While buying your own aircraft is sometimes viewed as the ultimate extravagance, it is more commonly used as an efficiency tool to build your brand’s bottom line. Providing you with the freedom to fly on your own terms, a private aircraft can keep your team on top with improved efficiency and productivity.
Alongside the rest of the global economy, the business jet financing market is rapidly changing. While business aviation as a whole has experienced a boom in recent years, the ways that people are financing their jet purchase have continually shifted to favor customers and aircraft lessors as well.
Advantages of Private Aviation
While there is a perception that a private jet is a luxury good, the majority of business aircraft ownership comes from those business owners and companies who swear by utility and productivity.
Unlike their commercial counterparts, private jets can fly across a network of over 5,000 airports in the United States alone, compared to the 550 airports accessed by commercial airlines. Furthermore, private jet ownership offers you the ability to dictate your own travel itinerary, eliminating the need for lengthy layovers and hours wasted in crowded airport terminals while keeping your team equipped with everything they need to stay productive and efficient whether they’re on the ground or in the air.
Purchasing v. Private Jet Leasing
One of the biggest decisions you’ll face while financing your private aircraft is choosing whether to outright purchase your aircraft, or select an aviation leasing option. Depending on how you intend to use your private aircraft, and what your organization’s finances look like, both outright purchase and private jet leasing have their own set of advantages and disadvantages.
- Outright Purchasing:
One of the biggest advantages of an outright purchase of your private aircraft is the ability to resell the plane for a profit after a period of time, turning any potential profit into either immediate ROI for your organization or putting it towards your next aviation financing option.
If your company has the cash to purchase a plane in one payment, the extra tax benefits of outright ownership and full rights for usage or charter may be worth the large upfront cost over the long-term. However, many organizations will struggle with an upfront cost of anywhere from $3 million to $90 million, plus the annual operating fees to keep your jet in the air.
- Private Jet Leasing:
If your company would rather not allocate cash to an outright purchase, private jet leasing provides a few alternative options to fund your private aircraft acquisition. Aircraft leases come in two different kinds – operating and finance – providing prospective lessees with a variety of options to acquire a private jet.
However, these leases hold certain limitations that the lessee must abide by during the duration of their leasing period. No matter what leasing option you choose, make sure to read the fine print and understand the terms and conditions of your aircraft leasing agreement to avoid extra fees and charges later on.
Meet with an Experience Business Aviation Consultant
While many business leaders and owners are quick to dive into a DIY approach when it comes to financing a private aircraft, it’s always best to work closely alongside a professional jet capital management team and business aviation consultant throughout your purchasing or leasing process.
The value of a professional aircraft broker on your side is unquestionable, as these individuals can use their expertise and knowledge to help you choose the best aircraft for your specific mission, identify financing alternatives and determine the optimal aircraft management approach.
Have an experienced team on your side throughout the aviation financing process by reaching out to a representative from Global Jet Capital. Offering private jet leasing and lending solutions, our team of private aviation experts can help keep your company ahead with innovative financing options to meet your private aviation needs. Start on your way to finding the right financing solution for your aviation needs by contacting Global Jet Capital.