If you’re in the private aviation industry and regularly send clients around the world in hired private jets, you may well have wondered whether it’s worth simply buying your own fleet. Before you dive straight into the buying markets though, you need to appreciate that there are both pros and cons to such a course of action.
So, to help with this we’ve listed a few of these considerations to help you make your decision.
The Pros of Buying
- If you own your private jets, you have more say and choice over where you can charter flights.
- In addition, you can fly as and when you want. Plus, if your clients are running late, their flight will wait for them and take-off in the next available window.
- You get to put your own stamp on your fleet of aircraft and improve the image and awareness of your luxury brand.
The Cons of Buying
The following are the potential downsides to buying which could make hiring the better option:
- The purchasing and running costs can head into the tens of millions, and even higher if you buy larger airbuses.
- If you opted to invest in something used, then you also have the same concerns you get when buying used cars, such as the increased likelihood of repairs and parts failures.
- As technologies and styles change over the years, your clients would expect the same from a luxury private jet. In other words, you’ll need to pay for regular upgrades.
On top of the above points there are a few other considerations you should make. One of the main points is that the cost of aviation fuel is almost in a constant state of flux and it would only take one potential price rise to make ownership even more expensive.
Another factor is that it can be difficult to invest in a single private jet that will meet all the needs of your clients. It’s more likely you’d need to purchase a number of models with different specifications to fully accommodate all the preferences of those who use your services.
With all the above in mind the decision to hire or purchase is ultimately down to you and whether you have enough frequent flyers to make the annual running costs affordable and profitable. If you decide in the end that hiring is the best option, then the positive is that you have a variety of different options and private aviation companies to choose from.