FAQ
Frequently Asked Questions
Where should I look to buy an airplane?
There are several ways to pursue aircraft acquisition. You can either choose an aircraft sales company or an aircraft brokerage. You can also find multiple aircraft for sale on the internet as well. Of course, Skylar Aviation can guarantee to assist you on your decision to purchase a new or used aircraft.
Should I seek professional help for aircraft acquisition?
If you are not an expert at aviation including its law & finance, you will certainly benefit from professional help.
With an expanding inventory of new & used aircraft in the market, it is even more important to dig deep into the details of the aircraft and be sure its the best value. There are several things to consider when you are looking for a good used aircraft.
Aircraft acquisition involves a swirl of details on many fronts. Hence to ensure a relatively turbulence free process with lower exposure to additional costs and downtime we are here to provide you a supporting hand.
How Much Does It Cost to Own a Private Jet?
When considering the cost of a private jet, we have to include several factors. First are the upfront costs, which include the cost of purchase price, insurance, and financing costs. However this would only be the annual cost of owning a private jet. You will also need to include ongoing costs such as fuel, maintenance and personnel, financing, hangar, flying time, insurance, upgrades, and other costs. Your costs will also depend on your maintenance schedule, repairs, and flying style. For example, fast steep ascents burn more fuel than less aggressive maneuvering.
Considering all factors, the annual operational costs for owning a private jet can range from $1 million to $5 million. Larger expensive jets might have considerably higher annual ownership costs.
Which is better? Lease a private jet or own it outright
Outright ownership allows you to take depreciation deductions for your business jet. You can upgrade or sell the aircraft whenever you like. With leasing, there is no long term financial commitment. Leasing aircraft is less expensive than purchasing, but you might lock yourself in with a long term lease.
What is an aircraft data acquisition system?
It’s a system that collects multitude of digital & analog signals from an aircraft avionic system and sensors which then forwards the signals to a flight data recorder.
Modern data acquisition technology are being used for monitoring aircraft all over the world which uses real-time communication and advanced networks.
What is a sale leaseback?
A sale leaseback is when you sell an asset and then immediately lease it back from the purchaser. It is a method of raising cash in return for future payments on the lease. A sale leaseback might make sense when you need cash but don’t want to give up use of the asset.
What is a Letter of Intent (loi)
LOI is a set of key terms of a private aircraft deal, which outlines the transaction path from beginning to closing. It precedes the signing of a binding Aircraft Sale and Purchase Agreement. An LOI generally contains binding terms, and the parties need to be clear to identify the points that they intend to be binding. The LOI should cover the following key terms:
- Deciding the purchase price.
- Describing the aircraft specification, engines, equipment and documents that will transfer to the buyer (i.e., make, model, serial numbers, configuration, and maintenance status).
- Decides the amount the buyer needs to deposit, who will hold it, the conditions for its return or forfeiture, and who pays the escrow agent’s fee.
- Assumed physical condition that the aircraft must be in at the time of delivery, along with clear title and no liens.
- Establishing timelines for future actions, such as inspection and closing.
- Decide who pays for aircraft transportation costs.
- Agree that the buyer has the exclusive right to purchase the aircraft during this time and that the seller will otherwise take the aircraft off the market.
- Agree to negotiate and enter into a an Aircraft Sale and Purchase Agreement within a short time frame.
What is an Aircraft Purchase Agreement?
It is a document that specifies the purchase and sale of an aircraft. Both parties, the buyer and seller must mutually execute the document. Typically, the buyer offers the seller an LOI. The seller then signs the LOI once all terms are mutually agreed upon. Subsequent to the execution of the LOI, the parties progress to the more formal, detailed and much lengthier document, the aircraft purchase agreement.
After the execution of the APA, the buyer pays the purchase price to the seller, who then transfers title to the buyer. Businesses and private individuals use APAs to purchase new and used aircraft. Typically, lawyers on both sides will structure and review the APA. An orderly process helps smooth the overall transaction.