By Vincent Wigmans
To buy a private jet is a long and daunting process that comes with great responsibility. Before this unusual purchase, it is important to have a clear understanding of what you really want and why you choose this private jet over another. This is why many buyers hire aircraft brokers, who specialize in the sale and acquisition of any aircraft incl. private jets. Are you ready to change the way you travel? To do that, you should ask yourself before several questions. In order to make this decision less stressful, Fly Aeolus Aircraft Sales & Acquisitions explains the top 10 questions you should ask yourself in order to select the best private jet for your mission!
1. What is the budget?
How much does it really cost to buy a private jet? The purchase of a private jet is above all determined by your desires and your needs. However, costs will be added to your transaction as well (ferry, registration changes, import, VAT etc.) and these will also determine your final budget needed. Next to this you also need to consider the regular cost for maintenance, insurance, fuel costs, parking and landing fees etc. before you make a purchase and a yearly budget.
So, should you opt for a new or used private jet? The purchase of a new private jet is by nature much more expensive than a second-hand private jet. But in some cases, a used private jet can cost you more in the long run. Interestingly, most of our customers inquire about used aircraft, which for the most part are not really the original ones anymore by the many upgrades they received. They must comply with strict regulations, standards and be updated regularly which will cost additional money in the end.
In our blog “buying your first aircraft” we will give a selection of cost involved in an aircraft sale / transaction.
2. How many pax does the aircraft need to carry and do you fly always with these amounts of pax?
Whether your private jet is used for business travel or for private missions, the number of passengers you plan to fly with on a daily or weekly basis will determine the size of aircraft you need. If you fly once a year with your full team of 15 people and the rest of the year with only 4 persons, then it is best to buy a smaller aircraft and rent a larger one when you need it. It would be a waste of money if you fly with too many empty seats on every flight.
3. Will the aircraft be used for business or private operations?
As we noticed previously, determining your travel needs is essential before buying a private jet: as with the number of passengers it is important to know if you only use it for business flights with customers or for your family. This will not only determine the size and type of private jet you will buy but also the VAT/TAX implications.
4. Do you have requirements for the interior?
Do you need a toilet, bathroom, entertainment system, galley, stand-up cabin, bed, etc? Again, it will all depend on why you want to buy a private jet. For business trips, will your private jet be used to organize meetings? If so, how much interior space will you need to comfortably perform these interactions? For leisure trips, will your private jet be used to welcome your family? If so, how much interior space will you need to comfortably perform these trips?
5. What range does the aircraft need to fly?
Do you want to travel around the world aboard your private jet? Going to New York for a meeting with your investors or new clients? Or do you just want to reach nearby and only European destinations? Go to your second home in the south of France for example? The range of the aircraft will again depend on your travel needs and will determine the size and type of your next private jet.
6. What are the most common airports you will fly too?
With a private jet, the best solution is to land on small airports with a terminal dedicated to private jets which is closest to your final destination. This will save you travel time but it is very important to check if the runway is large enough for your private jet. It would be a pity if you buy a private jet that can’t land at your preferred airport.
7. Will you fly only in Europe or also intercontinental?
If most of your trips are taking place in Europe and a trip to the United States takes place once or twice a year then select an aircraft only for your European flights. It would be a waste of money to pay a higher hourly rate for a larger aircraft on all your short European flights.
8. Do you want to make a business case around this aircraft? (AOC)
An Air Operator Certificate (AOC) is the approval granted by a National Aviation Authority (NAA) to an aircraft operator to enable them to operate aircraft for commercial purposes. If you don’t fly much then it can be an interesting option to work with an operator who can sell your overflow in hours that you don’t use. This will generate a return of investment for you. More information on how to get a return of investment on an aircraft can be found in our blog “Getting an ROI on your aircraft“.
9. What will be the preferred country of registration?
Each aircraft must be properly registered. Security should be at the top of your list: make sure the registry has the highest regulatory standards and a certain reputation.
An aircraft can only have one record in a jurisdiction. It is therefore important to make the right choice. For example, an offshore register can also guarantee you a certain discretion and certain tax advantages. Some small states like Bermuda and the Cayman Islands have long attracted planes based around the world. New rivals include Aruba, San Marino, Guernsey, Malta and the Isle of Man.
10. How many times will you fly yearly?
Again, it will all depend on your needs, your lifestyle, and your flying habits. Determining the purpose of your private jet is one of the first things to do before purchasing it. If you fly only 50 hours per year, keep on renting a private jet, if you fly around 200 hours a year then it can be an attractive option to become an owner of a private jet.
Do you want to buy a private jet?
Once these above questions have been considered and answered, you should seek expert advice on the type of aircraft that will best meet your needs. The best way to do this is of course to hire an aircraft broker!
If you are planning to buy a private jet, contact us at email@example.com. You can also call us on +31 (0)15 820 0999.