19 Nov Private Jet Sales Approach in a Tough 2019 Buyer’s Market – Working With Trusting & Trusted Partners
2019 became a Buyer’s market since 55 of the Worldwide 404 operational Hawker 800XPs were now available for sale, (representing 14% of the entire fleet), making this a challenging market for selling a Hawker 800XP or other similar pre-owned private jet aircraft.
Consulting brokers, like The Private Jet Company, stay in constant touch with both buyers and sellers over years to answer any questions or concerns related to the private aviation industry, aircraft price trends, private jet ownership and future interests and as a result became trusted advisors for any private aviation matters.
Early in the inspection process our expert inspectors found out that after placing the aircraft with its new operator, the owner dropped the top-tier engine and APU maintenance service plans that had conveyed with the aircraft upon purchase. We advised the estate that the lack of the APU and engine programs was a significant reduction in the aircraft’s value.
The estate agreed with our recommendation and decided to re-enroll the aircraft on the top-tier engine and APU maintenance service program.
Even though the owner only flew 100 hours in the two years since the engines and APU had been un-enrolled from the maintenance service plan programs, the engine manufacturer, Honeywell, required a full enrollment inspection and performance evaluation of the engines prior to acceptance into a new APU maintenance program.
Upon the recommendation of The Private Jet Company, the estate engaged Dallas Airmotive to perform the engine re-enrollment inspection, since they did the 2011 Midlife Inspections for these engines. Upon re-inspection, the engines were found to be in excellent condition and Honeywell agreed to re-enroll the engines. Based on our direct negotiation with Honeywell on the re-enrollment buy-in amount we were able to secure a substantial discount for the owner.
With the 20-Year inspection completed and the engines and APU now re-enrolled on the top-tier programs, we contacted potential buyers who inquired about the aircraft. One buyer offered the best terms and after some negotiations on behalf of the estate, a purchase agreement was executed. The new owner was a King Air operator in the Midwest buying the firm’s first jet.
The buyer agreed to accept the recent 20-year G Inspection as their Pre-Purchase Inspection and a smooth transaction was concluded by the delivery of a highly upgraded, freshly inspected and fully program enrolled Hawker 800XP. Both buyer and seller were fully satisfied with the transaction and its outcome.