When it comes to aircraft transactions, 2024 has been slower overall. Per last month’s article, I wasn’t sure if we’d see the usual year-end madness. Fast forward, and our title activity has clearly picked up—more than I expected.
We often discuss how election years cause a dip in activity, but that isn’t always true. According to this Corporate Jet Investor article, “During the past eight presidential elections, the total number of transactions (for both pre-owned and new deliveries) have only declined twice.”Â
Aircraft transactions don’t disappear—they just delay. With only six weeks left in the year, here are some helpful tips from an Escrow Agent to make year-end closings smoother.
Preparing for Year-End Aircraft Transactions
If you’re a broker or dealer with listings, work with your preferred title company now to order title work. Deals move quickly this time of year, and buyers or sellers often want to close unexpectedly fast. Ordering title work early ensures you address any potential issues before closing.
For clients financing their aircraft, complete International Registry enrollments early. The year-end activity surge means processing these applications can take longer. Some proactive clients enroll on the International Registry well before finding an aircraft. While it may seem minor, having this step done provides peace of mind once a deal progresses.
Once a plane is under contract, your Escrow Agent will prioritize based on the closing date you provide. We aim to stay proactive, but year-end timelines make this challenging. If you open a transaction without confirming a closing date, we likely won’t prioritize your deal until the date is set. Providing a clear closing date helps us ensure everything aligns.
For teams with Closing Coordinators or Transaction Managers, salespeople need to keep them updated. These coordinators are the communication link to your Escrow Agent. If they lack information, they can’t keep us informed, which slows the process.
I love the year-end rush, but it presents challenges. Unexpected deals will surface, and existing deal details may shift by the hour. Buyers or sellers can back out, and financing may fall through.
There are many factors we cannot control. However, we must focus on controlling what we can. With that mindset, I’m excited about the activity increase and hope everyone ends the year strong.
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