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Answering the 10 most-asked questions from first-time buyers

GLOBAL JET INTERNATIONAL BULLETIN

ANSWERING THE 10 MOST-ASKED QUESTIONS FROM FIRST-TIME BUYERS

Source: Jetcraft

The Covid-19 pandemic has brought safer travel into sharp relief in recent months, Jetcraft has received an increasing number of inquiries from first-time buyers who are looking to business aviation as the route to safe, flexible and controlled travel. Here, Jetcraft answer their most frequently asked questions.

What do I need to consider before I buy?

There are certain factors we need to understand to find the right jet for a buyer’s mission. Where do you want to fly to? How many people will be travelling at any one time? What’s your budget? Have you considered finance, or are you a cash purchaser? Once we’ve talked this through we start looking for the best aircraft.

If a potential buyer is not yet able to answer these questions, we will sit down with them and help them think about what they need and whether purchasing a jet is the right path for them.

Should I buy a new or pre-owned aircraft?

This really comes down to personal preference and budget, as there are clear benefits to both. Buying new, you will avail of a five-year warranty, which can be comforting to those unused to ownership.

We see some first-time buyers who want to test out having an aircraft, to help them understand whether it will work for them long-term. In this situation, the decision might be made with short-term ownership in mind where the buyer will reassess their aircraft and the value it brings themselves or their company in a few years. In this case, pre-owned provides an opportunity to experience ownership at a lower initial point of investment.

Concerns about safety and reliability shouldn’t put you off acquiring an older jet – a ten-year-old aircraft is maintained to the same standards as one that is brand new. Furthermore, we minimize the risk of older aircraft owners incurring potentially higher maintenance costs by performing extensive pre-purchase inspections. We also partner with JSSI to offer a free six-month, post-purchase, unscheduled maintenance program on select in-service aircraft purchased through Jetcraft, to provide extra peace of mind to our buyers.

Can I demo an aircraft before I buy?

Yes, and we’d encourage you to demo before purchase. If you haven’t flown in that model before, consider finding a charter company that operates the aircraft type and test it out on what would be a ‘typical’ mission for you. This is also a good way to try out different models or manufacturers so you have a feel for how big the cabin is, the comfort of the seats and the noise levels.

Should you wish to demo the specific aircraft on the market, usually the seller will look for some form of commitment, such as a letter of intent and a refundable deposit in escrow, before arranging a flight.

Can I purchase an aircraft from overseas during Covid-19?

Absolutely. Our boots on the ground global structure means we can find a deal anywhere in the world. Although travel is currently restricted, we are still keeping transactions going. For example, I’m currently working on a deal with a European buyer and a US seller, and my counterpart locally in the US is handling the pre-buy inspection and full review of the aircraft on my team’s behalf.

Should I disqualify an aircraft due to cosmetics?

It’s natural to gravitate towards details such as the color of the paint or leather; however, changing cosmetics is relatively simple and inexpensive compared to the overall cost of the aircraft. Replacing soft goods such as seat material and carpet is a cost-effective way to tailor the jet to your taste. Altering the configuration of the cabin is more expensive, but it can sometimes make sense to take that step, if the aircraft is otherwise right for you. If you are considering an aircraft that might need some updates, we can connect you with a completion center in your region.

Can I charter my aircraft to offset costs?

Charter is a great way to offset some of the costs of ownership. Most buyers will have chartered before, so the process is familiar, but you should consider whether you’re happy with someone else flying in your aircraft – and the more available it is for charter, the less time you’ll have for your own private use.  Another consideration when you’re choosing an aircraft is ensuring it’s capable of flying commercially in your region – certain countries and regions have specific rules and equipment requirements.

Who should I consult when purchasing an aircraft for the first time?

For a first-time buyer, it can seem daunting how many parties are involved and we recommend working with an established broker who will be able to walk you through all the steps and ensure you talk to everyone you need to ease the process.

You’ll have an aviation specialist lawyer; a maintenance facility doing the pre-purchase inspection; maybe a management company onboarding the aircraft; and corporate service providers all involved in a transaction.

We’d also always recommend seeking tax advice. If you don’t know where to look, we’ll point you in the right direction.

Can I choose my crew?

Yes, you can choose your crew. This is an important factor as they’re going to be on the aircraft every time you fly. This is a discussion you’d have with your operator, and you can be involved as much or as little as you want in the selection process. If you don’t have an operator, we recommend you seek out someone who has experience managing a flight department who can assist with finding your crew and managing your schedule and maintenance.

Do I have to travel through the commercial terminal to access my aircraft?

Most airports will have a private terminal or FBO reserved for private jet users. This means no queues at security, minimal interaction with other people, fewer touchpoints and a streamlined journey through the airport and onto your aircraft. At many business aviation terminals you can transfer direct to the aircraft from a car or helicopter, so travelers won’t have to enter a terminal building.

Can I bring my pet on board?

Yes you can, as long as your pet has the relevant permits to travel. This summer, Jetcraft has had a pop-up booth at Nice Airport in the Côte d’Azur, and we have seen many dogs disembarking from private jets with their owners.

Flying privately is entirely flexible and, as well as your pets, it’s much easier to transport many types of luggage on your aircraft, including ski or golf equipment, breakables and valuables – however you are still liable to follow customs regulations when bringing anything in or out of a country.

Everyone is thinking about how to mitigate risk and stay safe while traveling. Speak to your local Jetcraft representative to start your journey towards owning a private aircraft today.

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Why Business Jets offer the Ultimate Healthy Cabin Experience

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WHY BUSINESS JETS OFFER THE ULTIMATE HEALTHY CABIN EXPERIENCE

Source: Jetcraft

It has started cautiously, and it’s still carefully controlled. But we’re confident: the business aviation industry will start to return to normal. Even if this winter sees a resurgence of the virus, we are better prepared.  Skies will be busier, borders will start reopening, and FBOs will see a stream of travellers passing through.

Undoubtedly, Covid-19 has changed our priorities. Travelers are rightfully demanding more control of their environment than before, prioritizing personal safety, hygiene and cleanliness. Here are three reasons why the nature of business jet cabin design, usage patterns, and upkeep, make this the healthiest way to fly.

A breath of fresh air

There has always been discussion around air quality when flying and, now more than ever, the perceived risk of spreading airborne viruses in the cabin has brought the use of High Efficiency Particulate Air (HEPA) filters to the fore. This system uses 50/50 fresh air from outside the cabin and recirculated air, which passes through filters. For those aircraft types that don’t have a 100% fresh air system, entirely replenishing the air every few minutes (as found in all Gulfstream models), HEPA filters are the main form of purification.

HEPA filters, according to IATA, capture more than 99% of airborne viruses and are as effective as those found in hospital operating theatres. They’ve been used in business aircraft for years, including the long-range Bombardier Global 6000, 6500 and 7500 models; in the midsize market, they’re found in the new Cessna Citation Longitude and the popular Latitude jet. Embraer offers them on its new Praetor 500 and 600 jets. 

While HEPA filters are also used in many commercial airliners, a study by European charter operator Globe Air found that the air supply on a business jet is better overall, due to the smaller aircraft dimensions and lower passenger numbers.

A rarified atmosphere

Having fewer passengers on board allows personal ‘bubbles’ to be maintained through an entire journey, from transfer to aircraft steps, often bypassing the terminal to ensure interactions are kept to a minimum. Some dedicated business aviation airports are now even promising contactless travel, vastly reducing the number of ‘touchpoints’ when a passenger might contract Covid-19.

The same Globe Air study identified a 30x lower risk of contracting Covid-19 when flying privately, due to the lower number of touchpoints: up to 700 were found in a commercial airport and aircraft, versus approximately 20 for a business jet journey.

A self-cleaning cabin

Besides airborne virus transmission, many infections – including Covid-19 – can be spread through particles that land on surfaces. At Jetcraft, we’ve teamed up with interiors specialist F/LIST to treat all our eligible inventory aircraft with MicroShield 360, an innovative antimicrobial treatment for cabins.

MicroShield 360 forms a barrier of nanoscopic spikes on the treated surface, which kills germs on contact, destroying the outer cell membrane-like bursting a balloon. The system is colourless, odourless, hypoallergenic and FDA-approved. As it’s a ‘mechanical’ treatment rather than chemical, it can’t be wiped away or removed by regular cleaning, protecting the cabin for 12+ months after a two-hour application.

Safe travels

It goes without saying that we’re committed to safeguarding our customers, so wherever they are in the buying process – taking a tour, enjoying a demo flight, or receiving the aircraft – they can be confident while on board.

Business aviation activity is certainly picking up worldwide: according to data by WINGX, private flights are back to normal for Australia and India; up in Brazil and the UAE; the US is back to 90% of usual levels; and Europe’s at 80%, driven by an uptick in leisure flights and especially the shorter range operations. Whether a first-time buyer or a seasoned business jet flier, this turbulent period has thrown into sharp relief the need to have control over the travel experience. In our new environment, business jets offer a gateway to a safe, healthy, flexible flight.

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Why Private Jets Are All The Rage During A Pandemic

GLOBAL JET INTERNATIONAL BULLETIN

Why Private Jets Are All The Rage During A Pandemic

Source: Forbes

Photo: Getty Images

Ever since COVID-19 depressed commercial air travel the world over, stories have been emerging about the surprisingly optimistic picture in the world of private aviation. It turns out that as people became afraid of traveling by plane with hundreds of strangers, the appetite to charter or even purchase one’s own plane grew. And a number of companies in the private aviation sphere have been reporting an influx of new clients.

Though many of these companies have struggled due to the drop-off in business and corporate travel, attracting a whole new set of customers has provided a silver lining and has helped carry them through. In a recent conversation, private operator VistaJet referenced data showing that only 10% of people who can afford to fly private actually do. That means there’s a huge untapped market out there. And the coronavirus has evidently pushed some of that market into finally taking the plunge.

Jetcraft is the largest buyer and seller of business jets globally, with a headquarters in London and offices in 20 locations around the world. The company says it has completed over 700 transactions in the past decade, worth over $12.5 billion.

Chad Anderson, President of Jetcraft, sat down and answered some questions about the state of the private jet market.

– What kind of effect has the pandemic had on the private aviation industry?

CA: The world certainly came to a stop in March, including the aviation industry. But interest in business jets is rebounding quickly. In June we sold seven airplanes, and there was a backlog of demand in July. According to Amstat, while business jet sales were down 25% year on year in Q2 2020, the month of June 2020 was up 15% year on year, indicating positive momentum to come. We’re preparing for an extremely busy second half of the year. 

– How do you see the overall market shaping up?

CA: We’ve long seen a trend towards buyers choosing long-range aircraft over light or midsize jets, due to the increasing level of international travel required for business leaders. This hasn’t changed significantly despite intercontinental travel restrictions. Of the aircraft we’ve sold this year, 80% were in the medium or large jet category. We’ve sold multiple Dassault Falcon 7X aircraft, and multiple Bombardier Global and Challengers as well. We had one client who’d never owned an aircraft before and wanted to purchase a large-cabin Bombardier Global aircraft right off the bat – usually, first-time buyers choose a smaller jet first, then upgrade after a few years of ownership.

Looking ahead, we do anticipate an increase in people choosing smaller or midsize aircraft, such as a Cessna Citation CJ2+, or a Gulfstream G200, as domestic travel rebounds. We have two CJ2+ light jets and three G200s in our inventory at the minute, as interest in these smaller types is high amongst first-time buyers. One example of the shifting market outlook can be seen in demand for aircraft such as the midsize Embraer Legacy 450, which fills the gap between the smaller Phenom and the larger Legacy 500 and 650 models – we recently put out a call for any owners looking to sell their Legacy 450 to get in contact, as we had a lot of interest in the model from potential buyers.  

– Isn’t it a particularly risky time to go out and buy a private jet, with the trajectory of the virus and the global economy still unclear?

CA: Across the spectrum, from light jets to ultra-long-range, there are some great airplanes for phenomenal values – we’ve been advising our clients that now is the time to buy, if they have the means to do so. High net worth individuals in particular can move fast and make quicker decisions on high-quality inventory, as they’re not held back by corporate policies. Jetcraft is one of the few companies with the ability to take in trades, preventing owners from holding a second aircraft on their books when upgrading to a new model and avoiding a risky crossover period. For buyers in the US, bonus depreciation still applies, as does the recently introduced CARES Act Net Operating Loss Carryback scheme, which enables buyers to make an acquisition while protecting their cash flow. Interest rates are also extremely attractive right now. So, for buyers that are in a position to do so, we are encouraging them to take a long-term view and invest where they can.  

– What are first-time buyers saying about what motivated them to finally buy a private jet? 

CA: Covid-19 has been a catalyst for our industry. Before, people assumed private jets were for celebrities and the ultra-wealthy and didn’t realize how widespread their usage is for small businesses or busy CEOs. Now, many people are considering business aviation – whether it’s charter, fractional, or full ownership – for the first time. The health risks associated with commercial travel have completely changed perceptions and underlined the value of business aviation. I have customers saying they’ll never fly on a commercial airliner again, to protect the health of themselves, their families, and their employees. Due to the lower number of touchpoints in a journey through a private terminal and onto a business jet, potential Covid-19 contact is 30 times lower when flying privately, compared to a commercial flight. 

For others, the trigger to move to ownership has been the changing fortunes of the airlines. We had one client who used to fly commercial every week between Paris and the south of France, who is now buying an aircraft to make these journeys. The airlines have had to drop so many short routes from their schedules that he just doesn’t have the flexibility he needs anymore when flying commercial.

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Q&A with Mick Doohan

GLOBAL JET INTERNATIONAL BULLETIN

Q&A WITH MICK DOOHAN

Source: Jetcraft

How long have you been an Authorized Rep for Jetcraft? 

I became an Authorized Rep for Jetcraft in November 2014, assisting customers with all aspects of aircraft sales and acquisitions within the Australia and New Zealand Region.

Describe a typical day or week in your role.

I spend my day liaising with clients personally, via email or on the phone, or I may also be attending meetings with clients when I can.

What do you love most about your job?

Working with like minded people who share the same passion for aircraft that I have. I have a real love of aviation and enjoy that I can use that passion to help others at the same time.

Describe the company culture at Jetcraft and what it means to you?

They have a long history of building trust with customers and you can feel this in the culture. I also appreciate the exacting standards that are evident in their work.

What do you want your customers to experience when dealing with GlobalJet and Jetcraft?

That’s simple. Honesty and Trust.

Who or what has been your greatest professional influence?

No single person I don’t think. I have been influenced by everyone that I have met who consistently achieved success in their business, proving that hard work and motivation does pay off.

Describe yourself in 3 words.

Passionate, committed, approachable.

If you were to buy a business jet, which aircraft would suit your needs and why?

I own a Challenger 604; and purchased because it of its size and comfort, and a range that suits this region.

What stands out to you as good customer service?

Knowledgeable consistent communication is key when you want a customer to feel like they are a priority. We want them to know that they are important to us.

Finally, what is your hidden talent or hobby?

I have enjoyed flying helicopters over the last 15 years. I also have my fixed wing license but I haven’t flown a fixed wing aircraft since the day that I earned the license. The helicopter feels more like a motorcycle so I enjoy that a lot more.

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Our staff is located all over the world, so wherever you are, we have someone who can’t wait to meet you. Whether you’re looking to buy, sell, charter or just need some advice, we’re ready to help.

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