How do you choose the right aircraft to buy?

Nick Copley, president of SherpaReport, has done the heavy lifting when it comes to defining what you need to know about access to business aviation. This week he explores the points to consider when selecting an aircraft to purchase.

Buying an aircraft is complex. There are numerous pieces of the puzzle to consider, with tens of millions of dollars on the line. Privately purchasing an aircraft is, for most, an infrequent transaction, so whether a first-time buyer, upgrading from charter or jet card, or vying for your second or third jet, understanding the basics of every puzzle piece is important to make financially sound and smart decisions.

A fundamental first step is to map out your typical flying habits, assuming you’ve been using private aviation via jet cards or charters in the past. Consider how you intend to use the aircraft. Are you using it for regular flights between city pairs with one or two folks aboard? Or for intercontinental flights?

If you’re flying within about three hours of your destination with a handful of people aboard, a light jet will fit your needs. People tell me “But once a year I take the entire family (8 people) on vacation for three weeks. Shouldn’t I buy a bigger jet?” The aircraft you buy shouldn’t be the aircraft for the once-a-year vacation, but the aircraft that suits 95% of your requirements.

Buying a super mid-sized jet just for the family trip will see you pay $30 million or so for the aircraft itself and then significantly greater operating costs for a jet you really need once a year. From a fiscal perspective, you’re better off buying and operating a smaller jet and chartering a larger one for the annual family vacation. Also think about what are you doing on board: is the jet purely for leisure or will it be used for business? This will affect the interior configuration including whether you need lie flat beds, powerful connectivity, and even a flight attendant.

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When performing a needs assessment, tracking your previous flying habits is essential. Mapping city pairs is part of that process.

Once you’ve identified which category of aircraft would best suit most of your needs, you need to identify models you like. Perhaps you’ve flown privately before and already have a model or two in mind. If that’s not the case, make time to go to NBAA, EBACE, or one of the numerous business jet shows, to research various aircraft in person.

Try to charter a plane or buy a few flight hours on the jet you’re eyeing, to see whether you really enjoy it in flight. This step is important as various aircraft models do look, feel, and sound different at altitude. I’m 6’5”, for example, and the height of both the cabin and the doorway are important. If you have a family member requiring medical equipment on board, the width of the jet will be crucial.

The choice of new or pre-owned then comes into play. If you have the budget and you’re willing to wait about two years for a new jet, then your issue is more the wait time than anything else. If you’re going the pre-owned route, I suggest you consider several models and keep your options open. The reality is that the pre-owned business jet inventory is low and they are selling extremely quickly. Having a short list of models that fit your needs and that you are ready to purchase at the drop of a hat will put you in the best position. If your need is urgent, think laterally: retired regional airliner jets, refitted at the right MRO, can be converted into a customized aircraft for a fraction of the price.

Don’t underestimate the value of a good broker or advisor at this stage. There are two characteristics I’d recommend: look for one that has the inside track on jets before they hit the market; and that you trust, is independent, ethical, and transparent with full disclosure. To find the right broker, consider checking their references, go to organizations like the International Aircraft Dealers Association (IADA) for advice, or send me an email.

Acquiring the jet is just the start of the outlay; don’t just look at the purchase price. Annual operating costs can be a shock if you haven’t done your full due diligence. It’s not always easy to tabulate all operating costs either, which is why SherpaReport recently launched the Aircraft Buying Guide 2022.

Written in conjunction with Paul Lafata, a veteran of the business aviation sector, our digital guide provides comprehensive guidance on all aspects of purchasing a private aircraft. Purchase price indicators, the operating costs of over a dozen of the most popular business jets available (both new and pre-owned), and much more has been concisely aggregated to provide a functional guide to the complex process. The Aircraft Buying Guide 2022 is one of several insightful documents that comes with an annual SherpaReport membership.

The Aircraft Buying Guide 2022 provides comprehensive guidance on all aspects of purchasing a private aircraft and is among the documents included in an annual SherpaReport membership.

In my next columns, I’ll tackle other considerations including information about who can help streamline the process, legal and tax considerations, and the various financial aspects associated with owning a jet, and most importantly how to ensure you retain its value.

In the meantime, if you have questions, feel free to reach out to me ncopley@sherpareport.com

BlueSky Business Aviation News | 8th December 2022 | Issue #681