Commercial load of a business jet
How to obtain the maximum profit from an aircraft's commercial load? What risks await business jet owners when renting an aircraft out to other passengers?
What are the types of commercial loads of private aircraft?
All commercial loads can be divided into two types: guaranteed and non-guaranteed. The first include those loads in which the operator or the management company (MC) guarantees the owner a load not below a certain level. Unguaranteed commercial load is a load for which the operator receives a certain percentage, however, is not responsible for the fulfilment of the plan for that load. If you compare these two types, then, obviously, the first one is more profitable. Here, a guarantee of load is a guarantee of a positive cash flow towards the owner.
How often and for what purpose do business jet owners use a commercial load?
Private aircraft owners resort to this method in 70–80% of cases. The fact is that most of them operate their aircraft in an insufficiently intensive manner. Owners use a commercial load in order to optimise their expenses for their business jet and to spend less money. The ultimate goal of the process is to reduce costs for the aircraft. A commercial load allows you to win significant funds in the overall annual budget of business jet upkeep.
In what cases is a commercial load the most effective?
The best results are yielded from that type of commercial load, in which it is dealt with by the MC cooperating with the owner on a guaranteed basis. The reduction in costs directly depends on the level of aircraft operation and on the degree of competence of the company.
How can a commercial load be best combined with the owner's personal flights?
It is possible to plan a commercial load efficiently if the owner is well aware of their plans in advance — 1–2 weeks before the proposed flight. If a business jet owner does not have this information and prefers to deal spontaneously, then there is another mode of work. In this case, each commercial flight is coordinated with the owner just before the client confirms their consent to the order.
What risks can await the owner when carrying out a commercial load?
In this area, there are quite a few pitfalls, however, a competently selected MC can successfully handle most of them. It is the management company who guarantees that the money for the completed flights will be received by the owner. The MC also ensures that passengers do not damage the cabin of the aircraft. The MC is responsible for ensuring that the business jet arrives at its base in a timely manner. However, the main risks in this case are technical breakdowns. If something unexpectedly fails during a flight, the aircraft repair costs, as a rule, fall on the shoulders of its owner.
What should be done in order to put an aircraft up for a commercial load?
First of all, it is necessary to conclude an appropriate agreement with the MC or marketing agent and authorise them to put the aircraft up for commercial use. Next, it is worthwhile to inform the company in a timely manner about the owner's plans, if there are any. That's about it.