Private Jet Charter Models: Fractional vs. Managed vs. Owned

Selecting a private jet charter company can become overwhelming, especially when it comes to choosing between a fractional, managed, and owned model. We asked our private jet charter affiliate, JetSuite, to provide some helpful information on the three models for private jet charter, so that you can select the best option for your needs.

FRACTIONAL OPERATORS

Fractional Operators sell fractions of the planes they operate to the public and then contract to fly them. This is customarily the most expensive way to fly, as there is a high capital cost for the fraction, high monthly fees whether you fly or not, and high hourly fees when you do fly.

What to consider with this type of charter? The residual value exposure of the fractional model causes airplanes to depreciate quickly. If the operator goes out of business, you can’t get your asset back or charter the service that you need.

MANAGED OPERATORS

Managed Operators fly a jet belonging to a third-party for charter. While this can be a less expensive option, the owner of the jet takes priority over the charter clients. In some cases, an owner may be able to pull the jet out of charter service at the last minute. In addition to the lack of reliability, the pilots often work directly for the jet owners, not for the charter operator. This may affect the level of service provided to charter clients.

OWNED OPERATOR

As an Owned Operator, companies like JetSuite own their own jets and have complete operational control of them. Usually every pilot in this type of model is a full-time employee of the operator.

Why fly JetSuite?

• Transparency – JetSuite is the only private jet charter company who allows clients to generate an online, guaranteed quote. What you’re quoted is what you will pay, to the penny. Other companies only give you an estimate, and there can always be additional fees and charges after the fact (for example, they’ll charge you for having to unexpectedly de-ice the plane. JetSuite will not.) JetSuite also shows a full breakdown of all fees and components of your flight rate online.
• Fleet – JetSuite has a fleet of very young, fuel-efficient jets and has complete operational control of them. For flights on the west coast, clients can fly on the four-passenger Phenom 100s and, for flights east of the Mississippi River, the six-passenger JetSuite Edition Citation CJ3s.
• Technology and Safety– JetSuite has achieved ARG/US Platinum, the highest safety rating in the industry. To maintain their dedication to operational excellence and flight safety standards, JetSuite offers in-flight, real-time satellite weather mapping, safe taxi technology in every single aircraft, and WiFi access.
• Price – JetSuite is half the price of a fractional model. (Hourly rates with other companies are approximately $7,000; with JetSuite, it costs approximately $3,500).
• Low Risk – The very small capital commitment of a SuiteKey Membership (versus a fractional model) results in very low risk.
• Pilots – JetSuite pilots average 8,000 hours of flight time and are full-time employees; all are FAA-certified as airline transport pilots and typewrited(typewritten?) in the airplane that they fly.
• Convenience – JetSuite's simple contract (a few pages instead of the standard book that our competitors use) is posted conveniently on their website.
• Membership – JetSuite also offers a SuiteKey membership that allows clients to put money on deposit, giving them perks like lower hourly rates, more flexible terms, and higher priority for booking.
• Brand Recognition – Since JetSuite owns and operates its own aircraft (not via a broker) JetSuite has the brand power of the beautiful red stripe jets.
• Experienced Management – Members of their management have JetBlue pedigree.
• Board – JetSuite’s board consists of some of the biggest names in aviation (David Neeleman, Founder of JetBlue) and customer service (Tony Hsieh, Zappos.com CEO).

Have any questions? Would you like more information about JetSuite, or would you like to know which private jet charter model bests suit your needs? Feel free to contacts us in the comments section below, or call JetSuite directly at 866-779-7770.