While the primary deterrent from aircraft ownership is often the price, few business owners understand the huge tax benefits your aircraft can offer. In an attempt to boost the economy the Obama administration issued Bonus Depreciation for factory new aircraft. Now, in 2017 that depreciation is 50% of aircraft value. That means you are able to recover 50% of total cost your first year of ownership! How does a million dollar tax credit sound?
2. It's not as expensive as you thought
Money talks and the upfront equity investment in an aircraft is usually high. However, new ownership strategies are hot on the market and can reduce or eliminate your operating costs - you essentially fly your plane for FREE. Groups like Q Air in Houston, TX are leading this wave of innovation. These companies professionally manage your airplane and in exchange sell time-share style hours to other operators. This gives you a positive revenue stream and according to Q Air customers, they not only fly free, but they make decent profits on their investments. You maintain total control of your aircraft but the downtime works for you, instead of against - NICE!
3. Your business will grow
Travel has become its own form of currency and the rate at which you are able to move yourself and your employees matters now more than ever. If you are a frequent traveler you may have noticed a slight (read: major) decline in airline performance. Oversold and tardy flights are now commonplace. Each business situation is unique, however, many companies can justify using private aircraft because their executive time lost is greatly reduced. The National Business Aviation Association reported that companies that incorporate private aircraft in their business outperform competitors in, "annual earnings growth, stock and dividend growth, total share price, market capitalization and other financial yardsticks". Not to mention, your clients will be very impressed.
4. Now is the time to buy
Business aviation is on the rise - a steep one, in fact. The U.S. economy is booming and the aircraft market is more liquid today than any other time in the past decade. As a result, prices are more competitive and the aircraft selection is constantly refreshed. For now, it's a buyer's market - but this will change. The overall selection of aircraft is certainly a limited supply and as we have noted during similar market trends (and as basic economics dictates) these low prices will surely rise. If you have ever thought about an aircraft for your business it's worth a conversation with one of Flight Level Partner's consultants. Our team firmly believes in educating the prospective buyer - so consultation is always free. So, the next time you're waiting to board your oversold, late flight - feel free to give us a call, we're happy to help.