PPRuNe Forums - View Single Post - Toying with the idea of biz jet ownership...
Old 30th Apr 2014, 08:16
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FlyMD
 
Join Date: Mar 2003
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Exactly: why pay a management fee to an operator who is just going to turn around and subcontract the flight planning and permissions to a support company?

The operator will of course slap a fee on top of those services, then pocket for himself any bulk discount he gets on fuel or services. Waste of money.

For a privately owned small or medium jet, you are better off hiring an experienced crew and let them buy in the required services. There are excellent specialists for CAMO, planning, overflights, and fuel, and a good group of pilots should be able to shop around for them.

What's more, if you are not bound to a "management" company, it's astonishing how much you can talk down broker fees when you need to buy/sell a plane.

As has been stated on this thread already, jet owners never make money from chartering out their plane, only operators/brokers ever do. Stay private, trust a small and competent team and the price for owning a jet will only be moderatly outrageous. Go with an operator and it's either not going to generate revenue, or it will basically be the broker's plane to play with, you being allowed to pay for it and watch it depreciate rapidly.
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