Costs

Operational costs include all of the expenses required to own and operate the airplane, including fuel, pilots and crew, scheduled and unscheduled maintenance, hangar, insurance and many other factors.

Operational costs are further divided into variable costs and fixed annual costs.

Understanding Variable Costs

Variable costs are linked to the number of hours the aircraft is flown.

Fuel is the largest operational expense.  Just as smaller, lighter cars get better fuel economy than large SUVs and RVs; smaller, lighter aircraft are usually more fuel efficient.  Smaller, simpler airplanes may have lower crew and maintenance requirements. Landing and parking expenses are also lower for smaller airplanes.

The table below lists the estimated cost per hour for five popular business jets.

  Citation CJ3 Hawker 850XP Challenger 300 Falcon 2000EX Gulfstream 550
Total variable cost per hour

$1,607.52

$2,695.24

$2,894.25

$3,137.12

$4,272.14

Cost per Nautical Mile

$4.20

$6.61

$6.91

$7.40

$10.08

Cost data in this chart is intended as a benchmark for illustrative purposes only.

Understanding Annual Fixed Costs

Whether the aircraft is flown or not, annual fixed costs accrue.  Crew salaries, required training costs, hangar, insurance, avionics software updates, and many other expenses must be paid to keep the airplane ready to fly when you need it.

While some maintenance requirements are based on the number of hours flown, there are also maintenance requirements that are based on the age of the aircraft.   These time-based maintenance items are counted as annual fixed costs.

The chart below illustrates the difference in annual fixed costs across these airplanes.

  Citation CJ3 Hawker 850XP Challenger 300 Falcon 2000EX Gulfstream 550
Total Fixed Costs

$336,951

$430,570

$703,552

$715,545

$958,478

Cost data in this chart is intended as a benchmark for illustrative purposes only.

The Best Solution for You

Of course your situation is unique.  Most of our clients have a budget for their transportation needs, and finding the right balance of variable and fixed annual costs is just as important as the acquisition cost.  In fact, the right mix of operational costs can be even more important to a successful ownership experience because they reoccur over time.

At DJI, we understand that it is our responsibility to ensure that you understand all of the factors that are important to you, including the variable and annual fixed operational costs. Our goal is to ensure your airplane buying experience is a positive one.

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.

Advantages and Complexities of Hiring & Managing Your Own Flight Crew

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One of the benefits of owning an aircraft is the opportunity to select the flight crew and cabin staff for your aircraft.

“As a financial services company, we thoroughly vet all of our employees. Having our own aircraft allows us to extend that due diligence to the pilots and crew. We can confidently hold strategy meetings, discuss sensitive business, and have confidential documents in our briefcases and on our laptop computers just as we would in the office, since we know that everyone on board is a trusted team member. That’s a significant advantage since we spend a lot of time on the plane. In some of the places we travel, the airplane is the most secure, comfortable place to do business!” 

-Name Withheld

Purchasing an aircraft such as this 1994 Gulfstream GIVSP brings the option of hiring your own flight crew, which has some advantages and complexities. We're here to help you work through the details.

Purchasing an aircraft such as this 1994 Gulfstream GIVSP brings the option of hiring your own flight crew, which has some advantages and complexities. We’re here to help you work through the details.

This “comfort level” goes far beyond the reassurance of familiar faces. You can run background checks, execute confidentiality agreements, and use any of the other methods you would use to feel confident in hiring an employee.

Along with the advantages of hiring and managing your own flight crew, there is also complexity that few new or upgrading aircraft owners anticipate.

Example – Scheduling the Flight Crew for an International Mission

To illustrate how complex it can be to schedule a flight crew for typical operations, this is a glimpse into the high-level trip planning for a company that needs to send a project team abroad to support the launch of a new product on the international market.

The trip involves international travel to several cities, in an aircraft that requires two pilots.

Planning an international trip in a private jet? Many new or upgrading jet owners underestimate the complexity of crew planning

Please note that it’s more efficient to fly from west to east, so a professional flight planner might make different recommendations, but we understand that our clients need to go where and when their business takes them.

So far so good, except that like many corporate flight crews, the company in our example is subject to the FAA requirements for unscheduled carriers.

The following excerpt is from the regulatory requirements for charter pilots and is regulated under the Federal Aviation Regulations  “Part 135.”

 

§ 135.267 Flight time limitations and rest requirements: Unscheduled one- and two-pilot crews.

(a) No certificate holder may assign any flight crewmember, and no flight crewmember may accept an assignment, for flight time as a member of a one- or two-pilot crew if that crewmember’s total flight time in all commercial flying will exceed—

. . .

during any 24 consecutive hours the total flight time of the assigned flight when added to any other commercial flying by that flight crewmember may not exceed—

(1) 8 hours for a flight crew consisting of one pilot; or

(2) 10 hours for a flight crew consisting of two pilots qualified under this part for the operation being conducted.

(c) A flight crewmember’s flight time may exceed the flight time limits of paragraph (b) of this section if the assigned flight time occurs during a regularly assigned duty period of no more than 14 hours and—

. . .

As you can imagine, it goes on and on . . .

(Click this link for the current regulation if you’re curious.)

Depending on your particular situation, the regulatory requirements may be somewhat less restrictive, yet still daunting. Of course all of these regulations are subject to change at any time, and it takes a professional to know when and how to apply them.

Imagine the difficulty of an aircraft owner attempting to determine how many pilots to hire, train, and pre-position or send on this trip to support the mission!

Depending on the needs of your organization, you can see how it would be beneficial to have DJI’s assistance to help you understand how to hire the right personnel that has the operational experience and flight experience to organize and perform the trip.

Options for Managing Your Flight Crew

DJI understands the advantages and complexities of managing a flight crew, and we provide an array of services to help our clients benefit from the advantages while managing much of the complexity for you.

Some of the options:

  • Provide DJI with your requirements and DJI will do the recruiting and preliminary vetting of pilots and crew members for your company to hire and manage.
  • We enter into an agreement and DJI hires and manages your flight crew to your specifications, including background checks, confidentiality agreements, and so on.
  • Many other combinations are possible, based on your needs.

DJI’s goal is to ensure your aircraft ownership experience is a positive one especially with the crew.

Hot and High Flying – The Importance of Understanding Our Clients’ Needs

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As an aircraft owner, part owner or fleet manager, your primary concern is usually getting where you want to go efficiently.  You probably leave decisions and calculations about weather and density altitude to your pilots. There is a point where such decisions and calculations do need to be considered, so that you don’t encounter unnecessary delay or expense.   If your business or vacations take you frequently to places that are considered “hot and high,” it’s important to factor that into your aircraft choice and management.

Dallas Jet International has an extensive process that we use every time we acquire an aircraft for a client.  During the first two steps of that process, we become acquainted with your transportation needs and expectations.  Do your itineraries include Denver, Calgary, or Las Vegas, or other hot and/or high destinations?  Will you want to take off from these airports in the middle of the day?

hot and high flying conditions would be one of the factors considered in this analysis

Based on your responses, we select the aircraft type that will provide the most reliable, efficient transportation to the places you need to go.

Temperatures are frequently over 100 degrees during a Denver summer day.
It requires more power to take off – engine performance suffers due to the high density altitude.

Some of the considerations we need to make for “hot and high” flying conditions include the following:

  • Airplanes require a longer takeoff run, potentially exceeding the amount of available runway. (This may impact your ability to land and take off from some smaller, more remote airports.)
  • Low air density hampers an aircraft’s ability to climb. In some cases, an aircraft may be unable to climb rapidly enough to clear terrain surrounding a mountain airport.
  • In some cases, aircraft have landed at high-altitude airports by taking advantage of cold temperatures only to become stranded as temperatures warmed and air density decreased.
  • At many airports and locations, there are other specific FAA regulations and guidelines that impact the ability to take off or land at specific times.

 

FAA regulations require that planes departing Aspen during inclement weather have the ability to clear nearby mountain tops with one engine inoperative.
This leaves some private planes grounded.
Photo by Mark Fox, The Aspen Times

 

As an example, a client who has business or home in Aspen Colorado has a unique issue – FAA regulations require that departures during inclement weather (instrument flying conditions) the aircraft must be able to clear nearby mountaintops with one inoperative engine. This requirement keeps many private jets grounded at Aspen during cloudy weather. There are several aircraft that are better suited to perform out of high and hot airports.  We at Dallas Jet International try to analyze our clients’ needs before deciding on a certain model of aircraft.

Hot and high airports

Notable examples of hot and high airports include:

Your Situation, DJI’s Experience

DJI understands that our success in this business depends on trusted long-term and newly created relationships. Those come from listening carefully to our customers’ needs, asking questions to ensure we understand their situation and priorities, and judiciously applying our experience to ensure that every customer is completely satisfied the aircraft we collectively choose and the aircraft best suited to their needs.