Though the history of avionics began by Wright Brothers, little is known about Frank Whittle’s contribution to air transport. He was an English RAF officer who fathered jets. Today, the world would almost come to stand still without jets since they are essential components in a healthy economy. However, as jet development revolutionized, so did jet business adopt new terms such as commercial flights and chartering a jet.
The term jet chartering is mainly linked to influential politicians and accomplished business people but do you know you too can hire a jet and cruise at your own pleasure? Let us analyze the cost aspects related to chartering a jet.
How much does it cost to charter a jet?
Initially, chartering a jet would cost you a fortune since only a couple of single-minded companies controlled the business. But as time went by, more role players joined the market, and manufacturers diversified their inventories. You could now spot a large jumbo jet parked side by side with a nine-seater jet. This generally reduced the cost of flying as well as hiring a jet.
The average cost of renting a jet is over $2000 per hour. However, there are some in-between costs that will charge more. The size, type, and purpose of the plane are examples of factors you should look into while chartering a jet.
On the other hand, businesses wishing to dive into jet chartering should be wary of their decisions. Despite chartering a jet being an easy way of making money, you should draw a clear map of expenses and revenues and how they will balance. If you get it right, you will probably record millions of annual profits, but sometimes the situation might be too tough to keep you in the business.
The biggest contributor to flight chartering expenses is ’empty leg flights.’ An empty leg flight occurs when a customer hires a jet for one way. When a jet is on a one-way charter, the return flight is often empty or with a handful of passengers. This is expensive since the company must pay for its inputs and personnel involved in crewing the plane back to the base.
Can you benefit from empty leg flights?
While the empty leg flight might be expensive to the company, you can hire the plane back to its base at a discounted cost. But for this to be successful, you must patiently wait for the booked flight to alight its passenger before you board.
How much do you need to have to fly a chartered plane regularly?
Catering a jet is not cheap. It can literally suck your pockets and accounts dry or lead you to a battlefield with creditors. To be on the safe side of financial implications attached to a chartered plane, have a stable income of over $1 million per year. This will comfortably take care of the costs of your regular chartered flights.
Some financial analysts echo this by arguing that a stable income of $1million is not enough if not backed by an asset base totaling over $25 million. Either way, financial decisions related to hiring a plane depends on your needs and means. You can come together as friends and charter a plane hence reducing the cost.