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Few people have the resources to fly privately. It's an exclusive club, for sure. But for some emerging entrepreneurs and rising-star business executives, the barriers to entry for private jet travel have lowered, significantly. Today, one can rent a jet for a reasonable cost. But why rent? And, how exactly do you rent a jet?
Why Rent A Jet
Essentially, their are three options for accessing private aviation: Rent (charter), Lease, or Own (partial or full). Lets look at the reasons to rent a jet.
Easy
Though not commonly known, the private jet rental market has high supply. There are LOTS of jets for rent, in all sizes, for all needs. Often, someone purchase a private jet for family or company use. But, when it's not flying, the jet is made available for rent, referred to in the industry as charter. Many aircraft fall into this category. Most days, the market is flooded with rental supply.
In addition, the private jet rental market has a high supply of charter companies and brokers. The former manage their own aircraft (or owners' aircraft). The latter shop the charter providers available to match your needs with an aircraft. My favorite providers are listed at the bottom of this article.
Both the charter companies and charter brokers are easy to find. Simply search online or ask someone who you know uses private aviation. They come in all shapes and sizes. The key is to find one you trust… more on that in a minute.
Efficient
With the typical high supply of jets, charter companies, and brokers, the market will respond quickly when you want to rent a jet. Once you secure a jet, you can reach more places on your schedule. And, believe it or not, renting a jet can be cheaper dollar for dollar, in terms of time, when traveling.
For instance, take a c-level team of five with a combined salary of $1,600,000. Send them a few hundred miles away to visit a vendor or close a deal. If they fly, they'll need the whole day… a couple hours drive, a few hours of meting, followed by a couple hours drive home. They'll be whipped. And, at about $600 per hour (their salary broken down to an hourly cost), that trip will run $5,000 to $6,000.
If that same team decides to rent a jet, they'll only need 5 hours time, costing about $3000. And, they'll be rested, which means they'll think better, manage better, and produce results that get you ahead of the competition. In this case, it's clear… rent a jet.
Even with the jet cost factored in, about $4,500 for a Cessna Citation, your team will be in an out of more markets and deals than your competition. I recently read a story where a company was purchased by an investor. Some of the first advice the investor gave the management team was, “go buy a jet.” He believed that for his new company to achieve the performance they were capable of meeting, they'd need to reach out to the market, do more dinners with prospects, shake more hands with suppliers, and still be home to spend time with family. Without a jet, in the investor's opinion, the company remain average. This investor wasn't interested in average. He wanted results… only achievable with the right tools. In this case, a private jet.
Effective
If you rent a jet, it's easier to get from A to B. Sure, you can get from L.A. to N.Y. faster with a jet. But think strategically about this. A to B is not just defined by location. It could be from 5% growth to 25% growth over 5 years. It might mean 15% market share to 40% market share in 10 years. When you rent a jet, getting from A to B takes on an entirely new meaning.
How To Rent Right
If you want to rent a jet the right way, you'll need to do three things.
Plan
Take time to consider where, when, what. Where do you want to go? When do you want to go there? What equipment will you need? Next, get real about what's most important when you rent a jet. Is it speed? Is it safety? How about security? Is schedule critical? (some charter companies make deals available last minute, which can save four figures, if you're schedule is flexible). And, how much traveling will you require? It may make sense to buy block time on the jet (prepaid, for any and all legs, even empty ones), or purchase a jet card (prepaid, often discounted, occupied flight time leg-by-leg). Plan now, and you'll pay less later.
Partner
Armed with a plan, it's time to get into business with the right partner. This means finding a suitable charter company or broker. You can look online (see my recommended providers below) or in popular trade publications such as World Aircraft Sales. then, match your important criteria discussed above with their selection and services. Then, meet them.
Approach this meeting as if you're buying the company.
If you can afford to rent a jet, then you know your gut tells the truth. This meeting serves as the gut check. As with any business, slide decks can make anything sound wonderful. But only face time will provide the proof needed to decide on your private jet partner, the charter company or broker you'll entrust your employees or family to.
Remember to review the paperwork. Rental agreements, safety audit ratings, insurance coverage will all serve to verify your feelings from the one-on-one interactions experienced on the in-person visit discussed above.
Progress
Take the jet on a trip or three. Test out the results. Track your usage so future flights are strategic and cost effective. How do you do this? Simple. Locate and rely on an expert to serve as your fiduciary with the charter company or private jet broker. This person will help you make progress as you rent a jet, consider leasing, or possibly purchase. They'll ensure the entire private jet experience exceeds your expectations, even if it's your fist few flights.
Takeaway
Renting a jet can make sense for first-time and low-use private flyers. It's an easy, efficient, and effective way to add value to your life by saving time, building relationships, and staying charged. And, to rent right… simply plan, partner, and progress. These steps will help you increase value and reduce risk when you rent a jet.
Mentioned In The Show
Find a Jet to Rent: www.charterhub.com
Rent From a Two Top Brands
www.ejmjets.com (Executive Jet Management, A Berkshire Hathaway Co.)
www.pentastaraviation.com (Pentastar Aviation, A Top-Tier Full Service Provider)
www.jetsuite.com (last minute discout deals)
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Question For Comment:
What's the one factor standing between you and renting a jet? Is it market unfamiliarity? Is it unclear value (remember the investor story above)? Is it the confusing process? Or, is something else preventing you from enjoying the benefits of private jet travel?
Leave your comment below, on the listener line at 586-330-0802, or email me at tom (AT) privatejetpodcast (DOT) com.
