Duncan Aviation Aircraft Sales Representative Doug Roth has seen a great many changes in his 42 years in the aviation business. Aircraft have grown in size and sophistication, and Doug has seen changes in tastes and preferences, too.
Today, buyers who are in the market for a new aircraft echo the sentiments of their terrestrial home-buyers in that they want a move-in-ready, or take-to-the-skies-ready, aircraft.
Buyers don’t want to immediately put down an aircraft for several weeks for costly upgrades after buying it. They want an aircraft equipped with state-of-the-art avionics, including Wi-Fi.
An aircraft with Wi-Fi lets cabin passengers stay connected in-flight, meaning they can access the internet, send and receive email, and more.
That means owners who are planning to see their aircraft won’t escape the connectivity issue by selling their aircraft.
“If you’re selling your aircraft to a buyer who will put it on a 135 or charter certificate, the buyer definitely wants an internet connection, and that affects the value of the airplane,” says Duncan Aviation’s Aircraft Sales Representative Doug Roth. “The lack of internet drops the sale price by the cost of the installation. Because the aircraft will have to be removed from service for the duration of the installation, factor in the cost of the downtime, as well.”
Roth goes on to say that roughly 75-80% of the buyers of private aircraft want an internet connection, so again, an internet connection adds to the value of the aircraft; conversely, the sale price of an aircraft without a connection will drop by the cost of the equipment and installation, including the downtime.
“Even with the small number of buyers who see zero value for themselves in having a connected aircraft, we point out that installing internet adds at least 50% of the installation cost to the aircraft resale value,” says Roth. “The majority of buyers looking for aircraft today want an internet connection.”
If you are planning to buy or sell an aircraft and have questions about the often complicated process, give the members of our Aircraft Sales & Acquisitions team a call.
