10 QUESTIONS for Your Private Aviation Company

 October-November 2009

What should you know before going private? David McCown, U.S. president of Air Partner, a private aviation firm, tells you what to ask before making any decisions.

 

1. Why should I fly private?

You have privacy. You don’t have to check in early. You go directly where you want to go, on your schedule.

2. What are the options for flying private?

You can own your own aircraft or be a fractional owner. There are card programs, which work like debit cards. There are on-demand charters.

3. How do I know if private travel makes financial sense for my company?

If you have three or four high-level managers all earning more than six figures having to spend time going through commercial airports, you’re losing productivity. Plus, they
may not be able to speak confidentially on a commercial flight. Will they need to stay in a hotel because of commercial schedules? All these things affect the bottom line.

4. Companies that use private jets have gotten bad press. Can I avoid that?

Don’t fly on your own aircraft—its movements can be
monitored by tail number through third-party services like FlightAware or FBOWeb. Instead, charter a plane, which can’t be traced to you. Generally, charter providers are discreet, but make sure you communicate your need for privacy.

5. How can I mitigate environmental concerns?

Many aviation firms have partnered with carbon offsetting companies like CarbonNeutral. Use newer, more efficientaircraft. We may soon start seeing operators mix biofuel with jet fuel.

6. How do I know if a company is financially sound?

Publicly traded aviation companies are transparent. Examine their financials. Make sure the company isn’t relying on its next trench of venture capital. But most firms are privately held. Ask for their audited financials. If they aren’t willing to share them, move on.

7. What kinds of jets are available?

Jets come in four categories: Light jets like the Lear 40  seat up to seven and usually do not have an enclosed lavatory (beyond a curtain); mid-size like the Hawker 800 can seat up to eight, and have an enclosed lavatory and limited galley; super-mid-size like the Citation X can hold up to nine and can go transcontinental nonstop; and large like the Gulf- stream V hold up to 15 passengers, have an extensive galley, AV systems, nice bathrooms and seats that turn into beds.

8. What does chartering cost?

A typical light jet should cost about $2,200 an hour. A mid-size, $2,800; super-mid, $3,600; large jet, $5,000. If you aren’t going roundtrip, you’ll have to pay for the jet to return
home. If you don’t like that fee, consider a jet card program, which may have a higher  hourly rate but covers aircraft positioning charges.

9. How do I know the planes are safe?

All chartered carriers are vetted by the FAA, so they’ve met minimum requirements to fly passengers commercially—this is not just somebody with a private pilot’s license.

10. What amenities do I need?

If it’s a longer trip with people you don’t know, you’re going to want an enclosed lavatory. You may want Internet and telecom service. There are lots of catering options. You can get as specific as you want. You’re paying more and you can expect more.

Curator