Starting around late April, enquiries from frequent charter users started to come in wanting comparisons of the costs of charter compared to the costs of owning a jet. Since the emergence of Covid-19, people are anticipating using private jets more frequently and like the idea of owning their own jet for health and safety reasons.
One of our first priorities as a broker is to find out the underlying motivator in purchasing a jet. Is it led by the idea that owning an aircraft is less expensive than chartering one? Or is the driving factor a more emotional one, such as a desire to always know that transportation is available to suit your schedule?
There are many factors that could be motivating potential buyers, but one of the first pieces of information we share is that ownership will never be cheaper than charter, but there are intangibles of ownership which keep 21,000+ people owning jets.
When only comparing financial figures on a spreadsheet, ownership will not make sense to you. By the time you factor in maintenance, depreciation, cost of capital and crew salaries, ownership will always be more expensive than charter. However, if you consider and value the intangible, but very real, benefits of owning your own jet, then it is the only way forward.
The single most important part of helping clients become happy owners is expectations management. By being aware of cost estimates up front, you can eliminate most of the problems that will arise to make you disappointed with your aircraft.
We have seen circumstances when a person buys a jet and is unaware of the full costs of ownership. Several months into ownership, they are unhappy and want to sell the aircraft. This costs the owner both time and money. It hurts their pilots who have lost their job, and the management company who has lost an aircraft in their fleet. Unhappy owners affect the entire industry. With that said, we firmly believe that happy, satisfied owners are those who are aware of what ownership as a whole entails. With the right expectations, that person will stay in aviation for the long run and love the experience of owning an aircraft and all it can offer.
The real benefits of jet ownership are intangible. These intangibles provide immense value and are what keep owners in their jets for years.
FLIGHT SCHEDULE
As the owner of your own jet, you know exactly when your aircraft is available. You can fly it whenever you want and are not reliant on a charter company’s schedule which, as any charter user will know, can be tricky especially in the busy summer months.
When it’s your jet, you can decide to leave your aircraft with you at your destination to be ready for you whenever you want, an option which is either not possible or very expensive with charter aircraft. It can be ready at your whim. Similarly, if a last-minute trip pops up, you know you can make it as your plane is available for you at your schedule.
INTERIOR CONDITION
Your aircraft will be in the exact condition you want it to be in. Many charter aircraft show the wear and tear of many hours flown and some can be in a very bad state. When you own the jet, you know exactly how it is being taken care of and can maintain the condition you gladly want to see it in every time you get on board.
CONFIDENCE
The maintenance of your aircraft is completely known to you. The history of your pilots is entirely known to you. As the owner, everything regarding your jet is known to you. This is a psychological benefit that is huge for people, especially nervous flyers.
HYGIENE
In the last few months, the importance of hygiene has come to the fore front. We have spoken with many jet users who are no longer comfortable flying in jets that many people fly in. If you are taking a chartered jet home from the south of France in the summer, odds are that another group flew down in it that morning. Management companies have policies to clean the aircraft to a certain standard, but when you own your jet, you know exactly how well and in what manner your aircraft has been cleaned and who has been on it. Many of our clients are in the higher risk category for COVID-19, and hygiene and sanitization have recently become more important.
PRIDE OF OWNERSHIP
Based on years of conversations and experience, if we could rate the intangibles by value added, pride of ownership would be at the top of the list. To most owners, hard work and determination have yielded the financial success required to purchase their jet. It is a statement of accomplishment to them, and they like to know they have earned the luxury and convenience it affords them. It becomes more what the asset represents than the asset itself.
Jet ownership must be looked at as an entire package, not just from a financial standpoint.
We would love to see more individuals become part of this industry, but we want them to come in with their eyes open to costs and other factors, so they can truly enjoy the ownership experience for what it is – a personal, convenient, relaxing, and luxurious way to travel.
This article was first published in our Fly-By Newsletter Issue 16. For market updates and more articles like this, subscribe to our newsletter and receive it directly to your inbox. Subscribe through the contact box below or at this link: Subscribe here
