What is Private Jet Aircraft Leasing?
May 17, 2022
As an alternative to private jet ownership, private jet leasing provides a travel solution for those requiring frequent and consistent private air travel. At Flexjet in Europe, we call this Access, and offer this programme alongside Shared Ownership of our exclusive private jet fleet.
There is no one-size-fits-all approach to private travel, so you may be considering if leasing (or Access) is right for you and your requirements. Here we examine the concept, and look at the benefits or attractive features of leasing, to determine why aircraft leasing remains a popular mode of private jet access in 2022.
How is Aircraft Leasing Different from Fractional or Shared Jet Ownership?
Fractional ownership (or Shared Ownership as it is known in Europe) is best described as close to the experience of whole jet ownership but without the considerable responsibilities of crewing, maintenance and more. Leasing (or Access) is a different model, which can appeal to those who wish to avoid the upfront costs of owning an asset, including the depreciation risks.
With fractional or Shared Ownership, you invest in a fraction of a plane upfront and then enjoy a fixed number of flying hours per year, along with a monthly management fee, hourly rate for usage and an hourly fuel surcharge. Some people find it helpful to describe it as something close to a jet timeshare or an exclusive jet membership.
Shared Ownership with Flexjet comes with the very highest service levels, giving exceptional luxury experience, elevated service and immediate aircraft availability.
While every provider is different, private jet leasing (or Access) typically requires a relatively lower initial outlay, meaning it falls somewhere between Shared Ownership and a jet card in terms of the upfront commitment. And while it still offers exceptional ease, consistency and service compared to other forms of private jet travel, there are some relative limitations in schedule flexibility, call-out time and aircraft selection with a private jet lease or Access programme, versus Shared Ownership.
Jet leases can also be an attractive option for corporate flight departments as they qualify as a travel expense rather than an asset.
How Does Leasing a Private Jet Work?
Most private jet leasing programmes are typically designed for travellers who fly 50 or more hours per year, providing access to multiple aircraft types and sizes. The lease model can be advantageous because it minimises your exposure to market demands and increases safety, reliability, and availability thresholds while offering a less capital-intensive solution to outright ownership.
Below we outline the cost components and benefits of a typical private jet lease programme.
Cost Components of a Typical Lease or Access Model:
There are four major components surrounding the operation and use of your aircraft via the Flexjet leasing (or Access) programme:
- Operating Funds: A fully refundable deposit upfront based on aircraft and allocation of hours.
- Annual Fixed Flight Services: A fixed amount based on aircraft and annual allocation of flight hours, which covers all the indirect costs of operating an aircraft, from pilot training to insurance.
- Hourly Transportation Fee: You are only charged for each hour an aircraft is in-flight. This rate also includes direct expenses associated with maintenance, standard catering, engine costs, and pilot fees.
- Fuel Component Adjustment: Added to the base hourly rate to account for fluctuations in the cost of fuel, which varies monthly.
Benefits of a Typical Jet Lease
Private jet leasing typically grants you reliable access to consistent aircraft, highly experienced pilots, and most importantly predictable costs.
With Flexjet’s Access (leasing) programme in Europe, you can enjoy guaranteed access to some of the youngest and most-advanced private jets in the industry at short notice, along with exceptional service levels, all-inclusive costs and flexible contract commitments.
While leasing (or Access) offers you many of the benefits, travel experiences and service standards Flexjet has to offer, you should discuss your personal circumstances with one of our experts, who can help you decide which programme will best suit your needs.
To learn more about our Shared Ownership or Access programmes at Flexjet, contact our team using the form below or call us on +44 (0) 203 856 8151.