Aircraft Sales Insights

A Service of Dallas Jet International

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.

using technology to sell aircraft

Forrester Research, March 2011


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

A Comprehensive Online Marketing System

 

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

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

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

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

DJI Website listing

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

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

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

 

Blog – Aircraft Sales Insights.

 

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

 

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

 

Articles include:

 

 

Google and Facebook Usage Skews Young and Affluent.

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

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

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

 

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

 

We also list each aircraft on our popular Facebook page.

Dallas Jets International Facebook Listing

 

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

 

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

 

Dallas Jet International Listing on Twitter

 

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

 

Biweekly Email Newsletter

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

 

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

Dallas Jet International Email Newsletter

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

 

Being Where We Need to Be, In-Person

 

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

 

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

 

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

Brad Harris

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

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

September 21st, 2011 Posted in Aircraft Sales, Shawn Dinning
Sep , 21 20 11
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Does it seem like “a lot” of aircraft of a particular type are for sale? It depends on the size of the fleet to begin with.

By Shawn Dinning

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

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

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

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

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

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

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

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

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

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

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

 

Shawn Dinning, Director of Sales & Acquisitions

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

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

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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

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.

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Market Volatility and Your Aircraft Purchase Decisions

August 15th, 2011 Posted in Aircraft Cost, Aircraft Sales, Background/Industry, Shawn Dinning
Aug , 15 20 11
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With the last week of market volatility in Wall Street and across the globe, I have been asked where the aircraft market is going, and what aircraft buyers and sellers should be considering as we approach the home stretch of this year.  While I don’t ever say I can predict the future, my response to my clients’ inquiries on the future involves a major discussion of market volatility, including where we are and where we’ve been.

Market Volatility in The Last Three Years

The height of the bubble that was the aircraft market was reached in early 2008.  Since early 2008, most markets have been in a steady, and sometimes rapid, decline.  While there is frequent discussion on the major causes of this market decline, allow me to review some raw numbers with you.  Below are average aircraft “Basic Selling Prices” as recorded in Q1 of 2008 and then in Q2 of 2011.  These prices are average, and I must advise you that aircraft were selling at higher and lower prices than the averages listed here, but these numbers are certainly good reference points.

Q1 2008  Q2 2011 % Change
1998 Gulfstream V $40,750,000 $22,000,000 -46%
2002 Gulfstream V $45,500,000 $26,000,000 -43%
2004 G550 $54,000,000 $37,000,000 -31%
2007 G550 $58,000,000 $41,000,000 -29%
2001 Falcon 900EX $34,800,000 $19,500,000 -44%
2007 Falcon 900EX $42,900,000 $28,000,000 -35%
2001 Falcon 2000 $22,200,000 $11,000,000 -50%
2007 Falcon 2000EX EASy $34,000,000 $20,000,000 -41%
2001 Bombardier Global $45,000,000 $25,000,000 -44%
2007 Bombardier Global XRS $60,000,000 $39,000,000 -35%
2001 Hawker 800XP $8,900,000 $4,000,000 -55%
2007 Hawker 850XP $13,300,000 $7,000,000 -47%
2001 Lear 60 $8,100,000 $4,100,000 -49%
2007 Lear 60XR $12,500,000 $6,900,000 -45%
2001 Citation Excel $8,500,000 $4,000,000 -53%
2007 Citation XLS $12,200,000 $6,900,000 -43%
2005 Citation CJ3 $7,200,000 $4,600,000 -36%
2008 Citation CJ3 $8,000,000 $5,700,000 -29%

 

As you can see, aircraft values have dropped dramatically over the last 3 years.  In some cases, values have dropped over 50% from their 2008 highs.  “Market Correction” is an understatement.

When people see these numbers, they are often shocked.  Aircraft owners and aircraft lenders have been hurt significantly by these value decreases.  Aircraft buyers, especially first time buyers who do not currently own an aircraft, are almost giddy about buying an aircraft that is 40%  cheaper than it was three years ago.

Are We At the Bottom?

A very common question for me is whether we are at the bottom of the market.  The question is difficult for me to answer, as the market has segmented itself.  Markets with the most momentum are 5 year old and younger large cabin aircraft such as the Gulfstream G550 and the Bombardier Global XRS.   These markets have shown a clear bottom, mostly in the latter part of 2009, and have stabilized at prices above the 2009 bottoms.  Markets that are still in a decline are all of the aircraft that are 20 years and older.  Even in markets such as the Lear 60 and Hawker 800XP, significant oversupply is making it difficult for prices to show any signs of appreciation in the near future.

Taking a Step Back – Looking At the Market Opportunity

In particular, aircraft buyers should take a look at this market from a broader historical perspective.  Are prices going to go lower?  In some markets, there is clear data that prices hit bottom over a year ago.  In other markets, they may.  But, in ALL markets, prices have made a major correction, in some cases over a 50% correction.  If anyone is seriously in the market, this could be just the right opportunity to secure a tremendous deal within the historical context of the market.  Moreover, the quality aircraft will always sell first. So, this could very well be the time to take the “pick of the litter” in many depressed aircraft markets.

In future articles, I will take some time and look at individual aircraft markets, showing you how a particular market is behaving in the context of the broader market.

Shawn Dinning, Director of Sales & Acquisitions

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

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

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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:

  1. Trade your current airplane for the one you want.
  2. Sell your current airplane, and buy another one simultaneously.
  3. Sell your current airplane while a purchase is in progress.
  4. 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

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.

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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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Overview of an Aircraft Purchase

May 26th, 2011 Posted in Brad Harris
May , 26 20 11
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A Detailed Aircraft Purchase Process

We really take ownership of every transaction, and we take the fiduciary responsibility to protect our buyer’s interests very seriously. We have developed a detailed process for an aircraft purchase to make sure we have all of the bases covered.

We have bought, sold, leased and managed many aircraft over the course of many years.  This experience has defined and added to the system we have developed to ensure that we represent our client’s interests in the best possible way at every single step.

The Purchase Process

Each step in this diagram is actually a complete process in itself.  As an example, the Closing Process (Item 10) involves a 100-step checklist.

We’ll outline the basics of these twelve steps in this article:

Aircraft purchase process

 

1)       Analyzing Your Needs

When a person calls us, we start by taking the time to be sure we understand their needs.  We take the time to understand your business and your travel needs to find the best solutions for you.

 

2)       Choosing the Right Aircraft

This is the longest part of the process, and is outlined in detail in Finding the Right Aircraft is More About People Than Planes. This is the step in which the client is the most involved.

Taking the time to ask the right questions, truly listen to the answers,  and to thoroughly understand our clients’ needs is critical.

 

3)       Market Research

Of course we research the major sources of aircraft currently on the market, but we also have a wide network of relationships with dealers, brokers, manufacturers and fleet managers;  and are often aware of aircraft that are available before they formally become available “on the market.”

4)       Finding Three Possible Aircraft

Of course every client has different needs and priorities. For some, speed is the most important factor, others are willing to wait for an opportunity that will get a specific aircraft or better financial terms.   We generally find three aircraft that meet the needs of our client.  This puts us in a strong negotiating position because if our first choice doesn’t work out for any particular reason, we have already done the research and are prepared to begin negotiations on two others.

5)       Negotiation Process

The negotiation process can vary quite a bit depending on how sophisticated and motivated the seller is. Whatever the case may be, it is to the buyer’s advantage to have an experienced, skillful representative representing your interests.

6)       Letter of Intent

We provide the Letter of Intent (LOI) as a conclusion to successful negotiations.  We ensure that all terms are clear and favorable, and recommend attorneys when needed to avoid issues.

7)       Inspection Process

We monitor the pre-buy inspection on site. Since we are type-rated pilots in most of the aircraft we buy and sell, we can really understand the issues reported.

We can help interpret the inspection results and say “this is a good airplane for your needs,” or “this airplane is going to cause you problems for these reasons, so let’s walk away.”

8)       Technical Acceptance

When we have technical acceptance and our client has opened an escrow account prior to moving to a pre-purchase facility, we make sure the title searches are clear. We ensure that security interests on the aircraft are released, and all the documents are in order.

9)       Acceptance Flight

Next, we do a pre-delivery acceptance flight. We are onboard the aircraft for every flight in the sales process.

10)     Closing

We employ a 100-point closing checklist to ensure that no detail escapes our attention. Examples of the details that we track to conclusion include ensuring that  records are complete and correct, titles are clear, and liens are released.

11)     Taking Delivery

We’re on site for delivery. We get the delivery receipts signed and other documentation needed. We verify proof the delivery was accepted at the correct location; and we ensure that all the paperwork details are in order, such as ensuring that the Application for Registration pink copies are on the airplane.

12)     Post-Closing Critique

We do a post-closing critique, and put all of the documentation together in a complete file for the client’s transaction that is ready to keep in a safe place.

Summary

We take ownership of every transaction, and the fiduciary responsibility to protect our buyer’s interests.

Our company’s goal is to build relationships that last for a lifetime. We’re market specialists, in the relationship business. Our objective is to provide a flawless experience so that you call us each time you have a need to buy, sell, lease or manage an aircraft.

 

About 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.

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Aircraft Finance Update – Availability of Funds Increasing in International Markets, Lenders Still Want “Skin in the Game”

May 12th, 2011 Posted in Aircraft Cost, Background/Industry, Shawn Dinning
May , 12 20 11
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aircraft financeI just returned from  Fort Lauderdale, Florida, where DJI attended the annual National Aircraft Finance Association (NAFA) meeting and conference.  Here’s what I observed this year.

 

As one might expect, the core attendance of this conference includes most of the major players in the aircraft finance arena.   Banks, capital companies, private equity firms, and finance brokers were all in strong attendance.   Some people asked me why an aircraft broker/dealer would go to a finance conference.  The answer is that the two specialties are highly reliant upon each other.  The availability and adaptability of aircraft lending makes such a significant impact on the transactions of which I am a part.  Part of the value that DJI adds to the transaction process for our clients that we understand the options and the constraints of the aircraft finance space, so we found this conference highly valuable to our organization and our clients.

 

Having said all of that, these were some of my impressions from the recent event:

 

  • Appetite to Lend Money: Despite the fact that most of DJI’s transactions have had buyers who were paying cash, it was very evident to me that most of the aircraft lenders out there are looking for more business and looking to grow their portfolios.    This is good news for all involved in aviation.  As the supply of financing makes a comeback, aircraft prices will stabilize, and in certain markets, show signs of gradual increase.

 

  • Wide Scope of Lending Solutions:  While some lenders might suggest that they have a financing solution for almost everyone, one of the big themes of the conference was that, while no single lender can appeal to all aircraft buyers, there is enough variation between the focal points of the various lenders, that almost any reasonable financing need can be met.  In other words, whether your next planned transaction is a $50 million large cabin aircraft, or a $2 million turbo-prop finance lease, there are professionals in the lending space who focus on that area of aircraft finance and who want to earn your business, assuming that you are credit-worthy.  The one exception is that most lenders are still shying away from aircraft older than 25 years.

 

 

  • “Skin in the game” is essentially mandatory in this credit market.  In other words, most loan structures that lenders are comfortable with are going to require the borrower to advance 15% to 30% of the transaction value, and in some unique cases, 50%.  Keep in mind that back in 2007, some lenders were advancing 110% of the transaction value so that buyers could take the excess advance and apply it to aircraft improvements!

 

  • International Market: Most of the lenders are focused on the international marketplace and are vocal about the fact that the international marketplace is where much of the growth is going to happen in the business aircraft segment.  Here in the US, this is important to the sellers, as many of the future buyers on DJI’s US listings are going to be from another country, and many of them are going to need financing to make the deal happen.  Brazil, China, India, and Russia are all showing signs of significant growth in their appetites for business aircraft.

 

Overall, the conference was an excellent event, and one which left the DJI team  cautiously optimistic.  If any of you out there have questions about financing as it relates to the purchase or sale of a business aircraft, please do not hesitate to call me.  I would enjoy the opportunity to chat with you.

 

Shawn Dinning, Director of Sales & Acquisitions

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

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

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Finding the Perfect Aircraft Is More about People than Planes

April 21st, 2011 Posted in Aircraft Leasing, Aircraft Sales, Brad Harris, Models of Aircraft
Apr , 21 20 11
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It's important to consider a number of factors, including where, why and how you fly to get the perfect aircraft.

It’s important to consider a number of factors, including where, why and how you fly to get the perfect aircraft.

Ensuring that a client has the aircraft that will best serve his business and personal needs is a responsibility we take very seriously at DJI.  There are many brokers that are knowledgeable about various makes and models of aircraft, but we pride ourselves on putting the focus where it belongs- on the people and the company the aircraft is intended to serve.

To make the best match, we start with a series of questions about personal and business objectives and preferences.

How much can you spend?

The first consideration (as probably expected) is the budget.  Besides the obvious question of what is available to spend on the acquisition of the aircraft, we also want to know preferences for ongoing expenses.

Depending on cash flow and timing considerations, sometimes it’s preferable to spend more on the acquisition of an aircraft that will have lower direct operating costs, or vice versa.

Acquisition Budget Annual Direct Operating Cost Budget
Aircraft A $10,000,000 $1,000,000
Aircraft B $15,000,000 $600,000

 

In this example, Aircraft B is a newer aircraft which may cost more to acquire but has lower direct operating  costs because of fuel efficiency improvements and a longer time before engine overhaul and other major expenses.

In some cases, we may advise a client they don’t need to spend as much as they had expected to, depending on choices they will make.

How many people will travel in this aircraft most of the time?

While there are always exceptions, it is good to know what the “typical” passenger complement would be.  If the typical passenger contingent is 2 people, a smaller aircraft would be comfortable.  If the usual party is four or five, then we’d be looking at midsize cabins.  For eight to ten people, we would look at large cabin sizes.

How much luggage do you carry?

This is a consideration that might affect cabin size or luggage configuration. For a client that frequently takes a group to golf in Scotland, we need to ensure that there is convenient space for golf clubs.   Other considerations are camera crews that require a lot of camera and lighting equipment, clients that may need to carry industrial parts of various sizes, or skis (some aircraft have factory installed ski tubes or other conveniences.)    We also need to consider the size and placement of doors to ensure your equipment can be safely and conveniently loaded and unloaded.

We once experimented with four folding bicycles for one buyer that wanted to be sure that they could travel with them.   It is important to ensure that the aircraft will accommodate whatever you need or want to travel with.

Where do you go?

We need to know where the aircraft will be based and the frequent and expected destinations so that we can choose an aircraft with the appropriate range and other characteristics.  Traveling predominantly in one region could require a shorter-range aircraft than one that needs to travel coast-to-coast or internationally on a regular basis.

We also want to know if you travel frequently to high-altitude destinations like Aspen or Telluride.  Although some aircraft are designed to perform well at those altitudes, some will need to take off in the morning or evening , (high temperature exacerbates the effect of high altitude on engine performance)  or take off “light” at the high-altitude airport, then stop in Pueblo, Denver or Grand Junction to fill up with fuel.

As an example, if you anticipate needing to leave and arrive at very high altitude or very hot airports at any time of the day and don’t want to be dependent on favorable weather conditions, we need to take those factors into consideration.

We also need to consider your destinations to ensure adequate runway length for your aircraft. Short runways, (4500 feet or less) usually in smaller or more remote airports are also a consideration. Some aircraft need a longer runway to take off and land safely under many conditions.

How fast do you need to get there?

This is most often a function of how often you are willing to stop for fuel. Few of our clients care about the time difference between an aircraft that flies at 300 vs. 400 knots.

The largest variety to choose from

Many brokers represent one or two major aircraft manufacturers.  We remain independent and are free to recommend the best aircraft for your needs and preferences.

Both Shawn Dinning and I are type-rated pilots in most of the aircraft listed, and can help you make a choice you will be very satisfied with.

Here are a few of the aircraft that we place frequently.

Very Light Jets currently on the market

  • Cessna Mustang
  • Embraer Phenom 100
  • Eclipse 500

Very light jets undergoing flight testing

  • Cirrus Vision SF50
  • Diamond D-Jet
  • Honda HA-420 HondaJet
  • PiperJet

Light Jets

  • Learjet 40
  • Learjet 40 XR
  • Learjet 45
  • Learjet 45 XR
  • Citation CJ
  • Cessna Citation CJ1
  • Cessna Citation CJ2
  • Cessna Citation CJ3
  • Cessna Citation CJ4
  • Cessna Citation Bravo
  • Cessna Citation Encore
  • Embraer
  • Phenom 300
  • Beechcraft Premier I
  • Hawker 400
  • SJ30-2

Midsize

  • Learjet 60 XR
  • Learjet 85
  • Cessna Citation Columbus
  • Cessna Citation XLS
  • Cessna Citation Sovereign
  • Dassault Falcon 50EX
  • Embraer Legacy 450
  • Embraer Legacy 500
  • Gulfstream 150
  • Gulfstream 250
  • Hawker 750
  • Hawker 800XP
  • Hawker 850 XP
  • Hawker 900XP

Midsize Longer Range

  • Bombardier Challenger 300
  • Challenger 605
  • Cessna Citation X
  • Dassault Falcon 900DX
  • Dassault Falcon 900EX
  • Dassault Falcon 2000DX
  • Dassault Falcon 2000EX
  • Embraer Legacy 600
  • Gulfstream G350
  • Gulfstream G450

Super Mid-Size

  • Bombardier Challenger 300
  • Bombardier Challenger 605
  • Cessna Citation X
  • Dassault Falcon 900DX
  • Dassault Falcon 900EX
  • Dassault Falcon 2000DX
  • Dassault Falcon 2000EX
  • Embraer Legacy 600
  • Gulfstream G350
  • Gulfstream G450
  • Hawker 4000

Heavy Jets

  • Airbus A318 Elite
  • Airbus A319CJ
  • Airbus A380 Flying Palace
  • Boeing Business Jet
  • Embraer Lineage 1000
  • Large Cabin jets
  • Bombardier Aerospace
  • Bombardier Global 5000
  • Bombardier Global 7000
  • Bombardier Global 8000
  • Bombardier Global Express
  • Bombardier Challenger 850
  • Gulfstream IV
  • Gulfstream V
  • Dassault Falcon 7X
  • Gulfstream G500
  • Gulfstream G550
  • Gulfstream G650
  • Gulfstream G450

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.

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Sell Your Aircraft with Confidence…Even in a Slow Market!!

April 11th, 2011 Posted in Aircraft Sales, Shawn Dinning
Apr , 11 20 11
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Sell Your Aircraft with Confidence…Even in a Slow Market!!In my last blog article, I discussed the importance of confidence, decisiveness, and speed in the business turbine aircraft purchase process.  If you don’t have a well-researched confidence in the aircraft market – what I like to call “market intelligence” –  you will lack what it takes to “pull the trigger” and engage an airplane at the right price.  The purchase opportunity to sell your aircraft will pass you by, and that could mean hundreds of thousands of dollars as well as hundreds of hours of wasted effort.

 

In the aircraft selling process, I can confidently say that confidence, decisiveness, and speed are equally as important.  You must react immediately to a prospective buyer’s offer.  Not only must you react quickly, but you must react properly.  What does it mean to react properly?  You and your broker MUST know whether the offer is competitive.   To know  the offer is competitive, you must understand three things:

 

  • Current Market Offerings:  How many other aircraft of the same make/model are for sale, and where are they priced?  What are asking prices and projected “strike prices?  What are the confidential or “off-market” aircraft priced at?  At DJI, we use our research process to capture all of this data.   And, don’t underestimate the off-market airplanes for sale.  They represent a significant portion of the market, and they are often some of the better deals that drive the market pricing.  If a broker doesn’t keep you informed of the entire market, they aren’t giving you the real picture.  Without a good broker, you’re “flying blind”.

 

  • Recent Sales: What have similar aircraft recently sold for?  In the real estate business, you would ask, what are the “comps”?  This data is very closely guarded by most buyers and sellers of recent transactions, and only a well-researched and well-connected broker can provide you with this data.  In many cases, recent selling prices tell the story much more clearly than an analysis of 35 different asking prices, 50% of which are probably over-inflated prices with unrealistic sellers.

 

  • Market Trend Analysis: Where has the market been, and where is it going?  This is the most subjective part of market analysis, but it’s also extremely important, because it gives you the ability to evaluate an incoming offer in the context of trends.  This is especially important when there is a lower than usual selling volume in a particular market.  You may not have recent selling prices due to inactivity, so you must evaluate an offer based on its larger historical context.  At DJI, we keep selling price histories over many years, so that we know where the market is cyclically.

 

Now that you retained an excellent broker like DJI, you can be armed with this information as offers come “flying” in, or come “trickling” in.  You can suggest counter offers with confidence and market reinforcement, instead of just countering $150,000 or $350,000 below your asking price like you’ve always done.  You can do this with speed so you can show the Buyer that you are earnest and educated in your efforts to sell your airplane.  Many buyers are attracted to Sellers who are knowledgeable and represented by firms like DJI.  Buyers assume that, if the seller takes that much care in pricing and marketing their airplane, then the same seller must take similarly excellent care of their aircraft maintenance.

 

So, remember, even in a down market,  corporate jet sellers who sell with confidence will always win the race.

 

Shawn Dinning, Director of Sales & Acquisitions

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

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

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