The First-Time Buyers ’ Guide to Jet Cards

When might it make sense to step up from ad hoc charter? Could you use your buying power to get more flying time for your hard-earned dollars? David Wyndham discusses...

With the global COVID pandemic, a large number of first-time users have been introduced to the benefits of private aviation. For the infrequent or occasional user, it makes little sense to invest in a whole aircraft, but there are several other options.

The following series will aim to cover all of the basics to enable you to make informed decisions over your ongoing use of Business Aviation.

The common entry point to using private air travel is ad-hoc charter. An advantage of chartering is that you have access to many different types of aircraft with differing capabilities. Thus, charter users are not restricted to one type of aircraft as would be the case in other ownership scenarios.

Ad hoc charter users do not enter into longterm contracts – only an agreement for the booked flight. According to the National Business Aviation Association (NBAA) there are over 2,100 FAA-licensed aircraft charter operators in the US, ranging from small single-engine piston aircraft operators to large turbine fleet operators. When to Consider a Jet Card

As mentioned, charter works best for those requiring infrequent trips, or for several trips that are quite different in length and passenger loads, thus requiring aircraft with different capabilities. If, however, you find that your trips are similar in terms of distance and passenger load, and occur frequently, then a Jet Card or Membership Program could be a good option for you.

For simplicity, we will use the term ‘Jet Card’ , but the contents of this article applies to both.

I have a client with one home on the US East coast, and another home on the West coast. He flies the trip between homes every other month, accounting for a total of 10 flight hours per round trip. At 60 annual flight hours, and with a predictable travel profile, my client is in a good position to consider using Jet Cards.

Since my client uses a single charter operator, he can consider pre-purchasing charter hours in blocks of time, for a set price. This concept is called ‘Block Charter ’ .

Ultimately, Jet Cards are pre-paid Block Charter arrangements, providing you with a

specific number of charter hours at a set price, often with very specific features that go beyond pre-purchased flight hours. The provider of a Jet Card may be a single company (such as NetJets), or a broker (such as Air Partner) that deals with several charter providers.

So, what are the advantages and disadvantages of Jet Cards? First, let’ s consider what Jet Cards offer.

Jet Card Features

Although program specifics vary from provider-toprovider, a typical Jet Card plan has the following features:

• A block of flight hours is purchased for a set price. The number of hours can be as low as 10 hours, but are more typically 25-hours. • The type of aircraft is specified (e.g. Light

Jet), along with a specific service provider or category of provider. • There is a single point of contact for scheduling. • The price guarantee and length of contract is

time-limited (typically one year). Beyond the year, unused funds can still be used, but the price guarantee is no longer in effect. • Availability is guaranteed. The lead time required varies with the card program, and it may have peak travel days (such as the

Christmas holiday) requiring advance booking. NOTE: Membership Programs may have different billing practices, such as a monthly membership fee plus an hourly fee. What are the Advantages of a Jet Card?

Known Cost: Purchasing charter in advance secures a guaranteed price that does not increase during the length of the contract. Many programs do stipulate a variable fuel cost surcharge to account for the volatility of fuel prices, however. Availability: With traditional charter, you do not have a guaranteed aircraft when you call. If the aircraft you require is not available, you may have to book a larger, more costly aircraft, or look 