Charlie Bravo Aviation

Why use a broker…

Posted by Jennifer Hunt, On Monday, April 16th, 2012  |  Leave a Comment

Why use a broker…

As international businesses grow, airspace regulations loosen, and diplomats and celebrities take a bigger world stage, demand for private aviation around the globe builds. And while many people see the need to charter, lease or purchase aircraft, the selection of an inappropriate aircraft can become a safety and financial nightmare.

In my line of business, I hear all sorts of stories of aircraft owners getting burned by undisclosed damage history, inaccurate market valuations and unscrupulous advice. Since I’m a huge advocate of using business aircraft as a competitive advantage, these tales turn my stomach.

Truthfully, there are few standards to protect the consumers of these large ticket assets. Therefore, I believe it is very important for buyers to obtain sound counsel about the type of aircraft they purchase, the conditions under which it is bought, and how much it is truly worth—in today’s market and when they want to resell it.

Obtaining this kind of counsel before purchasing an aircraft helps eliminate costly mistakes and keeps the market from becoming inflated with a plethora of brokers vying for the same buyer’s business. When a broker makes inquiries on behalf of a buyer, the buyer is insulated from sharks smelling blood in the water.

Because of his or her relationships with other professionals in the industry, a broker can often find out information about price expectations, the seller’s level of motivation, and any skeletons in the pedigree of an aircraft. A good broker or consultant also can help with negotiations, pre-purchase inspections, import or export complications, and referrals for legal or tax matters, management, training or financing. In short, the good ones usually pay for themselves in spades.

A final word to the wise: aviation consultants and aircraft brokers are not required to have any formal training or licensing and are not held to any code of ethics. A reputable broker or consultant will provide references and be well respected among his or her competitors. Double check.

2001 CJ2 Now Available

Posted by Matt McCloskey, On Wednesday, December 7th, 2011  |  Leave a Comment

New to Charlie Bravo's available inventory: A fabulous 2001 Citation CJ2. Check out the video below and contact us for more information about this CJ2!

Visit us at NBAA in October!

Posted by Stu Smith, On Friday, September 30th, 2011  |  Leave a Comment

Please join us for bloody marys in the mornings at our static display right inside the entrance to NBAA. We will be exhibiting a gorgeous CJ1+ with a custom King Ranch interior. The specifications and a few more photos are available by clicking here.

No Plane, No Gain

Posted by Stu Smith, On Monday, August 15th, 2011  |  Leave a Comment

Several weeks ago, I had the opportunity to speak to about 2000 businesswomen at a Women Business Enterprise conference in Las Vegas. I had been assigned the topic of responding quickly to clients’ needs and having a faster speed to market. What more perfect application for the benefits of private aviation could there be?

I knew that many people in my audience had never thought about the benefits of flying privately before, but I was surprised at the incredibly positive response to my speech. A number of business owners had flown in a private plane for a special event or as a guest of someone else but had never thought about the return on investment for time spent more wisely than in the security line at the nearest major airport.

The data I used to support my claims is from a 2009 survey conducted by Harris Interactive for the National Business Aviation Association (NBAA) and the General Aviation Manufacturers Association (GAMA), the co-sponsors of the No Plane No Gain campaign. I told them business aviation serves 10 times the number of U.S. airports served by the commercial airlines and that, on average, 92 percent of the most innovative companies, most admired brands and best places to work use business aircraft.

I also let them know that 59 percent of companies using business aviation as a competitive differentiator had fewer than 500 employees and almost all companies putting their plane to work as a business asset enjoy far greater profitability than companies that don’t use one or more aircraft in their normal course of business.

Within the industry, we know how much easier and productive life can be with a private aircraft at our businesses’ disposal. We understand the benefits to the economies of developed countries all over the world. We have seen firsthand the life-saving applications of small, nimble aircraft in natural disasters. Like thousands of other people, we earn a great living in general aviation. Why aren’t more of us out there evangelizing the heart of our industry to those business people who don’t already know the benefits? Don’t we owe it to ourselves and each other?

Hope for Middle Markets?

Posted by Stu Smith, On Thursday, July 7th, 2011  |  Leave a Comment

In our offices, we’re seeing a lot of movement in the large corporate jet market and the smaller, newer jets and turboprops. But those older, mid-sized cabin aircraft just don’t seem to be recovering like the others. At first I just thought this was a lag in demand, and it very well could be. However, lately I’ve become more and more convinced that it probably has to do just as much with financing as with the slightly outdated avionics and lack of fuel efficiency.

Companies, at least in the United States, seem to be more cash rich than ever before. Foreign buyers of large jets are ultra high net worth individuals or global corporations. Almost none of these buyers complete their purchases with financing as part of the deal. One of my colleagues reported that 30 of his 32 transactions last year were cash deals. Only one of ours last year went through a bank—and the bank that wrote the note was also the bank that was selling the plane on a repossession. The bottom line is cash is king. Financing takes a long time, requires a lot more documentation than ever before, and is harder to obtain.

Most of the large traditional aircraft lenders are being selective with the profile of aircraft for which they are giving loans. A few won’t look at anything with an airframe older than 10 years. Several have formulas based on the age of the aircraft coupled with the duration of the loan. It seems that all of them are granting loans a little more liberally than 18 months ago.

However, one source of loans for small and mid-sized companies (who are the target market for the small and mid-sized, lower-entry-point aircraft) is still lagging very heavily. According to my banker friends, roughly 50 percent of the small local banks with whom these business owners have long-term relationships are operating under cease and desists from the banking fallout. The regional banks are eyeing some of the small banks and therefore not as focused on building out aircraft lending lines of business. This has left a gaping hole in the economy of pre-owned aircraft sales.

As I like to tell my employees (and my kids, for that matter), I’d rather hear solutions than problems, so here’s mine. At a recent National Aircraft Finance Association (nafa.aero) conference, I was told there’s probably a home for every reasonable aircraft loan request, and sometimes the best way to find one is through an aircraft finance broker. Check out NAFA’s website or give us a call for a list of those we recommend.