The National Business Aviation Association estimates that business aviation boosts the US economy by more than $150 billion a year.
Over a million people’s livelihoods are also impacted by it because of their direct or indirect involvement in the industry.
A large number of these people are employed in the aircraft management industry. To learn more about this important service and the reasons why business aviation depends on it, continue reading.
Understanding Aircraft Management Companies
Often called a “private jet management company,” an aircraft management company is a specialized service provider in charge of providing full oversight and operation for corporate and private aircraft.
These businesses provide a variety of services that are customized to meet the particular requirements of owners of aircraft.
These services can range from maintenance and flight operations to financial management and administrative work.
Business Aviation Types
The official meaning of “business aviation” is any use of an aircraft for non essential purposes. This suggests that all flights are included, except for those operated by scheduled airlines or the armed forces.
The majority of businesses in the business aviation sector are small to mid-sized enterprises that use a variety of aircraft. These consist of single-pilot aircraft, helicopters, and turbine aircraft.
Numerous business aviation firms function in isolated regions lacking commercial airports. Because of their small size, they are also an essential resource in emergencies.
Rescue, fire, and medical evacuation operations can benefit from the use of small aircraft. Especially in remote locations and areas with limited infrastructure.
This is just one way that business aviation is kept safe and effective through the use of outsourced aircraft management.
Few entrepreneurs or owners of private aircraft possess the financial means to hire a group of in-house specialists to manage, preserve, and make the most of their aviation assets.
Why Aircraft Management Services Are Beneficial
Both aircraft owners and the business aviation sector can benefit greatly from comprehensive aircraft management services.
Most aircraft owners would never be able to continue operating their business aviation operations profitably without these services.
1. Quick access
Aircraft ownership demands a great deal of commitment from the owner. They might deal with problems with low charter bookings, staffing, cost controls, and service delivery.
It is advisable to entrust all these intricacies to seasoned aircraft managers. These professionals assist in averting these problems and are equipped to respond quickly in the event that they do arise.
When they employ these management services, owners of aircraft don’t have to worry about the small print of aircraft ownership. Rather, they can relax knowing that their investment is yielding the greatest possible return.
2. Value for Money
The cost of hiring a specialist to perform all of the mentioned maintenance checks is enormous, as one can imagine. To handle these responsibilities, management firms employ full-time staff, who then divide the expenses among their clientele.
Therefore, owners of aircraft receive the same level of professional service for a much lower cost.
Aircraft management services can negotiate preferential rates on a variety of services because of their continuous relationships with trade partners.
These include competitive prices for insurance, fuel, and aircraft parts. Over time, these little savings can total tens of thousands of dollars.
3. Transportation Services
Bookings for charter flights involve many different factors. These consist of drawing in clients, haggling over costs, and getting paid.
Passengers on charter flights frequently need additional services, such as onboard refreshments or other luxuries. A skilled aircraft management service will handle all of these situations with ease.
They are capable of overseeing passenger concierge services and planning every aspect from arrival to departure to guarantee client satisfaction and return business.
The benefits of charter jet travel are evangelized by contented clients. As a result, airline owners become more profitable, which eventually drives down passenger costs.
Selection Criteria for Aircraft Management Companies
Selecting an appropriate aircraft management company is a brutal and often detailed process that is intimately related to the advantages previously mentioned.
1. Operational Needs
The ideal management company for an aircraft owner’s needs is determined by a number of operational factors. These primarily depend on whether the owner charters out the aircraft or uses it exclusively for business purposes.
One crucial factor to consider is location. If an owner keeps their aircraft somewhere other than their home base, they may occasionally see an increase in flight revenue, particularly if they don’t use it themselves.
This will make the aircraft less available for private use and increase the cost of returning it when needed. Thus, it’s crucial to consider this when picking a location.
The choice of management service is also influenced by the model of the aircraft. When it comes to maintaining more sophisticated aircraft, some are more skilled and qualified than others.
Speaking with an aviation advisor can frequently help to speed up this procedure.
2. Trustworthiness
In the United States, there are thousands of companies that manage aircraft. It is simpler for an owner to determine which operational needs are best once they have been identified.
Finding the best ones is largely dependent on word of mouth recommendations, customer reviews, and websites.
Additionally, owners ought to confirm that the management company is skilled in managing their particular model of aircraft and has years of experience in the field.
Another undoubtedly advantage is the availability of replacement aircraft to assist clients in the event of issues.
A sizable client and aircraft portfolio frequently denotes sound financial standing as well.
An on site assessment can provide valuable insights into a company’s efficiency and disclose a lot about how it runs. It’s also a good chance to address any queries the owner may have.
3. Capabilities of the Flight Crew and Maintenance
An owner needs to know how the manager manages hiring flight attendants, screening candidates, and providing continuing training.
The number of employees can differ significantly based on the operator’s size and workload. A lack of employees can negatively impact the owner’s charter business by causing delays in aircraft maintenance.
It is always better to have a committed flight crew on hand rather than using different employees for each flight.
The manager needs to have the resources both manpower and facilities to properly service and maintain aircraft on location.
They need to be aware of every necessary check and demonstrate a readiness to give a timetable for when these will happen.
4. Accounting Statements
A system for financial reporting must be in place at an aircraft management company.
They should give owners clear documentation of all costs and revenues associated with each aircraft under their supervision, along with frequent updates.
Owners should be able to challenge any part of the financial records and conduct an audit when necessary.
Conclusion
Overall, aircraft management companies play an important role in the world of private and corporate aviation.
They give owners a full range of services so they can take advantage of the advantages of owning an aircraft without having to deal with the hassles and obligations that go along with it.
