Choosing an Aircraft Management Company? What to Know

It all begins with an idea or a dream: An individual or an organization begins the process of selecting an aircraft and finding a suitable partner for operations.

The client’s team is challenged to select an aircraft operator, which is the most crucial step in aircraft ownership. Managing an aircraft is mainly about building a functional partnership between the client and operator. Without trust, this partnership can never function well.

Enthusiasm for a new jet during the purchasing process is often accompanied by positive emotions from the client. This good feeling is essential; however, any future operator also needs to adopt the role of the “bad guy”, keeping the client informed about post-delivery realities so that no hidden surprises are experienced.

Once the emotions diminish and the client becomes accustomed to having their dream aircraft in the air, reality is usually associated with high costs, a regulatory framework (and all its restrictions), AOG situations, poor weather, and so on.

Good aircraft managers and experienced operators are ready for these situations and guide the client through the entire ownership period, very often managing everyday situations along with all the aircraft’s technical management.

Aircraft Management Proposal

The Business Aviation industry is continually changing. You may see new players come and go - the Business Aviation sky has a ceiling when it comes down to proper operations.

The client sets out the requirements for their private jet, and the factors for consideration include the size of the jet, its area of operation, country of aircraft registration and home base, aircraft management program, whether to charter the aircraft, and more.

A low-priced management proposal is not always the most economical. Usually, the client should look at several proposals presented by various operators to make the right choice. 

If operational costs appear significantly lower with one of the operators, clients should be cautious.

The aircraft management company should inform the client about all aspects of expenses related to aircraft management and operation (aircraft management fee, estimated cost of aircraft maintenance, flight planning, CAMO, flight crew management (including salaries), charter fee/commission, hangarage, insurance, and more).

Experienced operators usually detail the calculations (such as regular uniform exchange for pilots, new aircraft dishes, etc). Clients should request a detailed explanation of each item in the proposal. We also recommend obtaining several offers from operators in a region/continent). It is a long-term reality that aircraft ownership is not cheap and never will be.

Comprehensive Aircraft Management Packages

In an ideal world, the aircraft management company delivers all the related services associated with aircraft operation. The client should seek out the partner who offers a comprehensive solution for their aircraft.

Management must ultimately be flawless, providing substantial cost optimization rather than depending on subcontractors.

Types of Operations

The aircraft management program determines the day-to-day operations. If opting for non-commercial operation or PART-NCC, your aircraft is solely managed in private mode. The benefits of this program in the past generally had more regulatory freedom, but today regulations have become stricter even for purely private flying to enhance safety in operations. Crew duty limitations may persist as the driven argument for private operations.

The most common type of management is for commercial operations, allowing the owner to charter the aircraft when it is not otherwise flying. Clients may decrease their cost per flight hour when their aircraft’s free capacity is offered on the charter market.

If this option is selected, clients should understand that their jet becomes a part of an efficient airline with all its regulations and limitations. The reason is obvious: to protect those chartering the client’s jet and ensure maximum safety and quality of operations.

Aircraft Registration

Each country’s aircraft registry brings different benefits. The country of registration may drive the decision for the aircraft’s ultimate registration but also the type of operations.

Safety

Importantly, clients should consider safety management when seeking to place their aircraft with a management company. The lives of clients are entrusted to the operator every day, and it is therefore paramount to conduct inspections and require information about the respective management company’s applied safety management systems (SMS).

Clients find it challenging to evaluate the quality of an operator's SMS, which is why ABS Jets recommends observing whether an operator holds an IS-BAO (International Standard for Business Aircraft Operations) certificate, or other similar evidence that it understands the importance of safety. IS-BAO is an excellent indicator of well-functioning safety standards.

More information from www.absjets.com