Prior to forming Jet Acquisitions I worked in the aircraft sales and brokerage world for many years, selling inventory for a stocking dealer and as a aircraft broker. The reality is that being a broker basically means that you spend your days contacting other brokers in an attempt to find an airplane you might have a buyer for or a buyer whom you might find an airplane for, but never really being committed to the buyer or the seller.
It was during those years as a broker that I noticed a phenomenon I now refer to as "Artificial Market Stimulation" this is a term borrowed from the financial market, it is in fact interesting how the aircraft market is so similar to the financial market and how aircraft values can rise and fall based on rumors and speculation. However, what we are talking about here is less rumor than self imposed harm.
Artificial market stimulation is when a prospective aircraft purchaser contacts one or more aircraft brokers inquiring about an aircraft they have listed and then that broker contacts other brokers “shopping” for an aircraft to present to the prospective purchaser. The result is that you often have several brokers calling other brokers who in turn call other brokers and owners, all of the sudden the owner of an aircraft is getting numerous phone calls about his airplane and assumes the market is hot, when in fact there is only one potential buyer being represented by multiple brokers on a non-exclusive basis.
The sad truth is a buyer might actually drive the price up on the very airplane he is trying to buy without realizing it.
That is why at Jet Acquisitions we represent aircraft buyers on an exclusive basis. If our client wants to contact aircraft brokers while we are representing them, they are free to do so because they are a represented buyer, we do encourage that they make sure to explain to anyone they contact that they are represented and we will only consider aircraft transactions where we are dealing directly with the seller or his representative / listing broker. This prevents the risk of exciting a particular market. It also eliminates the chance of an aircraft being at the end of a daisy chain of brokers with each broker in the line expecting to be paid a commission.
In addition to not contacting sellers unless it is necessary to locate an aircraft for an acquisition client, we do not “shop” for aircraft to sell to prospective buyers, our reputation in the industry is based on aircraft owners knowing that when we contact them we have a legitimate purchaser who has hired us to acquire an aircraft on their behalf. This benefits our clients because it discourages any potential artificial market stimulation.
To discuss this or any other aspect of the aircraft market give me a call or email firstname.lastname@example.org