Assessing Ownership Options Available Today
by Keith G. Swirsky, Esq., Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C.
Acquiring and owning a private jet or turboprop aircraft is an exciting experience. Aircraft owners enjoy luxury and convenience unknown to most travelers, and experience a pride of ownership available to only a handful of Americans. The decision to purchase an aircraft is, however, one that requires careful consideration and review with tax and legal counsel well versed in the area of corporate aircraft acquisitions and operations.
The benefits of acquiring and owning an aircraft vary depending on many factors, including how the aircraft will be used, how frequently the aircraft will be flown, and the owner's specific tax situation. Of course, there are several alternatives to sole ownership of an aircraft. For some, it makes more sense to share ownership with another person or to buy only an interest in an aircraft operated by a fractional ownership program. For others, it makes more sense to lease an aircraft, while for still others; it makes more sense merely to charter an aircraft on an as needed basis. This article is designed to educate the reader about the aircraft ownership options available today.
Deciding to Buy, Lease, or Charter
For a person who makes frequent short-duration trips, or multiple stops during trips, buying or leasing an aircraft may make sense because
Owning vs. Leasing an Aircraft
A primary factor in deciding whether to purchase an aircraft is the level of anticipated aircraft usage
Chartering vs. Fractional Ownership of Aircraft
Chartering is often the easiest and least expensive way to have an aircraft at your disposal, and does not entail the management burdens of ownership or leasing. However
In Summary ... Find the Right Fit
There are several options available today for acquiring a private aircraft. Chartering is the simplest and perhaps least costly way to gain access to a private aircraft on an infrequent basis. Full ownership or leasing may be most cost effective when the owner will use the aircraft at least 300 hours per year. Fractional ownership offers many of the advantages of both chartering and buying: owners of a fractional interest always have an aircraft at their disposal, but avoid the many responsibilities of ownership. Choosing the correct mode of acquiring a private aircraft requires a thorough understanding of your aviation needs, but whatever your aviation needs are, there is a method of acquiring a private aircraft suited to your needs.
Keith G. Swirsky is a partner with Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C., one of the nation's leading aviation law firms.The law firm, and its affiliated consulting firm, employ over thirty aviation lawyers and consultants, and provide a diverse range of services in all sectors of worldwide aviation, representing the needs of businesses, airlines, airports and municipalities. As part of our global transportation practice, the Business Aviation Group provides legal and consulting services to the business aviation industry.
Keith G. Swirsky represents the aviation industry from many perspectives -- the aircraft owner and corporate flight department, the fractional program manager, the aircraft charter and management company, the equipment manufacturer and distributor, the lender, the airline and the airport. Mr. Swirsky and the members of the Business Aviation Group provide legal and consulting services to the business aviation industry.
This article is included in Gulfstream Contract Pilot Services' resource library strictly for your convenience. The information in this article is provided without guarantee or warranty, and is subject to change without notice. The information is the opinion of the writer, and may not reflect the opinion(s) of Gulfstream Contract Pilot Services or it's associates. The information should not be relied upon as advice to help you with your specific issue. We recommend that you discuss the specific facts of your situation with a qualified professional before making any personal or business decisions.
