Buy Private PlanePrivate aircraft purchase
However, if you can streamline it - and it is a wise move for many business people - we have compiled a fundamental guideline for purchasing an airplane. Airplanes are (relatively) inexpensive! Operators and purchasing advisors such as Integral Aviation Solutions and TWC Aviation Inc. can co-ordinate the sale and then have your plane on board - for a small surcharge.
"I' m always dealing with a billionaire who just wants to do the business for themselves," says Capt. Ivan Klugman, President of Integral Aviation Solutions. Chartering airplanes for certain journeys is simple. One private plane is likely to be costing billions, so aerospace industry analysts suggest that 350 to 400 flying hrs per year usually justify full possession of an airplane, according to General Aviation Services, a private plane vendor.
GAS determines you are aware of the needs such as insurances, fuels, catering facilities and pilot. Operators will meet these needs for approximately $100,000 to $200,000 per year, based on the jets sizes and use. And keep in mind that repair and service can keep your plane on the floor; spending can be unforeseeable ($50,000 for part); and you could be losing a lot of cash by purchasing and low sales, remarks Andrew Richmond, TWC Aviation Services chairman.
When you are an officer - especially with a firm rescued from Washington - purchasing or using a private plane can cause problems in outreach. "It' s secure for well-managed businesses, and it always has been," says Mike Nichols of the National Business Aviation Association, "how private jets are seen today.
"And if ever there was a period when corporations had to be aggressively towards face-to-face meeting, it was in this business. "Private jet is available in three sizes: small, middle, and large. GAS says lightweight aircraft ($3 million to $8 million) can carry 5 to 8 people, with a reach of about 2,000 mile.
Medium business aircraft ($9 million to $16 million) can accommodate up to 9 passangers from 2,000 to 3,000 mile. Big business aircraft ($17 million to $45 million) can transport 12 passangers more than 4,000 mile. Sluggish economic conditions mean that there are more used aircraft on the aircraft markets, and ordering a new aircraft can take several years.
GAS emphasizes that there are government air rules to landing at many U.S. airfields, and retrofitting a private plane to meet the rules requires several hundred thousand dollar and month of mending. The TWC Aviation: As a rule, new aircraft have a five-year tip-to-tail warrenty. Business jet traveler notes: "Maybe your executive representative is directly engaged in the aircraft discovery or he will direct you to one or more agents.
One way or another, the manager is accountable for making you feel lucky in the long run, so it's in their interest to make sure you land on the right plane when you find one. "To do it alone - and under the assumption that you're not purchasing a new Learjet or Gulfstream, visit the major sites of the Air Show, such as Controller.com or aerotrader.com.
"The majority of purchasers were already passengers on most corporate planes and know which cabin they like," says Captain Klugman. According to Traveller, "It's much more about the dollar than security, although good inspection can and does reveal security problems in the air, especially with older and less well-maintained planes.
" Dave Cribbin, chief executive officer of TailWind Capital Group, the airline's jet financing company, says standardized credit periods are 3 and 5 years, with credit amortisations of 15-20 years for newer planes and 10-12 years for vintage early 1980s designs. Mr Cribbin says that Merrill Lynch, CIT and Center Capital Corp. have all ceased to provide airline credit.
"Last year, airplanes were like houses," says Cribbin. You need lawyers who are familiar with air traffic control laws, insurances and the regulations of the skies. "It' s not like purchasing a motor home when you go to a garage and choose a make and colour that you like," says Nichols of the National Business aviation Association.
" You have many ways to drop your plane with your jaws. When you have a pile down on the exchange, you can always renovate an old plane. Significant facelift costs range from about $750,000 to up to $2 million and takes several month, says Business Jet Traveler. The WSJ finds that such schemes are not certificated for civil use, so try to gain an option if necessary.
As soon as you have your own plane, the real ploy is to get it in the sky - and keep it there. Aircraft fleet managers do a lot: selecting the flight crews and pilot; supervising aircraft upkeep; bookkeeping (fuel, insurances, parts, payment of flight crews, etc.); coordinating your flight ("Good sir, can we fly to Paris in 20 minutes?"); and warehousing (usually a common hangar at a nearby airport).
Managers can even help you rent the aircraft when you're not using it, so it offers a slightly higher ROI.