Private aviation can offer great flexibility and security for family offices and the clients they serve. Families interested in flying privately have many items to consider, such as ownership options, fixed and variable costs, aircraft selection, taxes and staffing. One must also determine mission requirements, makes, models and price points.
There are considerations that go behind simply finding the best deal out there. So before jumping into private aviation, it is essential for family offices and their advisors to deeply understand the impact of all available aviation options and how to benefit from them.
Let’s take a look.
Weighing Privation Ownership Options:
There are two overarching categories for private jet ownership — full ownership and fractional Ownership.
Many new and tenured users of private aviation find fractional jet ownership appealing. Fractional ownership often comes across as a low barrier to entry for those new to private aviation. It is also an easy way to supplement private ownership for industry veterans not necessarily needing to buy another aircraft. Fractional shares are a valuable investment if flight activity and volume align with each individual mission, aircraft make and model aside. But there are frequently many fractional ownership elements not considered when weighing all the aviation solutions.
Full ownership may make sense for family offices with high usage or flight hours. However, we recommend on average an annual expected flight capacity of more than 300 hours. One must also consider the maintenance and management requirements of owning an aircraft, either on your own or working with a management company.
The Case For Charter:
Private aircraft charters ultimately provide more flexibility without forfeiture of service and safety and lessen certain financial risks. However, for family offices that already have some degree of aviation capabilities, there are times when the family’s needs will exceed the available resources. In that situation, an outside aviation consultancy can bridge the gap between what type of aircraft the family flight department has in-house and the needs of a special occasion. It can also help develop a strategy for a family office for when in-house flight assets are in maintenance or won’t meet a particular mission’s needs.
Hire Subject Matter Experts:
Aviation is highly regulated. For example, FAA regulations will impact a family jet’s usage if the family sells a business without planning for future use and ownership. FAA regulations even impact private flight options, such as purchasing a fractional interest or buying an interest in an aircraft with other families. Make sure that the team you bring on to support the family office — whether an aviation consultancy or a collective group of people — are subject-matter experts and familiar with the details of your family’s planned usage, dynamics and business.
Taking Next Steps:
Private aviation is a big step for a family office, and PJS knows that anyone considering private air travel likely has many options — from ownership to fractional to charter. It is essential to weigh the options down to even the finite details when investing time and money.
Whether you own an aircraft and are looking for supplemental lift or exploring solely charter options, the PJS team provides access to the same level of comfort and reliability as an in-house flight department. We even work directly with family office managers on a recurring basis to ensure all of your family’s travel needs.