Most companies buy jets to augment their operating costs because they offer efficiency, safety, flexibility, cost-effectiveness and safe transportation to local and international destinations compared to commercial vehicles. Most importantly, productivity increases as employees can work on board a corporate jet instead of wasting valuable time at airports and using inconvenient public airlines with limited internet connectivity.
Also, business jets allow employees to travel multiple times to different locations and then back to headquarters, which is expected to save the company thousands of dollars in travel expenses (rental cars, taxis, meals, hotels, tickets, etc.) and lost productivity.
However, the decision to buy a business jet is challenging and requires immense and careful planning. Here are the things to consider when considering investing in a business jet:
The company evaluation
The first step is to determine your company’s transportation needs. Factors that you must evaluate include the following:
- How often do you intend to use the jet?
- How far do you and the staff travel?
- The number of employees you want to transport.
- The feasibility and cost of transportation such as taxis, commercial airlines, rental cars, rail and others.
As a CEO, meet with stakeholders and discuss the current needs of the company. Also, discover likely future requirements, such as: B. new business locations, customers and other changes that may affect the use of the jet. talk to a Private jet charter in New Jersey or in your area to see if chartering a jet is best for you rather than jet ownership.
Choosing the right jet
In the current business jet market, companies are faced with a multitude of options and jets to choose from. Organizations often narrow their choices based on operational needs, emphasizing size, cost, and reach. Business jets are categorized by area of operation and cabin size; light, very light, heavy, medium and ultra long range. Depending on the available budget, companies can also consider buying a new or used jet. The main criteria companies use when choosing the ideal spray are comfort, performance, market conditions and maintenance. It is worth noting that the best business jet offers the greatest possible operational capabilities in line with the needs of the company at the cheapest hourly operating costs.
Business and Passenger Requirements
The passengers you fly influence the level of luxury you desire in a business jet. For example, if you want to impress your business partners, you should consider buying an aircraft whose quality matches the professionalism of your company. On the other hand, consider a basic jet if you intend to use it exclusively for employees. Please rate the quality of the interior of the aircraft you are considering purchasing to ensure it best suits your business and comfort needs. If you are planning long flights between major cities, make sure the plane has enough space to stretch and stand, and enough space to work and sleep.
Examine the management structure
You and your advisors need to weigh up who will manage the business jet, either an outside management company or an in-house team. If, like most organizations, you hire an outside management company, you should consider the one with an excellent reputation that will provide you with the accessibility and facilities you need.
If you intend to use their services later, it is important to involve an external management service provider during your jet acquisition process. You can buy a business jet that complies with FAR rules. You can even cut costs by leasing your jet to a regional charter company.
Contact aviation professionals
It is recommended to hire professional and experienced business brokers who have been dealing with business jet purchasing for many years to avoid common troubles and setbacks. The people you hire need to know all aspects of the business aircraft procurement process. Because business aviation is a unique field, it helps if you hire someone with in-depth knowledge.
The ownership structure
Your company should design the jet’s formal ownership structure in a way that protects your assets and reduces liability. Best of all, there are multiple approaches including sole ownership and setting up a business within group companies. Your business determines the right ownership structure.
Purchasing a business jet is a significant investment that impacts your personal and business lifestyle. Therefore, it is important to know your goals, budget, tax options and the tips listed above before deciding on a jet type.