Business Aviation Update from Trusted Advisors: Separating Fact from Fiction
AIN Webinar
GKG Law's Keith Swirsky was invited to serve as a panelist for the Aviation International News (AIN) webinar "Separating Fact from Fiction," which took place on October 6.
Keith and his co-presenters, Mesinger Jet Sales CEO/President Jay Mesinger and Solairus Aviation Chairman/CEO Dan Drohan, shared candid insights and opinions on the real state of the business aviation market, what to expect through 2021, and strategies for managing during a crisis while targeting new business opportunities. The session was moderated by AIN Editor-in-Chief Matt Thurber. This webinar was well suited for first-time buyers and seasoned owners and operators. Attendees learned:
- The new baseline for business aviation operations and sales
- What are companies doing to survive and thrive in today’s market
- How to qualify for bonus depreciation
- Liability protection planning, plus use of LLCs and their true benefits
- Whether charter use of an aircraft provides benefits in addition to subsidizing fixed costs
A recording of the webinar can be found here and AIN's written recap of the session can be found here.
"…GKG Law president Keith Swirsky said he too is seeing a lot of first-time buyers, particularly in the area of fractional ownership. 'Those tend to be buyers that do not have business use for aircraft and they are specifically having conversations with me about not wanting to fly commercial.' The customers have not experienced much private aviation, he said.
'They're looking for other options such as block charter from a management and charter company or any other kind of products or derivative products that are in the marketplace today,' he said.
Also, he is seeing a lot of tax-, financing-, and pricing-motivated purchase decisions. 'I'm seeing a lot of strategic buyers, trying to obtain a big write-off, low cost of financing, and an attractive pricing environment,' he said.
Swirsky said there have been incorrect assumptions associated with how quickly a deal can get done because, with much more financing ongoing, the process has slowed. 'Financing has become the long pole in the tent,' he said."
