Asking prices for business jets are published; the prices at which they change hands are not. Between the two sit a handful of factors that a buyer’s inspection will bring to light, and that a well-prepared seller can address before the aircraft goes to market.
Hours, cycles and the calendar
Airframe hours and landing cycles measure use. The calendar matters too: many inspections fall due after a set number of years, whatever the aircraft has flown. A low-hour jet that has sat for long periods is not automatically the better buy.
Engine and airframe programmes
Engine manufacturers offer hourly maintenance programmes, such as Rolls-Royce CorporateCare, Pratt & Whitney Canada’s ESP and Honeywell’s MSP. The owner pays per flight hour, and the programme covers scheduled overhauls and many unscheduled events. When the programme transfers with the aircraft, the next owner inherits that cover, and the market generally pays for it. An aircraft off programme may need a buy-in payment to enrol, which buyers deduct from the price.
Inspections coming due
Heavy inspections are among the largest costs of ownership. An aircraft with a major inspection due within months is worth less than one that has just completed it, and buyers price the difference.
Records and damage history
Complete, traceable logbooks back to the aircraft’s delivery are part of its value. Missing records, or damage history that is undisclosed or poorly documented, reduce what buyers will pay and narrow who will buy.
Avionics, connectivity and mandates
Some equipment is required to fly in key airspace, such as ADS-B Out in the United States and Europe. Avionics upgrades and modern cabin connectivity also move value, in both directions.
How a purchase proceeds
- A letter of intent sets the price and terms.
- A refundable deposit is placed in escrow.
- A pre-purchase inspection is carried out at an approved service centre, with a records review.
- An aircraft purchase agreement allocates the findings between buyer and seller.
- At closing, ownership is registered with the aviation authority, and interests are recorded on the International Registry under the Cape Town Convention where it applies.
SLG Global acts as adviser and broker and does not own or operate aircraft. This note is general information, not technical, legal or tax advice for a specific aircraft.