“We provide inclusive solutions for our aviation clients around the world by providing technical, operational and marketing support 24/7,” says Matt Hagans, CEO and Founder of Eagle Creek Aviation Services. “Although many of our relationships begin with an aircraft purchase, we are more than a broker. As a stocking aircraft dealer with our own inventory, we are active aircraft buyers. We also operate our own charter fleet, so we really understand all aspects of aircraft acquisition, ownership and operation. This gives us a dynamic insight to help us treat every client’s transaction as though it were our own investment.”

In business for more than 30 years, Eagle Creek now operates two facilities, its headquarters in Indianapolis and a second at Naples Jet Center in Naples. In addition to serving Southeastern U.S. markets and Southwest Florida transient needs, theNaplesfacility specializes in supporting the growing Latin and South American sales and service markets with multilingual service and sales staff, Venezuelan (INAC) Approval and South American Mobile Service. Adding to Eagle Creek’s world renowned Commander leadership as the largest Twin Commander Factory and Honeywell TPE-331 Service Centers, both locations are Embraer Authorized Phenom Service Centers.

Eagle Creek helps those in the market to acquire an aircraft by developing an acquisition plan based on clients’ needs and trip profiles. The company compiles a complete market analysis of specific aircraft that meet the needs of the client and then manages the acquisition process, including insurance and tax issues. Eagle Creek also provides after-sales support and, when desired, can crew and manage the aircraft after its purchase.

“Eagle Creek strives for unmatched after-sales support,” Hagans says. “Our after-sales support includes assistance with maintenance and service along with technical and operational support, even on-site and Mobile Team dispatch for Aircraft On Ground (AOG) situations.”

For those electing to sell an aircraft, Eagle Creek’s rich history, which includes three decades of daily market involvement and many thousands of successful closings, has given the company a virtually unmatched dynamic in understanding the worldwide aviation markets. “We provide a detailed market summary for the specific model aircraft and then aggressively market the airplane with print media, direct contact programs, online resources and through the industry’s largest contact network,” Hagans says.

“We leverage the unique virtues and competitive strengths of a seller’s aircraft against similar aircraft on the market,” Hagans continues. “We have a model-specific and sophisticated knowledge of the marketplace and the hard-earned respect of the industry to open the doors needed to find that one perfect buyer.”

Eagle Creek Aviation Services, Inc., is a member of the National Aircraft Resale Association (NARA).

“Our membership in NARA directly benefits our clients,” Hagans says. “Our network of relationships, which includes the network of dealers, brokers and associates inNARA, allows us to look far beyond the information found on the internet or in standard aircraft sales listings and publications. Many of the best opportunities aren’t even advertised.NARAmembers working together make those opportunities easier to find.”

For more information about Eagle Creek Aviation Services or NaplesJetCenter, visit http://www.eagle-creek.com/ and http://www.naplesjetcenter.com/ or call 317-293-6935.

For-sale worldwide trends across all aircraft market segments, comparing February 2013 with the previous February, show the fleet-for-sale percentages in all market sectors were down in the February comparisons, except for piston helicopters. Business turboprops moved still lower, well below the 10% mark, which JETNT says clearly demonstrates that it has moved into a seller’s market.

JETNET notes that two segments, business jets and turbine helicopters, have crossed the 19,000 in-operation level. It is noteworthy, the company reports, that for-sale business jets have changed very little from the 2,500 level over the past several years since climbing from the 1,600 level prior to 2008. The percentage for sale has declined as a result of the growth of the in-operation fleet numbers. In-operation business jets have increased by 472 while those for sale have decreased by 30. The total fleet increased by 523 business jets from February 2012 compared to February 2013. However, the number of business jets in production declined by 81 and the number taken out of operation through retirement or storage increased by 132.

For the full report, please visit JETNET at jetstreamblog.com.

Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business, commercial and helicopter aircraft fleet and marketplace, comprised on some 100,000 airframes. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via real-time internet access or regular updates.

For more information about JETNET LLC, go to www.jetnet.com or call 315.797.4420.

NARA Chairman Brad Harris said, “It is important that we do everything we can to encourage bright and talented students to consider a career in the business aviation industry. We want to ensure the future leaders of our industry by supporting responsible young people with integrity and a passion for aviation.”

The scholarship will be offered byNARAfor one student in 2014 with the amount dependent on the funds raised throughNARA’s various outlets, including the auction and other private donations. Anyone interested in donating to the NARA Business Aviation Scholarship should contact Devri Pitts, NARA’s Independent Association Director, at 866-284-4744.

Without the financial support of these NARA members, our spring meeting and related events wouldn’t be the networking, information-sharing and association-building success that we are sure they will be.

Below are the sponsored events and the names of the sponsoring companies. We truly appreciate the generosity, support, dedication and participation of our sponsors. Thank you!

Wednesday Evening Welcome Reception

• 1^st Source Bank
• Advocate Consulting Legal Group
• Dassault Falcon Jet
• Elliott Aviation
• Honeywell
• Insured Aircraft Title Service

Thursday Member Dinner Banquet

• CIT Business Aircraft
• DuncanAviation
• West Star Aviation

Broker/Dealer Member Breakfast

• Dassault Falcon Jet
• Front RangeAviation
• GreenwichAeroGroup/Western Aircraft
• Wetzel Aviation

Associate Member Breakfast

• Aviation Legal Group, P.A.
• Jet RVSM Services, LLC

NARA Annual Golf Tournament Trophies

• AIC Title, LLC
• PNC Aviation Finance

This year’s three-day spring meeting will feature industry-specific speakers and presentations, networking opportunities, an associate member forum and an auction to raise money for a planned NARA Business Aviation Scholarship to be awarded in 2014.

Speakers
Communicating information about the industry, the association and the economy is always a vital priority for NARA members. We will meet those needs this year with two featured guest speakers– Ernie Edwards, President of Embraer Executive Jets, and Brian Beaulieu, an economist with the Institute for Trend Research. Edwards will discuss trends in the worldwide sales and support of Embraer’s fleet of business jets and will share his views of the industry, customer concerns and the future. Beaulieu will share ITR’s economic forecast to help members better plan for the effects business aviation will see from short- and long-term future economic trends and predictions. Members can use this information to help them develop proactive strategies for their businesses and their clients.

Networking
When NARA members are asked why they continue to be involved with NARA, they hands-down say that the networking opportunities and relationships they develop with other members is the best competitive advantage they have. These relationships provide them with information, contacts and answers to the questions they and their clients have. They have also developed friendships with the other members and enjoy meeting with them and discussing aviation and other topics.

This year’s spring meeting has several opportunities for networking and making those important business and personal connections, from the typical meals and breaks to an afternoon choice of playing in the NARA Annual Golf Tournament or enjoying an Amelia River Cruise and lunch at the Florida House Inn.  

Associate Member Forum
New this year is an opportunity for broker and dealer members to connect and learn more from the organization’s associate members. An hour time slot has been set aside and associate members will be given the opportunity to display products and services and educate the rest of the membership about what they do and how they can help clients in the process of buying or selling a pre-owned business aircraft.

Auction for NARA Scholarship Funds
Also new this year is a silent and live auction to be held in conjunction with the NARA Dinner Banquet. Proceeds from the auction will be used to help fund the new NARA Business Aviation Scholarship, which was recently established to benefit university students planning to start a career within the corporate aircraft sales, marketing, finance, legal or insurance community. The scholarship will be offered by NARA for one student in 2014 with the amount dependent on the funds raised through NARA’s various outlets, including the auction and private donations.

“I am personally looking forward to the spring meeting,” says Brad Harris, NARA Chairman. “Getting together and learning more about how the association can help and be an even better value and resource for our 77 member companies is something I enjoy very much. I also enjoy spending time with the great people connected to NARA. I couldn’t ask to work with a better group of people who truly enjoy doing what they do and who represent themselves and the industry with the utmost integrity and professionalism.

For the fifth consecutive year, pre-owned transactions for current generation business jets have shown a year over year increase. However, market inventories, expressed as a percentage of the fleet, are increasing and the average selling price continues a downward trend.

When we factor age-based depreciation over a 30-year lifecycle, we can garner some semblance of normalized value at any given point. However, when we consider economic events such as those over the last four years, values and selling prices can take a drastic downward turn. At the end of 2012, the average selling price for pre-owned, current production aircraft was reflecting a 17% decline in market value. Out of production aircraft slipped further to 33% under normalized values.

There are a number of factors contributing to the state of our market(s). The increase in transactions and current pricing suggests buyers are realizing substantial value in select aircraft. For example, the G200, which has a stand-up cabin, 3000 nm range and Pro Line 4 cockpit, had a record 27 transactions in 2012, an increase of more than 300% from 2011. A 2008 year model, with a list price new of $22M, sold for $10M in the 4th Quarter 2012, with under 800 hours total time. The same $10M could buy a 2001 Challenger 604 or Falcon 2000 with 3500 hours, or a 2004 Challenger 300 with 7500 hours. Buyers seem to be looking more laterally with the perception of ‘how much value can I buy for the same dollar.’ Obviously, the newer aircraft open up greater financing opportunities as well.

Compared to 2008, when pre-owned aircraft were selling for more than they cost new, 2012 continued to adjust prices to a level commensurate with the global economic climate. On average, pre-owned business jets are selling 25% under normalized markets, which seems to be one of the driving factors for the increased transactions. In addition, according to GAMA, new business jet deliveries for the first nine months of 2011 and 2012 were 427 and 428 respectively. When current production pre-owned aircraft are selling for 40% less than they cost new, this can also stimulate the number of pre-owned transactions.

For the start of 2013, pre-owned inventories are on the rise; however activity levels (pre-purchase inspections, LOIs, Offers to Purchase, et al) are showing formidable signs for consistent activity.

For more information and charts showing the five-year sales trends, see the Aircraft Bluebook–Price Digest Marketline newsletter at http://www.aircraftbluebook.com/.

Aircraft Bluebook provides an aircraft valuation guide and aircraft appraisal services for the general and business aircraft marketplace. Aircraft Bluebook-Price Digest includes more than 3,000 specific-year models of general aviation aircraft that are thoroughly researched each quarter. For more information, visit the Aircraft Bluebook website at www.aircraftbluebook.com. 

All market sector percentages of Fleet For Sale were down in January comparisons, except for piston helicopters. Business turboprops moved even lower, well below the 10% of Fleet For Sale mark, which clearly moves it into a seller’s market. Business jets are the only market sector showing greater than a 10% For Sale percentage. See the table below:

Worldwide Trends

Source: JETNET

Looking at Full Retail Sale Transactions, the business jet sector decreased in January 2013 by 1.8%, only the second time since January 2009 that it showed a decline in Full Retail Sale Transactions. The business turboprop sector was the only one to show an increase, at 5.7%, in January 2013 compared to January 2012.

Also worthy of note is in the January 2013 comparison to January 2012, Turbine Helicopter Full Retail Sale Transactions fell from 100 to 67, or 33%. This is the lowest number of transactions since January 2007. In January 2013, Full Retail Sale Transactions for piston helicopters also showed its largest decline since 2007 in the number of transactions, to 51.

You can view the full report from JETNET on their blog at http://jetstreamblog.com/.

Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business, commercial and helicopter aircraft fleet and marketplace, comprised on some 100,000 airframes. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via real-time internet access or regular updates.

For more information about JETNET LLC, go to www.jetnet.com or call 315.797.4420.

Highlights of the report include the following points.

• The report shows good news in that 2012 set a new record for the number of Pre-owned Full Retail Sale Transactions. There were 2,240 transactions in 2012, beating the previous record peak in 2007 of 2,181. This record follows three years of increases from the low (1,539 transactions) that was recorded in 2009.

• In looking at the Pre-owned Business Jet Market by Weight Class, the medium weight class was the only weight class to show a decline, of 17 (or 3%) fewer business jet transactions in a comparison of 2012 to 2011. The other classes all showed increases, led by the heavy class with 85 (or 15%) followed closely by the light class with 76 (or 9%) more pre-owned business jet transactions in 2012 compared to 2011.

• United States Business Jet Domestic Flight Operations were recorded at 256,000 in December 2012, which is 117,000 (or 31.4%) flights below the peak level of 373,000 reported in October 2007. However, there has been a steady improvement from the low-ebb of 225,000 recorded in February 2009. The months of March 2011 and October 2012 represented peaks at 297,000 flights each.

• United States International Flight Operations in December 2012 were down 56,000 from the March peak of 62,000. The lowest points were recorded in February 2009 (40,000 flights) and January 2011 (44,000 flights).

• As far as prices of JET A fuel in the United States, the 4^th Quarter of 2012 reached a new record peak at $6.84 per gallon. 

You can read “Views From The Cockpit” on JETNET’s website at  http://jetstreamblog.com/.

Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business, commercial and helicopter aircraft fleet and marketplace, comprised on some 100,000 airframes. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via real-time internet access or regular updates.

For more information about JETNET LLC, go to www.jetnet.com or call 315.797.4420.

Contributed by Jeannine Falter, Vice President of Business Development for Duncan Aviation and co-chair for the NBAA Leadership Conference to be held in 2014 and 2015.

Three years ago I joined the NBAA Corporate Aviation Management Committee (CAMC). The committee’s mission is to provide guidance to business aviation department leaders that will help them be more successful and effective. Management trends, developing departmental objectives, policies, standards, personnel selection, training, fiscal control and operational evaluation are just a few areas of focus. One of the committee’s most important offerings is the annual NBAA Leadership Conference.

The 2013 NBAA Leadership Conference was recently held in Austin,Texas. Unlike any other aviation conference or meeting, speakers at this two-day conference are not necessarily aviation-related. They are top-notch leadership experts. This year, conference speakers focused on how leaders leave a legacy and inspire the future. Conference participants heard riveting messages and left the conference energized and motivated to become a better leader in all aspects of their lives.

The demographics of business aviation clearly indicate that in the next two decades, our industry will be hit hard by retirements. Many well-known faces will most certainly move on from their day-to-day management roles. As one of these “baby-boomers,” it is time to ask myself what my legacy will be and what my succession plan is. These are questions our industry faces as well: What is the business aviation industry’s succession plan?

We obviously need to do everything we can to attract the best and the brightest to aviation—providing them with critical learning experiences in leadership and technical skills, and a positive work environment so they will stay engaged and grow business aviation into the future. How, exactly, do we do that?

Developing the future leaders of business aviation and re-investing in those working in our industry today are passions of mine. They are why I am active on the CAMC committee, and why Duncan Aviation chose to be a platinum sponsor for the leadership conference this year. We believe it is an excellent way to invest in the future and ensure the ongoing success of business aviation for years to come.

I encourage you to attend the NBAA Leadership Conference next year. And I strongly encourage business aviation companies and individuals to invest in the future and help sponsor the conference. Sponsorship dollars invested in this particular conference determine in large part the speakers we can engage and the thought-provoking experience that attendees have.

The 2014 NBAA Leadership Conference will be held the week of February 17, 2014, in Atlanta. As co-chair of next year’s conference, I will be working with Bob Hobbi, owner of Service Elements inPhoenix, to line up speakers. Please contact me if you have suggestions or comments regarding the conference or if you would like to consider becoming a sponsor. Just give me a call at 402-475-2611.

And think about the legacy you are leaving.

Leadership Legacy: Inspiring the Future was the theme for the 2013 NBAA Leadership Conference held in Austin,Texas, Feb. 11-12. This theme reflects the NBAA Corporate Aviation Management Committee’s (CAMC) desire that attendees leave with a heightened awareness and commitment to make a positive difference in their personal life and in the lives of their family members, team members, and their companies. After speaking with a number of the 300+ attendees, many of them members of the National Aircraft Resale Association (NARA), I believe the conference was a success and that those who attended think that their company will benefit from the two days they spent focused on improving their leadership skills, thinking about their legacy and how they can influence the future, and networking with other business aviation leaders.

Below are just a few of the many takeaways from the great conference speakers.

“Preferred Future Planning is not really about the future. It is about folding the future back on the present so that you can make better decisions today. What can you do today to prepare better and impact the future? …The future is not something that happens. It is something that we do.” – Glen Hiemstra, futurist.

“Your team is a direct reflection on you as a leader. Invest in your best.” – Cheryl Cran, author and leadership change expert.

“Whatever you are doing, give it 100%. Be in the moment. … In order to live fearlessly, change your focus from yourself to others. You can’t be self-conscious when you’re thinking of something bigger than you.” – Craig Zablocki, humorist and author.

“You can’t lead from an office. You have to be out there. Gather opinions, understand the issues, listen and probe.” – David Everitt, recently retired President of John Deere & Company’s Ag & Turf division.

“Leadership is a choice. A conscious choice to work first on yourself and then in turn to positively impact the lives of those around you. … Our willingness to accept the world around us for what it is ignites our readiness to live, work and lead in it.” – Mark Fernandes, Chief Leadership Officer with Luck Companies.

“Do things for the right reason and let life surprise you.” – Bryan Dodge, motivational and leadership expert.

“The legacy you leave is the life you lead.” – James Kouzes, leadership educator, speaker and author.

The 2014 NBAA Leadership Conference will be held the week of February 17, 2014, in Atlanta. As co-chair of next year’s conference, I will be working with Bob Hobbi, owner of Service Elements inPhoenix, to line up speakers. Please contact me if you have suggestions or comments regarding the conference or if you would like to consider becoming a sponsor. Just give me a call at 402-475-2611.