Now is a good time to review next year’s strategic plan. Is an aircraft part of that vision? Companies don’t purchase jets every day; this transaction takes time and planning. Make sure you have a plan in place to get the process rolling.
A good starting place is the development of a “mission profile.” This helps you determine and define how your company will use an aircraft, which in turn will help you invest in the right aircraft for your needs. You and your buying team should clearly and objectively answer several specific questions:
- How will your company use the aircraft?
- Who will fly?
- How many passengers per trip?
- What range do you need?
- How often will the aircraft be used?
You can then use your answers to create your company’s aircraft mission profile.
With this profile in hand, and with the help of an experienced aircraft professional, you can begin to assess the features of the different aircraft on the market. Narrow your shopping list of potential aircraft by matching manufacturer offerings with the performance characteristics outlined in your mission profile. Then, you can focus on the available makes and models that meet your business needs. Honing in on the best aircraft for your company dovetails into budgeting.
To build a realistic budget, you need to factor in considerations such as acquisition, operational, and residual values. When budgeting for an aircraft purchase, we recommend at least a five-year projection. As your budget develops, keep in mind the tax consequences and financing of your purchase.
Aircraft acquisition can be a complex process. The best way to ensure your company makes the right purchase is to have a clear mission profile and to build a good team that knows your needs and budget. Before you buy, consult your tax and financing people, as well as a knowledgeable and experienced aircraft professional. This way, your transaction will be smooth and successful, and your company will be hitting the skies in no time!