Frequently Asked Questions
What's the upfront cost of a personal plane?
The upfront costs consist of a number of different components; once the final price is established, extra fees can include a demo charter, pre-purchase inspection; legal fees associated with the purchase process; fees for government certificates such as a certificate of airworthiness or "C of A"; if the aircraft is being purchased from another country there can be importation processes and modifications specific to Canadian aviation requirements; escrow fees for the transfer of funds as well as the financing itself.
What financing options are available?
There are numerous financing opportunities which can range from large institutional financing corporations as well as smaller scale ‘boutique’ financing companies, it all depends on the specific aircraft and the needs of our clients. We are able to offer advice that incorporate tax strategies which our clients may not know have known about to help make the financing decision a good option for their needs.
What are the typical maintenance and storage costs?
A jet aircraft owner can expect to pay for example, for a one million dollar aircraft, a cost of 15% of the purchase price, as the jet values increase, the percentage paid for maintenance and storage decreases, so for a 10 million dollar aircraft value, you can average approximately $250k in yearly maintenance costs. These costs exclude fuel, and fixed costs such as pilots’ salaries and insurance.
Why use a jet broker?
It is critical to get a professional aviation broker to work on your behalf. Industry contacts are crucial, and come with years of expertise and relationship building. We work in harmony with aviation departments and chief pilots to determine the absolute best solution for your travel requirements. From developing a mission profile, researching the global market for opportunities, to coordinating a team of professionals representing the best in legal, financial and technical expertise necessary to provide a seamless transition in closing the transaction.
Who does this make sense for, execs who fly for business and pleasure?
A corporate aircraft isn't always the right solution, we like to qualify our clients to establish first if they have a need: usually someone who could be on an airplane on average 150 hours per year; or executives who needs to reach remote destinations, second is do you have the means to purchase and maintain the yearly expenses associated with aircraft ownership. It these criteria are met, we find that our clients view corporate aircraft as a valuable business tool; it gets the right people, to the right place at the right time. The efficiencies associated with aircraft ownership are numerous, the executives and support staff can eliminate the delays experienced with commercial airlines; with immediate access our clients can take off in a private jet and utilize the extra air time saved to continue working while flying. The security that private aircraft ownership provides allows our clients to get their families to their vacation destinations in the highest level of safety.
What ways are available to offset costs, for instance; leasing it out when you're not using it?
J A Spears provides these options to our clients by bringing in the the best aircraft management companies in the industry who can set up their aircraft on a commercial operating certificate which allows charter revenue to help offset their costs.
Is aircraft ownership cost effective, or is it really about convenience?
Convenience can often translate into cost effectiveness, as mentioned above, when determining the value of the time of a corporate executive and their key team members, the travel time saved and proactive business that they are able to accomplish while in the air, can make private ownership very attractive.
What are some things that aircraft owners do to maximize their comfort?
Private ownership allows the executives to arrive at their destinations feeling refreshed and relaxed. They can plan their meals according to their preferences and enjoy the cabin entertainment systems, offering the finest sound and theater systems. Our clients are accustomed to having the business tools that come with jet ownership such as satellite phones, computer hook ups, work stations; providing the ideal office in the sky scenario, where productivity is maximized. For those longer trips, berth-able divans or even state rooms provide comfortable, private sleeping quarters.