Tag Archives: corporate jet

How to Buy a Private or Corporate Jet: The Features & Benefits to Corporate Aircraft Ownership

In the last post, we at Covington Aircraft covered the basics on how to choose the perfect corporate aircraft for your business or private needs as well  as things to consider in pricing. In this edition of the “How to buy a Private or Corporate Jet” series, we talk about the features and benefits to corporate aircraft ownership.

Many corporations purchase corporate aircraft or invest in fractional ownership of jets due to the tax deductions such ownership can provide.  However, there are other financial advantages to owning a corporate jet.

Customized Corporate Jet InteriorCustomized Features

 

Owning a corporate jet allows the company to customize the interior of the aircraft to allow executives the ability to work as they travel in far more comfort than they can find on a commercial jet.  Elegant designer interiors can be expensive, some running as high as $85 million, but these features allow company employees to hold private business meetings as they travel to their destination, eliminating non-productive time spent on commercial jets with crying children and tight seat spaces.  In addition to the interior of the jet, the aircraft engine can be customized as well.  High quality engines, such as the PT6A from Covington Aircraft, offer reliability and reduced maintenance costs which also can save money.  Covington even offers loaner engines to eliminate downtime while your corporate aircraft is being repaired and their AOG services provide expert knowledge of aircraft engines.

Time Savings

 

Most airports offer many time savings to corporate executives who utilize private aircraft.  Many have private parking and private security checkpoints for those who use corporate jets, as well as executive lounges and free transportation to and from the airport.  Executives are able to avoid the hectic atmosphere of an airport and there is no waiting for luggage in baggage claim when they arrive.  One of the biggest benefits to owning a corporate jet may be flexibility.

Corporate Jet OwnershipFlexibility

 

Corporate aircraft are not limited by the hub and spoke system of commercial airlines and are able to schedule flights with much more flexibility.  Any corporation who has lost a major contract due to a missed connection and additional expenses for overnight accommodations for staff stuck in a connecting city can understand the benefits of corporate jet flexibility.  In addition, because private jets are smaller, they are able to land at smaller, commuter airports that may be closer to the desired destination than commercial airlines can.

Purchasing a corporate jet provides significant financial savings for those who spend many hours in the air.  With attractive financial packages available, the tax advantages to jet ownership and the time savings involved, purchasing corporate aircraft is a beneficial financial decision.

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How to Buy a Private or Corporate Jet: Choosing the Perfect Plane & Cost Considerations

Although private planes can cost millions of dollars, corporate executives and individuals who fly an average of 350 to 400 hours per year are finding that corporate jet ownership actually can save the company money.  Before embarking on such a large purchase, it is important to understand all the pros and cons of owning an aircraft.

Choose the Correct Plane

privatejetinterior

Jets can range from small, light aircraft that can fly 5 to 8 people around 2000 miles to large, 12-passenger planes that can travel more than 4,000 miles.  Prices can range from $3 million for a small plane to over $45 million for a large plane.  The current economy has caused an influx of used jets on the market, but these are not always the most economical purchase.  Federal Aviation Association (FAA) regulations require specific compliance at airports and bringing a used jet into compliance can be expensive.  New jets often come with a tip-to-tail warranty and some offer special engine programs which charge a low hourly rate for mid-life inspections and overhauls on the engine that will be required later.

Additional Costsprivate-jet-3

Just as the purchase price on a car is not the only cost factor to consider when buying, jets also have other costs that will be incurred long after the corporate aircraft is purchased.  Insurance, fuel, catering, pilots and other expenses can be very expensive.  There are management companies that will handle these expenses for you for a fee, usually between $100,000 and $200,000 per year.  Repairs and maintenance can be unpredictable and some repairs can ground your plane indefinitely.  Airplane parts are usually fairly expensive, as one part can cost as much as $50,000.  Some engine repair facilities, such as Covington Aircraft can decrease that downtime with AOG Services and with expert aircraft engine knowledge.  Loaner engines are also available to reduce your downtime during repairs.

Owning a corporate jet can actually save money in the reduction of time executives spend in airports, on commercial jets and in line at security checkpoints.  Corporate jets have the ability to be customized to allow a better working environment and more comforts than commercial jets can provide.  Covington Aircraft provides and overhauls the best engines in the world, including the PT6A aircraft engine.

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