MIAMI CONFERENCE REPORT
CJI Miami conference
There was plenty of optimism at our CJI Miami conference after President Trump again won The Whitehouse. Words: Alasdair Whyte
THE MOOD at our CJI Miami 2024 conference was bullish. But no one was getting carried away. This was clear during the broker panel on the first day of the event in The Sunshine State.
“I am really glad what we offer as an industry is a product that our customers love because I think it’s really hard to be an aircraft owner right now,” said Chris Ellis, co-founder and managing partner, Avpro.
“Some of the stuff I’ve seen owners have to go through, we have never witnessed before. It’s transactions where you are getting a four-month issue and half a million to a million dollars to fix it. That’s absurd. In the 37 years I’ve been in business, it has never been so bad,” said Ellis.
Everyone knows that the past few years have been good for many brokers. But they have been tough years. “It takes longer now to close a transaction than it ever has and we work harder than we ever have to get a transaction accomplished,” said Jay Mesinger, CEO and founder, Mesinger Jet Sales.
To understand the issues, Brian Proctor, president and CEO, Mente Group said you should take a felt bag like the ones that wrap Canadian Crown Royal whisky.
“Take a Crown Royal bag and then take a hundred pieces of wood and write on the back of them a hundred different reasons why a transaction will go wrong. Put them in the bag and shake it up,” he said. “On every deal, pull out 10 pieces and that is what we are dealing with now,” he said.
Avpro’s Ellis had a stark warning for OEMs. “It is a problem being an owner. This industry is way behind in servicing the owner.”
THE MOOD at our CJI Miami 2024 conference was bullish. But no one was getting carried away. This was clear during the broker panel on the first day of the event in The Sunshine State.
“I am really glad what we offer as an industry is a product that our customers love because I think it’s really hard to be an aircraft owner right now,” said Chris Ellis, co-founder and managing partner, Avpro.
“Some of the stuff I’ve seen owners have to go through, we have never witnessed before. It’s transactions where you are getting a four-month issue and half a million to a million dollars to fix it. That’s absurd. In the 37 years I’ve been in business, it has never been so bad,” said Ellis.
Everyone knows that the past few years have been good for many brokers. But they have been tough years. “It takes longer now to close a transaction than it ever has and we work harder than we ever have to get a transaction accomplished,” said Jay Mesinger, CEO and founder, Mesinger Jet Sales.
To understand the issues, Brian Proctor, president and CEO, Mente Group said you should take a felt bag like the ones that wrap Canadian Crown Royal whisky.
“Take a Crown Royal bag and then take a hundred pieces of wood and write on the back of them a hundred different reasons why a transaction will go wrong. Put them in the bag and shake it up,” he said. “On every deal, pull out 10 pieces and that is what we are dealing with now,” he said.
Avpro’s Ellis had a stark warning for OEMs. “It is a problem being an owner. This industry is way behind in servicing the owner.”
“My belief is that if they do what I think they can do in the years to come on a global scale, I will be disappointed if this wasn’t worth $2bn to $3bn on the low in five years’ time.”
Grant Johnson (above), co-founder of Benevolent Capital has high hopes for his recent investment in FlyHouse. Jack Lambert, FlyHouse’s CEO, and Suran Waijayawardana, chief aviation officer (below), react to this.
“My belief is that if they do what I think they can do in the years to come on a global scale, I will be disappointed if this wasn’t worth $2bn to $3bn on the low in five years’ time.”
Grant Johnson (left), co-founder of Benevolent Capital has high hopes for his recent investment in FlyHouse. Jack Lambert, FlyHouse’s CEO, and Suran Waijayawardana, chief aviation officer (right), react to this.
Money talks: Neil Book, JSSI (centre, below) discusses investment with Nick Sandler, Stonebriar Commercial Finance.
Money talks: Neil Book, JSSI (below) discusses investment with Nick Sandler, Stonebriar Commercial Finance.
Money talks: Neil Book, JSSI (left) discusses investment with Nick Sandler, Stonebriar Commercial Finance.
KENN RICCI, FLEXJET
Kenn Ricci identified what he sees as the industry’s assassins. These included OEMs’ outsourcing intellectual property (and the need for PMA parts), private equity, catering (they spend $43m a year), engine programmes, rising maintenance costs and FBO event charges.
“If you want to know why a turkey sandwich is $175, it’s because of private equity.”
Wheels Up one year on: George Mattson, CEO explains the company’s progress over the past 12 months.
“My dad always thought Bill Clinton was stealing all our money, so I became a tax lawyer.”
DAVID SHANNON, LEWIS BRISBOIS BISGAARD & SMITH
There was a lot of focus on IRS tax audits in 2024 but the panel believes that this is likely to dry up – especially if the first audits prove that there is not an issue. “I give my clients three pieces of advice: delay, delay, delay,” says David Hernandez, shareholder of Vedder Price. It is still not clear if bonus depreciation will return.
Table talk: There was plenty to digest after a full day’s conference programme.
Brent Wouters (Jet Linx Aviation) chats to an industry colleague.
Rock, paper, scissors... and the deal is made.
(L-R) Ja'yne Columna, Gabriel Lewinson, Elaina Wood and Paxton Bertrand from Florida Tech.
Sabrina Prieto, Vista (left) and Lynn Fischer.
Miami: Audience Votes
From yoga to cocktails
More than a day of networking opportunities offered delegates an opportunity to relax.
As well as the content, there was more than 26 hours of networking at our CJI Miami 2024 conference. This ranged from early morning yoga on the beach to Flightcap After Party hosted by Skyservice and Fontainebleau Aviation with the Dealmakers Dinner hosted by Airbus Corporate Jets, Caliber Aircraft Solutions, Honeywell, Jet Access and JETNET in between.
AIC sponsored the annual golf tournament with the winners being: Jack Gilchrist and Clay Ferguson from Gilchrist Aviation; Mark Pestal from Aeroangel; and Jeff Dunn from JA Mitsui Leasing Capital Corporation.
Friends enjoy a photocall.
Smile please: Kenneth Parzygnat, V1 Capital Aircraft Financing, Trisha Lakatos, ACASS) and Faith Hill.
