Action Steps
The best contacts and resources to help you get it done

Evaluate purchase quotes from corporate aviation companies

When you begin the process of leasing or purchasing an aircraft, there's a basic process to undertake. First, you need to determine what the price of the airplane might be and what your company's needs are in relation to that. Next, there are the specific factors, such as comfort and financing that influence the specific buying decisions. Finally, you need to determine which model of aircraft has the best safety history.

I recommend: Submit a sales information form to Avicor Aviation to determine the cost basis of the airplane. Use the purchase tutorial for an airplane from eBuyingGuides to establish a shopping strategy, including affordability, inspection of the aircraft and the purpose of buying or leasing a plane. Visit the airplane safety website AirSafe.com to determine which aircraft model is best in regards to safety issues.

Obtain financing information for corporate jets for sale or lease

Most companies can't afford to pay cash for a corporate jet. Therefore, knowing the basics of financing this purchase is essential. You'll need to determine what interest rates and down payment options each financing company offers and how that works within your budget.

I recommend: Contact the legal financing department at Chapman and Cutler to represent your company during the purchase or lease. If you have a legal department in-house, you can contact the GE Capital Solutions, Corporate Aircraft finance department directly for flexible corporate aircraft financing solutions.

Compare corporate jets for lease to those for purchase to determine the best route for your company

Another basic issue of this decision is whether to lease or purchase the aircraft. Obviously, leasing is less expensive, but you also don't have the corporate jet available at all times. There's also the fact that leasing gives you no equity in the airplane. Either way, both have their pros and cons, your specific business situation will determine the best option.

I recommend: Evaluate the lease terms available at JetLease to learn the basics about lease agreements including some of the pros and cons. Decide which option is best for your company by using the leasing guide at Global Plane Search. This site details some of the good and bad points of leasing, chartering or purchasing an aircraft.

Helpful advice for making the most of this Guide

• •  Before you sign any contract to purchase or lease corporate aircraft have a contract lawyer evaluate the agreement. While most corporate jet sales companies are reputable, they may not always have your best interest at heart.

Action Steps
The best contacts and resources to help you get it done

Enhance the status and flexibility of your company with corporate airplanes

Work the numbers, but if you or your employees travel more than 300 to 400 hours a year, that may justify talking to someone in aircraft sales about a new or used corporate jet.

I recommend: Begin your search for a used jet at Trade-A-Plane, and while you're at the website, check out their list of advertisers for financing. If you don't feel qualified to select the right aircraft for you and your company, look at Corporate Jet Sales and consider the services of a buyer's agent.

Consider corporate jets for lease if the initial sticker shock makes you nervous

Corporate aircraft leasing doesn't differ greatly from owning a corporate jet. You usually still have to hire pilots and crew, schedule maintenance, rent a hangar and purchase insurance. The difference appears most notable at tax time when you can't take the depreciation deduction you might be entitled to if you owned the aircraft. Decide what type of lease best meets your needs. An operating lease allows you to take possession of the aircraft, but the lessor retains the aircraft title. A financing lease works much like an automobile lease where you have the option to purchase the aircraft at the end of your lease term.

I recommend: Take a look at the different leasing options at Jet Lease or at Advance Air Capital.

Look into fractional ownership to avoid the hassles of full-ticket aircraft leasing or purchase

Fractional ownership offers the benefits of essentially having an aircraft at your beck and call, but you don't bother with aircrews, maintenance or renting hangars. Essentially, you buy a fraction of interest (as little as 1/16, which translates into 50 hours of flying per year) in an aircraft that belongs to a fleet. Then the company makes your aircraft, or one like it, available to you with minimum notice. You let them know your schedule, and they take care of the rest. Like leasing and ownership, fractional ownership ends up on the pricey side but with costs that are more predictable.

I recommend: Learn more about the fractional ownership program of Net Jets and their fleet of aircraft. Check out the programs and aircraft offered by Flexjet, too.

Helpful advice for making the most of this Guide

• •  Even if go with corporate aircraft sales and leasing over fractional ownership, you don't have to deal with all the aircraft management issues that go along with that decision; consider hiring an aircraft management company that handles air crews, fuel, maintenance, hangar space and aircraft-related accounting services for companies that lease or purchase corporate jets.

Action Steps
The best contacts and resources to help you get it done

Evaluate the pricing options of corporate jets for lease or purchase

Before you decide whether to lease or purchase an aircraft, it's imperative that you investigate all available avenues of acquisition. These avenues are online aircraft brokers, combination agencies with a sales and lease department, airplane auctions and direct purchase. You need to conduct a cost benefit analysis on each of these purchases or lease option to find the best fit for your company.

I recommend: Examine the aircraft models for sale at Private Air. Request the pricing information on the aircraft chartering, at Jets.com. Compare the aircraft leasing and sales options from Aviation World Services. Choose an aircraft model from the Boeing business aircraft division and ask for a pricing quote.

Clarify the costs of maintenance and storage of corporate airplanes

Should you decide to purchase corporate jets for your business, you must determine how to maintain the craft. In this case, leasing is usually the better option because the airplane upkeep is usually included in the lease contract. However, when you buy corporate aircraft, it's necessary to hire a mechanic or an aircraft consultant to handle it.

I recommend: Sign up for to receive aircraft maintenance information from Private Jet Mech. Contact the aircraft consultants at Executive Aviation Consultants to help manage your aircraft.

Use a corporate aviation company to help decrease purchase costs

Unless your company is extremely busy and the aircraft will be in constant use, an excellent way to help control costs is to charter the aircraft during downtime. There are companies available that will handle all these processes for you.

I recommend: Contact the jet service professionals at Fine Aircraft Management for cost control and charter information. Study The Five Most Important Factors in Choosing an Aircraft Management Company article at Executive Jet Management.

Helpful advice for making the most of this Guide

• •  Always verify the credentials of any corporate jet sales or leasing agency. Call your local Better Business Bureau and the Federal Aviation Administration and ask for a list of current customers. That way, you know the company is reputable.

Action Steps
The best contacts and resources to help you get it done

Full ownership

Full ownership of an aircraft provides the benefits of flexibility, security and privacy. Full ownership also carries responsibilities, such as maintaining proper Federal Aviation Administration (FAA) documentation, complying with a range of operation and maintenance regulations, carrying aircraft insurance and reporting incidents or accidents.

I recommend: Read about the benefits of full ownership in the Aero Controller buyer's guide.

Fractional ownership

In a fractional ownership agreement, also referred to as partial ownership, three or more companies own a portion of the aircraft as a depreciable asset. Each company must supply the flight crew for its own flights. This may be done independently, but it is often handled by an aircraft management company.

I recommend: See Bailey and Partners' explanation of fractional ownership at Bailey & Partners.

Aircraft leasing

Aircraft leasing transfers possession of the aircraft to the lessee, while the owner retains the aircraft title. Leases are classified by the FAA as either 'dry' or 'wet'. Only the aircraft is provided in a dry lease. In a wet lease, the owner supplies a portion of the flight crew and is considered a commercial operator.

I recommend: Business Aircraft Leasing explains some of the financial benefits of leasing.

Aircraft management company

An aircraft management company manages the logistics related to corporate ownership or leasing, from regulatory compliance to maintenance, from storage to supplying the flight crew. Some aircraft management companies also offer flight options or revenue opportunities through a charter service.

I recommend: Executive Jet Management outlines an aircraft management company's services.

Flight crew

Corporate aircraft flight crew personnel include both the cockpit crews and flight attendants, as required by the FAA. These crews ensure the safety and comfort of your business travel.

I recommend: Flights can be staffed permanently or on short notice by companies such as Flight Crews Unlimited.

Aircraft broker

An aircraft broker simply networks aircraft buyers and sellers. A broker may have an area of specialization, such as obtaining new or existing aircraft, knowledge of a particular make of aircraft, or securing financing or insurance for your purchase.

I recommend: Understand the certification of aircraft brokers provided by Aircraft Brokers International.