Private Jet FAQs
Why would I need an aircraft broker to help me acquire an aircraft?
Buying an aircraft on your own is like building a new house without a general contractor and assistance. The Private Jet Company’s role is to defend its clients’ interests and assist them during all the steps of the acquisition process by bringing our internal resources, knowledge, and experience. Among the 40 aircraft transactions the Company’s team of experts complete every year on average, 80% are acquisitions, and our clients realized the savings (time and money) they have achieved by hiring us
Is The Private Jet Company’s acquisition fee covered by the seller or the buyer?
Purchasing an aircraft is a very complex process with very expensive risks on the short, medium, and long term. The seller’s broker’s role is to defend his client’s interests by reducing his risk exposure and expenses during the sale, and by closing as fast as possible. This places TPJC on the other side of the net as our role is to defend our purchaser’s interests and help him take the right decisions, and save money and time. The Private Jet Company is paid by the party whom we represent, therefore it would be the purchaser in this case.
Do I have to prepay an aircraft broker for services?
The short answer is No. TPJC is only getting paid upon successful closing and in most cases directly from escrow, therefore none of its clients have to prepay for our services and TPJC is assuming the risks associated with investing time and resources without certitude of a closing. Our clients can also terminate our engagement at any point if they are not satisfied.
Do I need an aircraft broker like The Private Jet Company if I have already found an aircraft?
It is highly recommended to ask for the help of an aviation consulting firm even if a buyer has already determined which aircraft specifically to purchase. Finding an aircraft only represents 10% of the acquisition process. The remaining 90% are where come the risks and where buyers need assistance. TPJC’s experience, knowledge, and resources are devoted to our clients and help them save time and money and reduce the risks.
I need an aircraft as soon as possible. How fast can I close?
Even if the average time to complete a transaction leans around two to six months, The Private Jet Company has completed transactions in less than a week. Our records is actually is 5 days from LOI to Closing. It all depends on the aircraft, the seller’s ability to move fast, and of course on the buyer’s ability to perform quickly. TPJC can certainly help its clients achieve this target.
Who chooses the pre-purchase inspection facility?
The Buyer usually presents to the Seller his desired pre purchase inspection facility and The Private Jet Company will certainly help convince the seller to accept the desired facility. Depending on the aircraft, we can choose the factory or any major shops around the globe. We also help tailor the inspection work scope with our engineers based on the aircraft historical maintenance records and inspections status. Our goal is to cover all the necessary items and to lower your maintenance exposure once you own the aircraft.
I do not want to purchase the aircraft under my name, can an aircraft broker help me with this?
Most aircraft brokers do not have the required knowledge to help buyers with structuring a purchasing entity, but The Private Jet Company does. We can coordinate the creation of a company or trust structure depending on your situation and requirements so you can benefit from tax advantages and have your name remain confidential.
I would like to register the aircraft in my own country, what will it cost me?
It depends on the country and the aircraft current equipment and previous maintenance but The Private Jet Company experts can help determine the costs to make the aircraft compliant with your country’s regulations. 20% of our transactions are international involving change of registration and airworthiness requirements.
What are the typical costs for an aircraft acquisition?
Beside the aircraft purchase cost, here are the general associated costs: $7,500-30,000 for legal fees, $5,000-80,000 for pre-purchase inspection, $2,000-4,000 for escrow fees, $5,000 for registration fees, and other fees if required such as tax advice fee, aircraft relocation costs, export/import associated costs, company creation if needed, etc… We can help determine these costs based on the aircraft and your requirements.
Who does all the communication with the parties involved in the aircraft transaction?
The expert broker team at TPJC handles all communications with lawyers, technicians, representatives, escrow agents, maintenance facilities & programs, inspection facility, registration & insurance agents, crew and management organizations, etc. in order to defend the private jet aircraft buyer’s interests.
How does a buyer benefit from aircraft depreciation?
It all depend on your tax situation but TPJC experts can help buyers determine if and how they could benefit such tax advantage. We would need to understand more about your tax and income type situation, and our aviation tax attorney is here to assist you and your CPA.
How do I avoid spending money on a pre-purchase inspection for an aircraft with problems?
This is part of our services and we will investigate any aircraft records and historical data, along with performing a preliminary on-site inspection with our technicians to determine if we should move to the next steps of the transaction or move onto another aircraft.
How fast can an aircraft broker like The Private Jet Company sell my aircraft?
It depends on the aircraft and the seller’s price expectations but TPJC have sold listings as fast as nine days. We would tell our clients upfront what timing they should anticipate to sell after our initial review of the aircraft.
Where are the aircraft advertised for sale?
The Private Jet Company has a road map for marketing exclusive listings. It includes all public aircraft websites like Controller, Avbuyer, Globalair, Trade a Plane, among others, as well as aviation magazines. TPJC also advertises exclusive listings on websites dedicated to aircraft brokers like Jetnet and Amstat. TPJC does dedicated outreaches via mailings and emails campaigns directly to management companies, operators, current aircraft owners, aircraft owners and brokers associations, and other brokers in the aviation industry.
Can I still fly my aircraft while it is for sale?
Yes. Typically, TPJC will coordinate a showing for the buyer and once there is a signed deal, the seller would have to relocate the aircraft to the pre-purchase inspection facility, at which point the seller typically won’t be able use it any longer. TPJC always try to limit the down time so our clients do not stay too long without an aircraft. TPJC can also assist with a temporarily replacement aircraft depending on the client’s flight needs.
How can you help me upgrade aircraft without losing availability?
The Private Jet Company can certainly coordinate the sale and the replacement project at the same time and try to match the closing dates so you don’t spend time without an aircraft. If you decide to trade in your aircraft, you would lose more value in your traded aircraft but you would save risks and time of owning two aircraft at the same time and subsequent consequences.
Can I purchase an aircraft for depreciation benefits without the inconveniences and risks of ownership?
Yes. The Private Jet Company has developed ownership programs with select operators where an aircraft owner is paid up to 10% of the aircraft value per year, use 100% depreciation for taxes, fly at direct operating costs, and the operator paying for ALL expenses (scheduled and unscheduled maintenance, crew, insurance,.etc.). Please contact us to find out more.
What is the best option between purchasing, leasing, or chartering an aircraft?
This is a frequently asked question that our experts at The Private Jet Company have heard from potential buyers, charter customers, or even existing owners, which motivated us to create our unique consulting services for exclusive clients and consist of analyzing flight missions profiles together with the owner’s needs and financial preferences. Based on detailed financial analysis of these factors, our team will present various alternatives to help you choose the best financial and strategic outcomes.
I need to find new crew, can you help?
Yes, we have developed an comprehensive database of pilots, technicians and flight attendants over the last 20 years of combined experience and also working with several aviation staffing companies to provide the best crew profiles within the shortest time for our clients.
How can I verify if I am not overcharged by my aircraft management company?
Without a detailed audit, it is difficult to know if you are being overcharged by your management company. However, The Private Jet Company can help you go over your bills and compare those with what other management companies are charging.
Can TPJC help with an aircraft short-term lease?
At The Private Jet Company, we have completed a large number of short term leases from one month to several months, all over the world, for our clients who had their aircraft down for maintenance or other reasons.
Can I include a purchase option in my lease?
Yes, we can insert a purchase option in the lease agreement, which generally consists of a deduction of the portion of the lease already paid towards the purchase price, generally from 20% up to 50%. The purchase price could either be determined at the beginning of the lease or when the lessee decides to purchase it before the lease term.
Can I charter the aircraft during a lease to offset my ownership expenses?
Yes, TPJC experts can help you negotiate it with the owner.
Can I use the aircraft depreciation for my taxes in a lease?
By not holding the aircraft title, a lessee will not be able to benefit from depreciation for tax purposes. However, this is also an advantage for a lessee because no matter what the market drives the value of the aircraft into, and major value losses have happened during crisis, only the owner will be impacted and not the lessee.
Wouldn’t it be cheaper for me as a buyer to go to my traditional bank for financing?
Yes, major financial institutions will usually offer lower financing rates but with higher requirements and restrictions. The Private Jet Company can help you obtain financing for your aircraft purchase via second tier lenders or private funding.
How much do I have to put down for financing?
Typically 25-30% but TPJC has been able to obtain as low as 15% a few times for our clients with high credit rating profiles.
What are your financing sources?
Our financing comes from various channels depending on the aircraft and the buyer, among Major financial institutions, Independent aircraft loan brokers and Private funds.
How fast can I obtain financing to purchase an aircraft?
Typically 30 days and The Private Jet Company can assist in securing financing for aircraft transactions.
How can I find the best aircraft management company?
This is the question that every single owner would love to have an answer to. At The Private Jet Company, we can help you determine which aircraft management company is the most adapted to your needs and requirements based on your profile and geographical location. We have evaluated hundreds of aircraft management companies and have negotiated amazing terms and conditions with which we believe we are the best for our clients, based on cost, experience, efficiency, and mostly clients’ feedback.
Do I need a local management company?
We do recommend hiring a local management company if possible and with the right credentials of course, so they can provide a more personalized assistance on site due to their local experience and network. Hiring a management company far from your home base does not necessarily mean the service will be poorer but it will be more difficult. This is something we help our clients compare so they have the best support during their ownership, and we can monitor that support and adapt accordingly if needed.
How can I get a better deal with my aircraft management company?
Based on long term relationships and experience after placing over 300 aircraft with various management companies all over the World in the last 10 years, The Private Jet Company has been able to secure better terms and pricing for its clients. We would be delighted to also help you benefit from our long-term business relationships.
Would chartering my aircraft really reduce my ownership expenses?
Chartering an aircraft can reduce ownership expenses in significant ways. Private Aircraft ownership consists of both Fixed & Variable expenses and since Chartering an aircraft can either bring in revenues or reduce expenses, it will definitely reduce ownership costs. The Management Company normally handles Chartering out your aircraft, so your Management Fees may get reduced by the Hours of your Charters and as a result your ownership costs.
Do you have any ownership programs that will reduce my flight costs considerably?
Yes we have a few operators that are creditworthy and will have variations of charter and lease programs where they can guarantee charter hours all the way to pay ALL the expenses and fixed rent. The proper program for you depends on your utilization and aircraft make and model. We can help you analyze this concept and see how to best implement it.
Can an aircraft broker take my aircraft on trade?
Most aircraft brokers do not have the financial capability to inventory an aircraft. However, a few aircraft brokerage companies, including The Private Jet Company, have the financial capacity to take an aircraft into inventory by purchasing it and assisting our clients with the purchase of replacement upgrade aircraft. Please contact our team of experts to obtain a free aircraft valuation.
What kind of aircraft does The Private Jet Company accept in trade?
The Private Jet Company accepts ALL aircraft in trade for inventory. Please contact our team of aircraft experts to obtain a free aircraft valuation.
What are the advantages of trading-in an aircraft?
Simplification and time reduction of the transaction, lowering the risks of owning two aircraft simultaneously, and better piece of mind.
How can I get rid of my aircraft fast?
What criteria should I consider to find the best management company?
The criteria for selecting a Private Jet management company should include the following factors:
1. Convenience to your preferred departure airport
2. Costs of managing the aircraft
3. Management company expertise with your aircraft make & model
4. Availability of experienced pilots & maintenance staff
Hiring a management company far from your home base does not necessarily mean the service will be poorer but it will be more difficult. We help our clients compare all factors involved to make the best support available for their ownership, and we can monitor that support and recommend changes if needed.
How does chartering my aircraft change ownership expenses?
Chartering an aircraft can change ownership expenses in significant ways, by increasing some expenses, while reducing others. Private Aircraft ownership consists of both Fixed & Variable expenses and since Chartering an aircraft can either bring in revenues or reduce expenses, it will definitely reduce ownership costs. The Management Company normally handles Chartering out your aircraft, so your Management Fees may get reduced by the Hours of your Charters and as a result your ownership costs.