herever we look today, we see new
optimism cropping up, and levels of
business confidence not seen for nearly
a decade. The number of aircraft
transactions is increasing and at Lufthansa
Bombardier Aviation Services we’ve seen a steady
increase in requests for Pre-Purchase Inspection (PPI)
quotations.
Used aircraft inventory levels are trending down,
and time once again seems to be of the essence. It’s
beginning to feel like it did in the pre-2008 era.
In such a shifting market the best airplanes go first,
and fast. The big question for the buyer is how to
know which is the right aircraft to purchase? Mission
needs, budget constraints and operating costs will
quickly narrow the potential candidates down to a
small cluster of suitable choices.
And that’s where the hard work begins... Which
aircraft promises to keep its value best?Pay Now or Later...
Aircraft are complex, sensitive machines. Parameters
such as age, equipment, configuration, type of
operation, operational environment, importing
country regulations, number of owners, damage
history, enrolled support programs, remaining
reserves, service and maintenance history,
modification status and documentation quality all
have an impact on an aircraft’s quality and value
within its market.
Navigating through these can be very challenging- especially when conflicting interests between buyer
and seller come into play. One of the keys to a
successful aircraft transaction completion is the
selection of the PPI facility. You will need a clearly-
defined inspection scope leaving nothing to
interpretation.
You’ll also need detailed and continuous oversight
of the PPI; continuous checks and balances
throughout the PPI of what’s actually happening with
the aircraft (as opposed to what shouldbe), per the
Aircraft Purchase Agreement; initiation of corrective
actions without delay; and effective communication
between buyer, seller and PPI Facility.
Every overlooked aspect or hidden discrepancy
that doesn’t surface during the PPI is likely to emerge
later, potentially causing problems if the discrepancy
causes the original MX budget to be exceeded, or
unscheduled or extended downtime is required. In
the worst case, the new owner could find their aircraft
grounded.
The Cost of Experience
The other essential key to a successful selection and
evaluation of the aircraft is to involve the best
expertise you can get, starting at the very early stages
of the transaction.
Don’t be blinded by a good ramp appearance and
flashy interior. In the grand scheme of selecting and
purchasing an aircraft the exterior and interior are
secondary aspects which can easily be changed to
meet the buyer’s taste and expectation. The baseline
green aircraft is what provides the safe, reliable and
effective transportation when it’s managed and
maintained properly – and it’s what can also blow
your operating budget if poorly managed and
operated.Knowledgeable and seasoned technical
consultants with excellent communication skills cost
money. The good news is that theirs is only a
temporary service, which you pay for during the
critical phases of your aircraft acquisition.
But who should you select? A local
representative/consultant to where the aircraft is
based may be the better choice for reasons of
language, time-zone, network and knowledge of local
facilities. And in the case of an intercontinental
transaction, you’ll also find reduced travel expenses
as opposed to sending a consultant from your home
country.
Essentially, engaging the best expertise you can
get will help ensure a successful aircraft selection,
evaluation and entry into service.
Items missed during the evaluation and
purchasing phase or a PPI may seem small at the
time, but have potential to cause a very unpleasant,
very costly post-closing situation.
Make sure you’re properly equipped as you enter
today’s active marketplace. W
4 AVBUYERMAGAZINE– July 2018 http://www.AVBUYER.com Aircraft Index see Page 129Guest Editor’s
VIEWPOINT
Robert Drover
Which One do I Buy?
“Every overlooked aspect or hidden
discrepancy that doesn’t surface during
the PPI is likely to emerge later...”
Robert Drover is Director Sales & Marketing at Lufthansa Bombardier
Aviation Services (LBAS) in Berlin, with 25+ years of experience in
Business Aviation. LBAS unifies the know-how of three industry leaders,
Lufthansa Technik, Bombardier Aerospace and ExecuJet, and today offers
more than 210 MRO specialists, all experts in their field. Visit http://www.lbas.deEditor Welcome July18.qxp_JMesingerNov06 20/06/2018 12:36 Page 1