Admittedly this is one of the toughest times on record for the industry, be it operator, manager, or owner. When we launched the Fractional Forum in 2003, we had already laid much of the groundwork for the Jet Owner Group. The idea was to fill the void: Give the person in back truly objective and honest information on how the industry worked.
The key to navigating uncertain times is to understand what you already know. The private air charter industry exists at the pleasure of those who are generous enough to buy an aircraft for the local, regional, or national charter operation of their choice. Being smart about investing in that aircraft typically means understanding all the dynamics that erode the fixed, variable, and true depreciation costs.”
- Experts, not Salespeople: Work with airplane people, not marketing people. From the late 90s until today, jet, fractional, and card owners have been educated primarily by marketing people, not airplane people. So much so that to this day, some still believe that either their fractional investments are viable or that a “one way rate” really exists in a meaningful way.Crystal Ball It!: Understand the next 10 years and how the new regime in DC and the backlash against small aircraft and airports is altering how aircraft are used and taxed. While the IRS is likely sharpening the necessary tools to alter your Part 91 use of any aircraft, consider the value of getting to know the industry better in order to ensure the long term viability of your aircraft’s use and management.
Keep Doors Open: There are always lots of options. There are 4854 potential aircraft operators / managers in the world for 9 pax or less by our count. Of them, there are 3358 in the US, a dozen of which are possibly the best fit for your needs. How do you find the best fit in the midst of everyone? Use tools and data that filter the information for you wisely, objectively, and efficiently.
Stay Informed: View free previews of digital books about the industry and aircraft reviews that offer expertise at your finger tips. Entering any negotiation, management relationship, or even a simple charter flight with more knowledge significantly alters the dynamic in your favor.
If you’d like any more info on the professionals behind www.jetowner.com or what we have on tap, don’t hesitate to email me.
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