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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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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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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