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