Buying a private jet can be a beneficial investment for companies that frequently need to fly staff or clients, but how can you decide what type of aircraft works best for your organisation?
The demand for new jets has grown over the past few years, and manufacturers have struggled to keep up due to staff shortages caused by COVID and delays in the supply chain. Experts project new deliveries to increase at a compound annual growth rate (CAGR) of around four per cent over the next five years, with costs rising and sales value growing at 8% CAGR, nearly double the unit CAGR. Before prices peak, now might be an ideal time to buy a jet.
When deciding on aircraft ownership, you should carefully measure your typical flying habits. You should fly at least 240 hours yearly for the investment to pay off. Here are other factors to consider:
Do you tend to fly alone, or do you fly as a team?
If you fly alone or with only one or two travel companions, a smaller jet might suit your needs and is a cost-effective investment. Those who travel with a larger team might need a larger jet with adequate seating capacity and facilities onboard. A conference table setting might be desirable if you hold meetings in flight. Galley facilities for food preparation, lavatories, berths and other features will make your flight more comfortable. A private jet like the Gulfstream G650 could be an ideal fit. The roomy G650 cabin offers a height of 1.91 metres, a width of 2.49 metres and a length of 14.27 metres. It can be configured with variable cabin layouts, up to four living areas, and accommodates up to 19 passengers.
Are there certain cities you frequent, and how far are they from your corporate headquarters?
If you fly long distances, a G650 can get you there with fewer stops, but a larger jet will limit the airports from which you can land and take off. It’s not ideal for shorter trips. If you often fly within Europe and want greater flexibility to fly to smaller airports, an aircraft like the Embraer Phenom 100 could be a perfect choice. The Phenom 100 has a large cabin cross-section for a light jet at 3.35 m long, 1.55 wide and 1.50 m high. It offers more head and legroom than other aircraft in this category. Depending on the configuration, it can comfortably accommodate four passengers (up to six passengers if you forfeit a lavatory and closet). The large windows fill the cabin with natural light.
What are your plans to manage flight operations?
When investing in a corporate jet, it’s essential to factor in crew, hangarage, routine maintenance, FBO, and flight management requirements. Establishing a corporate flight department may pay off if your flight requirements are frequent. You’ll need to hire qualified personnel to manage the aircraft and coordinate trips. Alternatively, you might want to establish an aircraft management contract with a suitable facility to handle those details. A knowledgeable broker can review your organisational needs and recommend the best strategy for your business.
How soon do you need the aircraft?
Due to high demand, especially in today’s market, many aircraft manufacturers have extended lead times on new aircraft. You might need to wait three years for your new corporate jet. Though manufacturers are increasing their production capacity to meet higher demand, a pre-owned plane might still be a better option if you’d like to have the aircraft available sooner. With guidance from a knowledgeable broker, you can find a pre-owned jet that suits your flight needs in good condition at a fair price. When buying a pre-owned aircraft, you may want to refurbish or tailor the cabin to suit your corporate needs and possibly upgrade the technology features onboard, like installing a radome antenna for in-flight Wi-Fi. There are world-class maintenance, and completion centres in Europe qualified to update your aircraft's design and offer ongoing technical maintenance services. An experienced broker can help connect you with a qualified facility to perform the pre-purchase inspection and detail the upgrade options. Even if you need to wait a few months to close the deal and have work completed, you may be able to fly your corporate jet sooner.
At LunaSolutions, our brokers have 15-years of specialised experience to offer. They can confidently review your specific needs and guide you through the process, from concept to delivery and ongoing operations, so do not hesitate to contact us.