Provenance Fighter Sales Enjoying Brisk Business

Economic woe has become something of a buzzword in aviation these days. With non-existent airline profits, high fuel prices, and a weak US dollar it’s no surprise. Yet for some with a certain niche in the industry, business is booming.

The Los Angeles Times reported Monday morning on the story of Provenance Fighter Sales Inc. of Murrieta, CA as proof of a sound market in exotic warbird aircraft. Provenance buys and sells vintage warplanes focusing mainly on desirable fighter aircraft. According to Simon Brown, Vice President of the company, the market for collectible-condition World War II warbird aircraft has been appreciating by 20% a year.

In a market driven by scarcity, investors and collectors are enticed by aircraft like the WWII vintage Lockheed P-38 Lightning; of the 10,000 manufactured, only four survive in flying condition. Even the more common Vought F4U Corsair can sell for upwards of $4M where it could be found for less than $2M only a few years ago.

The trend has moved the high-end warbird market away from the doctors and airline pilots to a new breed of millionaire business owners like Microsoft co-founder Paul Allen and Texas oilman Rod Lewis.

Lewis made warbird industry news when he purchased the prized Lockheed P-38 Lightning "Glacier Girl" from Provenance for close to $7 Million. The aircraft, made famous by its recovery from under a Greenland ice cap and restoration to 1942 condition, had been purchased by Brown from the estate of the former owner in 2005 for an undisclosed amount. Though seven figure prices are common in fighter warbirds, the premium Lewis paid got the attention of many.

Some see the recent warbird collecting boom as evidence of nostalgic baby-boomers seeking to own a piece of their parents' wartime experience.

"The sons and daughters of the World War II generation have grown up," said Russ Strine, president and co-founder of the Mid-Atlantic Air Museum in Reading, PA. "Dad's gotten older or died, and this is a way to go back and feel close to him -- and pay homage to him."

If its World War II aircraft that have taken the fancy of this generation of collectors, prime examples can still be found in remote regions of the Pacific and European fronts. Unfortunately many of these aircraft are nothing but parts and require significant expense in recovering, exporting, and eventually restoring them.

Provenance shies away from the recovery business and prefers to deal in flyable or nearly flyable aircraft exclusively. As a guide, Provenance tries to target four specific aircraft, the North American P-51 Mustang, the Vought F4U Corsair, the Supermarine Spitfire, and the Curtiss P-40 Warhawk. Though each is fairly rare, there are enough examples of each flying to make them good buys for the company.

 "I like to focus on those four particular airplanes because I know there are always going to be multiple buyers," Brown said. "I can sell those all day long."

 Provenance also finds specializing in single engine fighters significantly broadens the range of potential buyers as well.

"If you have a hangar and a mechanic, you can handle a fighter," Brown said. "With a bomber, you need a whole crew. You can't really go out on a Saturday morning and fly it. It's more of an event."

Though the US market has shown some signs of weakening this year as the soft economy has convinced some collectors to back off a bit, overseas buyers, many from nations whose currencies are appreciating against the dollar, have stepped in according to Brown.

Provenance recently got a record price to an overseas buyer for a British Hawker Sea Fury that was listed at $1.4 million.

With a small workforce, the company has been well positioned to profit from the trend, selling 16 aircraft last year for $30 Million. Though profit information remains confidential, Brown said "we did quite well."

FMI: www.provenancefightersales.com