Owning a private aircraft provides something few other assets can offer – the ability to travel on your own schedule, access destinations commercial airlines cannot easily serve and operate with a level of privacy and convenience that is unmatched.
However, a private jet is also a significant investment and sometimes new owners become so focused on the acquisition decision they ignore long-term implications that could come back to bite them later.
This blog will consider why owners need to have a strategy for managing their aircraft over the long term, and people who will manage it. Effective aircraft management plays a critical role in maximizing aircraft availability, controlling operating costs and protecting the value of this life altering asset.
The Right Aircraft Is Only the Beginning
Choosing an aircraft is definitely the fun part, especially for first time buyers. It’s the one thing that often puts the finishing cap on personal rewards that acknowledge one’s success and position in business and life. The shopping process should be driven by what the mission requirements will be. A list of needs, wants and travel plans. In addition to the obvious personal comforts, the buyer will consider needs such as how far they plan to fly, how many passengers they are likely to carry, what kinds of destinations they seek.
These are the basic decisions most buyers will recognize, but they may not realize at the time these choices represent only a small part of the overall ownership plan. This is where strategy is required. The new owner needs to be prepared for a long list of requirements once they take possession. Things like:
- Regulatory compliance
- Maintenance planning
- Crew management
- Insurance requirements
- Hangar arrangements
- Scheduling
- Operational support
- Record keeping
- Cost management
Without proper oversight, even the most capable aircraft can become less efficient, more expensive to operate and more difficult to manage.
Aircraft Availability Is the Ultimate Measure
The primary reason people own private aircraft is flexibility. Whether it is attending business meetings, visiting multiple locations in a single day or reaching destinations that are difficult to access through commercial travel, they want an aircraft that’s available when needed.
That availability doesn’t happen by accident.
It takes significant planning and coordination between pilots, maintenance teams, operations specialists and management professionals with a focus on anticipating challenges before they can negatively affect the owner’s schedule.
The goal of aircraft availability is simple, but the process is not.
Operational Expertise – Where Will It Come From?
The aviation environment is constantly evolving with changing regulations, new technologies and increasingly complex operational needs.
Even owners who serve as the primary pilot will need a professional aircraft management team who can provide expertise in an endless variety of areas even if they will not be frequently encountered. For example, changes in regulatory compliance at one destination, or upgrades in the safety management system from the manufacturer can create delays if the team is not up to speed.
Choosing to create an internal flight department or outsource to an external provider that operates under a philosophy of continuous information and knowledge acquisition is the only way to ensure operational consistency without disrupting an owner’s need for flight availability.
The trick is to choose the appropriate path for the aircraft’s intended mission and execute flawlessly.
Defining the Mission
Every aircraft has an optimal operating profile and owners need to match that to their planned use. So, before purchase the owner already needs to have a pretty good idea about where they will travel, frequency of travel, average passenger numbers, payload requirements, seasonal exposure, empty repositioning, crew availability … and so on.
An aircraft that flies too little may not deliver the value expected from the investment. An aircraft that flies excessively needs a management plan for increased wear and operational challenges. Knowing this will help match the right aircraft to the owner’s vision.
There are other considerations as well: For some owners, opportunities may exist to offset operational costs by making their aircraft available for charter use in and around owner utilization. If so, the team needs to estimate the travel impact that will add.
Choosing the Management Structure
Whether an owner chooses an in-house solution or an outsourced model, the team of professionals engaged will have similar knowledge and experience ensuring that the aircraft is safe, compliant, available and properly maintained. Owners who are not sure how to proceed can hire consultants who will help them make the best choices for managing their aircraft. Aircraft manufacturers are also in a position to make recommendations and help potential buyers plan their aircraft management strategy.
About Avionco
Formed in 2000 by Mike Dodd and Josh Dodd in Calgary, Avionco is a premier aircraft services provider, purpose-built to serve aircraft owners whose business and lifestyle needs require impeccable service and efficiency in everything they do.
Josh Dodd, COO, leads day to day operations with a team of dedicated senior management professionals delivering a complete suite of flight management services including Pilot and Crew selection, In-Flight and Ground Operations, Safety and Compliance, and Entry Into Service (EIS). Learn more at www.avionco.com