October 21, 2021 | Business Commercial
By Butch Lang, Vice President of Sales
Purchasing or selling an aircraft can seem like a daunting task. It’s not as simple as adding an item to a shopping list, but with our experienced team, we can make it much easier. We guide you step-by-step through the aircraft acquisition process. Here’s what to expect from start to finish.
What’s the Mission?
The first step of the aircraft acquisition process is simple – assess what you need the aircraft to do. After first making contact, we find out some simple information. Where is the aircraft going to be based? What are the likely destinations? How many people are you usually going to take?
Are we talking about long-range aircraft that needs to go from Dallas to Geneva or a short-trip workhorse that can deliver small teams to a few stops in one day, with maximum flexibility? The answers will determine the search direction. A Gulfstream G550 may be what a buyer thinks they want, but their answers might actually point them to the versatility of a Beechcraft King Air.
Of course, budget is a major consideration. First-time buyers might not realize what other expenses are going to be required for the long-term maintenance and upkeep of the aircraft. How the aircraft will be managed and crewing are items to consider, as well. We work to consider all of those factors to produce an accurate budget – and prioritize the amenities that a buyer will really need, versus what they might think they want.
Research and Valuation
Our team is located around the globe and has access to a worldwide network of connections. Finding the right aircraft to meet a buyer’s criteria is something we’re highly experienced at. We’ll present suitable options to a buyer and advise them on how age and operation costs should influence their purchase decision. Two aircraft might seem similar, but one can have a higher acquisition cost upfront because of modifications and refurbishments. Some may have higher operation costs.
Analyzing market data and trends, we’ll predict what might be a better investment for a buyer. Experience is key to getting an aircraft that not only fits the needs of a buyer in the sky but for their bottom line.
Inspecting, Contracting and Filing
Next comes a submitted letter of intent to purchase to the seller, which includes a deposit and escrow that we guide you through. Of course, pre-purchase inspections are very important here and working with JetHQ enlists our decades of experience to discover crucial information about the aircraft. Both physically and through its records, we have people who make sure you know exactly what you’re getting before the transaction moves forward. We’ll work with the seller to remedy discovered items or figure out alternate ways to continue.
With our in-house contracts team, we are able to draft purchase agreements and work out the rest of the paperwork to set up delivery. We’ll work with your aviation or business attorneys to finish the proceedings.
Finally, we’ll guide you through transferring the registration, or if the aircraft transaction takes place between countries, the export/import process, which involves working with each civil authority to secure a Certificate of Airworthiness (CoA). Navigating through complex international regulations is where a buyer really needs an experienced guide.
Selling and Trading
We also work with current owners looking to sell their aircraft or replace one aircraft with another. The steps work similarly to the aircraft acquisition process, but somewhat in reverse.
One advantage sellers discover in working with us is our ability to find qualified buyers. By accurately pricing an aircraft, we ensure maximum interest for the aircraft to secure the most value for that asset. We also have the resources and financial capabilities to accept aircraft into our inventory, which facilitates transactions. An owner doesn’t have to worry about how their aircraft will sell before starting the process of acquiring their next one.
Start the Process
Acquiring or selling an aircraft can be a bit of a learning curve for people. Let our expertise guide you through the aircraft acquisition process to secure the right outcome.