At the request of one of our aircraft owners, Desert Jet flew the owner’s aircraft over 700 hours in revenue-generating operations, earning $2,000,000 in gross revenues. The owner’s portion of this revenue paid for all of the costs of operating and owning the aircraft, including maintenance, crew salaries and training, insurance, hangar, fuel and most of the bank loan payments, for the three year period the aircraft was operated by Desert Jet.
Over a 12-month period, one of our aircraft earned enough revenue through charter operations to cover all of its fixed and operational costs, such as fuel, maintenance, pilot salaries, training, insurance, hangar, cleaning, etc., as well as the costs incurred for the aircraft owner’s flying, plus a tidy profit (six figures) left over. The aircraft flew just over 500 hours between revenue and business flights. Due to Desert Jet’s own refurbishments, the plane’s appearance is better now than when we first entered it into charter operations.
An aircraft owner approached us to help him earn revenue after spending a year with a charter company that was unable to deliver more than 10 hours of charter per month. Not only did we provide the owner’s request of a consistent monthly minimum of 25 hours of charter, we also uncovered several operational inefficiencies and maintenance oversights by the previous management company that unnecessarily cost the aircraft owner hundreds of thousands of dollars and an early hot section inspection. In addition, we were able to recreate an airframe logbook that was lost by the previous management company, potentially saving the aircraft owner thousands of dollars when he sells the aircraft in the future.
An aircraft owner approached us eleven months into his ownership about a problem he encountered where his California State tax exemption for interstate commerce use had been denied. We quickly sprang into action and provided 75 hours of charter over the next three weeks to enable him to qualify for a commercial tax exemption, saving him several hundreds of thousands of dollars.
A pilot who wanted to buy his first jet approached us for assistance in the acquisition as well as in helping him gain his first jet experience. The pilot was able to strike an excellent deal on an almost-new aircraft. Flight training began right after delivery and the aircraft was added to our charter certificate within three days. The pilot earned his single pilot type rating and began flying the aircraft single pilot with minimal insurance hassles and was also able to earn revenue to offset his fixed expenses on the aircraft.
An aircraft owner approached us about taking over the management and charter of his aircraft. He was with a management company who he felt was not meeting his needs and more critically, was not listening to him when he expressed his concerns. His immediate response was to move the aircraft to another management company. We spoke at length about his needs and while we knew we could directly help the aircraft owner, and that he would likely have a better service experience with us, we sensed the aircraft owner really liked the people behind the company and that he might be able to salvage the relationship with the existing management company. We gave him some advice on how to handle the conversation and were pleasantly surprised to hear that the management company was receptive to change. While we did not end up managing the aircraft, we felt this outcome was ultimately the best one for the aircraft owner and that we will have a future customer when the time and situation is right for him.
A new client approached us regarding his frustration with his aircraft acquisition. He had hired a traditional broker six months previously, made a few offers, but still had no aircraft. He had his eyes on one aircraft in particular but felt his broker could not seal the deal at the terms he wanted.
We promptly moved into action and successfully negotiated a deal with the seller’s agent. Within two weeks, the client was not only a new aircraft owner, he was also up and running with a full flight department as well as earning charter revenue.
A charter customer who flew on a regular basis approached us about his upcoming business expansion that would require he visit his new plant every other week. We did an evaluation of his travel needs and provided him with cost analyses for completing his travel by chartering or buying his own jet. The evaluation showed that he could reduce his costs significantly through the purchase of his own aircraft, with the offset of the fixed expenses through revenue earned by chartering the aircraft when he would not need the aircraft for his own business use. We represented the buyer in the acquisition of a very popular aircraft that we located off-market, saving the buyer approximately $300,000. Within two weeks of making an offer, the aircraft completed a thorough pre-purchase inspection, closed, delivered and was flown in both its first trip for the aircraft owner as well as its first charter flight. The aircraft owner recently shared with us that his life was forever changed when he bought his aircraft, because he can now do more with less time, and be more rested and ready to take on the next challenge when he lands at the next destination.
A business with frequent and diverse travel needs had gradually been expanding their charter flights with Desert Jet over a two-year period. One of the owners of the company inquired about a mission cost analysis and assistance in determining the best travel solution for their unique requirements. We evaluated their past and planned flight patterns and recommended the acquisition of two aircraft based in two different states for the organization. The company has acquired one of the aircraft and have already enjoyed increased scheduling flexibility as well as lower operating costs. The second aircraft will be added as the company’s needs continue to grow. In the meantime, they are enjoying the use of other aircraft in Desert Jet’s fleet when they need additional lift through our interchange agreement, which allows them to use other fleet aircraft at operating cost.
A client approached us for assistance in purchasing an aircraft as well as selling his current aircraft. The aircraft he wanted to purchase had a long manufacturer backlog with positions being sold at a high premium. The client didn’t want to wait a year for a delivery slot and didn’t want to pay for a delivery position. He wanted a brand new aircraft and he wanted it NOW.
We were able to locate a private individual who had taken delivery from the factory just a month earlier who was willing to sell. The aircraft had less than 40 hours on it. We successfully negotiated both the sale of the current aircraft as well as the purchase of the new aircraft concurrently, avoiding the need to do a reverse like-kind exchange. We also successfully obtained an exemption from any California state sales and use tax on behalf of the owner.