Case Study For Buying The Right Aircraft
(Avoid wrongful purchases and the pitfalls it brings!)
A True Case Study.
Suppose you are a business owner or an individual who requires an aircraft for better business operations; then you assign this task to trusted personnel or yourself.
What could go wrong?
Plenty can go wrong and right with any aircraft transaction. You want everything to go right! And nothing or very little, the barest minimum to be incorrect.
Here is a true story, and some other iterations have happened to other buyers alike; some are in a better position to fix their problems. This particular buyer assigned purchasing a business aircraft to a staff member. Upon closing the transaction and putting the airplane into use, the new owners discovered the big problem and needed the whole situation immediately rectified. We then took the company on as a satisfied client after this ordeal.
The company concluded it needed a corporate aircraft for its business development efforts and growth, so this task was entrusted to the son of one of the business managers. He identified a Turboprop as the ideal aircraft to meet the business travel needs, requirements, and budget, then closed the deal. It was a brand new aircraft, straight from the manufacturer. Upon delivery, the new head pilot of the company excitedly planned the first flight, a business trip to visit one of the company's existing sales offices. This new aircraft can carry a maximum of 6 people, a pilot plus five passengers. On the inaugural trip, the airplane was fully occupied. The problems were discovered here:
The range of any aircraft changes relative to the weight it carries, so at full passenger load, the changes will be significant as the total weight of the passengers must be subtracted from the useful load and will therefore affect the fuel load that can be carried, thus decreasing the distance the aircraft can fly. In some aircraft, it can also affect the takeoff runway length and fuel burn to attain level flight. The simple math is this: the more people you carry, the more fuel you burn and the less distance you will cover with that fuel capacity. More on this later.
The owner realized then that the range of the aircraft they thought they were getting and purchased was incorrect at full passenger capacity. The number advertised by the manufacturer as the airplane's range was calculated at less than full passenger capacity; the company's purchasing decision was made on this basis. A colossal purchasing error was made concerning the aircraft range. Consequently, they bought the wrong aircraft. Important side note: always check each aircraft's Pilot Operational Manual for the verified manufacturer range calculations before any purchase***
Now, what's the big deal?
Some will argue all they have to do is make an extra stop or two, and you will be correct, but if you scheduled two hours for a trip that now takes 4 to 5 hours because of additional flight stops and all that goes along with that, then you're unhappy and more than that not time/cost efficient. Each time an extra stop is made, your unhappiness is multiplied and grows further; additionally, it costs more money. Please understand even when refueling is scheduled perfectly ahead of time, it does take time. Your flight plans will need to be adjusted, and hopefully, the weather at this new additional stop will be good; otherwise, your trip time will increase exponentially. Even if the weather is good for flying, it may not be comfortable for the passengers. Imagine being on the tarmac for 30 minutes to refuel your plane when it is 100 degrees outside.
The company's intended objectives are left unfulfilled; firstly, a quarter of the business day was scheduled for the trip time, then ballooning to two-thirds plus of the day flying! This additional time spent traveling detracts from business operations and adds to time and cost.
The conclusion was to sell the brand-new aircraft to a new owner. Then, secure the right airplane that matches the business's needs, utilization, and requirements, especially the range and maximum ferrying weight (passengers traveling + carry). As you can surmise, the additional costs, i.e., broker fees and marketing expenses for two trades, are high. A Sales Commission must be paid to a new broker to sell the recently purchased aircraft fast at a discount (whether at the total acquisition cost or the sales price). An additional Commission is paid to the new purchasing broker to acquire the newer "right" aircraft. Also, there are other ancillary services costs associated with any aircraft trade, plus two new closing costs, one for selling and the other for acquisition $$$$$. Additionally, the brand-new aircraft was now technically a "used aircraft," which had to be sold for a substantial discount.
Consult and trade with PlaneTadaa today, and you will avoid a wrongful aircraft purchase and be spared any additional wasted resources. We save you money and time! The above is a substantial additional expense and a waste of capital and time; two incorrect decisions led to this outcome. One is having someone in-house identify the wrong aircraft for your business's utilization, requirements, and travel range. Two, not thoroughly analyzing the company's business aviation needs and timing demands.
A good consultant and broker will help identify a company's needs and requirements. Then, match them with the best options based on budget, availability, etc., and help them navigate successfully to the right aircraft and its closing.
