Establish Your Needs. Most aviation experts recommend a minimum of 300-400 hours of flight time per year to justify full ownership of a jet, anything less than that and you might want to consider a partnership or fractional ownership too. That said, if you or your staff need to conduct private business on board, transport items which cannot be moved commercially, or just cannot work effectively and competitively within the time constraints inherent in commercial travel, far fewer hours might be quite justifiable. Additional things to think about: preferred airports, number of passengers, baggage space and total turn around time. Make a list of your personal preferences such as aircraft size, flying range, customizations and finances. THEN and only then are you ready to talk to a professional about your options. If your estimated flight time per year falls well below the aforementioned range, simple charter, fractional or partnership arrangements, or joining a Jet “card” club - where you pay for a certain amount of flight hours up front – are all options. Narrow down the make, model, year and amenities you prefer. A professional broker should be able to help you with less obvious decisions such as avionics, engine programs, damage, maintenance history, and other "pedigree" issues.

Put Together A Team. Most people start by choosing a broker, but additional options include hiring a jet acquisition specialist and/or a jet management company. A specialist is hired based on their ability not just to purchase one specific aircraft, but to make sure you get the right aircraft, receive current information and have a team in place to put the transaction together smoothly. Your representative will estimate all the costs, any potential downtime for upgrades, and special needs of your aircraft. It’s important to realize that the sales price is not the only cost of the aircraft. Usability, insurance and operating costs, along with resale values need to be worked out between you and your team going in. A jet management company will select the pilots and crew, oversee maintenance, manage your accounting, and coordinate flights and storage. Management companies can also help charter the plane when it’s not in use.

Before Signing on the Dotted Line. Make sure a professional reviews every document you'll be signing, and that mechanic(s) review the specifics of the aircraft, including a visual inspection, and possibliy a test flight before getting into a non-refundable deposit situation.

Financing Essentials. Aircraft are not typically sold “subject” to the buyer qualifying for the loan, so you should have a backup plan if your lender is slow to process paperwork. Not all lenders are as familiar with jet acquisitions as they profess. Lenders will usually require an appraisal (at the buyer’s expense) but the buyer’s finances tend to be more controlling for the terms of the loan or lease. Consider getting a good aviation attorney to handle all the tax planning, FAA compliance issues and any miscellaneous regulations.

Taxes. How you hold title to the aircraft, how it’s operated, where it’s delivered and where it resides can all affect your tax consequences. Be sure your aviation professional has reviewed your situation and advised you accordingly. It can be a huge financial miscalculation to assume you can "fix" the paperwork after the fact.

Establish A Plan. Most first-time sellers opt to use a broker rather than handling the sale independently. How you go about choosing a broker will depend on whether the aircraft is going to be active or parked while on the market. If the aircraft is parked, it might be helpful to place it with a broker who resides in a dynamic demographic market area. While many aircraft are not visually inspected until an offer has been accepted, some buyers prefer to preview all aircraft first.

Find An Appropriate Broker. Referrals from other sellers are always good. Be sure to ask prospective brokers who they work with – attorneys and escrow agents for example – for references. You’ll want a full-time broker, not a part time pilot moonlighting as a broker. Be aware that although most active professionals are members of NBAA or EBAA, there is currently no U.S. or International training or licensing requirements for aircraft brokers. Recently, several organizations such as ICASP.org and Aba-International.org have started certifying aircraft sales professionals, but these are still relatively new to the industry. Commissions vary from a flat rate to between one and five percent. In a slow market, advertising costs are usually paid for by the seller. Make sure you have a contract that clearly outlines all the expenses and fees to be paid or received by your broker.

Estimate A Suitable Price. While it's a good idea to know what others are asking on comparable aircraft, you’ll need the services of a broker or appraiser to determine the actual value of your aircraft. Even minor differences can have a huge financial impact on an aircraft’s sales price. Bluebook calculations are available thru publications such as Price Digest and VRef, however, standard bluebook figures are not typically as relevant as those used in the auto industry.

The number of aircraft currently on the market, turnover rates, your aircraft’s condition, and financing will all affect the time it takes for your aircraft to sell – so you’ll need to allow for some holding costs until the aircraft is delivered to the buyer. Keep in mind: even an aircraft that’s parked will need some "exercise" and regular maintenance.

It’s typical for an aircraft to need a number of items repaired or replaced as the result of the PrePurchase Inspection. More times than not, the buyer will pay for the inspection, but if an item is questionable, the seller will likely need to pay for it to be fixed or replaced. When all is said and done, the PreBuy facility is the final authority on what must be done.

Marketing Basics. Your broker will be able to suggest suitable outlets for the marketing of your particular make and model, one of the most effective methods being online marketing. There are a number of services to choose from, including broker-only sites such as JetNet and AmStat, and buyer-oriented sites such as Controller and JetList. Taking out one or two print ads should also be considered. Your broker can promote your aircraft on their individual websites, in addition to email and direct mail marketing. It’s always a good idea to have professional photos taken of your aircraft, so don’t be afraid to splurge a little in this department!

Taxes. The sale of an asset this size may have notable tax consequences. If you’re planning on purchasing another aircraft or asset for offset, you may wish to have escrow work with a holding company to assist in the timing of the asset transfer.

Enjoy The Trip. A number of aspects about buying or selling a jet are complicated and subtle changes can make a big difference, but picking the right professional(s) - honest and knowledgable - is the first step. Be sure to ask questions, but give your team time to get you the correct answers and they can give you 100%. And while there is always a little give and take needed when assets and individuals of this caliber are involved, keeping your eye on the end result will help everything move smoothly to a happy conclusion!

Please be sure to let us know if you have any comments about how to make Buying and Selling A Jet more useful! Thank you and enjoy the trip!

Additional information on jet purchasing and professionals:

How to Buy a Jet | How to Sell a Jet is for general info only.
You should consult with a professional before buying or selling a jet !