Jet Advisors Blog

Fractional Light Jets

Posted on Tue, Sep 24,2013


Cessna Citation V UltraIf you have private trips 1,200 miles or less, and you have six or fewer passengers, it is likely you could utilize a small jet or light jet as they are called in the industry. There are many models on the charter market and within fractional and card programs and light jets can range from the smaller four-seat Cessna Citation Mustang or Embraer Phenom 100, to a six/seven seat Cessna Citation Bravo to a rather large, eight/nine-seat Westwind (note the Westwind offered may be over 30 years old). Light jets offer good performance, access to shorter runways, and a cost-effective alternative to more expensive midsize and large-cabin aircraft. Offering better speed than propeller driven aircraft, using a light jet is a good answer for intra-continental flights.

While light jet performance and range may meet your needs the cabin space on board and baggage capacity of a light jet is at a premium. A six or seven seat jet looks roomy when empty, but once loaded with six or seven tall and or large adults, might be a little tight for a longer trip. Thereare many on-line resources (like jetadvisors.com) to help you familiarize yourself with the cabin layout and show the pros and cons (speed, range, passenger capacity, baggage space, head room, lavatory type, if any, and field performance) of the light jets available in the market place. If you are planning on ordering catering or bringing food on your trip, check if the jet has any food storage, refrigeration or warming capability. Most light jets do not. If you like your beverage in a cup or glass be sure your provider or caterer includes the glasses as most light jets will not have these on board.

Consider the length of time you will be in the air. Most light jets have a lavatory, but some of the older models do not. If it does, be sure to ask if it is fully enclosed with a solid door or just a privacy curtain. Also most experience flyers know that the longer the trip the smaller the cabin feels over time.

As with all aircraft, there is a balancing act between passenger count, baggage and fuel that is allowed on board to stay within the jet’s operating limitations.  With light jets, if you fill all the seats with people, you will have to carry less fuel, resulting in a fuel stop. Also, more passengers might mean you will need to travel very light. There is nothing worse than showing up to the ramp only to have your crew inform you that you won’t be able to bring all the baggage you brought. A competent provider should discuss these things with you prior to or at the time of booking your flight. Filling all the seats, flying non-stop, and bringing an abundance of luggage, a step up to a larger or more capable aircraft might be necessary, so consider the Citation Bravo.

Top Issues When Buying Fractional

Topics: fractional, fractional ownership, fractional share, fractional program, fractional jet program, fractional co-owner, fractional light jets, phenom 100, embraer phenom 100

What to Know About Buying a Challenger 604 Share

Posted on Wed, Apr 10,2013

Are you thinking about buying a fractional share on a Challenger 604 through Flexjet? A Hawker 800XP through NetJets? A Phenom 100 from JetSuite? Are you leasing for the first time or want to make sure you've got all your bases covered before you enter a new agreement?

David Beach, former Senior Vice President of Contracts at NetJets and current VP of Administration at Jet Advisors, is beginning a series of blog posts on what you need to know before you agree to a fractional share or lease on any airplane. 

 

Fractional Programs: Know the Terms & Conditions (Part 1)


Challenger 604 fractional share lease private jetWhile at first glance, they appear to be very similar in structure and offerings, not all fractional programs are the same - and I am not referring to just aircraft types offered. The terms and conditions governing the programs vary for each provider as well as the agreements used. Consequently, the terms and conditions as well as the documents should be reviewed and understood before you sign on the dotted line.

The document that accomplishes this is either a fractional interest purchase agreement or lease agreement. In either of these agreements, there are things to be aware of, and in some cases, they can be negotiated away or made more favorable to you.One thing, though, is common to all programs. To become a member or owner (as the fractional programs refer to customers), you must acquire ownership of an interest (also referred to as a share) in an aircraft.  This is accomplished in one of two ways: either an outright purchase (yes, you buy a “piece” of the aircraft) or through a lease. In the purchase scenario, you receive a bill of sale for the share and are registered as a partial owner of the aircraft with the Federal Aviation Administration (FAA).

Does the provider make reasonable efforts to position the aircraft in a "tax-friendly” location at time of delivery?

What is the guaranteed term of ownership or leasehold? Most programs have a 5-year initial term (60 months), and some give you the option to terminate early after a preset minimum term of ownership or leasehold. If you terminate early, are there penalties or fees? Most ownership structures have a brokerage fee due at termination based on your share’s fair market value at the time of termination regardless of whether you go full term or terminate early.

Since the brokerage fee is based on your share’s fair market value, how is that value determined? Do you have the option to dispute it, or is it take-it-or-leave-it? Is the repurchase at termination guaranteed in a certain time frame, or does provider have to find a new buyer before they buy back the share?

Business corporate private jetWhat are your rights if the provider defaults or ceases to do business? For the large providers this is unlikely, but if it did happen, the market would be flooded with aircraft, values would plummet, and you would be holding the bag along with the other owners with shares on the same aircraft.

Another provision to be aware of is assignability. Can you freely assign to an affiliate or to a third party that is unrelated to you or your company? If the share can be assigned, are there fees required for documentation, filings, movement of the aircraft, etc.?

What are your obligations for registering the share with the Cape Town Convention on International Interests in Mobile Equipment (International Registry) when you purchase it and when you sell it back? While not a major expense, signing up to the International Registry and filing or consenting to the purchase and sale back will cost at least $1,000.

 

 

Top Issues When Buying Fractional

Topics: fractional, fractional ownership, private jet, fractional share, jet lease, Flexjet, NetJets, JetSuite, phenom 100, embraer phenom 100, Hawker 800, Hawker 800XP, challenger 604

Sweet Flights from JetSuite: Embraer Phenom 100 & CJ3

Posted on Wed, Mar 13,2013


Embraer Phenom 100 Private JetJetSuite, with its headquarters in Irvine, California, provides charter services on its wholly owned or leased aircraft. JetSuite is a 7-year-old company founded in 2006 by Alex Wilcox (who also founded the discount airline JetBlue) and Keith Rabin, and the company was purchased by David Neeleman and Acadian Woods Partners LLC in 2010.  Although founded in 2006, their first flight was not until 2009.

JetSuite’s initial fleet plan was to use the all-new (4 passengers) Phenom 100 aircraft manufactured by Embraer of Brazil. The Phenom 100 is one of the most advanced and efficient aircraft in its class. Due to the popularity of the JetSuite program and the need for larger and longer-range aircraft, they began adding the JetSuite Edition Cessna CJ3 aircraft (6 passengers plus a smaller sideways-facing 7th seat) in 2012. JetSuite’s current fleet consists of 15 Phenom 100s and 5 JetSuite Edition CJ3s, and all are equipped with free WiFi. The Phenom 100s are used mainly west of the Mississippi and the CJs are used mainly east of the Mississippi.

JetSuite offers a hybrid program which is called a membership program; however, you do not need to be a member to take advantage of their flight services. The membership program provides 4 pricing levels with the following deposits: $50,000, $100,000, $200,000 and $400,000. Prices per “planned” flight hour start at $3,200 for the Phenom 100 and $3,950 for the CJ3, and the price decreases as the membership level deposit increases. Those at the $400,000 membership level pay  $2,900 for the Phenom and $3,650 for the CJ3. Non-members pay higher hourly rates than members, and members receive priority rights when booking trips. Each trip scheduled for members and non-members is quoted by their customer service group and locked in even if the flight is longer than anticipated. Additional charges may be added to the flight charges for use of non-preferred FBOs, requested departure time slides, and changes to an itinerary outside of certain time frames.

Along with the membership program, JetSuite offers occasional discount flights to and from specific airports on specific dates - these special offers are called SuiteDeals. These SuiteDeals are priced per trip and can cost as little as $499.

JetSuite uses ARG/US (Aviation Research Group/United States), a world leader in aviation safety research, as their independent, third party evaluator to verify compliance of all flights to ensure passenger safety. JetSuite has received an ARG/US Platinum rating. The Platinum rating is recognized as one of the highest in relation to operational practices and flight safety standards, and it is the highest-level safety audit rating in private aviation. All JetSuite flights are flown with two pilots, and all pilots are captain rated, attend CAE Simuflight annually for simulator training, and average 8,000 flight hours of experience.

JetSuite offers their customers pet-friendly flights, ground transportation (if needed, but at additional cost), and benefits from luxury partner Singapore Airlines. 

 

See how the Phenom 100 compares to other jets!

Topics: charter, charter flights, jet lease, JetSuite, phenom 100, embraer phenom 100, citation jet 3, cj3