Private Jet Management

Many people have heard about Private jet management, yet there are many questions about it.

Common concerns include the advantages of management, the expenses involved, and whether it is essential.

This complete review of private jet management will answer all of these issues and more.

What is Private Jet Management?

Private jet management is a supplemental but often used part of private jet ownership.

Your aircraft will be looked after and scheduled by a private jet management firm. These are the folks who will ensure that your aircraft has pilots to fly it, that it is properly maintained, and that your excursions are appropriately organised.

As a result, private jet management (or aircraft management) encompasses all of the activities and services provided by an aircraft management business.

There are two types of private jet management services available: charter aircraft management and turnkey aircraft management.Charter aircraft management is when you (the aircraft owner) hire a company to manage your aircraft when it is not in use. As a result, the expenses of aircraft ownership are reduced because it generates money while not in use.

A charter aircraft management firm will handle the necessary charter certificates and scheduling.

Turnkey aircraft management, on the other hand, is a full-service management solution. This type of management will be in charge of all day-to-day operations. The aircraft management firm is in charge of maintenance, repairs, crew employment, crew paying, training, security, and certification.

A turnkey private jet management company will often be able to handle chartering of your aircraft as well. As a result, even if you want to charter your plane, you will only have to deal with one provider.

What Is the Purpose of Private Jet Management?

As you might assume, caring for and keeping a private plane is significantly more complicated than caring for and maintaining a car.

When it comes to flying, safety is and should always be the first priority. As a result, engaging inexperienced pilots or flying an aircraft that has not been adequately maintained is not a smart idea.

Many jobs go into maintaining a private airplane. It also necessitates collaboration with several other parties, including FBOs (Fixed Base Operators), mechanics, and crew networks. As a result, utilizing the contacts and knowledge of a management business is a wise decision.

Having a private jet management firm care after your aircraft greatly simplifies your life. It streamlines the entire procedure and prevents you from lying awake at night worrying if you missed your aircraft’s most recent inspection.

Options for Self-Management

However, many business owners appreciate the notion of self-management. This is the concept in which the flight crew may handle all aspects of the aircraft.

The reasoning is that if the crew and aircraft only fly 400 hours each year, the crew (who you pay for on a yearly basis) will have enough of time to handle all elements of the aircraft. As a result, the annual ownership cost is significantly reduced.

This is a distinct possibility. Naturally, this has certain drawbacks, such as less experience handling airplanes. Furthermore, utilizing a private jet management business frequently leads in bulk discounts on items like as fuel and maintenance.

It is important to realize that fuel is a significant expenditure when it comes to private jet ownership. As a result, having access to reduced gasoline will significantly lower your operational costs.

However, it is critical to determine if the bulk discount on variable expenses will result in additional savings over the management company’s cost.

As a result, determining which strategy is superior is impossible because it is very context dependent. However, keep in mind that the choice to self-manage is always available. In the same manner that you have the option of completing your own taxes or hiring an accountant to handle them for you.

Examples of Private Jet Management Services

While the services and duties provided vary significantly from one private jet management business to the next, there are several basic responsibilities that are performed by all.

Private jet management firms are responsible for the following tasks:

Flight preparation
Flight reservation
Crew recruitment, employment, and training
Crew management and payroll (effectively human resources)
Airworthiness and certification of aircraft
Maintenance and repair of aircraft
Invoice management (for example, gasoline and staff expenditures)
Cleaning, washing, and restocking after the flight
Arrangements for ground transportation
(Optional) charter operation

Furthermore, private jet management businesses will handle a slew of little jobs.

Most private jet management businesses are accessible 24 hours a day, seven days a week, allowing you to schedule a mission at any time.

Advantages of Private Jet Management

The main advantage of hiring a private jet management firm to look after your aircraft is convenience.

It is now as straightforward to own an aeroplane as it is to hire one. Make a phone call, tell them where you want to travel, and board the plane.

Private aircraft management businesses can allow you to be as active or as detached as you like. You are welcome to join the interviewing crew in the room. If you wish to be given with a variety of maintenance and upgrade choices from various providers and rates, you may do so.

Furthermore, by selecting a reputable management business, you may travel knowing that your aircraft has been safely maintained, is being flown by a competent crew, and has all of the necessary paperwork.

Finally, one of the primary advantages of employing a private jet management business is the availability of discounts. Because they handle huge fleets, these management organizations may negotiate significant bulk discounts with multiple vendors.

Executive Jet Management, for example, claims that clients save 25% on fuel, 35% on crew training, and 30% on maintenance on average. This is entirely due to volume discounts

The Downsides of Private Jet Management

Of course, nothing in life is flawless, and private jet management is no exception.

The expense of utilizing a private jet management business is a drawback.

Another cost of having a private jet is paying for an aircraft management firm. However, it is modest in relation to many other elements of ownership.

Cost of Private Jet Management

In terms of expense, how much does it cost to have your private jet managed?

Naturally, it depends, as with everything else in flying.

The cost will be affected by factors such as geography, management firm, and aircraft type. Furthermore, the cost is affected by how you utilise the aircraft.

An aircraft management company’s standard pricing structure includes a base charge that covers all fixed costs, such as all regulatory and logistical obligations.

This cost is normally between $5,000 and $15,000 each month. However, there are several management businesses that will look after your aircraft for ‘free’.

However, these businesses will usually try to make up the difference someplace else. Whether through commission costs (such as a percentage of handling expenses) or exaggerated foreign exchange rates.

You will often pay additional fees for variable and direct running costs in addition to this cost. Aircraft food, crew travel, handling fees, and fuel are examples of these.

This article provides an overview of private jet ownership. Alternatively, you may read these articles to find out how much it costs to own a certain aircraft.

How to Select a Private Jet Manager or Management Firm

When you search for “private jet management” on Google, you’ll get over 73 million results. Of course, the globe does not have 73 million private jet management firms.

However, there are several options. And, as one might imagine, some are superior than others. Some are significantly larger than others. Some companies offer more services than others. Standards differ from one firm to the next.

As a result, there are certain things to think about while deciding on the finest firm for you.

Here is an excellent article on how to select the best private jet management firm.

However, here is an outline of crucial factors to consider when selecting a private jet management business.

Speciality

The first is the company’s area of expertise. Some businesses specialize on specific types of aircraft. There are firms who specialize in turboprops but not in international heavy jets.

Some firms are better than others at chartering your aircraft.

Finance and experience

Another element to consider is industry experience. Simply said, the longer a firm has been in business, the safer the decision. Furthermore, the larger the firm, the less likely it is to fail owing to financial constraints. Before making a decision, take a short glance at the company’s financials.

With a private plane, the bills will pile up rapidly. As a result, you must ensure that your aircraft management firm can pay these charges while producing the invoice for you.

Safety

Additionally, examine if the firm is ARGUS or WYVERN certified. These badges are an excellent method to ensure that you are in good hands. Of course, there are many reputable management firms that do not have these credentials. However, it is an easy and safe approach to limit down your options.

Large or small?

Furthermore, owners frequently ponder if they should go with a large or small organisation. Of course, each has its own set of advantages.

Large corporations are more likely to provide large, bulk discounts on items such as gasoline and training.

Small businesses, on the other hand, are more likely to provide ‘personal’ service.

In truth, due to the previously noted possible cashflow concerns, a large corporation is a safer bet if uncertain. Furthermore, the likelihood of a bad experience is reduced with a larger organization, albeit it is not always preventable.

All else being equal, a large corporation isn’t always a better choice than a small one, and vice versa.

Remember that with a larger corporation, you will have your own specialized service agent.

Mission Type :

When considering management firms, be sure to evaluate your mission type across a number of hours, as well as pinpointing where the expenses are.

To begin with, no two missions are same. You will be traveling from point A to point B when you operate the airplane. You will not be dialing in to tell how many hours you want to fly.

Furthermore, a flight to Moscow in the winter will be more expensive than the same journey in the summer. Simply deicing an airplane may cost thousands of dollars.

As a result, knowing the route type and mission profile will assist the management firm in appropriately estimating your expenditures.

What Exactly Are You Paying For?

Following that, you must understand where the management costs are genuinely located. You must understand not just your monthly payments to the corporation, but also how much the company will charge for items like training and fuel.

Where each firm may save you money and where they will cost you money.

Should I Rent Out My Plane?

Finally, a prevalent topic among owners is whether they should charter their aircraft.

The advantage of chartering your aircraft is that the income generated from the charter flights may be used to offset your ownership costs.

However, renting out your aircraft is a two-edged sword.

To begin, owners must accept that they will not generate a profit. It will still cost them to own an airplane. With very few instances, chartering revenue will not surpass all ownership costs.

Furthermore, the aircraft will sustain more wear and tear. As a result, the aircraft, for example, will need to be reconditioned at fewer intervals. Furthermore, the additional flight hours will necessitate more maintenance on the aircraft.

In addition, due to the increased amount of hours flown, the aircraft would degrade at a faster pace. Like autos, the less an aircraft has been used, the more valuable it retains.

Finally, the most significant disadvantage of chartering your aircraft is that you cannot fly whenever you choose.

The main advantage of owning your own private plane is that you can almost always guarantee its availability. However, while chartering, you must prioritize the charters.

Furthermore, in order to optimize income, you will almost certainly be unable to operate your aircraft during peak periods owing to increased charter demand.

Finally, some owners prefer to charter their aircraft. For them, the money is worth it in order to balance some expenditures. However, if charter money is necessary for you to justify owning the aircraft, then becoming a charter client yourself may make more sense.

As a result of the razor-thin charter margin, many owners choose not to charter out their aircraft. However, if you are considering this, you should consult with your management business to obtain precise prediction data.

Private Jet Management