Recently, we began to produce professional sales video presentations for the aircraft we have for sale. They have been very well received as they really help a prospect “feel” the surroundings. Seems like a novel idea right? Now comes the fun stuff. In 1985 I hired a PR/Advertising firm in Houston, Texas, to help me build the graphics for my company’s brand. They produced the logo we still use today, along with all of the collateral sales and marketing materials, including business cards, stationary, folders and a brochure. Oh yes, one more thing, a video presentation of aircraft we had for sale. I was sitting with my sons Josh and Adam last week looking at the new video presentations and excused myself for a few minutes. When I came back I asked them if they knew where our old VHS machine was, we hunted around, found it, hooked it up and I slid in a video that this company made in 1985. I hope you will indulge me for five minutes and fifteen seconds. So now when aircraft sales companies say, ”We are producing a first of a kind video presentation for aircraft we have for sale, we are first!” I beg to differ. Click on the link below and stroll back in time with me. I think you will find this to be a worthwhile trip! I have also attached a link to our new videos. Except for the format, now delivered via Youtube, the value is the same. By the way, speaking of memory lane, I also found a Beta tape with a sales and marketing video I made for Piper Aircraft in 1978ish with John Leahy, who at the time was Business Development Manager for Piper Aircraft and is now the COO of Airbus. My we have all come a long way. Stay tuned, I will let everyone know when I put that up for viewing.
Last week I attended the Conklin & de Decker Aircraft Acquisition Planning seminar in Scottsdale, Arizona with my father, Jay Mesinger. This was the 11th annual conference and I would recommend it to anyone thinking about aircraft ownership for themselves or their corporation. The complexities of owning such a high dollar asset are not to be taken lightly and the more information you can glean from experienced professionals the better off you will be.
My father gave the opening presentation on making the case for business aviation. He has been writing extensively on this topic throughout his career and most recently in the series Business Aviation and the Boardroom in World Aircraft Sales. In these articles he details the various steps and planning needed to present the values of business aviation to a corporate board. The presentations at this seminar were very informative and dealt with everything from management and operating costs to budgeting, taxes and insurance. It was great information for the first time buyer or the head of a flight department looking to gain a more insight into the complexities of ownership and fleet transition. The conference was a wonderful experience for me as I navigate my new career in aviation and learn all of the facets involved. At the same time, we can’t be experts in all things and at our firm we don’t try to be. There are many great tax experts, legal experts, management companies and others in our industry. We always refer each specific piece of the transaction to our skilled peers in the industry and then work as a team to best accomplish our mutual clients’ goals. It is, however, important to understand the challenges a buyer faces in the purchasing process, but you do not want to be liable for a legal opinion or tax guidance when that might not be your field of work.
When I worked in television I would always attend the finance and tax seminars related to the entertainment industry so I could stay on top of new regulations and trends as well as have the opportunity to meet peers and prospects in the process. I want to thank everyone for the meals and the information sharing, as well as a big thank you to the entire Conklin & de Decker team for hosting a great seminar. It was a pleasure to meet you all and I look forward to working with you in the future. Since joining the family business and this industry I have met some great people who have welcomed me with open arms and I am appreciative of all the support and guidance.
We recently listed a 1999 Gulfstream IV-SP for sale based in Abu Dhabi, United Arab Emirates. The aircraft, Serial Number 1381, is a low time aircraft with 3,000 hours total time and 360 hours on the engines since mid-life inspections. It is JAR-OPs and EASA certified with terrific avionic options and it is operated on a commercial certificate (like a Part 135 certificate). The interior is configured for 9 passengers with a forward galley, forward and aft lavatories and a VVIP divided aft cabin with a work station and sofa bed. We have quotes from interior shops that a buyer can review which outline the cost and process to change the sofa bed to a four passenger divan increasing the seating capacity from nine to thirteen. All major maintenance throughout the life of the Aircraft has been performed by Gulfstream in both Savannah and Las Vegas and also Jet Aviation in Basel and the engine mid-life inspections were performed by Rolls-Royce.
I will be traveling to Dubai to represent the aircraft in person and have it available for viewings at the Middle Eastern Business Aviation (MEBA) convention in Dubai, United Arab Emirates from December 7 – 9, 2010. If you will be there or you have a client in the region who would like to see it please stop by the Royal Jet static display or call my cell, +1 303-588-5728 and we can plan to connect at the show. It is always great to get out to the events to get a real sense of the market in these exciting growth areas around the world. Having such a fine piece of inventory and being able to have clients that make these showing opportunities a reality continue to demonstrate enormous value by actually putting a prospect in the aircraft. There is nothing like walking around the aircraft, sitting in the seats and actually surrounding the prospect with the offering to engage a buyer and get real offers and sell the aircraft. My thanks to both the owners of this aircraft and Royal Jet Aviation for their tremendous support. I will look forward to seeing those of you who will attend.
Please click on this link to watch a video about this exciting Gulfstream IV-SP.
Visit our website at www.jetsales.com for full specs and photos.
I am on a flight headed home after closing on the sale of a Falcon 2000 that we have been representing for sale. The Falcon 2000 market and the recent activity in it are a good example of how our aircraft markets are starting to find their footing one make and model at a time. There was a six month stretch this year where there was very little activity at all in the Falcon 2000 market. This past summer after several months of no activity we sat down to discuss the market with each of our clients. We believed that there were one of two things going on; there were either no buyers at any price or the entire Falcon 2000 market was still overpriced.
Based on evaluating traditional pricing spreads between different aircraft types it became obvious that the Falcon 2000 market had not adjusted far enough at that time to fit correctly into the product line up of all corporate aircraft types. We needed to look not just at competitive Falcon 2000s, but also other aircraft types that were experiencing activity to understand what prices of Falcon 2000s should have been. If the buyers in the market could not recognize value because they were able to source other competitive aircraft at more respectively competitive prices then they were not going to buy Falcon 2000s. The Falcon 2000s did not need to be priced exactly the same as these other aircraft, but they did need to be respectively competitive within the overall market for buyers to recognize value.
And, as it turned out, there were some buyers in the market; prices had just not adjusted to a respectively competitive place to make it a compelling market to pursue. Over the last two months there have been several Falcon 2000 sales. All of them have sold at prices that were lower than the sellers initially hoped for, but within respectively competitive price ranges where buyers were able to recognize value which is what made them ultimately step in. The Falcon 2000 market has finally found its footing in the competitive landscape and it offers incredible value for buyers in both capital costs and operating costs. One market at a time we are on our way to a healthier aircraft marketplace.
I hope you have a great Thanksgiving!
NBAA 2010 was a great experience for me. This having been my first show, I was able to learn so much about our industry and the people who are involved with it. Several of us from our organization participated in the Tax and Regulatory conference during the convention to stay on top of issues that are important to our clients. We always advise our clients to employ the help of legal, tax and insurance professionals, but it is important for us to understand the issues they face. Two issues discussed during the conference that really stood out were FAA re-registration requirements and making sure to match insurance amounts against the current fair market value of your asset. Included in this blog post are links to articles written by industry professionals on each topic. There are several great aviation attorneys and insurance experts in our industry and we always provide multiple names when giving referrals. The people whose articles we have included spoke on the respective topics at the Tax and Regulatory conference and these are just two of the leading experts for our industry in their respective fields.
The first issue that I want to highlight is FAA re-registration. A new process has recently been instituted and mandated and as of October 1, 2010 all aircraft owners who have purchased their aircraft before October 1, 2010 have to re-register their aircraft with the FAA on a pre-determined schedule. It is crucial to make sure you follow the FAA guidelines and time frame regarding this new policy. All aircraft that have been initially registered after October 1, 2010 will have to re-register in three years and the expiration date will be clear on your first registration. One of the presenters at the tax conference was Joanne Barbera of Barbera & Watkins, LLC. Please follow this link to read a fact sheet about re-registration that she wrote that will give you much more detailed information about the issue and provide an easy to read schedule for registration. Don’t forget to re-register or it won’t be wheels-up until you do!
The second issue that seemed very important in today’s environment of decreased aircraft value is insurance. It is necessary to have insurance for your aircraft, but what was made clear at the tax conference is how important it is to have the right amount of insurance. As your aircraft value changes, it is important to adjust the amount of coverage you carry. If your plane were to incur major damage to a degree that it might otherwise be scrapped and the aircraft is over insured, the insurance company will have an incentive to repair the aircraft, rather than scrap the aircraft. So be sure to adjust your insurance value to the current market value of your aircraft each year. Please follow this link to an article that Stuart Hope of Hope Aviation Insurance, one of our presenters at the conference, wrote for Business Jet Traveler about the six steps to buying the right policy. Step 3 specifically relates to the issue I’ve brought up.
I hope this information helps you regarding some of the big issues related to aircraft ownership that we found to be of significant importance during the NBAA 2010 Tax and Regulatory conference.
We just brought a 1995 model Challenger SE to the market. This is a great aircraft that offers a lot of efficiency and size for a low price at under $8,000,000. At the same time, not many people realize what the Challenger SE really is or its great value. As the seller’s broker it is our job to tell its story and help buyers understand why this might just be their perfect fit even though they have never considered it before.
The Challenger SE is the corporate aircraft evolution of Bombardier’s CRJ airliner product. That means that it was built for high utilization and a lot of cycles while providing airliner efficiency and reliability, but with Challenger familiarity. If you are used to operating a Challenger 600, 601 or 604 this will feel and operate very much the same. Depending on whether you use the extra range tank option, the range of the aircraft is between 2,000nm and 2,800nm. It is essentially the same size cabin as a Global Express and wider than a Gulfstream with larger baggage space than either one. And, per Conklin de Decker the hourly operating costs are $800.00 per hour less than a Gulfstream IV and similar to both a Challenger 604 and a Falcon 2000.
The current owner, who has been an aircraft owner for more than 20 years, bought this aircraft for both business and personal use. He owned a company with 11 facilities around the country and he needed to move teams of people to the various facilities regularly. Based in Gary, IN he was able to go to either coast non-stop. He would regularly load the aircraft with teams of people and take off to see one or multiple locations around the country in a single day. The size of the aircraft meant that everyone could spread out or move around and work in teams while traveling. Personally, the owner used the aircraft to travel with groups of family and friends both domestically and internationally.
We think that this will be a great surprise solution for an organization looking to move teams of people around the country and/or internationally to meet with clients, scout future locations or visit existing operations. Or, it could be the perfect solution for a large family or private individual to use for personal travel in great comfort and luxurious space. Regardless of which camp you fit into (or if you fit into both like the current owner) you will get all of this for a relatively low capital investment and sensible operating costs…a combination of size, benefits and price that you can’t find in competitive offerings. As I said, we’re excited about this project!
To learn more specifics about this aircraft visit our website at http://www.jetsales.com/inventory/CL850-7075.html.
To see a video highlighting this great Challenger SE and the details about it, please visit: http://www.youtube.com/watch?v=k1n94TWV800.
It has been a great show this year. The general mood has been upbeat and I believe it has been successful for everyone who participated. Last night at the 2010 Gala, NBAA helped raise more than $225,000 for the Corporate Angel Network (“CAN” – http://www.corpangelnetwork.org/). Congratulations to NBAA and everyone who donated! CAN is a great cause and this money will help the organization help children and adults with cancer get to treatment centers all over the country.
On Tuesday, my father Jay Mesinger moderated an excellent panel discussion about business aviation in Asia and China. The participants spoke to the opportunities and challenges that exist for business aviation in Asia and started to discuss steps to help advance the growth of our industry in the region. It became evident, however, that the challenges are real, and not all of the solutions are in place. This should be an area of continued attention and interest for our industry.
On Wednesday, I participated in a panel discussion on Social Media in Business Aviation and it was a success. The room was packed with people looking to learn how to incorporate social media into their corporate marketing and people who wanted to learn how to utilize the information disseminated through social media. I think we were able to help many people feel less intimidated and more knowledgeable about utilizing social media for themselves and their organizations.
During this week we were also able to connect several clients with vendors to facilitate future business and pre-purchase inspections.
As you can see it has been a busy week, but a successful one. Congratulations to everyone who has been here and to NBAA and our industry on a successful convention. Here is to all of our continued success and business throughout the next year.
I didn’t have a chance to write last night because I had to run right from the end of the tax conference to several evening events. But, that doesn’t mean that I didn’t see some great presentations and learn some very important industry updates. During the second day of the Tax, Regulatory & Risk Management Conference we saw presentations about: FAA Registration Issues, States Sales Tax, Importing and Exporting Aircraft and more. The FAA Registration Issues and new requirement for all aircraft owners to re-register their aircraft during a scheduled window of time is critical to maintaining currency in your registration. Letting your registration lapse can affect the perfection of liens, validity of your insurance and legal flight operations. Please watch our blog for further and more detailed updates on this topic.
Additionally, David Grizzle, FAA Chief Counsel gave the keynote speech and did an excellent job. In the beginning of his speech he quoted Wayne Gretzky when saying how he believes a good organization and/or process should work. “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” When you start a project, or in my case a negotiation, don’t just think about the moment, but think about the desired outcome. David has clearly kept this in mind during his tenure to date with the FAA and as a result been successful in his career there. I work to always think of the outcome (or where I want the puck to be) before I start something and I can tell you that it does make a positive difference!
Please don’t forget to attend Jay Mesinger’s presentation today: NBAA Business Aviation Update in Asia/China which will occur in Hall C Room 103 starting today, October 19th at 3:30PM. I will also be presenting on the NBAA Social Media in Business Aviation panel discussion tomorrow, Wednesday, October 20th from 4 to 5PM in Hall B Room 312. We hope to see you at our event!
Hi to all from Atlanta, it is Monday, October 18th. Just getting the final touches complete for my conference tomorrow on Operating Business Aircraft in China/Asia. This will be a case study presented by Jeff Lee, Aviation Director of IBM. He will lay out a set of requirements as well as his perceived challenges to begin to operate aircraft in the region. Speaking to his challenges and requirements will be experts from the region as well as the United States. I think everyone attending will leave with a wealth of information to help you and your companies not feel like you are blazing a trail! The event is scheduled for Tuesday, October 19th at 3:30 pm and presentations end at 5 with discussions and Q & A’s till 6 pm. It is being held in Hall C, room 102.
Also today I will be attending an NBAA Press conference where they will announce the future plans for the associations involvement with trade shows in China. Should be very exciting news!
On a personal note, it is great to have my wife Sandra, sons Josh and Adam as well as our daughter Jessica attending the convention as well as the NBAA Tax Conference. Makes for really great family discussions around the dinner table! Also here this week is Adam’s wife Ayeisha.
Many great events as well as chances to see old friends and make new ones as our collective industry dusts itself off and gets back to business. More tomorrow!
Today was the first day of the Tax, Regulatory & Risk Management Conference and the first day of events for the National Business Aviation Association’s 2010 Annual Convention in Atlanta, GA. The mood is upbeat and I believe the convention is supposed to be well attended. The actual NBAA Convention won’t open until Tuesday morning, but various events started today including the 2010 Tax, Regulatory & Risk Management Conference of which I attended with my brother Adam Mesinger and my sister Jessica Johnson, a tax attorney.
I have been to the tax conference before, but it is good to get updates on current regulations and issues. We saw several great presentations about topics including: basic FAR 91 & 135 issues, Excise Taxes, Personal Use of Business Aircraft, Entertainment Disallowances, Insurance Issues, Aircraft Leases (Rules & Tax Consequences) and Avoiding and Surviving an IRS Audit. There were several times during the presentations where I thought about current projects that we are working on and how the topic raised new questions or provided relevant thoughts that I will discuss with our clients. I also saw several old industry friends and made some new great contacts.
Later in the week my father Jay Mesinger will be moderating a discussion about business aviation in Asia/China (Tuesday, October 19th from 3:30 to 5PM in Hall C Room 102). And, I will be participating in a panel discussion about Social Media in business aviation (Wednesday, October 20th from 4:00 to 5:00PM in Hall B Room 312). If you’re in Atlanta this week I hope that you can join us for our respective presentations. I am proud to be here with my family as part of a successful family business. This should be a great week and I believe that NBAA 2010 is a successful one for our industry!