There are numerous benefits to owning a private jet. Flexibility, comfort, and being self-sufficient are all wonderful features. But protecting your investment and knowing that you are in safe hands should come as part of the package.
In this article, we will explore some of the key factors you need to consider in order to understand how to choose a private jet aircraft management company.
How to Choose a Private Jet Aircraft Management Company
As a private jet owner, safety should be your overriding consideration above all others. When choosing a private jet management company, you want them to reflect this mantra too. Everyone will want your business, but it is up to you to do your due diligence and ask the relevant questions.
You’ll want to consider the following:
- Does the private jet management company have things such as ‘just culture reporting’?
- Do they have a safety management system?
- Are they audited by third parties on their safety culture?
- Is there an accountable person with regard to safety?
- What is the history of the company?
- Is the private jet management company fully compliant with regard to FAA rules?
Here are some things you need to consider in order to understand how to choose a private jet aircraft management company.
Costs
Of course, it isn’t going to be cheap. That doesn’t mean that you shouldn’t look for great value when choosing a private jet management company. It is well worth investigating all of the costs before choosing. Here are some areas that might seem small but will add up to a greater whole and can be quite variable across the industry: –
Crew Costs
How much does the management company pay their pilots and crew? Is it the ‘going rate’, or do they offer extras that would likely be conveyed to potential owners?
Administrative Charges
From rostering and scheduling to aircraft utilization and billing, some companies charge for every individual decision, while others include it as part of the package. Is maintenance oversight included? Scheduling and dispatching? As a result, managing and administrating how the aircraft is used can often come with additional associated costs.
Insurance
It is well worth checking insurance liabilities and what is offered. Some companies base the premiums on the value of the hull, and others are limited in terms of what they do and do not cover. If you need to call on insurance, the time to find out the limits of coverage isn’t after something has already happened.
Hangarage, Parking Fees, and Extras
While it may seem relatively trivial smaller fees such as hangarage and parking can soon add up, especially if the jet isn’t being used regularly. Additionally, does the management company have hangarage available or will your aircraft be parked outside when at its home base?
Fuel is also a big consideration. If the base of your chosen operator charges above the going rate for fueling the aircraft or adds supplements, then this can soon begin to add up if the jet is being used often.
Pilots
Is your aircraft in safe hands? Most likely, but this is worth considering when choosing a private jet aircraft management company.
You may have a preference for your own pilots. However, some companies can offer to utilize them as part of the package.
Alternatively, you might require a greater degree of flexibility. For example, many management companies have a pool of cross-trained pilots over several different types of jets. They are also responsible for managing the finer details of a pilots ‘employment’ such as benefits, terms and conditions, and HR considerations.
Chartering Options?
If you seldom use your jet, you can consider using a management company to charter the aircraft. This will allow them to utilize it when you aren’t flying the aircraft for your own trips. The upsides of this agreement are that you might be able to reduce the cost of owning and operating a jet.
However, it should be noted that there is a downside depending on your charter agreement. If you find that the aircraft is being utilized more often, you can sometimes expect a significant increase in overhead costs. Limits such as checks based on the number of hours and cycles flown will occur more quickly!
Maintenance
Speaking of hourly checks, you will certainly want to think about maintenance agreements. A well-maintained airplane will save you money in the long run. But hopefully, you haven’t forgotten the very first point we made either? Safety first.
If your chosen private jet aircraft management company completes maintenance in-house and on-site, this provides you a greater benefit. Your aircraft will be available more often, and as a result, you can enjoy all of the benefits and flexibility that come along with it.
As a happy aside, you’ll generally find it cheaper and quicker to entrust your aircraft’s maintenance requirements to an in-house management solution than searching for a third-party maintenance provider and trying to coordinate it.
Transparent Billing
Have you ever entered into a service agreement and struggled to understand the cost breakdown? Often the little ‘hidden’ things all add up.
Ideally, you want an invoice to arrive and immediately be able to see the costs involved. By getting a detailed breakdown, you can closely monitor what you have paid for and why.
Aside from financial implications, you can gain a full sense of trust in your private jet management company by having a transparent billing method.
Go with Your Gut?
If something looks good and feels good, it probably is good. There is little scope for operators breaking the rules in such a heavily regulated industry and going ‘beyond the pale’. All that said, even with regulation, some companies are better than others.
How did you feel when you reviewed your options? Who had the information you needed readily to hand, and how were you treated as you made inquiries? Any company that didn’t have time to value you before you were a customer is unlikely to offer any improvement after committing to them.
Knowing how to choose a private jet aircraft management company means treading a fine line between cost-effectiveness, good value, and customer service. There are a lot of considerations and owning a private jet can be complex. However, companies like Sun Air Jets have a wealth of experience in managing private jet operations. With Part 145 maintenance approval, detailed financial reporting, and the ability to manage their personnel, they are an excellent choice for managing your jet.
Contact Sun Air Jets to discuss your private jet aircraft management today.
