What am I buying when a jet charter company manages other people’s aircraft?

A jet charter company often flies two kinds of aircraft. Some it owns outright. Others belong to private owners who hand them over to be managed and chartered when the owner is not flying. Those are very different assets. Sort the fleet into owned and managed, because what you actually acquire, and what could walk out after closing, depends on that split.

Owned aircraft and managed aircraft

Owned aircraft are assets the company holds, perhaps with a lender behind them. Managed aircraft stay with their owners. What you buy there is the right to manage them, under an agreement that can end. Ask for a clear list showing which tail numbers fall in each group, who holds title, and which are leased. Your lawyer can confirm title and the ownership rules.

Management agreements

Read every agreement. Look at the term, how either side can end it, and how much notice is needed. Check how charter revenue is shared with the owner, and who pays maintenance, crew, insurance and hangar costs. Ask whether the agreement can pass to a new buyer or needs the owner’s consent. Owners who are unhappy with a change may simply leave.

If owners leave

Ask the seller which owners have been with the company longest and whether any are likely to stay. Speak with the key ones before closing, if the seller allows it. If several aircraft leave, you keep the crew costs and hangar commitments but lose the revenue, so ask how the deal handles that. The valuation guide for air charter operators explains what shapes this, without giving you a number.