For many business aircraft owners, the N-number on their jet is more than just a registration—it’s a part of their brand identity, a personal touch, or a symbol of a significant milestone. When it’s time to put a used business jet on the market, the decision to sell the aircraft but retain the N-number carries important implications for the business aircraft sales process. Understanding the FAA procedures and the practical steps involved is crucial for ensuring a smooth and successful transaction.

WHY OWNERS RETAIN AN N-NUMBER

There are several compelling reasons for an owner to keep their aircraft’s registration number.

• Brand Identity: For corporations, the N-number may be a recognizable part of their company’s branding. By retaining the number, they can transfer it to a new corporate plane and maintain consistency.

• Personal Significance: Many individuals choose their N-number for personal reasons, such as initials, special dates, or lucky numbers. Retaining the number allows them to carry that personal connection to their next aircraft.

• Future Use: An owner might not have a replacement aircraft lined up immediately but wants to secure the N-number for future use. The FAA allows for this, provided the number is reserved.

THE PROCESS OF RETAINING YOUR N-NUMBER

Retaining an N-number is a multi-step process that requires careful coordination during the sales transaction.

1. Request for Retention: The owner must formally request that the FAA retain the N-number. This can be done in writing at any point during the N-number change process.

2. Negotiate with the Buyer: The decision to retain an N-number must be a negotiated term of the sale. The parties need to determine who will bear the cost and responsibility for the number change. A buyer expecting to take ownership with the existing registration may be surprised to learn it will be removed.

3. Timing the Paperwork: It is advisable to file the request for the N-number change with the FAA at the same time the closing documents are submitted to the registry. Waiting until after closing can cause unnecessary delays, as the FAA will not process a transfer of ownership if a number change is pending.

4. FAA Approves and Assigns a New Number: The FAA will cancel the old N- Number’s assignment to your aircraft and reserve it for your future use. It will then assign a new, temporary N-number to the aircraft for the buyer to use. The new number can then be changed at a later date by the buyer.

5. New Number on the Aircraft: Once the FAA has authorized the number change, the new N-number must be physically placed on the aircraft. This can involve new decals or a repaint.

POTENTIAL PITFALLS TO AVOID

• Communication is Key: Poor communication between the buyer and seller regarding the N-number can cause significant friction and transaction delays. The purchase agreement should clearly outline the N-number change process, timelines, and cost allocation.

• FAA Backlogs: The FAA can experience processing backlogs, which can delay the reservation or assignment of an N-number. While owners can’t control the FAA’s timeline, being aware of potential delays is critical for managing expectations.

• Uncertainty and Closing: A buyer may be hesitant to close if the registration process is not clearly defined or if there is uncertainty about the new N-number’s assignment. Work with a qualified aviation attorney to ensure all contingencies are covered in the purchase agreement.

• Privacy Concerns: The FAA has implemented procedures for owners to request that their private information be withheld from public view. This is a consideration for sellers who are sensitive about their aircraft’s public registration history.

A SEAMLESS TRANSFER FOR BUSINESS AIRCRAFT SALES

Retaining an N-number when selling a business aircraft is a straightforward process, provided it is managed carefully and with transparency. By starting the process early, clearly communicating your intentions with the buyer, and working with experienced aviation legal counsel, you can ensure that your personal or corporate brand is protected and that the business aircraft transaction proceeds smoothly.

Holstein Aviation’s team of IADA certified professionals bring decades of transaction experience, real-time market intelligence and global reach. We guide our clients through every step of the process, ensuring confidence and clarity in today’s dynamic environment. The Holstein Aviation team understands the importance and significance of retaining certain N numbers for clients and can smoothly assist you through this process should the need arise. Holstein Aviation is your trusted partner in business aviation sales and acquisitions.