In addition to the costs of acquisition, prospective buyers must consider the costs–especially insurance and taxes–they will incur once they own the aircraft. To that end, aircraft management contracts with well thought-out insurance provisions should be integral to the aircraft acquisition process, said Bill Kingsley, an account executive with the Addison, Texas-based brokerage AirSure. He discussed the pros and cons of insurance being supplied by the aircraft owner or the management company. One factor working in favor of the management company providing
the coverage is that the size of a covered fleet generally results in better coverage.
Kingsley emphasized the necessity of constructing a proper aircraft management contract to ensure that the interests of both parties are fairly represented. “This is more important than the insurance policy itself. You should have an aviation attorney go over it,” he advised.
