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PRIVATE JET LEASING PROS AND CONS

February 7, 2021

Should you lease a private jet? Consider this:

 

BENEFITS

 

  • Lower immediate costs compared to fractional ownership
  • Fixed lease payments in lieu of upfront capital outlay
  • Access to multiple bases of operation, including thousands of non-commercial airports
  • Most costs are fixed for the duration of your contract
  • Some providers offer the option to buy or sell flight hours with fellow lease holders
  • No need to hire crew, operations staff
  • No maintenance downtime or need for supplemental lift
  • Extensive service areas that encompass the contiguous United States
  • No depreciation risk regardless of market conditions
  • Some leases offer shorter terms than fractional contracts
  • Leases can be classified as a “travel expense” rather than an “asset”
  • You are not responsible for any of the following expenses:
    • Aircraft storage
    • Legal compliance
    • Repositioning costs
    • Maintenance
    • Pilot Training
    • Insurance

 

CONSIDERATIONS

 

  • A security deposit is needed upfront
  • Minimum contract term required
  • Minimum hourly purchase increments
  • Monthly Management fees
  • Direct and indirect expenses
  • While greater access is available during peak travel periods, the high demand can impact departure times
  • No ability to leverage aircraft value at the end of the term
  • No ability to rent, charter, or decide who uses your aircraft
  • You do not control crew hiring selections
  • You do not select aircraft aesthetics or cabin configuration
  • A fixed monthly lease fee is required

 

For more on Flexjet’s leasing program go to this page. 

 

More on Private Jet Charter versus Leasing:

What Is Private Jet Charter?

Private Jet Charter Pros and Cons

What Is a Private Jet Lease?

Private Jet Charter vs. Lease: Choosing the Best Plan

Benefits of Flexjet Private Jet Leases

 

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