By Todd Jackson, Vice President of Acquisitions, Elliott Jets
Introduction
For many business leaders, entrepreneurs, and high-net-worth individuals, private aviation begins with charter flights or fractional ownership. These options provide flexibility, convenience, and speed without the complexity of full ownership. They are a natural first step for people who want to save time, maintain privacy, and avoid the inefficiencies of commercial air travel.
As flight hours increase and travel patterns evolve, the limitations of charter and fractional programs become apparent. Aircraft availability may not align with schedules, the consistency of aircraft and crew varies, and customization is limited. At a certain point, many private flyers begin to consider the advantages of whole aircraft ownership.
This transition is occurring against a backdrop of unusual urgency. The return of 100% bonus depreciation has created a surge of activity in the pre-owned aircraft market. Buyers are racing to acquire and place aircraft into service before year-end to capture tax benefits. The result is a market characterized by tight inventory, limited inspection availability, and elevated competition.
For someone moving from charter or fractional ownership to whole ownership, understanding this environment is essential. This article explores the factors that prospective buyers should know, from operational and financial considerations to the realities of buying in a crowded marketplace.
Why Move from Charter or Fractional to Whole Ownership
Charter and fractional programs serve a valuable role. They allow individuals and companies to fly privately without committing to a single aircraft. Fractional programs, in particular, create predictable access by guaranteeing flight availability with advance notice. Charter operators provide flexibility for occasional or varied missions.
The tradeoff is control. With charter or fractional arrangements, the traveler accepts the aircraft that is available. Interiors, connectivity, and amenities may differ from flight to flight. Crews rotate, and consistency in service can be unpredictable. For some, this is acceptable. For frequent travelers or those whose business relies on precision, it is not.
Whole aircraft ownership delivers control. Owners determine the exact aircraft type, interior layout, and avionics configuration. They select the crew and establish service standards. The airplane is available on their schedule, without restrictions imposed by an operator’s fleet. Branding can be incorporated into the livery or cabin environment. Technology can be tailored, from Wi-Fi systems to advanced cabin management. For those flying more than two hundred hours annually, ownership often proves more economical than fractional programs.
There is also the matter of equity. In a fractional program, the buyer owns a share that depreciates over time and must be sold back under contractual terms. In whole ownership, the aircraft is an asset that can be upgraded, refurbished, and sold at the owner’s discretion. Residual value becomes a key part of the ownership equation, particularly if the aircraft is maintained and operated with long-term value in mind.
Understanding the Responsibilities of Ownership
The benefits of control and equity must be weighed against responsibility. Whole ownership requires an understanding of operational and financial obligations that extend beyond those of fractional or charter arrangements.
The acquisition itself demands a thorough evaluation of mission needs. Range, payload, speed, and airport performance determine which aircraft will meet business and personal travel goals. A midsize jet designed for domestic travel may not be suitable for regular transatlantic flights. Conversely, a large cabin aircraft capable of intercontinental range may be unnecessarily costly for primarily regional use. Ownership locks the buyer into one aircraft platform, making the mission profile analysis essential.
Pre-purchase inspections can include inspection of the airframe, engines, avionics, and maintenance records. Discrepancies can result in significant expenses if overlooked. In today’s environment, inspection facilities require early scheduling and careful coordination.
Financing is another area of complexity. Specialized aviation lenders evaluate loan-to-value ratios, amortization schedules, and borrower profiles differently from conventional banks. They also impose strict requirements around appraisals and escrow. Buyers using leverage must account for these processes in their acquisition timeline.
Beyond acquisition, ongoing operations introduce a range of responsibilities. Crews must be recruited or contracted, trained, and scheduled. Maintenance programs must be adhered to, including routine checks, life-limited component replacements, and unscheduled repairs. Insurance must be secured and renewed annually, with premiums influenced by aircraft type, crew experience, and intended utilization. Hangar space, fuel, ground handling, and trip support represent recurring expenses. Administrative oversight, including accounting, regulatory compliance, and safety management, requires professional management, either in-house or through a third-party management company.
For new owners, understanding these commitments is as important as selecting the right aircraft. The transition from charter or fractional to whole ownership is not only about gaining control but also about accepting responsibility.
Regulatory Considerations
Aircraft ownership operates within a defined regulatory framework. Most owners in the United States operate under Part 91 of the Federal Aviation Regulations, which governs noncommercial use. Under Part 91, owners can use the aircraft for business and personal missions, but they cannot offer it for charter.
If chartering is desired as a way to offset costs, the aircraft must be operated under Part 135, which carries stricter requirements for crew training, duty time, record-keeping, and maintenance. Achieving and maintaining Part 135 compliance requires oversight from an approved operator. Some buyers choose to place their aircraft with management companies that already hold a Part 135 certificate, but this adds complexity to scheduling and usage.
Title and registration must also be carefully managed. A clean title, free of liens or encumbrances, is confirmed during the transaction. For international buyers, importation requirements and customs regulations must be satisfied. Accurate logbooks and operational records are critical, not only for compliance but also for preserving resale value.
The Role of Bonus Depreciation
One of the most significant factors driving acquisitions is the return of one hundred percent bonus depreciation. This provision allows qualifying buyers to deduct the full purchase price of an aircraft in the first year it is placed into service.
If you qualify for one hundred percent bonus depreciation, requirements demand careful planning and strict record-keeping. Failure to meet them can result in the disallowance of the bonus deduction and potential recapture of previously claimed amounts. State tax conformity varies, and buyers must consult tax advisors to understand how state and federal rules interact in their circumstances.
The key point is that to capture bonus depreciation, the aircraft must not only be purchased but also placed into service before year-end. That means it must be airworthy, crewed, insured, and ready for business use. Simply signing a purchase agreement is not sufficient.
Challenges of a Tight Market
The combination of bonus depreciation and limited supply has created a challenging environment for buyers. Inventory levels are low, particularly in popular categories such as midsize and super midsize jets. Aircraft that do come to market often sell quickly, sometimes with multiple competing offers. Sellers are aware of the urgency and may push for accelerated timelines or firmer deposits.
Inspection facilities are equally constrained. Pre-buy slots can be tough to obtain, limiting the ability to complete due diligence. Paint, interior, and avionics shops are also at capacity as existing owners rush to complete upgrades before year-end. These bottlenecks increase the risk of failing to place an aircraft into service before December 31.
For buyers transitioning from fractional or charter, these pressures can be disorienting. Unlike fractional shares, which can be contracted with relative speed, whole aircraft purchases require coordination among brokers, lenders, attorneys, tax advisors, inspection facilities, and management companies. Every participant in the process is stretched thin during year-end.
The result is an environment where planning and decisiveness are paramount. Buyers must be prepared to act quickly when a suitable aircraft is identified. They must have their advisory team in place early, financing pre-arranged if needed, and inspection slots tentatively scheduled. Delays at any stage can jeopardize the entire tax strategy.
Steps to a Successful Transition
Making the move from charter or fractional ownership to whole aircraft ownership requires preparation and guidance. The first step is to define the mission profile with precision. How many passengers typically fly, how far, how often, and from which airports? These questions determine the size, range, and performance requirements of the aircraft.
The second step is to assemble the right team. An experienced acquisition partner, such as Elliott Jets, provides market insight, transaction management, and access to off-market opportunities. Legal counsel ensures that contracts and regulatory issues are addressed. Tax advisors confirm that bonus depreciation requirements are met and that compliance is maintained. Inspection specialists safeguard against undisclosed maintenance liabilities.
Third, buyers must align their timelines with market realities.
Sample Acquisition Checklist
Below is a high-level checklist you can adapt, but working backward from your target “placed in service” date is key.
| Phase | Key Tasks | Notes / Tips |
| Pre-contract / Targeting | Define mission profile (range, payload, airports) | It shapes your fleet segment and options |
| Identify candidate aircraft meeting spec | Consider near-term delivery candidates | |
| Preliminary financial modeling | Include depreciation scenarios, operating cost, residual | |
| Engage tax, legal, financing advisors | Before contract | |
| Contracting | Execute binding purchase agreement with protective clauses | Escrow, holdbacks, milestones, remedies |
| Deposit structure and escrow set up | Don’t overpay upfront | |
| Vendor commitment for painting, interiors, avionics | Lock schedule | |
| Due Diligence / Pre-buy | Schedule inspection slots | Book early |
| Perform full pre-buy, review logs, verify records | Track discrepancies | |
| Negotiate deficiency items and closing credits | Tie to seller responsibility | |
| Refurb / Modification | Execute paint, interior, avionics, upgrades | Monitor vendors and milestone progress |
| Procure long lead items | Avoid delays due to supply chain | |
| Coordinate with regulatory agencies | Certifications, STCs, registration | |
| Crew / Ops Readiness | Hire or assign pilots, training, checkouts | Begin while refurb continues |
| Insurance, operational manuals, ground support | Acquire in parallel | |
| Relocation / Ferry | Plan ferry flights, overflights, staging | Permit, customs, crew logistics |
| Acceptance / Certification | Conduct acceptance flights, system verification | Hold back final payments until signoff |
| Confirm all regulatory and operational requirements | FAA, registration, documentation | |
| Placed in Service / Operation Commencement | Begin business flights before year end | Document usage and track business vs personal |
| Post-delivery Management | Monitor usage, tax compliance, maintenance reserve | Enforce discipline to avoid recapture risk |
Finally, buyers should take a long-term perspective. Bonus depreciation may provide a powerful incentive, but the decision to own an aircraft extends beyond tax considerations. The choice of aircraft, the management strategy, and the support network will shape the ownership experience for years to come. Following a structured checklist ensures that all critical elements are addressed and that the transition from charter or fractional ownership to whole aircraft ownership is smooth, informed, and strategically aligned with both operational and financial goals.
Wrapping Up
Transitioning from charter or fractional programs to whole aircraft ownership is a significant step. It offers control, consistency, and potential financial benefits that other arrangements cannot match. It also brings responsibility, requiring careful planning, rigorous due diligence, and ongoing management.
The path to ownership is shaped by extraordinary market conditions. The return of one hundred percent bonus depreciation has created a surge of demand that is colliding with limited supply and stretched industry resources. For prospective buyers, success depends on preparation, decisiveness, and the support of experienced advisors.
At Elliott Jets, we guide clients through this transition with a focus on mission analysis, aircraft selection, transaction management, and long-term support. For those ready to move beyond charter or fractional programs, now is both an opportunity and a challenge. With the right approach, whole aircraft ownership can provide unmatched freedom, efficiency, and value.