Individuals who choose to fly privately are often the same people who truly understand the value of time. Many industry and business leaders make use of charter services or jet cards to bypass commercial terminals and rigid airline schedules. However, one’s travel needs can evolve. Does it still make sense to continue chartering, or is it time to consider acquiring an aircraft?
The economic tipping point
According to data from the National Business Aviation Association (NBAA), buying your own plane usually becomes economically viable if you are flying 175 to 200 hours a year. Why? Chartering costs are almost entirely variable. You pay a high retail rate when you fly, but zero when you stay on the ground.
Ownership comes with substantial fixed costs. You need to pay for crew, insurance and hangar fees even if the jet never moves. If you fly 50 hours a year, those fixed costs may be too much per trip. However, at more than 200 hours, you dilute those fixed costs enough that your hourly rate drops below the price of a charter ticket.
The value of operational control
Beyond the math, ownership offers benefits that chartering may not match:
- Access to more airports: Owners can land at smaller, more convenient airports that are often off-limits to charter fleets due to strict runway regulations.
- International and EU readiness: Flying a US-registered aircraft to the EU requires specific equipment and compliance with random ramp checks. Ownership allows you to equip your aircraft and tailor your operational manuals specifically for these mandates.
While ownership grants you operational freedom, it can also expose you to more liability. For example, you cannot ask passengers to “chip in” for fuel to lower costs. Under Federal Aviation Administration (FAA) regulations, accepting money can classify you as an “illegal charter.” This can void your insurance coverage and lead to federal penalties.
Invest with confidence
If you are constantly adjusting your schedule to fit a charter fleet, you have likely outgrown them. However, ownership brings complex regulations that a broker cannot address alone. If you are unsure how these rules apply to your specific situation, consulting with an attorney in aviation law may be necessary.