Over the past several years, global economic conditions led to record levels of pre-owned private aircraft listed for sale, ranging from smaller, propeller-driven airplanes to the largest, most advanced, and most luxurious intercontinental business jets. This truly resulted in a ‘buyer’s market,’ with purchasers able to select from a high number of quality aircraft, often for comparatively low prices.
And typically, you can’t just buy one discount ticket on these planes; they’ll want you to pay for the whole cost of the plane, so you’ll need to find a group to go with you to get the most savings. Plus, if you want to save big, you likely won’t get a brand-new primo jet, as these tend to cost more. And finally, there’s the issue of safety: Private chartered planes tend to get in more crashes than commercial jets — though they are still far safer than cars. Most small-plane accidents were due to pilot error, so call the private jet company to determine how many hours of flying experience your pilot has.
No matter what company you're flying with, be sure to ask if there two pilots or one. (Though two pilots are standard on commercial flights, regulations vary for private planes of all sizes.) It also helps to ask if the operator owns the plane—typically, companies that own their planes offer better service. Never forget to ask about daily minimums and taxi fees. "If the hourly rate is $9,000 and you have a single 40-minute flight, you might assume you are going to pay $6,000," says Doug Gollan, creator of PrivateJetCardComparisons.com. "But if your provider has a daily minimum of 1.5 hours, you are going to actually be charged $13,500, plus taxi time, which in my comparisons I have found varies between being included and up to 12 minutes per segment."
A public charter is one in which a tour operator rents the aircraft and advertises and sells seats to members of the public, either directly or through a travel agent. In the case of public charters, the flight must be filed with the U.S. Department of Transportation, and the tour operator must supply a charter prospectus. The tour operator also must assume a legal responsibility to provide the transportation service, and must abide by DOT requirements for the protection of the clients' money. Public charters often operate only seasonally, and are often sold as part of a vacation package deal, although spare seats may be offered at bargain prices.
Japanese leveraged lease: A JLL requires the establishment of a special purpose company to acquire the aircraft, and at least 20% of the equity in the company must be held by Japanese nationals. Widebody aircraft are leased for 12 years, while narrowbody aircraft are leased for 10 years. Under a JLL, the airline receives tax deductions in its home country, and the Japanese investors are exempt from taxation on their investment. JLLs were encouraged in the early 1990s as a form of re-exporting currency generated by Japan's trade surplus