WHAT WE DO
WHAT WE DO
Jet Acquisitions website
Script for video – “What we do page”
Written by: Chip McClure
Opening Title: Jet Acquisitions
The Anatomy of an Aircraft Acquisition
Opening Montage: Shots assembled from footage of aircraft operations.
Narrator: …we’re here today with Chip McClure at Jet Acquisitions
Chip, why don’t you tell me a little bit about what your company does that makes it so different from the other companies who sell airplanes.
To understand what we do here at Jet Acquisitions, you first have to understand what we do not do.
We are not aircraft brokers, our business is not listing aircraft for sale and we do not attempt to “back to back” aircraft to our clients, this allows us to focus 100% of our attention on acquiring aircraft for our clients.
We do not accept compensation from aircraft owners or brokers, our fee is paid by the aircraft purchaser, this insures that there is no perception of divided loyalties. We work exclusively for aircraft buyers and every step in our process, every action we take is for their benefit and protection.
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 prevents what we refer to as “artificial market stimulation”.
Narrator: …artificial market stimulation… what exactly is that?
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.
Amazing, so a buyer might actually drive the price up on the very airplane he is trying to buy without realizing it.
Chip: ...that’s right.
Narrator: Chip, tell us about the first steps you take with a new client.
The first step in our process is to have a consultation with a prospective client and determine if our full representation will benefit them, depending on the circumstances we may recommend one of our a la carte services.
Our goal is that every client of Jet Acquisitions not only be 100% satisfied but actually become lifelong clients and friends, determining the right representation for them from the very beginning is crucial.
We have all of our clients sign an exclusive acquisition agreement and place a retainer with us, the agreement gives us the right to represent our client in the search for an aircraft and helps eliminate confusion and the artificial market stimulation I mentioned earlier.
…so you don’t actually start working until you have determined the client’s individual needs and entered into a formal agreement?
That is correct, once the agreement is in place we define the parameters of the aircraft we are searching for, and go to work. We utilize a database of information that has every turbine aircraft in the world and contact information for its owner, it is not uncommon for us to contact hundreds of owners when searching for an aircraft, we use all of our resources to develop a list of potential aircraft that includes both on and off market options. Our clients are typically amazed at our ability to find aircraft that they would otherwise never have the opportunity to purchase. On average about 5 – 15% of a particular fleet is advertised for sale at any given point in time, that means that as many as 95% of the aircraft our clients should consider purchasing are not listed on websites like Controller.
Narrator: Wow, that sounds like a lot of work.
Chip: It is, and we love it!
Narrator… Ok, so this is getting exciting, what’s next?
The final list of aircraft can be as short as two or as long as ten depending on the type of aircraft, once we have a short list the negotiations begin. It is our goal to negotiate the best possible deal for our clients, in most cases we are able to negotiate a final purchase price lower than what our clients would have been able to accomplish on their own.
The deal doesn’t end with the negotiations; it’s actually just the beginning. The terms of every agreement are unique and the many factors involved and paying close attention to details will ultimately determine how good the overall deal really is.
Narrator: …so it’s not just about price?
No, not at all, it’s about finding the best aircraft, for the best possible price, while insuring that all required maintenance and inspections are up to date and current. It’s not that aircraft are typically a good investment, but we can help our clients avoid making bad investments.
So you’ve searched the world using your secret computer system guys like me can’t access… and found a great plane, you’ve made the best overall deal possible and everyone agrees to move forward, then what happens?
Chip: We celebrate. (smile)
Actually there’s still a lot of work to be done, we manage all contracts, agreements and required addendum. We arrange all of the initial pre-purchase inspections, including the visual inspection of the aircraft and records and the borescope inspection of the aircraft's engines. These inspections and the vetting process of the aircraft is critical; our duty is to protect our client’s financial interest by making sure all due diligence is completed properly and we have determined that the aircraft is as represented by the seller.
Once the initial inspections are completed and we have relocated the aircraft to an approved inspection facility and the formal pre-purchase inspection is under way we turn our attention to the closing, it is one of the most important steps in our process, we make sure that the aircraft closes on time and that the closing is seamless and stress free. We have great working relationships with all of the major aircraft title companies, we close a lot of deals with these folks and they do their best to make sure our clients are happy.
Narrator: …once the aircraft closes, you’re done right?
No, not at all. The next step in our process is the delivery, that is when we actually celebrate! It is exciting to take delivery of a new aircraft, that first flight is often the most memorable. We manage all of the details to insure that it is a great experience.
And once the aircraft is delivered, we are still not done. We are here to answer any questions and advise our clients regarding maintenance and daily operations.
Narrator: Chip, thank you so much, any final words for our audience?
Thank you for considering Jet Acquisitions. We look forward to working with you and remember… let us put the fun back into buying an airplane!
Closing Montage : Video of airport at sunset, with T-tail of Learjet and aircraft taking off in the background.