How leasing can provide a cost-effective solution

Niki Rokni and Guy Burden, partners in the London-based AXON Aviation Group, point out that aircraft sales have changed significantly in the last three years. Rokni says: "Whereas pre-2007 we were struggling to locate suitable aircraft for clients and trying to reduce the premiums being asked for aircraft available immediately, in some cases as much as $15 to $25 million, the aircraft salesperson today is involved in a juggling act. This involves finding an aircraft that is best value for money, making sure the client is transparent and high profile enough to be able to secure finance and not only serious about going through with the sale but is also prepared to put up far higher deposits and guarantees than before."

Burden adds: "All this adds to the timescale, amount of work and stress for the salesperson. The successful salesperson has become a lot more creative, seeking intelligent solutions to solve the problem – for example, is leasing appropriate? Axon Aviation has a strong database of clients, some of whom are prepared to lease their aircraft out for one/two/three years and this can provide a very effective solution for both parties."

Rokni adds: "For the aircraft owner who may have less use for the aircraft because of a downturn in business (or lack of desire to sell in a weak market or having been caught in a negative equity situation) leasing is the perfect solution until better times return. For the new potential owner who may be waiting for his own aircraft to be manufactured, is uncertain of further price falls, has no desire to put down a large deposit or make all his financial affairs transparent, such an arrangement can also be attractive."