Global AVX, a digital auction platform for transparent aircraft transactions, has begun preparations for its first online aircraft auction on 10 December 2020. Dedicated to supporting international aircraft sales and two years in the making, it is the brainchild of corporate lawyer Robert Bourke.
The concept was conceived to enable bankruptcy professionals to adequately address their disposal obligations and duties by ensuring the distressed aviation assets were receiving a fair market price. The platform addresses this critical need by establishing an independent market-based price through a global auction process. Combined with Global AVX’s industry-first full transparency report, bankruptcy professionals can now deliver complete accountability to all of their transaction stakeholders
Global AVX says the online mechanism supports aircraft transactions between motivated aircraft brokers, as well as direct sellers, and international purchasers in a transparent, accountable and trustworthy online environment. With travel restrictions limiting physical sales negotiations Global AVX notes an increased interest in high-value deals being conducted online and is now acting as a market driver stimulating aircraft sales internationally.
The technology aims to complement and enhance traditional broker activity and is already attracting professionals seeking new and innovative ways to promote, market and sell aircraft assets to a market which has seen a spike in business and corporate aircraft ownership interest as a result of the pandemic.
Calgary, Alberta and Scottsdale, Ariz.-based Hopkinson Aircraft Sales is the debut broker looking to maximize the opportunity presented by Global AVX, listing a 1997 Cessna Citation Ultra aircraft for auction.
To eliminate time wasters, Global AVX says they vet all potential bidders, while looking to also deal with qualified acquisition consultants on behalf of proposed purchasers. This pre-qualification is further enhanced by anti-money laundering interrogation, and a validation of adequate funding. Each potential purchaser is also required to place a certain percentage of the minimum reserve price in an escrow account prior to becoming a qualified bidder.
Bidders and/or their acquisition consultants, are then given access to the Global AVX secure data rooms where they are encouraged to examine the aircraft specifications and relevant documentation including airframe logbooks, flight manuals, interior manuals, maintenance tags, and technical information about the engines which are supplied by the broker. Buyers remain anonymous, the auction is automated to ensure fair bidding, and lasts for a period of two days to ensure all genuine global bidders have the opportunity to participate. The sale must complete within two months of the auction taking place.
“We want brokers, owners or operators to see this as a viable medium which extends their global capabilities for aircraft transaction activity. We are focused on helping them achieve the deal no matter where the aircraft is parked. Our aim is to seamlessly integrate into the business aviation community with our innovative new technology platform,” explains global sales director, Stephen Kelly. “Our process also eliminates the tire-kickers and ensures the aircraft for sale are qualified by professional data reports. In essence we are a Software as a Service platform enabling aviation transactions between willing buyers and sellers at prices determined by peer to peer interaction.”