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Duncan Aviation Tech Rep Ron Grose Confirms Complicated Aircraft Sale Worth the Hassle

A Duncan Aviation Aircraft Sales & Acquisitions Case Study

The Challenge

A client, who’d been assisted in the past by the Duncan Aviation Aircraft Sales and Acquisitions team, owned and operated an Falcon 2000EXy for several years and asked for assistance finding a Falcon 7X and selling his 2000. With his price range in mind, team members located an off-market 7X in Europe.

There were four complicating factors, which had caused other potential buyers to shy away from this aircraft:

  • The eastern European partners who owned the aircraft had disagreed over some key issues, resulting in a forced sale
  • The bank wasn’t the only vendor owed money. Airports, management companies, flight crews, and maintenance providers had also filed claims against the aircraft
  • The aircraft was based in Switzerland, with limited communication channels to the owners, and the aircraft was registered in the Isle of Man, where it was encumbered
  • The title was held by a Cayman special purpose entity, with limited communication with the owners

In spite of the challenges, the buyer was enthusiastic about this aircraft, and from the team’s perspective, this aircraft had a good maintenance history and had just completed its C Check at a Falcon-authorized service center. The buyer felt the aircraft’s distressed status offered a good opportunity for negotiations.

Eventually, all parties came to an agreement on the terms and conditions of the sale. However, other issues continued to crop up, forcing a continuous stream of delays.

The obstacles had begun to erode our client’s confidence to the point where he was prepared to walk away. He wondered if the issues were too great to overcome, and if the aircraft was in good enough shape to have the Duncan Aviation Aircraft Sales team continue negotiating on his behalf.

The Options

Based on their years of experience with complex, cross-border transactions, the Aircraft Sales team knew the challenges could be overcome, but that it was going to take some time.

Was our client willing to continue with negotiations, or would he prefer to walk away and start over?

The Solution

In spite of the client’s shaken confidence, the team recognized how badly he wanted this particular 7X. To instill confidence, the team enlisted the help of Duncan Aviation’s Falcon Technical Specialist Ron Grose, based in Lincoln, Nebraska. They asked him to thoroughly review this 7X.

Ron has been involved with 7X aircraft since they were on the drawing board at Dassault Falcon Jet. He helped develop the model’s maintenance program by attending numerous meetings in France as the OEM was building the aircraft, and he learned about the 7X from the ground up.

Because of his involvement on several Falcon model-specific MRBs (Maintenance Review Boards) during the past 20-plus years, Ron also personally knew the DOM (Director of Maintenance) in Geneva who maintained this 7X. He went to Geneva and was able to examine the logbooks and maintenance records, and was satisfied the maintenance performed on the aircraft was completed properly since the aircraft had just had a large inspection completed a few months earlier.

Ron evaluated the aircraft and assured the team and their client that it was definitely worth it to hang in there; this 7X was indeed a solid, well-maintained aircraft despite its difficult circumstances. Not only that, the price was millions below market value, and that deal could not be found elsewhere.

“Ron’s assurances gave our client the confidence to stick with the deal and let us continue with the difficult negotiations,” says Aircraft Sales Representative Dave Coleman. “And that’s our goal—instilling peace of mind for our clients with regard to their investment, despite how difficult things get on our end.”

The Result

Although most of the transactions the Aircraft Sales & Acquisitions team engage in for our clients take a fraction of the time this one did, numerous complications made this anything but a straight-forward sale.

Ron’s assessment of the aircraft confirmed for our client that his interest was not misplaced. He gave the nod to Duncan Aviation to continue negotiating on his behalf. As a result, he’s now flying in the aircraft of his dreams.

The experience of our aircraft sales team, their understanding of the nuances of international transactions, and their positive assessment of the chances of a successful outcome led our client to determine he was not wasting time. As a result, he’s flying the aircraft he has always desired at a price the naysayers proclaimed was unobtainable.

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Duncan Aviation’s Aircraft Sales and Acquisitions team has been in the business of helping clients locate, buy and sell aircraft for more than 60 years. The eight-member team is backed by Duncan Aviation’s full aircraft service resources, which include 2,150 technical and aviation experts at service centers and offices located worldwide. These knowledgeable experts are known to be especially good at resolving seemingly impossible challenges.

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