Happy Fall to All!

The weather is cool and the leaves are turning colors and falling to the ground which makes this my favorite time of the year.

Talking to my business collages, we always love to compare business and share our positive as well as negative feedback with one another.  We test each other on how business is plus I personally keep on top of the industry trends and watch what the industry leaders are doing or for that matter not doing.

When Congress extended the investment tax credits a few weeks ago I was very enthusiastic in hopes that the forth quarter of 2010 would be somewhat brisk in terms of buying and selling.

Since we still have two more months to go in this quarter, perhaps its still too soon to tell, but I personally have noticed a small upswing in sales inquires as well as appraisal requests.  This is indeed a good sign compared to what it has been lately but no where near what it should or could be.

Still overall business in our industry seems to be stagnate to say the least.  The big manufactures are still laying off employees and not building aircraft although they don’t really want you to know that.

I see that aircraft lenders are still very squeamish and are still playing hard ball when it comes to qualifying and/or evaluating the aircraft of question.  Instead of telling their potential customers that they will only finance 75%-80% of the value of the aircraft they are using resources like Vref and the Price Blue Book to gather values of which both very much undervalue the actual worth of the aircraft.

What they should be doing is hiring a qualified and well trained aircraft appraiser of which can appraise the aircraft using current market trends and facts of which Vref and such have no clue about.

Perhaps I’m bias since I am a trained and experienced aircraft appraiser as well as a Senior Member of the National Aircraft Appraiser’s Association (NAAA).

I do pride myself on thoroughness and I believe with all my research tied in with the aircraft’s inspection, I do feel that end result is a very accurate valuation of the aircraft of subject, and no an accurate appraisal does not come easy by any means when it comes to actually doing the job itself.

Traditionally speaking, here in the United States the GA sales season runs from late March through Thanksgiving or there about depending on locations.  After that period the aircraft gets tucked away in the hanger for the winter in hopes of better and warmer days.

If you are looking to sell or buy, now is the time to do so, before the north winds begin to blow!  Buyers can take advantage of the extended investment tax credits and buyers can get that last minute sale before things shut down for the winter.

Let me know if I can help!  My company responds very quickly to appraisal requests and we can also broker your aircraft very efficiently and professionally.

If you are looking to buy, we'll handle all the research, inspections, and closing details work!  Our Aircraft acquisition program is professional and complete!

Give me a call & have a great Fall Season! 

Best Regards,

Rick Rossner

President

How it all began!

Thinking back to my childhood years, there was no doubt that I was destine to be an aviator and somehow always involved in the aviation industry.

While most young guys were chasing girls and striving to have the best car in high school, I was not to be bothered as I could only think about airplanes and flying.

I call it my life's passion and curse as I've been many times called a workaholic, but I just laugh at the work jokes because deep in side I know this is not really work at all if I love it!  I mean how could it be?  I look forward to the everyday challenges of the business of which have not been so very good these last few years thanks to our lovely economy.  Even though business is slow and sales are few, the love of the business and the joy of flight still remain a passion of mine.

I've heard that if you love what you do then you will never work a day of your life.  Oh so true!

Perhaps this passion comes from my grandfathers of which both were pilots and loved aviation, but then again my dad had absolutely no interest in aviation at all so perhaps this sickness skips a generation.

Coming from meager means as a child my family could not afford to pay for my pilot lessons, so financially speaking it was up to me 100%.  I looked for the highest paying job that a 16 year old high school freshman could get in the very small town of which I grew up in.  That happened to be a very popular and busy grocery store.  Of course every kid in high school was competing with me to become a box boy and jobs were very hard to come by at the time.

A close friend of the family once gave me some advise that has stuck with me since.  He said, "Son if you want something bad enough then you will figure out a way to get it".  Don't give up!  Put on a tie and go visit that store manager twice a week or more, and let him know you really want that job!  I did exactly that and was successful after a few weeks.

Later on the store manager became a very good friend of mine and he told me that he had actually hired me, not because he needed a box boy but because I was so persistent, plus he was sick of me coming in and bugging him for the job!

To this day I still believe that if you truly want something really bad enough you will figure out how to get it with some well thought out goals and some hard work.

So every dollar I made as a box boy went to flying lessons and a 1969 firebird.

Having all my flight ratings before I was a high school senior allowed the passion to build as I strived to gain more flight experience in larger aircraft which wasn't easy, but I prevailed non the less.

Once I graduated from high school I continued my college education at Oregon State University and continued to fly as much as I could given my work and school schedule.

During college one summer a good friend of my Granddads of which owned a lumber company, paid for my type rating in his Cessna Citation Jet.  That was the last straw and I was hooked for life!

Flying right seat in a Citation, going to college and working as a clerk at Albertson's keep me pretty busy but it was a very fun busy indeed.  Hard work but fun!

After finishing college, I went to work for an Airline and after doing that for a while I decided that the idea of working for a large company and just being a number, no longer interested me as I wanted so much more.  The flying was still fun but I wanted to make much more and expand my experience in the industry.

I went to work for the Cessna Aircraft Company here in the west as a Regional Sales Manager.  I got to fly around in new Cessnas and meet new people which I loved.

I shortly discovered that sales in the aviation business was what I wanted to do.  After all, sales in any industry is the top earning way to go plus the flying was there as a derivative!

After a few years I was recruited over to another newer aircraft company called Commander Aircraft Company.  I excelled greatly as a Regional Sales Manager and sold a ton of Commanders.  I was the top seller for the company for several years and made a lot of money.

When the economy took a strong dip in 2001 the mismanaged company that I worked for went bankrupt and I was out of a job.

I decided that I would no longer be held to the strict boundaries of which I had no control over with another man's company, and I opened OakTree Aviation Services.

Some folks wonder why I named my company "OakTree"?  Well in this part of California’s central valley the Oak Tree is very prevalent and domestic.  These trees can become very huge and majestic and they are not only highly coveted but also protected in some cities from being cut down.  Perfect!

The success of my company has been great in my estimation.  Yes times are hard in the aviation industry but I have grown so much since the early days and have well over 10,000 hours of flight experience.

I am very busy and highly sought after for both aircraft appraisals, as well as a professional witness.

I do a lot of consulting in the business and folks seek me out for assistance with aircraft acquisitions of anything from a single engine Cessna to Gulfstreams.

I thrive on integrity and creditability and I love helping my fellow aviators and aircraft owners achieve their goals.  I have mentored several young aviators over the years and I am very proud of that.

The best part of my job of which I really and truly love, is that all of my past customers become my good friends after the business is finished and I am a better person because of that which I am very thankful for.

In The Heat Of The Aviation Summer

So here we are in the heat of the Summer and I hope all are enjoying the warm weather!

The way time flies these days (no punt intended) we will soon be in the Dog Days of Summer and then my favorite time of the year, Fall.

Typically this time of year is very busy with sales inquiry, aircraft appraisals for both buyers, sellers, and financing institutes, but so far this summer there is not really too much business to write home about.  Not good since this would tend to be an indication for how business will be like when the summer sales cycle winds down towards the end of November.  This being the case I'm thinking of perhaps looking to get a job flipping burgers the day after Thanksgiving!

Seriously though for the aviation business these are very long summer days.  There are clear signs from all the aircraft manufactures of which have not replaced laid off employees for several months or years, the insurance industry, aircraft financing industry, FBO pilot training, and just about everyone else in this business, that all is not yet well when we think of the Aviation Industry.

A good friend of mine in the aviation insurance business told me that he knows of FBO's that used to have 30 plus aircraft that were flying all the time, but now have less then 5 active line aircraft.  Not good!

Yes conditions are better then they were a year ago, but no where near what it should or could be.  We have to remember to stay positive and also remember that there are always good sides to every bad story and yes there are some good things that we can take advantage of during these Aviation Dog Days of Summer.

If you are a buyer there there are some deals to be had out there.  There are lots of owner's that would be delighted to speak to you about purchasing their aircraft especially if it has not been updated with new cosmetics, avionics, or a fresh engine/s.  There are still a ton of original, original aircraft out there and the ones for sale are just sitting and waiting for that buyer that has an eye for improvements.  Most buyers these days want to buy an aircraft that has already been updated because they want to fly now, not in 3 months after they get the work done themselves.

For buyers the down side is still being able to qualify for financing as the banks are still somewhat squeamish about carrying paper on a substandard aircraft 10 years and older, or below average credit scores, not to mention now required 20 plus percent down payments in some cases.

On a separate note, a seemingly positive item to watch is this huge technology discovery that will allow a synthetic additive to be added to Avgas of which will replace the current lead content that has caused us so many sleepless nights wondering how this subject will all end up!  More to come on that as we move forward.

So remember to stay positive and cool during these warm days and we hope and pray that our industry will be able to march forward and continue to grow.

Should you require aviation services feel free to give us a call at (888) 703-2369 or visit us at oaktreeaviation.com and we would love to work with you in any event!

Hope you enjoy the rest of your summer and don't forget the sunblock and thanks for reading!

Best Regards,

Rick Rossner

President

Oaktree Aviation Services LLC
(888) 703-2369

Welcome Summer!

The first day of summer was Monday June 21st, which means the days will now start getting shorter again! Already!

Lots going on in the world of aviation these days. The debate on fuel changes is rapidly heating up which may finally lead to the demise of 100LL Avgas. But then again we've been hearing about this for years now and still no one really know how or when this will all end up.

Leaders of owners' groups for Cirrus, Malibu/Mirage, Bonanza, Mooney and Twin Cessna aircraft have banded together to form the Clean 100-Octane Coalition, and make clear what they need from any replacement 100LL. Owners of these aircraft have the most to lose if the nation adopts 94UL (essentially 100LL without the lead) as a replacement fuel, because that fuel will mandate either expensive engine modifications, power de-ratings or both for their aircraft. It's likely this group's existence has already influenced AOPA's latest statement on a replacement for 100LL. At the annual Cirrus owner's migration in Dayton on Saturday, the coalition met with AOPA president Craig Fuller, as well as representatives from Cirrus, Piper, GAMA and Teledyne-Continental Motors (TCM) in what became a four-hour meeting to further press the point.

In other news, A report that came out under the radar on June 1, the FCC slipped in a stunning mandate. Section (h) of the executive summary of the report reads "We prohibit the certification, manufacture, importation, sale or continued use of 121.5 MHz emergency locator transmitters (ELTs) other than the Breitling Emergency Watch ELT." Bravo for Breitling, but what about the rest of us? U.S. pilots all know that satellite monitoring of 121.5 signals was discontinued in 2009, but they are still acceptable to the FAA — just not the FCC, effective in August. That allows two months' compliance time, and even if every GA aircraft owner took immediate action, it would still be impractical to convert all U.S.-registered aircraft that quickly. The report took the Aircraft Electronics Association by surprise, too. And as AOPA's vice president of regulatory affairs Rob Hackman said, "When two government agencies don't coordinate, GA can suffer." AOPA also proposed that the FCC did not sufficiently understand the implications of its ruling, in part because the agency suggested aircraft operators would "migrate" to the newer 406 MHz ELTs only if the older technology ELTs were rendered illegal to use by FCC fiat.

The aircraft appraisal side of the business continues to pick up which indicates the sales end of general and business aviation is warming up along with the summer weather.

Brian Jacobson from NAAA states "there was a significant improvement in the Spring buying season this year when compared to last year. There were fewer ‘bottom feeders’ and more buyers who bought good quality airplanes at prices that were realistic for today’s market. I’m happy to say that many of our members helped support those buying and selling aircraft this Spring by providing good, high quality appraisal reports".

The Spring time activity led to slightly higher prices for some piston engine aircraft, but one must remember that only the best of the breeds are selling. It is still a buyer’s market out there and aircraft that need any major upgrades or refurbishment are difficult to sell. Aircraft that need complete refurbishment (engine, paint, interior, avionics upgrades) are almost impossible to sell.

The turbine market is seeing an upturn in sales of late model upper end aircraft while others, like the Challengers and some Falcons, continue to decline in value. Sales of smaller turbines have been slow at best but still somewhat better than they have been for the last two years.

The appraisal business here at OTAS seems to be gaining momentum which is a good sign for Central California. Other metro areas seem to be doing even better then urban areas at least now there seems to be hope for a brighter aviation future.

If you are looking to update your portfolio with regards to your existing aircraft's current value, or perhaps you are looking to sell or purchase. Feel free to give us a call and we can help! Whether it's a full certified appraisal or perhaps our lessor priced Aircraft Market Analysis for that quick real-time market evaluation.

Plus don't forget if you are looking to purchase, now is a great time and OTAS offers a complete and comprehensive one-stop acquisition program. On the other hand if you're looking to sell we can help you with our world class Aircraft Brokerage Services.

Feel free to give us a call at (888) 703-2369 or visit us at oaktreeaviation.com and we would love to work with you in any event!

Have a great and relaxing summer everyone!

Best Regards,

Rick Rossner

President

Oaktree Aviation Services LLC
(888) 703-2369

Happy Spring everyone!

So for months now I have been closing watching the Aviation Industry in terms of the market and primarily wondering when things are going to get better!

There are a lot of talking heads out there including myself and they are all saying something different.  Some have a very bright outlook for the near term future of General Aviation while others say things are still very bad and will remain so for the time being.

I’ve been in this business for more years then I care to admit and I’ve personally never seen it this bad for this long.

One of my first realizations in the business many years ago, was that General and business Aviation was like riding a roller-coaster.  Things are up one year and then down for two years.  When things were good in the business it was just OK, but when things got bad they got real bad!

Traveling about the state of California and that of the country gives me the opportunity to talk to a lot of people and I’ve generally found that the overall industry attitude is not one of optimism.

In terms of sales, the market is still bottomed out and not moving very well at all, but I’m still seeing headlines from publications like Flying Magazine “Used Aircraft Market indicates a comeback.”  Where is this happening?

From Bob Howell of Door Aviation, a major aviation financing brokerage company states “Over the last several years, I have witnessed the aviation lending environment morph into something that hardly resembles its prior state.  One of the major industry changes is that we no longer see the 10% down transactions that once dominated the market.  There are also barriers left and right in regards to both collateral and credit.”  Bob is further stating things like “Cash is King (Down Payment) in terms of being able to finance” and a “650 credit score is no longer considered good.”  He further states that “Any Jet aircraft older then 10 years will pose a problem obtaining financing.” 

Brian Jacobson of NAAA claims to be “seeing more buyers coming into the market this year that are a step above the bottom feeders we have been seeing for the last 18 months or so. These people are looking for good aircraft and they are willing to pay reasonable prices. Of course, reasonable prices are still well below what they were two summers ago, but the feel of the deals I have been made aware of is different.”

Brian further states that “Bottom feeders turned off many potential sellers who then removed their aircraft from the market or kept the asking price well above any level where the airplane could be sold. However, with more reasonable buyers coming into the market we will see more aircraft trading and perhaps an uptick in the most popular aircraft.”

Brian Foley of Brian Foley & Associates, Sparta, New Jersey, believes that sales of piston aircraft will lead the next GA comeback; and it's already started. Foley contends that piston-aircraft buyers march to different market beats than jet or turboprop customers. For example, he cites the immediate post 9/11 period when sales of pistons dropped by only 2 percent when sales of jets and turboprops fell off by 14 percent and 34 percent respectively. He does call the piston market "more price-elastic" as in the period beginning in 2007 when sales of pistons began dropping off while turbines continued to spool up.

Foley attributes the contrast to high fuel prices, imploding personal financial portfolios and the shrinking credit market that had more direct effects on buyers of personal aircraft. Foley looks to the summer for a fuller rebound of piston aircraft sales (based on pent-up demand, among other factors), as much as a double-digit percentage increase from last year's admittedly depressed numbers. And he expects the trend to continue "at least a couple of years."

During this period of transition I’m sure we will see some positive signs as things begin to warm up more and the “GA Selling Season” as I call it (April through Thanksgiving) opens up this month and hopefully we will see some more good inventory hit the market and get sold in a reasonable period of time.

A very solid constant that remains to be the case in terms of pre-owned aircraft is the fact that the aircraft that have the latest and greatest in terms of technology/Avionics are the aircraft that are moving.  The older/original aircraft are sitting and not moving nor are they commanding a higher pricing plain because the buyers today are not interested in purchasing an aircraft and then having it sit in a shop for 3 months or longer while it gets new avionics, autopilots, cosmetics etc installed.

In terms of the appraisal business, this seems to be picking up some which is a strong indicator that both buyers and sellers are once again beginning to look at what aircraft values actually are now, in real time market conditions.

While we are beginning to see some signs of increased sales activity, companies like Cessna laid off another 95 employees at their (Single Engine) Independence, KS facility.

So the long and short of the status of the industry is both positive yet negative and much like early spring where winter is not quite ready to yield its cold clenches to Spring’s new warm growth, so goes the Aviation business.

I believe that as the economy continues to recover and the banks get on more sound footing, aviation lending will be less restrictive and sales will continue to revive again but how soon and much less restrictive?  Stand by one and lets see!

Stay current with Aviation Sales and Aircraft Appraisals by visiting OakTree Aviation Services.

Rick Rossner

Welcome to OakTree Aviation Services!

Hello, my name is Rick Rossner and I am the owner and president of OakTree Aviation Services of which I like to call OTAS.  Welcome to my new blog!

My company specializes in professional aviation services based on over 26 years of experience in the aviation business.

My company specializes in several aspect of the business but we focus mainly on the aspects on Certified Aircraft Appraisals as well as Aircraft Sales and Acquisition offerings.

I am a Senior member of the National Aircraft Appraisers Association. I've appraised so many different types of aircraft, both fixed and rotor wing including homebuilt and experimental, both piston and turbine powered aircraft. I've traveled all around the world and to some of the most exotic places in order to accommodate an appraisal request or a series of appraisals.

With over 26 years of aviation experience including aircraft ownership, buying and selling and professional pilot services I consider myself fairly well versed in most aspects of aviation.  Do I know everything?  No way!  But if I don't know about it I'll find someone that does!

So just to wrap-up and summarize my first blog, if you are looking to buy, sell, or donate, or if you are a financing company looking for a quick and accurate NAAA certified appraisal then feel free to give me a call at (888) 703-2369 or stay current with Aviation Sales and Aircraft Appraisals by visiting OakTree Aviation Services.

Also if you are looking to buy or sell an aircraft, you are in the right place!  Feel free to give me a call and let's discuss your option!

In the very near future look for more blogs about the aviation business of which I hope will be informational and interesting in terms of Aviation subjects, Flying and perhaps some really interesting subjects or observations.

I look forward to talking to you soon!!

Rick