Jay Mesinger is the CEO and Founder of Mesinger Jet Sales, an international aircraft brokerage firm, and has been regularly contributing to AIN since 2018.

AIN Contributor

Jay Mesinger

We as a collective industry have been working to get our messaging right to understand the unprecedented activity currently in preowned business aircraft markets. Are aircraft prices going up or were they just flattening out? Was inventory really shrinking before our eyes to record lows or was it just right-sizing based on a new demand ratio?
We are experiencing a supply versus demand ratio like we have possibly never seen. During the emerging market phenomenon that lasted from 2003 through 2008, the supply of business aircraft inventory was also stressed. However, the biggest difference between then and now was that, in the emerging markets, buyers wanted only new or like-new aircraft. The smaller, older airplanes did not fall into that stress.
The mantra we have been using at our company for the past six months is when you come in as a buyer, you must be patient. Of course, we might find an airplane in two days, but it also might take 90 days or more. Patience is a virtue.
I am always assured by my clients that they can wait. Then on about week two of the hunt, there seems to be a crack in the veneer of their patience.
The difference today is we will not see multiple airplanes for sale on websites or in magazines. They will trickle out one at a time and sell in days—in most cases for the asking price.
How should we feel about that? I guess it is time to be OK with this frenzied pace.
What is critical is that you do not get swept up in the pace and be allowed to miss critical due diligence. There is no way that anyone should buy an airplane without a comprehensive pre-buy inspection, accept weak or missing records, and/or not have a proper purchase agreement. As my good friend Zig Ziglar would say, “Price is a one-time thing, cost is a lifetime thing.”
Remember, this is not the Wild West even though it might seem like it. This is just a pandemic reality of the largest-ever number of first-time buyers coming into our market space.
How does one best protect themselves when entering this market? Use common sense. If it seems too perfect, it just might be. If you are feeling pushed, you might just be.
Aircraft transactions are expensive, so it’s important to do them correctly the first time. Make sure you are well represented and that whoever represents you can build a transaction with all the purchase tools needed to make good choices, including mission profile modeling, budgeting work, and pre-buy inspection protocols.
Each and every part of a complex 360-degree process must be well thought out. Do not be afraid to get in this ownership process, but do be afraid to get in without smart help.
Jay Mesinger is the CEO and founder of Mesinger Jet Sales, an international aircraft brokerage firm. With 47 years of successfully buying and selling aircraft, Mesinger Jet Sales has a global reputation for personalized, transparent service.

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

AINsight: Did We Get Caught Flatfooted? 

Even in this frenzied preowned business aircraft market, it's important for buyers to use common sense and not cut corners during sales transaction process

2024 Corporate Aviation Leadership Summit

Kerry Lynch

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Ultra-long-range model has amassed 75 records, many from customer trips

Speed Records Abound for Bombardier's Global 7500

We talk through the process from conception to delivery

Flying Privately: How Aircraft Like the Bombardier Global 8000 Come to Life

Hanneke Weitering

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

News about simulators and training procedures, as well as workforce.

AltiSky will assemble, sell, and service VoltAero's aircraft

VoltAero Picks U.S. Distributor for Cassio Hybrid-electric Aircraft 

Jennifer Leach English

Company noncommittal on expanding its lineup upwards, citing $1B investment cost

Embraer’s Plans for a Larger Bizjet Remain Up in the Air

Operations ebbed, backlogs were steady, and available aircraft increased

GJC: Bizjet Market Continues To Stabilize in 3Q2024

Greenville-based charter operator pre-orders 10 eVTOL air taxis

SAI Flight To Operate SkyDrive eVTOL in South Carolina

Charles Alcock

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

More In Aircraft

Speed Records Abound for Bombardier's Global 7500

Ultra-long-range model has amassed 75 records, many from customer trips

Flying Privately: How Aircraft Like the Bombardier Global 8000 Come to Life

We talk through the process from conception to delivery

VoltAero Picks U.S. Distributor for Cassio Hybrid-electric Aircraft

AltiSky will assemble, sell, and service VoltAero's aircraft

Embraer’s Plans for a Larger Bizjet Remain Up in the Air

Company noncommittal on expanding its lineup upwards, citing $1B investment cost

GJC: Bizjet Market Continues To Stabilize in 3Q2024

Operations ebbed, backlogs were steady, and available aircraft increased

SAI Flight To Operate SkyDrive eVTOL in South Carolina

Greenville-based charter operator pre-orders 10 eVTOL air taxis

AMSL Starts Untethered Flight Tests with Vertiia eVTOL Aircraft

Australian start-up is developing a hydrogen-powered aircraft

Deliveries Increase as EHang Works to Boost eVTOL Aircraft Performance

Chinese manufacturing wants to extend range with solid-state batteries

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN