Air Charter Access Terms and Definitions
The Private Jet Charter industry is filled with all sorts of technical jargon and bizarre terminology. Below is a list of some of the most common terms and definitions you will see posted on this website.
On Demand Charter
On Demand Private Jet Charter is a term used to describe the pay as you fly option for Private Jet flights. On Demand charter tends to remain the most cost effective way to fly privately because the end user pays for each flight on a trip by trip basis with no program fees, monthly maintenance fees or large upfront capital contriubtions to join the program. The end user pays for the aircraft at the quoted price of the trip and pays nothing in between flights. In addition, there are no contractual obligations and no aircraft restrictions based on size or category. The end user can fly On Demand with a King Air 90GT for a trip to the Bahamas on a given weekend and then fly on a Gulfstream GV to Europe the following week only paying for the cost of each trip with no upgrade or downgrade surcharges.
Jet cards, or Jet Card Programs, are gaining in popularity and can be beneficial for travelers who will be utilizing private aviation on a frequent basis; typically 25 hours or more per year. Jet Cards do not carry long term contractual agreements, they do however, require a purchase price up front based on the number of hours purchased and the type of aircraft or category in which the card will be purchased. The Jet Card then acts as a debit card and is drawn down upon each time a flight or aircraft is secured. Jet Cards give guaranteed availability of an aircraft within a call out time of just a few hours.
Fractional aircraft ownership allows individuals and companies to purchase a share in an aircraft. The share translates into a predetermined number of hours starting at 1/16 share or 50 hours of time aboard the aircraft. Fractional ownership offers the benefits of whole aircraft ownership at a reduced cost. Purchasing a share in a Fractional Program involves an upfront investment that varies depending on the aircraft type and share size, along with a monthly management fee and an occupied hourly rate. The typical Fractional Program requies a five year contractual commitment but because the end user is actually purchasing a share of the asset, there may be some tax benefits in doing so.
Whole Aircraft Ownership
Many large corporations and wealthy individuals prefer to own their aircraft outright. Typically, someone considering whole aircraft ownership will have an extremely demanding schedule that requires them to fly 300 hours per year or more. Purchasing an aircraft is something that must be evaluated carefully; the cost of an aircraft will vary depending on the new vs. used and the size of the aircraft. A Hawker 400XP may be purchased in the right market for $5.2 million, while a Gulfstream V will cost $28 to $30 million at current market prices. It does not stop with the cost of the aircraft itself, you then have the cost of regular maintenance, pilot salaries and hangar space to mention a few variables. Even with these large expenses, it still remains to be beneficial for some to own rather than to Charter.Flight Quote
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Air Charter Access, Inc. acts solely as an agent on behalf of its customers when obtaining aircraft for charter. All aircraft utilized by Air Charter Access, Inc. are FAA certified under FAR Part 135 Regulations. Air Charter Access, Inc. does not own or operate any aircraft.