VUE

Know Your Purpose Buying a private plane is a significant commitment that ought to be well- planned. Ian Lumpp, publisher at Business Air, has worked with many acquisition specialists and aircraft brokers across the market. He suggests that potential buyers consider all aspects that could influence their purchase. He explains, "Buyers should figure out what their mission or special needs are for having a private aircraft." Buyers should also assess their travel habits within the last year to gain a better understanding of their needs. Lumpp advises that anyone that is in the market to buy a private plane should think about the following factors: what the budget is; whether the plane is used for business or leisure; the number of people that the plane will need to transport; and the average travel distance required. Mike McCracken, President of Hawkeye Aircraft, says that "this is where many buyers make their first mistake — buying the wrong plane for their missions. Just because friends have [a specific model], does not mean it is the right one [for everyone]. A detailed analysis of travel patterns is important to help choose the right plane." McCracken finds it most helpful when his clients write down where they are going to go, how many times a year they travel, and what their passenger loads are. He also gives his clients a 50-question survey of the top decision makers to find out what each client's must-have and nice-to-have items are. Buyers can avoid this common mistake by dedicating enough time to dissect their individual set of requirements. Do Your Research Once the buyer's needs are narrowed down, now is the appropriate time to dig a little deeper into what the market can offer. "Buying an aircraft these days is not as simple as doing an Internet search anymore," Lumpp says. In fact, he recommends skipping the Internet all together. He suggests that everyone stop by their local airport or Fixed Base Operator (FBO) to talk to people. "When it comes to buying an aircraft, there is a lot more personal experience involved." Another great source are industry magazines such as Business Air. Buyers should earmark the jets they are most interested in and find a professional through those sources to guide them through the next step. Consider Bringing on an Expert McCracken highly recommends soliciting expert help prior to selecting a model. Bringing on an expert such as an aircraft broker or acquisition specialist can help the buyer through the process from beginning to end. McCracken cautions that a broker who lists an aircraft has a fiduciary responsibility to the seller and not the buyer. Additionally, Lumpp adds, "Every aircraft is unique—each one has a different interior, different avionics, different paint scheme, and different engine. When a buyer finds the right broker or acquisition specialist to help guide them, the professional can help them compare each jet hand in hand." The buyer wants to do their due diligence and find the ideal plane by consulting with an expert that can guide them through the purchase, the inspections, required maintenance, and finding a home for it. Whether it be purchasing a brand-new jet or refurbishing a used model, a broker or acquisition specialist can help weigh the pros and cons of each. Past this, the buyer should consider consulting with a lawyer to advise on the legal aspects—an accountant for tax and finances and an aircraft mechanic for inspections. McCracken advises that if a buyer is going to hire their own pilot and management company, then that process needs to be started at this stage. He states, "Hiring a management company can help with locating hangars, insurance, arranging training, and getting the proper paperwork to fly the aircraft." Purchasing and Management Once the buyer is ready to purchase, it is important for them to obtain a letter of intent. This will describe the details of the intended sale such as the price, deposit, and terms. Because there is a lot of steps involved in transferring an aircraft from one title to the next, it is crucial to obtain detailed records of the aircraft's history. After the final sale, "The owner will want to find a company to help manage it when they are not using it and help turn a profit. No one gets rich from owning a plane," Lumpp says, "but an owner can get back some of the funds for maintenance and parking fees by bringing on a managing company to manage and charter the aircraft when the owner is not using it." Chartering the aircraft to others can make the investment work favorably for the owner's budget. Offering a plane for rent can help recover some of the costs of owning an aircraft. VUE ON LIFESTYLE V U E N J . C O M 46

• Cover