How to Buy a Business Jet
By Mark Phelps - February 1, 2009
Buying a corporate jet during times of worldwide financial turmoil might be considered by many to be one of the more outlandish business moves you can make. It could also prove to be one of the smartest.
The current fiscal climate hasn’t changed the fact that a well-utilized business jet is far more than an elite perk. Rather, it can be one of the most effective and efficient weapons in your corporate arsenal. So assuming your source of funding is still available (which it probably is, since you’re reading this), the world’s economic state has got you, the jet buyer of today, sitting in the catbird seat. A lot has changed in the jet-buying scene–new and preowned–over the past 18 months and understanding the nuances of exactly how and where the market has turned upside down can help you leverage your purchase decision.
Some things have not changed and never will. The elements of buying a jet are still unlike those of any other kind of financial transaction you have ever made. On one hand, you are negotiating the purchase of a complex, high-priced asset. Think as though you are investing in a new factory or acquiring a major technology platform costing millions– even tens of millions–of dollars. But it’s more than that. You’re also adding a self-contained “travel division” to your company (or your personal life), introducing essential personnel from an entirely different industry and becoming deeply involved in unfamiliar infrastructure (airports and the airway system). Finally, you’re making one of the most ego-feeding purchases you might ever be involved in. Just keeping your emotions in check throughout the process can require a major effort.
First Steps
To get started, you could simply Google the Web sites of all the major business jet manufacturers and ring up the salespeople representing your region. But chances are, you’ll instead start the process by seeking advice from friends and colleagues who operate jets. They’re likely to refer you to their trusted consultants or management companies. That’s a good first step.
It makes sense to audition several of these experts to ensure you have a good fit. Today, when it seems you don’t buy an iPod without expert guidance, there’s no shortage of fee-based advice available when it comes to acquiring a business jet. You ought to shop widely enough that you feel comfortable and confident with your choice.
What also has not changed in choosing the right jet is the need to define your mission as clearly as you can. While your pal in the next slip at the marina might loudly praise the value and efficiency of his company’s small or midsize jet, you might find that your needs involve carrying more passengers longer distances–and the cabin size and range of the smaller airplane just don’t make sense for your day-to-day operations. But getting carried away with impressive speed or range statistics could lead you astray, as well.
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