For more details, see the online flipbook for the August 2023 Edition of Business Air by Flying Magazine for the article written by Michael Wildes that starts on page 32 here.
Even if they cannot spell your name correctly (I am in good company as we failed miserably when I worked for Silicon Valley Bank to spell the iconic Judy MacDonald’s last name with the first “a” correctly in our annual report), it is always excellent to share your knowledge on an important topic.
I am grateful to my friend, Michael Wildes of Business Air by FLYING Magazine for including me in a thoughtful take on the state of the fractional market that highlighted the industry expertise of Ryan Waguespack and Michael Riegel DipM BSc MSc MBA in the article “In Knife’s Edge Flight” which starts on page 31: https://lnkd.in/gSHcRbzX
Many people know that this recovering aviation industry banker financed multiple fractional shares for my clients and established relationships with the parties involved at those providers. This is mission critical as a lender because you ultimately take a leap of faith as you are not permitted to perfect the bank’s interest in the aircraft engines nor is a bank able to ground an aircraft if a client has not paid their financing. Trust is paramount as such a relationship requires ALL parties to communicate on issues throughout the tenure of the fractional share contract.
For those who are concerned that I see the world through rose coloured glasses, know that one of my favorite sayings is that trust is earned. I also financed five (5) aircraft that were owned by a client and chartered to Avantair. We conducted our due diligence on the company and discussed our concerns multiple times. We also retained our records of the equipment pieces and were able to locate the blades, engines, and landing gear that were removed from the client’s aircraft and supported his efforts to remove the mechanics liens that were placed upon them (courtesy of Bob Kalsu and team) and return all five aircraft to airworthiness standards.
The sentiments expressed by my industry colleagues in this article highlight the need for curiosity and skepticism. Since founding Infinite Branches over two years ago, I conducted the due diligence on two of the fractional providers mentioned in this article as well as two more that were not mentioned. In all situations, I recommended that my clients look at alternative flight solutions given the information provided did not meet my standards for financial or operational security.
Undoubtedly, more information will continue to be shared about the recent round of high profile closures and I look forward to hearing the leadership of Amanda Applegate on these issues (she will be speaking at Corporate Jet Investor in November.)
As long as we look to move forward with the understanding how of we arrived here, our future as an industry will only strengthen.
Stay curious – and remember, it is “ShellEy”