Private Jet Travel--What's the Best Option?

I think these days, those who travel privately are looking for anonymity above all else. because of the silly stigma that's now attached to private jets, many people are hesitant to be seen getting on or off a private jet.

If you're a CEO, and you own a plane or a fractional share, you're listed with the FAA as an owner. Any snoopy reporter can find out what kind of plane you own. For some companies, being able to fly privately 'under the radar' is a big deal. You can do this by chartering or by purchasing a jet card through companies like Marquis Jet or Sentient Jet. Or, you can simply do 'on demand' charter from a local or national operator.

These options let you enjoy flying privately without owning anything--a benefit in today's gotcha media culture.

Fractional Ownership or a Jet Card?

Normally, usage breaks down this way:

1-50 hours: Charter or Jet Card
51-200 hours: Fractional Ownership
200 + hours: Used aircraft or whole aircraft

It also depends on some other factors:

1. Do you need multiple use? More than 1 aircraft in a day?
2. Do your trip profiles indicate a variety of missions? Short trips of an hour or less, but also trips that are cross country?
3. Do you want an aircraft purchase that shows up on your books or would you rather have it written off as an expense.

Just a few guideline to help you determine what you should buy.

If you're looking for some help as you determine your travel needs, please email me at:
susan @susanadamshome.com.

Jet Card or Fractional Ownership

With all the products available in business aviation, there are always questions about which product or program is better for an individual buyer.

It depends on your needs, but here are a few guidelines:

• If you don't want to tie up the capital required for a fractional share (usually about $300,000 minimum), then a card is the better option
• If you're looking for asset depreciation, fractional provides for this option
• If you don't want to list a tail number with the FAA, then a card is the best choice. Keep in mind, if some nosy person at an FBO takes a picture of you with your tail number, you could be the next person to be villified by the press.

Those are just a few comparisons.

More in a future post.

Susan

Private Jets: A Lot of Scrutiny

Let's face it, the Big 3 did a lot of damage to business aviation. Not because they flew their private jets into DC for congressional hearings. The damage was done by their refusal to defend WHY a private jet is an essential business tool for business executives.

How about...

1. Time savings: the guy(or gal) in your company who makes the most money shouldn't be waiting in the security line at the airport.
2. The ability to have meetings on a plane. Even in first class, you can't gather 4 or 5 people and have a confidential business meeting. On a private plane, you can.
3. Visiting multiple locations in one day. try doing that on a commercial airline. You're lucky if you can visit one city in a day and get home at a decent hour.

Instead of doing this, they drove hybrid cars to DC for their next session. Just what your shareholders want to see. you wasting your time to score points with congress!

Fractional Jets Subject to Property Taxes?

California has started the process to levy property taxes on fractional jet programs. For those of you unfamiliar with fractional ownership, people buy a fraction of an airplane. They can buy 50+ hours per year--that would be a 1/16th fractional share.

For years, states have been trying to figure out a way to tax the owners or operators of the planes.

If you have a 15 million dollar plane sitting in a hanger, wouldn't you want to subject it to taxation?

Because these planes fly all over the country, they're not really based or permanently hangared anywhere.

With many states trying to track down revenue anywhere they can, the fractional providers could be in court other places than California.