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There are a variety of ways companies can own and operate their aircraft, and NBAA continues to provide to Members the information that will help them ascend to a higher level of productivity and growth.
Advantages of aircraft ownership include flexibility and control over all factors relating to transportation, including safety, security, comfort, timeliness and cost of business travel. This control can be maintained by a company flight department or a management company. Other advantages include tax benefits, such as depreciation.
Business Aircraft Financing Expert Says Three Areas Will Be Key in 2016
Jan. 21, 2016
Business aircraft financing expert Michael Francis says that three areas – aircraft values, interest rates and bank regulations – will be key to predicting changes to the financing market for business aircraft in 2016. "Aircraft values have been fairly volatile over the past several years, and residuals may not stabilize in 2016," said Francis, vice president of sales (US-East) for CIT Business Aircraft Finance. "A significant challenge for lenders is predicting an aircraft's value to ensure that the loan has sufficient collateral value protection." Francis will delve more deeply into these areas, as well as provide an overview of lending options, during his presentation at the NBAA Regional Forum at Florida's Palm Beach International Airport (PBI) on Jan. 28. Learn more about Francis' market analysis.
Aircraft Financing: Is the Recovery Underway?
Jan. 11, 2016
Since the crash of the market in 2008, aircraft buyers have faced a tighter credit market, and for several years following the Great Recession, analysts reported that most deals were financed with cash. Now, lenders say capital is flowing back into aircraft finance, and the overall U.S. economy is strong, making loans on business assets – including aircraft – attractive investments. But the way capital flows to business aircraft has changed. "We're seeing increased competition in the space," said Ford von Weise, director and head of global aircraft finance for Citi Private Bank. “Lenders who’ve never been in aircraft finance before are entering the market" Read more about the state of aircraft financing in the January/February 2016 issue of Business Aviation Insider.
Special Report: Aircraft Acquisition Planning and Financing
Oct. 12, 2015
One of the attractions of business aviation is the ability to take to the skies on a schedule that meets your company’s needs – be it through charter, fractional ownership, aircraft leasing or outright purchase. Acquiring a business aircraft requires careful analysis and planning to determine which form of ownership best suits your company’s needs, and to ensure the aircraft you purchase offers you the best value. Read a special report that looks at the various leasing and purchase structures available to companies in the September/October 2015 edition of Business Aviation Insider.
Full ownership allows an individual or entity to own 100-percent of an aircraft. Co-ownership allows multiple companies to share in ownership of an aircraft. Learn more about full & co-ownership.
Joint ownership creates the opportunity to legally share cost and economically justify an aircraft at lower utilization rates. Learn more about joint ownership.
Fractional ownership allows a company or individual to buy a share of an airplane and the fractional program manager handles of all of the details related to flight operations, including (but not limited to) maintenance, hiring pilots, scheduling the aircraft. Learn more about frational owndership.
The charter option creates the opportunity to choose which aircraft, what airport and when to depart and arrive, and adjusting these times as needed. Learn more about the charter option.
Interchange is a very narrow arrangement useful for two (or more) companies, each of which owns an aircraft, to swap time. Learn more about the interchange option.
Leasing an aircraft can be an alternative to outright purchase for a variety of reasons ranging from practicality to cash flow. Learn more about leasing.
Through a time sharing agreement, an aircraft operator is able to seek limited reimbursement for a flight by leasing its aircraft with flight crew to another individual or company. Learn more about time sharing agreements.
The FAA defines operational control, with respect to a flight, as "the exercise of authority over initiating, conducting or terminating a flight." The entity having operational control has regulatory responsibility and legal liability for the operation of the aircraft. Learn more about operational control.