Author: Sam

If you’re considering selling your aircraft and wondering which upgrades are worth investing in, it might be a good time to take a hard look at what makes certain upgrades good ideas and which upgrades make the most sense. The answer is not simple.

Unless you plan to own your aircraft for some time before selling, making significant upgrades doesn’t necessarily equal a return on your investment. What if you’re five to 10 years from selling? Upgrading might make more sense in that case, simply because you’ll have time to enjoy those upgrades. This time frame helps offset upgrade costs.

Keep in mind that — while it may be necessary to upgrade some things to help differentiate your aircraft from others on the market — in most cases, the upgrades won’t impact the sale price enough for you to recoup your investment. The following are some of the many upgrades you may consider.

• Carpet — Ideally, you should replace your carpeting every two years, as potential buyers will notice it immediately and may be put off if it’s worn or dirty.
• Seating — Reupholstering is a quick way to improve the look of the interior and should be done if the coverings are extremely worn or outdated.
• Soundproofing — This is an expensive upgrade that’s unlikely to increase the value of the jet enough to recover the cost. Do you plan on using the plane for a few more years? It may be worth considering based on your specific needs.
• Entertainment systems — Entertainment systems are not necessary, and the advent of streaming video has made these expensive systems less important.
• Satellite or broadband connectivity — This is one of the most expensive upgrades — and one of the most expected. Consider adding connectivity a few years before selling.
• 110-volt power outlets — Nearly all new aircraft have 110-volt outlets and nearly all buyers expect them on preowned jets. They’re not cheap but could be a critical selling point.
• Avionics —­ Avionics upgrades almost never recoup investments. However, if you plan to keep the plane for a while, upgrade based on your needs.
• Exterior — If your exterior is in bad shape, a fresh coat of paint may mean the difference between a sale and being unable to sell. However, don’t expect to recoup the entirety of the investment; instead, recognize that it will likely speed up your sale.

Like homes, prepare jets before you sell. If you haven’t upgraded the interior in a while, it may be required to sell the aircraft. But some of the more expensive upgrades don’t make sense when preparing to sell a plane — unless you’re forward-thinking and don’t plan to sell until a few years in the future.

When purchasing a new aircraft, it’s easy to get caught up in the excitement and fail to execute a few minor but important details such as Federal Aviation Administration (FAA) registration. Just as you need to register your automobile, you must also register your aircraft. The good news is that it’s simple and inexpensive.

With a clean title in hand, registration is a three-step process.

1. Submit Aircraft Registration Form AC 8050-1;
2. provide evidence of ownership, usually in the form of a bill of sale; and
3. pay the FAA a $5 registration fee.

You must prove you’re a U.S. citizen or authorized resident. When completing the registration form, you must fill it out completely and accurately. Use a street address instead of a post office box, and don’t forget to print your name below your signature at the bottom of the form. Once complete, you’ll keep the pink copy of the form in your aircraft at all times until FAA personnel send you the official registration. You’ll be able to use this document for 90 days — but only for flights within the U.S.

If, during the registration process, the FAA finds that the title isn’t clean — for example, if there’s an unexpected lien on the aircraft — you’ll have to straighten it out before you can officially register. The best way to avoid this type of surprise is to perform a title search before the final purchase.

You must renew your aircraft every three years and submit your renewal five months before your registration expires. You should receive notification in the mail that your renewal is due about six months before your registration expires.

Finally, according to the Business Jet Traveler article, you may be required to register your aircraft with the International Registry, which could also be financially beneficial. This is a more complicated process, though you can do it entirely online. A knowledgeable aviation attorney can help you with international registration, and with her or his help, you should be able to complete it within a matter of days.

Registering your aircraft in the U.S. isn’t a difficult process, but it is required. Be sure you know whether you or your vendor is responsible for the registration, and then complete it as soon as you complete the sale. By handling registration in a timely manner, you won’t face large fines — or worse: a penalty for flying an unregistered aircraft.

The decision to purchase a jet for business or personal use is not one you should make lightly. Although used aircraft prices make them attractive, there are a few things to take into consideration before making a final decision.

Starting with the basics, simply buying an aircraft because your competition has one is not a solid reason to make a purchase. A better strategy is to determine what your actual needs are and build from there. For some, usage and flight types could be the main factors between purchasing a jet and taking advantage of charter flights or fractional ownership plans.

About 90% of private jets are used for business to efficiently transport executives. If you’re considering a business jet purchase, a good place to start is with an operational assessment, which should include

• annual number of flight hours. If the aircraft will be in the air 200 hours or more each year, private ownership makes more sense than shared or fractional ownership plans.
• how you’ll use the aircraft, including trip destinations, lengths, and types. If executives frequently make multi-day trips or often fly round trip, private ownership is more reasonable than shared ownership or chartering in most cases. However, one-way trips with empty return flights are less cost-effective.
• the frequency at which you require urgent flights. Most charter flights and fractional ownership agreements require a several-hour notice period before a flight can take off. With fractional agreements, other owners also share the aircraft — so it’ll be unavailable at times. If decision-makers frequently initiate flights with little advance warning, private ownership is your best and most convenient option.
• total cost of ownership. What happens when the aircraft is sitting unused for a length of time? Offering charter services during downtime can offset some ownership costs but will reduce aircraft availability. If that’s unacceptable, will you still be able to afford all aircraft costs, from fuel and maintenance to parking and crew fees?

Full ownership is an attractive option for anyone who wants complete control over travel options. If you’re frequently in the air and the aircraft will be well-used, it makes sense to explore full ownership options. With complete ownership, you’ll always know there’s an available flight when you need one.