Crystal Ball for 2019 First a little pat on the back, our 2018 projections were fairly accurate. We are seeing interest in new models and customers upgrading to these new models. There is less late model high quality aircraft for sale. Prices have stabilized or in some markets shown slight increases. What is the outlook…
Presented by Mike McCracken at the Corporate Jet Investor Conference Miami 2018 In the standard economic model, markets should perform rationally. The assumption is that buyers and sellers act rationally. In those cases where the market gets out of synch, the economic theory is they will quickly get back to equality. All of us in…
As Published in BusinessAir Magazine The current used jet market has reached the stage where a relatively high percentage are in the throw away jet category. In general terms, it happens around age 30+-. Let me explain. This age of aircraft is in the functional obsolescence stage of their life. The deterioration in their value…
As published in BusinessAir Magazine issue 10 2018 If you are keeping up with the market trends you are becoming aware of a market dynamic we have not experienced since before 2008. In most markets, you can’t just wake up and decide to purchase an aircraft and assume you can get one in service within…
When I moved to Florida in 1985 we learned a bunch about the state. Things like we only thought summers up in the mid-west were hot and humid, how to outrun an alligator, and continuing the alligator theme, they have been here for a million years, you are in their backyard not the other way…
As published in BusinessAir 2018 issue #8 When some of you read this title you are thinking, we have done this before and hiring a team is just an added transaction expense. We have internal counsel or a legal firm on retainer that does our other transactions or we have a firm that does our…
Jet Buyer’s Guide– First time buyers The decision to purchase a jet for the first time or to upgrade is like any other business decision. It requires careful analysis of your needs, market knowledge, process and strategy. Aviation can provide your company many positive financial benefits although they may be difficult to quantify. Buying the wrong…
Has the pre-owned jet market really turned the corner? Recently there have been several articles and the press quoting brokers about how strong the market is right now. Is this fake news or is it real? For light jets up and through ultra long range jets, the transactions for the first quarter of 2017 and…
This is an article that I wrote for Business Air magazine published June 2018. The economic recovery since the 2008/2009 meltdown has been perplexing to say the least. I suspect that future economics students will be studying this last decade for many decades to come. For us in aviation, it has been even more…
As published in Business Air Magazine Everyone is talking about the new “normal” in aircraft residual values. The first question might be to define what is “normal”. Most often the comment about normal is referenced by the term “historical normal”. What period are we talking about? Obviously, the last 10 years the historic normal is…