Many business executives, organizations and individuals understand that privately financing a small aircraft can prove to be both cost efficient and beneficial to overall productivity in the long run. As aircraft become more economical in terms of fuel consumption, safety, and practicality, they emerge as a viable option to preserving valuable time in frequent cross-provincial or nation-wide travel.
Non-commercial aircraft are extremely valuable to businesses that require fast and decisive flight schedules, equating to more opportunity, improved professional relationships and transparency, promptitude, and esteem.
Benefits to Productivity
One of the most common complaints stemming from the use of commercial airliners is the amount of time it takes to use such services. Most airports require arrival hours in advance, maintain a lengthy baggage and customs check, waiting, flight delays, overcrowding, and the like. Owning a private aircraft for personal or corporate necessity eliminates the havoc of waiting for the schedule and procedure of commercial flight.
Typically, an impromptu business trip across the province could include a lengthy wait at an airport, parking costs, possible overnight hotel accommodations, and drive time when you’ve landed at a larger international airport. When all’s said and done, there’s the potential for your deal to have fallen through.
Time is money – in today’s markets, the higher price associated with time itself is that valued proposition that supports investigating financing a private aircraft purchase.
Many private aircraft owners cite improved efficiency as a dramatic benefit to organizational effectiveness and efficiency. When you’re able to schedule your own flights on a whim, your company has the ability to tend to important matters when required. For frequent flyers, of up to 6 flights per week, even a 6-person personal aircraft soars far beyond the abilities of a commercial flight.
Of course, there are fuel, staff, insurance costs, and hangar fees associated with aircraft ownership, but when you’re able to swoop in and handle your business on your own time, you consistently open the doors for increased opportunities and efficiency.
Presumably, the biggest hurdle in purchasing a private aircraft is cash flow. Jet finance markets are highly regulated and increasingly international in scope. The key to your purchase is finding the right aircraft for the right price. Seeking the advice of a professional aircraft consultant will help to alleviate having to independently navigate such a complex market.
With financing, the process should always be started as early as possible. Talk to us about financing costs and terms by involving us in the shopping process. Knowing the make, model, model year, and estimated acquisition cost before signing a letter of intent to purchase will help us craft the bigger picture for your business.
Availability of tax credits and benefits may influence your choice to choose a loan or a lease. Leasing an aircraft can yield the benefit of tax depreciation through lower rates. It’s important to include your financial advisors in this conversation, as many dealers will want to see you’ve done your homework prior to entertaining offers on aircraft – as the old saying goes: the best offense is always a good defense.
According to some reputable sources, about 50% of business aircraft transactions in recent years are completed with cash deals – another 25-30% of them are through leases. Considering the perceived instability of global financial markets and aviation insurance, purchasing dreams are able to remain relatively intact thanks to competitive terms and enticing interest rates within a competitive buyer’s market. As a general rule, models under 10 years of age are still very applicable choices for prospective shoppers – pending the craft has been well-maintained.
Some of the more prevalent hurdles to overcome include acquisition of a licensed pilot or becoming a qualified pilot yourself. In Canada, this means the acquisition of a Commercial pilot’s license, or an Airline Transport pilot’s license (ATP), which enables you to fly for a living all over the globe. Your first license will be a Recreational pilot’s license or a private license which can be upgraded with applicable experience and additional training.
If increasing corporate efficiency through streamlined air travel is a primary goal of your organization, privatized flight is a hugely beneficial solution to making decisions quickly, and without procedure consequence of commercial airliners. We can help get you there.