The Jet Set
Tips for Purchasing a Plane


by Mary K. Mewborn

With stock prices soaring, it seems more people than ever before have the financial wherewithal to do thesame in their very own private planes. Indeed, polls indicate that the number of prospective first-timeaircraft buyers has risen sharply in the last two years alone. For those who would escape "the surlybonds of earth", perhaps the best starting point is to first examine your reasons for wanting a plane.This will help determine what kind of aircraft to buy, and point you in the right direction to completethe transaction.

If your purpose in owning a plane is to emulate "the Donald" and take off on an exploratory campaign forthe Presidency, you'll want to consider a new or refurbished 747 complete with master-pieces and a masterbedroom suite or opt for one of Boeing's sixteen new 727s which come fully-equipped with a king-size bedand spacious bath. If you harken back to the days of Wilbur and Orville Wright, or dream of making goodon the promise of Icarus, then perhaps a home-built experimental aircraft or ultralight might be more toyour liking. Do you simply want a recreational vehicle in which you can leisurely slip in and out of theclouds in serene solitude, or do you desire a high-speed transport piloted by a professional? How far doyou intend to travel and how often? What passenger capacity do you require? If you'll be inviting fifteenfriends to play baccarat in Monte Carlo, you'll want at least a Gulfstream IV, but if you plan to hangwith a smaller crew of buddies who prefer Atlantic City, you can probably wing it with something older,slower, smaller, and far less expensive.

For many area residents the benefits of owning a plane are primarily the convenience and freedom theyafford. Most want an efficient mode of transportation in which to travel to vacation homes or specialevents such as family reunions, weddings, campaign fundraisers, or performing arts events. Some want theexcitement of piloting a high-powered, precision aircraft, and for them it is the flight itself, not thedestination which entices. For others, a private plane is first and foremost just that, PRIVATE. Itallows local celebrities a way to avoid the public by steering clear of major airport terminals and largecommercial carriers, and it provides a comfortable cocoon in which to conduct one's personal affairs,secure in the knowledge that few places are as far removed from prying eyes and mundane interruptions.Thus, in keeping with their needs and desires. Area residents, whether everyday housewives or high-flyingglitterati, are choosing to buy aircraft ranging from inexpensive single-engine propeller planes toluxuriously decorated, lavishly equipped, commercial-size airliners (with the recent purchase of a $24million high-performance turbo jet by one single, thirty-four-year-old- male, falling somewhere in themiddle!).

If spending thousands, or even millions on what could be considered just an expensive toy, a race carwith wings, or even a flying hotel suite makes you a little lightheaded, consider that planes haveincreasingly become a really good investment. As with real estate, their value tends to appreciate overtime and has increased significantly over the last several years alone. For example, had you purchased aHawker 700 for the going rate of $3.5 million in 1997, it could now easily be resold for a coolmillion-dollar profit!

Not only is this a great time to purchase an aircraft, but finding the perfect plane has never beeneasier. Indeed the Internet, which spawned much of the phenomenal new wealth being spent by arearesidents, is also transforming the aviation industry by providing a convenient global marketplace forairline sales. There are literally thousands of aircraft brokers, dealers, and owners who, along with allmajor manufacturers, are offering would-be buyers a choice of every-thing from vintage WWII fighters tocutting-edge experimental aircraft. There are even sites such as PlaneFax where one need only describeone's ideal aircraft and within a matter of days can expect to close a deal.

Do you want to traverse the wild blue yonder in a single-engine airplane, a twin, a turbo prop, aclassic, a home-built, or sports aircraft? Whatever you desire, you can find it on the Internet. Log onto www.evms.com, scroll through the pages and e-mail your request forsay, a Sits Playboy model homemade aircraft. Listed at only $2000, it's less than the price of around-trip ticket aboard the Concorde. Want a Beechcraft Baron twin engine built in 1976? It can be hadfor $350,000. Want one of the last of the original Cessna 172s? That too can be yours for a mere $72,000.

Still not sure what you want? If you'd like to consult online with experts about buying jets, you can logon to Ariesnet Executive Aviation, a full-service executive private jet brokerage located in Dallas,Texas. Want to consider a wider selection of airplanes? Aircraft Sales, Inc. offers planes from Bonanzasto jets, and specializes in Grummans, Mooneys, and Pipers as well as Cessnas and Float planes. Also besure to visit Aviation Square, Aircraft Shopper Online, and Wings Online, all excellent cyberspacemarketplaces where the choices seem as vast as the heavens themselves. Indeed, if after surfing suchwebsites you still have any doubt that these virtual marketplaces are changing the face of the aviationindustry, as well as that of E-commerce, just consider that December 21, 1999 saw the largest online salerecorded to date with the purchase of a Gulfstream V business jet for $40 million.

The Gulfstream V is an extremely popular top-of-the-line executive cabin-style jet with transoceaniccapability. Traveling at 500 miles per hour, it can carry as many as three to five crew members andtwelve to fifteen of one's closest friends or relatives in comfort. Standard amenities includetelevisions, telephones, a fax, VCRs, electric coffeemaker, refrigerator, and microwave oven.

At the same level of jet-setting is the Global Express, which also boasts a $40 million price tag. Ofcourse for the baby-boomer, there may still be nothing like the dream of owning a Learjet. First debutedin 1964, today these slick, sophisticated planes go for $50 million new. Learjet, Inc., which is nowowned by Bombardier Aerospace can be found on the web at www.bombardier.com. Current offeringsinclude the Learjet 31A; the Learjet 45,which was FAA certified in 1997; and the Learjet 60. Still other aircraft with worldwide flightcapability and readily available in cyberspace are Challengers, Hawkers, Citations, and Falcon 50s, thelatter being a three-engine aircraft for which there is strong brand loyalty.

Of course one need not be on the web in order to buy a plane. Moreover, would-be buyers who place a calldirectly to a broker, dealer, private seller, or factory sales office will soon discover that themechanics of purchasing even the most high-tech, state-of-the-art aircraft are not unlike purchasing ahome or automobile. Indeed, according to Joe Gardener at Dulles Aviation, Inc. "Buying a plane takes lesstime than buying a car. Very little documentation is required and financing can often be obtained withinforty-eight hours."

Perhaps the most specialized attention is afforded buyers who shop through the sales departments of theairplane manufacturers themselves. With this in mind, Boeing can be reached at 1-800-436-7598. GulfstreamAerospace Corporation has an office at 1000 Wilson Boulevard in Arlington, (703-276-9500). For a localRaytheon salesperson or a Beechcraft representative call 1-800-519-6283 and 703-771-0188 respectively.Cessna's manufacturers can be reached through C Star at 316-517-5800. Additional listings for othermanufacturers, as well as for dealers and brokers, are available via The National Aircraft TradeAssociation in Alexandria.

Major manufacturers can assist in the purchase of both new and used airplanes, though for the former,orders often require two years or more to fill. For those who can't wait to take to the skies, aircraftdealers may be a serviceable alternative.

Aircraft dealers are not unlike car dealers in that they own and resell vehicles. Occasionally one canstrike a good bargain with a dealer whose inventory has grown too large for example, but generallyspeaking it is best to apply the same cautionary caveats as one would when visiting a car lot. Go tocheck out the merchandise but don't be swept off your feet by pie in the sky promises or a slick salespitch.

If airplane dealers can be likened to car sales-men, then brokers are the real-estate agents of theaviation industry. Brokers will locate the plane of your dreams and put together a mutually beneficialdeal for which they are paid a commission. In dealing with a reputable broker, there are no hassles, noheadaches, and the buyer can be assured of receiving a safe, sound, well-inspected aircraft at areasonable price.

While brokers can take much of the work out of buying an airplane, most would expect the customer to knowprecisely what he or she wants before coming to them. Therefore it is necessary to do some homework todetermine what type of plane is in keeping with your needs and expectations about aircraft usage.

To this end prospective buyers will want to study a few aircraft buyer's handbooks. They will also wantto talk to pilots and owners from whom ultimately they may very well decide to purchase their next plane;thereby cutting out the middle-man altogether. Buying a private plane from a private party is a fairlycommon occurrence, involving a title search and a four to five-page standard industry contract. However,before one signs on the dotted line, he or she must deal both literally and figuratively with the nutsand bolts of the purchase process starting with the condition of the plane.

Most importantly, it is imperative that a pre-purchase air-worthiness inspection be performed by acompetent unbiased expert and that all FAA directives be up to spec. The engine, the airframe, theavionics, the landing gear, etc. must all be carefully examined. Further, one will want to pay particularattention to the time between over-hauls; whether the engine was last overhauled to new, or just toserviceable specs; and whether the work was done by a competent mechanic or reputable shop. Of coursethere is nothing wrong with buying a "run out" engine, provided its status is reflected in the salesprice. On the other hand, if the engine has never been overhauled, one might wonder why. Was the aircraftrarely flown, in which case might there be some deterioration to the engine due to lack of usage andattention?

The history of the aircraft is an important consideration in determining both safety and value. Forexample, if the plane were subjected to a humid environment for long periods it might have hiddencorrosion. If it served as a training aircraft, it might better be avoided for all the potential wear andtear it incurred.

To reduce the risk that a plane is damaged or unsafe and to verify that one is getting what one is payingfor, it is extremely important that the logbook be complete and accurate. Not only is an up-to-dateaccurately maintained logbook vital in determining the condition of the aircraft, but without an originallogbook indicating all maintenance and repairs, the resale value of your plane declines significantly.

Generally speaking, The Aviation Consumer's Used Aircraft Guide is the standard for determiningthe price of used aircraft and is not unlike the Blue Book for cars. However, a more precise toolis now available in the form of Aeroprice Software. Available on the Internet at www.aeroprice.com, it allows one to factor in such items as a newpaint job or upgraded avionics in determining fair market value.

Although some people believe they can get a bargain-basement price on a plane by shopping for arepossessed or government-seized aircraft at auction, auctions are in fact one sales venue which isperhaps best avoided. Auctioned aircraft are a risky investment because their logbooks tend to bemissing, or at the very least it is difficult to ascertain their authenticity. Therefore the plane'smaintenance and damage history are virtual unknowns. Plus, because auctions assign aircraft a reserveprice which frequently matches the "blue book" value, it's rare one gets a real steal. More likely youwill find yourself paying a steep price to fly on a wing and a prayer.

Of course for some, cruising eight miles high in a brand-new aircraft is the only way to fly. Moreover,there are a number of advantages to buying a new model aircraft including of course the prestige thatcomes with being the first kid on your block with a shiny new innovative aircraft such as the Cerrus forexample. Although not due out for another 26 months, this four-seat, $200,000 high-performance aircraftwith a totally new composite and design is already gaining widespread popularity. Much ballyhooed andlong anticipated, it features a parachute safety device which is intended to reduce the risk of the typeof catastrophic crash which claimed JFK, Jr.'s. life.

Operating costs are yet another reason to consider a new plane. As Bob June at Jettech, Inc. points out,new aircraft tend to be more fuel efficient and have fewer operating costs than converted aircraft. Inaddition they are quieter than older models. Moreover, older aircraft are less likely to meet FAArequirements for flying overseas or to meet certain international standards and requirements.

Still more reason to believe that buying a new plane is a good idea is the fact that so many people aredoing it. As proof that new plane sales are on the rise, Joe Gardener confirms that he already hassixteen orders for the 2000 model Cessna Citation. If you'd like to add your name to the list, callDulles Aviation, Inc. at 703-631-0233 as soon as possible since it can take four or five months fordelivery.

Whether buying a new or used airplane, one can always request "upgrades". Maybe you want to change theaircraft's exterior color scheme, or you require a built-in bar, or other more unique accoutrements. Mostarea brokers are only too happy to have the plane of your choice professionally customized to suit yourideal specifications. Maybe you also want the latest in advanced avionics or high-tech gadgetry such as aterminal collision avoidance system for $200,000, or a Comstat satellite communications system. Somepeople for whom the sky's the limit, have even requested $450,000 sound systems according to Ken Weiss atWelsch Aviation, Inc. which has the distinction of being the oldest jet brokerage in the world with morethan a half-century of experience and expertise to its credit.

If you've decided that you must have a new airplane built just for you but aren't sure you can afford it,then why not build it yourself? Home-built air- craft can range from an ultralight resembling a lawnchair with wings, to a super sophisticated experimental airplane which literally pushes the envelope andarrives at one's doorstep in a kit accompanied by a bulging packet of strict Experimental AircraftAssociation (EAA) regulations.

Amateur built aircraft and even highbred aircraft, such as an Aero Corp fiberglass body fitted with aCadillac Northstar engine, have enjoyed enormous popularity over the last two decades, so much so thatthere are presently more home-built aircraft being produced in the U.S. than factory aircraft.Unfortunately, when one thinks of home-built experimental aircraft one is forced to recall the untimelydeath of yet another of America's famous sons: John Denver.

Of course, "all types of aircraft and all forms of flight have inherent risks" and it is therefore wiseto contact the FAA to obtain the performance record of the make and model of the plane you areconsidering; or in the case of experimental aircraft, contact the Ear's Information Services Section forsafety data. If you start to get cold feet about purchasing a plane, can't decide what you really want,or are concerned that your needs may change, Dulles Aviation, Inc. has a practical solution in the formof a lease-with-an-option-to-buy which allows customers to rent aircraft before commit-ting to apurchase. This way you can get a real feel for both the vehicle itself and the lifestyle it affordsbefore obligating yourself to either.

Still another alternative is a "flexjet" program such as the one provided by Bombardier, Inc., whichallows persons or companies to purchase time-shares in one or more different types of aircraft. Not onlyis this a convenient way to hold down one's operating costs, but it is ideal for those who have multipleor changing aircraft needs. A typical contract guarantees 100 hours of flight and crew time per year, forfive years. Interested parties should call 1-800-590-JETS for what may be a convenient and economicalsolution for those who are reluctant to assume the responsibilities of full aircraft ownership.

Onthe other hand, remember that market trends suggest that buying a plane can be a money-making investmentwith the sale of previously- owned aircraft surprisingly strong and older models appreciating atunprecedented rates. So, why not throw caution to the wind confident in the knowledge that as one localindustry expert put it, "There has never been a better time to buy, or to fly."