By Vincent Wigmans
One of the first questions that comes to mind when buying or selling an aircraft is, “how long will it take me?”. There is no exact answer to this question. The time that planes are for sale on the market depends on several factors: the intensity of demand, location, the price of the aircraft, its age, its general shape, total flight time etc.
However, there are several scenarios that can cause slow negotiations and therefore make the deal much longer than expected. In this blog, Fly Aeolus Aircraft Sales and Acquisition explains some of these points to you!
Incorrect price
Whether you are a buyer or a seller, the price of the aircraft has a huge impact on the length of the transaction. If you sell an aircraft above market value, the aircraft will stay on the market for a long time and will not generate much interest. Conversely, if you want to buy an aircraft, you will pay attention to the offers that are the most advantageous for you, while being careful of the unusually low offers. Indeed, these are often the sign of problems that you might discover over time.
According to JETNET, a ratio was therefore created in order to calculate the market value of an aircraft based on price and market trends: the ETP ratio.
The ETP ratio is an indicator of the marketability of an aircraft. Like the real estate market, the ETP ratio calculates an aircraft’s maintenance exposure relative to the asking price. This is achieved by dividing the maintenance risk of an aircraft by its asking price. The ETP ratio often plays a role in shaping a pricing strategy and can also be used as a “thermometer” to measure current market trends. “Days on Market” (DoM) analysis has shown that when the ETP ratio is greater than 40%, the time spent on the market for a listed aircraft typically increases by more than 30%.
Find out below which aircraft models are likely to remain in the business jet market for a long time:
You are looking for something too specific:
Of course, you want an airplane that can meet all your needs and expectations: in good condition, affordable, close by, very little used etc. But if you are interested in only one model that is difficult to find or too popular, it could take several months (or even years) to get your ideal and perfect aircraft…
You cannot find the right buyer or seller:
If you are interested in a quick aircraft transaction, the smartest and most efficient option is to contact an aircraft broker. Like real estate agents but for planes for sale, an aircraft broker will identify what you are looking for based on your current transportation needs. He or she will support you throughout the process of selling or buying your favourite aircraft. Having the right market knowledge and a rich network, he or she will be able to build relationships with buyers and sellers around the world.
If you are planning to buy or sell an aircraft, contact us at sales@faaircraftsales.com. You can also call us on +31 (0)15 820 0999.