Private Jet Detailing And Aircraft Cleaning Entrepreneurs Have Good News For 2017

The general aviation sector has been in the doldrums for quite a while. Some blame this on increased FAA (Federal Aviation Administration) regulations, much of which occurred after 9-11 to protect airports from potential terrorists, unfortunately these increased security requirements and increased regulations have stifled the general aviation (GA) sector. The economic crashes of 2000 and 2008 didn’t help, although in 2003 the economy was flying high thanks to Bush Tax Cuts and stimulus, then it hit a wall again and didn’t really do well until the run-up just before the 2008 crash.

The GA sector has only slightly recovered since then but not back to its 2003 highs. When Obama got elected he railed against Corporate Jets and Corporate Fat Cats which hurt jet sales and new aircraft sales. Remember when congress went after the Auto Makers for flying their corporate jets to Washington DC to beg for bailouts? Public sentiment against GA was at an all-time low.

All of this had hurt aircraft cleaners and jet detailers – it made it tough to make money, but it looks like things are changing and the number of GA Aircraft is increasing. This new Trump Administration is pro-Aviation unlike the Obama Administration. Cutting corporate taxes will also help GA and jet sales. It looks like clear skies ahead for those in the General Aviation services business.

There was a great article in AIN – Aircraft International News – December Edition titled; “UBS Bizjet Index Sees Post-election Surge,” by Chad Trautvetter posted on December 12, 2016 which noted the following facts; The new Trump Administration in the U.S. is widely seen as a positive, with 61 percent of those surveyed expecting the outcome of the U.S. presidential election to ultimately be positive for the business jet market, while 11 percent don’t see a positive impact and 28 percent are uncertain.

In fact the article went on to note that there was an increase of between 44-49% increased orders for private jets over last year. Many of those aircraft will be delivered by 2018, and the backlog will increase used aircraft sales and current new inventory. More aircraft certainly means more aircraft to clean and more new aircraft means more corporate detailing customers as well. Meanwhile, along with the fractional jet market, we see jet air-taxi services on the increase as well as Uber style aircraft ride-sharing plans smaller companies can buy into. All of this means the GA sector is ready to take off again and that’s good for business.

Private Jet Sales Approach in a Tough 2019 Buyer’s Market – Working With Trusting & Trusted Partners

2019 became a Buyer’s market since 55 of the Worldwide 404 operational Hawker 800XPs were now available for sale, (representing 14% of the entire fleet), making this a challenging market for selling a Hawker 800XP or other similar pre-owned private jet aircraft.

Consulting brokers, like The Private Jet Company, stay in constant touch with both buyers and sellers over years to answer any questions or concerns related to the private aviation industry, aircraft price trends, private jet ownership and future interests and as a result became trusted advisors for any private aviation matters.

Early in the inspection process our expert inspectors found out that after placing the aircraft with its new operator, the owner dropped the top-tier engine and APU maintenance service plans that had conveyed with the aircraft upon purchase. We advised the estate that the lack of the APU and engine programs was a significant reduction in the aircraft’s value.

The estate agreed with our recommendation and decided to re-enroll the aircraft on the top-tier engine and APU maintenance service program.

Even though the owner only flew 100 hours in the two years since the engines and APU had been un-enrolled from the maintenance service plan programs, the engine manufacturer, Honeywell, required a full enrollment inspection and performance evaluation of the engines prior to acceptance into a new APU maintenance program.

Upon the recommendation of The Private Jet Company, the estate engaged Dallas Airmotive to perform the engine re-enrollment inspection, since they did the 2011 Midlife Inspections for these engines. Upon re-inspection, the engines were found to be in excellent condition and Honeywell agreed to re-enroll the engines. Based on our direct negotiation with Honeywell on the re-enrollment buy-in amount we were able to secure a substantial discount for the owner.

With the 20-Year inspection completed and the engines and APU now re-enrolled on the top-tier programs, we contacted potential buyers who inquired about the aircraft. One buyer offered the best terms and after some negotiations on behalf of the estate, a purchase agreement was executed. The new owner was a King Air operator in the Midwest buying the firm’s first jet.

The buyer agreed to accept the recent 20-year G Inspection as their Pre-Purchase Inspection and a smooth transaction was concluded by the delivery of a highly upgraded, freshly inspected and fully program enrolled Hawker 800XP. Both buyer and seller were fully satisfied with the transaction and its outcome.