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ksaini13
Topic Author
Posts: 26
Joined: Fri Jan 15, 2010 3:10 am

Academic Project-Private Jets

Sat Nov 15, 2014 5:42 pm

Hello Airliners.net community,

I am a longtime user of this site and an aviation enthusiast. I am currently working on a school project about the feasibility of a private jet full service company. This would basically entail of two parts, a side catering to rentals and a side catering to ownership. The ownership side would be basically a nice graphical representation of the owners jet, where it is, where its been a lot of data that they can access easily in a neat format. The renting would be us compiling a database of charter providers and giving consumers the opportunity to book on a unified web and mobile platform. There would also be a ridesharing component in which people going to major events(sports recruiting trips, film festivals, shareholder meetings) could coordinate ridesharing for a small membership fee. If anyone could provide any insight into anything relating to this program that would be amazing and truly helpful. Thank you in advance.

A fellow enthusiast,
Kyle.
Kyle Saini- Aviation is my life! D90
 
wingscrubber
Posts: 823
Joined: Fri Sep 07, 2001 1:38 am

RE: Academic Project-Private Jets

Tue Nov 25, 2014 11:14 pm

Hi Kyle,

Your best bet for researching this project will likely be to take a look at some of the many existing charter/fractional ownership companies which are out there;
https://www.netjetseurope.com/
http://www.flexjet.com/
http://www.xojet.com/

There are others too, but I think the three above account for a lot of the Teterboro traffic, the private jet charter market is rather crowded. Back in 2008 they were all signed up for far more aircraft than they could actually buy, and when the credit crunch hit Wichita was suddenly flooded with white-tails when they all cancelled their orders, it's only just recovering now.

They all basically operate on the business model of rent/lease/lend, but generally, the bank owns the asset, the charter company just provides the crew, pays for the maintenance and tries to eke out a profit from the approx $4000/hr operating cost of whichever jet is being flown. Some companies are clever and offer charitable compassionate flights to hospital patients or people with disabilities to get the tax breaks. Savvy accountants will use aircraft depreciation and operating expenses to their advantage as well. I expect the state you base your aircraft in has an effect too, assuming the model is US based, as some have higher luxury asset taxes than others.

But the best explanation of the business jet business model I've come across is here (two parts);
http://www.forbes.com/sites/wheelsup...eally-costs-the-formula-explained/
http://jetbroker.wordpress.com/2010/...issected-part-2-of-talking-turkey/

Basically if you're smart, the get the bank to buy the plane for you, and make the plane work for itself and pay the mortgage on it's own, meanwhile you have a business jet for your own purposes at your disposal - this is all dependent on demand and availability of the aircraft. An older hangar queen will say goodbye to your bottom line if you can't keep her in the air.

-Pete
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