When you travel for business, you sacrifice a lot of your valuable time. The time required to travel commercially is not only limited to the length of your flight considering the process includes added tasks of booking your flight, securing transportation to the airport, parking, waiting in long lines at security, not to mention any additional delays due to flying a commercial airline. When time is money, you may consider owning a private business aircraft for the convenience, time, and productivity you can get back in your day.
Owning a corporate aircraft may be a fit if you find yourself constantly flying from city to city as a part of your business. You may even have a substantial annual budget for you and your business team or senior leaders. If you think about how much more you could accomplish by eliminating the hassle of flying commercial airlines, you might be ready to consider private aircraft ownership. There are several options that could meet your needs when it comes to purchasing a business jet.
- Charter Service: When you use private jet charters, it is similar to booking a luxury car service where you book or reserve an aircraft for your trip and pay for the flight itself. Charter flights allow you to bypass the busy large airports, long security lines, and cramped storage spaces and leg room. Chartering costs vary depending on the type of aircraft that you choose and your desired location. You may opt for different aircraft depending on your needs and the length of your trip. One thing to consider as well is that availability of specific aircraft may vary based on the dates and times you wish to book them. Private jet charter flights give you many of the benefits of flying privately without the long-term commitment or expense of owning the aircraft yourself.
- Fractional Ownership: Fractional ownership is an option that allows you to own a percentage of an aircraft. The aircraft would typically be operated by a company that owns a fleet of private planes and private jets. As the term implies, you would be a partial owner with a group of owners which would help offset costs. While fractional ownership allows you to access your aircraft on much shorter notice than booking traditionally, there may be a limited number of flight hours you could use. Sometimes a commitment to the program is required (Ex: 5 years). In some cases, your aircraft may include interchange agreements that allow you and other owners to use an alternate aircraft should yours be unavailable.
- Shared Ownership: Similar to fractional ownership, shared ownership involves multiple owners. However, shared ownership offers some benefits that fractional ownership does not and may be right if the frequency of your travel is fairly high. With a shared arrangement, you purchase a portion of the aircraft as well as share the obligation of storage, maintenance, crew training, and insurance. You and your partners develop an agreement regarding usage and scheduling and sometimes even create a limited liability company in order to benefit from tax incentives and protect your aircraft asset. However, with shared ownership, you and your partners still have the option to arrange for an executive aircraft management company to take care of operation of the business jet to simplify the experience and potentially save you money.
- Full Ownership: Full ownership offers the greatest benefits and flexibility given that you would have the aircraft at your full disposal. Your private jet is available when you need it, where you need it, with little notice. With this added convenience, there is still the consideration that you would be responsible for all operational and management aspects including any regulatory requirements and insurance costs. When deciding which type of aircraft is right for you, it is important to consider what your most typically travel needs are taking into account whether you are flying internationally or not.
The decision to own a corporate aircraft may become easier as you realize how much your business depends on travel and how often you find yourself running through the airport after being held up by long lines or sitting through another delayed flight and missing that important meeting. Owning a corporate aircraft will allow you to close business deals in two separate cities while still coming home in time for dinner at the end of the day. If you are considering aircraft ownership, please contact us for any questions or concerns about what path may be best for you.