Making Your Business Jet Available for Charter
Posted on January 8th, 2019
A interesting story on Business Jet Traveler by James Wynbrandt talks about how to proceed if you want to make your business jet available for charter:
Perhaps you own a business jet and have been thinking about making it available for charter. That’s not always a great idea (see below) but if it makes sense for you, it can offer a rather painless way to recoup some operating costs. Here’s how to proceed.
First, find a few quality operators who have demand for the model or category of aircraft you own. You can locate such operators through AirCharterGuide.com. Ideally, you’ll turn up ones near your aircraft’s base, so both you and the operator that you ultimately select can maintain easy access to the jet. But a few charter/management companies will operate an aircraft from wherever it’s based. These companies “have a strong [charter management] structure in place, and you essentially have your own flight department that acts as a remote operation,” said Mike Nichols, a vice president at the National Business Aviation Association. “It’s like having an independent franchise.”
Check the safety record and history of all companies you consider working with, find out about their charter sales teams and visit their bases to get to know the people and operation firsthand.
Charter revenue policies vary. Some operators negotiate rates on a trip-by-trip basis, with the owner typically receiving about 15 percent, while other operators pay owners a set hourly rate for use of the aircraft. There’s negotiating room in all these deals, but if you squeeze the operator hard, it will have less incentive to charter out your aircraft than a similar one in the fleet that gives the company a better return.
Keep in mind that charter revenue is just one aspect of the financial equation in a charter/management agreement. Savings that a management company can offer on fuel, hangaring, insurance, crew training and other operating costs may be more significant. Given the complexity and the sums at stake, you’d be wise to enlist the services of a consultant before reaching your final decision.
JetOptions can help you if you want to make your jet available for charter. Contact Gus Lira at 972-764-3563 for more information.
