Ownership 2.qxp_Finance 21/12/2021 11:43 Page 1
OWNERSHIP
Tips When Buying Jets for Part 135 Charter Ops Owners wanting to have their managed aircraft operated on revenue-earning charter flights will quickly learn that the best equipment and furnishings for private flights isn’t always ideal for charter customers. Chris Kjelgaard asks the experts for tips... hose who buy business aircraft purely for their own private and business use often become immensely proud of their aircraft, striving to outfit their jets with the very latest in flight-deck and cabin equipment. In many cases such owners customize the furnishings and fittings to suit their individual style and needs. But while pride in one’s aircraft and the wish to make it a tangible expression of one’s individuality are very natural emotions, they’re unlikely to be helpful for owners contemplating having their managed aircraft operated on charter flights in order to help offset operating costs. The ideal attributes for an aircraft made available for charter hire may be substantially different from those which make it ideal from the owner’s personal viewpoint. The qualities which make an aircraft strongly marketable for charter use start with the aircraft type, its age, its external paint, and its seating configuration. During the Covid-19 pandemic, many are chartering business aircraft for the first time. While they might not know their preferences fully the first time they book and fly, the technologically-savvy customers of today quickly come to know exactly what they want a chartered aircraft to offer, according to Kevin Kliethermes, Director of Sales for Flying Colours Corporation. To such customers, aircraft type and age “does [matter] to a certain extent,” he says. This is because “there are quite a few new entrants” offering charters in today’s very strong market, “and if the aircraft looks old and dated, customers may have a different expectation in terms of safety”. Owners “are better off” when the aircraft they make available for charters are “cleaner and newer-looking,
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because customers tend to choose their aircraft from pictures” (on charter operators’ websites or in printed charter guides). Additionally, it is often best for business aircraft — particularly jets — used for charters to have neutral external color schemes, says Eric Zipkin, Founder and President of Oxford, Connecticut-based scheduled and charter operator Tradewind Aviation. “In the bizjet world, a lot of business goes through brokers, and they want a white-label [generic-looking] aircraft,” he says.
Operating Economics and Seat Capacity
Next, says Zipkin, “You really need to talk about the [operating] economics” of the aircraft. “Some aircraft are better than others — for instance, the Cessna Citation CJ3 versus the Citation Bravo or Bombardier Learjet.” Better operating economics can make all the difference to owners who want to make their aircraft available for charter: “The margin the owner makes per hour is sufficient to make it worth their while to charter” the aircraft out, he explains. “Typically, low direct operating cost argues for newer, higher-capital cost aircraft — aircraft which have better fuel burn and are robustly supported” (by the OEM). Tradewind Aviation is best known for its 18-strong scheduled and charter fleet of gunmetal gray-liveried Pilatus PC-12 turboprops, and its robust scheduled and charter route networks in the Northeast US, and in the Caribbean, operating from a busy base at San Juan. But Tradewind also operates US domestic and US-Caribbean charter flights with three Citation CJ3 Light Jets it manages for their owners. www.AVBUYER.com
