Things to Consider When Selling an Air Charter Company

Michael Wildes

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

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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, involving an investment banker to determine valuation and identify potential buyers such as competitors, vertical partners, or investors.
The most critical and unique asset is the air carrier certificate; while it cannot be sold directly, selling the entity that holds the certificate allows buyers to bypass the rigorous, time-consuming FAA certification process and retain established operational authorizations and specifications.
Beyond the certificate, other key valuation factors include human capital (pilots and staff), aircraft (owned or leased), brand reputation, existing customer contracts, and the client base.
For tax purposes, it is essential to itemize and separate tangible assets (e.g., equipment, real estate) from intangible assets (e.g., intellectual property, brand, operational procedures) during the sale.

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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.