Selecting the Right Aircraft for Your Mission

March 1, 2016

Selecting the Right Aircraft for Your Mission

Without a doubt, owning an aircraft can be one of the most rewarding and joyful experiences of a lifetime. Until you’ve stepped aboard your own airplane – on your own schedule and under your own terms – there’s simply no way to describe the feeling of freedom and exhilaration that aviation offers. The process of selecting and buying the airplane, on the other hand, is not quite as exciting and can be down right tedious, to say the least. This article aims to help you understand your options when it comes to choosing the right airplane.

Some Initial Questions 

Unless you’re an industry professional (and often even then), choosing the right aircraft is more complicated than you might imagine but is absolutely critical. Statistically, most owners keep an aircraft only 3.5 years. This fact is due, in part, to poor initial selection. The cost to acquire an aircraft is not inconsequential. These costs include sales tax, property tax, broker fees, legal fees, tax advisors, pre-purchase maintenance expenses and the money and time to travel to view the prospective aircraft and relocating it to your home base. 

A reputable broker will help you determine what aircraft best suits your missions. To select an aircraft that meets your needs, you will need to know the answers to the following questions:

1. How far do you normally travel (the length of your typical mission)?
2. Where do you go and what is the size of the runway and altitude of the airports at your frequent destinations?
3. How large a cabin do you need (how many passengers)?
4. How fast do you need to go (should you buy a turboprop or jet)?
5. How much capital do you want to invest?
6. How much annual operating expense is acceptable (what's your budget)?
7. How do you intend to crew the aircraft (will you start a flight department, hire pilots, hire a management company)?
8. How often do you intend to use the aircraft?
9. How new of an aircraft do you want?
10. What are the tax implications of Aircraft ownership? New vs. Used?

Sometimes, answering these questions is straightforward, but sometimes it helps to talk with a professional to help determine your mission and how best to accomplish it. 

Hire an Experienced Aircraft Broker

The primary reason you should hire an experienced aircraft broker to assist with the acquisition is that the potential for a million-dollar mistake is very high. Compared to the relatively low cost for a broker, it is a practical necessity. 

As you delve into the process of finding the right airplane, you will quickly understand why you need an expert to help guide you through the acquisition process, from selecting the correct model of airplane with the appropriate equipment and component status, to what you should do to begin operations immediately post-acquisition. Just like you wouldn't have surgery without a doctor, you shouldn't buy an aircraft without a broker. Here are specific reasons you should hire a qualified aircraft broker:

Market Knowledge – The aircraft market is constantly changing, sometimes daily, due to dynamic market conditions and there is a limited number of aircraft of any particular type that are available for purchase. You need someone who is in the market everyday and can advise you about accurate market pricing. 

Experience – There is a standard process for aircraft acquisitions by professional aircraft brokers. Although that process can be shortened under the right circumstances, the process exists to protect both the buyer and the seller. Using the process wisely and being intimately familiar with such a process gives you a distinct advantage. This process is quite complicated and is discussed in detail later in this article.

Expertise – You also need a professional that will make sure the aircraft you select is right for your mission. A good broker has the information available to help you make accurate and educated comparisons between different aircraft. Once you have selected a particular model, you must sort through the myriad of differences between each aircraft. Some of the differences are obvious, such as paint and interior quality, but others are much more subtle to the non-professional, such as type of avionics, maintenance history, time on the airframe and various components. Again, experience can make a huge difference.

Broker Network – Chances are the aircraft you are interested in buying is represented by another broker. Like in real estate, the 80/20 rule applies. 20% of the brokers do 80% of the business. Generally those brokers know and work with each other on a regular basis. Knowledge of the particular broker selling the aircraft you're interested in, and how they handle their business can prove an important advantage during the buying/selling process.

As you can imagine, there is a wide variety of aircraft available today and the goal is to match one to your needs. Whether you’re interested in turboprops, Jets, or helicopters, there’s a lot of information to navigate. Here are some of the specifics V1 Management will discuss with you:

• Acquisition Costs
• Aircraft Maintenance
• Aircraft Refurbishment
• Operating Costs
• Insurance
• Tax Benefits of Aircraft Ownership

Summary

Owning an aircraft is a fantastic experience if you go into the purchase process in a professional, thoughtful and careful manner. This article only touches the surface of many issues involved in the selection and operation of an aircraft. It is critical to obtain guidance from professionals who stake their reputation and livelihood on the highest client satisfaction. 

As a service to all potential buyers and sellers, V1 Management is pleased to offer a chart summarizing the key characteristics of common jet, turboprop and helicopter aircraft, such as speed, range, cabin size and hourly costs. It can be found on our website at www.v1management.com.