There is a lot to consider when owning an aircraft! Luckily, there are management companies that can handle the assets of your plane from flights to training and maintenance. Basically, you own an aircraft, but a management company will handle every aspect of that ownership for you.
We’ll sum up the need for a management company in this blog, but if you would like more information about management companies and how to select the right one for you, download our Aircraft Ownership eBook!
When selecting a management company, there are a few factors to consider. First, the way a company is structured is more significant than the number of planes they manage. If they have multiple bases, it doesn’t matter too much how many planes they have. If they have wholesale, retail clients, and sell jet cards, the more planes they have, the better. What’s most important is being able to take care of a customer and having a strong customer base.
When selecting a management company, you’ll want to ask lots of questions. See whether they’re WYVERN and ARGUS-rated so you have ARGUS platinum and WYVERN Wingman. You’ll want to know if they’re ISBAO stage two or stage three qualified because of international qualifications. It will also show you that the company has a solid infrastructure in place, the safety you need, and that the company has the disciplines in place to ensure that they are running a safe operation.
Other things to look into include how the company has performed historically– have they had any FAA incidents or letters of investigation? This can give you insight into how the management company is being run and the reputation it holds in the industry.
The management company you hire will depend on the airplane you own. While new aircrafts are generally under factory warranty, older airplanes can be taken to a reputable facility for maintenance, whether that be the management company with their own maintenance or an FAA-certified 145 repair station.
When looking at maintenance companies, you’ll want to look at their op section and see what their capabilities are. Second, you’ll want to look into their involvement with the FAA, including their ratings, training programs, and in-house capabilities.
Oftentimes when buying an aircraft, the management company is involved in the pre-buying process to protect the owner when buying the aircraft, as well as performing a conformity inspection as the aircraft will be put on the company’s certificate as well. Management companies provide that service to owners on the front end so that they can alleviate any problems of putting the aircraft on their certificate on the backend.
If it’s a smaller operation where the owner is flying around 100 hours per year, then there are many pilots that do the paperwork themselves and are very proficient. However, if a pilot is flying closer to 400-500 hours a year with multiple crews and cross-utilization, involving a management company can make things much easier on an owner.
The cost of having a plane professionally managed carried depending on the plane and the contract. It could range from a few thousand dollars a month to ten thousand dollars a month.
Some management companies will up-charge certain things, so be sure to be diligent and have your own in-house counsel look at contracts before you sign. Know what you’re signing and ask specific questions!
If you’re ready to take the next step in private aircraft ownership, download our Aircraft Ownership eBook to learn more about what goes into privately owning a jet, such as management, tax planning, insurance, and more.