Seek Expertise in Global Aircraft Transactions

By Rohit Kapur President, JetHQ Asia

The world of private aviation is more than just one country or region. It’s truly an international marketplace where the best aircraft or deal can only be found past a national border. Better options for both buyers and sellers await, but only if they have assistance navigating global aircraft acquisitions.

Aircraft operators in the United States have enjoyed the benefits of a business aviation environment built over decades. With most of the world’s private aircraft located in North America, chances are a US-based buyer can generally find the aircraft with the needed specifications or fit. It’s more difficult to find the same options in emerging markets such as India or South Asia.

Why should a buyer limit a search to just 10 or 20 per cent of the global market by staying within that region? JetHQ’s aviation professionals are able to source aircraft from Europe, the Middle East, Africa and the US to assist buyers in India or South Asia.

JetHQ puts its full resources of worldwide connections to work for clients. Whether that’s through international research departments within North America or Europe who track every possible aircraft which may be available for sale, or locally based sales members who understand local languages, cultures and markets to locate the right plane for the client.

NO SUPPLY, ALL DEMAND

The private aviation market is broadening. More concept buyers – a term used to describe people who have never purchased an aircraft – are entering the market. Additionally, existing owners are wanting to upgrade their aircraft via trade.

Right now, demand is high, but supply is low. Brokers are chasing aircraft and, if an owner hints at a coming trade, multiple buyers are making bids on the aircraft months in advance of sale. Worldwide, there are approximately 20,000 business aircraft – not enough to meet the needs of new and existing buyers.

JETHQ STRENGTH COMES FROM THE THOROUGH KNOWLEDGE OF THE PROCESSES AND RULES AND REGULATIONS THAT ARE EXISTING

Sellers have an even greater advantage when moving internationally. For US-based sellers, allowing an aircraft to be promoted globally increases its value, and prevents it from being overlooked in a potentially saturated market.

JetHQ professionals can also determine where an aircraft is in higher demand, based on thorough analysis of trends and data. That adds up to a higher resale price for owners, maximising their investment.

By being a member of the International Aircraft Dealers Association (IADA), JetHQ brings a higher level or reputation than other brokers within these markets. Buyers and sellers alike know JetHQ has been vetted and adheres to IADA’s rigorous standards to receive this prestigious accreditation. JetHQ excels at guiding clients through every phase of the transaction – including areas made more difficult by pandemic restrictions.

EVALUATE AND INSPECT

When exporting or importing an aircraft across borders, multiple aviation authorities have to be satisfied with the transaction. The aircraft needs to be deregistered with an export certificate of airworthiness and clear customs before an import certificate of airworthiness of the new country is granted. That only happens if the aircraft conforms to that aviation authority’s requirements and regulations.

A top inspection team can make that happen more easily. They know what to look for – digging through engine and airframe histories, as well as detailed hands-on examinations. They’re also aware of what modifications or installations may be required to register and operate the aircraft in the new country. Legal aftermarket aircraft in one country may not conform to specifications and operational requirements of another. Something as simple as a galley upgrade may require modifications and proper documentation to be legal in the destination country.

Of course, a thorough inspection also protects a buyer from mechanical or wear issues that might prove costly over the long term, both in money and productivity lost to downtime.

COMPLETE THE PAPERWORK

While international transactions offer wider range of aircraft and sales partners, it does come with a consideration: timing. Speeding up governmental bureaucracies – in multiple countries – can be difficult.

Top brokers have the experience to know what’s realistic and how best to manage the transaction. That involves setting up escrow to cover the financial aspects, as well as on-the-ground knowledge to facilitate faster governmental inspections, certification and registration. Language or cultural differences should not be a barrier to finishing the deal, nor should time zones.

An experienced team should include pilots and technicians who are type-rated for the aircraft. They’ll be called upon for the final transportation. If the regulators are satisfied, a buyer should not have to wait on delivery because of personnel shortages.

BUILD A PARTNERSHIP

JetHQ clients have discovered that they have a full partner throughout the aircraft transaction process. Sanjeev Choudhary, JetHQ’s Vice President of Sales-Asia, recently assisted a client with putting together the entire structure of the purchase. This was for a concept buyer in India for the purchase of a King Air. Right from advising him on the best and most effecient way to buy the aircraft, he also assisted them with finance options, opinions for tax implications and also the entire process for closing, ferrying and importing to India. This was managed as a turnkey project in a seamless and efficient way. This comes only when salespeople have full knowledge of the transaction, and have the network to connect with the right people to get the job done well.

The first thing that stood out about JetHQ was its familiarity with India, and its complex regulations for import of an aircraft. Advising on the correct processes and getting all the paperwork in order for obtaining permission from the regulator and the financial institution in a timely manner is what JetHQ excels at. This strength comes from the thorough knowledge of the processes and rules and regulations that are existing.

The company has returned to JetHQ to assist them in finding another mid-size aircraft for its use, which JetHQ is in the process of doing. The JetHQ team for Asia consists of Rohit Kapur, President for Sales, located in Dubai, and Choudhary, located in New Delhi. JetHQ also represents Daher for the sales of the Kodiak series of aircraft in the Indian sub-continent.

MOVE FORWARD WITH CONFIDENCE

Over the next year, JetHQ expects the pre-owned market to continue to grow as clients take the lessons learned from the pandemic and secure their own private aviation solutions. Current aircraft owners should see the unmet demand by prospective buyers in South Asia and the Middle East. JetHQ advises them to take advantage of this demand and enter their aircraft into the market.

With a high level of service and aircraft acumen, JetHQ’s team can advise these current owners and find qualified buyers for their aircraft that will benefit them in the long run. Just like finding the right aircraft, finding the right team is critical to a successful international transaction.