Acquisition Process

First, we will work with the corporate and flight department personnel within your company to ascertain your needs and requirements on an operational and financial level. We will then provide you with a range of options along with performance and operating cost information on each aircraft model that may suit your needs. We will then assist you in focusing on a particular make and model of aircraft. We can also assist with arranging a demonstration charter flight in this model of aircraft in order to be certain it meets your requirements.

Second, we will begin the process of acquainting you with the market for the chosen model of aircraft. This will consist of specifications and pricing on all aircraft of this make and model presently for sale on the open market. We will also provide you with specifications and…wherever available…the sale price of all such aircraft that have sold in the preceding six months.

Third, we will then ask you to review the information we have provided and advise whether you wish to proceed with this make and model of aircraft. If so, we will then begin contacting all owners of this type of aircraft worldwide in order to determine the sales status of their aircraft. This will be done through a variety of means, including telephone, telefax, email and regular mail. We will also take this opportunity to contact all aircraft dealers or brokers, and all aircraft manufacturers, to advise them that we have a client for an aircraft of a particular make and model. Some of these dealers or manufacturers will undoubtedly be aware of aircraft that are about to be traded in on other aircraft or that may become available as a result of a distress sale.

Fourth, after completing the above tasks, we will compile the information into a detailed report and provide that to you along with our recommendations as to which aircraft will best suit your needs. We will then wait for you to analyze the information and pick those particular aircraft that you wish to review further. Upon being advised of which specific aircraft you wish to consider, we will provide you with photos, maintenance summaries, and any additional information you may require.

Fifth, after narrowing your list of choices to no more than half a dozen aircraft, we will assist you in arriving at an initial offer for the purchase of each aircraft. We will then advise you regarding the offer language and present your offer to the seller. As each offer has an expiration date, we wait until the first offer expires, then we will present your next offer, and so on through the list of aircraft you have chosen as prospects. After each offer is either accepted, rejected or countered, we will advise you of the result, then provide our counsel on how best to proceed. We will continue this process until we locate an aircraft that meets your needs at a price you find acceptable.

Sixth, upon arriving at an initial agreement to purchase a particular aircraft, we will work with you to schedule the aircraft for a pre-purchase inspection at a suitable maintenance facility. Upon receiving the list of maintenance discrepancies from the inspection facility, we will analyze the list on your behalf and inform you of which items are important and which are not. These are generally divided into either airworthy or non-airworthy discrepancies. A seller will generally agree to correct the airworthy discrepancies. The only instance in which the non-airworthy discrepancies are of concern is if they are so numerous that they constitute a pattern of poor maintenance.

Seventh, at the same time as your initial offer is accepted, we will also provide you and the seller with a sample Aircraft Purchase Agreement that will govern the terms of the closing. This will allow both buyer and seller to have sufficient time to iron out any revisions and prepare for the closing. Finally, after the maintenance discrepancy list is resolved between the seller and purchaser, you will execute the Purchase Agreement between the two parties.

Last but not least, the final closing will take place after all maintenance discrepancies have been addressed and your pilot, along with the seller’s, will conduct a final acceptance flight. By this time, the full balance of the purchase price will need to be funded into the escrow account. At the same time, the seller will place a bill-of-sale, lien release, and any other relevant documents, in escrow. The closing would occur shortly thereafter. Of course, we can also assist you in choosing a tax advisor if there are any income tax considerations resulting from the sale. Only upon closing will our fee be paid.