A conversation with Nick Copley, Co-author of The Airplane Buying Guide.
Often, ideas for informational books begin with conference data; numbers that CEOs discuss, then move on. This often happens with the new, recently published book (October 2022) titled Airplane Buying Guide for 2022. It was published by SherpaReport, an online virtual publication since 2006, providing provides valuable information and analysis to UHNW customers, enabling better informed decision-making in purchasing a private jet, or investing in a jet pass, or buying a part, leasing or owning it all. jet sets, yachts and other travel options. Because it is unique, Sherpa’s consumer and business membership base has grown exponentially over the years, and with the publication of this book, it is likely to grow even more.
SherpaReport was founded by President and Senior Analyst Nick Copley. As an online media and publishing executive, he has dedicated his career to building and growing various media and information businesses. Nick has had in-depth discussions with many of the top suppliers and operators of jet, yacht and destination clubs, as well as innovative startups, in the private aviation sector. personal and luxury travel. The result is insider knowledge, acumen and insight that is reflected in the quality of the comprehensive content available on SherpaReport. And now, the book.
Recently, Nick attended the NBAA (National Business Aviation Conference) in October 2022, where a keynote speaker presented an interesting statistic: In 2021, 40% of people buy a private jet The employees are new buyers, often young people. This interests Nick as he is writing a book that helps solve the puzzle many potential private jet buyers have discussed with him – aside from money, what it takes to buy a new or used private jet. used? What are the criteria and what kind of grouping must be established so as not to make financial mistakes? This book, The Airplane Buying Guide, solves the puzzle, as it explains why to own, why NOT to own, the steps in the process, and other legal and tax issues in purchasing an aircraft. private. Furthermore, the 2021 stats from the NBAA interest him: 710 new business jet purchases, Turboprops 527 purchases; aircraft with piston engines, 1,393 were purchased.
JustLuxe recently completed a business conversation with Nick Copley, about the reasoning behind buying a jet or not; groups needed for such a purchase and is generally the reason for the huge increase in private flying after the pandemic.
JustLuxe: How do you think the pandemic has changed the perception of private flying?
nickname: Historically, for many years, the most important reason people gave to fly privately was to save time. This is expected to continue to be one of the main reasons going forward.
The pandemic has brought many new passengers to private airlines for the first time. They are attracted by the relative health and safety of private aviation compared to commercial flights – going through private terminals is much quieter and having the plane to itself. But once they flew privately, they experienced other benefits: time savings, flexibility, privacy, quality of service and convenience, to name just a few.
JustLuxe: You mention dealing with alternatives to owning. Do you have some statistics on being, post-pandemic, the most popular alternative as of 2021-2022?
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nickname: Private aviation hit record levels in 2022. Early out of the pandemic, contract ownership and leases first began to hit record levels, and at the start of the pandemic, jet aircraft Light engines and turboprops were flown, because most of the trip was within the United States.
Owner-owned planes took a little longer to start hitting records — some of these are owned by corporations that didn’t travel much at the beginning of the pandemic. And now, we’ve come a few years after the pandemic broke out and with the opening of international markets, planes with larger cabins now have more flights.
JustLuxe: In addition, your explanation of the travel needs of a potential UHNW buyer includes thinking about what and how to assess personal and professional requirements, in terms of purchasing a new jet or used. In your personal experience, as a Publisher of Sherpa Reports, you’ve heard of the problematic consequences of buying a jet based on the glamor of NEW rather than real finance yet?
nickname: New versus used Always an interesting part of the buying discussion. Newer aircraft cost more but are often more fuel efficient and can be included in the manufacturer’s maintenance plan, which makes operational budgeting much simpler. At the same time, new aircraft, in a normal market, depreciate faster. In other words, buying used planes can earn you more planes than you paid for.
It’s always a balance between wants and needs. There are certainly stories of people who buy more out of a want than a need, or are influenced by sentiment rather than financial discipline. Every buyer is different and motivated by different requirements. A good advisor will guide someone through the buying process and help avoid major financial mistakes.
JustLuxe: How important is an airline lawyer in buying a jet? What problems can be well solved by this type of lawyer?
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nickname: Aviation is a highly regulated industry, so having an expert on all of these regulations is quite important. Someone with an aviation focus will have experience with many aircraft deals and will know the steps to take as well as those to avoid. They can advise on ownership structure, compliance with federal regulations and can also cover all the complexities of airline taxes.
JustLuxe: Your book says, “An important question often revolves around chartering an aircraft to cover some expenses, and this is another area where previous experience with the type of aircraft can make a lot of difference. .” Can you explain the difference?
nickname: Renting your plane can help offset some of the cost of ownership. But aircraft managers are different, and some generate better rental revenue than others, and some are better with certain types of aircraft simply because they have experience with that type of aircraft. and there may be a list of aircraft charterers who prefer that aircraft type and size.
JustLuxe: Some of the most relevant explanations in your book revolve around detailed needs assessment and analysis charts, created by Paul La Fata, renowned aircraft budget analyst. Is this process more helpful to a longtime or new buyer?
nickname: This process applies to all buyers whether they purchase the first aircraft or the fifth aircraft. Needs change over time, so assessing to understand those current needs and wants is an important early part of any purchasing process. A good aviation professional will know the right questions to ask to facilitate this research and evaluation process.
JustLuxe: Your book clearly identifies problems and solutions for corporate aircraft acquisition, five types of operating costs, recommendations regarding the purchase and maintenance of private aircraft, considerations Legal and tax, pre-purchase checks, insurance types and checklists at the end. If you’ve done the second edition of this airplane buying guide, can you add any other thoughts, tables, and ideas?
nickname: We very much plan to update the Guide every year as things change frequently in the market. We have included cost tables, as examples, for many aircraft types and this changes over time, so we will update these tables annually to give our readers new numbers. help them make decisions.
In writing this book, we contacted a number of experts in specific areas, such as aviation law and tax and airline insurance, and we will speak with them in the future to cover to any major variation. But the essential steps, buying process, advice and information likely won’t change.
JustLuxe: And finally, what problems have you seen in buying or renting an aircraft that you think this book will help with?
Nick: Over the years, I’ve talked to a lot of people who say that a lot of things about private airline costs are confusing and unclear: the truths that should be straightforward often aren’t. I’ve heard questions like, what are the different ways I can fly privately, what’s the difference between a pass, membership, and part ownership, and what’s the cost of each.
The goal is to bring those parts together in one place to help the buyer solve the puzzle. The book can help them become smarter buyers for their first purchase, by providing guidance on what’s involved. In other words, I contributed to the writing of the book to bring clarity to a potential private airline pilot; simply help them understand what their options are, how each option works, what it offers, and how much it costs. A big purpose of the book is to help bring clarity to a potential private airline client. Simply help them understand what their options are, how each option works, what it offers, and how much it costs.