The ways that wealthy individuals, families and business owners use private aviation assets continue to be important topics for readers of this news service. We carry views from two experts about the considerations that apply.

The following article delves into the details of private aviation, an important topic for HNW and UHNW individuals, families and business owners. 

The authors are Steve Czocher (pictured below) and Randy Brandoff (pictured below) of Gresham Partners and Aviation Portfolio, respectively. (More about the writers below this article.)

The editors are pleased to share this content and we hope the article stimulates conversations and comments. To provide feedback, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com The usual editorial disclaimers apply. 

Steve Czocher

Randy Brandoff

For affluent families, private aviation often represents the pinnacle of success, the quintessential symbol of “making it.”  

Of course, every person has their own reasons for flying private. Some want increased comfort and convenience. Others prioritize schedule flexibility. Virtually every client is looking to save time by traveling direct between destinations and avoiding the seemingly constant delays and frustrations of commercial travel.  

Once you’ve decided on private aviation for at least some of your travel, it can be overwhelming to determine how best to do it. While most people rightly view commercial aviation (outside of international first-class) as a commodity, flying private is anything but. 

Private aviation is a complex and deliberately opaque market: from the aircraft (type, size, age, and condition) to the crew (certification, overall and type of experience and training) to maintenance standards, insurance, agreement terms (blackout dates, change and cancellation fees, additional charges, etc.) and more. 

Clients need a strategy to ensure that their annual private aviation expenditures align with their needs, priorities, and budget. That’s where partnership pays off. By pairing financial acumen with deep, unbiased knowledge of private aviation, Gresham Partners’ clients who work with Aviation Portfolio can rest assured that every itinerary is optimized for success.
 
Within the private aviation market, there are four primary categories: 

-- On-demand charter: Clients book an itinerary, either directly or via a broker (more on brokers below), with flights performed by a local or floating fleet operator. You pay in advance and spend extra for things like catering, de-icing, and recovery aircraft (as necessary); 

-- Jet-card programs (fractional or charter-based): Typically bought in specific dollar denominations or pre-purchased blocks of 25 hours or more. Card “membership” generally provides clients with access to standardized pricing, an owner-services team, and various program benefits; 

-- Fractional ownership: Purchased or leased in increments of 50 annual flight hours and above, fractional programs provide guaranteed access to scaled fleets of newer aircraft, experienced crew, 24/7 dedicated owner services support, the flexibility to access multiple aircraft types to align with the itinerary, and guaranteed aircraft recovery. Relative to charter solutions, there is a higher consistency of experience (aircraft and crew), greater ease of booking, and greater flexibility to make changes or cancel without issue; and 

-- Full ownership: Clients have full ownership of their aircraft and control of their schedule. They can self-manage or work with a management company and are responsible for both fixed costs (e.g. crew, hangar, insurance, and maintenance) and variable expenses (e.g. fuel, international, and landing fees).

We work with many clients who have seemingly indistinguishable travel schedules. They live in the same city, have second homes in the same area in Florida, and travel roughly an equal number of times per year, often during the same weeks. But if one client is highly focused on safety, consistency, and newness, and the other prioritizes minimal commitment and price, each will require a unique solution. The first may acquire a five-year fractional program while the second may be better suited to a jet card supplemented by charter, or exclusively charter. 

Here are five questions we ask our clients to begin to develop their private aviation strategy:

1. What’s your comfort level? Are you a nervous flyer? When clients explore private aviation, they often envision sleek, modern aircraft complete with every conceivable amenity. In fact, in the charter market, private aviation can be a mixed bag, with varying options around crew, aircraft size, layout, interior, baggage capacity, and more. The average US charter aircraft is 25 years old, and there are approximately 1,850 operators and 16,000 brokers, with no barrier to entry. Knowing all the details, such as who you’re working with, what you’re agreeing to, and specifics around aircraft and crew, is essential to ensuring a successful outcome. Also, charter is pre-paid, and requires clients to share their personal details, which can create financial, physical, and cybersecurity risks. If you’re the nervous type who requires newer aircraft, maximum safety standards and consistency of experience, you may favor certain program solutions or ownership, or, at minimum, you will need help ensuring that your charter solution meets your requirements and keeps you and your information safe.

2. Are you flexible? You may believe that flying privately means you can leave at a moment’s notice, 365 days a year. In fact, there are varying likelihoods of success depending on both the day (e.g. do you typically fly on Thurs/Fri/Sun, Tues/Wed, or it varies?) and time of day you’re departing (are you typically morning, mid-day, or evenings?) and whether you’ve chosen the right solution for your schedule. The busiest commercial travel days, such as around the major holidays and school vacations, are also the busiest private travel days. Some types of solutions will allow you to travel any day you want. Others, like some jet cards, can have up to 90 restricted or no access days per year. 

3. Are you the “easy” client you envision? What are your destinations/addresses, and what are the best airports to access them? Do they have short runways, difficult approaches, treacherous weather, or extremely high volume? Are you frequently flying internationally? Do you often run late? How do you handle inevitable curveballs like weather, mechanicals, sick pilots, and other delays? What’s your operators’ experience and track record with the same? Before arriving at a solution, you need to weigh how you react to both routine and unpredictable situations.

4. How many hours per year do you realistically intend to fly privately, and is it consistent across multiple years? Will you fly fewer than 25 to 50 total hours per year? Or, conversely, will you fly 200 to 300 hours or more? Fractional and whole aircraft ownership require a multi-year (typically five years for fractional) commitment. If you have a lot of variability in your life or business schedule, then you’ll want to focus on solutions with the shortest commitment. 

5. Business or pleasure? Are you flying exclusively for business or personal travel, or a combination (and, if so, what percentage is for business)? You can more easily charge or expense certain solutions to your business. Additionally, the One Big Beautiful Bill Act (OBBBA) made it even more attractive for fractional or whole aircraft ownership, with buyers potentially taking 100 per cent accelerated depreciation of the asset in year one rather than over a five-year schedule. 

Like homebuying, deciding whether to purchase a plane, either in whole or part, or to go with a jet-card or charter, is highly complex, involving many economic and experiential considerations. Clients who work with experienced, unbiased financial and private aviation professionals to guide their decision-making and flight activity are in a much better position to sit back, relax, and enjoy the ride.

About the authors
Steve Czocher is partner, director of Family Office Services & Advisor at Gresham Partners, LLC, a nationally-recognized, independent investment and wealth management firm that serves a select group of ultra-high net worth families and family offices.

Randy Brandoff is the chief client officer of Aviation Portfolio. Aviation Portfolio is a one-of-a-kind professional services firm, and the largest strategic advisory firm in private aviation. We impact every aspect of your private aviation experience and deliver strategic, unbiased, personalized guidance – saving time, delivering peace of mind, and improving economics.