Wednesday, March 11, 2009
Tips on Selling or Buying Aircraft in Today's Economy
A friend of mine sent this to us the other day and it makes absolute sense out of the current economic conditions and thought we would pass it along. If it helps I will take all the credit but if not I don't know how it got sent out! IF YOU ARE SELLING: We are often finding now that the first offer that we receive, is the best offer that will be seen for the subject aircraft, regardless of how much lipstick is smeared on. IF YOU ARE SELLING OR BUYING: There is no such thing as a Wholesale figure. This should be eliminated from everyone's vocabulary, as it is an invalid concept, now. IF YOU ARE BUYING OR SELLING: Asking prices are irrelevant. Any prices listed at Globalair.com and other sites, that are noticeably higher than similar aircraft that appear to be realistically price, I can promise you that the higher priced aircraft cannot be bought and are not actually available for purchase. The people that are spending the money to continue advertising them at such ridiculous prices, are either doing it for egotistical reasons or they are appeasing a spouse/CFO/shareholders, or whatever.. IF YOU ARE WANTING TO SELL: Don't. You will probably have to sell at a price that is below the figure range that is burned into your comprehension. IF YOU ARE WANTING TO BUY: What are you waiting for? The water is lovely, and there are pretty of nice things to see down here, so get your kit off and dive in!
Tuesday, March 10, 2009
Guide to Making the Most of Corporate Aircraft
Guide to Making the Most of Corporate Aircraft
More than 14,000 American companies have a business aircraft. Critics see corporate jets as a symbol of waste and excess, but private business jets can have huge benefits. Corporate private aircrafts can help executives, employees and clients quickly travel to and from hard-to-reach rural locations that are not served by frequent commercial airline service. Purchasing a company jet is a major investment and not a decision to be taken lightly. So you will want to be sure you are making the most of corporate jets by:1. Figuring out if now is the right time to buy a business airplane.2. Finding ways to save money on your corporate private jet.3. Understanding the benefits and risks of buying a used corporate private aircraft.
Action Steps The best contacts and resources to help you get it done
Decide if you should buy a corporate jet A basic eight-seat corporate jet can easily start at $5 million. So before you go looking for corporate jets for sale, make sure your company will get a return on that investment. Figure out who would use the jet, where they would go and how often they would fly. Compare that cost to the annual costs of charter flights, and decide if the jet would pay for itself. I recommend: BNET has an excellent in-depth article that can help you decide if your company is ready for a corporate jet. Check out eHow to learn about many of the other expenses that go along with purchasing a private jet, such as renting a hanger and hiring a pilot and crew.
Shop for used private business jets You can save you a great deal of money by purchasing a used company jet। However, finding a used corporate jet can be difficult, and you will need to find someone to give it a complete inspection and test flight before the purchase.
More than 14,000 American companies have a business aircraft. Critics see corporate jets as a symbol of waste and excess, but private business jets can have huge benefits. Corporate private aircrafts can help executives, employees and clients quickly travel to and from hard-to-reach rural locations that are not served by frequent commercial airline service. Purchasing a company jet is a major investment and not a decision to be taken lightly. So you will want to be sure you are making the most of corporate jets by:1. Figuring out if now is the right time to buy a business airplane.2. Finding ways to save money on your corporate private jet.3. Understanding the benefits and risks of buying a used corporate private aircraft.
Action Steps The best contacts and resources to help you get it done
Decide if you should buy a corporate jet A basic eight-seat corporate jet can easily start at $5 million. So before you go looking for corporate jets for sale, make sure your company will get a return on that investment. Figure out who would use the jet, where they would go and how often they would fly. Compare that cost to the annual costs of charter flights, and decide if the jet would pay for itself. I recommend: BNET has an excellent in-depth article that can help you decide if your company is ready for a corporate jet. Check out eHow to learn about many of the other expenses that go along with purchasing a private jet, such as renting a hanger and hiring a pilot and crew.
Shop for used private business jets You can save you a great deal of money by purchasing a used company jet। However, finding a used corporate jet can be difficult, and you will need to find someone to give it a complete inspection and test flight before the purchase.
Wednesday, March 4, 2009
General Aviation’s place in today’s economy - A force for good?
Patricia Micheletti
Vice President ~ Corporate Aircraft charters
Well, there is no doubt about it, general aviation has been in the news and we can say that it has not been pretty. The big banks being under scrutiny during the bail-out hearings, have put a lot of negative attention on the industry. An Op-Ed in the New York Times published on January 31, 2009 (click here for the full story), works on de-mystifying general aviation, with the opening line reading: “BUSINESS jets are a force for good. Really.” I was really glad to see this story, because no one was looking at why these jets are being used. Don’t get me wrong, I am not for big executives running amuck with your money. No, what I am saying is that it is not as cut and dry an issue as presented thus far. From the inner walls of the industry, I watch and listen to what the media, politicians and citizens have to say about the use of business jets. I challenge those thoughts, and ask you to look further, to the beginning of this great industry. Why do we have general aviation? Is there a real purpose for it, and why would companies charter a private aircraft? Well, there are a multitude of answers to that question. As per the New York Times article, “The business jet is merely a tool - one that, employed correctly, could help those same struggling institutions soar again and start paying back the money owed”. It is a tool because there are over “5,000 or so public-use airports” across the US, that are only being used by general aviation, compared to the approximately 500 airports open to commercial aviation. This means direct access to remote locations, suburbs, and small towns. As the NY Times Op-Ed states: “If two companies are competing for business, the one using a business aircraft can fly directly to one of those smaller airports and get to lunch with the client before the other guys taking the commercial flights show up.” Not only are they there first, but those on the private aircraft can prepare in utter confidentiality for their meeting, making them not only first to arrive, but much better prepared. The fact of the matter is that these aircraft are “offices that move”. As an aircraft charter broker, I can tell you that there are instances when the cost of hotels, big salaries and per diems added to the cost of commercial flights make chartering more economical. This is because in certain instances (depending on distance) we can get in and out of a location the same day; and since these general aviation airports do not have curfews, this means that even if your meeting runs late, you can even leave in the wee hours of the morning, saving on the hotel and per diems, which allows for added efficiency by not having your employees loose a full day of work the day before and day after the meeting just for travel.
I do encourage you to read the NY times piece (click here for the full story), as they go on to explain how the aircraft manufacturing sector is affected and what that truly means to the economy.
As William Garvey the writer, and editor and chief of the magazine Business and Commercial Aviation, states in this op-ed: “ If you truly need to be there and there and there and back by seven, business aircraft may provide the only way. This is an industry that helps further the country’s commerce and interests – and it deserves a bright future, not a public drubbing”
Vice President ~ Corporate Aircraft charters
Well, there is no doubt about it, general aviation has been in the news and we can say that it has not been pretty. The big banks being under scrutiny during the bail-out hearings, have put a lot of negative attention on the industry. An Op-Ed in the New York Times published on January 31, 2009 (click here for the full story), works on de-mystifying general aviation, with the opening line reading: “BUSINESS jets are a force for good. Really.” I was really glad to see this story, because no one was looking at why these jets are being used. Don’t get me wrong, I am not for big executives running amuck with your money. No, what I am saying is that it is not as cut and dry an issue as presented thus far. From the inner walls of the industry, I watch and listen to what the media, politicians and citizens have to say about the use of business jets. I challenge those thoughts, and ask you to look further, to the beginning of this great industry. Why do we have general aviation? Is there a real purpose for it, and why would companies charter a private aircraft? Well, there are a multitude of answers to that question. As per the New York Times article, “The business jet is merely a tool - one that, employed correctly, could help those same struggling institutions soar again and start paying back the money owed”. It is a tool because there are over “5,000 or so public-use airports” across the US, that are only being used by general aviation, compared to the approximately 500 airports open to commercial aviation. This means direct access to remote locations, suburbs, and small towns. As the NY Times Op-Ed states: “If two companies are competing for business, the one using a business aircraft can fly directly to one of those smaller airports and get to lunch with the client before the other guys taking the commercial flights show up.” Not only are they there first, but those on the private aircraft can prepare in utter confidentiality for their meeting, making them not only first to arrive, but much better prepared. The fact of the matter is that these aircraft are “offices that move”. As an aircraft charter broker, I can tell you that there are instances when the cost of hotels, big salaries and per diems added to the cost of commercial flights make chartering more economical. This is because in certain instances (depending on distance) we can get in and out of a location the same day; and since these general aviation airports do not have curfews, this means that even if your meeting runs late, you can even leave in the wee hours of the morning, saving on the hotel and per diems, which allows for added efficiency by not having your employees loose a full day of work the day before and day after the meeting just for travel.
I do encourage you to read the NY times piece (click here for the full story), as they go on to explain how the aircraft manufacturing sector is affected and what that truly means to the economy.
As William Garvey the writer, and editor and chief of the magazine Business and Commercial Aviation, states in this op-ed: “ If you truly need to be there and there and there and back by seven, business aircraft may provide the only way. This is an industry that helps further the country’s commerce and interests – and it deserves a bright future, not a public drubbing”
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