JetHub Private Jet Charter Blog

Negative Effects of Cap and Trade on Private Jet Travel

The aviation industry has always cooperated and transformed itself to play an important role in making the atmosphere free from carbons and other chemicals. Researchers and scientists are now looking for ways how to make it happen.

The aviation industry has led the strike in getting new levels of fuel-efficiency, struggling to improve lighter plane bodies and prioritizing the invention of greenhouse gas-reducing engines. Despite these promises and commitments, the aviation industry would face a big challenge pursuing to invest in greener technologies under the government system called: cap-and-trade. At the annual Aviation Summit on April 29, top industry representatives met to discuss how aviation is leading the green technology advocacy, and how various cap-and-trade strategic plans would threaten to jeopardize all of what the aviation industry has worked so hard on.

For example, the cost of fuel already shows to be between 30 and 50 percent of private jet travel and the airlines operating expenses; this is already an overwhelming cost that airlines and other industry, including private jet charter, sectors single-handedly worked to decrease fuel-saving advancements and methods. Constituting a stern cap-and-trade system on aviation would force the industry to cut budgets in any way possible, meaning significantly decreased improvement of emissions-reducing technology, further loss of jobs, and higher costs to customers.

There are many ways to allow lower emissions and lessen greenhouse gas concentrations in the environment. We must look for energy policies that do not distract key industries, but advocating their ability to lead the way in the research and improvement of green, clean technology. This means the aviation industry must continue to invest in new planes, new equipment, innovative technology, and alternative fuels.

Topics: General Aviation private jet charter Private Jet Legislation

User Fees Could Kill General Aviation

User fees for general aviation is not a dead issue. Is this true? Well, for all stakeholders in general aviation, read this article. For pilots and employees of the aviation industry, read this article as well and be careful and wary about this news. This short article is for you to know what issues the industry of aviation will have to face if this implementation on user fees becomes reality.

The aviation industry will face a lot of challenges and when it comes to implementing the user fees at airports. The first challenge will be the allocation of costs on a pro-rated basis. The first most obvious negative effect of user fees is that general aviation pilots--seeking to reduce their cost of flying--will use ATC less. Some of these IFR flights will become VFR flights, flying under the clouds with small or no margin of safety at all.

The second negative effect is that it is inevitable; the decreasing use of ATC services as major general aviation pilots look to reduce their cost of flying and decreasing revenues collected from user fees. Normally when the government finds that fees are not covering costs, they simply have to raise the fee; this would lead to a bad cycle of rising rates and costs for pilots.

The government has now an allocation in the budget for 2011, implementation on user fees. Pilots should remain vigilant and wary for all new attempts to re-implement user fees in new ways built to make them more appealing and more likely to get passed by Congress.

The most effective way for the government to overcome some of the FAA cost is to look at what has worked for several decades.  Fuel tax has been effective and most private jet charter companies would accept a slight increase in the fuel tax before user fees would be acceptable.   

Use private jet cards over fractional jet programs.

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.

Topics: Business Private Jet JetCard 2.0 private jet charter Fractional Jets