Trying to find effective approaches to buying and selling airplanes in these unprecedented market conditions is, to say the least, challenging  and expensive.

Many companies new to corporate aviation opt to hire a pilot as a first step then trust the pilots expertise to carry the ball to the end zone. Most pilots are conscientious, capable and honest while the focus of their professional effort is acquiring the training and skills required to safely operate an airplane. Even so, they have a good idea of the market value of a given airplane, are at least familiar with the aircraft sales transaction process, and know most of the repair facilities. They are a valuable liaison between the prospective owner, a professional broker and the others in an acquisition team.

The acquisition team most often consists of an aviation attorney, an accountant familiar with the fiscal nuances of aircraft ownership, and an aircraft broker, as well as the pilot.

There is a general agreement that an airplane is a useful  some say essential -- business tool.  The vision of a companys key executives standing barefoot in a security checkpoint line is probably not inspiring to at least a few potential investors or stockholders.  Fewer still would like the idea of their companys best sales team getting bumped from a commercial flight because of overbooking while traveling to a key presentation.  Most dynamic companies realize that a corporate airplane is an essential business tool that gives them a competitive advantage.  Corporate airplanes open markets the airlines dont serve and they get staff to important events reliably while extending the workday to include travel time.  As someone once said, A corporate airplane lets us do three meetings in one day instead of one meeting in three days.

The good news for the jet resale market as 2011 came to an end is that it looks like the bottom has been reached and the market is stabilizing.

The number of retail sales transactions returned to within nine percent of its high reached in February 2008. As of the end of September, there were 2,058 transactions. Compare that with the low water mark of 1,426 transactions in June of 2009 and there is reason for optimism.

UBS' Business Jet latest survey which main points summarized below. 

Shown is a summery of the CJ market as of early October of this year. Compared to the previous year the sales show an incline to 2009 levels.

I just read an interesting article published by AMSTAT. It was interesting for two reasons: it illustrated a market phenomenon that we in the aircraft sales world sensed but was undocumented; and it was an alert for aircraft owners that are planning to buy or sell aircraft in the near to medium term.

The market phenomenon is that other regions of the world are enlarging their fleets while the North American fleet is contracting. As recently as 2007 North America was base to 70 percent of the worlds corporate aircraft. Today, the percentage has dropped to 62 percent. Clearly, North Americans are sellers and the rest of the world provides the buyers on a net basis.