Long-term charter of a crewed private jet – pros and cons

Renting a private jet with a crew for an extended period is a common offering from many providers in Europe and the USA.

Alexander, who is long-term aircraft leasing suitable for?          

Long-term leasing offers a combination of benefits and, most importantly, convenience when renting a business jet. This type of lease is suitable for both individuals and legal entities that fly at least 40-50 hours per month. Essentially, you become the owner of a specific aircraft without the additional costs associated with ownership, such as depreciation, maintenance, repairs, crew training, software updates, and many others.

It is also a good idea to lease an aircraft among several people and share the hours (Private Jet Share). For example, three individuals lease a Challenger 605 for the long term (60 hours per month) and divide those hours among themselves. This way, each participant achieves significant savings on aircraft rental. Each participant can use the aircraft for as many hours as they need, provided they coordinate with the other two participants. Clients manage the division of hours among themselves.

Ninety percent of all business jets in Russia are based in Moscow, so if a client lives in another city (Chelyabinsk, Ufa, St. Petersburg, Sochi), it makes sense to base the aircraft in the client's city to avoid empty repositioning flights for each trip. In the end, we provide the type of aircraft necessary for the client, with all the advantages of owning a private jet.

What is included in the cost of aircraft leasing?

The client pays for a minimum guaranteed number of hours per month, which typically ranges from 30 to 50 hours and depends on the type of aircraft and partially on the season. For light aircraft like the Cessna CJ1, this is 30 hours; for medium-sized aircraft like the Hawker 750/850, it is 40-50 hours; and for heavier models such as the Challenger 605 or Legacy 600, it is a minimum of 60-80 hours per month.

The guaranteed minimum number of hours is a specified number of hours (e.g., 40 hours) that the actual owner of the aircraft is guaranteed to receive, even if the client only flies for 5 hours in a month. Thus, the aircraft operator receives the number of hours for which they are willing to lease the aircraft for long-term use by the client.

The client pays for the minimum number of hours per month but can fly as much as needed. Each additional hour after the guaranteed hours (let's say 40 hours) incurs an extra charge at a rate agreed upon in advance and specified in the contract. Typically, each additional hour after the guaranteed hours will cost a bit less than an hour from the “guaranteed flight time.”

Alexander, can you provide an example of calculating long-term leasing for an aircraft, say a Hawker 850XP?

Certainly. Let’s consider a typical situation. The client requested our company to find the most cost-effective aircraft for transporting 4-8 passengers based in Chelyabinsk, as the client resides there. The client indicated that 70% of the flights would be within Russia (Moscow, Sochi, Irkutsk, St. Petersburg) and 30% abroad (France, Italy, UAE, etc.).

Our company selected a Hawker 850XP (2006 model, 8 seats) with Russian registration to comply with transportation regulations within Russia, and it comes with a crew (2 main pilots, 1 additional pilot, and 2 flight attendants). After negotiations with the airline, we managed to agree on a minimum of 40 hours per month (40 hours * 4000 euros = 160,000 euros per month) at a rate of 4000 euros per hour, which is the minimum guaranteed flight time per month. The cost per flight hour includes aircraft rent with crew, fuel, airport fees, and all other expenses. Additional charges only apply for using the VIP terminal and VIP catering for each passenger, de-icing the aircraft, and any parking fees at airports outside the base airport.

In total, the rental of a Hawker 850XP for 40 hours per month amounts to 160,000 euros + additional variable expenses (based on experience, additional costs will be around 14,000-30,000 euros per month). Thus, the total comes to 160,000 euros + 14,000 euros = 174,000 euros for 40 hours per month, which is an all-inclusive price.

However, I want to stress that these figures are provided as an example and can vary based on aircraft type, flight routes, base airport, and number of passengers. What is included or excluded in the flight hour cost is always discussed at the aircraft selection stage and then specified in the contract. All third-party invoices at the end of the month are submitted along with a complete report of the flights and hour usage.

Alexander, what factors influence the cost of long-term aircraft leasing?

The type of aircraft most significantly impacts the price. The larger, more comfortable, and higher-class the aircraft, the more expensive its initial purchase cost and rental price will be. The number of guaranteed hours also affects the rental cost. The more hours you buy, the cheaper they become. Additionally, the base airport affects the rental cost. All major popular airports in Russia (Moscow, St. Petersburg, Sochi, and others) will be more expensive and have a greater impact on rental prices than cities like Ufa, Nizhny Novgorod, Mineralnye Vody, Yekaterinburg, and others.

Still, let’s outline the pros and cons of long-term aircraft leasing.

It's quite simple. The advantages of long-term aircraft leasing with a crew include:

• You lease the type of aircraft you need.
• A dedicated crew that understands all your requirements and adapts to you.
• Guarantee of aircraft availability at any moment.
• Preparedness for takeoff within a maximum of 2-3 hours.
• A dedicated manager who responds to all requests instantly, 24/7.
• No restrictions on flight geography or monthly flight hours.
• Fixed payment for flight hours.

Essentially, you become the owner of a private jet for a specified period with all the benefits of ownership, without the costs of repairs, maintenance, crew training, operator fees, etc.

There are no downsides faced by aircraft owners, such as repairs, maintenance, aircraft registration, insurance for the aircraft and crew, taxes, etc. The main downside is that if you do not use the hours, they “expire” (the minimum guaranteed flight time must be paid for, even if you don’t use your hours). No other downsides exist.

In conclusion, Alexander, let’s summarize everything mentioned above.

Long-term aircraft leasing provides all the advantages of owning a private jet without the need to purchase one. You always know that your aircraft with a professional crew is waiting for you at the airport, ready to embark on any route. A dedicated manager from JETVIP LLC is available 24/7 to track, verify, and provide a complete report of all expenses and aircraft movements.

We have accumulated extensive experience in long-term leasing of various types of aircraft for any task. We are ready to offer different aircraft leasing options. We will consult and explain all the nuances of this service. We will identify the client's exact needs and propose optimal solutions tailored to your requirements. How much and how to fly is solely your choice, and our task is to make you the best offer on the market for business aviation aircraft rental.

We could write many beautiful words in support of our work, but the most objective testimonials from our long-term clients who rent aircraft speak for us. Even better, leave a request for a quote, and we will send you an individual proposal tailored to your needs. Our sales department operates 24/7 (no days off).

LONG-TERM AIRCRAFT LEASING WITH JETVIP – THE RIGHT CHOICE!