How to buy a Private Jet, Business Jet or Corporate Helicopter.
There have been many articles written on how to buy an aircraft but this not an article that you read that claims to give you enough knowledge to buy your own aircraft. Quite frankly you cannot acquire enough knowledge to buy an aircraft by reading a few of these articles. A lot of what is required comes from experience.
I am an aviation consultant with thirty years of experience in the industry and I can tell you that it requires at least three consultants to do the job. I being the primary consultant during this process bring into the loop an aviation attorney and an aviation accountant. I have experienced individuals that I match with the needs of my clients in regard to the legal and accounting aspects of the transaction. I handle the negotiations with the seller whether that is a manufacturer of a new aircraft or the owner of a pre-owned aircraft. I also arrange and oversee the pre-purchase of pre owned aircraft or the acceptance process and completion oversight of a new aircraft. Like a conductor of an orchestra I see to it that we are all reading the same sheet of music and playing our parts at the right time.
I have had a recent experience speaking with a manufacturer’s representative indicating that they preferred the client comes directly to them, I guess they want to be able to slaughter the lamb. The fact is that all the aircraft manufacturers have negotiated the terms of purchase of their aircraft, this is the “secret” they don’t want you to know. The interior options a manufacture offers are very limited and in the interest of keeping their productions number up they discourage many customizations that can be easily be accomplished. An aircraft completion management firm can offer you almost anything you desire even if it requires taking a “green” delivery and having a third party complete the aircraft to your liking. Do I need an aircraft completion oversight firm even though I’m buying new aircraft ? ABSOLUTLY POSITIVELY YES it is foolish not to have representation prior to your aircraft being on the assembly line. During the manufacturing and test flight process mistakes and accidents happen. If you don’t have a representative onsite you could be receiving one of these airframes. Granted this is not an everyday occurrence however having a representative onsite insures you will not be the recipient of an aircraft that has gone though a non routine manufacturing or test flight process.
The Bottom line is that I don’t recommend that a layman try to purchase an aircraft on their own. Don’t try to become an aviation professional overnight, hire a fee for service consultant that has your best interest in mind. An aviation consultant will make the whole acquisition process hassle free for you and give you the “peace of mind” knowing that you are getting an aircraft that is safe and will retain its value for years to come.
Ivan Klugman wwww.inavsol.com www.headofstateaircraft.com
Discovery Channels HD Theater “Worlds Most Expensive Rides” will featuring the Bombardier Global Express: Ivan Klugman on air; aviation consultant.
These two clips are my parts. They left some of my best work behind on the cutting room floor as they say.
The 1.3 million dollar Gulfstream III ??
I recently had a causal inquiry in regard to a Gulfstream III. I personally have no issues with those wishing to preserve capital and purchase an older airframe. In many cases in fact this can make economic sense. During the course of my first conversation with this prospect, I learned he once soloed and now considers himself capable of going on Controller.com and selecting his own aircraft. He had selected the least expensive G-III on the market. I discussed his needs and discovered he wanted to fly from the Denver area to India on a regular basis(two stops). I glanced at the spec sheet of the aircraft he desired and noticed it was coming up on engine overhauls and major inspections within the next year. I’m sure that this was just the tip of the iceberg. I advised him that this aircraft was most probably not the right choice for him. In fact, if I spent the time to do a cost life-cycle analysis over a few years, I’m pretty sure it would have made sense for him to purchase a more modern airframe (G-IV or Challenger) or at least a G-III that had better times and was Stage III. When I mentioned Stage II vs Stage III to this gentleman, he thought I was speaking a foreign language. This is to be expected of a novice but not someone selecting his own aircraft. I advised him not to buy the aircraft he desired. There were much better choices available. He then advised me that I had no idea what I was speaking about and he could buy and fly this airframe for 20 years. He of course would not hear otherwise. This G-III will probably spend more time in the shop than in the air this year and will cost about 4 million in maintenance. I guess the 1.3 million dollar G-III wasn’t such a bargain after all. I thought it was amazing that this otherwise intelligent man could possibly make such a monumental mistake in regard to an aircraft that will effect his safety and the safety of his family.
What I have described above is one of the classic mistakes in aviation where one’s “EGO EXCEEDS their ABILITY”.
Let’s discuss the G-III: The G-III is a fine old aircraft, that being said, if you can find a well maintained and modernized one it may be suitable for certain operations. Expect a suitable aircraft to cost approximately 5-6 million dollars. You can buy one that is ready to fly or pay less for one that needs modernization. Either way the end result is going to be around the 5-6 million dollar mark for a functional and safe aircraft.
There are many issues of concern when purchasing an older airframe. Please seek out professional advise and take it. It will save you money and hassle in the long run.
Ivan Klugman
wwww.privatejetconsultants.com
Integral Aviation Solutions Inc launches the “IAS Express” Learjet
Pre-owned Learjet can be converted into high performance, fuel sipping business tools for a fraction of the cost of a new aircraft. The “IAS Express” modification of Learjet 35/36 and 31 series aircraft increases speed, range and useful load while reducing operating costs. They can be operated out of small airports at higher altitudes to more distant destinations than standard Learjets.
IAS will be happy to convert your own Learjet or acquire one for you.
The “IAS Express” modifications include some of the following:
Cockpit Modernization
Cabin refurbishment
Empty weight reduction program by IAS
Engine upgrades
ZR lite system by Raisbeck
R/X modifications: fins and tanks by Avcon
Aircraft are delivered with fresh inspections, paint and interior.
Each aircraft is evaluated by our staff and modifications are prescribed to maximize performance keeping in mind your ROI.
Ivan Klugman www.Learjetconsultants.com www.inavsol.com ivan@inavsol.com
Selling your Aircraft in the business aviation recession??
Selling your Aircraft in the business aviation recession??
Inventory levels are now above 10 percent and we are officially in a buyer’s market.
Today an aircraft is taking an average of 213 days to sell of course many are taking longer. Aircraft can vary as much as 50% according to condition alone.
For example: a 10million dollar aircraft in sub-prime condition is worth 7.5 million while that same aircraft in prime condition is worth 12.5million. A savvy completion management team (i.e. Integral Aviation Solution Inc www.inavsol.com) can cost effectively modernize your aircraft. This would yield a very high return on your dollar as well as sell your aircraft faster. This process in concert with a cost effective marketing program (i.e. www.discountjetsales.com) can get your aircraft sold and maximize your return.
Ivan Klugman ivan@inavsol.com www.inavsol.com www.headofstateaircraft.com
Cessna Citation Sovereign
In the late 1990s, Cessna saw the need for a high-performance jet midway between the Excel/XLS size and the Citation X. The result was the Model 680 Citation Sovereign, powered by two PW360c engines. It uses the Honeywell Primus Epic glass cockpit avionics suite, coupled with dual Honeywell FMZ2000 FMS units. Its claim to fame is that it can take off and land in short distances. The Sovereign seats eight passengers in a typical cabin configuration, with a maximum high-density capacity of 12, in addition to the crew of two.FAA certification awarded in June, 2004. Customer deliveries began later that year.
Empty weight: 17,700 lbs
Useful load: 12,430 lb
Max Take off: 30,300 lb
Powerplant: 2× PWC 360C 5686 lbs
Range: 2,847 nm (5,273 km)
Service Ceiling: 47,000 ft
IAS Comments: I started looking a Cessna Citation Sovereign when chatting with an operator that said he is planning on replacing a Hawker with the Sovereign. I was a little surprised at first then I looked at the price and performance. I realized that other aircraft with the same range are more costly and the Sovereign fit his needs and budget nicely.
Ivan Klugman ivan@inavsol.com www.inavsol.com www.headofstateaircraft.com