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Assessing Ownership Options Available Today
Deciding to Buy, Lease, or Charter

by Keith G. Swirsky, Esq., Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C.

For a person who makes frequent short-duration trips, or multiple stops during trips, buying or leasing an aircraft may make sense because such a person would benefit both from time-savings over commercial flights, and complete flexibility related to length of stay. For a person who travels infrequently or tends to have long layovers at a single destination, chartering or fractional ownership (discussed below) may be more appropriate. Chartering or fractional ownership provides the convenience of a private flight without the direct expense of employing a flight crew, and without the capital costs of owning an asset that will be idle more often than not. For business owners who require use of a private aircraft for both business and personal travel, another option is to have the company buy a plane, then treat personal use as a fringe benefit. In this case, the business owner benefits from the conveniences of ownership, while the company takes advantage of the tax deductions for the depreciation and operating expenses associated with a business asset.

The nature of the anticipated aircraft usage is a critical factor to study when considering whether to purchase an aircraft. In other words, does the frequency and duration of travel justify the acquisition? In answering this question, consider the following:

• What are your most frequent points of departure and destination?
• Are commercial or private charter aircraft conveniently available?
• What distances do you travel?
• How often do you travel?
• How long is your average stay?
• How many people will travel with you on the flight?