Before purchasing a commercial aircraft

The purchase of an aircraft is a major commitment. This practical 15-point checklist walks through every consideration a buyer should weigh before signing.

The purchase of a commercial aircraft is one of the largest, least reversible decisions an operator makes. The sticker price is only the beginning: operating cost per hour, maintenance reserves, parts availability, insurance, crewing and the condition of the records all shape whether an airframe is a bargain or a liability. A disciplined, written process is what separates a confident purchase from an expensive surprise.

The 15-point checklist below walks through the considerations every buyer should weigh before signing, in the order they typically arise, from setting a budget through to the final pre-purchase inspection.

Before you shop: get the fundamentals right

Two mistakes cause most aircraft-purchase regret, and both happen before anyone looks at an airframe. The first is anchoring on purchase price while ignoring the total cost of ownership, the hourly operating cost, maintenance reserves and the cost of the next heavy check can dwarf the gap between two asking prices. The second is shopping before the mission is defined: how many seats, how far, how often, off which runways. Nail those two down first and the shortlist narrows itself.

The 15-point pre-purchase checklist

1. Budget. Decide how much you are willing to spend. Beyond the purchase price and applicable taxes, include operating costs per hour, maintenance costs and the cost of replacement parts.
2. Financing. If financing, compare rates from different finance companies. Aircraft financing differs from a car loan. The amount financed is the main factor, and many lenders 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 suit longer trips; a smaller aircraft may suffice for short-range needs. Consider speed, weight and range, along with impact on price, landing requirements and potential routes.
5. Aircraft hangar. Confirm the location of the 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 aircraft type, confirm you can afford to crew the aircraft you intend to purchase.
7. Aviation consultants. Consult experienced advisers for your purchase. Experts in brokering, taxes and the technical aspects of commercial aviation should be considered.
8. Legal counsel. Tax planning and aviation regulatory issues matter. 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.
9. Insurance. An experienced agent will know the coverage and minimum requirements you need. Aircraft liability insurance is among the costliest types and depends on the age, model and value of the aircraft, check rates before buying.
10. Insurance certificate. Secure the appropriate insurance certificate if the aircraft purchase is being financed.
11. Airworthiness Directives. ADs are legally enforceable aviation regulations. Danan Aviation Consulting will check the nature of the ADs and ensure the aircraft logbooks comply with all applicable ADs.
12. Purchase agreement. Danan Aviation Consulting will assist in preparing an aircraft purchase agreement detailing the terms and conditions of the transaction.
13. Due diligence. After execution of the purchase agreement, we assist with due diligence of the aircraft and the seller, ensuring service and maintenance logs and other records are complete, and confirming damage history.
14. Aircraft records. Review maintenance reports to confirm whether components need replacement. Examine any damage history closely, confirm engine flight hours and life expectancy, check for corrosion, and inspect flight control surfaces and landing gear. Engine logbooks, equipment list, weight-and-balance data and the flight manual must be current.
15. Pre-purchase inspection. Complete a full pre-purchase mechanical inspection of the aircraft, inspecting all components before you commit.

Where buyers most often get caught

• Incomplete or non-compliant records. A gap in the logbooks, a repair without proper certification, or an AD that was signed off but not actually embodied can cost far more than any discount you negotiated.
• Engine and LLP status. Time remaining on the engines and life-limited parts can represent a six- or seven-figure swing. A clean-looking airframe with engines near overhaul is not the deal it appears to be.
• Maintenance-program mismatch. If the aircraft was maintained on a different program than yours, aligning the two through a bridging check takes time and money, plan for it before delivery, not after.
• Lease-return traps. On a lease or sale-leaseback, return conditions can oblige you to hand the aircraft back in a far better state than you received it. Read the fine print.

An independent engineer on your side, reading the records with no stake in the sale closing, is the cheapest insurance you can buy on a transaction this size. For a closer look at aligning a new-to-you airframe with your program, see why a bridging check matters.

Due diligence is not paperwork for its own sake, it is how you find the problems while you can still walk away or re-price, instead of after the money has moved.

Danan Aviation Consulting can support you at every step, from budgeting and financing through to airworthiness compliance, purchase agreements, due diligence and the final pre-purchase inspection.