Talented IT entrepreneur Viktor Martynov is developing an innovative solution for buying and selling aircraft.
The private aviation market has faced a number of challenges which have led to an increasing need for a specialized marketplace. A modern IT project for buying and selling aircraft is an online platform where sellers and buyers can meet and conduct transactions. This tool will be useful for all market participants: buyers of new formations who are putting forward their requirements, sellers in working with verified requests, providers of aircraft deal financing services, and other aviation companies.
Currently, the market for buying and selling aircraft is flooded with questionable and random requests, which repel professional players, creating a false impression of demand. In such conditions, a potential buyer must confirm the seriousness of their intentions, go through various verification procedures before they are taken seriously. At the stage of a preliminary request, this can discourage and even lead to a loss of interest from a potential buyer.
On the other hand, it is possible to understand the sellers of aviation equipment: they spend a huge amount of time processing non-existent requests or requests from buyers who have been searching for the best offer on the market for years and turn to dozens of companies but never actually make a purchase. Creating a marketplace will obviously lead to a reduction in such requests.
The consolidation of specialized market players on one online platform will help potential aircraft buyers get the necessary information quickly and in one place online, without wasting time and being distracted by calls to various companies in search of the best offer, paperwork and other formalities.
In particular, the IT platform should not only allow users to select the desired aircraft, but also enable them to clarify the cost of financing, calculate the schedule of monthly payments, choose an insurance policy, find a suitable aircraft storage location, and select a company for technical maintenance. If a user is genuinely interested, they can send a request to several selected companies, receive a response in their personal account, and compare the offers without unnecessary calls in search of the best deal.
This need has recently increased due to the growing interest in aviation from a new generation of buyers. In a society where the desire for instant gratification is prevalent, details are needed here and now, and the absence of information online is disappointing for many. Existing players and online platforms are coordinated by conservative people of the old school who do not take the younger generation seriously. However, these are people who have earned their wealth through modern technologies: IT entrepreneurs, startup founders, cryptocurrency investors, and others.
In addition to the traditional buyers, such as large company directors, top-level managers from small and medium-sized businesses have also entered the market, driven by various circumstances and newly available financial resources. This is a completely different generation of entrepreneurs, consisting of IT startups, investors, and educational projects. Over the past two years, more than half of the buyers of aviation assets among the platform’s developers have been people under the age of 35. After experiencing the benefits, comfort, and safety of using aircraft for personal and business purposes, they have chosen affordable and reliable models.
The project will be handled by a team of players who are well-known IT specialists in the aviation industry, including aircraft sellers, former representatives of official dealerships and manufacturers, who have worked on the international market and world-renowned projects. It should be noted that this company has a team of experienced and successful salespeople, as well as a department of IT specialists who have implemented successful startups. These are different people, not the same person.
The team of specialists, who have strong connections in the IT sphere and experience in aircraft buying and selling deals in Europe and the Middle East, led by the founder and ideologist Victor Martynov, will create a specialized IT platform. The main mission and task is to make the aviation market accessible and open to modern buyers. The marketplace will really change the aviation industry as a whole and improve the lives of tens of thousands of buyers, popularizing aviation worldwide. In the process of implementation, a selection of aircraft based on user preferences using artificial intelligence is planned, as well as the use of blockchain technology for closing deals.
In addition to the quotes found in open sources, first-time buyers need professional consultation and support. Currently, market participants, on average, charge about 5-7% for such services based on the cost of the aircraft. For example, when purchasing an Airbus Helicopters H125 for £2.0 million, a broker’s commission can reach £150,000. They do, of course, perform significant work. However, there is no need to resort to the services of professional brokers when purchasing a small Piper M350 airplane or Robinson R44 helicopter – this can be done independently. Nevertheless, the opportunity to attract a free consultant with experience in similar deals or to ask questions will significantly reduce possible risks. Such services can be obtained on the platform for free, which is why it is not worth overpaying for them.
Market expansion for sellers: On the other hand, service providers may be interested in receiving requests from pre-verified buyers. This will significantly save their time. In addition, creating a modern IT platform will help promote their goods and services to the platform audience, promote company employees as experts, develop market positioning, and increase brand awareness. The project will also allow private sellers, aviation schools, training centers, and other companies to promote their additional services. All of these opportunities will help companies (market participants) stand out from competitors and increase buyer loyalty.
Amidst the growing demand for fuel, spare parts, and aircraft maintenance, suppliers are forced to adjust and find ways to reduce costs. The platform, in particular, will allow specialized companies to more efficiently use their resources: reduce marketing and buyer search costs, and ultimately reduce the cost of aircraft for end consumers by 3-5%.
According to statistics, there are about 3,500 private planes and 1,500 private helicopters registered in the UK, approximately 10,000 aircraft in Europe, and around 220,000 civilian aircraft in the United States. The combined potential of the English-speaking marketplace has great potential.
Having a selection of aircraft on a single platform will attract more buyers and facilitate their choice due to the wide range of options available on the platform. This will reduce the time spent searching for an aircraft and organizing a transaction for the seller. The global IT platform will increase the likelihood that the buyer will find the exact aircraft they need and make a profitable purchase faster. Despite the presence of a physical office, the search for aircraft will be available without any geographical restrictions in the UK, US, South America, and the Middle East.
The development team is considering London as their home office, as the UK has great potential and one of the most advanced civil aviation industries in the world. The convenient geographic location and time zone will facilitate communication in different parts of the world. Additionally, the UK is known for its diverse economy, technically advanced specialists, and a capital ecosystem – making it an ideal place for entrepreneurs and investors. The UK has great potential and prospects for aviation development in the region.
Victor Martynov, an experienced player in the IT and aviation business, has gathered and united the team of the best specialists, each a leader in their own field. By investing his time and energy in such ambitious projects, along with other team members (who come from various countries including Cyprus, Switzerland, Germany, and Kazakhstan), he dreams of becoming a part of history, bringing IT innovations and modern technologies to the aviation industry. The launch of the basic version of the marketplace is planned for the summer of 2023. Over time, a full-fledged ecosystem will be created, including a mobile application that allows sellers to instantly publish ads and communicate with buyers via chat. The team plans to take the leading positions in the online aviation market by 2028.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Emerald Journal journalist was involved in the writing and production of this article.