Aircraft Acquisition

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AIRCRAFT ACQUISITION

Four popular means of acquiring an airplane are chartering, fractional ownership, leasing, and outright aircraft purchase. Every technique depends primarily on your requirements, but having a fundamental grasp will enable you to start your first investigation and analysis.

Chartering an aircraft is a cost-effective option if you fly less than 50 hours per year. Then, you may forget about buying new planes or keeping your current ones in good condition. Instead, you will only be charged when you use the plane. However, the most significant issue is accessibility during peak times.

If your yearly flying needs are between 50 and 100 hours, fractional ownership is your best option. When you invest in a piece of an airplane, you get a piece of it. The program will finish after three to five years, and the aircraft will no longer be operated. As a result, you can keep prices low and enjoy some tax advantages.

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A lessor provides the aircraft, maintenance, crew, and insurance with wet-leasing, and you pay for operational hours, fuel, duties, taxes, airport fees, and other usage costs. With dry leasing, you receive only the aircraft from the lessor. You are responsible for all other expenses. Usually, wet leases run for up to two years, and dry leases run for more than two years.

If you fly more than 150 hours annually, you should favor outright purchase. Undoubtedly, this option requires considerable capital costs and planning, often with the support of a qualified advisor. Nevertheless, deciding whether you want a new or used aircraft and how to manage and staff it would be best.

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