Business Aircraft Charter & Private Jet Hedging
Short of outright ownership, Private Jet travelers today have two fundamental options: fixed-rate pricing through Fractional Ownership or Jet Cards, or variable pricing through on-demand providers.
Within the universe of fixed-rate pricing, there are three programs:
- Fractional Jet Ownership which represents a 5-year commitment worth seven figures, providing guaranteed access to high-quality aircraft at predetermined prices,
- Hourly Cards offered through fractional programs, using the same source of lift at a premium price (typically 20% higher), in increments of 25 hours, and
- Charter Debit Cards in denominations of $100,000 or more, using the broader charter fleet for lift at varying price points
The common denominator among all of these options is that they charge a fixed cost per hour of flight time. Through our research, we have concluded that such a pricing scheme is positioned to offer an attractive value on some trips, and a relatively poor value on others. In other words, fixed-rate models employ a "loss-leader" strategy: making outsized profits to offset for money-losing (loss-leader) trips.
PJS’s hedging philosophy is predicated on the notion that there is no singular private jet provider that is positioned to offer the best value for each traveler on each trip. Quite the contrary. Hedging involves a hybrid approach: arming private jet travelers with the information they need to make smart, savvy buying decisions about when to use a fixed-rate program, and when our program can provide a superlative value.
Clients enjoy the following benefits:
- Substantial savings versus their private jet program on a trip-by-trip basis
- Access to premium, late-model jets in every category
- Freedom to select a specific private jet make, model and seating configuration (rather than simply "light / mid / heavy"
- A personal, dedicated private jet concierge
- Safety standards customized for each client
- No requirement to place funds on account in order to participate