Hidden Costs During Aircraft Transactions

When buying and selling aircraft there are several hidden costs that need to be factored-in to your budget. Before finalising on a purchase, a thorough pre-purchase inspection should be carried-out, to assess the aircraft’s technical condition and to identify any problems that might need remedying before the purchase completes. This inspection can be quite expensive, especially for larger or more complex aircraft that may need additional checks such as borescope inspections. Escrow is commonly used to safely transfer money and documents between buyer and seller, however it should be noted they usually charge a fee that’s related to the value of the sale. Legal fees are often incurred during the preparation and review of contracts, aircraft documents and the transfer of title. There may be additional fees to pay with aviation authorities, which will be more expensive if you need to deregister and register the aircraft in a different country. If the buyer isn’t already certified to fly the aircraft, they’ll need to factor-in training costs with the acquisition. Aircraft Ferrying costs should also be considered, should the aircraft need relocating. If buying or selling with an Aircraft Broker, you’ll need to pay their commission which is usually related to the sale price. Other fees to be expected include test flight and acceptance flight fees, landing fees and hangarage fees.

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