Why Now is the Time to Charter a Jet
In a recent article by Business Jet Traveler, “Why Charter Rates Won’t Drop”, the author discusses the reasons why the cost of chartering a jet will likely hold steady. From the recession to the financial crisis on Wall Street, many would believe that private jet charter rates might continue to drop if demand is still behind the supply of jets available in the market. The article provides the reader a better understanding of why this is not the case and why the current market rates are as good a deal as the market may be able to offer.
Many jets that are operated by charter providers are owned by individuals or companies that rent out their aircraft through the charter company. These owners determine the charter rates usually on a trip by trip basis. There are many reasons behind an owner’s decision to avoid lowering the charter rates of their private jet. For one, the cost of maintaining and owning a jet is extremely high and settling a low charter rate can sometimes mean they do not cover the operating costs – before the cost of owning the jet. It makes no sense to lose money and add more wear and tear to their jet with that extra flight.
The article interviews many charter company's executives and found that another factor in keeping charter rates steady is just a matter of principle. Many aircraft owners feel that no one should be flying for deeply discounted rates. In addition, many customers opt to fly privately because it saves them time and offers a high level of convenience — if they are spending all their time shopping for the absolute market-bottom price, then these benefits are actually lost.. Sentient Jet CEO Marty Guinoo says, "If charter customers want to go out and find what they think is absolutely the lowest price, going down that path becomes a very cumbersome process, which takes away a lot of convenience of flying privately".
With these factors in mind, charter rates are still lower than the past year but only expect to keep steady or increase. As the economy improves, the demand for private flights will increase. That being said, rates in the market today are lower than in recent high-demand years, and customers should feel highly confident that the rates they are finding are a strong value.
For those who have thought about flying privately, now is the time to experience the convenience and luxury private aviation brings to your travel needs. To find out more information on everything related to private jets, business jets, and charter flights, visit Privatejets.com today.