Current conflicts and tensions in Eastern Europe may cause some unease with international economists; two experienced aircraft brokers though, see the situation a bit more relaxed about the event’s influence on the European market in general and point out that Europeans should keep a watchful eye on the USA buyer pool.
“It is important to remember that despite the current events in Ukraine and Russia, there is still a great need for executive transportation using private aircraft. The sanctions surrounding the conflict will indeed have a negative impact and there will be obstacles for the aircraft business, particularly with regards to sales. Currency controls and increasing sanctions will pose difficulties for lenders, sellers and operators. However, business will still occur. ,” says Oliver Stone, Managing Director of Colibri Aircraft in London, UK. “Just recently we completed a transaction to that region, and although there were some difficulties, the owner is happy and flying his aircraft frequently. There are many business people in Russia who will not be affected by the sanctions, and who will continue to use their aircraft. There will continue to be private aviation business there and opportunities will remain. We went through a lot of ups and downs in various economies in the past five to six years. We monitor ALL markets carefully.”
Stone points out that the USA buyer pool is increasing and European aircraft have to be extra attractive; there is a need for extra incentives to draw those buyers away from the US aircraft on the marketplace.
“In certain market segments, USA buyers account for over 80% of all transactions. It’s our job to prepare our European clientele for that scenario” says the Colibri executive. After years of aircraft leaving the USA, we have seen a strong surge of activity going back to the USA register.”
Each type of aircraft market has its own unique dynamics, trends and activity levels; in that regard Central and Eastern Europe is no exception. Marian Jancarik who is in charge of Colibri Aircraft operations in the CEE region comments:
“I operate from Slovakia with a keen eye on everything happening in Central and Eastern European business aviation market. The Czech Republic, and Prague specifically, is a place like no other, and its perceptions, preferences and mentality of the Central and Eastern European market make it stand out amongst other European countries. Unlike other countries in the region, the majority of private jets are owned by private individuals for personal use; very few are delivered specifically for the charter business. This makes the population of the business jets in the Czech Republic very stable and signifies a growing industry that I’m glad to be a part of.”
About Colibri Aircraft
Colibri Aircraft is a private aircraft brokerage and asset advisory company based in London. Colibri’s focus has been on the international arena, remarketing and purchasing aircraft for clients as well as advising lenders on asset value protection and repossessions. Having bought and sold aircraft for customers in Asia, South America, Europe, the Middle East and the USA, Colibri has a first-hand perspective on different cultures, their approach to private aviation and the knowledge to complete transactions across multiple jurisdictions. Colibri Aircraft understands that aircraft transactions are really transactions between people that will only complete once the personal desires and business needs of each party are satisfied. Keeping an eye on the people part of the transaction while administering the numerous technical details common in international deals is what sets the good brokers apart.