Most companies buy jets to supplement their operations costs because they offer efficiency, safety, flexibility, cost-efficiency, and secure transportation to local and international destinations compared to commercial vehicles. Above all, productivity increases because staff can work aboard a business jet rather than wasting precious time in airports and using uncomfortable public airlines with limited internet connectivity.
Also, business jets let employees make numerous trips to different locations and then return to the headquarters, prospectively saving the company thousands of dollars in travel expenses (car rentals, taxis, meals, hotels, tickets, etc.) and lost productivity.
However, the decision to buy a business jet is a sophisticated one and demands immense and cautious planning. Here are the things to consider if you want to invest in a business aircraft:
The Operational Assessment
The first step is to determine your business’s transportation requirements. The factors you need to assess include the following:
- How much do you intend to use the jet?
- How far do you and the employees travel?
- The number of employees you wish to carry.
- The feasibility and cost of transportation modes like taxis, commercial airlines, rental cars, rail, and others.
As the business leader, meet with the stakeholders and discuss the company’s present needs. Also, discover prospective future requirements, such as new business places, customers, and other changes that may impact the jet’s use. Talk to a private jet charter in New Jersey or your region to see if jet rental might work best for you instead of jet ownership.
Choosing the Appropriate Jet
In the current business jet market, organizations face plenty of options and jets from which to pick. Businesses often narrow their choices based on operational requirements, emphasizing size, cost, and range. Business aircraft are categorized based on the field and cabin size; light, very light, heavy, medium, and ultra-long range. Companies can also consider buying a new or pre-owned jet, depending on the available budget. The main criteria businesses use when choosing the ideal spray are comfort, performance, market conditions, and maintenance. It’s worth noting that the best business jet offers the utmost operational capabilities consistent with the business’s requirements at the cheapest hourly operating cost.
Business and Passenger Needs
The passengers you will fly impact the luxury level you want in a business jet. For example, you should consider getting a plane with a quality that takes after your company’s professionalism if you wish to impress your business associates. On the other hand, you should consider a simple jet if you plan to use it exclusively for employees. Please assess the interior quality of the plane you plan to purchase to ensure it best suits your business and comfort needs. If you plan to take long flights between major cities, provide the aircraft has sufficient room to stretch and stand and ample areas to work and sleep.
Examine the Management Structure
You and your advisors must assess who will manage the business jet, either an external management company or an in-house team. If you use an external management company, as most organizations do, you should consider the one with an outstanding reputation that provides you with the required accessibility and facilities.
If you plan to use their services later, it is essential to involve a third-party management service provider during your jet acquisition process. You can buy a business aircraft that complies with FAR rules. You can even mitigate costs by leasing your jet to a regional charter company.
Consult Aviation Professionals
It’s recommended to engage professional and experienced business brokers who have engaged in the business jet acquisition process for many years to avoid encountering prevalent problems and setbacks. The individuals you engage must know all aspects of the business aircraft acquisition process. Since business aviation is a unique field, it helps if you hire a person with in-depth knowledge.
The Ownership Structure
Your business should design the formal ownership structure of the jet to protect your assets and lower liability. The best thing is that a couple of approaches exist, including individual ownership and establishing a company inside consolidated companies. Your operations determine the proper ownership structure.
The business jet acquisition is a considerable investment that affects your personal and business lifestyles. So, it’s essential to know your objectives, budget, tax options, and the above-listed tips before deciding the type of jet to buy.