Business Aviation Ownership
Best Structured Practices for Acquiring a Business Aircraft Start with understanding the client’s travel requirements – both current and future and then shortlist aircraft based on this preliminary analysis. Follow it up with educating the client on what best options are suitable for their travel needs.
Photograph: Jet Maintenance Solutions
By Sudhir S. Rajeshirke
Photo Caption here... Most aircraft buyers are quite naïve when it comes to aircraft acquisition
Harvard Business School professor Ted Levitt said “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” Customers, mainly business leaders, politicians and entrepreneurs, who need to save travel time, require privacy when traveling and need to get work done while onboard an aircraft, have various options of fulfilling their on-demand travel needs – charters, block hour programmes and finally aircraft acquisition. The solution has to start with understanding
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the key purpose and the nature of the client’s travel needs. In few cases, acquiring an aircraft is just the right solution. But first, we need to clarify that when customers purchase an aircraft, they should do so primarily for their own use, not to make profit out of external charter, because most likely, they won’t. Revenue from the charter flights can be used to offset some of the ownership costs i.e. fixed costs. But unless you operate a very competitive flight department and have a great demand for your asset,
ISSUE 5 • 2021
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