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Jet Linx Part 135 Private Jet Management Offers Less Hassle, More Revenue

Jul 29, 2021 | Private Jet Travel, News/Events

As vaccines roll out to combat the spread of COVID-19 and travel continues to see a rebound, the safety and flexibility of private aviation over commercial airline options has led to an unprecedented spike in demand – one unlike any other seen in industry history.

 

Consumer demand for private jets remains so high that some Part 135 operators have ceased sales of Jet Cards and other membership programs. There simply aren’t enough private jet hours to meet the demand placed on the industry as a result of the pandemic, which means now is the time for aircraft owners to place their aircraft in a professionally-managed Part 135 fleets.

“The pandemic certainly spurred new customers to try private aviation for the first time, and after you’ve experienced the convenience, comfort and safety that private aviation offers, it’s very difficult to return to commercial travel. This new audience has translated to nearly a 90% increase in first time fliers, but this isn’t the only reason for extremely low inventory,” said Ron Silverman, Chief Commercial Officer at Jet Linx Aviation.

Silverman pointed out that tax incentives continue to spur a major buy-up of private aircraft, but it is unclear how long these tax incentives will remain. Inventory levels for both new and used private jets continue to be slashed, sometimes leading to buyer’s remorse – particularly among those without adequate support to manage these assets.

“These advantageous first-time buyers may have enjoyed the initial use of their private jets, but some are now seeing the bills and second-guessing the purchase. We want them to know that professional management with Jet Linx can reduce their overall costs of ownership by generating more revenue from our Jet Card program and reducing some ownership costs through our economies of scale,” Silverman added.

 

Unprecedented Demand with No Crest in Sight

 

Comparing flight data year over year from January 2020 to July 2021, Jet Linx flight hours have increased by a monthly average of 140%. In April 2021 alone, flight hours increased by 643%, followed by an increase of 206% in May 2021. Across the months of June 2021 and July 2021 alone, Jet Linx experienced 100+ legs per day more than 60% of the time. In the same period during 2020, Jet Linx documented only 2 days with more than 100 legs served.

These numbers reflect major increases from pandemic-driven slumps. Instead of returning to commercial airlines, many passengers have elected to continue utilizing private aviation services. The data from WingX below shows that there were 302,288 business jet and turboprop sectors flown worldwide in the first 20 days of July 2021, 13% more activity than before the pandemic in 2019. The commercial airline industry activity still trails July 2019 by 33%, and a year-to-date trend of -44% compared to Jan-July 2019.

 

Figure 1 Global Business Aviation 7-day trend since January 2019, courtesy WingX Advance

 

While the pandemic brought on many new users of private aviation, it’s also keeping them in the market. Shifts in consumer attitude towards flying privately now hint that a new era of private aviation is taking shape in a post-pandemic world, one where business and leisure travel have melded, resulting in a new class of customer – the personal traveler.

“People are no longer flying privately once or twice per year; they’re flying private all the time,” Silverman said. “People no longer want to put their mothers or their college students on commercial flights with all of the health and safety issues, so industry flight numbers are way up, and we have yet to see how the uptick in fall business travel will exacerbate current bandwidth issues across the industry. Major corporations like Morgan Stanley and Pepsi are extending private flight allowances, so there could be another significant increase in demand this fall as more and more executives ditch commercial airlines.”

Light Jets such as the Phenom 300 and Midsize and Super-Midsize Jets such as the Challenger 300 and Citation XLS represent the greatest demand by category. Heavy Jet activity has also increased, but it must be kept in mind that much of the current private jet traffic still stems from leisure travel, which is primarily flown on smaller aircraft. When business travel returns in the fall it will do so with gusto, pushing demand to new all-time highs.

With industry-wide utilization rates per in-fleet aircraft climbing toward 50 hours per month, the demand for private aircraft cannot be understated – there is no historical precedent. Part of the challenge lies in managing the private jets available in such a way as to maximize utilization. For Part 91 jet owners, this opens the door to the revenue-generating and cost-saving opportunities of Part 135 operations they may have not yet considered under otherwise normal market conditions. The Jet Linx managed fleet offers many competitive advantages, including built-in demand through our Jet Card program, and simplifies the complex world of ownership with industry-unique products like Joint Ownership and our Complete Aircraft Transaction (CAT) Program.

“Part 91 aircraft owners and Part 135 aircraft owners can benefit from Jet Linx management,” said Alec LeFort, Regional Base President and Senior Vice President of Sales at Jet Linx. “Rather than burdening a pilot with the management of an aircraft, our team of experts take over the day-to-day management. This kind of third-party oversight allows for greater safety and opens up possibilities to offset costs of ownership with revenue flights from the built-in demand of our Jet Card users. Even offering an otherwise under-utilized aircraft for only a few hours of revenue-generating flights can make an impact in an owner’s bottom line.”

 

 

 

The Advantages of Jet Linx Aircraft Management

 

Offset Your Cost of Ownership with Fleet Discounts and Built-in Revenue

 

There are more than 750 aircraft management companies in the United States, varying by size, geographic location, operational capacity and level of safety and service. Finding a partner to manage your private jet means matching your needs to an operator’s capabilities.

Managing an aircraft requires a dedicated team of professionals that know how to manage time and allocate resources effectively. Jet Linx provides the tools and expertise that make private jet ownership hassle-free and financially sound.

“If you’re a Part 91 aircraft owner only flying 100 hours per year, it makes sense to allow Jet Linx to manage that aircraft on a Part 135 basis, generating more revenue to defer your costs of ownership. We know there are many variables involved, but if the goal is to make managing a private jet less costly and more hassle-free, then Jet Linx aircraft management is a great solution – especially given the current surge in demand for hours,” Silverman explained.

The Jet Linx aircraft management platform offers built-in revenue generation paired with full-service management. Instead of relying on the wholesale charter market to provide revenue, our Jet Card members provide built-in demand. We also set the hourly revenue paid to our owners, as well as the fuel cost per gallon on all revenue flights which eliminates the variable costs of charter for an aircraft owner.

The Jet Linx Fleet Optimization team also works to fill deadhead or transient flights in the Jet Linx fleet through our established connections in the national charter market. Our ARGUS Platinum, IS-BAO Stage 3, and Wyvern Wingman safety ratings make our fleet the most sought-after in the national charter marketplace.

Jet Linx also operates the third-largest managed Part 135 fleet in the nation (including 37 aircraft types), allowing Jet Linx aircraft management clients the ability to save up to 15% on fuel, maintenance, pilot training, hangar costs and insurance.

“With the leverage provided by our national fleet of aircraft, we secure better fuel pricing through partnerships with 14 different fuel contract organizations, allowing the purchase of millions of gallons of fuel at the greatest discount possible. Our buying power and economies of scale offer a unique benefit to our aircraft management clients by stretching their dollars further while also reducing costs of ownership. These kinds of discounts wouldn’t be available to a Part 91 operator or individual Part 91 aircraft owner,” LeFort said.

Other fixed costs such as insurance, parts, and inspections can be reduced by leveraging our fleet size and long-established industry connections. These cost savings are passed directly to aircraft management clients, which is all part of the Jet Linx commitment to a superior ownership experience that allows our clients to save thousands of dollars annually.

Jet Linx blends the personal service of a local operator with the capability and infrastructure of a national platform to offer the best of both worlds in customer service and operational capability. All Jet Linx team members have been trained and evaluated to meet the Forbes Travel Guide standard of luxury and excellence, offering our clients an experience that is beyond compare in our industry.

While Jet Linx offers 20 local private terminals staffed by our Forbes Travel Guide Five-Star trained teams for comprehensive trip planning services and on-site maintenance, our National Operations Center (NOC) supercharges our local teams to offer a larger network of support. The NOC houses our award-winning and industry-leading Safety Department, and also serves our clients through teams such as Flight Coordination, Fleet Optimization, Flight Operations, Maintenance, Accounting and Finance, Human Resources, Information Technology and more.

“The Jet Linx Aircraft Management program puts everyone in the proper seat. The pilots can focus on flying safely, our Fleet Optimization team ensures proper revenue generation, maintenance works to maintain airworthiness and so on. Our model lets the experts do what they do best, all working in sync to offset the cost of ownership and provide the smoothest ownership experience in the industry,” Silverman said.

Oversight extends into the hands of the aircraft owner with the Owner Portal, which offers real-time transparency into the performance of the aircraft. At any point in time, aircraft owners can check on the status of their aircraft via an online portal – revealing where their aircraft is, how it’s performing, and what parties might be using it.

“The Owner Portal provides real-time transparency into the day-to-day performance of a given aircraft, no matter which Base location the aircraft owner calls home. The online portal offers full visibility into the charter revenue, aircraft schedule, expenses, line items, bills – all in real-time,” LeFort added, “That transparency for aircraft owners reduces worry and increases confidence, but also speaks to the value that we seek to provide them with. Few other operators have the bandwidth to provide this kind of access.”

 

Flexible, Industry-Unique Aircraft Programs

 

For those seeking to acquire an aircraft and place under Part 135 management, Jet Linx offers the CAT program – a complete ownership lifecycle solution from purchase to sale. The sales expertise of our industry-best aircraft brokers and management experience of our inside sales team afford unique perspectives on the nuances of owning a private jet, especially in times of rapid market change. This end-to-end solution provides aircraft owners with revenue from our built-in Jet Card program while under management with Jet Linx, the highest safety ratings in the industry, state-of-the-art reporting and more – making aircraft ownership less worrisome and more financially beneficial.

“With the recent surge in demand it’s become increasingly difficult to find and acquire aircraft, but with Jet Linx as a partner and adviser we can help to bring aircraft onto our certificate faster. We accelerate this process through our extensive network of brokers and industry leaders, allowing our clients the benefit of our expertise even before we’re managing their asset through the CAT program,” LeFort explained.

As part of the CAT program, following acquisition, Jet Linx places the aircraft under management and oversees personnel, pilot training, maintenance, fuel, hangar operations, FAA compliance, and insurance. When our clients opt to sell to upgrade their aircraft or move to our Jet Card, we package aircraft management records, develop a marketing campaign for sale, facilitate showings and more. The CAT program allows Jet Linx experts to oversee the entire process, benefitting our clients with the most comprehensive aircraft management service in the industry.

The Joint Ownership Program allows 100% whole aircraft ownership at 50% of the cost, therefore offering potential aircraft owners the lowest net cost option for private jet ownership. This half ownership solution benefits new buyers looking to enter private jet ownership (but not ready for whole aircraft ownership yet) and existing aircraft owners looking for a way to defray half of their ownership expenses without the hassles of Do-It-Yourself (DIY) partnership agreements and management of the other party. With 20+ years of experience and 100+ private jets under management, we know how to remove complexities and manage the moving parts. Those unsatisfied with charter jet aircraft, fractional ownership programs, whole ownership, or DIY arrangements stand to benefit from the Joint Ownership program. Whether you want to buy half of a private jet, or sell half of your private jet, this program lowers the barrier to aircraft ownership considerably.

If you’re currently operating under Part 91 but would like to join a reputable Part 135 organization to better manage your asset, please contact Jet Linx. We offer customizable, comprehensive aircraft management solutions to match your individual needs.

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