Getting an aircraft for business or private use is appealing to a lot of individuals these days. However, for whatever purpose you are using it for, the fundamental question is always going to be: How to find airplane financing? We all know that the aircraft isn’t cheap at all, but various lenders can provide the finance structure to carry out the purchase. Yet, there are certain financial considerations that you need to make before exploring the option to buy an aircraft. These include,
The availability of new models and the presence of used aircraft have broadened the price range in the market. For instance, if you are looking to buy an old or used aircraft in the big cabin long-range group, you can get it in less than 10% of the price of a new one. However, with a plane older than 20 years, you’ll get fewer facilities, low efficiency, and more maintenance requirements. But, for its lower price, it can be suitable for many individuals. Remember, the option for financing older aircraft is very limited.
Among various costs, there are some fixed ones that you need to check. It can include the annual cost of the hangar, the crew salaries, training, insurance, tax, management fees, and maintenance. However, some of the management companies will reduce the training cost for you. And also, place the aircraft in their fleet insurance. Furthermore, they can also include the cleaning cost and hangar space in the package.
This is among the most important consideration for aircraft financing. The operational costs vary with each business and the aircraft. It depends on the maintenance and associated subscribed programs. Also, they include fuel costs and destination-related fees. Therefore, if you are looking to purchase an aircraft, understand what will be your business requirements and how to make the maintenance calendar for it. Before purchasing, plan a thorough calendar for maintenance requirements like for engines or landing gears. They can be costly and time-consuming. Therefore, you should be prepared for them.
One of the most significant financial considerations included in the purchase is the tax implication. The taxes for aircraft usually depends on its usage type or the base of operations. You can take the assistance of an aviation tax consultant. They will help you develop pre-purchase planning, as well as, the post-purchase compliance involved. The finance companies like Air Fleet Capital can also help you figure out these considerations for a safer and smoother experience.
Business owners or individuals who have a tight budget can hire management companies. They will help them to sell charter on aircraft when it’s not in their use. If that’s the case, the maintenance standards are needed to be top-class. It usually increases the expenses, but it can be covered with charter revenue. Furthermore, if you decide to place the aircraft on a charter certificate, you will need the help of a management company to make the aircraft financing easy.
These are some essential financial considerations that every business looking for aircraft should think of. It makes airplane financing easy and will ensure you enjoy the full benefits of your recent purchase.