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September 12, 2008, Newsletter Issue #89: Chartering vs. Owning a Jet
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Tip of the Week
The differences between chartering and owning a jet can be compared based on two criteria, one is cost and the other is the aircraft available for the flight. When you own a jet, you are responsible for either all or a fraction of all the costs, depending on full or fractional ownership. These costs include purchase costs, maintenance costs, applicable taxes and stamps, pilot salaries, landing fees, fueling costs, license fees, storage/hangar costs, insurance costs, inspection fees, overhaul costs and possibly some other costs and fees.
By owning the aircraft you have that single airplane available either full time or according to your fractional ownership share. The ownership of an airplane limits your ability to chose the best aircraft for each particular trip you are taking. If you have need for a short trip with a few people and wish to land at a small airport, your best choice may be a TurboProp, however if you wish to fly across the country and take a group with you, a medium or heavy jet would be your choice so there is no need to land and refuel, plus save significant flight-time.
If you own the airplane outright, you can only fly that plane and none other. If you own a fractional share, you can usually fly that particular aircraft or depending on your contract you may be able to select another aircraft and usually pay an additional fee and incur certain limitations on availability. In either case, you can only depend on the availability of your contracted aircraft, and sometimes be able to select a different one.
When you charter your aircraft, you have none of the responsibilities of ownership, nor the limitations of the size of any particular airplane. With an aircraft jet charter, there is no up-front purchase price, maintenance fees, airport hangar fees, ongoing fuel costs, nor the burden of hiring a crew and caring for storage. You select the exact airplane you need for each trip, whether you have 4 or 40 traveling. In addition, rather than having to make your way to the airport where your plane is kept, you fly from the airport most convenient to you. All charter costs are fixed based on your trip, so you know exactly what to budget, with no hidden or surprise expenses that come with ownership. You can call a charter agent 24 hours a day, 7 days a week and discuss your needs in detail and they can have the exact aircraft ready for you in as little as 4 hours notice anywhere in the world. Plus they can also take care of any additional amenities you may need, such as, catering, an onboard chef, limousine service at both the departure and destination airport, hotels and any other travel related needs you may have. You simply pick your departure point, destination and the group you are taking, the agent takes care of the rest.
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Exclusive Sponsor
Blue Star Jets Launches First Private Aviation Rewards Program in Industry.
In an attempt to build customer loyalty, Blue Star Jets charter clients and their SkyCard members can now receive points for every trip they book.
SkyCard members are automatically registered in the rewards program when they buy a SkyCard, and receive five points for every dollar they spend. After enrolling, charter customers receive one point for every dollar spent.
Members can then shop on-line for special gifts and merchandise from companies such as Callaway Golf, Movado, Coach, Nautilus Home Gyms, Samsung, and Bang and Olfsen. Over 2,200 high-end, luxury products are offered.
Blue Star Jets plans to add several thousand more options over the next year, from luxury vacations to access to exclusive events taking place around the world.
A reward program is a nice incentive, but there's more to picking a good on-demand charter broker. Helium Report's Decision Guide to Private Jet Travel shows you all the factors to consider - such as safety, call-out periods, crew quality and so on.
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