Aircraft Sales Insights

A Service of Dallas Jet International

The Aircraft Sales Market is Improving for Large-Cabin, Newer Airplanes

March 30th, 2011 Posted in Brad Harris
Mar , 30 20 11
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We’re seeing that the aircraft sales market is improving, at least for some aircraft, 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.

aircraft sales market is improving

You can see from the chart that first quarter sales for 2011 have eclipsed the first half year in the previous two years.  The trend line displayed is conservative, since the last period reported is a quarter rather than a half year. Other brokers are reporting similar results.

This is a good sign indicating aircraft values will improve as surplus inventory is sold. Buyers are back in the game, but they are being selective.  Demand is improving most for large cabin aircraft that are well-equipped, low time, and newer than 10 years old.   Demand for small to mid-cabin and older aircraft remains flat to slightly appreciating. Demand is still depreciating for aircraft older than 20 years that are higher time and less well-equipped.

Gulfstream 550 Transaction Values

A Gulfstream 550 is a newer, large-cabin aircraft.  We saw the values dip in 2010 and then begin to recover in 2011 as pictured above.

Older & smaller aircraft transaction values

This chart shows the continued (but possibly reducing rate of) decline of values of mid-sized, older aircraft.  The Hawker 800XPs on the market tend to be in the range of 10 years old or so, and Falcon 50s were made until 1996 (replaced by the Falcon 50EX) and are therefore at least 15 years old.

Aircraft Sales - time on the market

Again, we see that larger, newer aircraft are spending less time on the market than mid-sized older models.

Chart - Number of aircraft on the market

We see owners re-entering the market, up from a low in 2010.  While demand will continue to strengthen for large, new aircraft, we suspect that prices will remain low for the smaller, older aircraft for the near future due to the increasing number of aircraft entering the market.

Of course, you don’t always have a choice of when to buy or sell an aircraft. The market is one of many factors you need to consider, as well as your business transportation needs, budget, cash flow and other timing considerations.  We use extensive, custom research to make the most successful transaction possible out of every aircraft purchase or sale.

If you have the option, now is a great time to sell if you have a larger, newer, better–equipped aircraft.   Now is a great time to buy if you’re looking for a mid-size or smaller cabin, older aircraft.

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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The (Air)Speed of Business

March 14th, 2011 Posted in Aircraft Cost, Aircraft Leasing, Aircraft Sales, Shawn Dinning
Mar , 14 20 11
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Most people are surprised when they hear me say that the airplane business often moves at lightning speed.  In one of the worst down markets since the inception of business aviation, it would seem logical that everything moves with the speed of a tortoise.  When you analyze the aggregate numbers of the current market and the rate and volume of transactions, it truly is moving slower than normal.  Values are at record lows, with some markets continuing subtle descents.  So, how can our current business environment be associated with speed?

Speed will get you the very best airplanes.  What we are seeing today is that most airplanes that are transacting are on the market for a very brief period of time, as compared to the airplanes that are not transacting.   I’ve seen airplanes last as little as 2 days on the market, even in this environment.  Quality always goes first.  It is the broker’s job to get our clients first in line to this quality, “best deal” airplane.  We do this by being nimble, quick, decisive, and proactive.  Each day we study and research the various business aircraft markets, and  educate our clients on the statistics of the markets as well as past and predicted trends.   By providing that “market intelligence”, we give our clients the confidence they need to act swiftly when the right deal presents itself.

How does the best deal present itself?  My experience indicates that it presents itself in one of 3 ways:

  • Unannounced, aggressive price reduction. A seller makes the decision to aggressively reduce their price after watching their aircraft sit on the market for months with little to no interest.  The reasons for the price reduction could be many, but the bottom line is that there is a sudden price reduction.  The relationships that DJI has with all of the various brokerage firms who, like us, represent sellers, prove invaluable here.  Guess who the seller’s broker is going to call before they announce the price reduction to the retail open market?  They are going to call me and many of my peers first.  Because of these relationships DJI will always have news of a price reduction before the open market hears about it.  By capturing that information early, we can position our clients first in line to the deal.
  • A transaction falls through, suddenly making a quality airplane available again. There is always a relatively high chance that an aircraft deal can fall through.  Our motto is to never give up on a good deal.  It’s not sold until it’s sold!  DJI’s staff tracks pending deals in the various business aircraft markets.  By doing this, we will know a deal is falling through before the open market.   Again, this knowledge allows us to act quickly and swiftly to get our buying clients first in line to the best values.
  • An airplane is being newly offered.  If you wonder how a $10 or $20 million airplane can sit on the market for only 3 days, wonder no more.  I can assure you that the buyer and the respective agent knew about that airplane well before it hit the market.  Again, the market intelligence that we provide will get our clients first in line to the deal.  A large number of the best value aircraft transactions are consummated before even being published on the open market.

The only way to acquire this solid market intelligence and capitalize on the best value aircraft is to retain the professional services of a broker such as DJI, that conducts this level of research.  Speed and market intelligence provide our buyers an unmatched competitive advantage over unrepresented buyers in this marketplace.  The best deals are won with quickness and confidence, even in a Buyer’s market.

As our readers may know, approximately 50% of DJI’s brokerage business is representing sellers.  In a future article, I will write on the importance of speed and market intelligence in the aircraft selling process.  The consequences for sellers are significant if they do not have the proper information to act swiftly and confidently in the marketing and pricing of their 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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What questions would you like to ask an aircraft sales specialist?

February 24th, 2011 Posted in Aircraft Sales
Feb , 24 20 11
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aircraft sales specialistSelecting someone to guide you through an aircraft sale or purchase is an important decision.  Before you select the right aircraft sales specialist, you probably will ask several questions and evaluate the answers.

A reporter recently asked Brad these questions for an article. We thought they were good ones, so we’ll start with these.

Question – How do customers in different countries have different expectations, or negotiate differently?

Brad Harris – This is a casual transaction for the American customer, who is often referred by another customer. We find that Americans use the Internet and the news media, and are quite astute about the aircraft before they call us. It’s a very relationship driven transaction from that point forward. We spend as much time as needed educating the customer. When we look at the culture in the Middle East, Asia and Europe, all of those cultures are different. An excellent broker will understand those cultures. As an example, we have a particular customer in the Middle East who doesn’t want to sign a document guaranteeing exclusive representation, but they give us their word that they will use us and they do. It’s all about trust, time, and referrals from other clients.

Question –  How long does it take to buy or sell and airplane?

Brad Harris – Every client has a different situation. Every client has an ideal timeframe that suits his or her financial picture, business transportation needs, geography requirements, dependency on the sale of another aircraft, price requirements, flexibility, and so on. One person might need an aircraft immediately; in that situation we would shop for a retail aircraft. The objective is to buy the best aircraft at the best price you can find that’s on the market now. That transaction usually includes one week of negotiations, one week for the pre-buy phase when we fix any discrepancies, and then we close in the third week. That said, we just closed a G-IV transaction within one week from start to finish, when we simply reviewed an inspection that had already been done. The longest transactions usually happen when a client has very particular requirements in terms of price or a particular aircraft. It could take several months to identify the ideal aircraft, and then several months again to wait for the right price opportunity.

Question – What are the most common problem that occurs in the transaction process?

Brad Harris – The most common problem is incorrect pricing. The market intelligence for price is very well defined. Of course we reference the Aircraft Bluebook and the VREF values but we also create a complete market summary with transactions over the last six to twelve months. With that information, we can price an aircraft very well. But if someone doesn’t have good representation; they might get ideas from friends or pilots or other brokers that aren’t factual and well-researched. They might overbuy, or buy something cheap. A buyer might not understand what’s hidden behind a low price – damage history, missing records, a big inspection coming due, engines coming due. So it comes down to experience and knowledge and someone you can trust to represent you so that you don’t get caught with those gremlins.

Question – Is it stressful to be in the aircraft sales business?

Brad Harris – The typical aircraft sales representative has a very good life. It’s a very small community and we all tend to know each other and get along fairly well. I will tell you that it can be stressful at times. We have a passion for aviation and long-lasting relationships with our customers and clients, and our strongest suit is that we are problem solvers. To do that, you have to have quality people that are willing to put in the extra hours and the extra travel. We manage the entire transaction process from start to finish, so we have Dallas Jet employees on site for every inspection and for every test flight. We review the data, we understand the airplane, oversee the prebuy inspection, so of course there is a lot of travel. It is very helpful when a sales rep has a very supportive family that understands what you do and how you do it. That really helps manage the stress. In the end it’s a great lifestyle and a great group of people.

Question –  How do you handle a customer whose heart is set on an unsuitable aircraft?

Brad Harris – About twenty to thirty percent of the time, clients come to us with an aircraft in mind. Part of our process is to define the need. We must know the requirements for that particular customer. What range are they flying? How long are they staying, so how much baggage space do they need? Are they operating in high and hot environments, mountainous terrain, or overseas? Once you put those requirements together, you can present the best aircraft for them. Even if they’ve come in with ideas from people they’ve talked with on the golf course or other casual business setting, we find that ninety nine percent of the time, they will listen to what we have to say. But it’s ultimately their decision and we will help them buy the aircraft that they decide on.

Question –  Do buyers always expect a test flight, and how do you assess their seriousness?

Brad Harris – Buyers always expect (and should expect) a test flight. We typically arrange for the test flight to be from the home base of the aircraft to the maintenance facility where they’re going to complete the prebuy inspection. We will not provide a test flight without a letter of intent or formal purchase agreement executed, with a refundable deposit in escrow. What that means is that if they reject the aircraft after the test flight, the buyer will pay for those costs.

What questions would you like to ask?

 

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 Sales and Acquisitions in Today’s Market – A Conversation with DJI’s Shawn Dinning

February 3rd, 2011 Posted in Aircraft Cost, Aircraft Leasing, Aircraft Sales, Shawn Dinning
Feb , 03 20 11
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Shawn Dinning, Dallas Jet International’s Managing Director of Sales discusses his background and approach to aircraft sales.

Photo by Shawn Dinning, Dallas Jet international's Managing Director of Sales

As Brad Harris noted in his article, the primary asset Dallas Jet International brings to bear in an aircraft transaction is the experience and expertise of the  professionals assigned to our clients’ aircraft sales transactions.  So, this article will delve into the background and motivations of that other professional – namely, me.

My position at Dallas Jet International is Managing Director of Aircraft Sales and Acquisitions.  Aircraft transactions are my domain, and I manage the aircraft purchase and sale process comprehensively for my clients from beginning to end.  Usually, when a client begins the aircraft transaction process, we will assign the project to Brad or myself, usually (but not always) based on who has the relationship with the client.  In some cases, there may be an aircraft transaction  involving an aircraft with which one of us has significant expertise that would be useful in getting the best outcome for our client. From that point on, that “project manager” will lead the transaction through completion.   There are times when Brad and I feel that we can effect the best outcome for a particular client’s situation by working together.  The rest of our company team supports the transaction process.  Dallas Jets International  provides the very best aircraft transaction experience in the world, bar none, because our system is so comprehensive and holistic.

As an example, one of my clients called me last month to tell me that he bought a yacht and a high-end auction car at the end of the year.  He said the buying process was horrendous compared to his last aircraft purchase experience with Dallas Jet as his acquisition agent, and for equipment that was not nearly as complex or expensive as the aircraft he had purchased.  Maybe he will become our first client if DJI decides to get into the yacht brokerage business!

Finding My Calling

I didn’t always want to be an aircraft transaction specialist and consultant.  My entrance into aviation came from my goal to be a fighter pilot in the US military.  And that, really, came from my exposure to many of my parents’ pilot friends who had flown in the US military.  I am the son of an airline captain and flight attendant.  Obviously, my immediate family was steeped into the aviation tradition, and that’s how I caught the bug.

I figured out that the best chance I had to get into the cockpit of an F-15 in the Air Force was to apply to the United States Air Force Academy in Colorado Springs, Colorado.  Everybody told me I was crazy because they only accepted people who had 1600 SAT scores and who were in the Boy Scouts since birth, neither of which described my credentials.  Nevertheless, I applied through the recommended channels for a Congressional Nomination and for an Appointment to the Air Force Academy and the Naval Academy at Annapolis.  The Naval Academy was my backup, and I would have gone there in a heartbeat.  I received the letter confirming my congressional nomination from the U.S.  House of Representatives and the letter confirming my appointment to the Air Force Academy within 1 day of each other.  The appointment letter arrived on Christmas Eve!

In a bad stroke of luck, a medical ruling during my Junior Year (3rd year) at the Academy derailed me from pilot training.  In one 30 minute doctor’s visit, things changed dramatically for me.

Fast forward several years and economic cycles later, I pursued my dream to fly via the civilian world.  About 5000 hours into my flying career, I had the pleasure and fortune of meeting Mr. Brad Harris (CEO of Dallas Jet International) at a private airport in Fort Worth.  It was a random encounter, and nobody introduced us. We just started to talk.  He invited me to go sit with him in one of his client’s airplanes, as he told me about the business that he was running.  It sounded like a match made in heaven for me.  For the next 8 months, I followed up with more emails and phone calls than Brad knew what to do with.  He finally offered me a position to learn and eventually oversee the day-to-day transaction operation at Dallas Jet International.  He said that my academic, military, business, and flying backgrounds would be a perfect fit for the company’s vision of hiring the best people in the business and growing the list of satisfied airplane owners and clients.  Brad Harris has been one of the best mentors I could ask for, and has groomed me to contribute significantly to the success that our company currently enjoys.

My Favorite Part of the Profession

In its purest form, an aircraft broker and transaction consultant is all about obtaining the highest price in the minimum time for a selling client, and getting the best airplane for the best price for a buying client.  If we didn’t save a lot of money and heartache for our clients, we wouldn’t be in business.  And to be clear, we save our clients a lot of money and many hundreds of hours of wasted effort.  And, as much as I love saving other people’s money, I value the relationships more than anything.   Make no mistake that trust and relationships are at the heart of any successful aviation brokerage firm.  Trust is the number one reason I am hired to represent a client in his multi-million dollar aircraft transaction.  I wouldn’t want it any other way.

On Buying Aircraft

It is important to know that I truly get to represent the interests of the airplane buyer, and I don’t have to promote a bias toward a particular manufacturer or type of aircraft.  This is such a key aspect of the value that Dallas Jet brings to the aircraft transaction process.  So many people think that we represent a certain line of airplanes, or that we collect referral fees from sellers who want us to push an airplane on our buying clients.  Of course this doesn’t happen at Dallas Jet, but it has been known to happen in this very unregulated business in which we compete.  Every buying client’s situation is different, and it is my job to gain a very detailed understanding of the client’s needs before I recommend the type and serial number of airplane to pursue.  No client or transaction is the same, and I absolutely love that!  I’ve placed clients into Gulfstream, Bombardier Lear/Challenger/Global, Dassault Falcon, Cessna Citation, Hawker Beechcraft, Embraer, Pilatus, and Piaggio aircraft.  It all depends on the client’s particular requirements and mission, and it is really crucial for me to have the freedom to make the best recommendation for that situation.

On Selling Aircraft

Representing sellers is much more challenging in this market, but nonetheless enjoyable.  I particularly enjoy the opportunity to get to know that particular airplane and its attributes so well that I can represent the airplane as though I had been the owner for the last several years.  With this knowledge, I can represent the aircraft in its best light, because every airplane really is unique.  It is my job to spend several days with the aircraft to learn who maintained it, what post-delivery modifications have been done, the status of maintenance inspections, and what options that set it apart from other competing aircraft on the market.  In many cases, I already know the airplane very well because I have represented it in previous transactions.  In some cases, I’ve even flown the aircraft.  Next, I  get to know all of the competing airplanes of the same make/model that are also on the market.  And, I have to be able to explain the reasons why a prospective buyer should buy one type of airplane over the other, because buyers these days always seem to be considering multiple types of aircraft.  This is where our hands on knowledge of the various airplanes available pays dividends.  Between Brad and I, we’ve flown/managed/operated most of the business aircraft out there.  We have 12 jet type ratings and 14,000 hours between the two of us.  It is essential to know the pros/cons of every aircraft out there, without bias.

My Advice for Potential Sellers

The number one mistake that sellers make in today’s market is either overpricing or underpricing their aircraft.  Both mistakes can cost an airplane owner hundreds of thousands, if not millions, of dollars in lost sales proceeds or in extended holding costs.

The number one reason airplanes are incorrectly priced is either consultation with an inexperienced broker, or no broker consultation at all.  Our market research process at DJI provides our customers with the confidence they need to price the airplane to sell, with no money “left behind on the table.”   Secondly, the selling process can expose an aircraft owner to so much un-needed risk, and it is my job to protect and even “shepherd” my clients through that process, so that they are not taken advantage of.  Protecting my clients’ interest throughout the selling process and making it smoother than my client expected is certainly the most rewarding part of selling the aircraft.  My advice for prospective aircraft sellers and buyers?  Hire a good broker!  Better yet, hire DJI!

The Future of Aircraft Sales

As we all know, information is king in the 21st century.  The speed and availability of information has certainly transformed the world of aircraft transactions.  The internet revolution is the main contributor, and has made non-detailed market information available to the aircraft end user.  As we say in the business, it’s just enough information for the aircraft end user to be dangerous and really make a poor decision   One of the enormous emphasis points at Dallas Jet International is to stay ahead of the flow of information.  If you fall behind the leading edge of current market information, you lose significant negotiating power, and your clients lose on buying and selling opportunities.  We never let that happen at DJI.  Our clients are the best-informed in the business.  We are constantly developing techniques and systems to deliver information to our clients faster than the internet or our fiercest competitors.

And, despite all of the technology and information flow, buying and selling airplanes has become more complicated, particularly with a growing number of international buyers/sellers and various governing bodies throughout the world, all of which have something to say about buying and selling airplanes.

Technology is accelerating faster than ever.

However, it still takes old-fashioned values of attention to detail, valuable professional relationships, attentive customer service, and unparalleled expertise to move airplanes in today’s dynamic business environment.

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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Where Brad Harris is Coming From, And Where Dallas Jet International is Going

January 20th, 2011 Posted in Aircraft Sales, Background/Industry, Brad Harris
Jan , 20 20 11
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Brad Harris of Dallas Jet International specializes in ensuring an airplane for sale meets his client's needsWe will be publishing articles to this site that will have high value for you when you buy, sell, lease, or engage a company to manage your aircraft.

Of course, articles that you read on the internet are only as credible as the person behind them, so I’ll start by introducing myself. I’ll give you a thumbnail sketch of my background and the genesis of Dallas Jet International.  I’ll also discuss the major influencing factors for the way I do business.

Before Dallas Jet International, there was . . .

My name is Brad Harris, and I got into this business by way of several other businesses and fields.  I went through three and a half years of architectural school and discovered that wasn’t what I wanted to do, so I changed majors and graduated from Louisiana Tech University with a Bachelor of Science in Professional Aviation and Airway Science.

I followed that by earning a Master’s Degree in Industrial Organizational Psychology /Human Relations and Supervision.

After teaching Aircraft Electrical Systems for Louisiana Tech for 2 quarters, I started working with International Paper as a corporate pilot. The Chief Pilot, a gentleman by the name of Jim Cook became one of four mentors who were really instrumental in my life. After I told Jim about my plans to start another company leasing airplanes, he agreed to let me fly without assigning the usual administrative duties, since I wanted to devote time to my new venture.

I began leasing aircraft about the same time I was flying with International Paper.   Within three or four months, my leasing company was profitable, so I left my position there to operate Brad Harris Aviation, Inc.

I operated Brad Harris Aviation, Inc. for a little more than a year when  one of my customers asked me to help him buy an aircraft, which I did.   He later asked – “What do I do about a crew, and maintenance?”  That started the aircraft management business – we hired pilots and handled maintenance starting in 1993. Then another customer wanted to buy his own aircraft; we helped him, and at his request, we managed his crew and maintenance as well.

We eventually grew into three different organizations

  • Brad Harris Aviation, Inc.
  • Aviation Management Inc.
  • Sky Air Aviation, LLC.

A Wide Variety of Business Experience

As we continued to grow, we invested in real estate,  a restaurant as an owner, built a subdivision and some spec houses.  This range of experience helps me to really understand our clients, and the needs and pressures they experience in the many different types of businesses they operate.

Moving to Dallas, and the start of Dallas Jet International

I sold three airplanes to a gentleman in Dallas.   He asked me to move to Dallas to manage his aircraft. I moved from Fairhope, Alabama to Dallas in 2002 and combined those companies into Dallas Jet International.

At Dallas Jet International, we currently have six divisions

  • Aircraft Sales (we buy and sell aircraft)
  • Aircraft Brokerage (we represent buyers and sellers)
  • Aircraft Management
  • Aviation Insurance
  • Aircraft Leasing
  • Aircraft Consulting

The Sales Division purchases aircraft for dealer inventory. We purchase aircraft from manufacturers, brokers, companies and individuals.

The Brokerage division represents the buyer side, or the seller, or we may do both with one customer.  Some of our clients call and say “Brad, I’m interested in selling our airplane and buying another.”   We are able to represent that client for the sale and the following acquisition.

Insurance, Leasing and Consulting will be the topics of future articles.

Operational Brokers and Experienced, Type-Rated Pilots

What sets us apart from the industry is that we are operational aircraft brokers.

We obviously understand the market and the costs, but we also understand the flight characteristics and operational parameters because we are type rated (or we become type rated) in aircraft we manage.  When a customer calls us and says “We want to buy a certain airplane,” Shawn and I are able to look at the situation as a businessperson sees it, and also as a pilot sees it.  I may only get to fly it infrequently, but I learn to really understand how to manage that aircraft type.

When our maintenance guy calls and tells us “We have a problem with this aircraft,” I understand the systems of the airplane.  I have an understanding of what is necessary to control costs and to really diagnose what the airplane needs from a management and sales perspective.

There are a lot of “book brokers.” When you call them and ask “What are the operational differences between a Gulfstream IVSP versus a Gulfstream V?” they will read to you from a book or a computer program. I currently have 10 type ratings and I am type rated in the Gulfstream 550, 450, 350,the GV, the GIV, the GIII, and the GII.  Of course, we also have the book; but the hands-on experience is even more relevant from a sales perspective.

A Detailed Process

We take ownership of the transaction, and the fiduciary responsibility to protect or buyer’s or seller’s interests. We take this responsibility very seriously and have developed a detailed process to ensure a flawless transaction.

Our process includes contracts, maintenance, delivery, insurance, and all other technical processes.  Our company goal is to build relationships for a lifetime. We’re aircraft market specialists,  in the relationship business.   We oversee an extensive transaction process that could include asset acquisition, refit, management and/or sales.

The Future of Buying and Selling Aircraft

Ten years ago, buying or selling an aircraft was an entirely in-person, across the table, shake your hand experience.  Now, there is a lot of technology involved. Buyers do research on the Internet, and we’re using social media to stay connected for the convenience of our buyers and sellers.

We have to understand where the market is and how to adapt to make the process more convenient and efficient for our buyers and sellers, without taking away from the trusted in-person relationships and sales skills that will always be necessary.

We use the Internet, social media, and digital marketing so that our company will always be a trendsetter.

This blog is an example of how we reach out to provide information that is more convenient for you. Please join us here often, feel free to comment on what you read, or give us a call if you have a question, concern or would like assistance with an aircraft transaction.

 

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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Dallas Jet International Partners with ABCI to Promote Jet Consultancy

January 6th, 2011 Posted in Aircraft Sales, Background/Industry
Jan , 06 20 11
1 Comment »
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ABCI Logo Dallas Jet International Logo

Press Release

Dallas Jet International Partners with ABCI to Promote Jet Consultancy

Experienced and thorough consultants for sales and acquisitions of aircraft.

January 6, 2010 – Aviation Business Consultants International (ABCI) today announced that they have been engaged as a marketing partner for Dallas Jet International (DJI.)

“Although there are many brokers in the aviation market, we’ve not found consultants who are more qualified. Dallas Jet International has unmatched relationships, accreditations and ratings in more aircraft, with more years of experience.“ said Paula Williams of ABCI.  “We are very choosy about our clients.  Everything that has been said about DJI has been positive, which is not the case with all acquisition and sales consultants. There are not many that exercise the kind of thoroughness and care that Brad Harris and Shawn Dinning put into every transaction. They insist on being personally present for inspections and showings, and they have a 100-point checklist for every transaction! I look forward to learning from them.” said Williams.

“We recognized the need to communicate with our customers in new ways. Most Global Fortune 100 companies are using Twitter, Facebook, LinkedIn and YouTube. More than half of NBAA members are using Facebook regularly.  Because we’ve always been an innovator in marketing aircraft, we are very interested in the powerful new tools that ABCI brings to the service we offer our clients.” said Brad Harris of DJI.  “We were initially looking to hire an internal resource to manage this type of marketing, but ABCI offered a unique set of skills, together with aviation experience and contacts that we could not find after seven months of interviewing.”

Dallas Jet International has launched a blog, Aircraft Sales Insights. (https://aircraftsalesinsights.com) as well as consumer assistance channels on Twitter, Facebook and LinkedIn.

Articles are written by founder and CEO Brad Harris and Director of Sales and Acquisitions Shawn Dinning and will include topics of interest to aircraft owners, such as:

  • How to choose the right aircraft
  • How to find the best aircraft from on market and off-market options
  • Key points of the negotiation process
  • Demystifying Contracts, Letters of Intent and the Purchase Agreement
  • Points to consider – tax consequences of aircraft purchase decisions
  • What to look for in pre-buy inspections
  • Records to check (A.D.s, maintenance schedule, etc.)
  • Choosing the best Escrow Service
  • What you should know about bills of sale
  • What’s expected during Acceptance & Delivery
  • In what state (or country) should you register your aircraft?
Dallas Jet International’s blog offers straight answers on the often-obscure topic of aircraft sales and acquisition.

Dallas Jet International’s blog offers straight answers on the often-obscure topic of aircraft sales and acquisition.

About ABCI  LLC

Aviation Business Consultants International (ABCI) specializes in marketing for the aviation industry, including business and general aviation.  Paula Williams is a contributor to the Forbes business aviation blog Wheels Up and the author of Flight Plan to Sales Success – New Media Marketing in the Aviation Industry.

About Dallas Jet International Inc. (DJI)

Dallas Jet International focuses on buying and selling business aircraft in the international marketplace.  DJI holds a membership in the stringent National Aircraft Resale Association. Clients include GE Capital, U.S. Bank, Starwood Group and Moody National Companies. DJI’s principals have more than 100 years of experience in corporate aviation.

All other company and product names and logos are trademarks or service marks of their respective owners.

Please direct all press inquiries to:

Paula Williams

Marketing

ABCI

2248 Meridian Blvd Suite H

Minden NV 89423

702-987-1679

Paula.williams@AviationBusinessConsultants.com

www.AviationBusinessConsultants.com

Full-resolution images and interviews are available with the following:

Brad Harris, Founder and CEO

Mr. Harris holds a Bachelor of Science Degree in Professional Aviation and Airway Science and a Masters Degree in Industrial Organizational Psychology and 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 known today as Dallas Jet International. Mr. Harris holds a current Airline Transport Pilot  (ATP) certificate  and 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.

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. Mr. Harris has also acquired 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.

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 12 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 Challenger 600 and Citation 510 Mustang.  He has logged over 5000 flight hours, with 3000 of those hours in corporate turbine aircraft.

Mr. Dinning is a leader in the professional marketing and procurement of corporate turbine aircraft all around the globe. He also specializes in aircraft mission analysis as well as cash flow and operating cost analysis for private aircraft owners.

Dallas Jet International Inc. can be found online at:

Website:          www.DallasJet.com

Blog:                www.AircraftSalesInsights.com

Twitter            www.Twitter.com/DallasJet or @DallasJet

Facebook         www.facebook.com/pages/Dallas-Jet-International/135694743112495

LinkedIn         www.linkedin.com/company/1640851

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Aircraft Sales Insights – For Straight Answers About Buying and Selling Airplanes

December 23rd, 2010 Posted in Aircraft Sales, Background/Industry
Dec , 23 20 10
1 Comment »
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Look for informative and actionable articles from Brad Harris and Shawn Dinning, consultants who know airplanes and answer questions about buying and selling airplanes with . . . straight answers.

We welcome your questions and comments about the purchase and sale of aircraft.

Your Aircraft Sales and Acquisition Team.

Questions and answers about buying and selling airplanes, answered by Brad Harris, DJI founderBrad 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.

Shawn Dinning

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 15 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 Challenger 600 and Citation 510 Mustang.  He has logged over 5000 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, 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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