Ownership 4.qxp_Finance 19/07/2022 08:27 Page 1
OWNERSHIP
Planning Supplemental Lift into Your Operation When does it make sense to arrange supplemental lift for your flight department, and what options are available? David Wyndham considers the benefits and restrictions of ad hoc charter, jet cards and fractional ownership…
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f you have a full-time aviation department, don’t assume that all your air travel needs will always be met by whole aircraft ownership. Owners finding they need a little more lift, or who find there’s a competing demand on their jet, may not immediately have the justification to buy a second airplane. In such circumstances, supplemental lift in the form of ad hoc charter, jet cards, or a fractional share may be the solutuon. Within this article, we’ll define the options.
Charter
On demand, or ad hoc charter is a flexible way to acquire additional lift. Many flight departments use charter infrequently on an ‘as-needed’ basis. For those with occasional supplemental lift needs, charter offers the following general features: • No commitment other than for the booked travel. • Flexibility in selecting among vendors and aircraft types. • Until booking, availability is not guaranteed. • With charter, you pay for every hour the aircraft flies on your behalf, whether your passengers are on board or not. 48 ❘ Vol 26 Issue 8 2022 ❘ AVBUYER MAGAZINE
Jet Cards
Jet cards, or membership programs, are a form of charter. While program specifics vary from provider to provider, these tend to suit users who know they have at least 20 hours of supplemental lift need during the coming year. A typical Jet Card plan has the following features: • A block of flight hours is purchased for a set price. The hours can be as low as 10 hours, but more typical is a 25-hour card. • 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 has a time limit of typically one year. Beyond the year, unused funds can still be used, but the price guarantee is no longer in effect. • Availability is guaranteed with restrictions. The lead time required varies with the card program, and it may have peak travel days (such as Thanksgiving and Christmas holidays) requiring booking well in advance. www.AVBUYER.com
