The Final Approach
One last time, Mateo poured over the finances of NetJets’ offering, fusing the economics of the deal with what he had viewed during his tour and demonstration flight. He prepared to study every line of the contract, knowing he could negotiate certain points—a fact of which he was unaware when he purchased his Flight Options share.
While a traditional lawyer can help a client negotiate fractional ownership documents, Quinn says an aviation professional can better understand the flexibility of the contract. Also, providers regularly alter documents for clarity or risk-management purposes, which can muddy the language for prospective owners with no or little experience. Quinn recommends that an aviation-familiar lawyer perform the following:
• Define the language. A word that could be included in a contract is "substantially." For example, a contract could stipulate that a provider could substitute an aircraft for the owner’s plane that is "substantially" the same. This means if an owner’s light jet is not available, the provider could possibly deliver a turboprop as a substitute because it could be considered a "substantially" similar aircraft. Such vague language needs to be defined and tightened.
• Negotiate surcharges. If your travel requires a significant amount of short-legging or international flights, you will want to request that specified destinations be exempt from additional charges.
• Inquire about resale options. If you owned a Flexjet share, for example, you could insert a stipulation that guarantees 100 percent resale value of your share. You could state that if you decide to buy a whole aircraft from Bombardier, Flexjet’s parent company, you could sell back your fractional share at its full cost, ignoring depreciation. "You could say you want to own your own Lear 60 someday, but it might take you a couple of years to figure that out," Quinn explains. "They will do that. They’re in the fractional business, but they want to sell planes. If you tickle their fancy by saying you will buy a whole plane, they will bend over backwards for you."
During the peak of his decision-
making process, Mateo would call Aviation Management Systems regularly, often flip-flopping from the declaration he had made previously. "Whenever he called, people would say, ‘What’s he doing now? What’s he doing today?’ It was fun," Quinn remembers.
In September, the calls stopped. Mateo had decided to purchase a NetJets share, but he wanted to negotiate the deal himself. Quinn was not surprised. He had gotten to know Mateo quite well by then and figured the businessman was doing what he knew best. "There’s no question," Quinn says, "that he likes the thrill of the deal." Additional Information
 Excel-lent Choice
Resources
NetJets, 877.356.5823, www.netjets.com;
Aviation Management Systems, 800.431.3362, www.amsconsultants.com
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