Corporate jet ownership: from idea to realization

With the emergence of new markets and the globalization of many economic activities, it has become increasingly important and much easier for corporations and individuals worldwide to utilize private business aircraft as a safe and efficient means of transportation. The Middle East is no exception, with business aviation in this region expected to grow by 15 to 20 percent every year.

In a rapidly changing corporate environment, current and potential business aircraft owners can expect many challenges that will require a reputable aviation support services supplier, regardless of where they sit in the business aviation cycle.

Charter/lease: getting your feet wet
As no significant investment is required, private jet chartering is a good starting point for becoming familiar with business aviation. It is a flexible option offering access to a wide variety of aircraft that can be quickly adapted to meet your changing needs (size, range, speed).

In cases where frequent travel is anticipated on a mid- to long-term time frame, leasing an interim lift aircraft is more cost-effective and offers unlimited flexibility and freedom. If provided as a complete turnkey service, including all flight operations management, it becomes a no-hassle experience for the client.

The interim lift solution is attracting more interest every year because it answers challenges faced by many individuals in the business aviation cycle. Prospective buyers evaluating the acquisition of a private jet, new owners waiting for aircraft delivery, and owners with an aircraft undergoing maintenance can all benefit greatly from a turnkey interim lift program customized to their needs.

Acquisition: reaching for new heights
The acquisition of a private jet is a complex process that requires guidance from experienced professionals. It is important to seek out a reputable broker or firm with good credentials, strong references and a global network of contacts.

The choice between buying new or used is affected by many factors, but availability is the most influential of all. Today’s orders of new aircraft from major manufacturers typically have a 2011 delivery date, which widely opens the market for refurbished jets. Used aircraft are in high demand as well, and professional expertise is invaluable in seeking out and negotiating the acquisition of the right aircraft.

The buying process itself requires expertise, a vast network of contacts, and a lot of discretion. The financing of the acquisition, base of operation, travel destinations, passenger load, and speed and range of the aircraft all help determine the appropriate jet. It is very important for the buyer to feel at ease and well supported throughout the buying process. A reputable broker will offer guidance in all the negotiation procedures, the all-important pre-buy inspections, and with closing the transaction and delivery of the aircraft.

Ownership: enjoy the freedom and convenience of business aviation
An aircraft can be a great asset, if it is properly managed. The management, operation, and maintenance of a business jet involve a wide range of tasks that can dramatically impact the aircraft’s value, availability and use. These tasks include acquiring and maintaining required documentation, planning flights with all associated crewing, handling logistics and scheduling, and maintaining the aircraft. The special attention and the support of a solid, experienced aircraft management company or a dedicated internal flight team inside the owner’s operation is vital to ensure these tasks are done right.

If the owner wants to offset the management and operational costs of his private jet, and realize the full potential of the asset, leasing or chartering out the aircraft through a charter organization can generate significant revenue.

Sale: realizing the full potential
While the sale of an aircraft may sound easy in a market where demand exceeds supply, it is anything but simple. From the valuation of the asset to the evaluation of an offer, right up to the final sale, the marketing expertise and, most importantly, the network of contacts that a reputable broker provides is invaluable in getting the best return possible on the investment.

For more information, please see www.acass.ca

Captain Emil St.Hilaire has been deeply rooted in Aviation for over 20 years. As the Founder of ACASS, A Corporate Aviation Support Service company, Emil has held key executive positions while logging over 10,000 hours of flight time on the world’s most advanced business jets. Today, Captain St. Hilaire holds title of Vice President of Business Development for ACASS which has become a leading global provider of Crew Support & Pilot Placement in Business Aviation and has expanded to include Aircraft Management, Sales and Acquisition, Charter, Interim Lift and Consultancy services.