Written by Fabrice Roger, former Jetcraft Sales Director, Latin America

Latin America hosts the second and third largest business aircraft markets by fleet size within the Americas, with Mexico’s fleet (988) recently overtaking Brazil’s (782) for the #2 spot behind the US, according to AMSTAT. There is a healthy appetite for private aviation in the region, fueled by long distances in air travel, increased security concerns and proximity to the United States. However, the market’s growth potential continues to be challenged by economic pressures, government changes, commodity pricing fluctuations and a lack of a modernized infrastructure.

There is still a need in many Latin American countries for more runways, airports and maintenance operations to reach a US business aviation standard of quality and efficiency. Mexico has the most advanced airports and maintenance facilities due to its proximity to the United States. Despite being a top business aviation market in Latin America, Brazil has a very limited amount of runways suitable for business aircraft. The country is starting to privatize airports now, but its current economic and political environment has slowed this process. However, if the new government prioritizes these investments after the planned elections in 2018, it could have a positive effect on infrastructure and growth.

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Product Overview

The Challenger 601-3R is a twin turbofan large-cabin wide-body business jet. The cabin is uncharacteristically large with a quiet interior for passenger comfort, and offers a surprisingly high performance considering its size and weight. It is similar to its predecessor, the Challenger 601-3A model, but has upgraded engines, a fuselage tailcone fuel tank, and 2,000 lb. gross weight increase.

As of June 2017, 91% of the Challenger 601-3R were purchased pre-owned by their current owners, the other 9% new. 12.1% are for sale with the majority of those (86%) under an exclusive broker agreement. When for sale, the average time on the market is 314 days.

Brief History

The Challenger 601 series is an improvement over the Challenger 600 aircraft and consists of 3 versions – 1A, 3A and 3R. The Challenger 601-3R, which uses the -3A1 General Electric CF34 engine, replaced the Challenger 601-3A in 1993 as the most recent variation in the 601 series. A total of 60 Challenger 601-3R aircraft have been manufactured with 58 in operation today.

Worldwide Appeal

There are 58 Challenger 601-3R aircraft in operation today. Most of these are wholly owned (56) with 2 in shared ownership. 3.4% of the 58 are currently leased. North America has the largest percentage of Challenger 601-3R aircraft (84%), followed by Asia (5%) and Africa (5%).

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When buying or selling an aircraft, many believe that engaging multiple aircraft dealers will increase their opportunities and faster materialize the best deal —but this is rarely the case. Working with a high quality and dedicated aircraft transaction specialist under an exclusive representation agreement consistently results in faster, easier transactions with better outcomes.

Here we highlight some of the key advantages working exclusively with one aircraft specialist affords buyers and sellers:

• Tailored Relationships and Expertise: Orchestrating a successful transaction takes time, money, and expertise. The representation agreement signifies a partnership that lets the transaction specialist fully devote its resources to your deal, whether that includes marketing an aircraft for sale, or finding the perfect aircraft to purchase. The partnership also provides peace of mind to you, knowing that a team of professionals is working diligently on your behalf 24/7.

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Daniel Cheung, Owner & CPA, Aviation Tax Consultants

How long have you been at your current organization?

My business partner and I started Aviation Tax Consultants in the fall of 2003.

What are your responsibilities within your organization?

Working with my colleagues at ATC, I am ultimately responsible for all of our clients’ tax compliance matters, handling IRS and state sales tax audits. In addition, I am the traveling / marketing face of the firm, attending numerous industry functions and speaking at aviation conferences.

Describe a typical day or week in your role.

Whether I am in the office or on the road, I spend most of my time on the phone speaking or corresponding on emails with clients, CPA’s, prospects and aircraft salespersons. I spend a significant amount of time traveling and networking with business aviation professionals around the country.

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Product Overview

The Phenom 100 is a very light twin-engine jet that is produced by Embraer. It was developed from scratch as Embraer’s first Light jet. Embraer’s larger aircraft models have automated and simplified systems, rugged construction, and the ability to fix failures quickly when they do occur. These features are designed into the Phenom as well. The Phenom 100 is approved for single pilot flight.

As of April 2017, 44% of Phenom 100 aircraft in operation were purchased pre-owned by their current owners, the other 56% new. 12.1% are for sale with the majority of those (78%) under an exclusive broker agreement. When for sale, the average time on the market is 229 days.

Brief History

In 2005 Embraer announced that it would begin development of Light Jets and at the NBAA annual convention in November 2005 Embraer announced that the light jet would be called the Phenom 100. The Phenom 100 first flew on July 26, 2007. It was awarded a type certificate from Brazil’s National Civil Aviation Authority on December 9, 2008 and the first aircraft was delivered days later on December 24, 2008. A total of 355 Phenom 100 aircraft have been manufactured with 338 in operation today.

Worldwide Appeal

There are 338 Phenom 100 aircraft in operation today. Most of these are wholly owned (316) with 7 in shared and 15 in fractional ownership. 6.5% of the 316 are currently leased. North America has the largest percentage of Phenom 100 aircraft (54%), followed by South America (29%) and Europe (12%).

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Selling an aircraft does not have to be an overwhelming endeavor. Keeping in mind the proper pre-sale procedures and knowing what pitfalls to avoid can make the selling process simple and eliminate unnecessary hurdles. Here is our advice on the most common mistakes sellers make and how to avoid them.

Setting an Accurate Valuation – A common mistake made by sellers is not knowing the true market value of their aircraft, ending up with unrealistic price expectations. Sellers should not base pricing solely on upgrades, Bluebook / VREF values, cosmetic changes, and listings that seem similar to their own. Sellers should carefully consider real-time market trends and changes. It is critical to use specific data about the subject aircraft – its condition, maintenance and usage history – to set an accurate figure. Valuations are also critical prior to performing any upgrades or cosmetic changes to best understand what features will help aid in the sale of the aircraft.

Set a Realistic Timeline – One of the most common issues where sellers misstep is establishing a realistic timeline to closing. Many think the process from the signing of the Letter of Intent (LOI) to closing should take only a few weeks, when in reality it could be longer. To avoid extra stresses and pressure, work with a transaction specialist and plan ahead to ensure that a realistic timeline is set, especially if there is an upcoming event like the end of a lease or new aircraft delivery. Also, try not to deter a buyer by pushing too hard for a closing, and be open to a compromise so that both parties can feel good about the transaction.

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Industry Veteran Danie Joubert to Represent Jetcraft in Africa; New Agreement Strategically Positions Jetcraft to Serve African Market and Global Clientele

Jetcraft, the global leader in business aircraft sales and acquisitions, today announced another milestone in its continued global expansion through the appointment of Danie Joubert as Vice President, Sales. Based in Johannesburg, Joubert will represent Jetcraft in Africa and be responsible for all sales activities in the region.

“We continue to see steady business aviation activity coming out of Africa. Our agreement with Danie will allow us to better serve not only our clients across the continent, but also strengthen our global presence and provide unprecedented access to an expanded inventory for our customers worldwide,” said Jetcraft’s President Chad Anderson.

Danie comes to Jetcraft from Absolute Aviation Group where he served as Chief Operating Officer since 2012. Prior to that, he held executive roles at Adonai Aviation Ltd and ExecuJet Aviation Group. He has extensive experience in business aviation that includes aircraft sales, acquisitions and trades, contracting, and deal management. Having previously served in the South African Public Service, Danie is also uniquely versed in government systems, processes and requirements.

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Aoife O’Sullivan, Partner, The Air Law Firm

How long have you been at your current organization?

We set up the firm in November 2015 as a boutique aviation law firm mainly to focus only on aviation and be more flexible in terms of client needs such as fixed fees. Clients we had been working with for many years agreed to support us and we haven’t looked back since.

What are your responsibilities within your organization?

Pretty much everything! I run the business with my partners and we do everything from ordering the stationary to advising clients on aircraft ownership, finance and trading structures. I guess my main role is to keep the business coming in and make sure we are doing everything we can to help clients and give a fast and professional service.

Describe a typical day or week in your role.

There is absolutely nothing typical about this role or the work we do. I split my time working from home or at the office in Mayfair. There seems to have been a swing back to face to face meetings so the work involves a lot of travel, literally to anywhere I am directed to go! Many of our clients are based in or pass through London and our Mayfair office is very central so I tend to walk to meetings where possible. Our client base is very varied and on any given day, I may spend the morning with a HNWI advising on their aircraft purchase, lunch with a financier to agree a financing structure, the afternoon drafting documents and answering emails and then dinner with some industry friends or new clients. The ability to respond to emails and calls on the go is a necessity in this line of work as people tend to expect a quick turnaround. We are lucky to be very busy so delegation is a skill I have had to become very good at without affecting our partner led personal service to the clients.

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Product Overview

The Challenger 600 is a twin turbofan large-cabin wide-body business jet best recognized for its very wide cabin (only Falcon 900 is wider; by 1 inch). It was one of the first business jets designed with a supercritical wing. The Challenger 600 has four backup power systems, thrust reversers and APU. It is known to be a spacious, comfortable cabin with low noise and vibration levels.

As of April 2017, 100% of the Challenger 600 aircraft were purchased pre-owned by their current owners. Currently, 24.6% are for sale with a fraction of those (25%) under an exclusive broker agreement. When for sale, the average time on the market is 679 days

Brief History

The Challenger 600 was originally developed in the mid-1970s to be the Learstar 600 in collaboration between Canadair and Bill Lear of Learjet. In 1976 Canadair purchased the Learstar rights and redesigned it to be the Challenger. It was then certified in 1980. A total of 85 Challenger 600 aircraft have been manufactured with 65 in operation today.

Worldwide Appeal

There are 65 Challenger 600 aircraft in operation today. 64 of these are wholly owned with 1 in shared ownership. 1 of the 65 is currently leased. North America has the largest percentage of Challenger 600 aircraft (75%), followed by Asia (14%).

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