It’s the middle of November and holiday decorations are already popping up. Private jet providers, like many businesses, are pushing to get deals done by the end of the year. Salespeople have their eyes on quotas and bonuses. As a result, they may urge you to, “Buy now to take advantage of the end of the year incentives,” while email offers encourage potential customers to “Beat the 2018 Price Increases.”
No one wants to miss out on a good deal, especially one for a big-ticket item like a fractional jet share or a jet card. Indeed, some incentives from private jet companies may expire at the end of 2017, but new, and in some cases better, deals most certainly will be available in January. Some prices no doubt will go up in the new year, but it’s important to remember that with a fractional jet share purchase, charges such as management fees and hourly rates for flying will increase in January even if you buy now.
End of year advertisements that dangle the prospect of holiday trips via a private jet, rather than say the cramped middle seat of a commercial airliner, are enticing, but it is critical to remember that the holidays will include “peak travel days” when you may not be guaranteed access to your private jet.
All that said don’t necessarily hold off on making a deal; instead do your homework and don’t rush into a big purchase. The cost of doing the wrong deal will far outweigh any year-end benefits and incentives.
Here are some suggestions to keep in mind as you consider any private air travel investment:
Know Your Travel Profile
Make sure that you assess your needs carefully and thoroughly. How many flight hours do you need? Where do you intend to fly? What’s your budget, for both the initial purchase and on an ongoing basis? Do you have any special needs, such as luggage requirements or the ability to fly two flights simultaneously, if say, you’re bringing family in from various locations?
Identify the Best Type of Program for You
Is a fractional share your best bet? Or is a fractional jet card more appropriate? Would you be better off with a block charter jet card? Or would traditional charter best serve your needs?
Once you determine the right type of program, shop around to find the provider that best suits your needs and budget.
Know the Full Cost
Use a sharp pencil and estimate the total cost of this investment. Include fuel surcharges, expense increases and, in the case of fractionals, conservatively determine the resale value of the share.
Read the Fine Print
The contracts, and not that beautiful brochure, will govern your rights and obligations. These documents may look simple, but read carefully and make sure you understand them. And, remember that, despite what the salesperson is telling you, certain aspects of these contracts are negotiable.
We traditionally close many deals at the end of the year. In doing so, we counsel our clients that there’s always time to be thorough. The same is true for you.