Additionally, at the General Aviation Terminal in Nice Côte d’Azur Airport, business aviation users can now effortlessly enter our virtual space through an interactive Jetcraft display – which begins with the clouds parting to reveal our virtual hangar through the use of motion sensor technology.

Bringing the Metaverse and VR technology into our operations isn’t simply innovation for the sake of it. While it’s still early days, and how and when the internet will evolve is yet to be determined, we know that it’s crucial we join up our full Beyond the Globe experience to learn how to meet the requirements of business aviation’s changing customer base.

An evolving audience

Business aviation users are getting younger – with Jetcraft data showing the number of buyers under 45 has risen by 20% in the last five years. Our industry needs to adapt to meet the needs of these younger aircraft owners, accommodating their busy lives, while also providing the technology-driven experience they prefer.

Luxury retailers are leading the way in this area. Several fashion houses have embraced Artificial Intelligence (AI) with brands including Tommy Hilfiger, Dior and Estee Lauder implementing AI chatbots to provide personalized fashion advice and respond to questions on social media in real time.

The Metaverse is also playing an important role in delivering a superior retail offer, with Prada creating its own virtual reality experience and Gucci having sold virtual handbags on Roblox. By 2026 25% of consumers worldwide are predicted to embrace the Metaverse, motivating brands to use the platform in forging connections and brand loyalty, especially in the high-net-worth segment.

The business case

Ultimately, if our sector is to truly continue to meet customer requirements tomorrow, it must evidence its role as a technology trailblazer today. That means implementing digital solutions to make the buying process smoother than ever, breaking down barriers and maximizing convenience.

At Jetcraft, we’re harnessing the latest, innovative technology to provide market-leading resources to inform aircraft buying and selling decisions. With over 80 in-house experts in more than 25 locations, expanding into the metaverse is part of our continued drive to go further, move beyond physical barriers and meet our clients where they are.

To go Beyond the Globe with Jetcraft and explore our virtual hangar visit: www.jetcraft.com/metaverse/

As we reflect on our 60-years’ experience, there are several ways in which we believe a business can build strategically and develop a global presence:

Firstly, ensuring you select the right people is critical, you need to have confidence in your team and trust their abilities. Success in this industry isn’t just about having excellent salespeople but having outstanding individuals who support the organization as a whole. At Jetcraft, our experienced financial, legal, branding and marketing teams are vital to guaranteeing seamless transactions for the benefit of our clients.

Secondly, building long term resilience involves growing your organization responsibly. As you expand and develop your team and transaction size, reassess your position to ensure growth is occurring in a responsible way and aligning with your long-term objectives.

Lastly, a successful global structure requires the right cultural fit and a regional understanding of your employees and clients. At Jetcraft, we ensure everyone in our team has a solid grasp of how the business works, as well as using products such as StrengthsFinder, to highlight the key qualities of our people, leveraging this in order to provide additional training. Having people on the ground who have knowledge of local cultures, customs and regulations enable us to find the right solution for our clients.

By carefully building our global company and creating a strong foundation, we have been well positioned to support our clients through the universal storm of the pandemic, and onwards through today’s boom in private aviation.

To find out more about how we can assist you, please contact your nearest Jetcraft sales representative to discuss your options.

Jetcraft is now located in more than 20 countries worldwide and our team are experts at dealing with regional aviation requirements and regulations. This ‘boots on the ground’ structure has enabled us to source and move business aircraft our clients would otherwise not have access to during the pandemic.

Forming a global structure

Jetcraft began as a predominantly North American-based organization. When Jahid Fazal-Karim, Owner and Chairman of the Board at Jetcraft, joined the company he brought a global perspective with him, guiding Jetcraft’s direction and growth strategies, and determining where staff should be located.

Since that time, we have transitioned to an expanding international corporation with the introduction of operations in Russia, Dubai, Switzerland, Asia, Turkey, Australia, Africa and the UK.

How our clients benefit

Our global structure has given us a significant advantage to facilitate transactions over the last two years. With international travel restricted, we leveraged our local teams on the ground. This enabled us to provide up-to-the-minute insight into regional markets and meant our teams could always assess each business jet in person, understand its technical condition and plan its movement.

As a result of our global presence, in 2020 we were able to close a transaction of a Dassault Falcon 900LX in only 14 days and we arranged the sale of a Dassault Falcon 7X during the height of the pandemic. Having experts on hand in the location made both these transactions possible and removed the need for our team to cross international borders.

Jetcraft’s structure has also meant it can capitalize on both high and low performing regions to weather global shocks. Right now, the United States makes up a sizeable portion of the global business aviation market and due to our international presence, we’re able to react to higher regional demand and move inventory between several countries.

By carefully building our global company and creating a strong foundation, we have been able to withstand the downturns. To find out more about how we can assist you, please contact your nearest Jetcraft sales representative to discuss your options.

Prepare now, purchase later

If you want to close in 2020, you need to start your purchase now as pre-purchase inspection slots are already filling up fast.

Many maintenance providers were forced to make changes during lockdown, resulting in modified or reduced staffing levels. Meanwhile, owners are taking advantage of the downtime to complete due or upcoming maintenance. These factors are creating capacity challenges, leaving fewer pre-buy slots and less time to close on an acquisition.

Don’t wait for the election

While the uncertainty of an election always impacts transactions, this year will be especially significant due to the possibility of tax changes. Many buyers have so far benefited from bonus depreciation on their aircraft, and some can also make use of the CARES Act net operating loss carryback scheme. It’s worth speaking with a qualified tax specialist to find out whether you qualify for either.  If you need a referral, we’ll leverage our extensive industry relationships to find someone to help. It’s smart to lock in an acquisition under 2020 tax laws, as a new administration or the ongoing pressures of the current health crisis may cause some of these regulations to change.

If you’re considering waiting until after the result in November, don’t: for a 2020 closing, we recommend being under contract by October 31^st at the latest. Despite the restrictions in place over the past few months, Jetcraft was able to execute several transactions in record time: one, an Embraer Legacy 450, was completed in seven days. Another, a Dassault Falcon 900 LX, took just 14 days. While our sales creativity and ability to turn around transactions remains undiminished, these feats become trickier as the pressure on pre-buy inspection slots rises, and the days remaining in 2020 fewer.

Good inventory available

There is a solution to the pre-purchase challenge: Jetcraft has already completed or scheduled pre-buys on our current and inbound owned inventory. This means all of the aircraft currently on, or scheduled to be on, our books are ready for an expedient closing.

Should you purchase from Jetcraft’s inventory, you’ll further benefit from two newly introduced programs: six months’ unscheduled maintenance coverage from JSSI; and an interior treated with MicroShield 360, an antimicrobial coating system which protects against Covid-19 and other pathogens for up to 12 months.

Lock it in for 2020

Young, attractive pre-owned aircraft are in good supply and interest rates remain low. Our lenders remain committed to us and lines of credit are still available for cash deployment. Furthermore, with Jetcraft’s ability to take in trades, buyers can upgrade quickly and avoid a risky crossover period. Just don’t wait too long to do it – or you’ll have to postpone your aircraft purchase until the new year and your competition may get there first. Literally.

Do you know what 2021 holds for us all? Neither do I. But, if you do, please call me – I have a few other questions I hope you can answer. And maybe we can help you acquire an aircraft in the meantime.

Many industries have done an excellent job pivoting to meet the demands of the Covid-19 pandemic – distilleries making hand sanitizer, fashion brands stitching surgical masks and car manufacturers producing ventilators.  At Jetcraft, we are proud and privileged to be part of a sector that was ready to act when needed.

For example, aircraft cabins configured to carry the same life support equipment found in trauma centers have been used widely to transport patients, especially during this crisis. The variety of these specially equipped business jets gives people access to larger hospitals regardless of how small their local runway is, or how far they need to travel. This medical capability was true before Covid-19 and it will remain true long after.

Medevac operations are not the only use for business aircraft during a pandemic. Throughout this crisis we have seen private jets previously used for corporate missions being offered for cargo – in particular, transporting personal protective equipment, ventilators and medications. Efficiency is a must at times like this, as outbreaks spike at different rates around the world and needs are constantly shifting.

Statistically, 40% of air cargo is transported in the belly hold of passenger aircraft. With a significant portion of the world’s airline fleet grounded, a pinch point to move supplies occurred. Business aviation stepped up with owners and operators taking on some of the critical capacity needs.

A focal point of air transport, business or commercial, has been putting people in front of one another with great speed. Video conferencing is helping fulfill the role of in-person meetings in the short term, but the need hasn’t been replaced. In this regard, business aviation has been instrumental in the fight against Covid-19, as governments and agencies use private aircraft to fly scientists on fact-finding missions and reposition medical staff to areas with a shortage.

As for corporate owners, these jets have proven more useful than they may have ever imagined. Business aircraft are making it possible to move employees during a time when airline flight options are minimal, and allowing key individuals to be where they are needed to keep supply lines running smoothly.

Business aviation has long been a tool designed to fit around people’s needs, and it is also worth mentioning the select group of people who make these missions possible. It is thanks to the pilots, mechanics, ground crews, line technicians, and staff at the manufacturers, FBOs and MROs across the globe, that staffed, flew and maintained these aircraft so they might complete their missions. To them, we share our greatest thanks for their hard work in enabling our sector to support Covid-19 relief efforts, and for their continued dedication to our industry now, before, and in the future.

Should I consider an aircraft purchase now?

If you are in the position to do so, absolutely.  While these are challenging times, we encourage those who can to take a long-term view and consider aircraft purchases or upgrades to meet their needs.  However, it’s important to understand how to maximize your benefits and navigate the current market.

Good quality inventory is becoming available, interest rates are low and bonus depreciation still applies, so there is plenty to take advantage of if this is an option open to you. At Jetcraft, we are well-versed on how to leverage the current market to negotiate the best deal for our buyers.

Minimizing downside exposure is critical for many of our customers. To help mitigate this, avoid holding a second aircraft on your books when upgrading to a new model. Jetcraft is one of few companies with the ability to take in trades, and we can help customers avoid a risky crossover period.

All our aircraft are marketed using the most up to date and highest quality photos and videos and we can facilitate on-the-ground virtual aircraft viewings as needed, while travel restrictions are in place.

I’m not using my aircraft.  Will it lose value?  Should I sell it?

Not necessarily.  Many factors affect resale price. An aircraft’s value tends to diminish the more it flies and the more hours it accumulates, which is comparable to mileage on a car. Engine hours are another contributor, meaning the closer an engine is to its recommended time between overhaul, the less value it holds.

By not flying your aircraft, these factors are put on pause and you may in fact experience a slower rate of depreciation. Aircraft are designed to be able to remain grounded if required. Like other modern vehicles, they will not be majorly affected if not used for a period of months. If properly maintained and hangared, the value can be significantly preserved.

While you’re not using your aircraft, take the opportunity to schedule it in for any maintenance or refurbishments, so it’s in perfect condition for when you next fly. Many facilities remain open and ready to assist customers with their service requirements.

If you do decide to sell, we are well-equipped to match you with buyers around the world through our global network or help you find a maintenance facility to perform upcoming work that could improve the saleability of your aircraft.

Will business aviation remain crucial?

In one word, yes.  It’s at times like these where the speed, efficiency, flexibility and safety of business aviation comes to the fore. The ability to fly anywhere at a moment’s notice and get home quickly is proving invaluable.  By avoiding large crowds of people and minimizing contact with others, business aviation can help limit the spread of infection for those who must travel.

Sadly, some buyers will be financially impaired by the effects of the COVID-19 outbreak, and yet there will be others who will come through this experience even more convinced of the value of aircraft ownership.

Who do I contact if I have additional questions about my aircraft?

Our Jetcraft representatives around the globe are available to assist you. Contact us for the latest market data, to find out what your aircraft is worth or to discuss your options.

And remember, stop hoarding, wash your hands and cover that cough.

Through the client and prospect conversations we had at our static venue, we saw that most in the industry remain upbeat and on-track with their aircraft acquisition plans. As we have stated often through this year, there are deals out there and business transactions continue at a solid pace. Jetcraft remains on track to close another record-breaking year, making 2016 and 2015 the two strongest years in our company’s history.

Financing and the US Election

Even though business is continuing at a solid pace, and the majority of our NBAA interactions were positive, a few conversations did raise a few concerns that some buyers and sellers in the industry might wish to keep their eyes on. Mostly, these discussions centered on lending and financing, fueled by the consolidating lending space as lenders exit the business aviation sector, creating more competition.

Days after NBAA, some customers expressed concern with the change in government and that the new administration may, for example, eliminate corporate deductions once in place. Such a measure could have a significant impact on our industry. However, it is important to note that the President-elect is a heavy user of corporate aviation. This could bode as positive news for the industry, as there is a vested interest in maintaining a healthy business aviation sector and a strong infrastructure.

The pending US election also caused some to pause momentarily and entertain a ‘wait and see’ approach, but with the election season over, at least some uncertainty has been removed, even if the effects of the result will only be seen over time.

With NBAA and the election in the past, Jetcraft has an optimistic view for future business and is seeing business continue as normal based on the number of deals pending compared to previous years at this time.