August 30, 2021
The Cost-Benefit Analysis of Refurbishing a Private Jet
Is It Worthwhile to Upgrade Your Business Jet’s Cabin? Let’s Find Out!
With decreased production of new private jets and an increase in demand for pre-owned jets for sale, current owners and prospective shoppers alike may be considering the overall value of aircraft in less-than-desirable condition.
Avionics and functional upgrades aside, one of the simplest ways to bring a business jet up-to-date is to overhaul its cabin’s interior with durable, easy-care finishes that usher it into the modern era, even for decades-old planes.
Even the act of carefully selecting certain upgrades over others can increase the value of your used private jet, or at least make it more comfortable and usable for business travel.
The Value of Business Jet Cabin Refurbishment
If your company has been involved in the private aviation industry for any amount of time, no doubt your CFO has conducted a cost-benefit analysis of owning a private jet. But analyzing the financial implications for refurbishing one isn’t as straightforward.
What kind of ROI can you expect from an aircraft refurbishment? What features are in-demand right now in the world of private aviation?
Industry experts estimate that a used private jet with a nearly-perfect interior can increase a jet’s value by about 20 percent. Conversely, a private jet with a lackluster interior that clearly needs cleaning and repair could drop the value by the same amount.
To determine whether a refurbishment is worth it (over purchasing a newer private jet for sale), you’ll need to compare the cost difference between the two options, taking into account the remaining useful life of your current jet, plus all the added fees that come with completing a purchase, including commission for the broker, FAA fees, and more and comparing it to the cost of the refurbishment.
And while your conclusion may not show a strong positive net present value, there is still an inherent value in operating and owning a private jet that is both functional for your executive leaders and objectively beautiful inside.
Warranties on Work and Materials Add Value to Your Overhaul
For any work you have done to your aircraft, it’s vital that you inquire about warranties that guarantee work and equipment for a set number of years. In fact, reputable refurbishment providers offer them.
If you opt to sell your private jet after refurbishment, you may even be able to transfer that warranty to the new owners. Or, if you purchase a jet soon after refurbishment, your company may be eligible to get warranty benefits.
Business Jet Upgrade Options
Factor in the value of a refurbishment along with the cost of a business jet when conducting your cost-benefit analysis.
The upgrade in highest demand that offers the best overall value is high-bandwidth connectivity. It makes sense; without connectivity, your company’s travelers can’t get work done while in the air.
If you plan to purchase a new-to-you used private jet, you’ll want to ensure it offers connectivity; if it doesn’t, you’ll want to complete the upgrade quickly after closing.
Cabin Management Systems
Modern private jets come standard with cabin management systems with robust entertainment options and easy-to-use, touchscreen controls. Older private jets may not be so well equipped.
A streaming server that utilizes high-bandwidth connectivity is also a popular upgrade; it allows passengers to stream video to their personal smartphones or tablets for leisure time on long-haul flights.
Interior Decor and Finishes
If you’ve flown with a jet card or on charter flights, you’ve likely noticed that the aircraft interiors of the planes you’ve boarded have been remarkably similar, if not in layout, then in materials and color choices.
This is because charter operators and jet card companies have chosen to upgrade their jets’ interiors to create a consistent look and feel to emphasize their branding.
And while branding may not be your biggest concern for your business’s private jet, you may find that elevates the travel experience of your executives.
The most popular finishes are those that are durable, neutrally colored, modern, and that don’t require much specialized upkeep. There’s something to be said about the ability to quickly clean a jet after a business trip and have it ready to go again in mere hours. Materials must also pass a mandated burn test.
Shop for Refurbished Private Jets for Sale
Companies on a strict budget will find satisfaction with older pre-owned aircraft that have been overhauled to meet the modern business traveler’s needs. If you're unsure where to buy a private jet, start your search on AircraftExchange.com, the only listing website carefully vetted by the International Aircraft Dealer Association (IADA).
AircraftExchange also can connect you with IADA Accredited Dealers who can help you facilitate this important purchase. IADA Accredited Dealers have earned the respect of their peers and reputable aviation service providers alike.
Shop for preowned jets for sale, and contact an aircraft dealer to complete your purchase.