Turbulence-free transactions

Mark Rogers, President, and founder of Lone Mountain Aircraft, talks to Anthony Harrington about the best ways of achieving “turbulence-free” transactions for clients

Mark Rogers founded Lone Mountain Aircraft Sales (LMA) in 2008, becoming one of the partners with Cirrus Aircraft as a pre-owned resale partner. Since the launch of LMA, the business has grown to a staff of 40 with regional offices in Dayton, Las Vegas, and Atlanta. LMA has become the largest reseller of Cirrus Aircraft and has expanded into several other popular general aviation aircraft, including turboprops and light jets.

In 2012, Mark led the opening of the Lone Mountain Aircraft Maintenance facility at the Warren County Airport near Dayton. This new capability complements the sales endeavors with airframe and power plant maintenance including overhauls of the Cirrus Airframe Parachute system.

In 2014 Mark further expanded the business into aircraft finance, offering in-house aircraft financing solutions for clients of LMA.

AH: Building a successful operation in business aviation is always a huge undertaking. How did you get started, Mark?

MR: I founded the company in 2008, just as the global financial crisis began to really set in. That might not seem like a very good time to have taken such a step. However, in hindsight, it was probably a lot better than, say, starting it two years earlier. If I’d done that, I would most likely have gone into the downturn carrying a lot of inventory and that might not have been survivable for a new company.

At the time, we had the opportunity to partner with Lone Mountain Aviation Maintenance in Nevada. I had been working with a reputable broker and dealer in Indiana, so I had a strong sales record behind me. The Nevada operation was interested in adding a sales dimension to their operation, so the partnership worked well for both of us, despite the harsh market conditions.

Most importantly, the Nevada operation was an authorized Cirrus maintenance center, so that gave me a good way forward to pursue additional Cirrus sales.

AH: What was the arrangement between yourself and the Nevada operation?

MR: I had always had a majority interest in the sales business, and I bought out my partner in 2011. However, we continue to have a very good working relationship with the maintenance shop in Nevada, and we still have a sales office located there.

AH: So, what is the company structure now?

MR: Our headquarters is in South West Ohio, and we also have an aircraft maintenance facility there that I started in 2012. In addition, we have sales representatives based in London, Connecticut, Knoxville, Detroit, Ohio, Lincoln, Chicago, and Las Vegas. Today, we are one of the leading resellers of high-performance owner-flown aircraft, and we are the highest volume Cirrus reseller.  

AH: You sell a wide range of turboprop and light jet aircraft. What percentage of what you do comes down to Cirrus sales?

MR: Cirrus represents about 60% of our unit volume, and half of our sales team comes from a Cirrus background. We also have extensive experience in the owner-flown turbines, which would include the Meridian, TBM, Mustangs, CJs, and Phenoms, along with the new Cirrus Vision Jet. 

Our sales team now includes former OEM representatives from Learjet, Embraer, TBM, Piper, and others, so naturally, our sales have expanded from our Cirrus origins to include other popular models.  

AH: How has the Coronavirus, or COV-19, impacted your set-up?

MR: So far, from a revenue perspective, its impact on sales has not been as bad as I was anticipating. Our sales, as of the start of April through to end-April, have been running at half the normal rate, but the good thing is that there are still sales happening. Our refinancing opportunities are active with the low rate environment, and our aircraft management and maintenance businesses have not been adversely impacted.

When this all began at the beginning of March, I was telling myself that I might as well take the rest of March and all of April off on holiday. But surprisingly, while we have taken extensive measures to protect our staff and to enable home working, the impact has not been as devastating as we were expecting.

Of course, it is now much more challenging to deliver airplanes since the shelter in place restrictions were issued. It is also next to impossible to get buyers out to see the aircraft they want to buy. However, in Ohio, we heard that the shelter-in-place restrictions were due to be lifted on 3 May, with a further easing on 12 May. We are looking in this State at an incremental and measured return. Each state, however, is going to be different in how it emerges from shelter-in-place.

AH: What is your feeling about NBAA? Will it happen or won’t it happen?

MR: I recently received a notice from a major manufacturer saying that they have already decided that they will not be there and have informed their client base accordingly. I would be disappointed if it was cancelled. It is something I always look forward to.

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