Let’s face it, airplanes are complex machines, but we believe a Keystone Aviation managed aircraft can be a valuable tool to enhance your business and elevate your personal life. When you consider regulations, safety, training and insurance, among other things, the complexity associated with operating an aircraft can be rather daunting. Management companies provide expertise and experience to navigate these complexities and to make aircraft ownership as simple as possible.
So here are 8 reasons to use an aircraft management company.
Convenience – One of the major benefits of aircraft management is the convenience. With one phone call, an aircraft owner can schedule a flight. The management company takes care of all of the details, including: checking the crew’s certifications and rest requirements, ensuring aircraft maintenance compliance, assigning the crew, fueling, hangar needs, ground handling, crew accommodations and transportation, de-icing, catering, etc. The management company will often arrange passenger accommodations and transportation as well. However, the convenience of aircraft management reaches beyond coordinating flights; in fact, all of the benefits listed in this article play a part in the convenience provided by aircraft management.
Safety – Clearly, safety is always the primary concern when it comes to operating an airplane. Management companies offer safety programs and processes aimed at enhancing the safety of your aircraft’s operations. From independent audits to Safety Management Systems, management companies have the resources and the expertise to focus on safety.
Asset Protection – Did you know that approximately 20% of an aircraft’s value is in its logbooks? Without proper maintenance, documentation and record keeping, the value of your aircraft can be significantly diminished. Management companies provide the services needed to protect the value of your asset, such as maintenance tracking programs, outsourced maintenance oversight and even fireproofed storage for your aircraft logbooks.
Compliance – Complying with FAA regulations is not an easy task, but being out of compliance can be costly. Aircraft management companies employ professionals in various disciplines from flight operations to maintenance to taxes who are there to help navigate the complexities of aircraft laws and regulations.
Cost Savings – Management companies can often achieve economies of scale which generate cost savings for the aircraft owner. For example, management companies that operate multiple aircraft purchase more fuel for their combined fleet than a single aircraft owner. Thus, the management company can often negotiate lower fuel prices than an aircraft owner can on their own. These economies of scale can translate to savings in training costs, hangar rates, insurance premiums and many other areas.
Charter Revenue – Management companies which also operate charter aircraft can provide yet another advantage. Specifically, the management company can often charter an aircraft when it is not in use by the owner (with the owner’s approval of course). This charter revenue can then be used by the owner to reduce his/her operating costs, making aircraft ownership more economical.
Staff Management – While aircraft management agreements differ, often the management company employs the pilots, mechanics, bookkeepers, record keepers and flight attendants needed to operate an aircraft. This arrangement allows the management company to alleviate the aircraft owner from the burden of payroll and benefits administration, HR compliance, employee training, etc. This arrangement also generates cost savings in that the aircraft owner isn’t required to pay wages for people her/she only needs occasionally.
Reporting – A management company will often provide detailed reporting of aircraft expenses to the owner. Keystone Aviation sends out reports monthly to aircraft owners which detail expenses by cost categories such as fuel, catering, maintenance, etc. Management companies can also track expense trends over time and help to identify cost saving opportunities. Let us know if you need a specific set of metrics for reporting and we can customize a report on any interval needed. We just started utilizing new fuel purchasing software; look for new fuel reports coming soon!
So now you know more about the many benefits of aircraft management and why it is a great choice for so many aircraft owners.