Why You Should Consider Private Jet Management
Private jet management is an integral part of the private aviation industry. By helping owners build bridges between fliers, brokers and aircraft, these companies have helped countless people make the most of their private jets.
But what is a private aircraft management company?
If you own a private jet, aircraft management services cover everything for you. From hiring and training employees, overseeing flight crews, routine maintenance work to ensuring your aircraft continues to meet the Federal Aviation Administration (FAA) requirements, the best private jet management companies are dedicated to making ownership easier.
Is private jet management right for you and your aircraft? Here are the three main benefits you should consider.
1. Delegate Day-to-day Operations
Aircraft ownership comes with significant responsibilities. Beyond the standard maintenance and cleaning that you’re accustomed to with other types of vehicle ownership, private jets require ongoing management and oversight to ensure the aircraft performs as it should.
And maintenance is only the beginning. When you own a private jet, you’re also responsible for adhering to federal regulations and hiring, training and managing a flight crew.
That’s why many aircraft owners turn to management companies. These professionals take care of day-to-day operations, including:
- Any repairs and maintenance
- Overseeing aircraft functions to avoid any current or potential issues
- Managing aircraft finances, including fuel consumption and maintenance fees
- Managing the flight crew
- Ensuring your aircraft meets FAA Part 91 or 135 regulations
2. Drive Revenue to Offset Ownership Costs
Aircraft ownership is expensive. While it’s unlikely that you’ll be able to earn money through your private jet, you can offset the cost of ownership by using your jet for charters. Most aircraft management companies will offer charter service and take care of arranging flights, finding clients and ensuring your aircraft is available whenever you need it.
Revenue agreements vary by jet management company, but aircraft owners typically earn as much as 80% of charter revenue. Profitability fluctuates from month to month, but chartering your plane is a great way to make aircraft ownership more affordable.
However, if your travel plans change quickly, know that using your aircraft for charter may mean that you are unable to use your own aircraft at a moment’s notice.
3. Unlock Peace of Mind
Beyond the potential financial benefits, many private aircraft owners choose to work with management companies for the reliability they bring. Working with a reputable private jet management company is the best way to ensure that your aircraft is safe, stable, up to the current FAA standards and ready to fly when you need it.
Private Jet Management FAQs
How Much Does Private Jet Management Cost?
According to FLYING Magazine, the monthly cost ranges from $5,000 for basic management services to more than $15,000 per month for turnkey management solutions.
How Much Is the Monthly Maintenance Fee on a Private Jet?
Beyond the initial purchase price, which fluctuates based on the jet and starts at around $2 million, there are also steep annual expenses to take into account, including:
- Maintenance and repairs, which typically amount to between $500,000 and $1 million per year
- Insurance, which ranges from about $10,000 to $500,000 per year according to the BWI Aviation Insurance Agency
- Hangar fees, unless you plan on building a personal hangar
- Fuel expenses, which fluctuate depending on your location and the market
- Pilot and crew salaries, which range from $50,000 to more than $300,000 for the pilot alone
Who Maintains Private Jets?
Private jet maintenance falls under the owner’s responsibility. However, with the stringent requirements and significant responsibilities that accompany full ownership, many private jet owners turn to management companies.
Is Owning a Private Jet Right for Me?
Only you know if private jet ownership and working with a management company is right for you or your business. From the tax benefits to always having your aircraft ready at a moment’s notice—unless you allow it to be used for charter service—owning a private jet is the pinnacle of luxury in private aviation.
Are There Any Drawbacks to Private Jet Ownership?
The lack of flexibility is one of the main drawbacks of ownership. Unlike a private jet charter, you only have one aircraft to fly no matter your origin and destination. This may be fine if you often fly the same route and select your aircraft accordingly. However, it also makes certain routes more expensive, such as flying a heavy jet between neighboring cities.
For example, if you own a small turboprop plane and need to fly across the Atlantic Ocean, you’ll have to look elsewhere for the right plane.
Aircraft ownership is a significant investment and isn’t the best option for most private fliers. When you charter a private jet, you work with a broker to ensure you always have the right aircraft for your mission, with no upfront investment or annual maintenance costs. Simply pay as you go, and enjoy soaring through the skies in safe, comfortable and luxurious private jets.
Want to learn more about chartering a private jet? Contact us today at (888)593-9066 to get started.
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