Mark Rogers, President, Lone Mountain Aircraft

As we wrap up a record Q2 for sales at LMA, we are seeing continued optimism in the light aircraft markets. JetNet IQ just released a survey in late June showing most business aircraft operators believe the current market cycle is past the low point. Our own sales experience over the last quarter jives with this sentiment, as our units sold were a record 46 sales for the quarter. Inventories of some of the most popular models of aircraft are now at a third of the inventory of this time last year. The shrinking inventory has us returning to international markets again to find acquisition opportunities.

Contributing to the increased sales activity is the strong appetite of aircraft finance lenders for new loans. Lone Mountain Aircraft Finance has new finance offerings and competitive rates, and is proving to be a valuable resource for our clients.

Beginning in May of this year, Lone Mountain began a new model for providing detailed market data to aircraft owners. The model has been well received, and we are expanding this offering to all owners of turboprops and light jets. If you are an aircraft owner and interested in receiving our market reports, you can sign up on our website or via email at info@lonemtn.com.

Here is a quick look at what else is new:

Current Market Acquisitions: Lone Mountain is currently acquiring a King Air 350i, Phenom 100, Phenom 300, and Piper Meridian or M500 for qualified clients. Please let us know if you are considering selling or know of an available aircraft.

Vision Jet Positions: We have sold four more Vision Jet positions in Q2 of 2018 and are now selling positions that deliver in 2019. We have positions delivering as early as Q3 of 2019 with three delivery positions remaining for next year. Cirrus just delivered Vision Jet serial #54, and pilots are reporting a great customer experience and support from Cirrus. We expect Cirrus to build a total of 50 Vision Jets in 2018 and approximately 65 in 2019. On the training front, the first type-rating class offered at the new Vision Training Center in Knoxville will be held in July 2018 as training moves from In-Aircraft to simulator-based training.

Contact us today to learn more!   

The first official month of summer was sizzling at Lone Mountain Aircraft! In June, we completed 15 sales and 16 total transactions! We found buyers for 11 Cirrus, 1 Beechcraft, 2 Cessna, 1 Diamond and 1 Piper aircraft. The aircraft that were sold are below:

Other Lone Mountain transactions in June:

  • 2004 Mooney M20R N10469 s/n 29-0336 (trade-in, sold the same day)

We are looking forward to another great month! Click to see our turbine and piston listings at LoneMountainAircraft.com.

Father and son duo Joe and Luke Slawek make their living adding flavor to almost every food imaginable. Now, they are spicing up the way they do business – using a new Vision Jet.

Founded by Joe in 1987 when Luke was just six years old, FONA International, Inc. uses some of the best flavor scientists in the world to create and produce flavors. It didn’t take long for the business to become recognized as a world-flavor and market solutions leader. Soon, Joe realized they would need a better solution to keep up with client demand. He decided to take FONA to the skies, although aviation was no new venture for the Slawek family.

“I used to wake up dreaming about flying,” said Luke. “At that point in time that both of my parents were glider pilots before I was born. I grew up in the family business but was inclined toward aviation, and started flying gliders when I was 14.”

While Luke was in flight school at Embry-Riddle, Joe’s passion for flying renewed when he realized the ease of a quick father-son hunting trip with a personal aircraft on hand.

“I think that is when we really understood what a time machine it is to have aircraft available,” said Joe.

Joe began considering how to utilize aviation to improve the FONA business model. He realized that unhindered flight could be the most important asset.

Joe and Luke began flying aircraft loaded with samples of FONA’s products around the country to potential clients in a Pilatus PC-12. Today, they estimate they have flown over 30 different airplanes together, falling in love with Cirrus and Beechcraft products.

Lone Mountain has assisted in a few transactions for the Slaweks. It was instrumental in the international selling of a 2012 King Air B350i to a buyer in China before acquiring a new 2017 King Air 350i for the Slaweks.

“Lone Mountain worked hard on our behalf,” said Joe. “Transactions are sometimes extraordinarily complex, especially internationally to China and other places, so we are very grateful and indebted to Mark Rogers and Lone Mountain for that service.”

Aviation turned out to be a beneficial move for the FONA business model. Last year, Joe again enlisted the Lone Mountain team to help negotiate the purchase of a brand-new Cirrus Vision Jet.

“There’s only two groups of people we really care about: one is customers, and the other is employees,” said Joe. “What the King Air and Vision Jet allow us to do for our employees is convert a two-day trip into a one-day trip.”

With an aircraft on hand, FONA is able to get products into the hands of customers on a very tight turnaround, and then get its employees back much faster. According to Joe, the shorter business trips allow FONA employees to have a steadier home life and pick up another day of productivity back in the office the following day.

Thanks to the purchase of the Vision Jet, Luke has developed a great relationship with the Cirrus team through the delivery and training phases. Joe is currently working on his type-rating for the Vision Jet.

“I have about 20 hours in it, and it is an exciting time,” said Joe.

Not only do the Slawek men use their aircraft to take care of business, but they also make time to mix in pleasure. The aircraft have transported three generations of Slaweks (and their canine companions) to fun-filled destinations like the Grand Cayman Islands.

“I think that families stay together because they have fun together,” said Joe. “It has really become a tool to have fun as a family.”

For more information on FONA International, go to FONA.com

Here are the newest aircraft listings at Lone Mountain as of June 8, 2018:

 

Features include: Fresh Propeller Overhaul, Factory Air Conditioned, Dual Garmin GNS-430 WAAS (recently upgraded), and Lamb Skin Covered Pilot/Co-Pilot Seats

This single owner, always hangared, aircraft just had its fresh Cirrus service center annual inspection in May 2018. This fully loaded generation 3 GTS turbo with air conditioning represents one of the best values available today in the single engine piston market.

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Paul Sallach at 702-285-0604.

 


2006 Cirrus SR22 GTS

Featuring: Factory Air Conditioning, Dual WAAS 430’s, Avidyne DFC90 Digital Autopilot, Semi Portable Oxygen

This always-hangared, super clean aircraft has no damage history and just 780 flight hours since new.

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Daniel Christman at 404-308-8638.

 


2006 Cirrus SR22 GTS

Features include: Custom SR22 GTS Equipped with Factory Air Conditioning, Dual WAAS 430’s, Avidyne DFC90 Digital Autopilot

This aircraft has no damage history, was always hangared and is service center maintained.

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Daniel Christman at 404-308-8638.

 


2017 Cirrus SR22T G6 GTS

Featuring: Perspective+ Avionics Cockpit, FIKI, Air Conditioning, tubeless tires, Beringer brakes

With its carbon sterling/blue exterior, this SR22T boasts worry free ownership as it is covered under the Spinner to Tail Warranty through February 2022! It includes GTS Avionics, including: All Digital 4-in 1-Standby Instrument, Enhanced Stability Protection(ESP), Synthetic Vision Technology(SVT) and Enhanced Vision System (EVS).

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Daniel Christman at 404-308-8638.

 


2014 Cirrus SR22 G5 GTS

Features include: FIKI, 60/40 Flex Seating, Composite Propeller, ESP, EVS and full Garmin Perspective avionics suite with synthetic vision.

This aircraft is a loaded 2014 Generation 5 SR22 GTS with low time engine (just 180 hours since engine overhaul). With Platinum appearance package, the refined look is sure to make a wonderful addition to any hangar!

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Paul Sallach at 702-285-0604.

 


2013 Cirrus SR22T G5 GTS

Featuring: Turbo & Air Conditioning, Certified for Flight Into Known Icing and Enhanced Vision System Camera

This beautiful 2013 Generation 5 SR22T is loaded will all GTS options, including Enhanced Stability Protection(ESP), Synthetic Vision Technology(SVT), FIKI, Air Conditioning, and more! It is covered under the Cirrus Spinner to Tail Warranty through December 30th, 2018.

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Daniel Christman at 404-308-8638.

 

May was a busy month at Lone Mountain Aircraft! We tallied 14 sales and 15 total transactions We found buyers for 9 Cirrus, 2 Cessna and 1 Piper aircraft. The aircraft that were sold are below:

Other Lone Mountain transactions in May:

  • 2019 Cirrus Vision Jet SF50 Position 192 (sold)
  • 2000 Mooney M20R s/n 29-0218 N322RW (sold before it hit the market)
  • 2009 Piper PA46-500TP s/n 4697396 N3090K (represented the buyer in the sale)

We are looking forward to another great month! Click to see our turbine and piston listings at LoneMountainAircraft.com.

Here are the newest aircraft listings at Lone Mountain as of June 5, 2018:

 

Features include: Naturally Aspirated, Cirrus Perspective by Garmin, Factory Air Conditioning and TKS De-ice.

Don’t miss this excellent opportunity for a desirable configuration!

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Mark Rogers at 612-321-6489.

 


2008 Diamond DA40 XLS

A Diamond in the rough! Hard-to-find features of this aircraft include: WAAS, Synthetic Vision and Garmin GFC700 autopilot

This is a wonderful opportunity to get a GREAT airplane into your hangar quickly.

This aircraft was always hangared, and has just 1350 flight hours since new.

To inquire about this aircraft, click here or call Paul Sallach at 702-285-0604.

 


2007 Cessna Turbo T206H Stationair TC

Features include: ADS-B compliance, digital fuel gauges, Stormscope and XM weather & audio.

This fully-loaded aircraft boasts just 415 hours on a factory remanufactured engine! The Turbo 206 is also equipped with GFC700 autopilot.

To inquire about this aircraft, click here or call Paul Sallach at 702-285-0604.

 


2006 Cirrus SR22  GTS-SE Turbo

Get the speed you’ve been looking for in a single engine piston!

Featuring: Tornado Alley turbo normalizing system

This aircraft is a truly unique find. Cirrus only made 50 Signature Edition SR22 aircraft with both Alan & Dale Klapmeier’s signature displayed on the side. This one could be yours!

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Paul Sallach at 702-285-0604.

 


2011 Cessna 162

Features include: Garmin G-300 GPS with AHRS, McCauley Composite Propeller (recently upgraded)

With no known damage history, this recently-inspected aircraft is ready to go!

To inquire about this aircraft, click here or call Jon Stull at 937-418-4498.

 

Here are the newest aircraft listings at Lone Mountain as of May 18, 2018:

 

2002 Cirrus SR22 G1

2002 Cirrus SR22 G1

Features include: Avidyne IFD 540 Touchscreen WAAS GPS, ADS-B Transponder with Traffic & Weather.

This aircraft, which has always been hangared, just had an annual inspection completed in May 2018.

Transition Training is included in the purchase of this aircraft through Cirrus Embark Program.

To inquire about this aircraft, click here or call Mark Egan at 612-321-6489.


2006 Liberty Aerospace XL-2

2006 Liberty Aerospace XL-2

Features include: Garmin GNS 430 WAAS GPS, FADEC Engine Controls and Vision Microsystems VM-100 Engine Display.

In this fun two-seater you’ll fly at a very economical rate, burning only 5-6 Gallons/hr.

You will receive a custom canopy cover with the purchase of this aircraft.

To inquire about this aircraft, click here or call Mark Egan at 612-321-6489.


2001 Cirrus SR20

2001 Cirrus SR20

Features include: Aspen Evolution Flight Display, Garmin WAAS & ADS-B and Flight Stream 210 Avionics.

Always stored in a hangar, this aircraft is ready to go with only 350 hours since a major engine overhaul was recently completed.

You will receive Transition Training through the Cirrus Embark Program with purchase of this aircraft.

To inquire about this aircraft, click here or call Mark Egan at 612-321-6489.

By: Gordon Ramsay, Aircraft Sales

I have a cousin who’s a plumber. Jon. This guy knows almost everything there is to know about plumbing, joints, leaks, soldering; I mean he’s good. Occasionally I try to repair a minor plumbing problem at our house and it usually ends with some unsightly stains on our kitchen ceiling. Jon makes it look easy to fix those things. It’s what he does.

As good as Jon is at plumbing, I’m not going to call on him to perform my next hip surgery, nor would I call my doctor to help fix my shower drain. Stay with me, this analogy is getting somewhere.

Unfortunately in aviation lately, there seems to be more instances of non-aviation sales professionals acting on someone’s behalf in the purchase or sale of an airplane.

These individuals include mechanics and certified flight instructors. Some are also professional pilots. The ones I have met in my dealings are consummate professionals in their respective fields. The instructors have an incredible depth of aircraft systems knowledge, the mechanics are great wrenches, and the pilots are great sticks. They are much more proficient in those areas than I could hope to be lacking their decades of hands-on experience.

This role-expansion is causing more problems than it seems to be solving. Why is that? If you think it’s expensive to hire a professional, wait until you’ve hired an amateur.

My friend who is a professional flight instructor is one of the best out there – hands down. The people I refer to him speak very positively of their experiences. Recently we’ve been working in aircraft deals together where he has been hired to negotiate on behalf of a purchaser for an aircraft I have for sale. Some of these transactions succeed, but one such trade recently fell apart during this process. My friend was acting on partial and speculative market data, and I believe this turned out to the disadvantage of his client. Both buyer and seller missed what I think was a very sound deal.

Well intended individuals are giving opinions of the current market value of aircraft, and also providing recommendations on offers and negotiations. The problem is this is not their area of expertise.

They may not even have as much experience as you, the reader, with negotiation. They may have downloaded the latest bluebook software and are using partial, historical data at best to provide incomplete market information to you, the buyer. It’s like trying to make a recipe with only the ingredients list…could be very hit or miss.

The general aviation market is changing at a very fluid rate. Some markets change weekly. Some markets vary widely in demand from older vintage to more recent models. It’s not always rational either. It takes constant exposure in these markets to remain fluent. It can’t be done based on a generic formula you can apply to the whole marketplace, as wonderful as that might be if it were true. 

A flight instructor is a wealth of aircraft/systems knowledge and guidance. He or she need not be a great negotiator, nor must they be a sales expert. He or she should know the latest accident/incident reports, and those findings should be incorporated into their training material.

Though they have flown airplanes old and new, they may not appreciate the changes in demand from a 1998 model to a 2013 model. They may not know the actual dollar value of a strong maintenance history versus a mediocre maintenance history. They may not know the difference in value between a repair using factory new parts at a top notch repair station versus a repair that was done to minimum criterion by a shade tree mechanic. These things are very hard to quantify and they can get lost in the analysis.

Additionally, a buyer’s or seller’s emotions can derail a transaction if not managed judiciously from the beginning. When a few of these factors come into play, a good transaction can be jeopardized, especially when it’s not being handled by a seasoned professional.

Here’s how you can ensure your chances of finding and purchasing the right airplane at the best price:

  1. Hire someone to do what they are best at doing. If it’s an instructor, hire them to instruct. If it’s a maintenance facility, hire them for maintenance. If it’s acting as an acquisition agent, hire them for acquisition. Please, don’t use a great maintenance guy or instructor as a mediocre acquisition or sales agent. They may persuade you on it for a reasonable fee, but it usually will cost you more in the end. You may move through a couple of failed deals learning the hard way, and end up settling on an inferior aircraft when you’ve missed the best candidates.
  2. If you don’t know, ask. Get references if you’re thinking of contracting with someone and you have questions. Talk to some of their clients who have had similar transactions to yours.
  3. Don’t make it harder than it is. With a good acquisition agent or aircraft dealer, you may not need to bring in a contracted professional for every aspect of the transaction. Often, these agents will have a great network of pre-existing trustworthy relationships, from escrow agents to ferry pilots, that will serve you well. If you know them to be trustworthy, rely on the guidance they give you and don’t let your emotions or pride take over and jeopardize the deal. Many deals stall hundreds of dollars apart because the parties get their eye off the ball and dig in just when a good purchase is about to happen.
  4. Negotiate in good faith. Chances are if you’re looking to take unfair advantage of someone and steal their plane from them at an unfair price, you will end up with a lost opportunity or a bad purchase because you ran after the lowest price. In my experience, the best deals are when both buyer and seller are stretching a bit farther than they think they can. If you see that happening, press on.
  5. Avoid a conflict of interest. If a seller is also seeking to act as the pre purchase inspection facility, perhaps you should consider a nearby third party inspection facility in neutral territory. At very least have your mechanic step in and oversee the inspection at the seller’s facility. If your inspection facility also happens to have comparable aircraft for sale, they may have a conflict and be biased to discredit any other aircraft, no matter how good it is, in order to sell you their own.
  6. Follow your nose. If you smell a rat, it’s probably a rat. There are, sadly, a few unsavory characters in the Aviation Sales business, and they are skilled at developing your trust and confidence. A few well placed inquiries on your part can go a long way. Deal with someone you know firsthand or someone with a solid industry reputation.

About Gordon:

Aircraft sales veteran Gordon Ramsay has joined the sales team at Lone Mountain Aircraft. Gordon was formerly the Piper Program Manager at Columbia Aircraft Sales. Gordon brings over three decades of aircraft sales experience to the team having started in aircraft sales at the age of 16 years old. He is an experienced pilot with Single and Multi-Engine IFR ratings. He is qualified in the TBM, Piper Mirage and Meridian, and has experience flying most piston aircraft.

Gordon will continue to be based near Hartford, CT. at the Salmon River Airfield where he lives with his family.

With an over three decade career selling new turbine-aircraft, Mark Molloy was encountering a common conundrum – clients desired a newer, more capable aircraft, but as financially prudent businessmen, they were unable to justify the expense in relation to their usage requirements. Many explored options like chartering or owning on a fractional model, but those models also reduced access, increased depreciation, and came at a higher cost.

While partnerships offered the strongest financial path, Molloy observed most ended poorly due to complications, risks and entanglements making many clients hesitant to enter one. Not to mention that finding a partner was much easier said than done. Most would-be partners want someone else to buy the airplane, so they can use it at the “great-uncle” rate.

Molloy set out to solve those issues with longtime friend and aviation marketing veteran Tom Bertels, the genesis of which became Partners In Aviation (PIA). Today, PIA offers a structured program that offers the financial advantages of a partnership with the independence, and peace of mind, that come with sole ownership.

“This is not a partnership, structurally or legally. This is managed co-ownership,” said Molloy. “Our customers fly 100 to 150 hour per year, some more, some less. Because the program is limited to two owner/ operators with a structure that incentivizes good behavior, access is comparable to sole-ownership. You fly your aircraft, on your schedule, but at half the cost.”

PIA offers a comprehensive, well-researched co-ownership agreement that differs from a partnership in four key areas — how it’s owned, how it’s shared, options for exit, and protection from default. It is designed to attract those who can afford the whole aircraft, but who would rather not. The agreements encompass the entire relationship in detail — from program entry to exit.

The company’s strategic partners include some of the best known names in aviation tax and law, as well as maintenance and management. Each match is tailored to the requirements of the owner, including the airplane, base, and crew requirements. PIA counsels, but the client chooses.

“When buying an airplane, it just makes sense to have industry experts on your side of the table,” said Molloy. “We have partnered with the strongest players in the industry, with a reputation for integrity to assist here. Lone Mountain more than meets that definition. They are an integral part of what we offer. Our core competencies compliment each other, allowing us to provide a whole new solution to our customers.”

The model also provides a scheduling system, designed around predetermined control and incentivized access, that allows coowners to have unparalleled aircraft access. According to Molloy, having availability comparable to sole-ownership has been key to the program’s success.

In addition to providing the structure, PIA also provides the match.

“We have built an organization designed to identify, vet and match highly qualified co-owners. Think of us as ‘Match-dot-Com’ for business aircraft,” said Molloy.

Our team at Lone Mountain Aircraft is impressed with the creativity and secure structure PIA provides for owners with low to medium usage requirements. It’s a new look at an old problem, and it’s one that is beginning to shift the business aviation industry one PIA Managed Co-Ownership agreement at a time. For more information on PIA, go to PartnersinAviation.com.

Mark Rogers, President, Lone Mountain Aircraft

Fourth quarters are typically the most active for aircraft sales and Q4 2017 was no exception, with tax-motivated purchases driving a flurry of year-end sales. December at LMA saw 32 sales with 14 in the last four business days of the year (a special thanks to our rock stars in operations that make this possible)!

First quarters, on the other hand, are typically the slowest for aircraft sales in North American markets, but if the first two months are any indication, 2018 will see another robust year for the industry. Our team is busy with sales and acquisitions, which seems to be a common theme industry-wide.

The new tax law allows for immediate expensing of both new and pre-owned aircraft, providing an incentive tax-motivated buyers to proceed with confidence.

Inventory Values: While our last update reported a slight reduction in inventories, we now have leading indicators pointing to a slight increase in price indexes. Amstat released an update this month indicating a recent uptick in aircraft values. In the Turbo-prop segment, since October 2017, values have increased +3.9%. The Light Jet segment has been more consistent with the average estimated value up +8.2% in the last 12 months. Lead times for new aircraft are starting to lengthen, with several OEM’s now reporting greater than six month lead times on the most popular models.

Whether this represents a short-term blip or a reversal of the decade-long slide in values is yet to be seen, but we are cautiously optimistic for the latter. We are confident in stating that this is the most active aircraft resale market we have experienced in the last decade, and the best opportunity we have seen in as many years for owners considering trading.

Here is a quick look at what else is new:

Current Market Acquisitions: Lone Mountain is currently acquiring a Phenom 100 and late-model Piper Meridian for qualified clients. Let us know if you are considering selling or know of an available aircraft.

Vision Jet Positions: We’ve sold 6 more Vision Jet Positions since our last update and we recently sold our last Jet Position that will deliver in 2018. We still have multiple positions available for 2019 delivery, and Cirrus has a few remaining demonstrator aircraft that will deliver this year. I’ve now had a chance to make five separate flights in a Vision Jet, and I continue to be impressed with how well Cirrus has designed an aircraft that sets the standard for ease of transition. If you haven’t yet had a chance to fly the Vision Jet by Cirrus, call us to make arrangements.

We look forward to hearing from you!