American Air Charter Network

For business owners, it is time to look into the benefit of private jet charters! The cost of chartering a jet is very affordable when you think of the costs associated with transporting employees Large or small group charters are convenient, and cost-effective. If you are transporting a large group, private jet charters are much more safe and comfortable than flying commercially.

On chartered jets, you don’t wait in long lines. Airports are smaller, and there are less people around. Baggage is claimed quickly, and walks are much shorter. On a private jet, commercial flights that require an overnight stay may be completed in one day with a same-day flight back!

One major benefit of private jet charters is that you are closer to your destination. Ground transportation costs valuable time and money when flying commercially. You spend more time having fun or working when charter jets are used. On your way back, land closer to your home or your place of business! As the old saying goes, “time is money,” and if you are saving time with a private jet, you are probably saving a great deal of money too.

For business use, saving money is a key factor when deciding to charter a jet. With large groups you can charter a jet to hold everyone, instead of breaking people up into different flights. Small jets can hold about six people, medium sized jets can hold up to about 9 people, and large jets can hold between 10-60 people! Instead of paying for commercial flights and baggage fees, save money by utilizing a private jet charter.

As you can see, using private jet charters can save a lot of time and money. Personal service, luxury, and employee goodwill are additional benefits of going with a charter. Book yours today!

You may be thinking that it’s still too early to think about it, even with the economy on the rise.

But for many business people, purchasing a private jet is a smart move. To make it more rational, we have come up with the following ten steps to buying a plane:

1. Analyze the Cost-Benefits

A private jet will cost millions. Typically, ownership of a jet is justified by 350-400 hours of flight time per year. Think of hidden costs. Pilots, fuel, catering, and insurance add up. Depending on size and usage, aircraft management companies will take care of these tasks for you, for about one hundred thousand to two hundred thousand dollars annually. Like a car, repairs and maintenance can keep your plane from moving. Expenses vary greatly, but can be as much as $50,000 per part. Purchasing or using a private jet can mean trouble with public relations if you area business executive or have been bailed out by Washington. Clear it with PR first!

2. Estimate Your Needs

Three sizes are available: small, medium, and large. Small jets can take 5 to 8 passengers an average of 2,000 miles, for three to eight million dollars. Medium sized jets can take 9 passengers up to 3,000 miles, for an average of nine to sixteen million dollars. Large jets can carry 14 passengers more than 4,000 miles.

3. Find an Aircraft

Consultants are available to help with your search for the perfect aircraft. The jet search process can be done by a management representative or broker. It may prove to be difficult to do it alone, but if you prefer this method, you can try controller.com or aerotrader.com.

4. Test It Out

Take a spin in a new Gulfstream before making the purchase. James Peragine recommends it for all his clients, especially prospective new buyers. By the time you are ready to make the purchase, chances are you’ve already been a passenger on a business jet, and know what the cabin area is like. Sometimes manufacturers will provide demo hops around the airport area.

5. Inspect the Jet

Make sure the jet you are trying to buy is in good flying condition and that is worth the price that is being asked for it. Good inspections can uncover flight safety issues, especially in older aircrafts. Getting your prospective purchase inspected can save you millions in expenses!

6. Financing

Dave Cribbin of Tailwind capital Group says loans are typically made in three to five year terms. Standard legal fees apply to any purchase. Since the Great Recession, many lenders such as Merrill Lynch, Center Capital Corp, and CIT among others have stopped providing financing for aircrafts.

The market has slowed considerably for sales and refinancing. James Peragine says “Over the past year, planes have been a lot like houses… everyone’s been trying to sell them for what they were worth last year, not this year.”

7. Get Legal Assistance

As you make a purchase, there are many tax planning and FAA compliance issues to account for. Your lawyer will need knowledge in the rules of flying, insurance, and aviation tax law.

8. Design It!

There are tons of ways to make your aircraft one of a kind. Body interior by high-end designers costs about 85 million, not including the frame. People have created medical suites, installed gold showers, full dining rooms, hot tubs, and even mini movie theatres!

You can always refurbish an older plane. Major redesigning ranges from $750,000 to $2 million and can take several months.

9. Missile Defense

Missile defense systems cost about a million dollars, and are not certified for use by civilians. You may have to win an election if you want this option!

10. Get a Management Team

If you are not part of a large company with a flight team, you will most likely need someone to manage your investment and keep your aircraft flying! Management companies do a lot of tasks, including: overseeing plane maintenance, accounting, selecting crew and pilots, and coordinating flights.

They can even help charter your plane when you aren’t using it!

When you think about it, it’s a good time to get one. Compared to a couple years ago, the market for jets is down 20-50%, making planes more affordable.

Two important thoughts. First, you shouldn’t do it alone. Buying consultants and companies that manager aircrafts, like American Air Charter Network, can put together the purchase, and keep your plane in the air. Of course, this isn’t free of charge.

James Peragine, President of American Air Charter Network, says that he deals with billionaires all the time that just want to do everything themselves. But they don’t think of everything that can go wrong. There isn’t a handbook on becoming an overnight jet expert.

Secondly, you don’t have to buy. For specific trips there are easy ways to charter planes. Or, there are fractional ownership and jet club options, where you can pay according to flight hours.

As the spread of the Swine Flu continues, top paying business travelers are resorting to charter operators like Jet Direct Service Ltd and Air Charter Services Plc.

Air Charter Services, an operator with $200 million in yearly sales, based in Kingston upon Thames, England, grew an average rate of 32 percent from May until August, according to Tony Bauckham, Chief Executive Officer.

In a recent interview, Bauckham says most new clients are “high-net-worth individuals.” They have had 54 more flights in August than they did last year in executive jet flights. The increased flights are based partly by people not wanting to go to general flight terminals.

The charter business, worth around $33 billion worldwide per year, is in high demand due to the pandemic. British Airways Plc, Air France-KLM Group, and other rivals that carry scheduled service might be harmed if the shift in flights continues. Airlines look to first class travelers for profit in this time of recession and dwindling sales.

Penny Butcher, a London based Morgan Stanley aviation analyst, believes that over fifty percent of revenue is accrued from premium customers on longer flights.

According to the World Health Organization, the Swine Flu has killed an excess of 2,800 people and infected over 254,000 since April. In the last month, fatalities increased by over fifty percent and infections have continuously risen.

Increased Flights

A director at Jet Service Ltd, Rob Dore, says “Swine flu has certainly increased traffic.” Large corporate clients are becoming increasingly concerned about the health of their staff.

Usually charter passengers fly from a small terminal at an airfield and book a whole plane. 2,000 pounds per hour is the going rate for a midsized jet, David Savile, an Executive Officer for Air Partner Plc said.

For someone flying solo, a flight from London to New York would cost about 15,000 pounds, or $25,000.00 for the 7 1/2 hour flight. According to the British Airways website, a first-class one-way ticket for the same trip would cost 4,102 pounds.

A Loss of $6 Billion

According to the International Air Transit Association, in the first half of the recession, the airline industry as a whole lost more than six billion dollars because swine flu panic caused customers to travel less. The group says that travel in first and business classes dropped 21%.

The CEO of Air Arabia PSJC, based out of United Arab Emirates, says “A lot of people are not traveling because of the swine flu… Swine flu is bigger than the economy.”

The move to charter jets is not yet causing a stir with airlines. When asked about the impact of swine flu on premium customers, Philip Allport of British Airways says “It’s business as usual.”

In 2003, when Southeast Asia suffered the SARS (Severe Acute Respiratory Syndrome), private jets were requested by executives so they could avoid overcrowded areas. The pattern is predicted to repeat itself, according to England-based air partner, Gatwick.

Overall Decline

According to Federal Aviation Administration data, the use of chartered business jets in the United States has declined since the beginning of the year. There was a ten percent drop in July compared to a thirty percent drop in February. In Europe, there has also been recovery. According to Eurocontrol, the use of jets for business fell fourteen percent in July compared to a twenty-four percent drop in February.

Howard Gollop, Chief Executive Officer of New York based Imperial Jets Inc, says “We’ve gotten calls from various parts of the world.” Customers are voicing concern about the illness internationally.

The economic recovery and the swine flu concerns have helped the charter business overall. Growth is in the forecast for the USA, and in the second quarter France and Germany have exited their recessions. Airlines are waiting to see if the swine flu will still affect travel.

Frank Skodzik, an analyst at Commerzbank AG in Frankfurt, says “The big risk would be if the virus turns more hostile… that would be a major threat to air travel.”