Planning Supplemental Lift for your Operation

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…

If 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. 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 Beyond the year, unused funds can still be used, but the price guarantee is no longer in effect.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.

• Membership Programs may have different billing practices, such as a monthly membership fee plus an hourly fee. Some may have hourly fuel cost adjustments. • The primary service area may be limited (e.g. within the United States), meaning that flights outside this area will incur additional costs and fees.

Fractional Ownership

This is a form of ownership, much like a time-share. Each fractional owner purchases an interest in a specific, serial-numbered aircraft based on 800 occupied hours per year for each whole aircraft. Each owner is guaranteed 50 occupied hours annually for each 1/16 share that is purchased.

Contract lengths vary with five years being common. A typical fractional ownership program has these features: • The make and model of aircraft is specified. • There is a single point of contact for scheduling. • Owners are charged only for the hours they actually occupy the aircraft. • Availability is guaranteed with restrictions. Peak travel days still require advance booking. • The ability to swap hours to larger or smaller aircraft for a set interchange ratio of hourly costs is available, giving fractional owners more flexibility. • The primary service area may be limited (i.e. within the United States), meaning that flights outside this area will incur additional costs and fees. • Leases are available.

Supplemental Lift for Shorter-Term Needs

Many aviation departments will use supplemental lift on an infrequent basis for the rare occasions their whollyowned aircraft is unavailable. Most commonly this occurs when the company aircraft is grounded for major maintenance and is unavailable for several weeks or even months.

A common example would be if the aircraft is undergoing a major airframe inspection. Simultaneously, the owner may plan to have an interior upgrade and an aircraft repaint. Most of the paint and interior work cannot be done while the aircraft is being actively worked on, meaning that in this case, the owner could be without their primary aircraft for a few months.

Another scenario could be needing to bridge the gap