When selling a plane, each phase of the process must be managed carefully in order to insure value retention and liability protection.
General description of a typical sale:
- Valuing the asset takes an objective approach and a keen sense of the information available. An aircraft blue book or VRef value does not tell the whole picture. The market must be examined and analyzed. The asset must be compared to the competition and positioned as to the desires to sell quick or maintain a specific minimum value. Once this is established, proper advertisement can take place.
- Next, we must make sure the plane is prepared to go through the process of examination by other experts in the field. These range from cosmetics to in depth maintenance and condition of the plane's structures and systems. It must show well in all aspects of the process.
- Once a qualified prospect agrees to actively pursue the asset, the negotiations and contract development begins. This is often where a good sale can turn bad. A level playing field must be established to ensure a successful transaction. Once all of the details to the sales agreement are hammered out, it's time for pre-buy inspection.
- The pre-buy inspection is where most deals fall through. An independent maintenance facility will examine the plane for defects. In most cases, the shop will be looking for as must billable work as possible for their benefit. This is where the knowledgeable broker with a technical background comes into play. This process must be looked at objectively as to the true issues and separate those that are simply money makers for the shop. If this is not done, emotions run high and the deal falls apart.
- Upon completion of the pre-purchase inspection and subsequent repairs, the plane must be delivered in a specific state. To ensure this happens properly is not always the easiest task as maintenance is not always perfect.
- Once the plane is verified in the proper condition for delivery, coordinating funds transfers, final executions of the delivery agreements and registration can take place.