Guide to Buying or Selling a Business or Private Jet

Guide to Buying or Selling a Business or Private Jet

You crunched the numbers. You possess the business and financial justification. The time has come to buy a jet for your growing company or personal leisure needs. You have a budget in mind, but where do you start?

Find a Brokerage 

Before you can find the right aircraft, you need to find the right brokerage. A team of experienced professional aircraft brokers can guide you through the acquisition process and help you make a wise investment in your company’s or your personal future. Ask around. Your friends and colleagues may be able to make a recommendation based on their past experiences. If you don’t have a personal recommendation, ask for references as you consider your options. Reputable brokerages will be happy to provide you with several references who can speak to their customer service, industry knowledge and experience.  Make sure your aircraft broker adheres to the highest standards—look for a broker that is a member of IADA International Aircraft Dealers Association.

Ultimately, you want to work with someone you trust. You want a brokerage that empowers you to make an informed decision that will serve you and your business well. At Omni Aircraft Sales, we are proud IADA Members and draw on our nearly 40 years of experience to help our clients understand acquisition and disposition value and long-term ownership benefits.  We supply expert real-time data so that our clients can make the best decision for their aviation future and exit strategy.

Assess Your Needs 

It’s tempting to buy the biggest jet your budget will allow, but it may not be the right choice in the long run. A large jet, for example, may limit access to some airports and burn considerable amounts of fuel. If just a couple of people will need to travel to remote locations, it makes more sense to purchase a smaller business jet that will conserve fuel and have access to smaller airports. On the other hand, if you are transporting large groups of employees, it may make sense to purchase a larger aircraft that can also double as a mobile meeting and workspace. In today’s market, it may make more sense to purchase two aircraft rather than one.

It is helpful to define what you’d like your aircraft to do. However, if you are a first-time buyer, it might be difficult to know exactly what you will need. You can start by identifying how your current travel options are holding you back. Perhaps commercial airlines don’t have direct access to one of your frequent destinations. If you currently charter, you could consider what flights or last-minute trips you might have taken if you owned your own jet. This is where an expert broker like Omni Aircraft Sales comes in. Their expert team will implement their proven aircraft brokering processes to assist you in finding the right jet for your mission profile. So don’t sweat the small stuff—OAS can show you the way to a life of luxurious private aviation.  Ahh, the freedom of private jet ownership.

Private charter is a good intermediate step if you’ve never owned a business jet. This option will allow you to accurately determine your needs before you make the large investment of aircraft acquisition. At Omni Aircraft Sales, we guide our clients through this process with a structured needs assessment.

We confirm your:

• target aircraft budget
• desired travel range
• expected passenger load
• travel frequency plans

and the conveniences you would like on board such as wifi, rest area, lavatory and in-flight services (flight attendant, amount of baggage space needed, etc.)

This information is used to estimate your annual fixed cost as well as your operating cost. Maintenance, fuel, insurance, a hangar lease, management services and crew salaries will all be considered in this cost analysis. Many of these line items can be deducted on your taxes, so it’s important to consider the tax implications of your choices.  Omni Aircraft Sales can not only broker your aircraft but is uniquely set up to handle all of your aviation needs, from aircraft purchase to flight department set up and management.

Narrow Your Aircraft Search

From your needs assessment, you can narrow your search and hone in on jets that meet your preferences and performance requirements. Your broker will leverage industry resources and connections to identify planes that meet your needs. At Omni Aircraft Sales, our team of brokers and analysts use a network of industry contacts, online multiple listing service searches as well as off-market resources to bring you the best planes on the market.

As you evaluate individual planes, there is a lot to consider. The interior of the plane largely comes down to personal preference, but other aspects of the jet will have financial ramifications. An older jet might appear to be a bargain but over time it could prove to be more costly as parts and systems need to be replaced. An airplane with multiple owners is not necessarily a bad thing, but it may have fallen into the hands of an owner who was not as facetious with maintenance.

You will also want to scrutinize an aircraft’s total flight time and cycles (takeoffs and landings). The condition of the engine, airframe, paint, avionics and other systems will also impact your decision.

There is a lot to think about and leaning on the expertise of an industry expert can help you determine which planes offer good long-term value and reliability.

Make an Offer 

Once you’ve found “the one,” it’s time to prepare an offer. Your broker will help determine optimum acquisition pricing and submit your formal offer. Typically, this also includes a soft escrow deposit. Your broker can also guide you through negotiations, inspections and closing process.

Inspections 

Inspections are perhaps the most critical portion of the acquisition process. Safety is of the utmost importance. With Omni, the aircraft will go through a rigorous evaluation. We will also recommend combining the pre-purchase inspection with other manufacturer-required inspections that are due in the near future to reduce upfront maintenance costs. During the pre-buy inspection all major repair items are covered at the seller’s expense. Our team also works to coordinate inspection schedules, scope of work and cost with the appropriate maintenance facility. Again, Omni Aircraft Sales is uniquely positioned with in-house qualified licensed and certified maintenance experts lead by Caleb Benner, Director of Maintenance. This gives you the upper hand when using Omni Aircraft Sales due to the ability to offer complete inspection oversight by licensed personnel. This is where deals are made, and money is saved. We believe it is your investment, your time and our commitment to you that makes the difference.

Aircraft Acceptance and Closing

After all discrepancies have been addressed, we are ready to proceed with the closing process. We coordinate all of the required FAA filings and required documentation associated with the aircraft purchase and transfer of ownership to prepare for closing. The closing statement is circulated and your funds are deposited into an escrow account for closing. An insurance binder is confirmed as the final step before closing.

Finally, it’s time to sign on the dotted line. At closing, we complete all paperwork, submit a Delivery Receipt Letter and coordinate logistics to bring the aircraft to you. At Omni, we also manage all engine and avionics program transfers along with any ownership/operations support services you choose to engage. Our aircraft management program offers services through Omni Air Transport  that can simplify your ownership responsibilities. We strategically manage your jet operations to optimize your investment and offset the cost of ownership to save you time and money.

Omni Aircraft Sales 

If you need to expedite your travel to support your growing business, a business jet offers unmatched efficiency, flexibility and privacy for you and your clients. Perhaps a new venture demands frequent trips to a remote location or perhaps you charter frequently and it’s time to take the next step to jet ownership.

Partnering with a trusted broker puts you in the pilot’s seat and provides you with the data you need to make an informed decision. Whether you are buying or selling a jet, Omni Aircraft Sales can help with our transparent process.

Learn more about the long-term benefits of aircraft ownership by calling us 24/7 at (918) 836-4050.