Private Aviation Travel Alternatives: Fractional, Card, and On-Demand Charter

WHAT IT IS

The benefits of flying privately hardly need explaining. Private jets offer vastly superior comfort, convenience and flexibility over commercial aviation. In an era where airlines continue to cut flights, set new lows for delays, and subject passengers to tedious and time consuming security procedures, private jets allow you to fly anywhere you want, when you want, with an absolute minimum of hassle. Until recently however, these substantial benefits were outweighed by the prohibitive cost of jet ownership making flying privately out of the question for all but the most wealthy travelers. The establishment of fractional jet programs, card programs, and the evolution of on-demand charter however have opened up the world of private aviation to a larger audience than ever before.

At the high end of the spectrum of private jet travel alternatives is fractional ownership. Pioneered by NetJets, fractional ownership companies allow individuals to purchase a share of a private jet, which entitles use of that jet, or other jets of that model in the company’s fleet, for a defined number of hours per year.

Card programs essentially work like a debit card for private jet travel. With a jet card you purchase hours aboard a particular aircraft type ahead of time (usually in 25-hour increments). When you’ve used up all the hours on a particular card, you just buy another one— there’s no lasting obligation or risk involved. Card programs can be divided into two main groups – fractional cards and charter cards – which differ based on the source of the planes you’ll be flying on. Fractional cards use the fleets of fractional jet companies, whose planes are not always in use by their owners. Charter cards, meanwhile, source planes from large networks of charter operators. Fractional card programs are usually more expensive, seeing as they provide a higher degree of aircraft consistency and safety. Charter cards may however, be a better bet, since they often times allow for more flexibility in aircraft types and availability.

On-demand charter – contracting flights individually through an operator – has been around since the beginning of the aviation industry, but advancements in technology and access to aircraft, are making it a much more attractive option. While a majority of the country’s charter operator’s are still so-called “mom and pop” businesses, flying just a few aircraft, sophisticated booking systems like Virgin Charter have networked charter inventory across the country making it far easier to book a flight. Meanwhile, increased competition and transparency is making on-demand charter more affordable.

WHAT IT ISN’T

None of these alternatives allow for the maximum flexibility that comes with owning your own jet— you won’t be able to install those leopard print couches either. At the same time, while these options offer significant savings over private jet ownership, any form of private jet travel remains more expensive—orders of magnitude more expensive— than even a first class ticket.

HOW MUCH IS IT?

Jet fractions are priced more or less as a direct function of the total price of the jet. So if a top of the line Gulfstream G550 goes for about $50 million, a 1/16th share (good for 50 hours of use a year) will set you back a little over $3 million.

Charter card pricing varies according to the type of plane you are purchasing time in. Marquis Jet charges $126,900 for 25 hours in a small jet like a Citation V Ultra, all the way up to $349,900 for 25 hours in a Gulfstream G450.

If cost is your main concern, on-demand charter is probably the best option. Because each flight is priced out individually, what you pay will best reflect the actual cost of the flight to the operator. Whereas the per hour cost for Marquis Jet’s G450 breaks down to around $14,000, with a charter operator you could pay as little as $9000 an hour for the same flight.

QUESTIONS TO ASK

Before signing up with any private jet travel program there are some important questions to ask. As always, safety must be a primary concern. All of the major fractional programs have excellent safety records, but if you are using a charter operator, or a charter card, it behooves you to learn about their safety and service history. Make sure they work with either ARGUS or Wyvern (the two major private aviation safety auditing firms) certified.

If you have special requests for your flight you should also make sure to be vocal. Flying with pets? Children flying alone? Just have to light up at 35,000 feet? Clear it with the company before you sign anything.

Finally it’s important to look for hidden costs. Many programs have a fuel surcharge which can substantially increase flight costs. In many cases you’ll also be charged for the so-called “dead head legs” where you’re plane is maneuvered to pick you up. Be sure to find the company’s policy on this as well.

Before settling on a particular aircraft type, make sure that the airports you’ll be flying to can accommodate it. Shorter runways at airports in remote locations often don’t have enough room for the larger planes to land and take off.

FINAL WORD

As much as these private jet travel options provide a less expensive alternative to whole ownership, it is still difficult to make the case for flying privately strictly from a value perspective, at least in a financial sense. In the end the decision to fly privately ultimately resides in values like your time, your comfort, and your privacy. Flying privately is still expensive, and is likely to remain so, but there’s no doubt about it: if you can afford it, it’s worth the money.

In choosing a private jet travel option, it’s best to have a good idea about what your own needs are. Planning on flying more than 50 hours a year? A fractional is probably the way to go. Are you only likely to fly on a private jet for a special trip once in a while? You’re probably best off with on-demand charter. Somewhere in between? A card may be the best option.