An increasing number of Canadian individuals and businesses are shunning fractional jet ownership programs in favor of flexible block charter programs. So, if you presently own, lease or fractionally own a private jet for personal or business use, should you be tempted to follow suit? Here are the four main considerations that may help you decide.
1. How Diverse Are Your Needs?
Your first consideration should be whether your existing private air transportation solution effectively meets your needs. Fractional ownership of a jet can lock you into one particular aircraft. This may not suit your needs and you may be paying more than you need by chartering an aircraft under full occupancy. A block charter program can suit organizations or individuals with diverse needs as preferential rates are applied across an entire fleet of aircraft. This means that whether you require private air travel for one executive or a small group of employees, you can cherry pick the ideal aircraft.
2. Are Membership Fees Affecting Your Cash Flow?
One drawback of jet ownership or fractional ownership is that registration and membership fees materialize sporadically depending on usage. Many jet owners choose to join aircraft management programs for preferential rates on fuel, insurance and maintenance. However, management programs still charge membership fees that can affect the cash flow of private jet owners. One benefit of block charter programs is that the fees are inclusive and the cost structure is simplified. This means that there are no management, registration or maintenance fees.
3. Do You Need More Flexibility?
Block charter programs have the benefit of being highly flexible. Instead of owning just one or a part of one jet, a member of a block charter program has the flexibility to choose the best jet from a whole fleet of aircraft. This enables individuals and business owners avoid the responsibilities and commitments associated with ownership or fractional ownership of jet aircraft. As opposed to being tied into one particular aircraft, members can have one preferential rate applied to a wide variety of aircraft.
4. Are You Overpaying For Management Fees?
One of surest routes to cost effective jet ownership is to join an aircraft management program. By handing over the running of the jet to a management company, the running costs of the aircraft can decrease significantly. However, high management fees can eat into the cost savings and many jet owners choose to offer their assets for charter to offset these costs or to utilize aggressive leasing. Block charter programs have no management fees and may offer a cost effective solution to private aircraft travel in place of jet ownership.
Block charter programs for private jets are becoming increasingly popular across Canada as they offer the benefits of fractional ownership without many of the drawbacks and pitfalls. Such programs appear to offer an attractive solution for individuals and businesses in need of a transparent, dependable and flexible solution to their travel requirements. In summary, businesses with highly consistent needs may do better with fractional ownership while companies with diverse, changeable needs may benefit from block chartering private jets.
Author Bio: Warren Brown is a freelance blogger and an ace creative write with many years of experience writing for top blogs. Warren has written on a myriad of topics and has written several posts for us.