Operating leases are generally short-term (less than 10 years in duration), making them attractive when aircraft are needed for a start-up venture, or for the tentative expansion of an established carrier. The short duration of an operating lease also protects against aircraft obsolescence, an important consideration in many countries due to changing noise and environmental laws. In some countries where airlines may be deemed less creditworthy (e.g. the former Soviet Union), operating leases may be the only way for an airline to acquire aircraft. Moreover, it provides the flexibility to the airlines so that they can manage fleet size and composition as closely as possible, expanding and contracting to match demand.
Diener recommends checking out FlyVictor.com, as it compares the cost of private jet travel across different airlines. He says that JetSuite.com is the best known for last-minute deals. You may also want to consider having a broker do the heavy lifting for you, says Trance; brokers typically work on commission, so ask them what their commission is before booking and how you pay it, and tell them your all-in price tolerance ahead of time.
Purchasing an aircraft is a significant investment. As with any major purchase, private aircraft buyers want to be sure they’re seeing all the available private jets for sale that meet their criteria, so that they can compare the price, configuration and condition of all such currently available private jets for sale worldwide. Moreover, many buyers who plunge into the market without the help of an expert advisor may not even have properly identified the best airplane for their needs, and a buyer can’t make a great deal on the wrong airplane.
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Like scheduled airline service, private jets also have weight limits with regard to the amount of luggage that can be stowed during a trip. Items such as skis and golf clubs are allowed as long as they conform to the dimensions and weight limits of the aircraft. These weight limits vary by aircraft type. Ask your charter sales representative if you have concerns about excess baggage or special items to be included in your luggage.
US leveraged lease: Used by foreign airlines importing aircraft from the United States. In a US lease, a Foreign Sales Corporation (FSC) purchases and leases the aircraft, and is tax-exempt so long as at least 50% of the aircraft is made in the US, and at least 50% of its flight miles are flown outside the US. Because of the extensive documentation required for these leases, they have only been used for very expensive aircraft being operated entirely outside the US, such as Boeing 747spurchased for domestic routes within Japan.
Companies like Surf Air and FLITE Air Taxi can charge less than big-name competitors, in part, because they use different planes — like, for example, single-prop turbo planes — that cost less to operate because they use less fuel than larger jets. “The operational cost can be a fraction of other planes,” says Justin Hart, vice president of Surf Air memberships.
Extendible operating lease: Although an EOL resembles a finance lease, the lessee generally has the option to terminate the lease at specified points (e.g. every three years); thus, the lease can also be conceptualized as an operating lease. Whether EOLs qualify as operating leases depends on the timing of the termination right and the accounting rules applicable to the companies.
JetSmarter, around since 2013, is an example of a player in the private aviation space selling shared flights. The company operates on a membership model: Fliers pay a minimum of $15,000 a year and book seats on already scheduled flights through the JetSmarter app, which lists more than 150 domestic and international trips a day. Trips under three hours are included in the cost of the membership while longer ones are an average of $300 a person, according to Sergey Petrossov, the company’s chief executive officer; most flights have an average of eight to 10 passengers.
Aircraft charter brokers have entered the marketplace through the ease of setting up a website and business online. Aircraft charter operators are legally responsible for the safe operation of aircraft and charter brokers require no economic authority and are largely unregulated. The Department of Transportation requires that air charter brokers disclose to the consumer that they do not operate aircraft and cannot use terms like "our fleet of aircraft", "we operate", "our charter service" and others.