Renewing and/or Expanding Your Private Jet Fleet?

Renewing your corporate jet fleet, upgrading or simply adding extra aircraft-What is the key to getting it right?

Engine fuel efficiency tends to be better on new aircraft , as technology advances. Also more modern avionics reduces pilot workload and helps improve situational awareness and flight safety. Does this mean that a corporation should buy new aircraft?

In todays market you can buy a 2004 Bombardier Challenger 300 for around $10M; compared to a 2014 model for $26.6M, or the newer Challenger 350 directly from Bombardier for list price of $26.6M. There is a $16.6M difference between the first and last mentioned. Yes, if you buy new you get more depreciation and this can be written off tax wise and it will be under warranty. But what happens if you do not have that kind of money in your budget? I mentioned in my previous article about Donald Trump’s choice of older aircraft but I admit this may not be everyone’s choice/style. Of course having a new jet, like buying a new car is always nice if you can.

When you have more than one aircraft my suggestion is to try and build commonality in your fleet. A lot will depend on your mission profiles. You don’t necessarily have to have aircraft from the same manufacturer but you could consider things like common avionics.Your company may have flights that need to go into grass airstrips in Africa where a King Air would be ideal and on the other hand you may need to fly 2500-3000NM on certain missions where a Dassault Falcon 2000 works. You can actually have both the King Air & the Falcon 2000 fitted with the same Rockwell Collins Proline 21 avionics. This will make life easier (and therefore safer) for the pilots, when jumping from one aircraft to another.

Having aircraft from one manufacturer is also a good practice for a number of reasons. Maintenance contracts would be one plus and also the aircraft philosophy is the same and from an operational perspective makes things easier for the pilots. If you look at the flight decks of the Gulfstream G280, G450, G550, G650 you will see them all equipped with Gulfstream’s Planeview cockpit. There is also commonality in type ratings between the aircraft too. This will reduce both cost and time to train pilots, all factors that need to be considered when building a fleet.

The key to all this is careful planning and seeking advice from a knowledgeable and well connected broker/aircraft trader. There may be some good deals out there, on particular aircraft, because of circumstances and we all know everyone is out there to do a great deal…

Fabrizio Poli is an Aviation Analyst & Managing Partner of Boutique Aviation Company Tyrus Wings. He is also an accomplished Airline Transport Pilot having flown both private Jets and for the airlines. Fabrizio is also a bestselling author and inspirational speaker & has been featured in the Daily Telegraph, Wealth X, Financial Times, El Financiero and many other Media offering insight on the aviation world. You can tune in weekly to Fabrizio's business Podcast Living Outside the Cube.

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