For some frequent travelers, private jet ownership is the right choice for their unique needs. But there’s more to aircraft acquisition than you might think, it can be a long and arduous process. The key to a successful private jet acquisition is to have guidance from an experienced broker that can navigate the complexities on your behalf. Read on below, as we break down the acquisition process into seven steps — and detail the support that Schubach provides at every stage:
1. Aircraft Option Analysis
We evaluate the buyer’s mission profiles, including private jet charter hours flown annually, the types of airports accessed, average number of passengers, lengths of flight legs, and investment budget, to select the best aircraft options for a buyer’s specific needs. We then create annual operating budgets to give the buyer a sense of ongoing costs, beyond the acquisition price tag.
2. Options Presented
Once the best aircraft type/types are selected, our team conducts a worldwide private jet search for the best options that meet the buyer’s unique criteria. We scrutinize ownership pedigree, where and how the aircraft was stored, total flight hours, and maintenance history. The aircraft options are presented for review, after a rigorous initial vetting process.
3. Offers Submitted
The aircraft’s true market value is determined by taking into account recent trades of the same private jet model and using valuation tools that take into consideration the physical condition, configuration and avionics, maintenance history, logbooks, and more. A letter of intent (LOI) is prepared and submitted stipulating the terms of the acquisition, the items to be inspected and the timeline.
4. Visual Inspection
Once the LOI has been executed, an expert mechanical representative performs a comprehensive nose to tail visual inspection and does a preliminary review and verification of logbooks and maintenance records. If all is satisfactory the acquisition will move forward to a more in-depth pre-purchase inspection.
5. Pre-purchase Inspection
During a private jet pre-purchase inspection, the aircraft will undergo a rigorous set of inspections to more closely evaluate its condition. This includes examining for any wear and damage, identifying any potential mechanical problems, and verifying general airworthiness before moving forward with an aircraft closing. A pre-purchase inspection can take anywhere from 2 weeks to 2 months depending on the invasiveness and the findings that need to be repaired.
6. Aircraft Closing
Upon a satisfactory pre-purchase inspection, the purchase agreement is fully executed. A mutually-agreeable closing date and location are determined, where the buyer will take possession of the aircraft.
7. Post-purchase
Once an aircraft has been acquired, Schubach Aviation remains a committed partner and through our management services can advise the most beneficial ownership/entity structure, coordinate and manage any post-acquisition private jet mechanical and cosmetic updates, plus vet, hire, and train a qualified pilot.
