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Block Charter Agreement

What are the pros and cons of chartering my plane? Such an option is the conclusion of a so-called “charter” agreement with a flight charter operator. In principle, you buy the flight time by making a down payment from the operator. Since there are so many variables, there is no agreement on the charter. This is why it is useful to get advice from experts before signing the contract. The advantage is that you should get a better hourly rate than for the typical ad hoc charters with this operator. You can leave it to the broker or charter operator to decide which aircraft is best for your trip. But just as it helps to get an idea of your needs before going into a car showroom, it`s wise to know what you need before shopping for private jet transportation. With a little effort, you can do it on your own. Use this Business Jet Traveler Buyers`Guide. Or go online and look for Air Charter. Here you will find links to websites that provide basic and useful information on the capacity of passengers, the range and speed of different business aircraft business models.

The National Business Aviation Association website is also useful. It`s worth reading the NBAA Aircraft Charter Consumer Guide that you can download. If you fly more than 300 hours a year all the time, owning full aircraft becomes a realistic consideration. Full responsibility gives you extra flexibility and control over the other options discussed, but adds costs, responsibilities and headaches. You can pay someone else to manage your plane for you. It is “aircraft management” and is carried out by companies that often offer charter aircraft. All rupture aircraft are in fact also managed aircraft. Some flight charter operators, aircraft brokers and fractions of aircraft suppliers offer a standardized form of charter, often referred to as a jet-card.

As with chartering, you give the jet-card company a fixed down payment for flight time on a given plane – usually about $60,000 to $300,000 for 25 hours, depending on the plane. In return, the company promises to provide you with an aircraft within certain time frames. The details of the plans differ, so it`s a good idea to look at several throw cards and read the fine print. A loyal and experienced block charter user can generally negotiate a better offer than the one offered by jetcard companies. If you charter 25 to 50 hours a year, you should consider both charter and jet cards. 15.1.1 20% of the charter price with immediate effect All large fractions of owners offer or are linked to jet cards. The first jet card, and perhaps the best known, is offered by Marquis Jet, which buys fractions of planes powered by netJets and markets the shares with its Marquis card. The largest charter operators also offer jet cards, in part to defend themselves against factional competition. The plane: All the planes that the company charterer charters. What they like is the consistency ensured by split property and the elimination of some of the anger of full ownership. These include the maintenance, shipping and hangar of the aircraft; Recruitment, training and schedule of pilots; FAA management; and insurance.

You pay these benefits through the initial purchase price of your stock, monthly administration fees and fixed flight hours. The duration of the agreement is usually five years, after which the supplier promises to buy back your stock at a fair price based on the current market value.

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