Case Study 1
Hawkeye Aircraft was approached by a client that thought they needed to purchase an aircraft. The client had been using a fractional provider for some of their flying and based on conversations with various people thought they were ready to own.
Our initial conversations revealed several possible aircraft that the client had considered. The client had done good research and listed the pros and cons of each choice.
We suggested that they fill out the first couple of sections of our proprietary evaluation form to summarize what they want to accomplish and the missions with expected passengers that would use the aircraft. We reviewed the data with our client and advised that we felt a combination of a card provider or fractional share was the best fit. Their trips were going to result in about 100 hours of usage a year. They did not see this changing unless their business changed.
They ended up with a card program, as it provided the most flexibility in aircraft size for their one and two passenger short trips. We advised that to validate the estimates of their usage were accurate, to use the card without any consideration of using the hours up, but just like they had a plane sitting in the hangar.
The client is now three years into their card and the estimated usage has been averaging around 100 hours per year. They are very happy they have a good private travel option and without the capital and expense they would have incurred with their own aircraft.
Case Study 2
Hawkeye Aircraft was hired to assist in the purchase of a long range business jet with over 6,000NM of range. In this particular case, the client already had a mission parameter that they wanted to fulfill. They just wanted help with the purchase.
At the time, there were only three aircraft that met the criteria, and only two that were within the $50M budget. We made arrangements to demonstrate both aircraft and entered discussions on pricing and availability.
We analyzed data to come up with realistic operating cost projections and residual value projections. We utilized our residual value analysis model to project various possible outcomes. The client agreed that purchase price was only one part of the package and that for a fair comparison, that the life cycle costs and the residual value calculations should be part of determining the value proposition.
We determined the total value proposition and then could compare price points that would represent a good deal for each model. We do this to give as much of a black and white accounting of the deal so that the client knows what any emotional component is worth in real dollars.
We utilized our 23 point interior evaluation summary to help compare aircraft interiors when they are seen days apart and also for review post demonstrating the aircraft. The interior evaluation also helps to bring attention to details on how each client will utilize the amenities and comfort of the aircraft they are reviewing.
The first aircraft demonstration went very well, in fact so well, that the client said he was 80% sure that would be the plane and why don’t we cancel the other aircraft showing. I advised that part of what he hired me for was to help them take an unbiased look at the two best options and I felt we should still look at the second aircraft. After a brief discussion, the client agreed.
We flew the second aircraft and it became very clear that the client liked the cabin size and comfort better on this aircraft. Several items on the 23 point evaluation tool highlighted key interior likes and dislikes that were important to their enjoyment of the aircraft. We were able to negotiate an inclusive package of price, operating cost guarantees and at a purchase price that removed any advantage of residual value projections.
The client ended up with a better choice for his needs and is pleased with the results.
CASE STUDY 3
Hawkeye Aircraft was engaged to buy a particular make and model of aircraft. Internally they had decided to stay within the brand name of their current plane.
The process involved reviewing new versus used options including life cycle costs, residual value and cost of money projections. During this process, a group within the executive ranks decided that for full transparency, they should expand the aircraft search to other makes and models.
We completed an extensive review of past missions and specific performance parameters that the new aircraft would need to be able to meet. In addition, we also reviewed the items that passengers wanted in the next aircraft. One major passenger desire that became a requirement was to be able to fly with 10 people and not utilize a couch.
We used our evaluation matrix in our aircraft evaluation package to compare the various options. This included operating costs, mission performance, runway performance and cabin size and comfort to name a few. The best other three options all did some items well. One model met the requirements however at a significant increase in cost of operations. The only one that did all of the items they wanted was the original make and model. Our evaluation validated that the initial choice was the best for their operation.
Our acquisition summary report details the selection process and supports the decision to purchase a particular make and model for any future executives or board members.