2024 December

Looking to market and sell your airplane? Aviation photography is your most powerful tool for showcasing an aircraft effectively and attracting serious buyers. Video runs a close second.

With a surge of pre-owned aircraft entering the market, standing out is critical. High-impact visuals can make all the difference.

Why Hire an Aviation Photographer?

Shooting inside jets isn’t like regular photography. Professional aviation photographers understand tight cabin spaces, reflective surfaces and specialized lighting needs. They know how to highlight luxurious interiors, advanced avionics and custom features without distortion.

Staging Tips for Stunning Aircraft Photos

• Clean and Detail the Aircraft: A spotless airplane sends a strong first impression.
• Perfect the Lighting: Natural light works wonders, but supplemental lighting ensures every detail shines.
• Declutter the Cabin: Remove personal items and simplify the space.
• Show Key Features: Highlight the flight deck, leather seating and tech upgrades.
• Choose the Right Location: A hangar backdrop or runway setting adds a dramatic touch.

What to Look for When Hiring a Photographer

• Experience in Aviation Photography: This niche requires technical know-how.
• Portfolio of Aircraft Shoots: Look for well-composed, properly lit images.
• Expertise in Video Production: A skilled videographer can create cinematic walkthroughs.
• Attention to Detail: Small touches matter, from framing to post-production edits.

The Competitive Edge

With over 20 years of aviation photography experience, I’ve seen how compelling visuals transform sales. Vivid images offer potential buyers an accurate, enticing view of an aircraft’s condition, design, and unique features.

Detailed shots of the flight deck, cabin and exterior build trust and credibility. Prospective buyers can explore key attributes virtually, gaining familiarity before committing to an in-person tour.

Once uploaded online, these visuals reach buyers worldwide, far beyond local markets.

Why Quality Visuals Matter

Professional aviation photography elevates an airplane’s perceived value. High-resolution images and cinematic videos suggest meticulous care and attention to detail. The right presentation can justify a higher asking price and shorten the sales cycle.

In summary, aviation photography and video help aircraft stand out from the competition. They enhance marketing efforts through clear, engaging visuals that expand market reach and boost perceived value. Investing in top-tier visuals is a smart move for sellers looking to attract serious buyers fast.

How can you buy an aircraft with only a week or two left, no time for a full inspection, and booked inspection facilities?

In football terms, there are just two minutes left on the clock and no timeouts.

From experience, these last two weeks of the year are the “Super Bowl” for aircraft transactions—when buyers race against time to close deals before the year ends.

Buying an aircraft under tight year-end deadlines isn’t easy. It requires quick decisions and creative strategies. While an aircraft transaction typically takes 4-8 weeks when there’s no time crunch, many year-end buyers needing bonus depreciation can’t afford that timeline.

How to Buy an Aircraft Quickly: Two Plays

There are two potential plays—both somewhat risky—if you want to make a purchase before year-end while protecting the buyer.

The best option is for your aircraft broker to find a plane with recently completed major maintenance (or nearing completion). While standard maintenance doesn’t cover all inspection tasks, most should be done.

Additional steps may include a logbook review for completeness and damage history, plus borescopes of engines and the APU. These checks aim to ensure no “significant findings” (e.g., items that would disqualify the aircraft from consideration).

The challenge: Most planes like this are already under contract.

The second play is to find a well-maintained plane and perform a limited inspection for “significant findings.” Both parties can then close the deal, leaving part of the seller’s proceeds in escrow (a “holdback”). This contemplates a full pre-purchase inspection in January, with the holdback paying for the “squawks” discovered and with remaining funds returned to a seller upon completion.

The risk: The holdback might fall short of repair costs, or the full inspection might reveal serious issues. Success depends on a well-crafted aircraft purchase agreement outlining both parties’ post-closing obligations.

While the ideal approach allows plenty of time for thoughtful due diligence, creativity is possible when the clock is running out. These risky plays aren’t for rookies or the faint of heart. Success demands a strong acquisition team, including a skilled broker and aviation attorney.

‍

As year-end approaches, now’s the time to review your 2024 aircraft records. In doing so, you’ll ensure proper tax reporting of your aircraft activity.

The rules for deducting aircraft expenses are very specific and require detailed records and documentation. But this can be easily managed with the right planning and processes.

In late 2013, the IRS released the final regulations that govern how company provided business aircraft expenses can be deducted. Non-entertainment use of your aircraft is potentially deductible if the use is properly substantiated. 

Taxpayers are required to track the usage on a flight-by-flight, passenger-by-passenger basis. This means you must look at the primary purpose of each flight, but also the primary purpose of each passenger onboard. Having family and personal guests onboard business flights will likely impact the deductibility.

In addition, the IRS requires written, contemporaneous records to substantiate deductible aircraft use. Records can include emails, meeting minutes, agendas, calendar invites, social media posts, checklists, and pictures.

This documentation can be in the form of emails, meeting minutes, agendas, calendar invites, social media posts, check lists, pictures, etc. The information should be enough for an auditor to connect the dots and understand the purpose of your trip.

Every aircraft owner is different, and best practices can vary from owner to owner. It’s important to implement a process that works for your organization to ensure that the required information is being maintained without becoming overly cumbersome. 

The IRS has tightened up their audit processes for business aircraft. The good news is that we’re seeing a streamlined approach on recent audits. Now is the perfect time to review your records and get ready for tax season!

‍

Amid the hustle and bustle of the holiday season, it’s important to pause and recognize that this season itself is rooted in the spirit of gratitude. As we wrap-up another year I thought it fitting to look back and touch on three things I’m grateful for in the industry. 

First, I’m grateful that interest rates continue to normalize. In looking at the 10-year treasury as of this writing, it sits at 4.181%, which is down from 4.425% as of our last publication. We’ll dive into the subject of “the yield curve” in a future discussion but we’re starting to see the yield curve flatten, meaning shorter-term rates equal to or lower than longer term rates, which is the sign of a “normal” rate environment and “healthier” economy. 

Second, I’m grateful that the aircraft buying market has seemingly adapted to the current interest rate environment. While rates remain elevated compared to recent memory, we continue to see stable or increased loan demand and are hearing the same from peers. Even with interest rates where they are, it’s still a great time to consider financing. 

And speaking of peers, for my third gratitude, I’m grateful for our industry peers who specialize in aircraft lending. It’s clear through reviewing the data from FAA filings, these financial institutions remain engaged in the industry and appear to be positioned well for continued ability to serve the industry in 2024. It’s a reminder of the value of working with a financial institution who understands how to finance an aircraft, and something to keep in mind should you be exploring financing or refinancing. 

Looking forward, I think 2025 should bring some clarity on where rates, and the economy, go from here, and we’ll dive into that in our publications early next year. In the meantime, I hope you enjoy the rest of the holiday season!

‍

Thinking about entering into an aircraft lease agreement? You’re not alone—many aircraft owners wonder, "Can I lease my aircraft to others or third parties?" The answer is yes!

But, like any important decision, it comes with responsibilities. Specific insurance policy terms and exclusions need attention when setting up a Part 91 lease agreement.

Contact an Aviation Attorney

Before you proceed, consult an aviation-specific attorney. They can draft a formal dry lease agreement tailored to your specific needs. Aviation-specific law firms understand both insurance contracts and the Federal Aviation Regulations (FARs), ensuring full compliance with legal and insurance requirements.

Be sure to designate pilot services separately from the aircraft lease itself. These agreements must be structured correctly to comply with Part 91 regulations, keeping the operations fully legal and insured properly.

Involving Your Insurance Broker

After your attorney prepares the dry lease agreement, submit it to your insurance broker. They will then send it to the underwriter for review. Of note, not all carriers permit dry leasing, so informing your broker early helps avoid policy restrictions or potentially the inability for your insurer to allow adding a dry lease.

Underwriting and Policy Costs

Most insurers allow dry leases but may limit the number of lessees that can be added. All dry leases, when approved by the insurer, will be subject to flat fees, typically ranging from $1K-$5K per lease. Some adjust costs based on the flight hours planned by the lessee.

Liability & Coverage Considerations

Once approved, the lessee is added as an additional insured on the policy. Lessees may also consider excess liability policies for additional coverages over and above the lessor’s policy limits. Keep in mind, these can be costly and difficult to obtain.

Aircraft Lease Agreements: Protecting All Parties

Liability limits are shared between the lessor and lessee. Work with your insurance broker to ensure adequate coverage. The lessee should receive a certificate of insurance confirming additional insured status and relevant policy terms.

Conclusion

Entering an aircraft lease agreement requires careful planning, legal compliance and insurance coordination. Partnering with experienced aviation attorneys and insurance brokers can simplify the process and help secure the best terms.

Aviation entrepreneurs and high achievers are naturally talented at setting and achieving goals. But we also tend to neglect our self-care. We push forward. And as Aviation pioneer Otto Lilienthal put it, “Sacrifices must be made.” 

But what if you could prioritize both performance and our well-being?

This five-step annual review, inspired by Tiago Forte, helps you reflect on 2024 and charge into 2025 with purpose and energy. Following the article is a checklist to use to really get your juices flowing.

‍
1. Start with Gratitude

It all starts with gratitude. Want less stress and anxiety in your life? How about better sleep and heart health? Research shows practicing gratitude could be the way. 

By actively practicing the art of gratitude, you can transform your outlook and improve your well-being. It also reduces stress, enhances sleep and supports heart health.

Reflect on 2024 by listing everything you're grateful for—people, achievements, and experiences. Use your phone’s calendar and photos to jog your memory.

Aim for at least 100 items. High achievers often focus on shortcomings, overlooking accomplishments. This practice helps you see the true fullness of your year and fosters a sense of appreciation.

2. Conduct a “Hotwash” on 2024

Borrowing the concept from the Air Force, a “hotwash” is the immediate "after-action" discussion following an exercise, training session or major event. 

In the case of an annual review, this is your chance to review your wins, challenges and lessons while they’re fresh. A personal “hotwash” isn’t intense, but it’s impactful.

Identify three wins and the biggest lessons learned. Ask yourself: What worked? What didn’t? How can you improve? Then use these insights to sharpen your focus.

3. Visualize 2025

Dream big. Picture the year ahead like planning a dream vacation. Don’t get bogged down in details; focus on the experience.

What will make 2025 extraordinary? Imagine the sights, feelings and energy of your ideal year. Let curiosity guide your vision.

4. Set Your Intention

Henry Ford said it best: “Whether you think you can or you think you can’t—you’re right.” Set specific, actionable goals for next year.

Less is more. Narrow your focus to three priorities. When everything feels important, nothing gets done.

5. Take Action

Feeling inspired? Don’t stop now. Plans often fail when action isn’t taken. Overcome procrastination by scheduling the smallest next step.

Block time on your calendar. Progress happens one small, deliberate action at a time.

Bonus: Make It a Family Affair

Include your family in this process. My family and I have completed an annual review for nearly a decade. We gather, share our insights and have fun with music, snacks and laughter.

Last year, my kids even invited their friends! The shared experience fosters connection and sets a positive tone for the new year.

As you wrap up 2024, reflect with gratitude, set intentions and act boldly. Here’s to a successful and fulfilling 2025.

Annual Review

1. Gratitude List:

• What are the people, places, things and successes you’re grateful for in your life this year?

2. Hotwash 2024: 

• List your three top wins for the year.
• What are the biggest lessons you’ve learned this year?
• What risks did you take?
• What was your most loving act of service?
• What unfinished business do you have from this year?
• What are you most happy about completing?
• Who were the three people that had the greatest impact on your life this year?
• What was your biggest surprise?
• What compliment would you have liked to receive?
• What else do you need to do or say to feel complete with this year?
• What one word or phrase best sums up and describes your experience this year?
• What stories from last year are you letting go of?

3. Visualize 2025:

• What would make 2025 your best year ever?
• What new habits can you cultivate to achieve your goals?
• What bad habits can you remove to help you reach your goals?
• What are your immediate next steps to achieve these goals?
• What would you like to be your biggest win?
• What advice would you give yourself?
• What are you planning to do to improve your financial results?
• What are you most excited to learn?
• What do you think will be your biggest risk?
• Who or what, besides yourself, are you most committed to loving and serving?
• What about your work are you most committed to changing and improving?
• What undeveloped talent are you willing to explore?
• What brings you the most joy, and how will you do or have more of that?
• What one word or phrase would you like to have as your theme?

4. Set Your Intention:

• Add new goals and projects
  
  

5. Get Started: 

• Use a task tracker and your calendar to carve out the time for the next steps.

‍

The largest aircraft operators in fractional ownership, Netjets and Flexjet, have had incredible year-over-year growth. 

Just look at the data that comes out of Wing-X Advantage weekly bulletin to see their rapid growth since the pandemic. But why are more UHNWI and corporates choosing to go the fractional route as opposed to traditional aircraft ownership or charter?

Two key factors: simplicity and consistency.

I write a weekly newsletter on business aviation trends, where I explore the economics behind the various ways of flying private including charter, fractional and whole aircraft ownership. 

The feedback I get from many newsletter readers is that the attraction of fractional is the simplicity. They don’t want to go through the process of vetting a management company, hiring pilots or finding hard-to-find hangar space. It’s a hassle to get aircraft insurance and oversee maintenance. 

So why are these clients fractional ownership over charter–especially when charter ends up being relatively the same annual spend? 

It’s the consistency.

Fractional owners at NetJets, Flexjet, PlaneSense, and similar providers, know what to expect. The client knows the experience that they’re going to have in regards to safety, cleanliness and reliable scheduling. Ad-hoc charter lacks the same consistency because the operator can change with each trip, making the experience less predictable.

Fractional ownership offers simplicity, consistency and tax benefits not found in charter. But I’ll stay in my lane and let Angel explain the tax advantages.