Successful aircraft remarketing – maximising value from a distressed aircraft
Share:
Overview
ACC Aviation was tasked with the challenging remarketing and disposal of a Boeing 737-300 aircraft for a client. The aircraft, awarded through a court settlement after the closure of Tayaran Jet, presented difficulties due to its age and non-airworthy condition.
Despite these challenges, ACC Aviation successfully managed the entire remarketing process, delivering on pricing expectations and closing the transaction within a remarkable nine-month timeframe.
Challenge
Our client, a European high-net-worth-individual (HNWI), contacted ACC Aviation’s asset management team to assist with the remarketing and disposal of one Boeing 737-300 aircraft operated by the then-defunct Tayaran Jet. The aircraft had been awarded to our client through a court-ordered settlement, and with the airline going out of business, our client was in a position where they had to remarket the aircraft quickly.
Considering that the aircraft was a 1991 year of manufactured Boeing 737-300, an ageing aircraft that was not in airworthy condition, the list of potential buyers for this aircraft was small, and the prospects for success were challenging.
Our solution
As part of this aircraft remarketing assignment, we managed and oversaw the entire remarketing process, from the initial aircraft remarketing strategy through to the closing of the transaction. Our scope of work included the following:
Pre-transaction Workstream and Aircraft Valuation
As an initial step, ACC Aviation engaged with our client and their technical representatives to ensure that the aircraft’s records were complete, in good order, and would be easily accessible to potential buyers after the execution of a Letter of Intent. We worked with our client’s technical representatives to prepare the aircraft remarketing specification, which summarised the maintenance status and technical condition of the aircraft.
Prior to bringing the aircraft to market, we worked with our client to set internal pricing expectations. As part of this phase, we provided our client with an aircraft appraisal, a maintenance-adjusted aircraft valuation and our opinion of the aircraft’s current market value.
Combining market intelligence with our data subscriptions and contacts database, we identified all potential buyers of the aircraft, developing a robust target list and setting the stage to actively remarket the aircraft.
Active Aircraft Remarketing
In remarketing the aircraft, we pursued both passive and active remarketing strategies. We published the aircraft availability on reputable industry sites and pushed the availability through ACC Aviation’s social media following of 7,000 plus followers while, at the same time, leveraging ACC Aviation’s team of over 60 aviation professionals based across five global office locations to actively promote the aircraft availability to our target list.
We received expressions of interest, performed Know Your Customers checks on potential buyers, analysed offers and offer conditions, and presented them to our client with recommendations on which offers to consider further.
Together with our client’s legal counsel, we advised our client on the drafting and negotiating of the Letter of Intent. After execution of the Letter of Intent, we engaged with the potential buyer and their technical representatives to conduct the pre-purchase inspection and answer questions related to the aircraft’s technical condition and records status.
Aircraft Transaction and Closing
After completion of the pre-purchase inspection, we worked with our client’s legal counsel, advising our client on the drafting and negotiation of the Sale and Purchase Agreement. Upon execution of the Sale and Purchase Agreement, we oversaw the closing of the transaction, including the issuance of the bill and handing over possession of the aircraft and records to the buyer.
Client outcomes
Key achievements
Experience counts.
Our achievements prove it.
- Efficient pre-transaction workstream: ACC Aviation prepared a comprehensive remarketing specification, ensuring complete and accessible aircraft records.
- Strategic remarketing: ACC Aviation utilised industry sites, social media, and their network to attract potential buyers and analyse offers.
- Seamless transaction and closing: ACC Aviation successfully closed the transaction and facilitated a smooth transfer of possession and records.
Related case studies
Managing the Acquisition of a Portfolio of 7 Aircraft for a Returning Client
ACC Aviation successfully managed a complex transaction of 7 Boeing 737 Classics, showcasing expertise in valuation, negotiation, and compliance.
Remarketing Niche Aircraft, the Sale of a Dornier 328-100
Discover how ACC Aviation successfully sold Eagle Air Iceland's Dornier 328-100 aircraft to an Asian buyer, increasing client proceeds by 38% and optimising their fleet. Learn about our aircraft remarketing and fleet optimization services today.
Comair Liquidation: Aircraft recovery, transition, and remarketing
Discover how ACC Aviation navigated complex aircraft recovery and remarketing challenges, securing optimal outcomes for a bank client amidst bankruptcy protection and liquidation.
Advising a lender on drafting and negotiating an aircraft lease agreement
ACC Aviation provided valuable assistance to a West African financial institution by helping them protect their interests and reduce financial exposure during an aircraft remarketing process. Through careful tailoring of the aircraft lease agreement to account for the unique technical condition of the aircraft, ACC Aviation was able to help the lender structure a lease that effectively transferred significant risk and capital expenditure to the lessee.
