More and more individuals and businesses are choosing to fly privately to increase their options and convenience in the sky and even reap various tax benefits. People aren’t just thinking about the balance sheet, though — much of the appeal of private aviation comes from the opportunity to enhance your lifestyle.
There are many options to consider when flying private, and it’s important to evaluate the compatibility of each choice with your personal needs, in addition to analyzing the financial implications of such a large decision.
The Benefits of Private Aviation
Although it’s costly, private aviation comes with several advantages. For starters, many clients are pleased to find that flying privately greatly enhances the accessibility of certain travel destinations. Flying on a major carrier might come with some limitations because certain areas do not have adequate commercial airline services or major airports, but with a smaller, private aircraft, you fly directly to your destination without the inconvenience of layovers or long security lines.
Additionally, health concerns during the COVID-19 pandemic are influencing decisions to fly privately, as fliers are more in control of their surroundings and can therefore limit exposure to other passengers and the spread of sickness. This doesn’t just ease concerns about COVID-19, though — these benefits apply to all clients with health issues and potentially vulnerable conditions.
Factors to Consider
Flying private is not a one-size-fits-all process. There are various questions that you should ask yourself when determining the option that will best suit you and your needs. Some of these questions include:
- How long are your trips? Do you usually fly one-way or round trip?
- How many people usually travel with you?
- How many hours do you anticipate flying per year. What’s the minimum lead time you want for booking flights before departure?
- Is your need for private aviation a short-term need, business commitment, philanthropic endeavor or a permanent lifestyle change?
- How will the purchase impact contributions to your lifestyle or legacy investment portfolios?
Private Air Travel Options
There are four primary options to choose from when pursuing private aviation, including jet cards, charters, fractional ownership (leasing or sharing) or purchasing your own aircraft. The experienced advisors at Waldron are here to help you navigate these options through coordination with private aviation companies.
- Jet Cards: These are a popular choice for those who are new to private aviation and fly roughly 15 to 40 hours annually, as they provide a good balance for both private and commercial needs. Jet cards offer more flexibility than other options, functioning similar to prepaid debit cards, allowing clients to pay for their purchases up front. You only need to pay for the hours you fly.
- Charter Flights: Chartering an aircraft is another good option for those who have less experience with private aviation and less of a need. Clients should consider chartering if they plan to fly less than 15 to 20 hours per year for a mix of private and commercial trips. For example, a chartered flight might be right for someone who is planning a special family vacation or an annual work retreat, but otherwise flies commercially.
- Fractional Ownership (share or lease): Fliers should consider this option if they plan to fly more than 40 hours per year and want to invest with a three- to five-year commitment. This option is more appropriate for those who have previous experience with private aviation, as it’s meant to simulate the experience of owning your own plane, without the responsibility of managing the plane, crew, operations and maintenance.
- Purchasing Your Own Aircraft: If you fly more than 200 hours per year, purchasing an aircraft outright might be the best choice for you. This is ideal for those who regularly fly on private aircraft and plan to do so for years to come, as it is a large upfront commitment which comes with high annual costs, including the cost of capital. Clients who pursue this option must be willing to charter out a plane to offset annual costs, although it can present scheduling conflicts when it comes time to fly.
Choosing the right private aviation option may seem overwhelming at first, but Waldron is here to help you identify the best purchase option to satisfy your private aviation needs and experience one of the greatest travel luxuries in a way that is customizable to you, your family and your business.
