Things to Consider When Selling an Air Charter Company

Michael Wildes

Friday, May 13, 2022 at 08:44 AM ET

Verified

One unique characteristic of a charter company is that it has an air carrier certificate. [FLYING Archives]

Key Takeaways:

Selling an air charter company generally follows standard business sale practices, including hiring an investment banker for valuation and identifying potential buyers from competitors, vertical partners, or investors.
A critical and unique asset for an air charter sale is the entity holding the Air Carrier Certificate, which, while not directly salable, offers significant value as obtaining a new one is a lengthy and complex FAA process.
The value of the existing Air Carrier Certificate is tied to its specific FAA-authorized operational scope, including types of services (interstate/intrastate), operational limits (e.g., passenger seats, payload), and OpSpec designations (e.g., single-pilot, Part 135 standard).
Beyond the certificate, other key valuation considerations include human capital (pilots, staff), owned or leased aircraft, brand, customer contracts, and the existing client base, with tangible and intangible assets requiring separate appraisal for tax purposes.

See a mistake? Contact us.

Selling an air charter company is not much different from selling any other company, save for a few things.

In general, if someone is looking to sell their company, one of the first things to do is hire an investment banker. They’ll be able to prepare the financial information for the business to determine a valuation for the company, which the seller can then use to go out to the market and identify potential buyers or acquirers from the company.