Niki Rokni, partner and head of Aircraft Sales at AXON Aviation told CJI: “Our clients will now get the same exceptional experience they received at AXON, whilst also benefitting from Jetcraft’s unique data-science led approach and global footprint.” The agreement follows years of partnership between AXON and Jetcraft in completing aircraft transactions around the world.

Asked why now was the right time for the handover, Rokni told us: “The AXON commercial aircraft sales and leasing business has grown tremendously over the past several years.  After careful consideration, we have decided that now is the optimal time to shift our focus solely to this division.”

The AXON team will remain the same, now with additional focus on its commercial aircraft sales and leasing services, she added. AXON, which specialises in off-market listings, will continue to work with clients to providee a seamless transition, according to the company.

Jahid Fazal-Karim, owner and chairman of the Board at Jetcraft said: “I want to thank Niki and all at AXON for placing their trust in us. Jetcraft is a global force in the industry, offering the best-in-class service for aircraft sales, acquisitions and trades. By taking on AXON’s elite customer base and  quality aircraft we continue our growth trajectory, providing the expertise nobody else can match.”

Transition plans

Aviation consultant Dustin Cordier, founder of StepZero expects to see more brokerages exploring their transition plans in the next 10 years. “A well capitalised buyer or two may make a run to consolidate firms,” he told CJI. “This will not be without it’s challenges as mass doesn’t necessarily create advantages in highly relationship driven businesses. Technology or some external factor may be the catalyst for multiplying the consolidated value. Otherwise, one plus one could equal less than two.”

Smaller firms should take note, said Cordier. “A strategic buyer looking to add a particular niche to their portfolio is likely the only available exit option for them via the private capital markets – it just so happens to be the most profitable as well,” he said.

Other options include a family transition or an employee transition initiative, such as an employee stock ownership plan (ESOP). “These options carry on a legacy and diversity risk but may leave money on the table,” he said. “There are ways firms can increase their attractiveness to a strategic buyer. “Reducing dependency on the owner for revenue and management duties and implementing repeatable systems are two of the biggest levers for them.”

Cordier predicted an exciting time in the coming years. “Companies that are deliberate in their strategy have a lot to gain and those who choose to ignore the coming changes will be commoditised further,” he added.

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New and not-so-new technology is enabling a fresh approach to generating leads and closing deals. So, is tech threatening to supersede the old dealmaking skills? We took the temperature of jet sales with three leading industry players.

Active in the 3D virtual world of the metaverse is Jetcraft. In mid-2022, it bought space in three-dimensional social networking platform Decentraland. Within that space, the aircraft sales, transactions and trades specialist built a virtual lounge linking to its virtual hangar and an immersive introduction to Jetcraft for those new to the company or business aviation.

But does it help to sell jets? “Initial feedback is positive, with visitors appreciating this as a first stop to understanding Jetcraft and being able to virtually explore different aircraft models, before investing time in real life viewings,” says Peter Antonenko, president, Jetcraft. “Our expansion into the virtual world reflects the evolution of our customer base, having seen a 20% increase in Jetcraft buyers under 45 in the past five years.”

Generation Z

Younger aircraft owners are often established metaverse and virtual reality users, he tells us. “A growing number of entrepreneurs from tech and finance are entering the world of business aviation and using our tech insight to support their aircraft needs.” Jetcraft says it is keen to stay ahead of its customers, particularly those who belong to Generation Z. “They are increasingly implementing technology into their day-to-day lives and putting more value on their online identities,” says Antonenko. “As these individuals move through the workplace, platforms such as the metaverse will become fundamental to how they conduct business.”

But Jetcraft’s adventures in Decentraland will not replace the personal contact that is so key to closing a deal, he adds. “While our presence in the virtual world serves as a swift and convenient way for customers to interact with Jetcraft, we firmly believe that face-to-face interactions remain integral to business aviation.” Its Decentraland Lounge and virtual reality hangar are designed to complement the company’s existing service, not to replace the in-person connection that clients value, particularly after Covid.

Jetcraft’s virtual sales lounge is evidence of changing buying habits, agrees Wayne Starling, executive director, International Aircraft Dealers Association (IADA). “We are seeing some changes reflected as follows: the showroom that The Jet Business in London has, Jetcraft’s virtual lounge and other dealers integrating new ideas into their business models,” he tells us.

‘Pulling the trigger’

During Covid some buyers transacted purchases without physically viewing the aircraft in person. That has all but stopped, says Starling. While younger buyers use virtual features in their decision-making and buying process, they want to see, touch the metal and smell the leather. “In most cases, they almost always want to see, touch and feel the aircraft before pulling the trigger. The older buyers are beginning to make use of some of the virtual capabilities but not at the pace of the younger buyers,” he says.

Despite experimenting with new sales models, IADA still believes that most dealers/brokers are still traditional when it comes to selling. As AI starts to play a role in all aspects of business, IADA expects it will influence how aircraft transactions are conducted. Change will happen, but it will take time, as most of the aircraft dealers and brokers are old school in the business jet transaction industry, says Starling.

Plus, buyers can have access to too much detail. “The aircraft owners have so much information available via the internet and publications that sometimes it creates more problems/confusion than help. A good aircraft broker must understand and use all the tools available and start preparing for the future.”

But Zoom (and other social networking platforms) are here to stay, according to IADA. Another fan is Jay Mesinger, founder and CEO, Mesinger Jet Sales. “Zoom and Teams are absolutely embedded in the sales process after Covid,” Mesinger tells us. “Sharing your screen is an important way to share information about a proposed business jet transaction.” But technology can never substitute for the traditional sales skills of understanding the buyer’s needs by listening (and then listening some more), says Mesinger. And not being afraid to ask for the sale sometimes gets overlooked.

‘Do less selling’

For Starling, at IADA, one of the fundamental recent changes in sales is not technology but supply. Gone are the days when all you needed to sell a jet was an available aircraft. “Times are changing and brokers must go back to using their selling skills. One thing I stress to brokers is to do less selling and more helping their clients buy what they need and want. We all like to buy versus being sold.” 

So, while new opportunities – like marketing in the metaverse and social media sales leads – are changing the way some buyers, particularly younger ones, acquire jets, fundamental principles still apply.

Back to some final sales advice from Blake in the 1990’s movie Glengarry Glen Ross: “Only one thing matters: Get them to sign on the line, which is dotted.” Was he right all along?

OMW Dashboard

Aircraft for sale

• 657 Light jets for sale/lease – two more than last week. This represents 6.93% of the total fleet. An absorption rate of 4.21 months. 
• 542 Medium jets for sale/lease – one fewer than last week. This represents 6.66% of the total fleet with an absorption rate of 5.07 months. 
• 452 Heavy jets for sale/lease – the same as last week. This represents 6.85% of the total fleet with an absorption rate of 5.13 months. 

Source: Amstat, March 1st 2024

Business jet flights – Week 8, ending February 25th, 2024

Global

Business jet activity was up 2% year-on-year (YOY). Scheduled airline sectors were 7% ahead of last year.

United States  
The 51,480 business jet sectors logged were 3% ahead of the previous week and 3% ahead of 2023.

Europe 
Business jet flights were 2% behind the previous week and level with last year.

Rest of World 
In the Middle East, business jet flights in the past four weeks fell 11% compared with last year. In Week 8 activity was 6% behind Week 8 in 2023.

Source: WINGX, February 29th, 2024.

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Jetcraft is partnering with former JetEdge CEO, Bill Papariella’s new company, AeroVentures.

AeroVentures is an investment firm focused on direct equity and credit investments in technology, service and infrastructure solutions for business aviation.  The experience of the portfolio management team and CEO Papariella in the global aviation industry positions AeroVentures as a “powerful new investing partner” in the category, according to AeroVentures.

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The business jet broker will now use Bluetail’s services as part of each aircraft sale the business completes. Jetcraft employees can now digitally scan aircraft logbooks and records and then upload them to Bluetail’s cloud server to be securely stored.

“As we’ve all seen in the past 18 months, there’s been unprecedented activity in the business jet market,” said Stuart Illian, chief operating officer, Bluetail. “That demand and the narrowing availability of quality pre-owned aircraft has pushed selling prices to their highest levels. By offering Bluetail, Jetcraft is taking a proactive step in helping its customers protect the value of their aircraft.”

Illian added that many buyers are new to business jet ownership and don’t want the hassles of having to securely store logs in fireproof vaults. “Having their aircraft’s valuable records stored in the cloud will eliminate any worries about the possibility of losing logbooks and devaluing the aircraft,” he said.

For Joe Fesi, director, Maintenance, Jetcraft, having accurate and complete logbooks and records is more important than ever, especially in the current highly active business jet market.

“We’re confident that Bluetail’s portfolio of cloud-based services will not only make it easier for prospective purchasers to review aircraft records but also for owners to maintain their digital records, creating added value when they decide to sell,” said Fesi.

Bluetail has a software tool for charter brokers too. Last year, it launched Mach Conformity, developed in collaboration with Part 135 charter operators such as Solarius Aviation, Wheels Up, Jet It, Wing Aviation and Mach Point Aviation. The company claims the programme reduces the time to perform conformity inspections by 50%.

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First, Jetcraft’s 5-year Pre-owned Business Jet Market Forecast. Despite what the broker describes as an inevitable market correction in 2023, it remains confident about market prospects – notwithstanding rising interest rates and fears of recession. The reason for Jahid Fazal-Karim, owner and chairman of the board, Jetcraft is clear. “The driving factor is the corporate buyer – who roared back to life in 2022 following the pandemic hiatus. This, combined with a continued flow of new entrants to the market as well as OEM backlogs, took total pre-owned transaction values beyond our expectations,” he wrote in the report’s summary. “And those buyers are flying more than ever.”

Jetcraft research reveals the share of buyers coming from the corporate sector reached 60% last year. This demonstrates the value corporations and the UHNW individuals running them place on jet ownership, he wrote. “The more valuable their time, the more their need for business jets.” It’s a trend that shows no sign of slowing down. Aircraft use among corporate and individual buyers has doubled since 2020. The return of the corporate buyer, growing maturity of markets outside North America and continued investment in larger jets from the OEMs, flying has evened out across all aircraft sizes to an average for Jetcraft buyers of 200 hours per year.

Over the forecast period, the number of pre-owned transactions is predicted to grow steadily again and exceed previous highs by 2027. (That represents an average Compound Annual Growth Rate (CAGR) increase of 4.7% per year. Inflationary times may even help to prompt private jet purchases, according to Chad Anderson, CEO Jetcraft: “When inflation is high, the market is more favourable to cash-rich corporations opting to buy outright.”

Global Jet Capital also sees significant market growth up to 2027. It’s report – New and Pre-owned Business Jet Transaction Forecast – predicts new deliveries this year to rise by 6.3% (up 12.2% in dollar terms) compared with last year. But offset by a 2.6% fall in the number of pre-owned deals, the report predicts a 1% increase in the value of aircraft transactions.

As the market settles from the highs of last year, steady growth is expected to re-emerge over the five-year forecast period. “We forecast total transactions will increase at an average annual rate of 2.9%, while dollar volume will increase at an annualised rate of 3.1%,” according to the Global Jet Capital forecast. “Between 2023 and 2027, we forecast new aircraft will represent 51.5% of the total value of the market, about on par with the last five years.”

Heavy and very light jets are predicted to show the strongest growth, with heavies leading the way. Heavy jet deliveries are forecast to increase at a CAGR of 5.9% between 2022 and 2027, as their range and passenger capacity finds favour with buyers and flyers. It’s a trend that will be fuelled by the introduction of new heavy jets during the forecast period. At the other end of the ramp, very light jets (VLJs) are also expected to demonstrate rapid growth, expanding at an annual rate of 5.6%. “The low price of VLJs makes them appealing to many buyers, especially first-time owners,” according to the report. “Although light and medium jets will grow more slowly than heavy jets and VLJs.”

Fazal-Karim, from Jetcraft, sums up the (qualified) reasons to be cheerful: “A forecast isn’t ever a certainty, but with demand having reached unprecedented levels last year, we can continue to be confident about the health of our industry.”

Meanwhile, Jetcraft’s forecast is available here and Global Jet Capital predictions can be read here. Both make encouraging reading – particularly after a long day touring the EBACE halls and Static display (now the protestors have gone). What better way to relax than with two positive reads to lift the spirits – if not soothe the weary feet? Beverage of choice optional.

Above: The Global Jet Capital report predicts heavy and very light jets will show the strongest growth.

Top: Jahid Fazal-Karim, owner and chairman of the board, Jetcraft:  “The driving factor is the corporate buyer.”

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Dan Kilkeary, senior vice president Sales, Americas said: “Colin has the expertise to ensure we continue to exceed client expectations across the Americas. He already has a deep understanding of how Jetcraft operates from his time working with us in EMEA [Europe, Middle East and Africa], so he’s perfectly positioned to make an immediate impact in his new territory and demonstrate our unmatched ability to sell aircraft at the Speed of Life.”

His appointment is the latest example of Jetcraft’s plan to boost its senior sales team across the Americas in response to continued demand, he added. “North America is still driving the majority of demand for pre-owned business jets globally, and our expanded team is set to play a crucial role in meeting this need.”

Dunne joined Jetcraft as sales manager in 2019, based in the company’s London headquarters. In this role, Dunne helped facilitate more than $1bn in closed aircraft transaction value, according to the broker. He also built and maintained relationships with aircraft owners, operators and industry partners in Northern Europe and the Middle East. Dunne previously held roles across the aerospace, energy and construction industries in a mix of design engineering, project management and business development capacities. This included two-years working with aircraft owners, airlines, lessors and MROs at AerData/Boeing.

Meanwhile, his appointment follows two senior executive hires for the Americas earlier this year. In January Gerald Hooper was appointed sales director for the US West Coast, including Northern California, Oregon, Washington and Idaho. Based in Brazil, Laurence Vidal was appointed sales director with responsibility for  South American territories including Chile, Argentina, Uruguay, Brazil, Bolivia and Paraguay.

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Both companies will continue to operate individually and will benefit from access to each other’s expertise.

Peter Antonenko, president, Jetcraft told Corporate Jet Investor (CJI) that now is the right time for the acquisition due to increasing demand. “As demand for business aviation continues to grow, we continue to assess and adjust our own structure to better serve the needs of our growing client base,” he told CJI. “This strategic acquisition allows us to grow our market share and continue meeting the growing demand for pre-owned aircraft around the world.”

Jetcraft could not disclose the terms of the acquisition, but said the companies have combined experience of more than 800 transactions in the past five years.

“For more than 60 years, Jetcraft has been setting the standard in business aircraft transactions, placing a sharp focus on super-midsize, large and ultra-long-range jets,” said Antonenko.

He said the addition of CFS Jets means the company now has diverse product expertise across all types of jets. The acquisition brings the company’s number of advisers to more than 100 globally, he added.

David Monacell, partner, CFS Jets said: “Powered by Jetcraft, we are now giving our customers access to the most robust market intelligence and widest range of aircraft in the industry.”

CFS Jets – at a glance

• Operating since 1984
• Firm founded by CEO and president Mitchell McCune’s father
• Offers complete solution for aircraft acquisition
• Accredited IADA dealer
• Inventory including Gulfstream, Boeing, Bombardier, Cessna, Dassault and Beechcraft jets
• Helicopters also included in inventory

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It all began in 1956, with a call on his cousin at Dallas Aero. After serving as an aeronautics technician in the US Air Force, Jack easily mended a faulty automatic direction finder, which had frustrated the company’s workforce. He was hooked. After joining the company, he was soon running the radio shop. In the early 1960s, Jack was one of three employees at a new division of Qualitron Aero at Meacham Field, Fort Worth, Texas. The company later blossomed to more than 400 employees engaged in modifying government and corporate aircraft. Jack left as senior vice president.

In 1973, he found his footing in sales with Associated Air Center at Dallas Love Field. Five years later, he started his own company, Jack Prewitt & Associates. Along with his dedicated team, he built the business into an organisation that has sold more than 1,200 aircraft and tallied sales topping $4bn, according to the company. He was also a founding member of the National Aircraft Resale Association (NARA), now the International Aircraft Dealers Association (IADA).

Behind the detail is a life lived to the full. A life of hard work and even harder play, dedication to family and a passion for people – always tempered by his trademark Texas humour. 

Charles ‘Bucky’ Oliver, founder and chairman emeritus, Jetcraft remembers a lot of fun. “I can’t think of Jack without smiling,” Oliver tells CJI. “That Texas sense of humour. He was a visionary who could smell money.” But his business relationships always extended beyond finance, says Oliver, who met him in the early ‘60s. “You always took his call – you always worked towards a deal and you always ended up a friend.” He remembers: “The only thing Jack did harder than work was play.”

Many remember Jack’s willingness to share advice and the loyalty he inspired. Brad Harris, president and CEO, Dallas Jet International knew him for 25 years. Jack was a friend and a mentor. “He was like a grandfather to me, and I will remember him as such,” he tells us. “Jack was a true pioneer, visionary and laid the groundwork for success in transacting business aircraft.”

For Harris, Jack was the “Godfather” of the broker/dealer world. “His impact on the aviation community will live on for generations to come.” Harris particularly values sharing an office building with Jack and his company and their discussions about business and personal life. “I am grateful for the time I had with the one and only, Jack Prewitt. Rest easy my friend.”

Wayne Starling, executive director, IADA remembers Jack as being “bigger than life”. Everyone in business aviation knew or had heard of Jack. “He will be remembered for many things and for many reasons, but most of all, he will be remembered as a pioneer, a trail blazer, and an ambassador for our industry. He always gave more than was expected.” 

Johnny Foster, president & CEO, OGARAJETS recalls Jack Prewitt & Associates as perhaps the first true global aircraft dealer. “His name became synonymous with deal making – and big deals. Jack carried a mighty line of credit and was willing to buy and hold big-stakes inventory – and often served as a bank for smaller firms that did not have the financial horsepower, or courage, to make a big inventory play.”

Jack’s partnerships were always fair and transparent at a time when other operators felt less constrained by business morals. “Jack’s word was his bond – Jack lived it,” Foster tells us. “Today, aviation remains largely unpoliced, but back in the ‘80s and ‘90s, the industry was truly the Wild West, where most brokers were simply out to take care of themselves.”  

Business for Jack was more than making money. “Of course, Jack was a business man – a damn good one – and he made a lot of money during his reign, however, he also aimed to create genuine relationships with his clients and fellow brokers. He helped bring the industry to a higher-level where buyers and sellers felt more trusting of the process and players.”  

The last words go to Jack himself. It comes courtesy of his advice to Starling from IADA, the organisation Jack helped launch. “Son, if you want to compete and be successful in this industry, you will have to put in hard work and build relationships based on trust and value.”  (Photograph courtesy of IADA).

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Based in Brazil, Vidal will lead sales in South American territories including Chile, Argentina, Uruguay, Brazil, Bolivia and Paraguay, while Hooper will direct aircraft sales in the US West Coast, including Northern California, Oregon, Washington and Idaho.

Hooper began his career in 1996 as a sales representative for JSSI’s Canadian operations. He held various aircraft sales roles after that, later becoming president of Promark Aviation Services from 1999 to 2019. More recently, Hooper was director of Aircraft Sales and Acquisitions at Executive Aircraft Services, before joining Jetcraft in December last year.

Vidal started her career as an engineer for Dassault Aviation in 2001, staying with the firm until 2011 when she became sales director of Executive Aviation at Synerjet Brazil. In 2014, Vidal moved to Bombardier where she acted as Sales Director in Brazil until last year.

“With more than 40 years combined experience in business aviation, Gerald and Laurence bring extensive local and industry knowledge to Jetcraft and will ensure we continue to exceed client expectations across the Americas,” said Dan Kilkeary, senior vice president, Americas Sales, Jetcraft.

He added that Jetcraft’s market insights have shown high demand for pre-owned business jets in the regions.

Vidal’s experience, at a glance

• 2014 – 2022: Sales director, Bombardier
• 2011 – 2014: Executive Aviation Sales director, Synerjet Brazil
• 2001 – 2011: Flight test installation manager/flight line engineer, Dassault

Hooper’s experience, at a glance  

• 2020 – 2022: Director, Aircraft Sales and Acquisitions, Executive Aircraft Services
• 2019 – 2020: Pilot, first officer, Transair Hawaii
• 1999 – 2019: President, Promark Aviation Services
• 2014 – 2018: Manager, Heli-One
• 2010 – 2012: Aircraft sales, LJ Aviation
• 1996 – 2003: Sales representative, Canada

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ZenithJet will provide internationally standardised greenhouse gas (GHG) measurement services in line with the GHG Protocol and ISO 14064. The consultancy aims to quantify the direct and indirect climate impact of its clients across the entire supply chain and all corporate departments.

Peter Antonenko, president, Jetcraft, said: “Working with ZenithJet has allowed us to examine the totality of our operations and activities, providing us with a data-based understanding of our impact on the planet and a baseline for change.”

Niall Olver, CEO, Axis Flight Training Systems, agreed: “Advancing sustainability is consistent with our role as a disruptor within the industry. We are designing and constructing innovative flight simulators and we wish to reduce our carbon footprint as we do it.”

ZenithJet president and Elit’Avia co-founder Nick Houseman said: “69% of our emissions came directly from operating our fleet and the remaining 31% came from related areas, including aircraft maintenance, electrical power and employee business travel.” 

“With these numbers as a baseline, it is possible to brake-down operations and seek reductions on a line-by-line basis,” he added.

ZenithJet claimed its new sustainability clients represent a cross-section of business aviation and look forward to working within “all dimensions of the industry.”

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