Posted by Kevin Lippert on Mon, May 11, 2009 @ 01:28 PM
Charter jet cards are normally a prepaid block of number of hours on a type of jet; or probably a specific category of jets which are light, mid-size, and heavy. Even though some card programs charge a higher hourly rate than other charter companies, they guarantee availability of an aircraft and they charge you only for the number of hours you are flying on the plane. The typical hourly rate will be same as that of a chartered plane. If you initially fly on longer trips where it is impractical to keep the plane waiting for you, a charter company will normally charge you for the repositioning, or the least of minimum usage fee of two hours per day; this is to keep the plane at your destination until you are ready to return home.
While with fractional jet programs, customers or owners purchase a share of the plane, instead of the entire plane. The cost is pro-rated from market cost of a full aircraft. Owners or customers then have assurance of access to that plane with as little as four hours of notice. Fractional customers or owners pay a maintenance fee every month and also an hourly operating fee when occupied; this is not the case at all on jet card programs. Charter jet cards do not charge you with this; they only charge you with the number of hours of your flight. The operating fee is charged only when a guest is on board; this is not when the plane is flying to a get to a destination, or returning to the home base after completing a flight.
Posted by Kevin Lippert on Sun, Apr 19, 2009 @ 08:10 AM
Now more than anytime in the recent ten years has the value of chartering a private jet been so economical. There are many factors that contribute to this opportunity.
Many large corporations have sold their private jets, canceled future orders or have placed their private jets into a charter program. This alone has created excess inventory sitting in hangars, and a private charter plane only makes money when the wheels are off the ground.
Another factor is the stigma put on the industry by news organizations, politicians and other activist. This condemnation of the private aviation industry has hurt the operations of the charter companies and fewer planes are being utilized. The competition for utilization is fierce and the private jet client benefits in the current climate of the industry.
This environment has helped the private jet charter industry in a small way by bringing clients back. The industry has seen a slight increase in business, a good sign to many.
Posted by Kevin Lippert on Tue, Mar 24, 2009 @ 09:47 PM
Fractional jet ownership is a business model from the 1980's that has become outdated given that the demand for private aviation has changed in many ways. Utilizing the On-Demand model that allows you to fly when you want, where you want and only pay for the time you fly.
One of the heaviest burdens of fractional jet ownership is that you have fractional responsibility for its upkeep. You pay fees on your private jet even when you are not flying. On-Demand clients get more for their money with no acquisition costs, no monthly maintenance fees and no long-term contracts.
Another benefit to On-Demand private jet charter service is that you are able to travel in any aircraft type or size. Unlike the fractional programs where you are vested in a specific singe private jet, if it is in for maintenance you either fly commercial or charter another private jet at your own expense.
Posted by Kevin Lippert on Mon, Mar 16, 2009 @ 01:49 PM
Fractional Jet Ownership:
I would like to examine some of the real cost associated with Fractional Jet Ownership. You will see that the cost add up very fast.
What is a Fractional Ownership?
A fractional aircraft ownership is usually a 2-5 year commitment that involves the following:
Acquisition: In a fractional aircraft ownership a part ownership is required, usually starting at 1/16 ownership of the aircraft. For example: If the aircraft costs 6 million dollars, 1/16 will equal $375,000.This will be your acquisition fee.
Maintenance: All fractional jet ownerships require a monthly maintenance fee regardless of whether or not you use the aircraft that month. The fee varies according to the aircraft and size of your ownership, but it starts at approximately $6,850 per month.
Occupied hourly rate: Every time you utilize your fractional jet you need to pay the occupied hourly fee which varies on the aircraft you have, but usually starts at $1,554 per hour.
Fractional Jet Ownership locks you to a single aircraft limiting you to that aircrafts capability.
Private jet travel is a necessity and a luxury, but paying too much in a fractional program no longer makes sense. Our next article will examine the benefits of On-Demand private jet charter versus Fractional jet ownership.