Private Jet Consultancy
If we buy an aircraft, should we make it available for charter in order to generate revenue to defray the costs of ownership? At which airport should we base the aircraft? Where do we find qualified pilots and maintenance technicians? And how much will all this cost?
Because business aviation is a highly sophisticated and technical field, finding the answers to these questions might be difficult for a company that has never operated its own aircraft. Therefore, the first step should be to review the corporate travel requirements and budget with a company who are familiar with the performance capabilities and operation of corporate aircraft, both new and used.
Av8jet offer a broad range of Jet Consultancy Services.
Ownership Structure & Registration
There are many factors which have a bearing on Ownership and Registration which include:
· Taxation and Ownership Structure / Jurisdiction
One needs to consider the possible tax advantages of depreciating an aircraft, whether the company owns all or merely an interest in an aircraft. In the UK, all forms of ownership, whether 100 percent Ownership, fractional or joint, are subject to the UK HMRC guidelines related to Capital Allowances. Tax is an area where we recommend you take specialist advice, if you would like us to introduce you specialists in this area please let us know.
· Registration
There a variety of registers that you can choose from. One needs to consider, the jurisdiction of the owner, regulatory standards, neutrality of registration, security of the aircraft mortgage register, legal and political environment.
· Type of Operation
It is important to determine in advance whether or not commercial charter is planned, as this can have a significant bearing on the operation.
Aircraft Type Selection
Beyond budget and age, the choice of an aircraft is often made between cabin size, speed and range. However, there are many other factors which have a bearing on the decision, which may include payload capabilities, runway performance, residual values, seating arrangements, number of crew, reputation of the manufacturer and the type of operation you wish to run. We will help narrow down this choice.
It is important to consider its operating, as well as acquisition costs. We can help calculate direct operating costs: maintenance, fuel and crew, etc. We include an engine reserve, which, based on a projected number of total flight hours, is the per-flying-hour cost of overhauling the engines at the prescribed maintenance interval.
An increasingly popular way to make maintenance costs more predictable is for aircraft operators to enrol the aircraft in one of the fixed-cost maintenance programs being offered by airframe, engine and avionics manufacturers. By paying an annual fee that covers the upkeep of major aircraft systems for a specified number of flight hours, operators can avoid the large expenditures associated with overhauling or performing major maintenance on an engine or other primary aircraft system.
For some personal users, owning the aircraft is a lifestyle decision, and the only justification needed is the desire to do so. However, if it is necessary to calculate the true cost of ownership then remember that an aircraft is a piece of capital equipment, so the tax consequences of owning or leasing an aircraft must be taken into account when calculating the total cost of flying a company aircraft.
Finally, the primary users of the company aircraft should consider testing, i.e. chartering the aircraft model on a real business trip to make sure that the aircraft actually fits their needs. We can help you Charter an aircraft
Aircraft Finance
Before, the process of acquisition of an aircraft gets too involved it is normally prudent to have an indicative offer in principal from a finance institution, if finance is required. Never consider putting down a payment or deposit on an aircraft that is non refundable unless you have a full offer of aircraft finance.
The decision to buy or lease an aircraft boils down to how it will affect the overall financial and tax situation of the corporation. If a company has ready cash, then it might be advantageous to buy an aircraft outright. However, there are many potential financial and tax advantages to leasing, especially if you can negotiate favourable lease terms. Leasing is particularly attractive to new operators since it usually gives them greater flexibility to trade in or trade up should the company's aviation requirements change.
If you require aircraft finance it is important that this is dealt with at the beginning of the process as it can take some weeks to arrange.