JetHub Private Jet Charter Blog

Kevin Lippert

Recent Posts by Kevin Lippert:

General Aviation Fights Back Against Proposed User Fees

General aviation is a target of further government mandates.  Many of these would change the way people use general aviation for leisure, business and private jet charter.  The entire general aviation industry is in a holding pattern, waiting to see if the proposed legislation regarding user fees will be pushed forward.

Fortunately for the industry, many companies and associations are fighting back. Many are contacting congress to vocalize the importance of general aviation in their communities.  One association that is serious about its efforts is the Aircraft Owners and Pilots Association (AOPA).  They have produced a couple of television spots regarding the important value of protecting this industry. Harrison Ford is a spokesman for defending private aviation.

 

Topics: Business Private Jet General Aviation private jet charter Private Jet Legislation

Private Jet Charter Deals of a Decade

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.  

Topics: Business Private Jet private jet charter Fractional Jets

Private Jet Charter - On Demand vs. Fractional Ownership

private jetFractional jet ownership is a business model from the 1980's that has become outdated given that the demand for private aviation has changed in many ways.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.

Topics: Fractional Jets

Should you stay in your Fractional Jet Program?

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. 

Topics: private jet charter Fractional Jets

Are Private Jets Bad For Business?

With all of the demonizing from congress and the media of the private jet industry, one may begin to believe that the businesses and individuals who fly on a private jet are living over-the-top.  Who decides this?

Now with all of this attention, private jet owners, businesses and charter clients seem to be hanging their heads low, no one wants to be 'that guy' on the nightly news. 

The private jet industry had experienced a sever backlash due to the misunderstanding of the value of private aviation. Some businesses are down up to 40 percent and several companies are laying off workers due to the decreases in their business.  This cannot all be blamed on the media and congress, but the rhetoric has contributed.

Let's look at the value of private jet usage. About 85 percent of passengers on private aircraft are small and medium sized businesses, according to the National Business Aviation Association (NBAA).  Business owners understand the value of time efficiency, with private jet travel starting at around $2,000 per hour, it must make sense.  And with a short 1 hour flight one way and back on commercial airline taking the whole day compared to about 2:45 on a private jet, it make sense. 

Certain business expenses are worth the extra cost,  especially when the cost is returned in the form of a more productive day. Let individual businesses make their own decisions and don't demonize them for how they spend their money.

Topics: Business Private Jet

Current Legislation Targets Private Jets

Legislation recently introduced called the Large Aircraft Security Program (LASP), directly targets business jets and private jets for security reasons. If passed the consequences to the private jet industry and the passengers who fly on private jets will be increased cost and major inconveniences.

The major inconvenience would be that every passenger would be subject to search, background checks and delays.  The biggest reason for flying on a private jet is the time-saving convenience.  The LASP would require you to arrive 60-90 minutes before your flight. Air Marshals would have the authority to board your plane, and all items that are banned on commercial airlines would now be banned on your private flight.

Furthermore, the flexibility of changing your itinery and adding passengers would cause further delays, because under the LASP all such changes would need to get approval from the TSA.

To protect the luxury and convenience of private jet travel, here are a few action items we all can do:

 

  • Speak to legislators in your area
  • Network and speak with other private jet travelers and have them voice the concerns
  • Contact TSA officials
  • Send letters to your representatives
This piece of legislation would have a negative impact on the entire industry, creating inconvenience for all private jet clients. 

 

Topics: Private Jet Legislation