AvBuyer Magazine – August 2019

68
Vol 23 Issue 8 2019
AVBUYERMAGAZINE http://www.AVBUYER.com

OWNERSHIP A

David Wyndham speaks to people who are new to Business Aviation on a regular

basis, and also hears some recurrent myths about business aircraft ownership.

Following he sets straight three of the more common misunderstandings...

tend to help clients select the appropriate

aircraft for their flying needs and to cost out

the various ways to achieve that. Along the

way is the need and opportunity to educate

and inform.

Quite often the decision-maker is informed, but

others (perhaps a board member or a CFO) are

not. My first task is to listen to and understand the

client’s concerns and then, after validating them,

provide answers – or at least a different point of

view – for their consideration.

But what are some of the common myths I

hear relating to business aircraft ownership? Let's

dive in...

Myth 1: You can Make Money Chartering

Your Aircraft

One client operates a trans-continental business

jet. When it’s in for scheduled maintenance, he

often uses charter. After seeing the charter bills,

however, he wanted to buy a second trans-

continental business jet for his backup and to

charter it while he was not flying.

I worked with his aviation manager to find the

break-even utilization. When accounting for the

acquisition cost as well as the operating costs,

there would be a need to fly over 2,000 charter

hours annually. Why? There are two parts to

the answer:

I

w A

Three Myths About

Business Aircraft Ownership

Ownership 1.qxp_Finance 16/07/2019 09:39 Page 1