Cessna breaks with established policy to allow brokers to market its pre-owned aircraft
In a break with long-established practice, Cessna Aircraft has reached an agreement with five independent aircraft brokers for the sale of five used Citation Xs from its own inventory.
According to Dane Jenning, Cessna director of used aircraft, “Combining the relationships and resources of Cessna and these affiliated dealers brings a powerful marketing force to the Citation X resale marketplace.” The dealers are Avpro, Annapolis, Md.; Guardian Jet, Guilford, Conn.; J. Mesinger Corp., Boulder, Colo.; Jetcraft Corp., Durham, N.C.; and Wings Aviation International, Franklin Lakes, N.J.
Joe Carfagna, v-p of Wings Aviation, expressed satisfaction at being part of the agreement, noting that “it takes some creativity and willingness to think outside the box to sell airplanes these days.”
The agreement is structured so that all five aircraft are listed with Cessna and all five brokers, although Cessna retains ownership and “unilateral authority to determine acceptable conditions of a prospective sale,” said Jenning. All five airplanes were accepted by Cessna as trade-in on new Citation Xs.
Asked if such a partnership might be extended to include other types of Citation, he replied, “This cooperative agreement is a very specific effort with specific dealers and specific aircraft. It allows Cessna’s pre-owned sales segment to cast a wider net into the prospective Citation X market.”
While last month’s inventory of used Citation Xs is unchanged from October last year at 14 aircraft, it is up considerably from that of four used Citation Xs on the market in 2000 and two in 1999. Current pricing for pre-owned Citation Xs ranges from the $11.5 million range to the $16 million range.
That, said one broker, “is down considerably from past years.” Industry observers are speculating that the inventory will continue to grow, forcing prices to drop further. A new Citation X has a list price of about $19 million.
Cessna delivered the 200th Citation X on October 14 this year, and fractional-ownership provider NetJets currently has 60 in service.