Owners are frequently distressed about large invoices coming from aircraft managers. When they ask questions the answers are often so coded or technical that they are incomprehensible. Many owners develop doubts and start looking for help.
But help is difficult to find. Conventional legal or accountants are often no better equipped to identify the problems and abuses than the owners themselves. Many corporations ask in-house accountants to review aircraft manager’s invoices. While accountants are skilled in accounting protocols, the ability to assist is very limited without a good understanding of what is actually being accounted. The same is sometimes true for lawyers. Knowing contract law is one thing. Understanding what is being done under the contract is entirely another matter. Specific aviation expertise is the first and most basic step to getting answers.
We know the steps to follow. They begin with determining whether past charges were within reason as determined by aviation experts. A detailed invoice review that includes three or more months’ worth of management billings is a good start. Any problems such a review exposes will determine the best next steps.
Any contentious items can be reviewed in more detail with the management company’s personnel.
If answers are satisfactory, periodic follow-up reviews are wise. However if doubts involving large costs remain a review of: (a) the payables; (b) billing procedures in place, and; (c) contractually-defined rights of review are usually necessary. In extreme cases a change in management may be prudent.
Above all else an Owner’s money should not be wasted. Owners need certain knowledge in clear language that confirms the value being received. Having controls in place is basic due diligence of importance to High Net worth Owners, Corporate Owners and shareholders alike.
The Aviation Home Office offers owners access to qualified independent experts who can detail both the areas of waste and effective mechanisms to stem costs. Independent professional advice will save time, money and eliminate uncertainty – all at minimal cost.
Simply stated, The Aviation Home Office levels the field between the aviation insiders who are sending out large invoices to owners who have limited aviation knowledge. It is all about helping to ensure the owners are keeping their money smart.