Starstruck

The executive jet: long a symbol of power and success, it is a sure way of knowing when you’ve reached the top. A private executive jet gives a CEO near instant reach across the world, arriving fresh and ready wherever he is needed. But for many mid-size companies, it is a goal that seems just out of reach. So what is the most cost effective way to get a private jet?

Our sources in the industry point to three separate models: purchasing a plane, joining a fractional arrangement, and chartering a jet. Each has its own advantages depending on a company’s situation.

Plane ownership comes with unlimited access, but the cost is steep. A company will need to form a flight department with the staff and budget to maintain and operate the aircraft. For all but the largest corporations, this cost is out of the question.

Fractional ownership represents a way for companies to collectively own a single plane. They share the costs of crew, maintenance, hangarage, and upkeep – making it cheaper by far for each company involved. This requires that the fractional owners set a schedule well in advance, however, and not go over their allotted usage. At the same time, if they use it too little they risk paying for more than they get.

For a company with a lower budget and a less definite schedule, chartering is the standby. This is the equivalent of renting a plane and its crew for a specified period of time. This tends to be the most economical option for mid-size companies, according to business planners.

Each method comes with its own advantages, but more importantly, they mark a growing trend: the necessity of access to a private plane when it is needed. Can your company keep up?

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