 Shared
Ownership: When 1,2,3 or more
individuals decide to "share the ownership" and maintenance costs of
owning and operating a "Micro Jet Aircraft." However described
in detail in the ownership agreement, the rules are laid out how all
costs are paid, who is responsible for paying "dead head" for any
specific trip, how a shared owner can be bought out if he/she wishes
to terminate their contract with the other parties, and even if all
parties decide to sell their present aircraft and purchase another
aircraft, is all spelled out in this arrangement...The pro's
are that this type of "shared ownership" is probably the best
"value" for the investors that don't mind once in awhile not being
able to take their private "Micro Jet" because another partner
already booked it, and thus is forced to take another private jet
charter or the commercial airlines a couple of times per
year...Also, since all/most expenses are shared and cost averaged
for flight costs per hour, per mile, per dead head, per whatever,
"shared ownership" is probably the most inexpensive way of owning
and operating a private "Micro Jet" aircraft...The con's are
that several times owners can have different views on expenses, who
pays for dead head, what options to pick or update, how many hours
per year are allocated per shared owner, who gets the aircraft for
this holiday, what color to paint the outside of the aircraft and
which pilots to hire, etc...This is very easily solved by starting
the relationship off with a great aviation law firm, which can
provide a very thorough "Aircraft Club Agreement" for all of these
owners spelling out exactly what is expected...
We can be of help to you in getting financing. If you are
seeking financing on an "early micro jet position," most banks if
not all banks, will require at least 35-40% down, a strong interest
rate of like 15% on the "position" until the time of aircraft
delivery; Thus, setting many interested parties back or "not being
able to buy the early position at all." However, here is how
we can be of help to you:
Also, please keep
in mind, that we bring "added value" by offering you the
following:
-Aircraft Club
Agreement
-Help in negotiating
and locating early jet positions
-Partner lead
generation in your area
Example:
aircraft costs $1,500,000 such as the Eclipse 500 Jet:
Upfront Costs if not financing jet purchase:
1 partner: $1,500,000 cost per partner
2 partner split: $750,000 cost per
partner
3 partner split: $500,000 cost per partner
Plus ongoing monthly/hourly
expenses of owning/operating a Micro Jet Aircraft...
Upfront Costs if financing jet
purchase: with 40% down: ($600,000 being financed):
1 partner: $600,000 cost per partner
2 partner split: $300,000 cost per
partner
3 partner split: $200,000 cost per partner
Plus ongoing monthly/hourly
expenses of owning/operating a Micro Jet Aircraft...
Sole
Ownership:
This is probably the "simplest" form
of ownership since no other parties are involved. The "sole
owner" is responsible for every aspect of his/her "Micro Jet
Aircraft." From paying the monthly expenses, updating the
flight logs, meeting with the accountant/cpa firm, hiring the pilot
(s), deciding whether or not to sell the aircraft, and how
everything is run on a monthly basis...The pro's are that you
don't have to go to any partners for approval for anything, nor will
you have any partners booking your aircraft when you wanted to go
take the family to Vail, Colorado for this year's ski vacation only
to find that another partner had already booked that time...The
con's are that you have everything on your shoulders including
but not limited to hiring the pilots, managing the expenses, and
making sure the aircraft's maintenance records are up to date.
However, many owners can "build in such responsibilities" to the
pilots to perform, thus freeing up time and stress for the owner, by
just paying the pilot to perform these monthly tasks...
Fractional
Ownership: You
can "buy into" an aviation's existing fleet of "Fractionally Owned"
aircraft. You can buy a share of any or all of the particular
aircraft, and these shares are usually distributed in the following
increments: 1/16, 1/8, 3/16, 1/4, 5/16, 3/8, 7/16, and
1/2...You would be responsible for a "Purchase Price" and this is
based on the share that you wish to engage. You then have a
"Deposit" which is usually about 10% of the "Purchase Price."
This deposit goes into an "interest bearing escrow account."
You then have a mandatory monthly fee (depending on what share you
purchased), and on the smaller "Micro Jets" can run from
$2,000/month to well over $20,000/month. Lastly, you then have
a "Per Hour" fee, which starts at around $800/hour and goes well
over $1,000/hour. The pro's to buying into a
"Fractional Ownership" situation is all management and operations
are done by the Fractional Owner/Managing Firm, and this allows you
the ability to not have to worry about every aspect of owning and
managing your aircraft. The con's to buying into a
"Fractional Ownership" situation, is it is much more
expensive and you are buying into the amount of hours per
year you think you are going to need (broken down by the shares:
1/2, 1/4, 1/8, 1/16th share), plus there are the monthly fees, the
large fee upfront, and then when you sell or get out of your
fractional ownership position there is yet another
transaction fee in order to do so. Lastly, you must be
made aware that most likely you will NOT be flying around in
the jet that you own a share in due to the "Fractional
Ownership" contract that you signed. Most owners are
NOT okay with this, and that is why they choose "Shared
Ownership" over "Fractional Ownership."
Air-Taxis:
"Flat Fee Per Mile & Paid Per Seat:"
You have already heard of the "Micro
Jet Air Taxi's" such as but not limited to Day Jets, Linear Air,
Pogo, Magnum Jet, Jet Birds, and others...Some will charge around
$1, $2, and upwards of a flat $3 dollars "per seat & per mile" and
are restricted to geographical regions in that they will start out
only operating in the North East, South East, etc...The pro's
are that you can contact a booking agent or go online, book your
seat in "real time," drive your car to the appropriate FBO they are
based out of, get on the plane and in moments you are off.
Also, there are no worries about owning and operating your own
aircraft, and for the business traveler who wishes to fly within a
specific region and doesn't mind having to pay "per seat & per
mile," then this is a very affordable way to go. Also, you pay
a very reasonable price "per seat & per mile," so if you figure an
average business trip of 950 miles at $2 seat per person, ($1,900
each way x 2=$3,800 roundtrip), and flying as frequently as 2x/per
week, then you are spending $395,200/year for 104 roundtrip
flights...If only going 1x/per week, then it would be half of that
amount or $197,600/year. The con's are that you are again
limited to a specific region currently, and you will have to share
the aircraft with other travelers as you would normally do on any
commercial airline and these "Micro Jet or VLJ Aircraft" have much
smaller cabins, and allow for much lighter weight limitations.
Air-Taxis:
"Charter By The Hour: "
For the business traveler that
doesn't want any worries about involving himself/herself with
managing and operating any type of private "Micro Jet Aircraft," and
just wants to make a phone call, book the entire plane for his/her
business associates or family, and get on the plane and go, then
this is the most "convenient stress-free" way to fly with no strings
attached. Some "Micro Jet Charters" will charge around
$1,200/per flight hour and upwards of over $1,750/per flight hour.
The pro's are that you can contact a booking agent or go
online, book your seat in "Micro Jet Aircraft" in "real time," drive
your car to the appropriate FBO they are based out of, get on the
plane and in moments you are off. The pro's are that
there are no worries about owning and operating your own aircraft,
and for the business traveler who wishes to fly within a specific
region and doesn't mind having a different aircraft much of the
time, then this is a very affordable way to go and if you have the
entire plane with no other passengers or fewer passengers then
usually the "weight restrictions" on smaller "Micro Jet Aircraft"
won't be a concern for you. The con's are that you are
again you will probably get a different aircraft much of the time,
and that you pay a pretty hefty price per hour so if you figure an
average of 100 hours/per year at $2,000/hour, you are putting out
$200,000 for that year when you possibly could buy your own plane
and share the costs as spelled out in "Shared Ownership."
Charter
By The Trip:
Many
times business executives build a relationship with a particular
person at a particular FBO or Part 135 and because of each parties
interests and goals, they are able to work out a "reduced charter
rate" because of the business executive's loyalty in giving a
particular Part 135 operator all/most of their business, and for the
Part 135's ability to offer the business executive the routine
routes and particular aircraft of interest to the business executive
on a regular basis.
Many times this works out great and
the relationship is strong between both parties. Many times
because of this relationship, the business executive has a friend in
the "charter business" and can often contact the charter company on
short notice to reserve "his/her" favorite jet. The pro's
are in chartering a specific jet and in working with someone you
have developed a relationship and trust with, that you are able to
pretty much pick and choose your aircraft and routes of interests,
get a reduced rate because of the volume you yield yearly to this
particular charter of choice, and have no other worries, and as
mentioned previously, you have the entire plane with no other
passengers or fewer passengers then usually the "weight
restrictions" on smaller "Micro Jet Aircraft" won't be a concern for
you... The con's are that you will have to usually pay
for the entire "charter of aircraft" and not "per seat" because
rarely will some other business traveler be flying the exact same
routes and times that you are, so you will have to pay for the
entire aircraft all of the time.
Pre-Paid
Jet Card:
You have heard of the Marquis Jet
Card, Sentients, Jets.com, Skyline Jet, Jet Network, Net Jets,
Flight Options, and other types of "Pre Paid Jet" time. The
"Pre Paid" jet cards have been around for years and were even
mentioned on Donald Trumps television series titled "The
Apprentice." Jet-setters purchase a "credit card" charged with
x-amount of "pre-paid" hours up front. Pre-paid hours are
defined as "wheels up to wheels down" in aircraft lingo...Meaning,
that as soon as you get on the plane, take off and leave the runway,
the wheels are off the ground, until the time the wheels come out
for the landing and are on the ground, that timeframe is what is
billed to the balance of remaining credits on your "pre paid jet
card." Make sense? Sure it does. Up until
recently, all of these companies were offering Light Jets, Medium
Jets, and Heavy Jets for "pre paid" cards. But, because of the
introduction of the VLJ's or "Very Light Jets," often referred to as
"Micro Jets," they are soon going to be offering the VLJ category of
"pre paid jet time." The pro's are that it is very easy
to whip out the "pre paid card," exactly like a credit card where
you get your statement monthly, and then jump on your own plane and
go. Since you have the entire plane with no other passengers,
then usually the "weight restrictions" on smaller "Micro Jet
Aircraft" won't be a concern for you. At an average of
$2,000/per flight hour, remember "wheels up to wheels down," you
will be paying about $200,000/year for 100 "flight hours," and
$400,000/year for about 200 "flight hours." The con's
are that you will have challenges in selecting which VLJ or Micro
Jet you will be given for any specific flight, and extra fees will
and do apply and you will be paying for the entire plane with no
other passengers on it...
Non
Pilots: This
may be an interesting read for you..."Single Pilot
Certified Aircraft."
Here is my view (from
a non-pilot)
on
buying, chartering and leasing "micro jet or light jet
aircraft..."
First and foremost, please read the below on "Micro Jet
Purchase & Financial Options" that I took the time to
write to give you all of your choices nicely laid out
for your review dependent on "your flight interests..."
Secondly, for all of the "non pilots" out there, such as
myself, that are NOT going to be co-piloting or piloting
their own "jet," I believe and feel very strongly that
it is imperative that "Safety" comes first, and "Cost"
comes second or third...
Therefore, any "Micro Jet" that is "Single Pilot
Certified" doesn't necessarily mean that it is going to
be in your best interests to just hire one full time
pilot, and fly around wherever you wish. There is a lot
going on that fill the schedule of 2 full time pilots
flying, and even though avionics have made great
advancement towards "automating the flight," it doesn't
mean that a single pilot is going to be in your best
interests...The only situation where I am okay with
this, is if the owner is a "pilot" and is "co-piloting"
the aircraft. I am not, please let me repeat, I am not
okay with one pilot and no one else helping out to
"co-pilot" the aircraft. Lets just take an emergency
situation where something happens to the pilot, who is
going to get the plane back on the ground safely?
So...Please take a minute to research your options
below...think about whether or not you are wanting to
"buy a jet," and "co-pilot" this jet, while having a
"full time pilot" at all times...Think about what
happens when things aren't going as planned such as
weather, turbulence, or even if the pilot isn't feeling
up to par. In otherwords, please build in some
"redundancy" just in case, to protect yourself, your
business colleagues and most importantly, your
family...Also, take some time out of your business days
and treat a "Micro Jet or Light Jet" pilot to lunch and
ask them about the following questions and then sit back
and think about what you can learn from their
experiences of 5,000 flight hours and 12 years flying so
that you can make the most informed decision:
a. What happens if there is a "bird strike" on the
windshield at 300 knots?
b.
What happens if there is only 1 pilot, and something
happens to that pilot?
c.
What happens if there is only 1 pilot, and the airplane
is having "technical difficulties?"
d. What happens if there is only 1 pilot, and the
turbulence is really bad, and the pilot needs help?
e. What happens if the pilot is not familiar with the
"approach" of the "destination" airport and is having
problems, who is going to help out? Many times,
there are pages and pages and pages to read in getting
familiar with an "airport's approach and departure."
f. What happens if the landing gear doesn't work?
Where is the "co-pilot" to help fix this while the
"pilot" maintains control of the aircraft? Or any
pertinent mechanical factor that isn't working correctly
or accurately measuring or a "power failure?"
g. The list of questions could go on and on, but at
least this gets you thinking..."about what could happen,
and if it can be safely handled by 1 pilot flying..."
These questions are for your safety, so that you can
continue to add to this list...
Other/Misc:
There will be other ways to finance your
"traveling options" and we will continue to update these as we find
out about them. Please continue to check back with us here
monthly, as we will continue to update you on this "breaking
information..."
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