Salem Air Center Offers Complete Aircraft Management
We evaluate your travel needs.
Define your budget.
Search Market for Aircraft to fit the criteria listed above.
Orchestrate the process of finding & buying your aircraft.
Obtain Insurance at a discount through our fleet policies.
PROTECTING AND MAXIMIZING THE VALUE OF YOUR AIRCRAFT INVESTMENT
Buying a pre-owned business aircraft is an activity of great interest to many people in the company, starting with the CEO, the CFO and the Chief Pilot. Of course, in a small company one person may occupy all these positions. In large corporations, even more people occasionally get into the act, including other important and influential management persons as well as board members.
Probably we can all agree that acquiring an aircraft represents an important, carefully considered business investment, whether it's an owner-flown, high-performance single for a small company or a multi-million dollar corporate jet, crewed by professionals.
An organization acquiring capital equipment should find ways to protect their investment and maximize its value. This is particularly true with the purchase of pre-owned equipment, including a business aircraft.
MAXIMIZING THE INVESTMENT
Maximizing the investment value begins with acquiring the right aircraft for you company, because this is key to cost-effective travel. Determining the right aircraft is a process based upon comprehensive knowledge about such company travel realities as current usage profiles, anticipated future needs, owner-flown or crew-flown operation, tax and financial implications and any number of other considerations specific to each business situation.
Once a certain category and type of pre-owned aircraft is determined to be right for the buyer, finding that aircraft becomes the next step. This is where it helps to work with an organization that has aircraft acquisition people who are in daily contact with the global pre-owned aircraft market and have expertise in this area.
As you know, two or more aircraft may appear to be similar and equal in value, but one of them could be a considerably better investment than the others. Making that determination is the job of a professional.
Additionally, at some point you will be dealing with the aircraft owner's sales representative -an agent or broker who knows the ins and outs of buying and selling aircraft. In this case, the seller has the advantage, unless you have experience and knowledge in aircraft acquisition comparable to the broker's.
No question about it. This is a time when you definitely need a professional in your corner.
EXPERIENCE AND EXPERTISE
In addition to an experienced aircraft sales representative, you should have a highly qualified service provider that you trust to help protect your investment. The importance of this organization to your success in acquiring the right aircraft, protecting your investment and maximizing its value cannot be overstated. It is their technicians who will assure the airworthiness of the aircraft as well as discover any technical problems that might require service presently or in the near future.
So there are normally three parties involved in a pre-owned aircraft acquisition, the buyer and seller (with their representatives) and the service provider. Granted the seller and the service provider are the same organization in some transactions. That is no problem if the organization is a reputable company, the kind that a smart buyer would be working with anyway.
These parties should develop a common understanding about what they wish to accomplish and who is responsible for what during each step of the process. This should be committed to writing and signed by each party. When understanding and mutual goals are the basis of the transaction, many problems can be eliminated that might otherwise develop down the line.
EVALUATE THE AIRCRAFT
After locating an aircraft, the buyer should make a visual inspection of the exterior and interior, which will say a lot about the care that aircraft has received. If the buyer is still interested, the service provider can the examine airframe and engine logs and all paperwork relative to modifications, equipment installation, weight and balance updates, Service Bulletins, Airworthiness Directives, etc.
Another important bit of information discovered in this step is the identity of previous service providers. Were they reputable organizations that have recognized expertise with this kind of aircraft?
This paperwork examination normally takes no more that an hour or two, but it is an extremely important step, revealing vital facts about the aircraft history.
Next, if the aircraft still looks potentially good, a test flight by the service provider is in order to find any problems that would only show up in flight.
That in flight evaluation should be followed up by an inspection based upon the aircraft manufacturer's approved inspection guide. This annual inspection protocol provides a thorough look at all-important areas - engines, airframe, undercarriage, etc. The buyer and serviceprovider may or may not decide that additional specific inspections are appropriate, such as a bore scope of the engines, for example.
It is customary for the buyer to pay for the inspection and the seller to be responsible for any maintenance that is required to bring the aircraft back up to airworthiness standards. This is one of the issues to be agreed upon at the beginning of the process.
After the inspection and any maintenance that follows, there should be a final test flight by the service provider to make sure that the aircraft is squawk free.
SUCCESS WILL FOLLOW
Buying the right pre-owned aircraft for your company is not a simple task, but there is no reason that it should be a particularly difficult one. Just handle it like any other important company matter- get the best advice possible from experts, decide what you want to do and let experienced professionals execute your decision.
This will help assure your success in protecting and maximizing the value of your business aircraft investment.
Salem Air Center has been providing these services for over 20 years. Our knowledge and experience can take a lot of the anxiety out of purchasing aircraft. If you're not ready for 100% ownership, we can introduce you to fractional shares that divide ownership costs between customers making it more cost effective, allowing you to purchase an aircraft sooner than you may think.