The purchase of an aircraft is a major commitment that requires careful consideration. Before

entering into any purchase transaction, many aspects of aircraft ownership must be considered.

Some of the benefits of owning a private aircraft include:

The checklist refers to many considerations, including: pre-purchase inspections; replacement parts; maintenance; records and engine logs; insurance; etc.

1. Budget

Decide how much you are willing to spend. The purchase price of an aircraft and applicable

taxes are obvious costs. You must also include operating costs per hour, maintenance costs,

and the cost of replacement parts

2. Financing

If the purchase price is to be financed, compare the rates offered by different finance

companies. Aircraft financing is not the same as financing a car. The main factor in financing the

purchase of an aircraft is the amount being financed. Note that many finance companies will not

finance older aircraft.

3. Pre-Qualify for Financing

Financing pre-approval offers flexibility and the ability to act quickly on good opportunities.

4. Aircraft Type

Larger aircraft are required for longer business trips, while a small aircraft will suffice for shortrange trips. It is important to consider speed, weight, and range, as well as impact on price,

landing requirements and potential routes.

5. Aircraft Hangar

Confirm location of primary hangar and maintenance bases for the aircraft.

6. Pilots

Ensure you can hire a qualified pilot for the desired aircraft. Pilot salaries depend on the aircraft type. Ensure that you can afford to crew the aircraft you propose to purchase.

7. Aviation Consultants.

Consult with experienced advisers to assist with your purchase of an aircraft. Experts

knowledgeable in brokering, taxes, and technical subjects related to commercial aviation should be considered.

8. Legal Counsel

Tax planning and aviation regulatory issues should be considered when purchasing an aircraft.

You will need legal counsel familiar with aviation law, tax law, and insurance. Danan Aviation Consultants can assist with legal issues relating to your purchase of an aircraft.

9. Insurance

An experienced agent will be knowledgeable about the coverage you may need and any

minimum insurance requirements. Check the reputation of any insurance company you consult

with. aircraft liability insurance are the costliest types of insurance. They depend on the

age, model, and value of the aircraft. Check rates before buying.

10. Insurance Certificate

Secure appropriate insurance certificate if the aircraft purchase is being financed.

11. Airworthiness Directives

Airworthiness Directives (ADs) are legally enforceable aviation regulations. Danan Aviation Consulting will check the nature of the ADs, and then ensure that the aircraft logbooks comply with all applicable Ads.

12. Purchase Agreement

Danan Aviation Consulting will assist in the preparation of an aircraft purchase agreement detailing the terms and conditions of the aircraft purchase transaction.

13. Due Diligence.

Following execution of the aircraft purchase agreement, Danan Aviation Consulting can assist with the due diligence of the aircraft, the aircraft seller, etc.

As part of the due diligence process, we will ensure service and maintenance

logs and other records are complete and detailed, and confirm damage history.

14. Aircraft Records.

Review the aircraft’s maintenance reports, to confirm if any components may need replacement.

Any aircraft with a damage history should be closely examined to ensure repairs were in

accordance with the applicable aviation regulations and prescribed practices.

Engine logbooks, equipment list, weight and balance data, and aircraft flight manual/owner’s

handbook must be current and in good standing.

Confirm the flight hours and life expectancy of the engine.

Confirm if corrosion is present and if a paint job is needed. Also, inspect the condition of the

flight control surfaces, as well as landing gear.

15. Pre-Purchase Inspection.

Complete a pre-purchase mechanical inspection of the aircraft. Inspect all components that are

regularly replaced. Confirm that regular engine overhauls have taken place.

The aircraft should be inspected for damaged or worn parts, corrosion, body damage; etc.

16. Aircraft Interior.

The interior of an aircraft should be checked for proper fit and condition.

Examine the aircraft’s avionics, air conditioning, and de-icing gear. Check new paint jobs

carefully for evidence of corrosion under the surface.

17. Aircraft Maintenance and Replacement Parts.

Older, modified, or out-of-production aircraft may cause problems when requiring spare parts.

Additionally, mechanics may be unwilling to perform maintenance on old or modified aircraft.

Ensure that the engines of the aircraft are enrolled with a maintenance program.

18. Test Flight.

Ensure you fly the aircraft before you buy. During the test flight, check all equipment and

systems to ensure they are in good working order.

19. Clear Title.

Danan Aviation Consulting can assist with verifying the seller’s authority to sell the aircraft. Danan Aviation will also initiate an aircraft title search (including reviewing historic bill of sale) to

establish a chain of title and to confirm if any title issues exist.

20. Title Insurance.

Purchase title insurance to protect against unexpected claims against the aircraft’s title.

21. Ownership Considerations.

Ownership includes many potential aircraft registration issues, particularly relating to foreign

ownership.

22. Certificate of Airworthiness/Certificate of Registration.

Danan Aviation Consultant will help secure the aircraft’s certificate of airworthiness and certificate of registration.

23. Final Inspection.

Inspect the aircraft prior to taking possession to ensure there has been no damage since the

pre-purchase inspection and test flight. At this time, Danan Aviation Consulting will ensure all

conditions (per the aircraft purchase agreement) have been fulfilled.

24. Bill of Sale/Closing Documents.

Danan Aviation Consulting will ensure that the seller has executed and delivered a Bill of Sale (and subsequently filed with aviation authorities) on the closing date, together with an aircraft delivery receipt, and other relevant closing documents (leases, management/operating agreements, financing and loan agreements, escrow agreements, etc.).

25. Closing.

Danan Aviation Consulting will ensure that the necessary documents are transferred with the aircraft at the time of sale. Prospective purchasers of private/ Commercial aircraft will be challenged to make informed, comprehensive

pricing or buying decisions without a thorough understanding of the numerous components

discussed in this checklist. Meticulous attention to the various details outlined in this checklist

will ensure interested parties consider the information necessary to purchase an aircraft. The

process of purchasing the most suitable aircraft can sometimes be overwhelming. Prospective.

purchasers are encouraged to retain the services of Danan Aviation Consulting, who will ensure that the aircraft purchase transaction is managed diligently and efficiently from start to finish.

26. Aviation Regulations and Authorities.

Danan Aviation Consulting “https://www.dananaviation.com” can structure any aircraft purchase transaction to ensure compliance.

(Including all necessary filings) with all applicable aviation regulations and authorities.