I don’t ask my pool guy to work on my landscaping. He’s around landscaping all day as he cleans pools, adjusts water features, and replaces pumps. He knows which trees are going to drop leaves in my pool almost to the day. But that does not make him the right person to fertilize my lawn, plan the perennial plantings and design a new bed that draws attention to the stained-glass bathroom window. I also know that even though I have a net to get leaves out of my pool and a pair of gardening gloves, my best results are not going to come from me doing the work myself.
The same is true on a larger scale with aircraft sales and acquisitions.
You can buy an airplane yourself, or even sell it on your own. You have a computer and a phone, just the same as I have a shovel and a rake.
You can have your pilot buy or sell a plane for you. He certainly knows about them and has a personal stake in your safety, as it’s connected to his.
You could also have your management company sell your plane or buy one for you. You may even consider it a part of the asset’s management.
However, there are a few things you should consider before choosing an agent to acquire or divest a multimillion-dollar asset.
[ulp id=’xkA7bnsbSMSAnwAm’]
- What are the motives?
A pilot who is selling a plane might well be selling himself out of a job, and a management company might be reducing their own revenues by losing charter revenue. In buying a plane, both may steer you toward an aircraft of their personal preference for any number of reasons. They may have a relationship with the seller, like the paint job, or have history flying that plane type.
- What are the qualifications?
Does the pilot or management company have sales negotiation experience, marketing expertise, a robust sales network, and the bandwidth to respond quickly and appropriately to inquiries?
- What is the level of market knowledge?
Professional aircraft brokers keep a finger on the pulse of ever-changing aircraft values, know what comparable aircraft have sold for—or will likely sell for in the future. This is information not readily available to the general public. Does your pilot or management company have a reliable place to get this information to ensure that you are getting the maximum possible in a sale—or not overpaying in an acquisition?
In our experience, the best representation for an aircraft transaction is not in the hands of the pilot, the management company, the CFO, or an attorney. The way you protect yourself the best is by coming to an agreement with a reputable agent for aircraft transactions whose qualifications, references and market knowledge make you feel comfortable. As a broker, we wouldn’t fly your plane…why would you let your pilot buy it?