ARE CONTRACT TERMS AND PRICES NEGOTIABLE?
Q: How negotiable are fractional deal terms? A: Some provisions are very negotiable and some are not negotiable at all. What is or is not negotiable varies by aircraft, buyer, operator and prevailing market conditions. Most operators track deal concessions by some form of internal pricing or cost controls, and prohibit sales personnel from exceeding such guidelines. Nevertheless, all programs make efforts to fit a customer’s economic circumstances, special needs, and/or “mission profile.” Q: Do the purchaser or the purchaser’s advisors need assistance in the purchase of a fractional interest? A: Yes, unless the buyer and its advisors are sophisticated in matters of aviation and aviation law and have experience in negotiating aircraft transactions. Most buyers, even if sophisticated, will want help on what amounts to a multimillion dollar, multi-year commitment. Most other buyers need help in deciding which is the best aircraft for their existing and anticipated needs and then deciding
