Menu
Throughout 2024, we’ve witnessed a significant rise in pre-owned aircraft inventory and a reduction in sale prices compared to the peak levels during the COVID-19 pandemic. While there have been numerous acquisitions, absorption rates have increased in most markets, leaving buyers questioning whether they should make a purchase now or wait.
One of the primary reasons for hesitation has been the uncertainty surrounding the 2024 presidential election and its potential impact on the markets. Additionally, the incentive of bonus depreciation was set to expire from the already reduced 60% currently in place this year. I’ve often advised clients and investors without an immediate need to hold off, anticipating that markets might depreciate significantly in Q1 of 2025, potentially presenting better deals.
However, with post-election clarity, it’s evident that buyers need to act now. At Jecobra Aviation, we’ve received more acquisition inquiries in the few days following the election than we have since the onset of COVID-19. A substantial number of aircraft have gone under contract, and the current enthusiasm is reminiscent of the fourth-quarter surge during the COVID-19 bonus depreciation run.
I predict that a significant portion of current inventories will sell before year’s end, leading to a surge in prices. There are plenty of excellent options in almost every market, with prices still 10% to 30% below COVID-19 highs. Delaying action will result in fewer options and higher acquisition costs.
The newly elected administration has been a long-time proponent of 100% bonus depreciation. Reports from Washington indicate that not only are we likely to see its return, but there’s a good chance it will be retroactive for 2024 purchases. If this happens, deferring your tax liability for a business aircraft—designed to enhance your productivity—makes perfect sense.
The bull market, coupled with the likelihood of bonus depreciation, administrative certainty, and regulatory clarity, all point toward an already developing seller’s market. The window of opportunity is small. I highly advise acting now to take advantage of the current buyer’s market and to ensure you can negotiate and complete your transaction in time to place the aircraft into service before year’s end, capitalizing on tax incentives and low acquisition costs.
But how can you successfully buy quickly and with confidence, ensuring a thorough pre-purchase inspection without compromising due diligence to place the aircraft into service by the end of 2024?
The answer is complex yet straightforward—with the right professionals who understand the structure and can identify the specific aircraft perfect for your mission and budget.
Newer aircraft that are fully programmed present far less post-purchase liability than older legacy aircraft without programs and impending large inspections. Several aircraft currently available are coming out of major inspections before year’s end, allowing you to accept them with a pre-purchase inspection adequate for that specific aircraft. Aircraft only a few years old, with full programs and excellent logbooks, usually require only minimal pre-purchase inspections, which can still be accomplished in time.
However, the majority of available inventory should undergo a thorough pre-purchase inspection to ensure you’re buying a safe, accurately represented aircraft that won’t incur huge post-sale maintenance costs. For example, we acquired a 2009 Falcon 7X. From start to finish, the Level III pre-purchase inspection at Dassault took 96 days. Such a transaction wouldn’t work for a buyer needing to take advantage of 2024 tax incentives and place the aircraft into service before year’s end. Or would it?
Yes, it can work. Here’s how:
These variables change depending on the aircraft, but we’ve streamlined the purchase process to allow for an extensive pre-buy post-sale sometime in 2025.
Most Maintenance, Repair, and Overhaul (MRO) facilities are booked through the end of the year due to the higher percentage of new aircraft deliveries occurring in the fourth quarter, causing their calendar inspections to come due simultaneously. This, coupled with the large number of pre-purchase inspections in Q4, often makes it unlikely to secure the inspection you want at a facility specializing in that make and model.
With our structured approach, you can negotiate with the best maintenance facility to conduct a thorough pre-purchase inspection in Q1 2025 when they have the bandwidth to accept the aircraft.
Selecting a broker who has facilitated several post-delivery transactions, backed by a team of experts who can close deals quickly and efficiently, is key to making a last-minute fourth-quarter acquisition. However, the clock is ticking. Your New Year’s resolution should incorporate all that you will achieve with your new aircraft—not just the desire to acquire one.
Don’t miss out on this limited window of opportunity. Our team at Jecobra Aviation is ready to guide you through a swift and confident aircraft acquisition, ensuring you capitalize on market conditions and tax incentives.
I work with professionals from lots of different industries, such as oil and gas, finance, law, technology, athletics, and even show business. But one of the professional demographics that benefits the most from private aviation is the commercial real estate executive.
I’m sharing a quick personal story about airline travel to illustrate a point –
Several years ago,I had a family event to attend in Billings, MT. At the time I was a student at Embry-Riddle and living in Prescott, AZ. Here is how my travel itinerary was supposed to pan out:
Origin: Prescott, AZ
Destination: Billings, MT
Event Start: Saturday 10am
Friday
2:00 pm Drive to Phoenix Sky Harbor Airport
4:00 pm Park and navigate through security
4:45 pm arrive at gate
5:00 pm Board
5:35 pm Depart PHX-SEA
8:35 pm Arrive in SEA
8:50 pm Disembark in SEA
9:15 pm Board next flight
9:35 pm Depart SEA-BIL
12:30 am Arrive BIL
It did not work out like that…
As flawed as this chosen itinerary may seem, I booked it because it was the only option that fit all my criteria. I had classes earlier in the day so I could not leave town until the afternoon. Additionally, there were no flight options that allowed me to depart early enough on Saturday morning to arrive on-time for the event. “A rock and a hard place” one might say. So, I opted for the out-of-the-way routing and tight connection so I could still attend class and make the event on time. I knew it was a risk from the start, but I took my chances.
When we landed in Seattle, there was no gate available, so we had to wait on the tarmac. “That’s fine” I thought to myself “if I sprint to the next gate I can probably still make it”. I anxiously watched the clock as my window to catch my connection dwindled.
The delay continued so long that my connecting flight departed before I even pulled my carry-on out of the overhead bin off the first plane.
With a missed connection and no other options to get me remotely close to my family event, I was stranded in the Sea-Tac airport on a Friday night, out of options, exhausted, and defeated. I missed the family event entirely. I spent the wee hours of the morning on a dirty couch in the airport and boarded the first flight in the morning back to Phoenix.
Traveling by airline is not just inconvenient for the average passenger, it’s impossible to serve the demanding schedule required of a high-level real estate professional.
Consider a real estate executive needing to attend two crucial meetings in one day—one in El Paso, TX at 10 a.m. and another in Lafayette, LA at 5 p.m. Traditional commercial flights would make this task nearly impossible. However, with private aviation, this schedule becomes entirely feasible, allowing the executive to attend both meetings and be back home the same evening. This flexibility is what sets private aviation apart as a strategic asset for commercial real estate professionals.
Commercial real estate often demands the ability to visit multiple properties in different locations in a short time frame. Coordinating these trips with commercial flights can be time-consuming and fraught with delays. Private aviation, however, allows professionals to move between cities or states seamlessly. For instance, a morning site visit in Houston can be followed by an afternoon meeting in Dallas, thanks to the convenience of flying directly to smaller, regional airports closer to your destination. This eliminates the bottlenecks associated with commercial airline schedules and boosts productivity.
Being able to act swiftly is a major competitive advantage in commercial real estate. Imagine a prime property becoming available for a limited time. A commercial flight might not get you there in time to inspect it, but private aviation can ensure you’re on-site within hours, giving you the edge to secure the deal. By enabling quick responses to opportunities, private aviation allows real estate professionals to stay ahead in a fast-moving market.
In commercial real estate, relationships are paramount. Meeting clients, investors, and stakeholders face-to-face builds trust and facilitates better communication. Private aviation enables professionals to travel at short notice and meet clients in convenient locations. This flexibility strengthens relationships and demonstrates a commitment to personalized service, which can be pivotal in securing repeat business.
For those relying on commercial airlines, delays, rigid schedules, and unexpected disruptions can create significant setbacks. A personal story illustrates this point: after booking a flight with tight connections, I found myself stranded in Seattle due to a gate delay, missing a critical family event. Had I chartered a private jet, the entire trip would have been streamlined and far less stressful. In commercial real estate, such delays can mean missed opportunities or lost deals.
At Jecobra Aviation, we understand the travel demands placed on commercial real estate professionals. Our services are designed to alleviate those pressures:
We’re private aviation experts with decades of experience in aircraft management, flight operations, charter brokerage, sales, and acquisitions. Whether you’re looking to charter a jet, purchase an aircraft, or explore your options, Jecobra is here to make the process seamless.
Private aviation is not just a luxury; it’s a requirement for maximizing growth in commercial real estate. By offering flexibility, speed, and efficiency, it empowers professionals to respond quickly to opportunities, maintain strong client relationships, and outmaneuver the competition. In an industry where time is money, private aviation is the key to staying ahead.
Contact Jecobra Aviation today to learn how we can support your private aviation needs—whether it’s chartering a flight, acquiring an aircraft, or managing your existing plane.
I delivered my first Phenom 300 in 2010, the same year Instagram officially launched, One Direction formed as a band, and SpaceX conducted its first test flight of the Dragon spacecraft. I instantly fell in love with the aircraft; its fusion of cutting-edge technology, outstanding performance, reliability, and operational simplicity make it the premier choice for a light jet. It’s no surprise that the Phenom 300 has been the best-selling light jet for 13 consecutive years.
With 5000 hours of personal flight time in Phenom 300s and having facilitated numerous transactions, my passion for this remarkable jet remains as strong as it was 14 years ago. I have successfully guided many owners through the management and sale of their Phenom 300s. Here are my top tips to help you maximize the value of your Phenom 300 and attract the right buyers.
Presenting Your Phenom 300 at Its Best
Setting the Right Price
Effective Marketing Strategies
Highlighting the Unique Features of Your Phenom 300
Navigating the Sales Process
Conclusion
Selling your Phenom 300 is a significant undertaking, but with the right strategies, you can maximize its value and attract the right buyers. By presenting your aircraft at its best, setting the optimal price, utilizing effective marketing strategies, and navigating the sales process professionally, you can achieve a successful sale.
At Jecobra, we are dedicated to assisting our clients through every step of the process. If you’re considering selling your Phenom 300, reach out to us for expert guidance and support. We are committed to ensuring your sale is as smooth and profitable as possible.
When it comes to acquiring a private jet, the Phenom 300 stands out as a top choice for many buyers. Known for its exceptional performance, luxurious cabin, and competitive operating costs, the Phenom 300 offers a remarkable balance of comfort and efficiency. Here’s my comprehensive guide to buying a pre-owned Phenom 300, ensuring you make informed decisions and secure the best aircraft for your needs.
The Phenom 300, produced by Embraer, has quickly become one of the best-selling light jets in the world. With a range of approximately 2,000 nautical miles and the capacity to carry up to nine passengers, it is ideal for both short and long-haul flights. The aircraft boasts advanced avionics, fuel efficiency, and a spacious cabin, making it a preferred choice for business travelers and private owners alike.
Choosing the right brokerage firm can make all the difference when buying a pre-owned Phenom 300. Jecobra offers a comprehensive range of services to ensure a smooth and successful transaction:
The Phenom 300 is an excellent choice for those seeking a versatile, efficient, and luxurious private jet. By following this comprehensive guide and partnering with a trusted brokerage firm like Jecobra, you can navigate the complexities of the pre-owned aircraft market with confidence. With our expertise, acquiring a pre-owned Phenom 300 becomes a rewarding and fulfilling experience.
For more information or to start the process of purchasing a pre-owned Phenom 300, contact me at Jecobra today!
