What are the private jet costs I should be concerned with? The expense of owning and operating an aircraft can be divided into two areas - fixed jet/aircraft costs and variable jet/aircraft costs. A brief description of both follows.
Capitalization Costs: This is the purchase or lease amount for the aircraft including interest.
Hangar: Executive Fliteways will arrange to have the aircraft stored in a secure, heated hangar with 24-hour operational access. The costs vary with aircraft size and airport location.
Aircraft Insurance: Executive Fliteways aircraft are maintained on a fleet policy, which provides the most comprehensive coverage available in the aviation insurance industry. Two components of insurance, hull coverage and liability, are required and the limits chosen will determine the costs. Hull coverage is determined by the assigned value of the aircraft and we recommend a minimum liability limit of $100 million.
Flight Crew: Executive Fliteways will screen, interview and conduct background checks of flight crew candidates. These individuals will be presented to the client for final hiring approval. The costs for flight crew hiring, screening, drug testing, uniforms, communications, salaries and benefits vary with the type of aircraft and crew position.
Flight Crew Training: Executive Fliteways conducts ground, flight and simulator training for all crewmembers. We are firm believers in the philosophy of Simuflite, the company that provides our simulator training ? ?The best safety device in an aircraft is a well-trained pilot?. Our program at Simuflite requires initial and annual recurrent training, and the costs vary with aircraft type, crew position, and phase of training.
Management Fee: Executive Fliteways provides a variety of administrative services that are covered by this fee. They include scheduling aircraft, coordinating maintenance, dispatch, accounting, FAA compliance monitoring and record keeping, sales and marketing of the charter aircraft and the preparation of monthly management reports. The amount of the management fee varies with the size and complexity of the aircraft, as well as the amount and type of flight activity.
Maintenance Subscriptions and Navigation Data: We will ensure that your aircraft is equipped with the charts, maps and approach plates required to navigate the aircraft as well as any and all maintenance and service manuals. This includes computerized maintenance tracking as well as the computerized or online updates for both the navigation systems and maintenance bulletins. The cost will vary as to the extent of the geographical regions covered. In addition, any manuals required for the aircraft operation or pilot training are provided.
Aircraft Stock and Supplies: The aircraft are stocked with standard beverages and snacks. The owner may choose special items to be stocked for his own trips.
Miscellaneous: These items or services are billed on the monthly management statement and may include special owner requests, one-time fees, or services outside the normal scope of business.
Fuel: The fuel consumed by the aircraft varies with the size and type. The price per gallon varies with location, and we make every effort to negotiate fuel price in advance or to pre-arrange contract fuel at many airports.
Aircraft Maintenance and Parts: All maintenance is performed under the supervision of our Director of Maintenance, either in-house by our mechanics, or at specialized outside vendors. Owners are made aware of major maintenance for their budgetary and scheduling purposes and are provided with a detailed report each month of all work performed on the aircraft.
Engine Reserve: Since jet engines have a limited number of hours before they require major maintenance such as overhaul, each hour of flight incurs an accrued amount for this expense. Certain companies have created engine insurance plans that allow the owner to pay ?by the hour? for these costs.
Examples are Executive Fliteways' EMS program: The high costs of jet engine repair and overhaul make these programs recommended. The hourly rates of these programs are determined by engine type and manufacturer.
Charter Fee: This is the amount paid to Executive Fliteways for each charter flight, as a percentage of flight hour revenue. This charge does not apply to Part 91 (Owner) flights.
Crew Hotels, Meals, and Travel: These are the expenses that are incurred by the crew while out on trips. The owners of aircraft pay the actual costs.
Catering: Food service requested by charter customers are associated with that charter flight. Food services requested by aircraft owners are billed at actual cost to the aircraft owner.
Landing and Parking Fees: These costs are billed to the owner as incurred on each flight.
Aircraft Cleaning: Most of the cosmetic maintenance of the aircraft is handled at home station. This includes exterior wet wash, dry wash, lavatory service, carpet shampoo, polishing of bright work and the cleaning of the interior cabin. Costs for cleaning vary with size of the aircraft and services provided.
Oil and Other Shop Materials: These consumables, which include turbine oil, hydraulic fluid, aviator?s oxygen, nitrogen, TKS fluid and methanol are provided as required.
Occasionally, additional costs for the safe and timely operation of a flight may arise. These may include off-station hangarage during inclement weather, de-icing of the aircraft, international fees, international handling, customs' fees, and over flight permits. These costs are billed to the owner as required.