Find out why a jet card may be your solution to private aviation.

Steven O’Neill, President and CEO of CitationAir, divulges keen insight on jet card membership with Affluent Page Luxury Index. CitationAir, formerly known as CitationShares, now provides an array of private aviation programs: Jet Card, Jet Access, Jet Shares, Jet Management and Corporate Solutions. We have the inside scoop on jet card programs, so you can decide whether or not these private aviation memberships are for you.

Q: Why choose a card membership company over a fractional ownership, a personal private jet or a charter service?

A jet card program is simple, flexible and requires very little capital commitment on behalf of the customer. Fractional programs and owning your own asset both require a longer-term commitment with a larger capital outlay than a jet card program. With charters, you don’t receive the same level of service you would normally get with a jet card program. Also, charter customers oftentimes do not know the operator flying the aircraft or the pilot’s level of expertise, and the age and condition of the aircraft may not be up to industry standards.

Q: Who is the card program aimed at?

The jet card product is perfect for those who want the advantages of private travel but don’t want the risk of owning an asset and/or for someone with less than 50 hours of flying per year.

Q: What are the drawbacks of jet cards?

Hourly rates are generally higher than rates for a fractional share and since you don’t own the asset, there is no benefit from residual values if and when you decide to sell the asset. Also, jet card flyers are flown under Federal Aviation Regulation (FAR) Part 135 which means the customer is subject to an additional Federal Excise Tax. Fractional customers (excluding 25-hour shares) fly Part 91k, which does not require the customer to pay an additional tax.

Q: What should first-time jet card purchasers be aware of?

I would encourage first-time jet card purchasers to do their research on each jet card program in the industry. Not all jet cards are alike. An individual or company’s financial situation will be a factor in determining the best program for them. Also, safety is the number one priority so it’s important to take a look at aircraft age, how often the aircraft is serviced and maintained as well as pilot training and certification standards. Customers who buy from a company with a comprehensive portfolio—with all products “under one roof” so to speak—will find the process of moving along the product continuum smoother once their needs change.

Q: If one can afford to purchase and maintain their own jet, why would they consider jet card membership?

There are many factors as to why some people choose one product over the other. With the recent decline of the economy, some people don’t want the risk associated with owning a whole jet or fractional share. Oftentimes, they don’t want to be locked into a five-year program with a share purchase nor do they want the responsibility of maintaining a whole jet, hiring pilots, etc. They might also choose to buy a jet card, alongside their owned jet, to “supplement” their flying without the additional purchase of an asset, or if they need an aircraft type larger or smaller than the one they own, or if they frequently require simultaneous usage.

CitationAir, 877.692.4828, www.citationair.com

Tags: Private Jets