And How You Can Purchase One of Your Own
Owning a private jet is seen as glamorous, but
for many companies of any size, it’s a basic necessity. Even for some
individuals, flying in their own plane is the difference between a safe trip
and a frustrating journey.
Private jets are bought, sold, and borrowed in a variety of ways every day. The method you choose for securing private flights should be carefully selected by weighing all your options and the costs and benefits of each.
Here are a few ways people are buying and selling planes — or simply buying time in one.
By Individuals and Businesses
For people who fly frequently and businesses
who send executives to different distant locations for meetings, buying a
private jet proves to be both a money-saver and time-saver. Flying in a private
jet also increases safety and security, which is ideal for high-profile
travelers or for those handling confidential business transactions.
Shrewd business people know that before buying a private jet, they must complete a cost-benefit analysis to determine whether the plane is worth the investment. They seek some type of return on their investment (ROI) before looking at listings of aircraft for sale or working with a broker.
With most private jets in limited production, many people choose to buy used planes; they can be acquired more quickly and less expensively. Working with a dealer or broker for these transactions is a must. These private aviation industry experts guide their clients through each step of the jet purchasing process, which is much more like buying a house than buying a car — but even more complex.
For Charter Programs
Companies that charter jets often acquire a
variety of aircraft to build or expand their businesses. Aircraft chartering is
increasingly popular in our post-COVID world because it offers an opportunity
to fly to your destination with fewer people aboard the jet and for more
focused guest service from the flight crew.
Chartering an aircraft is more expensive than purchasing tickets on a traditional airline, but much cheaper than owning your own plane. Charters can be bought out by an individual or an organization, or you can buy the use of only a few seats on the jet.
It’s important for charters to have a variety of aircraft to choose from to accommodate travelers’ requests. And because private jets come in such a wide variety of sizes and with a range of features, having multiple to choose from to meet the needs of their customers is absolutely vital to running a successful charter business.
A jet share program, sometimes called a Jet Card, is where travelers purchase a certain number of flight hours or trips in advance through a subscription-type service. They then use their accumulated hours to book flights as needed.
Like a charter flight, jet share flyers reserve the seats they need on a plane going to and from their origin and destinations. Jet card subscriptions are cheaper than owning a jet, and can be comparable with chartering, depending on how often one flies.
Fractional Ownership Programs
Still cheaper than purchasing a private jet outright, a fractional ownership program allows you to share ownership of a jet with another company or individual. Fractional owners must coordinate the use of the jet with their co-owners, and often fractional ownership is for a set period of time only — almost like a lease.
Because you’re sharing the costs of owning, operating, and maintaining a jet with someone else, you can expect to pay — you guessed it — a fraction of the bills associated with keeping an aircraft.
Unlike outright jet ownership, you don’t get any money back when your ownership period ends.
How to Buy Your Own Private Jet
If you’ve determined that it’s in your company’s best financial interest to purchase a private business jet, then your first step should always be contacting an aircraft broker or dealer. You’ll want to work with one who upholds the highest ethical standards and has good connections within the private aviation industry.
Your broker or dealer will help you find aircraft for sale, usually through verified online listings and from their industry contacts. At each step of the way, your broker will guide you through, so your purchase process goes smoothly.
Just as when you buy a home, jet buying requires a written offer, escrow account, inspections, title and lien research, and insurance. Most buyers don’t handle this process alone, and industry experts recommend that you don’t attempt it. It’s important to have someone on your side who will work in your best interests before you pay quite a substantial sum of money to own your own plane.
Perhaps full ownership of a business jet isn’t for you. With so many other alternatives to jet ownership, it’s important to be certain that you’re making the right decision before you begin searching for a jet for sale.
Ultimately, the decision is yours; listen to the input of the financial experts on your team to make an informed choice about jet ownership.