Aircraft acquisition has four widespread methods: charters, fractional ownership, leasing, and outright aircraft purchase. Every method primarily depends on your needs, but a basic understanding will help you begin your initial research and analysis.
The charter acquisition is a good solution if you fly up to 50 hours yearly. Then, you don’t have to worry about capital costs or aircraft maintenance. Instead, you pay fees only for aircraft utilization. But unfortunately, the biggest problem is availability during high-demand periods.
Fractional ownership is best if you fly between 50 and 100 hours annually. You purchase shares in an aircraft in return for a percentage ownership. This program operates the aircraft, gives you enhanced access when needed, and ends after three to five years. Thus, you contain your costs and receive certain tax benefits.
A lessor provides the aircraft, maintenance, crew, and insurance with wet-leasing, and you pay for operational hours, fuel, duties, taxes, airport fees, and other usage costs. With dry leasing, you receive only the aircraft from the lessor. You are responsible for all other expenses. Usually, wet leases run for up to two years, and dry leases run for more than two years.
If you fly more than 150 hours annually, you should favor outright purchase. Undoubtedly, this option requires considerable capital costs and planning, often with the support of a qualified advisor. Nevertheless, deciding whether you want a new or used aircraft and how to manage and staff it would be best.
