First Steps of Aircraft Ownership Part 2
Many companies new to corporate aviation opt to hire a pilot as a first step then trust the pilots expertise to carry the ball to the end zone. Most pilots are conscientious, capable and honest while the focus of their professional effort is acquiring the training and skills required to safely operate an airplane. Even so, they have a good idea of the market value of a given airplane, are at least familiar with the aircraft sales transaction process, and know most of the repair facilities. They are a valuable liaison between the prospective owner, a professional broker and the others in an acquisition team.
The acquisition team most often consists of an aviation attorney, an accountant familiar with the fiscal nuances of aircraft ownership, and an aircraft broker, as well as the pilot.
The contributions of the pilot, attorney and CPA are obvious. The contributions of the broker usually require a little explanation.Experienced, reputable brokers bring a much more in-depth knowledge of fleets, of markets, of negotiating strategies, of financing sources; and, importantly, a knowledge of the potential mistakes to be avoided which are common to some aircraft transactions. Also, brokers have access to proprietary market data too expensive to be used for a single transaction. In addition, they bring their professional network to the task usually, a network that can provide valuable information about any airplane in a given fleet in any location, worldwide. Brokers typically have no allegiance to a specific brand; therefore, their recommendations are more likely to be based strictly on objective analysis. Just as important, the broker is the only member of the acquisition team that is compensated on a performance basis rather than an hourly rate basis.
The assembly of an the acquisition team of aviation professionals is the surest way to a successful, quick and smooth transition to aircraft ownership -- so the new owners business can begin to enjoy the competitive advantage that a corporate aircraft can deliver.(end)