For many, private jet ownership represents a dream worth chasing, a pinnacle in their career, a representation of their accomplishments. The freedom to travel where you want, when you want is unlike anything you’ll ever experience, and owning a private jet makes it a reality.
Purchasing a private jet is a substantial commitment, but for frequent flyers it often makes sense financially. It may be beneficial to buy a private aircraft if you:
Want to enjoy the comfort and privacy in your own aircraft
Have multi-city ventures or homes
Fly 100+ hours per year
Value total flexibility for your travel agenda
Owning a private jet or aircraft can give you a level of efficiency unmatched by any other travel method available. From travel timelines to crew selection, private aircraft ownership gives you control over every aspect of your luxury travel lifestyle.
Comparing aircraft options can be a daunting task that requires an in-depth understanding of aircraft performance, capabilities, and associated costs. Because the private aircraft market is constantly evolving, it is important to have an experienced agent on your side to help you navigate the process.
Here are a few things to think about when considering the purchase your own aircraft:
To accomplish your goals, knowing which aircraft to purchase is key to maximizing your investment.
Once you purchase an aircraft, you will have to determine the best operational structure. The FAA has specific regulations when an owner decides to offer his/her aircraft for private charter. This is called Part 135 operations and the aircraft must obtain the FAA’s certification before offering it for hire. This is a popular option for those who are looking to offset ownership costs and can often provide a return on their investment. If you prefer to use the aircraft for private use, then a Part 91 operation might be the best option. Under Part 91 regulations, you are not permitted to charter out your aircraft so there are less restrictions and more flexibility for your private use.
Management of your aircraft is a major responsibility and should not be taken lightly. When private aviation first started it was customary for the chief pilot to take on this role. Fast forward to today’s evolved methods with the establishment of management companies who watch over every hour flown and every dollar spent on your aircraft. An experienced management company can free up your pilot’s time to focus on flying safely rather than administrative tasks like accounting and other non-flight logistics.
Private ownership is not for everyone, but if you want to determine if it's right for you, Hangar 7 Aviation can help steer you in the right direction. Our expertise in aircraft ownership has been developed with over 20 years of hands on experience. Buying the right aircraft takes time to thoroughly understand all the options, and it's our passion to guide you through the process.
Fractional aircraft ownership is when multiple individuals, companies, or groups share the costs of purchasing, leasing, and operating an aircraft. Fractional owners pay a monthly maintenance fee, crew salaries, training, maintenance, hangar costs, and an hourly operating rate for each flight hour on top of the cost to own the fraction.
When signing up with larger fractional companies, the aircraft may be split into 16ths or even 32nds of a fractional share, meaning you may not have full control or say in when and how the aircraft is utilized. You’ll rarely fly the specific aircraft for which you hold fractional ownership. Instead, you are more likely to travel on identical planes that are included in the fractional fleet.
At Hangar 7 Aviation, we keep the fractions of one aircraft to a lower number, which helps to ensure that each owner is taken care of and properly accommodated. We also believe in making sure that all of the fractional owners connected to one aircraft match up in personality, lifestyle, schedules, and, most importantly, geographical location to help lower unnecessary relocation costs, inconveniences, and travel planning stress.
Here are some questions you should ask when considering a fractional ownership:
Owning a larger portion of the fraction will entitle you to more guarantees. With a smaller fraction, you may be placed on a waiting list.
As you can imagine, spring break, summer, and holidays drive a greater demand for aircraft use and not all travel requests can be accommodated. Transparency on your place in the cue could be a significant factor in your decision to pursue fractional ownership of an aircraft.
The ability to roll over unused flight hours from the previous year/month or access future flight hours may be available depending on your fractional ownership structure.
Leasing an aircraft can allow you to maintain cash flow while satisfying your travel needs. One major benefit of private jet leasing is that it gives you the flexibility to easily interchange an aircraft at the end of your lease term. This allows you to experience a variety of makes and models in order to determine which aircraft ultimately best fits your needs.
Private aircraft leasing is regulated by the FAA, meaning both the lessor and the lessee must comply with all FAA regulations to avoid possible penalties. The FAA has implemented Federal Aviation Regulations (FARs) for leasing classified as either a “dry lease” or a “wet lease”. These two main forms of leasing have specific advantages and disadvantages that you should discuss with your leasing agent.
Here are some questions to ask when considering the lease of an aircraft:
One aircraft can have multiple lease agreements so it is important to know if the aircraft will be exclusively yours or opened to others. The lease agreement should state if you are signing a “dry lease” or “wet lease”. Under a dry lease, the aircraft owner provides only the aircraft and no crew. If at least one crew member is provided in the lease arrangement, this becomes a wet lease as defined in the FARs.
There are leasing companies that can provide a wide range of terms. If a long term lease is what you need, be sure to specify that when shopping for a lease. However, you may just require a three month or thirty-day lease to support an upcoming project. In these particular cases, a short term lease may be just right for you.
Not all lease agreements are created equal. Identify which party is responsible for securing maintenance, preventive maintenance and required or recommended inspections is a must before you commit to lease.
If you are thinking about leasing an aircraft, Hangar 7 Aviation can help you understand your options and guide you towards the best fit. If you currently own an aircraft and would like to explore the possibility of leasing it to other flyers, get in touch with our team. We can help you find the right lessee for your aircraft.
Our knowledgeable team of aviation experts are constantly monitoring and evaluating the global aviation market for trends and opportunities. Our goal is to provide invaluable insights and extensive resources to inform our clients on how to purchase, sell, trade, lease, and upgrade your aircraft without missing opportunities. Knowing the value of your current jet or future aircraft is key when negotiating or appraising for a loan.
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