Brad Harris

Our Relationships Make Us Stronger – Aviation Associations

July 10th, 2012 Posted in Background/Industry, Brad Harris

Jul , 10 20 12

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National Aircraft Resales Association Aviation Association NBAA - National Business Aviation Association Dallas Jet International (DJI) is a member of several professional and aviation associations.

We’ve heard the criticisms – some brokers are of the opinion that associations are a waste of time and money. “Why would we spend money and time going to association meetings to share ideas with our competitors?”

We’ve found the exact opposite is the case – here’s why:

The Benefits of Aviation Associations

Transactions in the aviation industry depend on personal relationships and trust. DJI works with other brokers all the time; even our competitors are “friendly” competitors – we recognize the need for a healthy industry. Every private aviation consumer that has a good experience, whether it’s with us or with our competitors, strengthens the industry. It is in our best interest to do what we can to improve the profession.

We’ve found that association meetings and conferences are a great use of our time. As we may have the best intentions to go to lunch with associates, schedules intervene and we are rarely able to see even our local partners and associates in person on a regular basis.

However, when we’re all in the same city for the NBAA (National Business Aviation Association) conference, as an example, we can meet with several clients, prospective clients, partners, other brokers and other professionals.

NBAA also offers excellent resources, information and publications.

NARA (National Aircraft Resale Association) and NAFA (National Aircraft Finance Association) are smaller, more specific organizations, but in many ways they are equally valuable. NARA has 75+ member companies, 35-40 of which are broker/dealers and others, which are associate members. I serve on the Board of Directors at NARA as the treasurer.

Members of both associations provide services to broker/dealers such as financing and insurance, and it certainly pays us large dividends to spend time getting to know the players. Many relationships and friendships are solidified when we meet periodically during the year to spend time working on joint objectives; indeed, many times we are able to get to know one another’s families. Building these strong friendships benefits our clients because we have a wide and varied network of people we can call on for different needs.

As an example, last Wednesday, we received a call from a potential client for a CJ3. This person was referred to us by an associate member that we met at an association event more than a year ago. This potential client had questions about a 1031 Like Kind Exchange, which is a very specific transaction type with some TVPX) on the phone (who we also know through an association membership) and he was able to answer every one of our potential client’s questions about this exchange strategy.

These relationships not only brought us the potential customer, but also helped us be more helpful and valuable to this potential customer.

This one exchange involved two long-standing, trusted relationships that we would not have had the opportunity to develop without our participation in the industry’s associations; and it’s certainly not an isolated example.

Long-term relationships are worth the investment. We spend time, work and capital on building relationships, and professional associations provide us with an invaluable means of doing exactly that.

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.

Dallas Jet International – An Emphasis on Relationships with an Operational and Technical Perspective

June 13th, 2012 Posted in Aircraft Sales, Brad Harris, Planes for Sale, Shawn Dinning

Jun , 13 20 12

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Dallas Jet International is a member of the National Aviation Resellers Association Professionals who pride themselves on prioritizing the focus of each transaction appropriately own Dallas Jet International (DJI). Long-term relationships come first, business objectives second, and aircraft third. This long-term focus and emphasis on the people and business that the aircraft will be serving ensures that each decision is made in the best interest of the client, many of whom have relied on DJI to represent their interests in multiple aircraft transactions over many years.

DJI is owned and managed by former professional pilots and aircraft managers who stay current and active during the free time away from the business. President and CEO Brad Harris and Managing Director of Aircraft Sales Shawn Dinning are experienced ATP pilots with current type ratings in 13 different aircraft from Citation 500 to Gulfstream G550. They have more than 13,000 flight hours between them. An aircraft sales professional with an operational and technical background can more fully assess and appreciate a particular aircraft’s strengths, weaknesses, opportunities and risks. Harris and Dinning use this depth of knowledge to their clients’ advantage.

DJI operates independently and is at liberty to transact within any make or model of aircraft. Their sole criteria is to ensure the best match with the client’s needs, exclusively representing buyers during aircraft acquisitions, thus preventing conflicts of interest. Harris and Dinning rely on excellent strategic market intelligence, ability to negotiate and expertise with complex transaction structures for clients with diverse financial positions and strategies. They use the latest technology to research and list aircraft, and they have cultivated an extensive network of industry relationships to find information and aircraft unavailable to many competing brokers and agents.

DJI has managed numerous aircraft in the past, and continues to manage aircraft for certain local clients. DJI clients now have access to one of the industry-leading charter/management and maintenance operations with DJI’s announcement of its brand new business alliance with Pentastar Aviation, a large Pontiac, Michigan-based Charter/Management and MRO (maintenance) company. While brokering aircraft transactions is a large part of DJI’s business, the purchase of aircraft into inventory for resale is becoming an increasingly big part. DJI is putting the message out to owners, brokers, banks, etc, that the company is in the market to buy aircraft, including trade-ins and repossessions.

Shawn Dinning adds, “Never underestimate the value of a reputable broker. Our clients benefit from the fact that aircraft buyers and sellers (who are not represented by DJI) prefer to work with clients represented by DJI because they know they will have a smooth transaction process.” Dinning advises anyone who is hiring a broker to really get to know that firm’s background, aviation experience and reputation within the industry.

Founded by Brad Harris in 2001, Dallas Jet International joined the National Aircraft Resale Association (NARA) in 2008 because the company wanted to be part of a group that creates a competitive advantage for members and their customers by leveraging a global collective knowledge and maintaining the highest professional standards.

For more information about Dallas Jet International and their capabilities, visit their website at http://www.dallasjet.com/ or call the Southlake, TX, office at 817.328.2900 or the Dallas, TX, office at 214.459.3303.

This article was originally published in February 2012 on the NARA blog.

national aircraft resale association

Jet Sales – Why Do We Do Business In Person?

May 30th, 2012 Posted in Aircraft Sales, Brad Harris

May , 30 20 12

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Doing Business In Person is More Expensive, but Often More Effective Technology provides many opportunities to save time and money. Webinars and videoconferencing seem to be the order of the day. However, at Dallas Jet International (DJI), we maintain an old-fashioned commitment to being physically present at critical stages of the jet sales transaction process.

Of course, we could economize and save a great deal of time and expense by relying on technology as a lot of brokers do. We could simply ask the other party for information, documentation, photos and anything else that’s needed and expect that information to be delivered to us, but we have found that method of doing business to be inadequate. DJI goes onsite to gather critical information and obtains answers to our clients’ questions and concerns personally.

Our core value is the experience and expertise we bring to the table and we are able to use that experience and expertise much more efficiently when we are physically present to represent our clients’ interests.

When DJI signs a exclusive agreement to buy or sell an aircraft for a client, we understand that we are committing to three, four, five or more trips to various locations in the course of providing the level of service that our customers have come to expect from us.

If we’re not physically present, small issues can become large ones. Key pieces of information can get missed or distorted and outcomes can be disastrous.

We recently received a Letter of Intent to purchase a Challenger 604. We traveled to St. Louis to review the records and review the modifications, which might include STCs (Supplemental Type Certificates) or Form 337 (the FAA form covering Major Repair and Alteration of the airframe, powerplant, propeller or avionics). We also took about 70 photos of the aircraft with our own camera and uploaded them to a secure area of our website where our client could view them. We work with professional photographers when selling an aircraft and certainly respect their art and craft, but when we are purchasing an aircraft we need to be sure that we are not relying on their professional photographs. Sometimes the professional photography included with an aircraft listing is three or four years old, and may show lustrous paint and an elegant interior that do not reflect the current reality accurately.

We are onboard for every flight (test flights, and/or flights to the pre-buy facility and to the delivery location)

At the pre-buy facility, we insist on an initial meeting with the facility program manager and any other stakeholders to indicate our (and our clients’) particular concerns and questions. Since the pre-buy inspection could take several days to several weeks, DJI wants to ensure that the major concerns are evaluated as soon as possible to save everyone time and effort. Because of our experience, we have found that setting these expectations at the beginning of the inspection process will prevent “deal killers” (such as missing logbooks or major corrosion) from being revealed in the final days of the inspection after everyone is invested in the transaction.

We are back on site for the conclusion of the inspection and onboard for the delivery flight. We ensure that all of the delivery and closing requirements are met, that the aircraft is delivered in a tax-friendly state (with advise from a tax attorney), that we purchase fuel and keep the receipt as documentation and that all of the required documents are check-listed, packaged, and delivered to our new owner.

DJI invests the time and money to be present at every critical juncture, and that practice has certainly paid off for us. The last 3 years have been the best in our 19 year history, not because of the economy, but because our clients have come to rely on this level of service from us.

Brad Harris

Selling a Jet in a “Buyer’s Market”

March 29th, 2012 Posted in Aircraft Cost, Aircraft Sales, Brad Harris

Mar , 29 20 12

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Selling a jet? Is it a "good" or "bad" time to buy a sell? By Brad Harris, Dallas Jet International

Clients are often concerned that selling a jet in a “buyer’s market” or a “bad time to sell” may not be profitable.

There are several things to consider when we look at sales of a particular aircraft at a particular time. First of all, generalizations that the market is “good” or “bad” are usually just that, generalizations. There are opportunities in every market. We never jump to conclusions about the timing or pricing without actually doing the research and coming up with well-thought-out plan.

Regardless of the general trends or feelings about the market, we follow a precise and methodical process.

Our prospective customers, especially those who have experience with us, know that we list good equipment that is priced properly. That credibility is based on many years of following this precise and methodical process, rather than reacting to emotions inspired by the market.

When we are engaged to sell an aircraft, we travel to see it in person.

We look at all of the records. We inspect the aircraft and verify the equipment installed. We look at the complete aircraft. We look at where the aircraft has been historically based and review the records of how and where it has been maintained.

Based on all of this information, and our experience as pilots and as representatives who have been trusted with the sale of hundreds of other aircraft, DJI provides an assessment and summary with specifications.

Establishing the Correct Price

We have an in-house research department.

The objective for the team is to determine where this particular aircraft fits into the current market. We look at historical “sold” data – what the aircraft was listed for, what price it actually sold for, how much time elapsed between the listing and the sale. Our team reaches out to all aircraft owners about their aircraft on or off the market and determine what the asking price and “take” price would be.

Once we have all of the data, we talk with our client about what all that means and how we should price their aircraft. We explain our recommendations and the reasons for them.

Obviously, the aircraft needs to compete in the market. We create a pricing strategy that includes the fair market value for listing and for selling.

Marketing Your Aircraft

Once we have an agreement with our client about appropriate pricing, we begin professionally marketing the aircraft.

We engage a professional photographer to create images that will make the aircraft stand out from a potentially crowded market. We create very professional documents and print advertisements for all of the usual outlets. We list the aircraft in all of the appropriate directories. We list it on our website, where we have the ability to really tell the story of each aircraft with text, images and documents. We advertise the aircraft to our proprietary email list and use specific targeting technology. We also market the aircraft to all of the OEMs, corporations, current aircraft owners, broker/dealers, pilots, aviation managers, Directors of Maintenance and company owners who may want to purchase this aircraft for their fleet(s).

The more people we get the aircraft in front of, the more quickly we’ll find the perfect opportunity to sell.

If you do the homework, selling a jet can be profitable, even in a “bad” market.

Regardless of the sometimes fickle market, we’ve proven over and over again that the secret of a profitable sale lies in getting the basics right.

Knowing the aircraft
Pricing appropriately
Marketing aggressively

In our years of experience, we’ve always found that if we do the homework, the aircraft will sell.

Of course, once we have an offer tendered, the hard work begins. See our Anatomy of an Aircraft Sale for the details.

Brad Harris

Things that Can and Do Go Wrong with an Aircraft Sale – Four Examples

March 5th, 2012 Posted in Aircraft Sales, Brad Harris

Mar , 05 20 12

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Things that can and do go wrong with an aircraft sale

If aircraft acquisition and sales transactions always went smoothly, anyone could follow a set procedure and buy or sell an aircraft. But when complications arise in an aircraft sale or other transaction, the realization that knowledgeable and professional assistance is required becomes visceral.

Aircraft acquisitions and sales involve several highly regulated and complicated processes and procedures. (Read – bureaucracy and paperwork!)

A skilled negotiator is required of course, but assuming that all parties agree in principle to the aircraft ownership change, many procedural steps remain. An unresolved error in any step of any procedure has a high propensity to cause the transaction to fail.

An inexperienced broker could lose a good opportunity or fail to recognize a bad opportunity and fail to protect his client.

We explained the basics of the acquisition process in the article Overview of an Aircraft Purchase, but in this article we’ll focus on case studies where transactions have gone awry (or potentially awry) after the Letter of Intent was executed.

Case One – “We want to buy the aircraft, but have discovered legal and tax issues.”

DJI was recently negotiating the sale of a Gulfstream V. The process was going well; we had negotiated an agreement and the buyer sent us a Letter of Intent. We were prepared to accept the offer the next morning and requested information needed to comply with the Patriot Act and Know Your Customer regulations. The information requested was simply the company name and address for the principal that would take possession of the aircraft.

After waiting most of the week, the following Monday we contacted the prospective buyer, who was very apologetic. In his words:

“We are not ready to take possession of the aircraft. There are some legal and tax ramifications that we are not prepared for. “

Since we were experienced with this sort of issue, we suggested a legal firm to design a structure that would allow the purchaser to go forward with the transaction. He was grateful and completed the transaction.

A less experienced broker might have let this transaction fail.

Because of our in-depth experience, ability to suggest business solutions to problems, and the credibility and trust we’ve garnered over years of working with various brokers, bankers, attorneys, buyers and sellers in this industry, we made a suggestion that was also in the best interest of the buyer. We were not working for this buyer, but made some connections with knowledgeable and experienced professionals who were able to create a win-win scenario.

Case Two – “The Broker Didn’t Go On-Site for Inspections, the Owner Stuck with a Lemon”

The pre-buy inspection process is commonly prone to error .

Once the buyer and seller have negotiated the price and terms and have executed a Letter of Intent, the transaction can be jeopardized by pre-buy Inspection discrepancies 5% or 10% of the time

DJI is always on site for pre-buy inspections, regardless of whether the transaction is an acquisition or sale.

In this instance, our client was interested in purchasing a Falcon 900B. On Day 3 of the pre-buy inspection, we discovered the aircraft had a gear-up landing at some point in the distant past. We quickly learned this was unknown to the current owner, as it had apparently happened prior to his acquisition where he did not use a reputable broker to help with the purchase.

Of course we advised our client not to buy, and immediately began the process to locate a better acquisition opportunity.

A less experienced or non-exclusive broker might have allowed this transaction to take place.

Evidently, the current owner of this Falcon 900B did not have someone with a fiduciary responsibility to represent his best interest in the acquisition of the aircraft. Most likely, the broker wasn’t on-site for the inspection as the damage history was never mentioned to the owner or had been overlooked.

Case Three – “198 Discrepancies. Isn’t That A Lot?”

A broker that has many years of experience dealing with particular aircraft types gets to know the range of “normal” for that aircraft.

As an example, we were acquiring a Gulfstream IV for a customer in St. Louis. The pre-buy inspection resulted in a list of 198 discrepancies; the buyer was shocked. His initial reaction was that this was a “bad aircraft.” The buyer didn’t understand older Gulfstream maintenance costs. A relatively large discrepancy list does not necessarily correspond to a large cash outlay.

Older aircraft can require more maintenance.

A less experienced broker might have lost a valuable opportunity.

Depending on the nature of those 198 items, this could be a great bargaining position for the buyer. This could be an ideal opportunity if the client’s intent was to upgrade, refurbish or modify those items anyway.

Case Four – “The Hunch”

In the last case we’ll mention, we were negotiating a Falcon 10 for a client. The pre-buy inspection done at KC Aviation in Dallas back in the mid 1990’s.

Some of the logbooks weren’t well documented but we were confident we could resolve that issue. There had been some part-swapping where an owner had replaced the starter generator from another airplane. Logbook issues and parts issues were yellow flags, but neither was sufficient to stop the process.

We prepared to fly the aircraft for the test flight. As we taxied out, the flap indicator cycled from no indication to a red (transition) indication and never made it to the next green indication. The seller said “Oh, don’t worry about that, it will go away right before takeoff.” – and it did.

On a Falcon, the landing gear should work very smoothly, but on gear retraction we heard a loud popping noise.

When we pulled the power back, the air-conditioning stopped; and when we put power back in, the air-conditioning resumed.

The seller said, “Let’s continue the test flight; we can get those things fixed.”

Our prospective buyer had already spent $50,000 on the inspections and legal fees. I advised him to walk away from the aircraft. There was nothing in particular that was a “deal killer,” but the chain of events compared with the many aircraft we had bought and sold over the years, as well as my experience as a pilot, gave me a “hunch” this was going to be a problem aircraft.

I’ll never forget what he said. “I hired you to represent me to protect my interests. If you don’t like it, I don’t like it, get on the next flight out of there. We’ll regroup tomorrow.”

That customer has continued to trust us to buy and sell aircraft for him for 16 years. We have represented him in six aircraft acquisitions since.

A less experienced broker might have let his client buy that Falcon 10.

We don’t get paid for incomplete transactions and these are hard decisions to make. DJI invested a lot of time and money researching that Falcon 10, but we have a responsibility to represent the best interests of our clients. There are brokers that would have completed that transaction, to the client’s ultimate chagrin.

We understand the road to success is a long one, especially in aviation. Our priority is the relationship with each customer; understanding that each is worth much more than the current “deal.” With this perspective, we make decisions that may seem not to be in our immediate financial self-interest.

Since things can and do go wrong in aircraft transactions, you need an experienced broker representing your interests. We would like to be that trusted advisor.

Brad Harris

An Emphasis on Relationships with an Operational and Technical Perspective – Dallas Jet International

January 5th, 2012 Posted in Background/Industry, Brad Harris

Jan , 05 20 12

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Dallas Jet International was selected to be featured National Aircraft Resale Association’s blog. Here’s the article:

Professionals who pride themselves on prioritizing the focus of each transaction appropriately own Dallas Jet International (DJI). Long-term relationships come first, business objectives second, and aircraft third. This long-term focus and emphasis on the people and business that the aircraft will be serving ensures that each decision is made in the best interest of the client, many of whom have relied on DJI to represent their interests in multiple aircraft transactions over many years.

DJI is owned and managed by former professional pilots and aircraft managers, who stay current and active during the free time away from the business. President and CEO, Brad Harris, and Managing Director of Aircraft Sales, Shawn Dinning, are experienced ATP pilots with current type ratings in 13 different aircraft from Citation 500 to Gulfstream G550, and over 13,000 flight hours between them. An aircraft sales professional with an operational and technical background can more fully assess and appreciate a particular aircraft’s strengths, weaknesses, opportunities and risks. Harris and Dinning use this depth of knowledge to their clients’ advantage.

DJI operates independently and is at liberty to transact within any make or model of aircraft. Their sole criteria is to ensure the best match with the client’s needs, exclusively representing buyers during aircraft acquisitions, thus preventing conflicts of interest. Harris and Dinning rely on excellent strategic market intelligence, ability to negotiate, and expertise with complex transaction structures for clients with diverse financial positions and strategies. They use the latest technology to research and list aircraft; and have cultivated an extensive network of industry relationships to find information and aircraft unavailable to many competing brokers and agents.

DJI has managed numerous aircraft in the past, and continues to manage aircraft for certain local clients. DJI clients now have access to one of the industry leading charter/management and maintenance operations with DJI’s announcement of its brand new business alliance with Pentastar Aviation, a large Pontiac, Michigan-based Charter/Management and MRO (maintenance) company. While brokering aircraft transactions is a large part of DJI’s business, the purchase of aircraft into inventory for resale is becoming an increasingly big part. DJI is putting the message out to owners, brokers, banks, etc, that we are in the market to buy aircraft, including trade-ins and repossessions.

“Buyers and sellers need expert representation in the business aircraft marketplace,” explains Brad Harris. “We manage the complexities of the process from start to finish to our clients’ advantage. While we are often labeled as ‘brokers,’ our clients call us ‘trusted consultants’ who rely on us to buy, sell or manage their aircraft in a manner that meets their objectives with the best possible financial results.” Shawn Dinning adds, “Never underestimate the value of a reputable broker. Our clients benefit from the fact that aircraft buyers and sellers (who are not represented by DJI) prefer to work with clients represented by DJI because they know they will have a smooth transaction process.” Dinning advises anyone who is hiring a broker to really get to know that firm’s background, aviation experience, and reputation within the industry.

Founded by Brad Harris in 2001, Dallas Jet International joined the National Aircraft Resale Association (NARA) in 2008. DJI’s clients benefit from the global collective knowledge, and the industry benefits from the ideals of the group, which defines and maintains the highest professional standards.

For more information about Dallas Jet International and their capabilities, visit their website at www.dallasjet.com or call the Southlake, TX, office at 817.328.2900 or the Dallas, TX, office at 214.459.3303.

national aircraft resale association

Intelligently Using Technology to Sell Aircraft

September 29th, 2011 Posted in Aircraft Sales, Background/Industry, Brad Harris

Sep , 29 20 11

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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.

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

aircraft listings, sell aircraft, technology intelligently

Selling Your Aircraft on the International Market

August 25th, 2011 Posted in Aircraft Sales, Brad Harris

Aug , 25 20 11

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When you’re selling your airplane, the more buyers that see it, the more likely you are to sell it quickly and for the best possible price. Selling your aircraft on the international market simply makes sense – a larger market equals more opportunity.

There has been exceptional growth in business aviation outside of the United States in recent years.

When you put those two facts together, it makes sense to work with a broker who can accurately market and potentially sell your aircraft to any qualified buyer in the world.

To do that effectively, it is important to use a sales professional or broker who understands the implications of international transactions. It’s important to select a professional who:

Has experience with international sales and understands how the process works in the country the buyer is in.
Has the connections and channels to market and advertise the aircraft internationally
Is able to manage all of the legal requirements for export and import of the aircraft
Is able to evaluate the available options and give you the best advice about the details of the transaction.

A broker who doesn’t have this experience can expose you (the seller or buyer) to unnecessary delays and potential legal and financial risks.

There are two major processes that have to take place If you sell an aircraft to a buyer in another country. First, you have to export the aircraft from the country of the registration by performing an Export Certificate of Airworthiness. . Second, you will have to perform an Import Certificate of Airworthiness into the new country of registration by conforming the aircraft to the local aviation authorities regulations and requirements.

The rules are not the same in every country.

In recent years there have been some regulatory changes made which affect aircraft that have been previously registered in the U.S. The changes allow an aircraft that has been sold overseas, but previously registered in the U.S., not to be required to undergo another Export Certificate of Airworthiness (C of A). The new U.S. buyer must simply display to the FAA DAR that the aircraft is in compliance and has the required inspections for the Import Certificate of Airworthiness.

If you sell an U.S. aircraft into a foreign country, an Export C of A may be required, which would entail additional inspections. Different controlling government bodies have various requirements, for example, in Switzerland it’s the Federal Office of Civil Aviation (FOCA); however, the European Aviation Safety Administration (EASA) governs the majority of Europe.

Each of these entities may require additional inspections or even additional equipment (such as a flight data recorder, which may add $30,000.00 to $300,000.00 to the cost of bringing the aircraft into compliance!)

When we represent a U.S. seller with a foreign buyer, we are very careful with the language of the agreements for many reasons; one of which is to be very explicit about which party is responsible for costs associated with ensuring the aircraft conforms to the legal requirements of the buyer’s country’s governing authority.

Besides the government agencies and their procedures, there are other risks.

Once a U.S. seller has filed the de-registration request and/or delivers a bill of sale, he is no longer the owner of the aircraft, yet the closing will not have occurred and the seller will not be paid until confirmation from the foreign local registry is issued. Given time differences between countries, the de-registration request and the acknowledgment of the re-registration documentation approval by the foreign local registry may actually occur on different business days.

There is also a risk that the buyer may default on the contract after the de-registration and Export C of A have been accomplished; yet the seller will not have been paid. From a U.S. seller’s perspective, the only thing that the U.S. seller should do is agree to file the de-registration request or bill of sale concurrent with being paid. One of our specialties is the generation of such agreements that cover the risks of the seller.

Other things to consider:

Currency fluctuations
Delivery of the aircraft (across an ocean – through airspace that may be unfamiliar to the crew)
Getting the aircraft through customs and immigration

As you can see, it is very important that all parties in these negotiations are experienced and knowledgeable.

Dallas Jet International Transactions are International

Dallas Jet International (DJI) has experience with international transactions in many countries and circumstances. Dallas Jet International personally oversees every aspect of each transaction. We have a network of trusted inspection facilities and legal and tax professionals throughout the world.

Our most recent aircraft transactions include the following:

Bahrain
Channel Islands
Denmark
South America
Brazil
Canada
England
Ireland
Italy
Spain
India
Isle of Man
Switzerland
Venezuela

Question- Is it worth it to sell your airplane on the worldwide market?

Answer – We suggest that you are missing out on a large number of potential buyers and a large amount of capital in foreign markets if you restrict your aircraft sales efforts to the U.S.

We also suggest that you select a broker that can represent your interests and protect you from the potential risks involved in these complex transactions.

About Brad Harris

import certificate of airworthiness

Complex Transactions- Buy, Sell, or Trade, and in What Order?

July 28th, 2011 Posted in Aircraft Leasing, Aircraft Sales, Brad Harris

Jul , 28 20 11

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Many clients come to Dallas Jet International in need of a complex transactions. They need a different aircraft from the one they currently own. Our objective is to find out your specific needs by asking the right questions. The first question we ask is, “Do you want to own two aircraft at the same time?” The answer is typically no.

Therefore, many aircraft owners have a need to sell their current aircraft before they purchase another. The dilemma owners are often faced with is, should they trade their current airplane, sell and buy at the same time, sell first or buy first?

Let’s break down the options:

Trade your current airplane for the one you want.
Sell your current airplane, and buy another one simultaneously.
Sell your current airplane while a purchase is in progress.
Buy a new airplane and then sell your old one.

1. Trade Your Current Airplane For the One You Want

Pros:

Many clients don’t want to pay fixed and operating expenses on two aircraft, but also don’t want to be inconvenienced by selling their current airplane while waiting for the purchase process on another. This option also allows you to use a 1031 Like Kind Exchange. (See below for details.)

Cons:

It is unlikely you’ll find a person who has the specific airplane you want that is willing to trade it for the specific airplane you have. Statistically, more people want to upgrade to a newer or larger aircraft than to downgrade to an older or smaller one. For example, very seldom does an aircraft owner want to downgrade from a 2008 model Gulfstream G450 to a 1988 model Gulfstream GIV.

A perfect opportunity for a trade may never materialize, or you may wait a long time. Based on the demand for your current aircraft, Dallas Jet International can give you an idea of the probability for your particular situation.

2. Sell your current aircraft and buy another simultaneously.

Pros:

This is an ideal option for you if speed and simplicity is more important to you than getting the best value for your current airplane or the best deal on your new aircraft.

Cons:

People are used to “trading in” a car to a dealer when buying a new one. Unfortunately, the airplane market doesn’t work quite so conveniently. This sort of transaction usually means selling at wholesale (to a dealer) and buying at retail (from a dealer or end user) for maximum convenience. The dealer will tend to “over allow” (or inflate) the price of the new airplane in order to take your old one in trade. This is very similar to what occurs with used car dealers. I It is harder form your consultant to negotiate better terms on either the sale or the purchase because time is the critical factor.

3. Sell Your Current Aircraft, Then Buy Another

Pros:

If your travel schedule has some flexibility, this is the best way to get the optimal value on both transactions. Your consultant can get the best possible deal on the sale of your current aircraft and the best possible deal on the purchase of your new aircraft (within your time parameters, of course) by working with each transaction separately. This sequence also ensures that you don’t have two aircraft (and the expenses, logistics and tax implications) at the same time.

Cons:

Since the selling process often takes longer than the process of purchasing an aircraft, and there are times when a sale simply doesn’t materialize for one of many possible reasons, you can expect a gap of several weeks to several months where you will need to meet your transportation needs some other way, like using charter aircraft. There are also tax implications for the timing between the sale and subsequent purchase.

4. Buy an airplane, then sell your current plane.

Pros:

If you don’t want to be without an airplane, and have the cash flow and credit to support two aircraft for a short time, this is the best option for you. This offers the benefits of buying the right aircraft at a favorable price and then selling your aircraft at a favorable price. This allows your consultant to make the best negotiated deal for you from a wider range of options when you purchase, and then when you sell.

Cons:

Supporting the expenses of two aircraft at the same time can involve more expense (or debt) than you can or want to support at any given time. There are companies that Dallas Jet International works with who specialize in aircraft title transfer. These companies act as temporary holding companies that can make the purchase temporarily and lease the aircraft to you until your current aircraft sells.

Our recommendation for most clients is to use the third or fourth option – Complete each transaction independently.

Sell your airplane then buy another. This option would provide more possibilities to negotiate the best deal on each separate transaction. We work with our clients to meet their individual needs.

DJI will make this process as painless as possible by doing the following:

Making the lag time between the sale and purchase as short as possible within their tolerances on price, by using less-aggressive sales techniques until the purchase process for the new aircraft is well underway before stepping up the sales efforts. (Reverse 1031 Like-Kind Exchange)
Referring you to cost-effective options for temporary private transportation arrangements to bridge the gap between the sale of your old airplane and taking delivery of the new one.
Using an intermediary such as Time Value Property Exchange (TVPX) that will act as a holding company who will own and lease your new aircraft back to you until the sale of the old one is completed and then transfer title to you. This option expands the financing, depreciation and tax options available.
Providing advice about asset exchanges, depreciation-reporting options, financing options and other resources that help you save time, money and headaches.

DJI works with you on every step of this complex process. We understand that most buyers want this to work like an automobile transaction – they simply want to buy a new airplane and dispose of their old one as profitably as possible, with as little inconvenience as possible. Our experience and expertise will get you as close to that experience, given the complexities of the aircraft market.

More info on Like-Kind Exchanges Under IRC Code Section 1031

Whenever you sell business, investment property or aircraft and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property or aircraft as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.

The exchange can include like-kind property/aircraft exclusively or it can include like-kind property/aircraft along with cash, liabilities and property that are not like-kind. If you receive cash, relief from debt, or property/aircraft that is not like-kind, you may trigger some taxable gain in the year of the exchange. There can be both deferred and recognized gain in the same transaction when a taxpayer exchanges for like-kind property of lesser value. Dallas Jet International works with several tax attorneys that work with our clients on tax matters.

Brad Harris

complex transactions

Now Is a Good Time To Buy or Sell your Airplane Through Dallas Jet International

June 16th, 2011 Posted in Aircraft Leasing, Aircraft Sales, Brad Harris

Jun , 16 20 11

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Now is a great time to buy or sell your airplane through Dallas Jet International. If you’ve been keeping an aircraft in storage or have been waiting for the economy to improve before you trade up or trade down, give us a call and let’s discuss your situation.

In an article at the end of March, we noted the market is definitely improving for large-cabin, newer aircraft.

We’re seeing improvement in aircraft sales, as evidenced by the number of transactions we’re completing at DJI. Improvement has been particularly dramatic in the first quarter of this year, especially since the first two quarters of each year are traditionally slower – there is generally a push of transactions in the last quarter of each year.

As a result, we’ve nearly sold out of our inventory.

We’ve sold twelve aircraft in the past six months, which involves quite a bit of travel, research, paperwork and fact-checking. As a result of all that hard work, we’re now in a great position to start working with new clients and help them with their aircraft needs.

We now have more time available to spend building relationships. If it’s your first time selling an aircraft, we can walk through the process with you, spend the time it takes to make sure you’re comfortable with every stage of the process. We look at every aircraft transaction with a new customer as the beginning of a long lasting relationship.

The people that we buy and sell airplanes for today are the very same people that call us months or years later to make another aircraft transaction, because they know that DJI provides straight answers and excellent service and results.

Call us today at (817) 328-2900 and let’s talk about your situation.

Here’s the list of aircraft we’ve sold in the last six months. This may also give you an idea of the types of airplanes that we have experience with buying and selling.

Challenger 601-5048
Citation Mustang 510-0088
Citation Encore 560-0695
Citation XLS+ 560-6032
Citation V 560-0064
Gulfstream IV-1104
Citation CJ 525-0300
King Air B200 BB-1956
GIVSP-1310
King Air 350, FL-441
King Air C90B-1455
Citation IST

Now is a great time to sell your airplane through Dallas Jet International!

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If you do the homework, selling a jet can be profitable, even in a “bad” market.

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Case One – “We want to buy the aircraft, but have discovered legal and tax issues.”

A less experienced broker might have let this transaction fail.

Case Two – “The Broker Didn’t Go On-Site for Inspections, the Owner Stuck with a Lemon”

A less experienced or non-exclusive broker might have allowed this transaction to take place.

Case Three – “198 Discrepancies. Isn’t That A Lot?”

A less experienced broker might have lost a valuable opportunity.

Case Four – “The Hunch”

A less experienced broker might have let his client buy that Falcon 10.

Brad Harris

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The rules are not the same in every country.

Besides the government agencies and their procedures, there are other risks.

Dallas Jet International Transactions are International

About Brad Harris

1. Trade Your Current Airplane For the One You Want

2. Sell your current aircraft and buy another simultaneously.

3. Sell Your Current Aircraft, Then Buy Another

4. Buy an airplane, then sell your current plane.

Our recommendation for most clients is to use the third or fourth option – Complete each transaction independently.

DJI will make this process as painless as possible by doing the following:

More info on Like-Kind Exchanges Under IRC Code Section 1031

Brad Harris

Call Dallas Jet International 817-520-4009

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