The EAS Programs
Flexibility and versatility are what set EAS apart from other fractional ownership programs. EAS offers potential owners an array of innovative methods of ownership never before offered. Competing fractional ownership programs offer few options to participants, and generally require monthly management fees, hourly airtime charges, depreciation expenses and, in some cases, direct maintenance costs for the aircraft.EAS offers three unique Limited Liability Ownership programs that cover all of the costs associated with an owner's participation level through a single, up-front fee that covers all the owner's airtime for the entire term of the contract, resulting in substantial savings to the client. Additionally EAS offers a similar conventional fractional ownership program as well as a co-ownership program, plus aircraft leasing and financing.
It is important to note that when analyzing your choice between EAS Limited Liability Aircraft Ownership (Programs 1-3) or EAS Conventional Fractional Ownership (Program 4), to consider your option of paying the monthly management and hourly fees for the next ten years (120 payments) or paying a one time up front Flight Ops fee equal to approximately two years of payments and having the benefit of flying for the next ten years with no further costs.
For purposes of comparing the following programs we have used the cost per hour determined by a 200 hour per year participation in a Challenger 604 aircraft over a ten year period.
Program 1: EAS Cash Participation
By utilizing a Purchase/Re-Purchase Agreement, individuals or companies may participate in an aircraft through the purchase of units in the LLC that owns the aircraft. Owner participation is secured at all times through a major financial institution. Owners may want to take advantage of certain tax benefits available to them through this program.The Cash Participation Program represents the most affordable way to fly, representing unprecedented savings. A one-time initial investment in the aircraft and ‘flight op’ fees is due at closing. There are no monthly management fees or hourly airtime charges thereafter, for the duration of the 10-year contract. Owners simply call and fly.
At the term of the contract, EAS guarantees to repurchase 80% of the capital outlay for the aircraft. The flight ops stock purchased to cover the expenses incurred by the aircraft over the ten year period, is not recapturable.
Effective Hourly Cost approximately $1,652 / hour.Program 2: EAS Marginable Asset Participation
This program is designed to optimize participation for individuals or companies with marginable asset portfolios, stocks, CDs, treasuries, etc. Clients retain dividends (by separate agreement) from their selected stocks or assets, while the assets are held in escrow by a major US security firm or bank, in exchange for the client’s selected participation in the aircraft.An LTV will be determined by EAS analysis of the stock and a margin loan granted. Again, participation is through a stock swap or participation in the LLC units. At the term of the contract the owner’s stock utilized for the purchase of the aircraft will be 80% returned. Stock utilized for flight op fees, the expenses incurred for the use of the aircraft, are not recapturable but may be repurchased by the client at his option.
During the term of the contract the client may substitute stock assigned to EAS for other stock of equal or greater value. Normal margin call terms and conditions will apply. Acceptability of the stock is at the sole discretion of EAS. Once the transaction is complete, there will be no monthly management fees or hourly airtime charges for the duration of the 10-year contract.
Effective Hourly Cost approximately $1,652 / hour.Program 3: EAS Non-Marginable Asset Participation
This program provides public companies with a mechanism/structure whereby they can issue a series of "Restricted Preferred" stock (either R-144 or free trading) exclusively for their participation in the aircraft. An LTV will be determined by EAS analysis of the stock, and a margin loan granted. A purchase/repurchase agreement would then be negotiated, whereby EAS would agree to repurchase the stock at par value.The obvious benefits of non-dilution of the existing stock and the addition of the aircraft and airtime to the balance sheet of the corporation can be further discussed with appropriate financial advisors. The acceptability of the securities is at the sole discretion of EAS. As with the previous two programs, once the transaction is complete, there will be no monthly management fees or hourly airtime charges for the duration of the 10-year contract.
Effective Hourly Cost approximately $1,652 / hour.PROGRAM 4: EAS Conventional Fractional Participation
Similar to other fractional ownership programs, the initial capital outlay utilizing this program is more costly than that of leasing the aircraft. Financing is available through EAS Capital to qualified clients for up to 80% of the capital outlay for the aircraft. In addition, the capital outlay for the aircraft is re-capturable at fair market value at any time after 24 months, during the term of the contract. As with other conventional fractional ownership programs, management fees and hourly airtime charges will be billed monthly for the duration of the contract.Hourly Cost approx. $5,490 / hour.PROGRAM 5: EAS Leasing and Financing
As leasing an aircraft represents the least amount of capital outlay, in many cases it may be the best option for you and/or your company. EAS leases can be structured as a tax oriented Operating Lease, affording the client tax benefits within federal guidelines or as a Capital Financing Lease offering depreciation on the asset.If you currently own an aircraft EAS can purchase your aircraft and lease it back to you short term while you wait for delivery of another aircraft, or long term as your needs require. Our short term leases range from one to five years.
If you currently own an eligle aircraft, EAS can take your aircraft in on trade against a new or refurbished aircraft of your choice.
For individuals seeking aircraft financing, please refer to the EAS Capital website.
Hourly Cost is determined on a per case basis.
Owners opting out of the EAS Programs 1, 2 or 3 within the first thirty-six months will be billed for their airtime as if they were participating in EAS Fractional Ownership Program 4. In short, the longer an owner stays in the program, the less expensive it is to fly. EAS will reimburse any unused 'flight ops' fees based on unused hours. Other terms and conditions relating to early cancellation will be outlined in the contract. The residual value of your participation in the aircraft is guaranteed at 80% of said investment. This 80% guarantee will remain in place to the end of your ten year contract.Owners opting out of EAS Program 4 within the first twenty-four months may do so with 6 months' prior notice. Appropriate penalties and charges will apply as per the contract. EAS will reimburse any unused 'flight ops' fees based on unused hours.