Using a Private Jet

How would you use your private jet?

When we do an acquisition for a client we spend considerable  time statistically analyzing the data on past flights (when available).  Most clients ask if that is really necessary  and the answer is unequivocally; yes.  They  ask why is it so important to know the frequency of passenger loads and certain  length trips…my answer is that we remember significant events more accurately  than ordinary events.  Clients will  specifically remember when they couldn’t fit their luggage on a flight or even  when they didn’t have the capacity for that additional passenger, these are  atypical usage trips: “outliers” from normal travel patterns.

Data determines the solution. 

I want to fully understand my client’s travel habits for beginning  to end.  Our memories will inconveniently dismiss the majority of  the trips that were uneventful.  These  trips will determine what private jet type is best to own.  Our objective is to buy the private jet that  is best suited for the 90% of the client’s usage.  In statistical analysis there are times when  the researcher dismisses the “outliers”…we never dismiss the outliers  especially when they are reoccurring however, we don’t want those infrequent  trips to determine the acquisition strategy either.

There are often “rules of thumb”…we all know of some…if you  are flying 25 hours per year charter or if you are flying 200 hours or more you  should own your own private jet.

Intelligent people strive for solutions to problems in a  time efficient manner.  Though these  rules can be the correct answer, it is usually a happen stance rather than  logical decision making.  For example I  had one client that was a large retail chain that was flying over 500 hours per  year…the rule of thumb says they needed to own a jet to solve their flying  needs…the data showed that best solution was charter or fractional  ownership…how could that be?  The answer  was this client has five regional offices that flew out to several stores on each  trip during one or two calendar days.    Additionally they wanted the flexibility to have more than one private  jet per day.  Because no decision is ever  made in a vacuum, the recommendation was fractional ownership due to the  company’s sophisticated accounting and vendor approval process.   The fractional solution was not the least  expensive but offered the ability to have a one stop solution which streamlined  the accounting and client interaction processes.

I want a jet because it is faster…

The best private jet for many missions doesn’t have to be a  jet.  There are some faster multi-engine turbo-props  that can nearly keep up with the jet competitors on the typical 600nm  trip.  The next question is whether or  not turbo props are as safe as jets.  The  answer is absolutely.  A professionally flown  multi crew turbo prop has a similar safety record to their jet equivalent.

How would you use the private jet is another example.  Would you only use it to supplement  commercial travel?  Would you only use  this private jet for earmarked trips with many passengers or just for family  vacations?  Don’t forget when the kids go  to college, they typically meet the family at the destination opting to fly  direct from school so you may not need as many seats as you thought.  How long do you stay when you do fly  privately?  This can be a major factor  when deciding what private jet service to purchase.

How much does it cost to fly that private jet per hour?  Again busy professionals want to have a  number of the cost to fly their private jet.   The most important factor is to remember all of your costs, acquisition,  fixed, cost of capital, operating costs with reserves, and disposition and  possibly tax recapture.  The true cost to  fly is the sum of all the costs divided by the number of hours the “client or  their employees/family” flew…not the number of hours the private jet flew for  other purposes such as chartered flights for an outside party.

So when you are considering acquiring an private jet insure  that you work with a firm that will help you understand what you really need  and how much it will cost.  An informed  decision will be the best entry into the world of flying on private jets.