Q1
Does having the latest connectivity make it easier to sell your jet?
David Crick, DavAir Group
Some of the more desirable connectivity has a queue for installation and if it is already included in an aircraft, the new owner can fly away and not have to think about it. The market for aircraft connectivity goes through phases – a little like when ADS-B requirements were coming into play in recent years. In the early phase, having Mode S capability was new and those aircraft that had it were sold for a premium due to its inclusion. As more and more aircraft were compliant, the tide turned and those that had it were not necessarily attracting a premium while those that didn’t have it were penalised with lower prices. Cabin connectivity appears to be similar and at this point in its evolution – those that have the latest connectivity sell more quickly for a better price.
You’ll see a better price than for an equivalent aircraft without the latest connectivity and it will transact more quickly than the equivalent aircraft without it. For those that need updating due to connectivity that is becoming redundant, the current market appears to equate the cost of updating the connectivity in a similar manner to imminent mandatory maintenance that might be due.
“You’ll see a better price than for an equivalent aircraft without the latest connectivity.”
Mike McCracken, Hawkeye Aircraft
Yes. It is a dollar-for-dollar add for value for domestic US buyers. I do not know of any buyers at this time that do not want to be connected. And they want the latest and fastest on the market. Gogo L-5 is good for domestic US; however until their low orbit system is working, international buyers do not pay for having L-5. One driver is the new buyer does not have the downtime to install the system which makes it more desirable.
Janine Iannarelli, Par Avion
An integral part of flying private is enjoying the flexibility and freedom associated with it. This includes state-of-the-art connectivity and wifi capability. The market does have expectations that vary a bit based on make and model, so it definitely is an enhancement to one's selling efforts.
If you own a long-range, large-cabin aircraft without wifi and at least email capability, it will most likely hurt resale value. No one travelling wants to be without connectivity anymore.
Brendan Lodge, Tangmere Aircraft
High-speed connectivity is important for many buyers but the question is not a simple one. Firstly, the platforms that have been available historically all have limitations both regionally and in terms of cost. As an example, the established Gogo system is very successful in North America but is not compatible in Europe as it is reliant on a ground-based communication systems.
In Europe, Ka-band and Ku-band provide effective coverage using the Satcom satellite capability but both the installation cost and the end user cost is high. Additionally access to the Satcom system is currently required for CPDLC and FANS 1/A.
However, there are new systems being launched, notably Gogo Galileo which will utilise the Galileo low altitude satellite network globally and will compete with the Starlink network which is only just becoming an option.
The higher demand for connectivity is on longer range aircraft and with a retrofit easily exceeding $1,000,000 it will be higher value aircraft that will be upgraded, which will then sell more readily at the moment. Some of the cost of the installation will wash through into value but not all and the dynamic nature of the market will drive obsolescence of the existing systems very quickly.
“Higher demand for connectivity is on longer range aircraft and with a retrofit easily exceeding $1,000,000 it will be higher value aircraft that will be upgraded.”
Jay Mesinger, Mesinger Jets
There is no more popular question asked by brokers or prospects about a plane being considered to buy than the discussion about connectivity. The wrong answer will take a plane out of consideration immediately. Not only is there a cost associated with installation but also down time and time into service for the new buyer. So yes, the connectivity question seems as important as pedigree and maintenance history.
On valuations, a buyer will look at all investments needed to bring the plane into compliance for their use. The plane’s value will typically be reduced if it doesn't have the desired connectivity system.
Denesz Thiyagarajan, IBA
Buyers are increasingly prioritising jets equipped with the latest technologies, and aircraft without these systems risk slower sales and potentially reduced value. As appraisers, while maintenance history has traditionally been a primary focus, it is becoming increasingly important to also emphasise the aircraft’s technology and systems moving forward. As technology continues to evolve, ensuring that the aircraft is equipped with the latest systems will be crucial in securing its value and appeal in the future market, as buyers become more tech-savvy.
Does having the latest connectivity make it easier to sell your jet?
Brokers and appraisers explain whether you get a better price.
