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.
