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HOW TO & ALTERNATIVES – PRIVATE JET CARD MEMBERSHIPS

Feb20

Private jet card memberships are one strategy you can use for chartering a plane. You can also pay as you fly. This article explores different strategies, including the costs, pros, cons, and alternatives.

Overview of Air Charter Booking Options

Chartering a plane can be just like chartering any other vehicle. You search for what you want, compare deals and prices, then charter a plane for each specific flight. This pay as you fly model is one possible option. The air charter market is full of private jet card memberships and fractional memberships, along with a plethora of other options.

Private jet card memberships

Private jet card memberships are now considered the most popular means of booking an air charter. Many hundreds of individual schemes exist, and most of these can be purchased for varying numbers of hours.

With a private jet card membership you will pre-pay for a set number of hours on a specific type of aircraft, usually with a single air charter operator. Schemes typically start at around USD 100,000. 25 flying hours is the minimum private jet card membership for many operators, but shorter and longer schemes are available.

Fractional jet memberships

With private jet card memberships you will purchase time on a jet. A fractional jet membership will give you both time and ownership of a share in a jet. The smallest ownership program is 1/16th, which equates to 50 hours of flying time each year (800 hours is considered standard aircraft use for a year).

This approach to air charter requires significant capital investment. You will own a fraction of an aircraft and can recoup some of the investment costs, but should be aware of depreciation. The smallest 50-hour share for a light jet starts at USD 400,000. In addition, you will pay monthly fees (including insurance, maintenance, pilot’s salary, hangar fees) in relation to your share. These are typically USD 7000 per month for a 1/16th share in a light jet.

Pay as you fly private air charter

With pay as you fly charters you book each air charter on an individual basis. So each time you need to rent a plane you book the most appropriate plane for the route and number of passengers. No pre-investment is required and you will not be part of a membership scheme, so it is the cheapest means of booking individual flights.

Pay as you fly charters need a knowledge of different operators and available aircraft. Traditionally this has been provided by private jet brokers, who broker the charter between a FAA Part 135 operator and the customer. Modern technology is changing this. Now you can use an online booking engine to search for available aircraft and book directly.

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Understanding Air Charter Safety

All air charters are governed under FAA regulations, regardless of how they are booked. There are three key FAA regulations you should be aware of.

It is possible to charter a small aircraft that operates under a FAA Part 91 certificate. This is the simplest form of certification for an aircraft operator to achieve. Part 91 is mostly geared towards small airplane pilots who predominantly fly for pleasure. However, some commercial operators cut corners as it is cheaper and easier to obtain a Part 91 instead of a Part 135.

Commercial air charters are governed under Part 135 of the Federal Aviation Regulations (FAR). These provide strict regulations in relation to flight operations, maintenance and training. The regulations relate to the operator, aircraft, pilot, and personnel.

Part 121 relates to commercial airline operations, i.e. all scheduled flights operating anywhere in the United States. This article explains forthcoming NTSB-led changes to Part 135 operations, aimed to make the industry even safer and air charters on par with Part 121 operations.

When booking any air charter ensure it has the correct Part 135 certification. Charter an FAA Part 135 aircraft and you can be assured of a high level of safety, regardless of whether it is booked through a private jet card membership of any other means. This certification removes any guesswork. You do not need to inspect the aircraft or investigate the operator, as this is already done by the FAA for Part 135 certification.

Private Jet Card Memberships – Navigating the Options

With so many different private jet card memberships it is easy to be overwhelmed. Before searching for a scheme you should be absolutely clear about when you will need a plane and where you will be flying. You can loosely plan out a year of travel, making particular note of any hot dates for private jet travel, or times when you will need a larger or smaller plane.

This aircraft for charter guide should provide a basic understanding of aircraft types. With a private jet card memberships you will pre-pay for hours on a specific type of plane. Some schemes allow you to downgrade and upgrade flights for a service fee, but others do not. At the very minimum you need to know the type of aircraft, the number of hours, and the region where you will be flying (it doesn’t make sense to have a jet card with a Florida based operator when you mostly fly in California).

Calculating fees and surcharges

When you have penciled in a year of travel it will be easier to navigate private jet card memberships. Note that this plan doesn’t need to be exact flights, just a general idea of when and where you will be flying on a private aircraft. The next step is to compare private jet card membership schemes, taking into account all their fees and surcharges.

Pre-paying for a set number of hours will be your main expense. In addition, you will need to calculate the following fees, which are paid on top of your hours:

  • Initiation fees
  • Annual membership fees
  • FET tax of 7.5%
  • Fuel surcharges
  • Fees for flying on peak dates
  • Surcharges including hangar fees, FBO fees, taxi time fees, overnight fees, airport taxes, de-icing (some private jet card membership schemes have over 30 different surcharges, but others are more transparent).

The most important consideration is the minimum hours per flight. This equates to the minimum number of hours you must use for each flight. Many jet cards specify two hours, so you will use two hours of your private jet card membership, even if your flight is only 30 minutes in duration.

Also bear in mind that you will need to pay re-positioning fees for each charter, i.e. you use your jet card hours to get the aircraft from its base to your departure airport.

Comparing costs and prices

Private jet card membership schemes represent a significant financial investment. USD 100,000 could provide long-term value, but choose the wrong card and you will pay proportionally more for each air charter.

After penciled an annual plan you can then compare costs with pay as you fly charters. Remember, with pay as you fly private air charter you can choose different aircraft for each flight. This can provide significant cost savings, so it is always beneficial to compare private jet card memberships against pay as you fly charters.

Airvel’s search facility provides transparent pricing on over 4000 aircraft to over 2500 airports across the United States. You can use the search facility as a planning tool and calculate the cost of the flights you will need. Also remember that there are no additional fees or surcharges with pay as you fly charters.

Using a booking engine like Airvel is also the cheapest and easiest means of chartering a single flight. For many people it represents a good stepping stone into air charters.

Pay as You Fly Charters

Airvel is the world’s leading booking engine for private air charters. You can search and book flights on an individual basis. Airvel’s booking engine searches the largest number of aircraft and operators, helping passengers get the best deals. All charters are governed under FAA Part 135 operations. Airvel does not offers charters of aircraft and operators with a Part 91 certificate.

Airvel does not operate any of the flights either. Airvel is purely a booking engine that aggregates all the available options into one easy to compare search. You can compare aircraft, amenities, flight duration, and costs. Most importantly, you can book the most appropriate aircraft for each individual flight.

Some people may consider the pay as you fly approach to be time consuming. Airvel also offers a 24-7 concierge service as standard. Simply tell Airvel the flights you need and a personal concierge will search and present the different options.

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CHARTER FLIGHTS TO ANYWHERE - HOW TO FLY ANYTIME
HOW TO GET AN INSTANT JET CHARTER QUOTE

About Author

Louise Hughes
Louise Hughes

Aviation consultant, helping airlines and charter companies ross their t's and dot their i's. Louise has worked with many of the big players in the air charter industry and contributes to national and international bodies.

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