A sneak-peek inside the world of aircraft dealers and brokers

Prashant-prabhakar

23 Mar 2022

If you're an av-geek like me, interested in various aircraft types and their price tags, chances are, you've rummaged through countless websites on the internet, scouting for aircraft for sale.

King Air 350/350 ER | Representative | Blackhawk Aerospace

And not surprisingly, you might have come across several ads posted by aircraft owners and "brokers", sometimes even aircraft "dealers".

It might be tempting to think the job of an aircraft "dealer" and "broker" is the same, the reality, however, is far from it.

So, what makes an aircraft dealer different from an aircraft broker?

Who is an aircraft dealer?

To put it simply, an aircraft dealer's job is to buy an aircraft at cheaper rates and sell them at a higher price, all the while making sure they do whatever it takes to increase the aircraft's value in the interim. In other words, they are typically businesses that buy airplanes in trade and stack them in inventory for resale.

Arrow Aircraft Appointed as Authorized Dealer for HondaJet | Representative | Arrow Aircraft

Temporary "Dealer Registration" certificates are required to be obtained by the FAA before getting into the business- defined by the time between buying an aircraft and selling it.

How do they stock their inventory?

In contrast to car dealers who acquire their stock from auctions, aircraft dealers procure their inventory in two ways:

From open market(s)From private sales

Dealers typically scout websites like AvBuyer, RightAero and Controller.com to look for aircraft models that are not posted by brokers. Once they zero in on a specific model of their liking, enquiries regarding the aircraft type and pricing are made and purchased to sell on a later date. This is how procurements are made from the open market.

Representative | FLYING Magazine

Purchases are also made via websites that allow dealers to place wanted ads or use their company websites to attract aircraft owners looking to dispose of their aircraft. This often leads to a quick sale and often at prices lower than the market value of the aircraft.

Owing to the unpredictable nature of the aircraft market-with the prices often fluctuating, this is a business that has its fair share of risks as well. A good dealer is, therefore, who has learnt to crack the code of the business and knows when exactly to buy and sell.

The primary advantage of working with aircraft dealers is that they might have certain OEM factory affiliations which will allow you to purchase a factory-new airplane through their business if they are an authorized reseller.

Types of aircraft dealers

1. Helicopter dealers

The Airbus ACH160 VIP Helicopter | Representative | Robb Report

As the name suggests, these dealers specialize in the procurement and sale of helicopters- ranging from small GA-style helicopters to corporate/VIP choppers.

2. General Aviation (GA) dealers

Representative | Wallpaper Access

Touted to be the most active in terms of turnover, these dealers specialize in the sale of GA aircraft, which apparently has a huge market and an even bigger supply of aircraft.

GA aircraft typically spend less than six months on the market meaning there is scope for steady business for smaller-margin dealers.

3. Warbird dealers

Warbird parts for sale | Warbirds News

A warbird is any vintage military aircraft now operated by civilian organizations and individuals, or in some instances, by historic arms of military forces. They are in great demand from both aviation museums, display teams and veteran military aviators who might now want to fly for leisure.

Again, this niche is economically risky although the sale of vintage warbirds does result in a significant return on investment(s).

Here are some of the big players for revenue, average stock value over the last year and company size:

JetcraftAvproMente GroupAircraft Sales GroupGlobal Jet Monaco

Who is an aircraft broker?

Although the terms, "broker" and "dealer" are used interchangeably, they are fundamentally different in the way they operate.

Aviation brokers are professionals with extensive knowledge in aviation sales and acquisitions and assist buyers or sellers with aircraft transactions. Essentially, they could be thought of as a real estate agent for airplanes - meaning they guide you throughout the sale process.

Representative | Modern Aviation

A broker will assist you with listing your airplane, to performing the marketing tasks and the legal aspects of the entire transaction.

How do they earn in the process?

The broker is paid a percentage of the sales price, typically at closing. This could range anywhere from 1-3% for a particular aircraft, going all the way up to 10%. This is in stark contrast to "dealers" who only cut when they sell the aircraft at a higher price than what it was bought for.

Although an aviation broker is not necessarily required for aircraft transactions, they tend to have a wide network of connections and an in-depth understanding of the market, which might work best in your interests.

Here's a shortlist of some aircraft brokers in India:

Flying Birds Aviation (Mumbai)Jet Serve Aviation Private Limited (Rajasthan)- Single/Multi engine propellor, Piston HelicopterSchneider Air services India Private Limited (New Delhi)Air Works India (Delhi)

SOURCE(s)

COVER: Skies Magazine

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French aerospace major Thales betting big on India - key take-away(s)

Prashant-prabhakar

22 Mar 2022

The French Aerospace entity, Thales, is reportedly chasing major plans of expanding operations in India.

The company has already started chalking out plans to set up a Maintenance, Repair, Overhaul (MRO) organization in India in a bid to support Indian carriers- many of which rely on the company for avionics troubleshooting and support.

Representative | Defence XP

We are looking to set up an MRO, so that they don’t have to travel to West Asia or Singapore. Final decision is yet to be taken, but this is a clear intent showing the growth potential in India that we are looking to set up a sub-centre here.said Yannick Assouad, executive vice-president, avionics at Thales, who was on her maiden visit to the group’s India office at Bengaluru since taking charge

Yannick Assouad | L'Usine Nouvelle

Thales would be the second French Aerospace major to have expressed an interest in investing and scaling a major aviation infrastructure in the country.

Earlier, Safran S.A., another French aircraft engine manufacturer, had zeroed in on three places- Jewar, Nagpur, and Hyderabad, for the establishment of a new aircraft engine MRO unit, to cater to its customers.

It is to be noted though, that while Thales is planning an overhauled unit for major avionic components, Safran is targeting an engine MRO unit.

The A320 family of aircraft- one of the most popular among Indian operators, features numerous components, the technical support of which is provided by Thales. Apparently, the company predicts an exponential increase in the aforementioned aircraft type which could translate to an increase in support services of avionics in the fleet.

Given the growth of the economy in this country, more and more people will be travelling and consequently there will be an increase in fleetsaid Assouad

Given its expertise in aircraft avionics, Thales is also reportedly trying to bag a contract from Tata Group for the refurbishment of In-flight Entertainment (IFE) in Air India’s fleet.

In-Flight Entertainment (IFE) | Representative | TripSavvy

The IFE that Air India is currently running is of Panasonic, which is really old. So a new IFE contract is probably a must. Not only that, we see opportunity in IndiGo’s Airbus A321 XLRs which will fly long-haul, for which it is sure it will be fitted IFE.said Assouad

Furthermore, she also added that Thales will pitch its counter-drone technologies to government organisations in India, pointing to the growing use of drones in the country.

The use of drones will only increase if the operation of drones is safe in the skies. Thales has a solution in electromagnetic jammer which can be used for counter-drone techshe said

SOURCE(s)

COVER: Rediffmail

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TATAs in talks with Airbus for its flagship A350 XWB

Prashant-prabhakar

21 Mar 2022

The European plane manufacturer, Airbus, is reportedly in talks with the TATA group and other Indian carriers regarding the procurement of its wide-bodied A350XWB planes - a report which was confirmed by Remi Maillard - president and MD of Airbus India & South Asia, today.

Aviation Voice

We are obviously in talks with all airlines. The new owner of Air India — Tatas — are existing customers of Airbus. Tatas have Vistara and AirAsia India with them, as we know. We have developed long standing, trustful and respected relationship with the Tata Group.Remi Maillard stated at a press conference

Remi Maillard | Social News XYZ

Tatas are Airbus's partner in the defence business too-Maillard said further.

Representative | Zee News

We are industrializing and manufacturing together our C-295 military transport aircraft for the Indian Air Force. Of course, we will be privileged to continue supporting the ambition of the Tata Group in the aviation sector across all the complete spectrumMaillard

With the acquisition of Air India, the TATAs now have four entities under a single umbrella- including Air India Express, Vistara and AirAsia India.

According to Maillard, the fleet of wide-body aircraft in India has remained constant for the past twenty years in comparison to the single-body fleet, which magnified by as much as six times in the same period. Currently in India, only Vistara and Air India have wide-bodied aircraft in their fleet.

The Airbus A350 is a long-range, wide-body airliner, with larger fuel tanks that allow them to travel long distances as compared to narrow-bodied aircraft like A320NEO. Powered by two Trent XWB turbofan engines that result from a very close collaboration between Airbus and the powerplant’s manufacturer, Rolls-Royce, the aircraft can travel above 8,000 nautical miles, with a flying time of approximately 18 hours in one flight.

Trent XWB Turbofan | Representative | Aerospace Technology

According to Remi Maillard, Airbus is aggressively confident when it comes to the long-haul international market out of India.

We believe the kind of revolution we have witnessed in domestic traffic in the last 20 years will now happen in the long haul market. The new generation aircraft, the A350, will be the trigger for this revolution in the international long haul market.Maillard

The A350XWB aircraft features 300 to 410 seats in a three-class configuration. With full LED mood lighting and larger overhead bins, it has the quietest cabin and 25 per cent less fuel consumption among all the wide-bodied aircraft.

SOURCE(s)

COVER: Magzter

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Boeing Eagle-II F-15EX to soon join the Indian Air Force?

Prashant-prabhakar

20 Mar 2022

If reports are to be believed, Boeing has obtained a mandatory licence from the US government for the discussion of a possible F-15 sale with India.

This has been confirmed by Mr Pratyush Kumar, who has been associated with the induction of multiple Boeing platforms into India’s military, including the P-8I Poseidon maritime aircraft, the C-17 Globemaster III heavy-lift transporter, the Apache AH-64E attack helicopter and the Chinook CH-47F heavy-lift chopper.

Boeing F-15EX | Boeing

This also comes as welcome news for the Indian Air Force, which is currently in the process of acquiring 114 multi-role combat aircraft (MRCA) from the global defence market.

Pratyush Kumar | Business Today

Reportedly, the Eagle-II F15EX will be going head-on against seven other combat fighters in the battle for the Indian MRCA tender.

Back in 2007, the Indian Air Force had the option of choosing between four twin-engine fighter crafts, namely-  Boeing’s F/A-18E/F Super Hornet; Dassault’s Rafale, Eurofighter GmbH’s Typhoon, and Russia’s RAC MiG-35. Additionally, two single-engine aircraft options were also put forward- Lockheed Martin’s F-16 Super Viper; and Saab’s Gripen E/F.

Fast forward 2019, the tender saw the arrival of two more big, twin-engine fighters, vying for the contract-  the F-15EX Eagle-II and Russia’s Sukhoi-35.

General overview of the F-15 EX Eagle II

Touted to be the world’s fastest (Mach 2.5, or 3,100 kilometres per hour) and most heavily-armed (payload of 13.6 tonnes, or 30,000 pounds) fighter, the Eagle II has the longest strike range (1,200 nautical miles or 2,222 kilometres) and its combat resume boasts of 104 kills in air-to-air combat without suffering a single loss.

1. Enhanced survivability

With advanced radars and sensors, the fighter craft brings in fully integrated electronic warfare to combat new and emerging threats.

2. Unparalleled weapons carriage

Features the ability to carry hypersonic weapons, which, otherwise cannot be carried in internal bays.

3. Enhanced mission management

Features a 21st-century cockpit with real-time access to battleground information, thereby enhancing pilot's understanding of the environment.

4. Rapid capability insertion

Features a flexible and Open Missions Systems Architecture wherein rapid digital technology can be integrated for future growth and provide maximum interoperability.

https://www.youtube.com/watch?v=yTt_TJo9EF4

The F-15EX induction ceremony | Boeing | Youtube

The club of existing F-15EX operators includes the US, Israel, Japan, Singapore, South Korea and, most recently, Qatar.

Apparently. the design of the fighter has been customized to counter possible threats from China which include- hypersonic, re-targetable, long-range missiles and advanced “early warning and control” (AW&C) aircraft that can observe low-flying fighters at longer ranges.

 Kumar describes Eagle-II as “the ideal high-end fighter for the high-end fight".

These are the general specifications of the fighter craft model although India is yet to make a call on the final specifications it would like to be featured on the fighter craft.

India needs to relook at their force structure in the light of Rafale and Tejas orders. If the gap is at the high performance end, the F-15EX could be a fit. But these are early days.A Boeing official said

SOURCE(s)

COVER: Boeing

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Air India's 1700 technicians on strike, demanding a pay raise

Radhika Bansal

19 Mar 2022

About 1,700 aircraft maintenance technicians working with a company that handles maintenance and repair jobs for private carrier Air India have gone on an indefinite 'tools down agitation' strike, which began at 9 AM on Tuesday, March 15.

Air India flights from Delhi to Kathmandu, Siliguri, Jabalpur, Bhubaneshwar, Kolkata and Chennai have been delayed, while a flight to Dehradun and one from Nagpur have been cancelled, said sources. A statement from Air India is awaited.

Currently, engineers working for the said company have been handling the job. But the technicians employed with government-owned Air India Engineering Services Ltd (AIESL) make up for about 60% of its workforce and so flights would be hit.

Air India's 1700 technicians on strike, demanding a pay raise

The ongoing 'tools down agitation' is privatized airline Air India's first experience with labour-related strife. The said technicians, on a fixed-term contract with AIESL, had earlier threatened a 'tools down agitation’ across the country in January and then again in February.

Both the time, negotiations were on with the management in presence of the labour commissioner and the agitation was postponed.

Among the jobs, these technicians handle for Air India are aircraft fueling, readying the aircraft for departure, marshalling, maintenance work etc. Their demands include salary revision, employment contract renewal, the inclusion of dearness allowance etc.

Their demands include salary revision, employment contract renewal, the inclusion of dearness allowance etc.

The striking technicians are employed on a 'fixed-term contract' with Air India Engineering Services Ltd (AIESL), a government-owned company, which was formerly the engineering subsidiary of Air India. AIESL was not part of Air India's disinvestment deal by the Centre last year.

In the evening, AIESL retaliated by sending termination notices to a few technicians who were on strike. "Your services are no longer required by the company and your employment contract stands terminated with immediate effect from March 15, 2022," the letter said.

“We want salary based on 'equal work, equal pay. Our salaries should be on par with that of service engineers of Air India because our job profile, qualifications etc are the same,” said a technician, requesting anonymity.

AIESL was not part of Air India's disinvestment deal by the Centre last year.

“But our salary is INR 25,000. But since January, we have been receiving a salary of INR 21,444. Among the deductions made were those for medical facility and INR 1100 that AIESL has been deducting since May 2020 as part of economic measures,” he added.

In January, the technicians had written to the AIESL management with the list of demands, threatening the tools down agitation from January 17.

As conciliation proceedings under the assistant labour commissioner commenced between the technicians and the AIESL management, the agitation was postponed. A similar round of talks happened after they threatened to go on strike on February 7, following which the agitation was postponed.

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From the vault | 60+ years of the Jet Age in India

Prashant-prabhakar

19 Mar 2022

The Jet Age is defined as a period in history characterized by the advent of aircraft powered by turbine engines and the associated social changes it brought about.

Representative | Stern

No other invention in history revolutionized travel as much as the jet engine did, in comparison to the iconic "wheel".

A brief history

The term "Jet Age" was coined for the first time in the late 1940s. Jet engines were more reliable, faster and provided a greater range and fuel efficiency than their piston counterparts and this practically made transcontinental and intercontinental travel possible.

The British de Havilland Comet was the first jet airliner to fly (1949), the first in service (1952), and the first to offer a regular transatlantic service (1958). The D.H.106 prototype-with its four Frank Halford-designed de Havilland Ghost engines buried in the wings made a beautiful maiden flight.

D.H.106 prototype | Pinterest

The second prototype of the Comet flew in late 1950, and the first production version, registered G-ALYP, in January 1951. BOAC operated the world’s first jet-powered passenger flight from London to Johannesburg, South Africa on May 2, 1952, and it was an instant success.

Although making a massive impact on its initial entry into service, the Comet soon lost its lustre after a series of crashes that marred its reputation.

The first fatal Comet accident inline service was to BOAC’s Flight 783, soon after take-off from Dum Dum Airport, Calcutta (now Kolkata), India on May 2, 1953. The aircraft, registered G-ALYV, appeared to break apart in mid-air, and the subsequent inquiry found the probable cause to be “Structural failure of the airframe during flight through a thunder squall.”

BOAC’s Flight 783 that crashed near Calcutta after a structural failure | Pinterest

The dawn of Jet Age in India

The delivery of a Boeing B707-400 from the Boeing factory in Seattle to Santa Cruz in Mumbai, via London, heralded the dawn of the Jet Age in India. Before Boeing became a household name, the UK, France, and Russia had developed their jet-powered civilian planes, although none had a significant impact on the Jet Age, the way 707 did.

Air India Boeing B707-400 | Representative | Wikimedia Commons

The pairing of Air India and Boeing 707 was touted to be one of the most successful during its time as quite apparently, they complimented each other well when it came to hospitality and technology.

The iconic Boeing B707, registered as VT-DJJ, took off from Seattle and made the long flight to London, after a brief halt at New York. The flight crew consisted of Boeing’s chief test pilot for the Boeing 707-Tex Johnston, along with Air India chief pilot Adi Gazdar, Boeing flight instructor Bob Mattison and flight engineer instructor Dick Smith.

The first Air India crew to fly India’s first commercial jet plane | Bandra Buzz

At London, the Chairman of Air India and India’s first pilot, JRD Tata, as well as other dignitaries and guests, joined in. JRD Tata commandeered the B707 as the aircraft made its way to Bombay.

The B707 touched down at Santa Cruz airport on 21st February, 1960, thereby signifying the arrival of the jet age in the country. The aircraft had reportedly traversed five thousand miles, non-stop from London to Bombay in about 8 hours.

The Boeing B707 was given a grand welcome with Sri Prakasa- the then Governor of Bombay, presiding over the ceremony. As per Indian norms and tradition, a coconut was broken in front of the nose-gear of the airplane, to attract good luck. JRD Tata and the rest of the crew were welcomed with garlands and flowers.

Bandra Buzz

Upon touchdown in India, the aircraft was christened "Annapurna", by Air India. As fate would have it, the aircraft had to be re-christened to "Gauri Shankar' following a series of repairs after an unfortunate fire accident.

Unfortunately, luck never seemed to favour Air India as India lost its first jet airplane on  22nd June 1982, when "Gauri Shankar" was hit by a tremendous rain-squall and crash-landed at Santa Cruz airport, claiming 17 souls on board.

The growing momentum of the jet age meant more skilled pilots were required to fly these magnificent aircraft. Thereby Air India, in response, requested the Indian Air Force to delegate some of its most skilled and experienced pilots of large military aircraft, to command the Boeing 707.

Air India took delivery of its first 747 on March 22, 1971. The aircraft entered into service on May 21 of that year, with service four times weekly from India to the United Kingdom. With windows described as Rajasthani style arches, the design was intended to give the effect of a row of Jahorka type balconies reminiscent of the Hawai Mahal at Jaipur

Representative | Times of India

At the height of its entry, the Boeing 707 revolutionized air travel like no other aircraft at the time. The two combi aircraft, namely - “Kamet” & “Trishul”, are still operated by the Indian Air Force today.

On 25th March 1960, a third Boeing 707 was delivered to Air India. The aircraft bore the registration VT-DJK and was escorted to Santa Cruz airport by Folland Gnat fighters of the Indian Air Force.

Third Boeing 707 prototype being escorted by Folland Gnat fighters of the Indian Air Force | Bandra Buzz

Did you know? On 18 February 1911, the first commercial civil aviation flight took place in India between Allahabad and Naini. About 6500 mails were carried on a Humber biplane and is considered to be the world’s first airmail service and the beginning of civil aviation in India.

Humber biplane | Representative | Wikimedia Commons

SOURCE(S)

COVER: New Atlas

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