Charter, Jet Card, Fractional Ownership, or Whole Ownership? What Makes Sense for You in 2024?
Charter, Jet Card, Fractional Ownership, or Whole Ownership? What Makes Sense for You?
As private aviation becomes increasingly popular for both individuals and companies, it’s crucial to understand the different options available to make informed decisions. Since 1987, West Coast Aviation Services has offered a range of tailored solutions to meet diverse air travel needs.
Read on to discover if charter flights, a fleet pass, fractional ownership, or full ownership are best suited for your business or personal flying needs.
1. Charter (Up to 25 Hours/Year)
A private jet charter is a service that allows individuals or groups to rent an entire aircraft for personal or business travel, providing flexibility in scheduling and destination choices. It offers a customized, luxurious travel experience with privacy and convenience, bypassing the limitations of commercial flights.
Pros:
• One-Time Commitment: Perfect for those who need occasional flights without long-term obligations.
• Diverse Aircraft Selection: Choose from a fleet tailored to different missions and passenger counts.
• Cost-Efficient for Large Groups: Ideal for flexible group travel options.
Cons:
• Subject to Availability: Flights depend on aircraft availability, limiting spontaneity.
• Higher Costs: Daily minimums, ferry legs, and quoted flight times can increase costs.
Best For: Individuals or companies requiring infrequent travel, typically less than 25 hours annually, without significant commitment .
2. Fleet Pass (25-75 Hours/Year)
A fleet pass or “jet card” is a membership program with West Coast Aviation Services that provides all the benefits of chartered flights with additional perks. Compared to charter, you put up a credit that allows you access to a lower wholesale rate.
Pros:
• Discounted Rates: Offers access to lower wholesale rates with a credit purchase.
• No Long-Term Commitment: Freedom to opt out without extra fees.
• Access to a Diverse Fleet: Choose the ideal aircraft for each mission.
Cons:
• Upfront Costs: Requires purchasing a credit for future use, which may be a larger financial commitment than pay-as-you-go options.
Best For: Frequent flyers who want the flexibility of charter with more predictable costs, typically flying between 25 to 75 hours annually .
3. Fractional Aircraft Ownership (50-150 Hours/Year)
Fractional aircraft ownership is a modern and dynamic model of aviation ownership that encompasses most benefits of full ownership while significantly lowering the financial burden. Rather than investing a large sum of capital to buy in full, fractional ownership provides a pathway to own an equity stake in the aircraft. In addition to massive savings upfront, fractional ownership also reduces ongoing expenses and delivers a host of other advantages.
Pros:
• Tax Depreciable: Ownership provides potential tax benefits.
• Guaranteed Availability: Ensures aircraft availability, avoiding downtime.You tell us where you want to go, and we make it happen.
• Fixed Costs: Lock in rates for up to five years.
• Professional Management: Reduces the burden of managing the aircraft. Leave the maintenance, pilots, training, FAA compliance, and logistics to us.
• Pay for occupied legs only: Do not pay for empty legs.
Cons:
• Higher Initial Investment: Requires a substantial upfront cost, typically between $650,000 and $1.2M
Best For: Regular flyers desiring ownership benefits without full ownership responsibilities. Fractional ownership is ideal for those flying between 50 to 150 hours annually .
4. Full Ownership (200+ Hours/Year)
For those who are heavy users of private air travel, buying the plane outright makes the most sense. From an hour-used standpoint, heavy users are defined as over 200 hours of airborne trips a year. The initial investment and ongoing costs are the steepest but for frequent flyers, the low hourly operating costs make it the most cost-effective long term.
Pros:
• Maximum Flexibility: Full control over the aircraft, allowing you to fly whenever needed.
• Ownership Benefits: Provides a depreciable asset and potential tax advantages.
• Revenue Potential: The option to add the aircraft to a charter fleet can help offset costs.
Cons:
• Significant Capital Investment: Requires a substantial upfront investment, often exceeding $4-6M.
• Operational Responsibilities: Owners must manage crew, hangar space, insurance, and more.This can be avoided by hiring a management company such as West Coast Aviation Services to assist with a turnkey operation.
Best For: High-frequency travelers who want full control and financial benefits of owning an aircraft, flying over 200 hours annually .
Conclusion
Choosing the right private aviation option depends on your specific travel needs, budget, and long-term goals. Whether you’re looking for the occasional convenience of charter flights, the predictability of a fleet pass or jet card, the partial ownership and fixed costs of fractional shares, or the full control and potential benefits of owning an aircraft, West Coast Aviation Services offers tailored solutions to enhance your private aviation experience. Each option provides flexibility, safety, and privacy, ensuring you maximize productivity and enjoyment in the skies.