|
CATEGORY
|
DESCRIPTION |
|
Industry
Players
|
Derive
their revenues primarily from the operation or
support of business aircraft |
|
1. Charter
Operators
|
Hold
Part 135 air taxi certificates and charter out
full-service, non-scheduled flights to third
parties. Licensed and inspected by the FAA. Can
charge market prices. Some own or lease their own
aircraft. Increasingly, they charter out aircraft
owned by third parties. |
|
2. Fractional
Program Managers
|
In
existence for over a decade, Fractional Programs
involve multiple Program Participants, each of which
owns a share in an individual aircraft, all of whom
agree to swap time on their respective aircraft with
all the other Program Participants. Program Managers
provide the same sorts of services as Management
Companies, and, by the same theory, have done so
under Part 91. |
|
3. Management
Companies
|
Provide
a host of services requiring aviation expertise
(such as providing flight crews, arranging
maintenance, fueling, hangar, insurance, and
scheduling). Although in existence for many years,
not defined by the FARs. Function primarily under
Part 91 on the basis that the aircraft owner is the
operator and the Management Company merely provides
services. |
|
Other
Operators and Users
|
The
aircraft tends to be secondary to an unrelated
primary business |
|
1. Private Fleet
Operators
|
Typically
large companies that operate more than two aircraft
for their own business travel needs. Usually have
large internal flight departments comprising pilots
and maintenance experts. |
|
2. Small Flight
Departments
|
Operating
one or two aircraft, these companies ordinarily have
small internal flight departments. |
|
3. Management
Customers
|
Typically
operate one (sometimes two) aircraft but have no
internal flight department. They arrange for a
Management Company to serve as their
"external" flight department. |
|
4. Fractional
Program Participants
|
Owners
(or increasingly lessees) of Fractional shares,
typically not previously active in aircraft
operations. Attracted to ownership, turnkey
services, and guaranteed costs. Typically need 100
to 300 flight hours per year and acquire access to
Program’s pool of aircraft for 200 hours per year
for a ¼ share (Programs offer shares as small as
one-sixteenth). Sometimes used to augment existing
fleet. |
|
5. Occasional
Relationship Users
|
Occasionally
use an aircraft owned by an unaffiliated company
with which there is some relationship. Typically do
not wish to become sophisticated aircraft operators.
Rather, desire use on a limited basis, without
commitment, expense, and resources normally
required. But for the relationship, they would
probably not use business aircraft at all, or
perhaps would charter in. |
|
6. Charter
Customers
|
The
purest of occasional users, they make no long-term
commitment to business aviation but simply charter
in when convenient. Most use business aviation
aircraft less than 100 flight hours per year.
Aircraft owners often charter in as well to fill
schedule or mission gaps. |
