Case Study

Fixed Base Operator, Connecticut

Solution 1: Refresh Artwork Annually

The Client decides to a 1 year lease of a $20,000 coffee table that is built from an R-2800 radial engine on a quarterly payment plan at a rate of 5% of the sales price of the art.

At the end of their lease, the client experienced increased customer satisfaction and success due to the impactful use of art in their lobby. However, they noticed a decrease in their operational budget. To maintain a refreshed look in the lobby, they opted for a new one-year lease for a $10,000 artwork, enabling them to preserve the benefits of the art while reducing their monthly costs.

Client:
A fictional Fixed Base Operator (FBO) undergoing a renovation of their customer lobby.

Objective:
The renovation aims to enhance the customer experience and create a high-end gateway for the increasing number of corporate and high-net-worth individual (HNWI) private jets using the airfield. The client requires a statement piece for their lounge but faces constraints due to a nearly fully allocated capital expense budget dedicated to core infrastructure upgrades.

Challenge:
Upon reviewing their finances, the FBO identifies that there is flexibility within one of their monthly operational budgets, allowing them to consider leasing a high-quality art piece without impacting their capital expenditure.

Solution 2: Lease to Purchase

The Client decides to a long-term, 2 year lease of a $30,000 display that incorporates the original prop and engine of a B-25. The payment plan is annually at a discounted rate of of 3% of the sales price of the art.

After the two-year lease expired, the client received such positive feedback on the display that they decided to purchase the piece. They effectively used the lease payments as interest-free, tax-deductible installments, which helped lower the final purchase price of the artwork.