JetHub Private Jet Charter Blog

NBAA Welcomes Proposal to Create LASP Rulemaking Committee

Washington, DC, June 29, 2009 - The National Business Aviation Association (NBAA) today welcomed a congressional proposal that would require the Transportation Security Administration (TSA) to work more closely with the general aviation industry on its controversial proposed Large Aircraft Security Program (LASP) and other security initiatives.

Representative Charlie Dent (R-15-PA) introduced legislation that would require TSA to create a rulemaking committee with general aviation (GA) industry stakeholders when developing security measures for the industry. H.R. 3093 was cosponsored by eight other House members.

"This legislation shows that Congress understands that we can accomplish more good if we work together rather than separately," said NBAA President and CEO Ed Bolen. In the time since the TSA introduced the LASP last October, Bolen has repeatedly called for a rulemaking committee like the one envisioned in the legislation introduced today.

"The business aviation community has a long and demonstrated history of partnership with government in developing effective yet workable security measures for the industry," Bolen added. "A rulemaking committee, like the one proposed by Rep. Dent and others, would provide a consistent forum for stakeholder information sharing and the development of measures that enhance security while recognizing the need for mobility and flexibility."

More than 7,000 comments were submitted to the TSA in February regarding the LASP proposal. Almost all of the comments suggested that the proposed changes would be onerous to the thousands of businesses that rely on GA aircraft.

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Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The Association represents more than 8,000 companies and provides more than 100 products and services to the business aviation community, including the NBAA Annual Meeting & Convention, the world's largest civil aviation trade show.
Topics: Business Private Jet General Aviation private jet charter Private Jet Legislation

More Businesses Are Using Private Jet Brokers

business private jetIf you are looking for a more efficient and comfortable flight on your next business trip, take a private jet for the ultimate in service, satisfaction and time savings. 

Finding the ideal flight for business trips has never been so easy. Even if you prefer traveling first-class on a commercial airline, you can still experience the hassles and the inconvenience of spending your entire day at the airport. Providing faster service to a client location can prove to be beneficial. Not only are you able to respond to your clients needs faster, you and your team will be more productive. Chartering a private jet for a business trip pays for itself in the amount of time saved and the productivity of your team.

The advantage of taking a private charter jet than any other option is that it saves you time and less delay. Private jets rarely get canceled, you fly on your schedule even if you arrive to the airport late, the plane will be ready. In the rare case that there is an issue with your private jet flight, you would have a big advantage if you used a charter broker service.  Brokers are able to find a replacement aircraft from the vast list of operators they deal with. 

That is why more businesses who choose to travel using a private jet charter, work directly with a broker. Brokers have access to several thousand aircraft operated by hundreds of companies, a broker has the flexibility to secure the proper aircraft for your needs. About the cost, you do not have to worry because it is not expensive at all, especially when you travel with groups. If you divide the overall cost for several passengers, it would cost about the same as a first-class ticket for a typical commercial flight.

So if you want to get to your destination with all the convenience and comfortable seats all at an affordable cost, there is nothing better than chartering a private jet. It will not only provide you a sense of comfort and privacy, but as well give you less stress and less delay in each of your business trip.

Topics: Business Private Jet private jet charter

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

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