Hong Kong leveraged lease: In Hong Kong, where income taxes are low in comparison to other countries, leveraged leasing to local operators is common. In such transactions, a locally incorporated lessor acquires an aircraft through a combination of non-recourse debt, recourse debt, and equity (generally in a 49-16-35 proportion), and thus be able to claim depreciation allowances despite only being liable for half of the purchase price. Its high tax losses can then be set off against profits from leasing the aircraft to a local carrier. Due to local tax laws, these investments are set up as general partnerships, in which the investors' liability is mainly limited by insurance and by contract with the operator.
The reality of the Web is that it provides a very incomplete picture of private jets for sale or the private jet marketplace. In the last few years the pre-owned aircraft market has changed significantly; the values of aircraft change more quickly and the prices shown on the Web bear little relation to what such aircraft actually sell for. Moreover, many of the best aircraft for sale never appear on the Internet, as they’re bought and sold among brokers for their clients without ever being listed for sale. Moreover, many buyers who plunge into the market without the help of an expert advisor may not even have properly identified the best airplane for their needs, and a buyer can make a great deal on the wrong airplane. That is why The Private Jet Company made it their principal focus to spend whatever time is necessary to understand the buyer's specific needs and preferences to be able to present the best value private aircrafts that fulfill the buyer's needs and offer the best value for the buyer's dollars. The founder of TPJC and all its brokers make it their goal to become a trusted advisor to the buyer to not only present the currently available aircraft on the market, but to assist in negotiating the deal, recommending legal and tax advisors, aircraft inspection specialists, suitable FBO facilities and any other services to assist in consummating the best possible deal for the aircraft purchase.
And typically, you can’t just buy one discount ticket on these planes; they’ll want you to pay for the whole cost of the plane, so you’ll need to find a group to go with you to get the most savings. Plus, if you want to save big, you likely won’t get a brand-new primo jet, as these tend to cost more. And finally, there’s the issue of safety: Private chartered planes tend to get in more crashes than commercial jets — though they are still far safer than cars. Most small-plane accidents were due to pilot error, so call the private jet company to determine how many hours of flying experience your pilot has.
On 1 April 2017, there were 22,368 business jets in the worldwide fleet, of which 11.2% were for sale. 5-year old aircraft residual value level is at a 56% of the list price. A new business aircraft depreciate by 50% in five years before depreciation flattens between years 10 and 15, and the owner of a 15 to 20 years old is often the last, matching luxury cars.