March 8, 2021
The Ins and Outs of Private Jet Management Services
After You Buy a Business Jet, These Companies Handle the Day-to-Day
If your company is planning to purchase a business jet for sale on AircraftExchange, then you’re likely familiar with the required upkeep and needs that come with this investment. But, if you have a small operations team, it may be necessary to outsource jet management tasks to ensure they’re completed to the fullest, most proper extent possible, saving your team time to focus on other duties, such as managing travel-related projects.
Contracting with a private jet management service also can save you a considerable amount of money per year, through bulk discounts for maintenance plans, pilot and crew salaries, and by chartering your jet when you aren’t using it. These actions significantly lower the cost of ownership, while still giving your executive leaders the freedom, flexibility, and privacy with which to travel for business.
All-Inclusive Business Jet Management Saves Money
Private jet management services assume responsibility for simplifying jet ownership for you, taking year-round care of your investment, while upholding safety, security, and regulatory compliance standards and delivering the best possible customer service.
Your contract with a jet management service gives you access to savings on fuel, maintenance, pilot training, hangar costs, and insurance. This is possible because the jet management company oversees what amounts to large fleets of business jets and can secure bulk discounts on these fixed and flexible costs. It amounts to a savings of multiple tens of thousands of dollars for your company.
Before signing a contract with a jet management company, it’s vital to obtain statistics on anticipated savings so you can perform a cost-benefit analysis for transitioning your aircraft management from in-house to outsourced. If you have a large fleet of jets to support business travel already, then you may already be receiving the most cost-effective bulk discount on maintenance, fuel, hangar fees, and other costs.
Choosing a Management Service
Aircraft management companies should provide every possible service you could ever need during the tenure of your plane ownership. Before choosing a company for this turnkey, concierge-style service, you’ll need to weigh your options carefully, always focusing on selecting the service provider endorsed by your International Aircraft Dealers Association (IADA) Accredited Aircraft Dealer and other trusted private aviation industry experts.
During your investigative phase of selection, collect comparable information on each company you’re considering. You’ll want to obtain information and data on:
- Safety. Ask about the company’s accident and incident history and its Federal Aviation Administration (FAA) violation history. The company should be able to outline their Safety Management System (SMS) and describe the protocol they have in place for every service line they offer.
- Cost. Anticipate receiving similar monthly charges for managing your jet from multiple service providers. However, you could see line-item differences for pilot salary, training costs, fuel, landing fees, flight time charges, and start-up fees. Request a fee schedule so you can compare costs.
- Pilots. If you prefer to fly with your own pilot, you need not pay for pilot services through the jet management company. However, if you choose to allow the service provider to charter your jet (which could save you money), then you’ll need to know who will be piloting your plane, and how they’re hired and trained. We’ll discuss your chartering options later.
- Private jet maintenance and mechanics. Get a grasp on the service provider’s in-house maintenance department and who they hire. These should be industry experts with knowledge of your jet’s make and model. In-house maintenance can shorten down-time and quickly get you back into the air.
- Reporting. You should receive monthly reports from your management service. These reports should highlight your monthly costs, charter information, and other data specific to your jet. The report should always be transparent, and you should never be left with questions about the data you’ve been given.
Recouping Jet Costs with Chartering
Perhaps the most attractive option of working with a jet management company is that you could have the opportunity to recoup costs through their charter program. Some companies boast they can reduce costs of jet ownership by 80 percent by simply chartering your plane when your team isn’t traveling for business.
Of course, this cost reduction will vary, depending on how many times the company is able to charter your private jet and the flight hours incurred during each charter. However, the management service you’re interviewing should be able to provide an estimate for how much money you could save through their chartering program.
If your focus is on financial savings, the right service could reduce the cost of jet ownership enough to make your CFO smile. However, understand that you won’t be making a profit at any point. A good aircraft management company could get you up to 400 flight hours per year on your jet through chartering, but they won’t ever be paying you for contracting for their services, nor can you realistically expect to break even.
Find Business Jets for Sale and Trusted Management Companies at AircraftExchange.com
When you’re seeking to buy used business jets, you’ll find vetted listings of aircraft, from turbo props to large jets for sale at AircraftExchange.com. These aircraft for sale are represented by ethical, transparent, and knowledgeable aircraft dealers accredited by IADA, the only organization to provide accreditation to dealers all over the globe.
AircraftExchange also lists information on aviation service providers who have been vetted by IADA members for their capabilities, experience, and history of customer satisfaction. You’ll find the best in the private aviation industry, all on one easy-to-use website.
Find private jets for sale and reputable service providers now.