Jorge López
Cofounder and Sales Director
View from the Top

Private Planes Can Be Effective Business Tools

Fri, 12/01/2017 - 09:23

Q: How does Aeroélica convince clients of the benefits of acquiring an aircraft rather than individual flights?
A: Business aviation benefits the economy worldwide in several ways. It connects companies and individuals more efficiently, reducing travel time to areas with limited aviation infrastructure and gives businessmen more schedule flexibility. While business aircraft are described as luxury products, they provide many benefits as business tools. As an example, a stop in Mexico City is required to be able to reach many locations within the country on commercial airlines, which is inefficient and time-consuming. The flexibility acquired with a business aircraft cannot be matched by commercial aviation. This is one of the main arguments that customer’s value during the decision-making process.
Q: How does Aeroélica differentiate itself from other companies?
A: Aeroélica was founded with a main goal in mind: to offer an effective and dependable platform to sell, acquire or trade business aircraft. We are the Mexican TBM authorized dealer for Daher, a French company with a century of experience in aerospace innovation that manufactures the fastest and most exciting single-engine turboprop, the TBM 930.
One of our company’s most important differentiators is a personalized and customized service. We bring key topics to the table to support our customer’s decision on whether or not they should buy or sell a business aircraft. If our customer is acquiring an aircraft the main points to consider are: the aircraft’s annual utilization, most frequent routes, number of passengers on board, operating budget, acquisition budget and personal preferences. If our customer is selling an aircraft we provide real-time market insight and our sales strategy focuses on maximizing value and minimizing aircraft time on the market. In a few words, we offer our customers a trustworthy company.
Q: Considering the high value of these products, how challenging is it to finance their acquisition in Mexico?
A: Most transactions are often funded by a financial institution. There are not many alternatives in Mexico as aircraft are considered to be high-risk assets. The market is constantly looking for sources to fund this multimillion-dollar transaction, which most of the time ends up being financed by US financial institutions due to their competitive advantages. We believe this fact represent a business opportunity for Mexican financial institutions .
Q: What new projects is Aeroélica developing and how do these benefit clients?
A: Our expansion plan will be to promote and increase the sales of the new TBM, as the aircraft has a lot of potential in our region. Sales have been increasing annually, with very positive feedback from current owners. Pre-owned aircraft sales is another priority because we aim to increase our sales at a sustainable rate without compromising our level of service. The TBM co-ownership program is being developed in Mexico by Aeroelica as one of our goals for 2017. Under the co-ownership model, a couple of users have access to a new aircraft at a fraction of the cost by making an equal investment and sharing the responsibility of owning and operating the aircraft. We are planning to continue focusing on our core line of business as TBM dealers, pre-owned aircraft sales and acquisitions and our co-ownership program as our strategy to consolidate and expand our market share.
Q: What were Aeroélica’s results for 2016 and what is your forecast for 2017?
A: 2016 was good in terms of sales as we sold two new TBM 930s and six pre-owned aircraft, very similar numbers to 2015. On the other hand, the first half of 2017 was challenging because we faced higher exchange rates and a difficult foreign political environment, which created uncertainty. In 2017, our goal is to achieve the same results as 2016.