Are these lower prices the reason more Americans are chartering planes? Virtuoso’s statistics indicate that the number of private charter trips increased by 10 percent from 2014 to 2016, and statistics from the research company Euromonitor show that the number of passengers in the United States who chartered planes increased from 4.88 million in 2013 to 5.32 million in 2016 (this number excludes helicopter charters).
Charter operators own or manage private jets for multiple clients. Like traditional flight departments, charter companies handle all aspects of aircraft operation and maintenance. However, they are not aligned with just one corporation. They manage aircraft for a private owner or corporation and also handle the sales of available flight time on the aircraft they own or manage. Maintenance services can also be provided which typically include on-site or mobile repair, major and minor routine inspections, troubleshooting assistance away from base, avionics installation and repair, jet engine and battery service, interior modifications and refurbishment, Inspection Authority (IA) qualified inspectors, aircraft planning and budgetary projections, compliance with service bulletins, aircraft storage management, record keeping and management, technical appraisal of private jet purchases, leases and lease terminations, and Part 91 or Part 135 conformity inspections.
An affinity charter is slightly different in that, although all of the passengers are affiliated with a specific business, group or organization, each pays his own air fare. The passengers might sports or music fans traveling to a special event, or a bunch of friends going on vacation. With this type of charter, none of the seats can be sold to members of public.
Conversely, the aircraft's residual value at the end of the lease is an important consideration for the owner. The owner may require that the aircraft be returned in the same maintenance condition (e.g. post-C check) as it was delivered, so as to expedite turnaround to the next operator. Like leases in other fields, a security deposit is often required.
In 2017 Honeywell predicts 8,600 aircraft to be delivered during the next decade for a total value of $264 Billion. Its breakdown is 57% big (85% in value) - super-midsize to business liner, 18% midsize (8% in value) - light-medium to medium, and 25% small (7% in value); the global demand is expected to come from North America for 61%, 15% from Latin America, 14% from Europe, 6% from Asia-Pacific and 4% from Middle East and Africa.
The Gulfstream G650ER, which retails for $70.15 million fully outfitted, can travel 7,500 nautical miles/13,890 kilometers at Mach 0.85. When flying even faster at Mach 0.90, it can carry eight passengers 6,400 nm/11,853 km. Hodge adds that it is important to know the general travel mission when determining the size of the plane. If certain airports are used, a broker can help buyers understand if a plane can regularly take off and land there with a full payload. Gulfstream
Finance leasing, also known as "capital leasing", is a longer-term arrangement in which the operator comes closer to effectively "owning" the aircraft. It involves a more complicated transaction in which a lessor, often a special purpose company (SPC) or partnership, purchases the aircraft through a combination of debt and equity financing, and then leases it to the operator. The operator may have the option to purchase the aircraft at the expiration of the lease, or may automatically receive the aircraft at the expiration of the lease.
Time saving - this is one of the most significant reasons for using private aircraft. Depending on your program you can have an aircraft ready in just a few hours. You can arrive at the airport just minutes before your scheduled departure time, fly directly to your destination (without any layovers), make productive use of your time onboard, avoid overnight stays (saving hotel $ as well as time), avoid waiting in lines at the airport, land at over 5,000 airports in the US and so be closer to your destination. All of this can provide significant savings in both productive time and in dollars. Productivity - the time savings above provide significantly more productive time, both onboard and before and after your flight. You and your staff can make the most of the travel time to talk business or work with customers, suppliers or partners.
Have an upcoming charter flight or looking to price out a regular itinerary? Our online private jet travel planner makes getting an aircraft charter quote simple and fast. Simply fill out the form at the right or follow the link below to submit your private jet flight details and one of our expert Sales Directors will contact you right away to present the best options for your trip need, preferences and budget. Have more questions? Contact us by phone at 866.409.0929.
Members who want to set their own schedule can create a flight and post it to JetSmarter’s app so that other interested members can buy seats for the route and help reduce the cost of the charter; if all the seats on the plane sell, the member who created the flight flies for free. These crowdsourced trips usually top out at $2,000 a person, a fraction of the $8,000 or more per hour it can cost for a traditional charter. “My goal is to make private jet flying less elitist,” Mr. Petrossov said.
In October 2017 Jetcraft forecasts 8,349 unit deliveries in the next decade for $252 billion, a 30.2 $M average. Cessna should lead the numbers with 27.3% of the deliveries ahead of Bombardier with 20.9% while Gulfstream would almost lead the revenue market share with 27.8% trailing Bombardier with 29.2%. For 2016-2025, Jetcraft forecasted Pratt & Whitney Canada should be the first engine supplier with 30% of the $24B revenue, in front of the current leader Rolls-Royce at 25%. Honeywell will hold 45% of the avionics $16B revenue ahead of Rockwell Collins with 37% and Garmin.