There are a number of ways to access private jets for business or personal travel, ranging from owning your own aircraft to chartering a jet for a single flight – which is referred to as “on-demand charter.”  But the numerous options in between can be confusing.  Following are the main categories of products and services available today.

Whole aircraft ownership.  Owning one or more aircraft has been a popular choice for many large companies and wealthy individuals since the concept of “business aviation” was first introduced.  Prior to the development of the Learjet in the 1960s, a few corporations owned jets, but they were merely converted airliners – expensive and slow.  It was the Learjet that changed the world’s ideas about business aviation, creating demand for faster, higher flying, nimble aircraft that could transport executives quickly and efficiently.  Today’s business jets offer executives a wide range of choices in size, speed and range. Perhaps the most important thing for today’s traveler to understand about whole aircraft ownership is that many jets owned by companies and wealthy individuals are made available for charter when they are not in use by their owners.  Many aircraft owners turn to an outside “aircraft management company” to maintain and service their jets, and provide crews and training.  Most such companies also provide air charter services, utilizing the corporate aircraft they manage, which in turn provides revenue for owners and a needed supply of aircraft for those who wish to take advantage of occasional private jet travel.

Fractional ownership.  Fractional jet ownership enables companies and individuals to purchase a share in a jet – generally starting at 1/16th, equivalent to about 50 hours of flying annually.  Fractional ownership involves an upfront investment in the asset, along with monthly management fees and an hourly charge for flying. Fractional ownership offers many of the advantages of whole ownership at a lower cost, and access to an entire fractional fleet. Plus, all aspects of managing and operating the aircraft are handled by the fractional provider. Because fractional owners actually own a portion of the asset, there may be tax advantages in doing so. In addition, the fractional owner realizes asset value at the end of the contract period when the jet is sold.

Jet cards and membership programs.  For customers who travel often by private jet but are not ready to make a multi-year commitment to fractional ownership, jet cards (also referred to as jet membership programs) provide an ideal solution.  Jet cards provide many of the advantages of fractional ownership, such as guaranteed availability and service consistency, without a multi-year commitment or asset investment.  They are generally for the customer who anticipates flying 25 hours or more annually on private jets. A common misconception is that jet cards are merely a “bulk purchase” of flight time and therefore deliver a lower cost per hour as compared with on-demand charter. Jet cards certainly can deliver a cost advantage, when taking into consideration the elimination of repositioning fees. But each trip is different, with a different cost comparison. The main reason these programs appeal to customers is that they are assured of a jet when they need it, and the hourly flying costs are plainly spelled out.

There are two main types of jet card programs to choose from:

• Charter jet cards. With a charter jet card, the program provider is entrusted with selecting a quality operator and quality aircraft.  The customer is guaranteed a jet with an advance reservation, or hourly “call-out” time. Charter jet card customers sign agreements with providers that generally specify hourly rates and other costs. Most programs eliminate repositioning fees for bringing aircraft back to its home base.  So there is a consistency in service and price. Charter jet cards are available as “debit” cards, whereby customers deposit funds that are debited from their accounts as they fly, while other charter jet cards are purchased as a block of hours.

• Fractional jet cards.  With a fractional jet card, the customer is flying on a fractionally operated fleet.  Fractional jet cards are generally offered as a block of 25 hours on a specific type of jet, although card members are offered the opportunity to upgrade to a larger jet or downgrade to a smaller aircraft type. Fractional jet card programs offer guaranteed availability with an advance reservation, as do charter jet cards.  Fractional card programs appeal to the customer who is willing to pay a premium to fly on very new aircraft that are managed and operated by a fractional provider.

On-demand charter.  In spite of the wide range of newer options available for people who fly frequently, traditional chartering of aircraft remains a popular solution – whether it’s a single trip or multiple trips throughout the year.  There are essentially two ways to charter a jet:  Customers can select a charter operator on their own, or they can utilize the services of a company that brokers the trip on their behalf.  For the customer who tends to fly the exact same itinerary every time, establishing a relationship with a local charter provider makes sense. In such cases, the customer is able to research the operator, the aircraft under that operator’s management, the operator’s flight crew requirements, safety records, and so on.  However, for the customer who charters various itineraries and can’t invest time in researching multiple operators and sub-broker practices, it makes sense to use a trusted provider of charter services who is making those determinations and qualifying operators and aircraft on the customer’s behalf.