State sells remaining surplus aircraft for over $2.5 million; $3.5 million net for taxpayers
SPRINGFIELD –-(ENEWSPF)–August 25, 2015. The State of Illinois successfully sold the State’s five remaining surplus aircraft for more than $2.5 million as part of continued efforts to reduce the State’s aircraft fleet, the administration of Governor Bruce Rauner announced today.
“The successful sale of the state’s surplus aircraft is some much needed good news for taxpayers,” Governor Bruce Rauner said. “In addition to earning $2.5 million on the sale of the aircraft, the State of Illinois achieved significant savings by avoiding more than $1 million in State resources on upcoming inspections and repairs for unneeded aircraft.”
The sale comes after three previous attempts by the Department of Central Management Services to sell the aircraft failed to sell all the aircraft. In April of 2014, nine of the State of Illinois’ 21 aircraft were ordered to be sold. Following three consecutive auctions, spanning six months and two weeks, 5 of the State’s 9 surplus aircraft remained to be sold, including the 3 most expensive aircraft.
After consulting with internal and external aviation experts to generate ideas on the best approach to selling the aircraft, several new ideas emerged: better promotion of any future aircraft auctions, factor in costs associated with upcoming repair and inspection requirements, and re-evaluate pricing recommendations. Upcoming inspections and repairs, estimated at more than $1 million, weighed into the new recommendations.
With a new sales plan in place, the aircraft sale was launched on July 2, 2015, and ran through August 3, 2015. When the auction closed, each of the five aircraft received multiple bids, including the following high bids: 2000 Beechcraft King Air for $1,785,050.00; 1991 Sikorsky Helicopter for $515,161.00; 1979 Cessna C337H for $56,000.00; 1986 Cessna C182R for $54,161.00; and the 1985 Cessna C421C for $181,140.00. All highest bidders were requested to submit a best and final offer. As a result the bid proposal, the 1979 Cessna C337H increased by nearly $1,000. After the auction closed, the high bid for the 2000 Beechcraft King Air was withdrawn, and the aircraft was awarded to the next highest bidder for $1,700,000.00. CMS benchmarked all bid proposals against industry standard pricing references to ensure maximized returns.
The new sales plan helped maximize the return on investment for Illinois taxpayers, pushing total revenues from the sales of the aircraft to more than 90% of the estimated average value, for a total value of more than $2.5 million.