Ownership 1.qxp_Finance 16/07/2019 09:39 Page 1
OWNERSHIP
Three Myths About Business Aircraft Ownership 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…
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68 Vol 23 Issue 8 2019 AVBUYER MAGAZINE
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 transcontinental 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: www.AVBUYER.com
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