Travel & Places Budget Travel

Jet Charter, Lease of Purchasing – Which One is the Better Option?

When you decide to have an aircraft for your use for tours and travels that might be occasional or frequent, you will have three options before you.  First you can go for jet charter that could be public or private jet charter.  Second you can have an aircraft on the lease basis and third you can outright purchase jet aircraft for your use or use by your company.  Several factors, very naturally, will influence your decision in this regard.  However you can bring down the issues broadly to only three.  These issues are Aircraft Usages, Organizational Structures, and Financial Issues.

About aircraft usages –

Everything depends on your having the proper infrastructure.  This means when your use will be limited and you do not have the necessary infrastructure, purchase of aircraft may not be a practicable proposition for you.

A possible alternative could be taking aircraft on lease basis.  Such lease agreements are normally conducted on the basis of either the ACMI or the Wet lease program. The former is used for season purposes only.  When some airlines commence its charter services they also ordinarily start with this program.  The other one is for longer durations and the lease continues till it is dissolved in mutual agreement.

The process of Air charter –

For occasional flights the Air Taxi or the Ad hoc charter is the most suitable course for you.  This type of charter is better suited for you when you are traveling between non-serviced stations. The process will be financially viable and time economic too.

On the other hand for frequent traveling and greater use of the aircraft, you should go for the frequent membership charter process where you can have the jet charters as and when required. There are many such programs available across the country and you can easily have one. For even greater utilization and more frequent tours and travels you can opt for the public charter that would be the most convenient option for you.

About the organizational structures –

Commercial use and operation of aircraft requires infrastructure.  Such infrastructure will require the space for landing, trained and skilled personnel to handle the aircraft and ground level duties, and above all the facilities for maintenance of the aircraft. 

You have to obtain AOC to organizationally run your aircraft services commercially.  In such situation you can operate your flights under the public charter contract.  Here a third party organization will operate the flights for you under their own AOC.  They will also be responsible for all aspects of the flights. 

Since the certification process takes considerable time and is also a bit cumbersome, start up airlines and other tour operators might use the aircraft under the Public Charter Contract system.

Financial status –

The most important aspect of your jet charters is the financial status of your company.  Jet charter or even private jet charter is an expensive proposition.  You will have to consider several factors in deciding your course of action.  This includes economy of utilization, regulations and legislations, and the organizational structure that you have. Each of these factors has a financial aspect and that is what will determine your ultimate financial status. Yet jet charter has many benefits over the traditional airlines and various lease options and may turn out to be profitable in the ultimate analysis.
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