ABCs of Chartering - How the Charter Industry Works
What is "On Demand Charter"?
On demand charter simply means the traveler is hiring the operator to provide air service from one point to another "on demand" - that is, when service is needed by the traveler, as opposed to "as scheduled" by the airlines. Unlike fractional programs, there are no long-term financial commitments required. The traveler simply pays for the total costs to charter the airplane for the single trip. The traveler usually contacts a charter operator in their city of origin and requests a quote for the needed travel. The charter operator and traveler set the itinerary, identify the aircraft model, and agree upon all the costs. This scheduling of charter can take place as far in advance as months before the travel date or as late as hours before the departure time. For travelers going on vacations where they can plan ahead, a charter is typically scheduled 3-4 weeks before the travel date, but there's no set rule.
What are the choices of aircraft?
The charter industry describes the type of aircraft with three categories. Light Jet, Midsize Jet, or Heavy Jet. Very often you will see these referred to simply as Light, Midsize, or Heavy. Within these three categories you have various aircraft models such as Lear 35 or Citation II in the Light Jet category, Hawker 800 or Lear 60 in the Midsize Jet category, or Gulfstream III or Challenger 601 in the Heavy Jet category. There are many more aircraft models in each of these categories. Here is more information about these aircraft, including photos.
The Cost of Chartering
There is more to the cost of chartering a plane than the simple calculation of the time the airplane is in the air times the hourly rate. Here are two important issues to understand.
It costs the same to charter a plane whether there are two passengers or six passengers. For example, if it costs $6,000 to charter a plane to a particular destination and there are only two passengers, then the cost per person is $3,000. If there are six passengers, then the cost per person drops to $1,000. The charter operator doesn't charge less if there are only two passengers or more if there are six passengers. If there are only two people traveling on a chartered plane the cost per person is an expensive proposition. If there are four or more passengers, the cost per person becomes very attractive.
It is standard in the industry to bill the plane at an average rate of two hours a day minimum, whether the plane is flying or not. This means that if you charter a plane, and want it to stay at your destination and then fly you back, you will pay an average of two hours a day for the plane, whether it's flying or not. If you are taking a long vacation, it's cheaper in many cases to send the plane back to base empty, rather than having it wait for you. This is called the "empty leg" (sometimes referred to as a "dead head.") When you are ready to return home, you will again have to pay for the empty plane to pick you up. These dreaded "empty legs" basically double the cost of chartering a plane. For travelers wanting to stay several days at a destination, the average minimum hours calculation or "empty leg" costs will always come into play. The best scenario in terms of cost would be to fill the empty leg with revenue generating passengers, to offset the empty leg cost.
The good news is that, if several people are traveling together, and/or if the empty leg cost can be recovered, chartering a private plane suddenly becomes very attractive. This is the service that Flight Maker is offering.
