Things To Consider When Buying A Business Aircraft
Buying a business aircraft requires a substantial financial commitment and extensive research. It’s important to understand that not all planes are created equal: each has its unique features and characteristics that could make or break your flying experience. There may be a list of complex factors that made you add up to one conclusion: buying a business aircraft.
- Your growing business establishments and commitments, where you require safe and secure travel, which must be flexible, efficient and cost-effective.
- Improved work efficiency of travellers enables better productivity than wasting hours in airports.
- Enables employees to make international travel quite easier
- You love to enjoy the excitement of private flying.
You need to do proper planning and consider many factors when you think about buying a business aircraft. Whether it be used or new, you should always understand these seven things and should seek professional advice before arriving at a decision.
1. Assess your budget
When you consider buying a business aircraft, the first and foremost consideration taken into account is the budget. It not only includes the actual cost of the aircraft or helicopter, but also includes management, refurbishment and regular maintenance costs. The list may also include the storage fee, fluctuating fuel costs, and the operating costs of the aircraft. You need to consider the labour costs as well. Labour accounts for 35% of the total operating costs.
2. Hire professionals for the acquisition process
As buying a business aircraft requires a lot of money and effort, thorough research should be done before making a decision. Any mistake made will end up in vain. Aircraft acquisition is a complicated process, and it will always be ideal to hire a professional by your side. Here is where Airlorm Aviation comes for your help. Our experienced professionals will explain the highly volatile global aircraft market and the pricing details. We ensure you don’t buy your aircraft above the current market value. Our dedicated staff will provide insight into the financing, which helps you get rid of troubles and headaches.
Airlorm Aviation helps you find the right solution for your desire to buy an aircraft. Buying a business aircraft in today’s competitive world is a daunting task. Insurance, maintenance, financing and management will not be easy to handle for an amateur. We make sure you do not fall into pits and keep you happy. We deliver you the correct aircraft within a short span of time.
3. Do not skip the pre-buy inspection
Your aircraft may be pre-owned. The seller will price the aircraft. To make the deal quick, there may be temptations to skip the pre-inspection process. However, a thorough pre-buy inspection of the aircraft helps the potential buyers to understand the cost of inheriting. It will also help you understand the type of aircraft you need, based on the destination and travel frequency, along with passengers per flight.
4. Understanding finance options
There are several financing options available, and a comprehensive financial analysis is crucial. The first question that arises is whether to pay in cash, enter a lease or loan, and the terms and conditions associated. Regarding financing, one should discuss the ownership cycle, purchase terms, maintenance plans, potential charter revenue, tax implications, and residual values. Seek our expert advice from Airlorm Aviation to ensure you understand the facts correctly and make an accurate decision.
Another important aspect of financing is tax planning. Comprehensive state tax and federal planning help buyers minimise their tax exposure significantly. Delivering an aircraft in a tax-friendly jurisdiction is the best option for minimising the tax, which is applicable for states that limit aircraft taxes, have no tax on the sale or resale of aircraft and have laws that favour the operation of aircraft.
You need not have to deal with financial burdens that might occur from unforeseen accidents. Hence, it is always best to talk to an expert insurance agent and discuss your coverage limits.
5. Control your emotions
When choosing the right aircraft for you, get away from all the potential emotional urges which will affect your purchase. In fact, your business aircraft is not merely a costly aircraft, but it’s an asset, a better transportation option, and it makes you unique from others. When you make emotional attachments to buying business aircraft, it will be painful that you might lose your money on maintenance, repairing or repainting, and your aircraft will always be in repair.
6. Investigate aircraft management company
Leave your business aircraft in the right hands. Place your aircraft on the operating certificate of an aircraft management company. Airlorm Aviation can help you with it!
(a) Taking safety as the first priority, an inspection should be carried out on the company’s incident, accident and violation history.
(b) Make sure there is a safety management system.
© involve the company in the aircraft acquisition process.
(d) ensure there are third-party auditors to support the safety system.
(e) Permission to manage your business aircraft, meeting the aviation regulations.
(f) offer charter options for aircraft, allowing you to cut ownership costs.
7. Selecting the right aircraft
In today’s market, buying a business aircraft is not a simpler task. Companies have a wide variety of options from which you need to choose. You must find the best aircraft based on the market cost, performance, comfort, size and maintenance operations. You should also consider whether to buy a pre-owned one or buy through cash or lease. Select the ideal business aircraft -one which has the highest operational range and consistency that you need!
Conclusion
Buying a business aircraft is tough, and it requires significant planning. It is wise to hire professionals who can assist you in this process. Working with Airlorm Aviation will make your aircraft purchase easy and straight. Contact us, and let’s talk. Connect with our business aircraft experts and discuss your current market stand and your future trajectory.