Buyers of pre-owned business jets face a range of costs beyond the ask price, some of which might be unexpected. What costs do they need to account for, and how can they avoid any nasty surprises? Gerrard Cowan asks the experts...
First-time buyers can often be ‘a little surprised’ by the high costs of ownership, which go well beyond the initial purchase price, says aviation analyst Brian Foley. The costs of hangaring, maintaining, insuring and crewing their newly acquired aircraft can amount to millions of dollars annually.
Indeed, there have likely been numerous one-time, after- purchase discoveries for those who bought without a Pre-Purchase Inspection, he says, “which could easily cost as much as the airplane did to get airworthy again. Some of these buyers have already cut their losses and returned to their Economy Plus airline seat or charter.”
You Can Remove the Unpredictable Aircraft Maintenance Costs
Aircraft maintenance is a Pandora’s Box, according to David Caporali, Senior Vice President, Business Development for the Americas at Jet Support Services, Inc (JSSI), a National Aircraft Finance Association (NAFA) member.
Such maintenance costs take many buyers by surprise, he says, and this needs to be a vital consideration in the aircraft selection process. Indeed, it can be one of the largest variable costs in aircraft ownership, including all parts and labour, and can account for up to 35% of the aircraft’s operating budget.
“Outside of certain scheduled inspections and replacement items (that can be tracked through maintenance software) there is no way to anticipate when a part will break, making maintenance very difficult to budget for,’’ Caporali elaborates.
“‘Scope creep’ is common during any aircraft inspection, as additional squawks are often found. We have seen many work orders double or even triple the initial expected cost of a certain inspection.”
This article was originally published by AvBuyer on July 5, 2023.
