Posts

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!   

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!   

As the Director of Operations at GreatAmerica Financial Services headquartered in Cedar Rapids, Iowa, being a pilot offers Martin Golobic a major advantage to running the business. Golobic’s love affair with planes started as a young child on his flights back and forth to Europe, his parents’ birthplace. Invited on the flight deck as a boy, he knew he wanted to one day be a pilot and his dream became a reality 18 years ago when he learned to fly in a Cessna 150. Quickly working his way through a Cessna 172 and Piper Warrior, his family eventually went on to purchase a Cessna 182 in 2003 when he was still a college student.

When Iowa faced a serious flood in 2008, Martin was able to use the aircraft to travel to displaced employees working from all over Eastern Iowa. The plane allowed his father, owner of Great America Financial, to maintain his long-standing tradition of handing out payroll checks in person to his employees. Without the aircraft, they never would have been able to accomplish that in a single day.

Martin traded his 182 for a Piper Matrix, allowing him to go faster and carry more passengers. It did not take long before he realized he should be flying higher where often you could find smoother air and you could be above the clouds, he traded up to a new 2013 Mirage, which he kept for two years before selling and moving to Atlanta. Longing to return to flight, he rented Aero Atlanta’s Cirrus SR22 for his time in Georgia. Returning to Cedar Rapids in July of 2016, Martin was ready to make the jump into a Meridian.

The Meridian, quickly showed its advantages being a turboprop and provided impressive performance. He took family flights to both coasts and was able to visit customers and feel confident that he could trust his aircraft to perform when he needed it to.

 Less than eight months later, Martin purchased an Embraer Phenom 100 from Lone Mountain with less than 1,000 hours of flying under his belt. Flying is now a significant timesaver for work trips. Martin can easily travel from Cedar Rapids to Savannah, Ga. for a presentation and return home within the same day. He now utilizes the aircraft more for business than any other aircraft he has owned due to its comfort, speed and economy.

According to Martin, working with Lone Mountain’s team allowed him to understand the benefits of maintenance tracking and engine and airframe programs while ensuring he found the aircraft that was perfect for his needs.

“Lone Mountain spent a lot of time with me, working through what would be the right fit based on my budget. We spent a lot of long hours talking through the competitive differences in performance, comfort, cost of operations and maintenance requirements.” said Martin. “They also handled all of the due diligence of jet ownership. I did not even know what an engine program was when I operated the Meridian. After going through the process with Lone Mountain, I do not feel like I could have lined up the right people, put paperwork together, and got an aircraft into inspection by myself.”

As the former Regional Sales Director for Embraer, Lone Mountain Sales Rep Mark Stear utilized his many industry connections and unparalleled product knowledge on the Phenom aircraft.

“Lone Mountain has expertise in a variety of aircraft, and I trusted them completely to help me find the right light jet for my needs,” said Martin. “I couldn’t be happier with my purchase.”

Our team of pilots at Lone Mountain Aircraft Sales loves helping businessmen and women find the aircraft suitable for their day-to-day operations. For more information on GreatAmerica Financial Services, go to GreatAmerica.com