Jay Mesinger

Questions & Answers
Strong Opinions

February 20, 2004:

In this section, GBJ takes questions from readers on all business aviation issues and finds the relevant expert to answer their queries. This month, Jay Mesinger fields questions about the ‘corporate experience’ and the speed at which the turbine aircraft market is turning around.

Q: I have read several articles you have written about the ‘corporate experience.’ In your opinion, how visible and responsible should the flight department be in the experience?

A: Great question. I have some very strong opinions about the ‘corporate experience’ and when it begins. Frankly, I think it begins all the way back to the first communication a passenger has with the flight department. For instance, if your department is tasked with scheduling to a pick up in a client’s hometown, the opportunity to start the experience should begin with a call from the person responsible for scheduling the trip.

This, like any communication between the company and its clients or prospects should embrace the corporate culture and extend the company’s passion just as if that customer was talking directly to the ceo. It should be from that first contact, extending through a well written and grammatically correct trip confirmation, all the way to the customer being picked up on his or her ramp. As I have mentioned before, this all seems so natural and many would think this doesn’t even bear discussing. I see trip confirmations hand-scribbled and poorly written. As I sit in FBOs regularly, I see passengers greeted dispassionately, confusion about baggage and special catering needs ignored; all this leaving the passenger with a poor experience from the start. The idea that the flight department proudly carries the company flag and delivers a culture that is right on target creates an importance of the department and confirms its ability to the corporation that it can deliver on point.

Q: Is the turbine aircraft market turning around so quickly as to eliminate the buying opportunities that existed in the past two or three years?

A: Not exactly. Yes, the activity level has picked up significantly. Yes, this has led to a reduction in certain categories of aircraft. Most if not all manufacturers have sold their inventory of White Tails.

Delivery time for new orders is back to the 12 to 18 month range. Pre-owned availability is tighter. Some deals still exist! Be sure when you think ‘deal’, you think of the big picture, not just the price. With respect to new aircraft acquisitions, the combination of the accelerated depreciation rules and low interest rates are still creating opportunities for buyers. Higher than normal pre-owned inventory levels are creating buying opportunities in that segment as well. Of course the low interest rates apply to new or used purchases and go a long way to sweeten the deal.

As with any market that has an abundance of choice, approach the markets carefully and be prepared to look before you leap. It is like a recent article I wrote about being a kid in a candy store. Take your time, keep your eyes open and do not make decisions based on thinking this is the last great buy. I always say if this were the last great deal, I would be out of business when it sells. I feel very confident of a long future.


- Jay Mesinger