More and more businesses and individuals are realizing the efficiency and productivity benefits of private business aviation. But what method of private aviation would best fit your needs or the specific needs of your company; purchasing an aircraft or chartering one? The differences between ownership and chartering can be compared using the following questions:
- How many hours are you estimating to fly per year?
- What type of missions will be flown?
- What will the average passenger count be on the aircraft?
The answers to these questions should be tailored to fit specific situations and needs, regardless of whether you are considering personal or business travel.
Whole Aircraft Ownership:
With whole aircraft ownership, you have complete control over the plane and crew. You know where the plane has flown, who has been on it, how many hours it has logged and when it was last inspected. As the owner, you have control over whom you hire to fly the plane and what their experience level is in that particular type of aircraft. The plane can be equipped the way you wish, to your specifications and you can be certain that the aircraft is maintained to your personal standards.
Advantages of whole aircraft ownership include:
- Complete flexibility on scheduling, including usage on an ad-hoc, short-notice basis
- Tax benefits associated with depreciation
- Reduced operating costs, through generation of charter revenue (if you have elected to put the aircraft on a charter certificate)
- Opportunities for appreciation in the value of the aircraft
- Variable operating costs can be defrayed by making the plane available for charter to third parties (Doing so will not reduce flexibility or trip planning)
- YOUR AIRPLANE, YOUR SCHEDULE!
Disadvantages of whole aircraft ownership include:
- Large capital outlay
- Cost inefficiencies for low utilization owners (usually fewer than 300 flight-hours per year)
- Inflexibility on aircraft size/type
- Requires personal supervision
- Risk of market value fluctuations
Aircraft charter is attractive to individuals that frequently travel on short notice, must visit multiple locations within a short time frame, or for individuals who travel to areas that lack adequate commercial airline service. When you charter an aircraft, you have neither the responsibilities of aircraft ownership, nor the limitations on the size of aircraft available for your trip. You select the exact airplane you need for each trip, whether you have 4 or 20 people traveling. The price of your aircraft charter is going to vary depending on aircraft performance, size, passenger capacity and the duration of your flight.
Advantages of Aircraft Charter:
- Flexibility in the choice of aircraft to best fit your trip
- No large capital outlay
- Avoid the risk of market value fluctuations
Disadvantages of Aircraft Charter:
- Aircraft availability may be limited, especially for short-notice trips
- Not as effective for one-way travel or long layovers
- Personalized service varies from charter company to charter company
Your charter experience should be professional, personal and productive.
Aircraft ownership and aircraft charter offer you and your business a unique opportunity to maximize your time, efficiency and productivity, while giving you the freedom to enjoy the things that matter most to you.
DISCLAIMER: Statements and opinions expressed in this article are those of the authors, editors and publishers. While care has been taken in the compilation of this article to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. Keystone Aviation will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within this article.