Corporate Aircraft Sales and Leasing Key Terms

Access the information you need by knowing the terms of the corporate aircraft sales and leasing industry

By Ariel Norquist, Owner Ridgeline Media

As you consider the benefits of owning or leasing an aircraft, you will need to understand the relevant terminology. Knowing the basics of fractional and full ownership, the difference between wet and dry leases, as well as the services provided by flight crews and aircraft brokers will prepare you for takeoff.

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