JETNET

Data Is Not Intelligence

In response to the post below by Josh Mesinger, we couldn’t agree more regarding the widespread need for accurate, actionable business aviation market intelligence, to go hand-in-hand with a professional sales approach. In fact, this is what JETNET has been providing – and perfecting – for much of the past 25 years. Every buyer and seller has a vested interest in making informed decisions based on the best available intelligence. At the end of the day, knowing more – whether as a manufacturer, buyer, seller, financier, lessor, broker or dealer – is a success element that brings competitive advantage. Our view is that it is not enough to know what a particular aircraft bought or sold for, as the specifics of a single transaction are unique to that one deal, which is generally inconsequential within the broader marketplace. Knowledge of key market metrics within the business aviation industry – including an analysis of economic conditions and business cycles, price and inventory trends, and evolving customer purchase behaviors and perceptions – is essential to a fact-based, intelligent approach. JETNET has taken that essential next step with its JETNET iQ market intelligence reports and forecasts. Quarterly surveys of aircraft owners and operators worldwide reveal numerous patterns, such as purchase and selling intentions, brand preferences, utilization patterns and intentions, and other market factors. Each quarter, we incorporate economic, industry and survey data together to analyze and generate forecasts of where the markets are going – not just where we have been. Our view: at the end of the day, a knowledgeable and experienced sales professional, armed with fresh market insights and data-based research, can be a very good person to know, regardless of which side of the table you are sitting.

Rollie Vincent
JETNET iQ Creator / Director
rollie@jetnet.com
Tel: 972-439-2069

Data Is Not Intelligence
May 24, 2013
By Josh Mesinger

There is a lot of data in our industry.  There are countless websites that list aircraft for sale, there are resources for operating cost information and there is the rumor mill about what aircraft sold for among many other data points.  Unfortunately, none of that data on its own translates into intelligence or provides buyers and sellers what they really need to know to make smart informed decisions.  This is another place where aviation professionals who are actively in the industry daily add considerable value.  Turning data into intelligence is the only way to make smart informed decisions to complete a successful sale or acquisition and correctly protect your investment.

For example, when you look at today’s Challenger 604 market there are over 50 aircraft for sale and many of them with asking prices under $7,000,000.  Many buyers will tell you that they have heard that their friend bought one in the $6Ms or better and they want the same deal.  While those individual data points are accurate, they don’t tell the full story.  When you actually look at each of the 50+ aircraft for sale, you will see that very few might make a specific buyer’s short list.  Either the total time is higher than that buyer wants, or they have damage history or they have pedigree that makes them less desirable than others that are available.  Once the short list is created based on an intelligent review of the available options, the buyer’s representative can use their industry relationships to gather real market intelligence to apply to their discussions to understand what each individual aircraft should really be worth and what they should offer on each.  The same applies to aircraft sellers.  Without really understanding the details of the competitive aircraft in their make and model category and the competitive categories, they will never be able to build an intelligent pricing strategy that most effectively and quickly sells their aircraft ahead of the competitive aircraft.

When looking at operating cost information, there are generic high level analysis on different makes and models in the industry which can provide a good overview, but building specific budgets takes a lot of intelligent thought to understand the different intricacies of any specific aircraft and the operator’s requirements.  Unless someone takes the time to understand the maintenance history and future maintenance projections for a specific aircraft and how and where the owner will use it and intelligently think through those details, no amount of raw data will ever provide the right holistic understanding of the real costs of ownership.

There are those in our industry who wish that the amount of available data were more limited.  I consider the data a positive addition to our industry and it helps provide general high level knowledge to buyers, sellers and operators.  However, without smart people on your aviation team to help interpret that data and turn it into intelligence to apply to your sale, acquisition or operation, the data will not add any value and it will be distracting and misleading.  Choose your aviation team members wisely and go forward with intelligence that can lead to success.

JETNET

JETNET Contributes to ITC Report on Business Aviation Competitiveness

JETNET was proud to contribute to and be part of the information board for the ITC Report:
Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness

“The U.S. business jet manufacturing industry is facing new challenges as it competes in a market environment characterized by tightened credit, uncertain government funding for research and development (R&D), and new entrants into the industry, reports the U.S. International Trade Commission (USITC) in its publication Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness.

The USITC recently concluded the investigation for the U.S. House of Representatives’ Committee on Ways and Means. As requested, the report covers the period 2006-2010, with data from 2011 as available, for business jets at or below 50,000 pounds maximum takeoff weight.

The report provides an overview of the structure of the U.S. and global business jet industry; discusses the global market for business jet aircraft and the effects of the recent economic downturn on business jet demand; reviews government policies and programs involving the business jet industry, including those related to financial support, aircraft R&D, and certification; and examines factors that may affect the future competitiveness of the industry, particularly in the United States, Europe, Brazil, Canada, and China.”

Download the full report here.

Diane Levine-Wilson

How Do You Want Your Market Information?

How Do You Want Your Market Information? With or Without Opinion and Conjecture?

There is something positive to be said about being a purist when it comes to providing objective market data. To me, as a lifelong data purist, it means providing fact without fiction. By working only with facts, the purist in me believes that my data is the most unblemished by opinion. Besides, it’s easy when you don’t slice and dice the facts to make them more palatable. To quote an all too often overused phrase these days, “it is what it is!” Annoying as this sounds, it is applicable to my talking points here.

At JETNET our adherence to purism forms the basis of our research. In our contract with you, we clearly agree to provide the truth as we receive it from the entities responsible for the status of their aircraft. We respect that you understand this very core nature of true research.

However, adhering to our policy runs the risk of reporting facts that some folks don’t really want to hear. Truth is, these days that’s just as much a burden on us as it is on our information recipients. To us, because we receive criticism about all the aircraft we show for sale that have been on the market for an extraordinary long length of time escalating “market rash” to plague level, the reality is the dealers and brokers (as well as owners) need to look at why they’re insisting that JETNET keep them listed for so long.

I am glad that the market re-gurgitators are calling themselves “information-services” – clearly not purporting to be research providers. Research implies fact-finding whereas information could be anything, at its worst, devoid of fact. That’s a good thing to remember. But don’t be mislead by thinking that any information-service is research. Some of those information providers give out opinions, suppositions, and undefined conclusions that aren’t necessarily helpful for your business decisions. The question you need to ask yourself is “why am I paying for someone else’s opinion when I have all the facts available from my research provider?